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2021-08-31-accounts

THE INDEPENDENT EDUCATIONAL

ASSOCIATION LIMITED

Company Number 01222329 Charity Number 270156

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

THE INDEPENDENT EDUCATIONAL ASSOCIATION LIMITED

CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended 31 August 2021

CONTENTS

CONTENTS
Page
Company Information 1
Report of the Trustees 2
Report of the Auditor 10
Consolidated Statement of Financial Activities 13
Consolidated Balance Sheet 14
Company Balance Sheet 15
Consolidated Statement of Cash Flow 16
Notes to the Consolidated Statement of Cash Flow 17
Notes to the Consolidated Financial Statements 18 - 41

The Independent Educational Association Limited

Company Information For the year ended 31 August 2021

REFERENCE AND ADMINISTRATIVE INFORMATION

The Independent Educational Association Limited ("the Association") was incorporated on the 8 August 1975 as a company limited by guarantee and not having a share capital, with registration number 1222329. On 8 December 1975 it was also registered as a charity under the Charities Act 1960 with the charity number 270156. principal address and registered office is at Earsby Street, London, W14 8SH. The Association has prepared consolidated financial statements to include the activities of St James Enterprises Limited, incorporated on 16 January 2018, as a subsidiary of the Association and The Most Honourable and Loyal Society of Ancient Britons , and its trading subsidiary St common trustees.

Trustees and Directors

The trustees of the Association, known as Governors, are also the directors of the company for the purposes of company law, the Board being a self-appointing body. During the year and up to the date of approval of the financial statements they were:

Aatif Hassan Annabel Lubikowski Jeremy Sinclair (Chairman) John Story Hugh Venables Jerome Webb

Key Executives and Professional Advisers

The Head teachers

Mr D Brazier Church Road, Ashford, TW15 3DZ Mrs S Labram , W14 8SH Mr K Spencer St James Preparatory School, Earsby Street, London W14 8SH

Director of St James Education: Mrs L Hyde

Chief Operating Officer & Company Secretary: Mr W Wyatt

Auditor Solicitors Haysmacintyre LLP Veale Wasbrough Vizards 10 Queen St. Place Orchard Court LONDON Orchard Lane EC4R 1AG Bristol BS1 5WS

Principal Bankers Investment Advisers Lloyds Bank plc J. M. Finn & Co. 67 Old Brompton Road 4 Coleman Street London SW7 3JX London EC2R 5TA

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2021

The Board of Trustees present their annual report for the year ended 31 August 2021.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The objects for which the Association is established (as set out in its Articles of Association) are to promote the advancement of education of children and young persons and in connection therewith to establish and conduct in any part of the world a school or schools to give instruction in all branches of education including the preparation of pupils to sit for public examinations whether academic, professional or otherwise.

Aims and Intended Impact

Within these Objects, the Association started the St James Independent Schools in January 1975 with the aim of providing a first-class independent education, through strong academic tuition, awareness of spiritual values and developing wider sporting, artistic and social skills in all pupils. This is intended to provide an environment where each pupil can begin to realise his or her own potential, thus helping to build self-confidence and self-esteem in preparation for a happy and fulfilling life contributing to the good of the wider community.

Objectives for the Year

The focus has been on the continued achievement and enhancement of academic standards throughout the schools while endeavouring to meet the individual requirements of the minority with special educational needs. Striking the right balance between these two objectives should ensure that all pupils have the opportunity of working to achieve their full potential. We continue to improve the facilities available whilst keeping clear budgetary controls.

Strategies

These include an onic syllabuses, an exercise in which the staff are fully involved. Increased attention is also being given to staff training and development. We -academic activities by promoting excellence in sports and open-air pursuits as well as developing social skills.

Principal Activities of the Year

The Association provides education through the St James Schools: from the ages of 4 to 18 at Earsby Street for junior boys and girls and senior girls, and at Ashford for senior boys. The Association acts in an advisory capacity for a number of schools with common ethics and practices worldwide. The Association finished the year with 840 (2020: 849) pupils. From 1 September 2019 the Association expanded the provision of education through the new Nursery facilities at Earsby Street. At the year end there were 22 pupils in the nursery department (2020:17),

Grant-making Policy

This year, the value of scholarships, grants and prizes made to pupils out of restricted funds was £119,231 (2020: £153,965). In addition, a further £1,138,143 (2020:£940,044) of bursaries and scholarships were funded from unrestricted reserves. All bursary awards are made on the basis of financial need, and all are means tested. Further would be at risk without such support.

BUSINESS REVIEW

The Trustees present the consolidated financial and and those of St James Enterprises Limited, incorporated on 16 January 2018, as a trading subsidiary of the Association which began trading in September 2019.

This has been another rewarding year for the charities and the group. The Trustees, the majority of whom are strong. The reputation of each of the St James schools continues to thrive due to the excellent all-round education and pastoral care offered and because of the hard work and dedication of all staff.

During the year we have still maintained good academic achievements. Despite the decrease in average pupil numbers reported above, the nursery expanded and St James is seeking to consolidate and grow its overall pupil numbers in future years. The building of a new sports hall at the Senior Boys School which opened in July 2021 should assist future recruitment of pupils and, as noted above, we launched a new nursery at the Olympia site in September 2019 to act as a feeder for the prep school as well as providing an additional income stream to improve sition.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2021

BUSINESS REVIEW (Continued)

Together with competitive fee rates and sound financial management, we aim to produce an operating surplus year on year.

This was another year affected by COVID. School was closed again for most of the spring term. However, the standard of online learning was excellent and all three schools received very positive feedback from parents. The school has frozen fees for this year and we gave parents a rebate of 5% of the spring term fees which was based on the savings we were able to make.

An ongoing review of debt management procedures continues to produce a significantly improved collection rate of current debt and a reduction in overdue balances. Subsidiary company results contributed a surplus of £16,583 to the overall results compared with £2,318 in the previous year.

In October 2020 the IEAL Pension Scheme transferred to Citrus Pension Plan, a non-for-profit master trust. The aim was to improve the professional management of the scheme and reduce management and administration costs. Contributions necessary to make up for the deficit in the Scheme were £400,000 for the year to 31 August 2021 and are expected to remain at that level to August 2028. The last published full triennial actuarial valuation for the IEAL Pension Scheme was on 1 September 2017. However, a valuation has been carried out as at March 2021 and the report will be available in June 2022. It is anticipated that the deficit contributions will remain at the agreed rates.

The group will continue to seek to meet the AGBIS best practice target by generating a 10% cash surplus. This is essential for long term cash flow stability and building reserves to a level that ensures sustainable development of the schools.

Developments

Construction of the new sports hall at Ashford commenced and was completed in July 2021.

The trustees are conscious of their responsibility to ensure that the Charity considers its duty to operate for the public benefit. The Association has provided Bursary and Scholarship funding equivalent to 7.5% of fee income (2020: 6.7%). Except for bursary specific funds received during the year from benefactors, bursaries have been funded from the General Fund. The Development Office is actively seeking additional sources of Bursary funding in order to minimise the on-going impact on the General Fund.

Supporting Activities

The Association provides bursaries and scholarships to pupils of families in need of financial assistance. In 2021 support of £1,257,374 was given (2020: £1,094,009) to pupils, these include externally funded bursaries and grants.

The fund-raising and development office works for all three schools. It co-ordinates the activities of:

Whilst future major developments will require substantial fund-raising initiatives, the latest forecasts indicate that the Association will generate operating surpluses sufficient to fund such developments partly from reserves.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2021

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Operational Performance of the Schools

The Senior Girls attained excellent exam results. 100% (2020: 100%) A level passes with 98% (2020: 100%) at A to C the GCSE pass rate was 100% (2020: 100%) with 100% at A to C and 99.7% (2020: 100%) 9 to 4 grades.

The Senior Boys achieved 100% (2020: 100%) A level passes with 95% (2020: 98%) at A* to C; the GCSE pass rate was 100% (2020: 100%) with 99% (2020: 98%) at 9 to 4 grades.

Fundraising Performance

The fund-raising department raised £41,553 (2020: £16,951) from regular activities during the year. The Development office is coordinating the activities of The Friends of St James and the Alumni in addition to fundraising for Buildings and Bursary Funds. With continued building and facility improvements planned for both the Earsby Street and Ashford sites, fund-raising efforts will be focused on raising substantial sums

The Association received no complaints about its fundraising activities in the year.

FINANCIAL REVIEW AND RESULTS FOR YEAR

£2,883,502 (2020:restated £1,538,950). Net income before gains were £1,380,189 (2020: restated £1,861,153). Net income includes the FRS102 actuarial gain in respect of the IEAL Pension Scheme of £1,077,000 (2020:£402,600 deficit) and investment gains of £404,647 (2020: £64,063). The Pension Scheme liability is a long-term liability and as such the management are satisfied that they can meet current funding requirements arising in the Scheme.

There was a 1% year on year reduction in total gross fee income before bursaries and charging for activities and coaches £16,796,100 (2020: £16,928, 208 which was the result of a reduced pupil roll and fee remissions of 5% in the Summer Term.

The Association had net current assets at 31 August 2021 of £201,295 (2020: £(841,708)). This includes fee deposit liabilities of £2,807,881 (2020: £2,773,370). These liabilities are disclosed as due within one year as pupils may leave at any time, but with a reasonable stable pupil roll currently, the probability of the liability becoming repayable in the short term is highly unlikely. .

At the year end fee debtors were £62,478 (2020: £535,370) This reflects the proactive approach to fee collection taken by management during the financial year and into 2022. The majority of parents paid on time and for those parents who are struggling, the schools have engaged fully and assisted them by agreeing payment plans, payment holidays or by providing mean-tested hardship funding.

Key Performance Indicators

We have to be aware of staff-pupil ratios and the proportion of fee income spent on salaries and salary-related expenses such as national insurance, pensions funding and training costs.

----- Start of picture text -----
2021 2020
restated
Employment costs compared to fee income 62% 55%
Pupils (Average number throughout the year) 862 883
Teaching staff (FTE) 107 101
Staff-Pupil ratio 1:8.1 1:8.7
----- End of picture text -----

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2021

PUPIL RETENTION

Recognising the continuing pressures on parents, the Governors announced that there was to be no fee increase in the financial year 20-21.This, combined with a generous bursary assistance, has stabilised pupil numbers which are forecast to be at around 860 in financial year 22-23.

GOING CONCERN

The Trustees have sought to minimise the ongoing financial impact of Covid-19 on the charity by prioritising key areas of risk, bad debt, cash flow and pupil retention. This, combined with the continued focus on reducing the cost base of each school, and the expected continued positive cash generation from operating activities in 2021foreseeable future and therefore continue as a going concern. In summary, the revised financial budget and forecast for 2021/22 and 2022/23, is cautious and prudent. We openly visited challenging scenarios and have action plans in place should the need arise. We are pleased that it shows that we will continue to return a cash surplus each year over the next two years. We will be able to operate without selling any part of our extensive property portfolio and will be able to meet all our financial liabilities showing that we remain a strong going concern.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2021

FUTURE PLANS

We are pleased with the quality of the young men and women coming out of our schools to play their part in society. We are delighted that so many later wish to educate their own children at a St James school and quite a number have come back to teach in the schools. We wish to grow so that more can share in what we have to offer.

.

RISK MANAGEMENT

The Board of Governors is responsible for identifying the key risks faced by the School and for ensuring these risks are managed. Each term the Board of Governors identify and assess risks and implement controls to mitigate against these. The major risks include; impact of political regime change on independent schools. This is largely out of the are constant changes in legislation which affect schools. These are managed through routine monitoring of the and pastoral reputation is high and fees remain competitive. SMT continue to review the situation.

Risks are managed and monitored by the risk register which are grouped into the following categories:

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure and Governing Document

The Association, as well as being a registered charity, is a company limited by guarantee. In the event of liquidation, the guarantors who are the members and governors of the company will be liable to contribute £1 each as set out in the governing document of the Association which is its Articles of Association adopted by the members of the Association on 27 November 2014. This guarantee totals £10.

Governing Bodies

The structure of the Charity consists of a governing body for the St James Schools. The Trustees are assisted by various committees and the Heads and the Chief Operations Officer.

Trustees

Details of Trustees are given on page 1. The Trustees are also the Company Directors. The founder of the Association directed the Trustees to raise funds for launching schools, endowing them and otherwise providing for them. Individual schools should have their own managers appointed by the Trustees who are free to manage the schools subject only to their conforming to the aims of the Association and to any financial control necessary to preserve its funds. The Trustees delegate the administration and co-ordination of financial and operational matters of the Schools to the Chief Operating Officer.

Recruitment and Training of Governors

New Governors are invited to serve by the existing Board of Governors. New Governors are inducted into the workings of the Charity and its schools, including any Board Policy and Procedures. All Governors receive New Governors Training provided by AGBIS and regular Safeguarding training.

Organisational Management

The Governors, as the trustees of the Charity, are legally responsible for the overall management and control of the St James Schools and associated activities and meet at least once a term including Overall financial and operational control of the schools is delegated to a number of committees which, under the general supervision of the Governors, exercise such powers and perform such duties in relation to the affairs of the Association as are vested in or given to them by the Governors. The principal committees are the Finance and Estates Committee, the individual school committees, the Governance Committee, the Safeguarding Committee and the Health & Safety Committee which all meet each term.

Mrs Hyde became the first Director of Education across all the St James Schools in September 2014.

The day-to-day running of the schools is delegated to the Chief Operating Officer and the respective Head Teachers (supported by their Senior Management Teams).

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the Association remains sensitive to the broader issues of pay and employment conditions elsewhere.

personnel and staff costs are the largest single element of our charitable expenditure.

Relationships

The Association actively supports the attainment of the highest standards in the Independent Schools sector, partly through senior staff participating in the inspection of schools, and through promoting links and networking with other schools by attendance at Seminars and events. We also endeavour to widen public access to the schooling we can provide, the facilities and to awaken in our pupils an awareness of the social context of the all-round education they receive.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2021 (continued)

Reserves Policy

Our policy is to accumulate sufficient reserves to acquire and maintain high quality premises for all our schools with scope for further development. Major property moves and developments have necessarily depleted our reserves. Our policy is to rebuild them by further improving our cost controls and generating the operating surpluses outlined above. At 31 August 2021 the Association had consolidated reserves of £25,629,497 (2020: £22,745,995, as restated) of which £2,310,798 represents restricted funds (2020: £1,894,733) and £23,318,699, represents unrestricted funds (2020:£20,851,262, as restated). There are no Free Reserves which are comprised of undesignated and unrestricted funds net of fixed Assets (2020 £Nil). As shown in Note 11 the ISPS Pension deficit reserve and the IEAL Pension reserve have been shown separately within unrestricted funds. There are no other designated funds as at 31 August 2021. Accounting for the Defined Benefit Pension liability in accordance with FRS102 has resulted in a negative Pension Reserve of £2,372,000 (2020: £3,772,500).

As a result of the Trustees having taken advice from the scheme actuary in respect of the funding of the negative Pension Reserve shown in the Balance Sheet the annual deficit contribution payment for the year ended 31 August 2021 was £400,000 (2020: £400,000). The ISPS pension reserve accounted for under FRS102 has resulted in a negative reserve of £208,000 (2020: £229,666). Under the current funding schedule, the annual deficit contribution payment for 2021 was agreed at approximately £22k, thereafter rising at 3% per annum until 2030. The amounts of restrictive and unrestrictive funds that can only be realised by the disposing of tangible fixed assets or programme related investments are shown in Note 12 Analysis of Net Assets between Funds.

Investment Powers & Policy

As its objective the Board aims to maximise the total investment return. The Association is not restricted as to its Investment Advisors to invest in medium risk securities having regard to the differing requirements of the respective restricted or designated fund involved. The Board considers the performance of the investments in the year to be satisfactory.

PUBLIC BENEFIT

l consideration to the

guidance on advancing education. The Governors believe that the principal public benefit provided is in setting up and operating schools with the object of producing well rounded pupils with a comprehensive education aimed at developing the young men and women in our care physically, mentally, and spiritually, leaving them capable of entering fully and usefully into wider society. As a relatively recent foundation, the Association has not yet accumulated reserves sufficient to make significant numbers of free places available, as much of the funds given to it have been required to obtain and equip suitable buildings. During 2021 we continued to utilise the General Fund to support bursaries.

Bursary and other funding, including this year a special hardship fund (for people directly impacted due to Covid19) assists pupils of parents who find themselves in difficulty meeting fee payments during their time at school. Numbers assisted are 82 (2020: 81) at a total cost of £1,257,374 (2020: £1,094,009). Reasons for awards have included insufficient funds due to divorce, sudden loss of income, ill health, parent fatalities, redundancies, Covid-19. All bursaries are means tested.

The Association has assisted in the foundation and development of a number of overseas schools, forming a worldwide family of schools, based on the same essential educational approach, offering guidance and teaching placements.

The senior schools have an active community service programme in which the pupils engage with the local community including state schools. At the very heart of the St James approach is the spirit of unity which naturally encourages the pupils to have regard to the needs of others, which necessarily includes those in less fortunate circumstances.

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The Independent Educational Association Limited

Annual Report of the Trustees For the year ended 31 August 2021 (continued)

In 2011 the Association launched Sanskrit @ St James, an initiative supported by the Indian High Commissioner to promote, sustain and develop the teaching of Sanskrit in schools throughout the world. A separate restricted fund was set up with the benefit of a legacy received during 2011 and we have continued to receive support from subscribers throughout the year to fund specific Sanskrit activities.

RESPONSIBILITIES

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

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

select suitable accounting policies and then apply them consistently;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITOR

Crowe UK LLP was re- appointed as auditor at the meeting to approve the prior year accounts. Although Crowe UK LLP expressed its willingness to continue as auditor for the next financial year, the Governors have appointed Haysmacintyre LLP to audit the financial statements for the year ended 31 August 2021.

This report, including the Strategic report, was approved by the Board of Governors of the Independent Educational Association Limited on 30 June 2022 and signed on its behalf by,

Jeremy Sinclair Chairman

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The Independent Educational Association Limited

to the members of Independent Educational Association Limited

Opinion

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

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or ng concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

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The Independent Educational Association Limited

to the members of Independent Educational Association Limited (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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report of the Trustees (which

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:

Responsibilities of trustees for the financial statements

9, the trustees (who are also the

directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

le, matters related to going concern and

using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

responsibilities for the audit of the financial statements

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

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

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the regulatory requirements related to independent school regulations, safeguarding regulations, health and safety requirements, GDPR, employment law and charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, Statement of Recommended Practice (SORP 2019) and payroll taxes.

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The Independent Educational Association Limited

to the members of Independent Educational Association Limited (continued)

(including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in making accounting estimates and judgements. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial www.frc.org.uk/auditorsresponsibilities. This description forms part of our

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Tracey Young (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London EC4R 1AG Date: 30 June 2022

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The Independent Educational Association Limited Consolidated Statement of Financial Activities (Including Income and Expenditure Account) For the year ended 31 August 2021

Note
Income from:
Charitable activities
School fees
2
Other income
3
Other trading activities
Trading income
3
Other activities
3
Investments
Investment income
3
Voluntary sources
Donations and legacies
3
Other income
Sundry income
3
Total income
Expenditure on:
Raising funds
Fundraising costs
4
Investment management
4
Trading & lettings costs
4
Charitable activities
Schools and Grant making
4
Total expenditure
Net income before transfers and
gains
Gains on investments
Transfers between funds
11
Net income before other
recognised gains and losses
Actuarial gain/(loss)
IEAL
13
Actuarial gain
ISPS
13
Net movement in funds
Fund balances brought forward
As previously stated
Prior year adjustment
18
As restated
Fund balances carried
forward
12		 Unrestricted
Funds
£
15,483,182
403,854
45,522
17,799
416
23,754
36,092
16,010,619
89,979
20,188
11,045
121,212
14,520,636
14,641,848
1,368,771
-
-
1,368,771
1,077,000
21,666
2,467,437
20,548,262
303,000
20,851,262
23,318,699		 Restricted
Funds
£
-
-
-
-
29,607
76,200
24,842
130,649
-
-
-
-
119,231
119,231
11,418
404,647
-
416,065
-
-
416,065
1,894,733
-
1,894,733
2,310,798		 Total Funds
2021
£
15,483,182
403,854
45,522
17,799
30,023
99,954
60,934
16,141,268
89,979
20,188
11,045
121,212
14,639,867
14,761,079
1,380,189
404,647
-
1,784,836
1,077,000
21,666
2,883,502
22,442,995
303,000
22,745,995
25,629,497		 Total Funds
2020
£
Restated
15,882,939
627,512
12,335
14,161
43,699
42,923
3,710
16,627,279
73,806
18,401
95,934
188,141
14,577,985
14,766,126
1,861,153
64,063
-
1,925,216
(402,600)
16,334
1,538,590
21,207,045
-
21,207,045
22,745,995

All amounts derive from continuing activities

All gains or losses recognised in the year are included in the Statement of Financial Activities The notes on pages 18 to 41 form part of these financial statements

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The Independent Educational Association Limited

Consolidated Balance Sheet as at 31 August 2021

Note
Fixed Assets
Tangible Assets
Freehold property
6
Motor vehicles
6
Laboratories and equipment
6
Investments
7
Current Assets
Stocks
8
Debtors
9
Cash at bank and in hand
Creditors: Amounts falling due
within one year
10(a)
Net Current Assets/(Liabilities)
Total Assets less Current
Liabilities
Long-term liabilities
Creditors payable after one year
ISPS Pension deficit liability
IEAL Defined Benefit Pension
Liability
10(b)
13
13
Net Assets
The Funds of the Group:
Permanent Endowment
11
Restricted funds
11
Unrestricted funds
General reserve
11
ISPS Pension deficit reserve
11
IEAL Pension reserve
11
Total unrestricted funds
Total group funds
12		 2021
£
27,121,701
17,580
1,178,146
28,317,427
2,184,928
1,247
469,097
4,745,357
5,215,701
(5,014,406)
25,898,699
(208,000)
(2,372,000)		 2021
£
30,502,355
201,295
30,703,650
(2,494,153)
(208,000)
(2,372,000)
25,629,497
400
2,310,398
23,318,699
25,629,497		 2020
£
Restated
25,030,175
23,440
1,325,884
26,379,499
1,768,863
1,247
1,043,499
2,906,652
3,951,398
(4,793,106)
24,853,428
(229,666)
(3,772,500)		 2020
£
Restated
28,148,362
(841,708)
27,306,654
(558,493)
(229,666)
(3,772,500)
22,748,995
400
1,894,333
20,851,262
22,745,995

Approved by the Board and signed on its behalf on 30 June 2022

Jeremy Sinclair Chairman

Registered Company Number: 01222329 The notes on pages 18 to 41 form part of these financial statements

- 14 -

The Independent Educational Association Limited

Company Balance Sheet as at 31 August 2021

Note
Fixed Assets
Tangible Assets
Freehold property
6
Motor vehicles
6
Laboratories and equipment
6
Investments
7
Current Assets
Stocks
8
Debtors
9
Cash at bank and in hand
Creditors: Amounts falling due
within one year
10(a)
Net Current Assets /(Liabilities)
Total Assets less Current
Liabilities
Long-term liabilities
Creditors payable after one year
ISPS Pension deficit liability
IEAL Defined Benefit Pension
liability
10(b)
13
13
Net Assets
The Funds of the Charity:
Restricted funds
11
Unrestricted funds
General reserve
11
ISPS Pension deficit reserve
11
IEAL Pension reserve
11
Total unrestricted funds
Total charity funds
12		 2021
£
28,161,579
17,580
1,173,570
29,352,729
2,184,928
-
514,603
4,530,110
5,044,713
(5,026,515)
26,751,304
(208,000)
(2,372,000)		 2021
£
31,537,657
18,198
31,555,855
(2,494,153)
(208,000)
(2,372,000)
26,481,702
2,310,398
24,171,304
26,481,702		 2020
£
Restated
26,070,053
23,440
1,321,308
27,414,801
1,768,863
-
1,111,524
2,704,119
3,815,643
(4,823,864)
25,722,617
(229,666)
(3,772,500)		 2020
£
Restated
29,183,664
(1,008,221)
28,175,443
(558,493)
(229,666)
(3,772,500)
23,614,784
1,894,333
21,720,451
23,614,784

The surplus for the financial year dealt with in the financial statements of the parent company was £2,866,918 (2020: surplus £1,228,084).

Approved by the Board and signed on its behalf on 30 June 2022

Jeremy Sinclair Chairman

Registered Company Number: 01222329

The notes on pages 18 to 41 form part of these financial statements

- 15 -

The Independent Educational Association Limited

Consolidated Statement of Cash Flow For the year ended 31 August 2021

Cash flows from Operating
Activities (Note 1)
Net cash provided by
operating activities
Cash flows from investing
activities:
Interest received
Dividends received
Payments to acquire fixed
assets
Payments to acquire
investments
Receipts from sales of
investments
Net cash used in investing
activities
Cash flows from financing
activities:
Loan received
Loan interest paid
Loans repaid
Net cash provided by /
(used in) financing activities
Change in cash and cash
equivalents in the reporting
period
Cash and cash equivalents at
the beginning of the period
Cash and cash equivalents
at the end of the reporting
period (Note 2)		 2021
£
416
29,607
(2,563,654)
(54,449)
43,031
2,376,000
(30,542)
(244,450)		 2021
£
2,282,746
(2,545,049)
2,101,008
1,838,705
2,906,652
4,745,357		 2020
2020
£
£
Restated
2,189,055
9,304
34,395
(1,195,123)
(166,550)
153,965
(1,164,009)
-
(22,944)
(255,568)
(278,512)
746,534
2,160,118
2,906,652		 2020
2020
£
£
Restated
2,189,055
9,304
34,395
(1,195,123)
(166,550)
153,965
(1,164,009)
-
(22,944)
(255,568)
(278,512)
746,534
2,160,118
2,906,652
746,534
2,160,118
2,906,652

- 16 -

The Independent Educational Association Limited

Notes to the Consolidated Statement of Cash Flow For the year ended 31 August 2021

1 Reconciliation of net income to net
cash flow from operating activities
Net income for the reporting period
Adjustments for:
Depreciation charges
Pension contributions less current service and interest
costs and other charges/(credits)
Decrease in stocks
Decrease/(increase) in debtors
Increase in creditors
Interest received
Dividends received
Loan interest paid
Net cash provided by operating activities
2 Analysis of Cash and Cash Equivalents
Cash at bank and in hand
3 Analysis of changes in net debt
Cash and cash equivalents
Borrowings:
Debts due within one year
Debts due after one year		 At 1
September
2020
£
2,603,652
(238,920)
(558,493)
1,806,239		 2021
£
1,380,189
625,727
(323,500)
-
574,402
25,409
(416)
(29,607)
30,542
2,282,746
2021
£
4,745,357
Cashflows
£
2,141,705
(195,898)
(1,935,660)
10,147		 2020
£
Restated
1,861,153
816,884
(303,000)
164
(384,200)
218,809
(9,304)
(34,395)
22,944
2,189,055
2020
£
2,603,652
At 31
August
2021
£
4,745,357
(434,818)
(2,494,153)
1,816,386

- 17 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021

1. Accounting Policies

Company information

The Independent Educational Association Limited ("the Association") was incorporated on the 8 August 1975 as a company limited by guarantee and not having a share capital, with registration number 1222329 and is considered a public benefit entity. On 8 December 1975 it was also registered as a charity under the Charities Act 1960 with 8SH. The Association has prepared consolidated financial statements to include the activities of The Most are being managed on a unified basis with common trustees. The consolidated financial statements also include the

Basis of preparation and assessment of going concern

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019 (Charities SORP (FRS102)) Second Edition.

The functional currency of the Association is considered to be GBP because that is the currency of the primary economic environment in which the Association operates.

The financial statements are drawn up on the historical cost basis of accounting, as modified by the inclusion of fixed asset investments at market value.

The charity has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement with the consolidated financial statements.

Having reviewed the funding facilities available to the Association together with the expected ongoing demand for Association has adequate resources to continue its activities for the foreseeable future and consider that there were going concern basis in preparing the financial statements as outlined in the Statement of Responsibilities on page 9.

Basis of Consolidation

The financial statements present the consolidated statement of financial activities (SOFA), the consolidated statement of cash flow and the consolidated and Charity balance sheets comprising the consolidation of the , and St James Enterprises Limited. No separate SOFA has been presented for the School alone, as permitted by s408 of the Companies Act 2006. The results of the Charity are disclosed on the Company Balance sheet.

Critical accounting judgements and key sources of estimation uncertainty

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

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

- 18 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021

1. Accounting Policies (continued)

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year other than those noted below:

The pension scheme liabilities shown on the balance sheet are based on the annual FRS102 actuarial update at 31 August 2021 in which the actuary used a variety of assumptions concerning the future pension scheme assets and liabilities. 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 13, will impact the carrying amount of the pension liability. An actuarial valuation has been carried out as at 31 March 2021 and a roll forward approach has been used by the actuary to value the pensions liability at 31 August 2021.

The following accounting policies have been applied consistently in dealing with items which are considered

.

Fee income

Fees receivable less any allowances, scholarships, bursaries and other grants made by the School against those fees, but including contributions received from restricted funds, are accounted for in the period in which the service is provided.

Other income

Income is accounted for in the year to which it relates. Rental income for operating leases on non-investment property is recognised as income on a straight-line basis over the lease term.

Investment income

Investment income from dividends, bank bala basis.

Donations, grants and other income

Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified and the accounted for as unrestricted and is credited to the General Reserve. Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fund and incoming endowments are accounted for as permanent trust capital or expendable trust capital, according to whether the donor intends retention is to be permanent or not.

Grant income in respect of the Coronavirus Job Retention Scheme is recognised in the same period as the related employment costs are incurred

Legacy income

Pecuniary legacies are recognised when there is entitlement, which is deemed to be when probate has been granted, the legacy can be measured reliably, and there is probability of receipt. For residual legacies, entitlement is deemed to be the earlier of settled estate accounts and notification of a pending payment or actual payment being received.

Expenditure

Expenditure is accrued as soon as a liability is considered probable. Overhead and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year by reference to site or the ratio of pupils in the individual schools. The irrecoverable element of VAT is included with the item of expense to which it relates.

Grants awarded are expensed as soon as they become legal or operational commitments. Governance costs comprise the costs of running the Charity, including strategic planning for its future development, statutory requirements.

Intra-group sales and charges between the School and its subsidiaries are excluded from trading income and expenditure.

- 19 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021

1. Accounting Policies (continued)

Tangible Fixed Assets

Items of equipment and furniture and fittings are capitalised if over £2,500 in cost and carried in the balance sheet at historic cost. Other expenditure on equipment incurred in the normal day-to-day running of the School is charged to the Statement of Financial Activities as incurred.

Depreciation

Depreciation is provided to write off the cost of all tangible fixed assets, other than freehold land, less estimated residual value based on current market prices, in equal annual instalments over their expected useful lives as follows:

Freehold buildings and major improvements 1% - 2% on cost Computers 33 1/3% on cost Plant 10% on cost IT infrastructure 20% on cost Motor vehicles 25% on written down value Schools other equipment and furniture and fittings 20% on written down value Laboratories 10% on written down value

Investments

The Association's listed investments are valued at market value at the balance sheet date. Gains and losses arising on the sale or revaluation of investments are credited or charged to the Statement of Financial Activities and are lying assets.

Stock

Stock represents goods for resale and is valued at the lower of the cost and net realisable value.

Fund Accounting

The charitable trust funds of the Association and its subsidiaries are accounted for as unrestricted or restricted income, or as endowment capital, in accordance with the terms of trust imposed by the donors or any appeal to which they may have responded. Endowment funds are further sub-divided into permanent and expendable.

- 20 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

1. Accounting Policies (continued)

Restricted Funds

Restricted funds are funds which have been raised for, and their use restricted to, a specific purpose, or donations or legacies subject to donor-imposed conditions against which relevant expenditure is charged. There is no capital retention obligation or power but only a trust law restriction.

Unrestricted Funds

Unrestricted funds consist of those funds which the Association may use in furtherance of its charitable objectives at the discretion of the Trustees. Where the Trustees decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by the transfer to the appropriate designated fund.

Permanent endowment

Permanent endowment arises where a donor intends the gift to be retained permanently for use by the Association.

Taxation

The Association is a registered charity and, therefore, is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

Pension Costs

Retirement benefits to employees of the Association are provided through a number of different schemes, two defined benefit schemes and a number of defined contribution schemes.

IEAL Pension Scheme

This is an occupational defined benefit scheme where the pension liabilities and assets are recorded in line with FRS 102 with a valuation undertaken by an independent actuary. The defined benefit pension scheme current service costs are charged to the Statement of Financial Activities within staff costs. The net interest on the defined net liability and the administration costs of the scheme are charged within support costs. Remeasurement effects, comprising actuarial gains and losses and the return on plan assets greater than the discount rate are recognised within other gains and losses.

This scheme is a multiunderlying assets and liabilities of the ISPS scheme on a consistent and reasonable basis and therefore, as required contributions, which are in accordance with the recommendations of the actuary, are charged in the period in which the salaries to which they relate are payable. Where a deficit funding arrangement has been agreed by the Trustees of the Scheme, FRS102 requires a liability to be established based on the net present value of those funding obligations at the balance sheet date.

Defined contribution schemes

Further details of the pension schemes can be found in note 13.

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value, where fair value is measured by the quoted market price in an active market. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, provisions and accruals and deferred income. Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year end exchange rate.

- 21 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

2.
Charitable Activities - School Fees
School fees receivable consist of:
Gross fees
Less: Total bursaries, scholarships and allowances
Add back: Bursaries and other awards paid for by restricted funds
All amounts received were in respect of general funds
3.
Other Income
School fees receivable consist of:
Charitable activities
other income
Entrance and registration fees
Activities and coach income
Letting income of non-investment properties
Income from Government Grants
All amounts received were in respect of general funds
Other trading activities
Trading income
St James Enterprises Limited
Other activities
Fundraising income
All amounts received were in respect of general funds
Investment income
Dividend income
Bank deposit and short term deposit interest
Amounts received in respect of restricted funds were £29,607 (2020:
£34,395) and general funds £416 (2020: £9,304).
Donations & legacies
General donations
Bursary donations
Grants towards school fees
Sanskrit donations
Amounts received in respect of restricted funds were £76,200 (2020:
£2,790) and general funds £23,754 (2020: £40,133).
Other income
Sundry income
All amounts received in respect of restricted funds were £24,842 (2020:
£nil) and general funds £36,092 (2020: £3,710).		 2021
£
16,796,100
(1,396,825)
83,907
15,483,182
2021
£
69,620
212,760
72,755
48,719
403,854
45,522
17,799
63,321
29,607
416
30,023
19,930
78,224
-
1,800
99,954
60,934
60,934		 2020
£
16,928,208
(1,131,354)
86,085
15,882,939
2020
£
72,054
187,091
73,672
294,695
627,512
12,335
14,161
26,496
34,395
9,304
43,699
-
-
40,133
2,790
42,923
3,710
3,710

- 22 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

4. Analysis of expenditure

(a) Total expenditure

----- Start of picture text -----
Staff costs Other costs Depreciation Total 2021
Expenditure on raising £ £ £ £
funds:
-
Fundraising 60,345 29,634 89,979
- -
Investment management 20,188 20,188
- -
Trading and lettings costs 11,045 11,045
-
60,345 60,867 121,212
Charitable activities
-
Teaching 7,099,025 881,972 7,980,997
Welfare 472,944 397,385 - 870,329
Premises 580,705 1,088,498 - 1,669,203
Support and governance 1,335,868 2,038,512 625,727 4,000,107
9,488,542 4,406,367 625,727 14,520,636
- -
Grants, awards and prizes 119,231 119,231
9,488,542 4,525,598 625,727 14,639,867
Total expenditure 9,548,887 4,586,465 625,727 14,761,079
RESTATED Staff costs Other costs Depreciation Total 2020
Expenditure on raising £ £ £ £
funds:
- -
Fundraising 73,806 73,806
- -
Investment management 18,401 18,401
-
Trading and lettings costs 81,281 14,653 95,934
-
81,281 106,860 188,141
Charitable activities
-
Teaching 6,481,694 936,731 7,418,425
Welfare 113,895 67,504 - 181,399
Premises 394,881 1,492,461 - 1,887,342
Support and governance 1,659,636 2,460,334 816,884 4,936,854
8,650,106 4,957,030 816,884 14,424,020
-
Grants, awards and prizes 153,965 153,965
8,650,106 5,110,995 816,884 14,577,985
Total expenditure 8,731,387 5,217,855 816,884 14,766,126
----- End of picture text -----

- 23 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements

For the year ended 31 August 2021 (continued)

4. Analysis of expenditure (continued)

----- Start of picture text -----
2021 2020
£ £
From Restricted Funds:
Bursaries and other grants and awards 119,231 153,965
119,231 153,965
(c) Governance expenditure included in support costs:
2021 2020
£ £
Audit services (including VAT) current year 41,100 51,164
41,100 51,164
(d) Analysis of support and governance costs:
2021 2020
£ £
Restated
Staff costs 1,335,868 1,659,636
Depreciation 625,727 816,884
Information technology 356,566 527,980
FRS102 Pension finance and administration costs 123,495 537,786
Legal and professional 551,267 630,923
Advertising, marketing and publications 454,706 361,429
Finance and other 511,378 351,052
Governance 41,100 51,164
4,000,107 4,936,854
----- End of picture text -----

- 24 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

5. Staff costs

.
Staff costs
Total staff costs comprised:
Salaries
Social security costs
Pension fund costs		 2021
£
7,283,871
736,283
1,528,733
9,548,887		 2020
£
Restated
6,866,578
647,485
1217324
,,
8,731,387

None of the Trustees received any remuneration or other benefits from the Association or a related entity. The key management of the Association are the trustees, the three head teachers and the chief operating officer as listed on page 1.

2021
£
The aggregate employee-benefits, including employers NI, of key
management personnel
540,988
The average number of employees during the year was
182
Number of employees receiving gross salaries in the range:
£60,001 to £70,000
5
£80,001 to £90,000
1
£90,001 to £100,000
2
£100,001 to £110,000
-
£110,001 to £120,00
1		 2020
£
524,475
185
5
1
2
1
-

The number accruing retirement benefits in: Defined Benefit Schemes was 8 (2020: 5)

Redundancy or termination payments in the year amounted to £65,246 (2020: £33,270).

- 25 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

6.
Fixed Assets
Group
Cost
At 1 September 2020
Additions in year
Disposals
At 31 August 2021
Depreciation
At 1stSeptember 2020
Charge for the year
Disposals
At 31stAugust 2021
Net BookValue
At 31stAugust 2021
At 31stAugust 2020
Company
Cost
At 1stSeptember 2020
Additions in year
Disposals
At 31 August 2021
Depreciation
At 1stSeptember 2020
Charge for the year
Disposals
At 31stAugust 2021
Net Book Value
At 31stAugust 2021
At 31stAugust 2020		 Freehold
Property
£
24,203,289
2,368,153
-
26,571,442
2,807,117
276,627
-
3,083,744
23,487,698
21,396,172
Freehold
Property
£
24,208,212
2,368,153
-
26,576,365
1,772,162
276,627
-
2,048,789
24,527,576
22,436,050		 Freehold
Improve-
ments
£
4,641,952
-
-
4,641,952
1,007,949
-
-
1,007,949
3,634,003
3,634,003
Freehold
Improve-
ments
£
4,641,952
-
-
4,641,952
1,007,949
-
-		 Motor
Vehicles
£
153,087
-
-
153,087
129,647
5,860
-
135,507
17,580
23,440
Motor
Vehicles
£
153,087
-
-
153,087
129,647
5,860
-
135,507
17,580
23,440		 Other
Equipment
£
4,145,511
195,502
-
4,341,013
2,819,627
343,240
3,162,867
1,178,146
1,325,884
Other
Equipment
£
4,032,349
195,502
-
4,227,851
2,711,041
343,240
-
3,054,281
1,173,570
1,321,308		 Total
£
33,143,839
2,563,655
-
35,707,494
6,764,340
625,727
7,390,067
28,317,427
26,379,499
Total
£
33,035,600
2,563,655
-
35,599,255
5,620,799
625,727
-
1,007,949 6,246,526
3,634,003 29,352,729
3,634,003 27,414,801

All tangible fixed assets are held for use on charitable activities.

IEAL holds a number of heritage assets relating to the history of the school, which includes pictures, sculptures and other artefacts. All these items have been donated to IEAL some time ago and so information on their cost or valuation is not available and cannot be obtained at a cost commensurate with the benefit to the users of the accounts and the charity.

- 26 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

7. Investments

Group

Market value
At 1 September 2021
Additions at cost
Proceeds
Net gains
Market value
At 31 August 2021
Historical cost at 31 August 2021
Historical cost at 31 August 2020
Company
Investments (listed) held at market value (as for
Group above)
Investment in group undertaking		 Listed
UK
£
1,372,902
33,060
(43,031)
294,412
1,657,343
1,040,264
1,019,436		 Listed
Other
£
395,961
21,389
-
110,235
527,585
138,892
108,306
2021
£
2,184,928
1
2,184,929		 Total
£
1,768,863
54,449
(43,031)
404,647
2,184,928
1,179,156
1,127,742
2020
£
1,768,863
1
1,768,864

The investment in group undertaking relates to St James Enterprises Limited which was incorporated on 16 January 2018. The company is owned 100% by the Association.

8. Stocks

Sundry stocks
9.
Debtors
Fees outstanding less bad debt provision
Tax recoverable on covenants etc.
Other debtors
Amounts due from subsidiary entities
Prepayments and accrued income		 Group
2021
2020
£
£
1,247
1,247
1,247
1,247
Group
2021
2020
£
£
62,874
535,370
3,948
3,948
210,612
176,299
-
-
191,663
327,882
469,097
1,043,499		 Company
2021
2020
£
£
-
-
-
-
Company
2021
2020
£
£
62,874
530,830
3,948
3,948
182,190
175,875
73,930
73,514
191,661
327,357
514,603
1,111,524		 Company
2021
2020
£
£
-
-
-
-
Company
2021
2020
£
£
62,874
530,830
3,948
3,948
182,190
175,875
73,930
73,514
191,661
327,357
514,603
1,111,524
1,111,524

- 27 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

10(a). Creditors: Amounts falling due within one year

Trade creditors
Fees in advance
Bank loan (See Note 10(b))
Fee deposits
Other creditors
Amounts due to subsidiary entities
Employee taxes and social security
costs
Accruals and deferred income
Deferred income
Brought forward
Released
Deferred in the year
Carried forward		 Group
2021
2020
£
£
Restated
381,031
587,790
216,683
257,450
434,818
238,920
2,807,881
2,773,370
660,006
32,446
-
-
168,084
181,475
345,903
721,655
5,014,406
4,793,106
Group
Group
2021
2021
Fees in
advance
Other deferred
income
257,450
43,616
(257,450)
(43,616)
216,683
42,137
216,683
42,137		 Company
2021
2020
£
£
Restated
381,031
587,771
216,683
257,450
434,818
238,920
2,807,881
2,770,837
634,804
32,445
37,311
37,311
168,084
181,475
345,903
717,655
5,026,515
4,823,864
Company
Company
2021
2021
Fees in
advance
Other deferred
income
257,450
43,616
(257,450)
(43,616)
216,683
42,137
216,683
42,137		 Company
2021
2020
£
£
Restated
381,031
587,771
216,683
257,450
434,818
238,920
2,807,881
2,770,837
634,804
32,445
37,311
37,311
168,084
181,475
345,903
717,655
5,026,515
4,823,864
Company
Company
2021
2021
Fees in
advance
Other deferred
income
257,450
43,616
(257,450)
(43,616)
216,683
42,137
216,683
42,137		 Company
2021
2020
£
£
Restated
381,031
587,771
216,683
257,450
434,818
238,920
2,807,881
2,770,837
634,804
32,445
37,311
37,311
168,084
181,475
345,903
717,655
5,026,515
4,823,864
Company
Company
2021
2021
Fees in
advance
Other deferred
income
257,450
43,616
(257,450)
(43,616)
216,683
42,137
216,683
42,137
4,823,864
Company
2021
Other deferred
income
43,616
(43,616)
42,137
42,137

Fees in advance in 2021 and 2020 represent payments against invoices raised in respect of subsequent terms where revenue will be recognised in the following financial year. Other deferred income relates to income received in respect of trips or events in the following financial year. Fee deposits are received in advance of a pupil commencing 14 years later. The liability is disclosed as due within one year as pupils may leave at any time, but with relatively stable pupil numbers, the probability of the liability becoming repayable in the short term is highly unlikely.

10(b). Creditors: amounts falling due after more than one year

Bank loans
Bank loans - maturity:
Payable within 1 year (See Note 10(a))
Payable between 1
2 years
Payable between 2
5 years
Payable after more than 5 years		 Group
2021
2020
£
£
2,494,153
558,493
2,494,153
558,493
434,818
238,920
502,187
253,200
569,185
305,293
1,422,781
-
2,928,971
797,413		 Company
2021
2020
£
£
2,494,153
558,493
2,494,153
558,493
434,818
238,920
502,187
253,200
569,185
305,293
1,422,781
-
2,928,971
797,413		 Company
2021
2020
£
£
2,494,153
558,493
2,494,153
558,493
434,818
238,920
502,187
253,200
569,185
305,293
1,422,781
-
2,928,971
797,413
558,493
238,920
253,200
305,293
-
797,413

At 31 August 2021 the Association had a secured liability of £2,928,791 (2020: £797,413). The liability is secured by a first legal charge over 41A North End Road, W14 8SZ and St James School, Church Road, Ashford, TW15 3DZ. This amount comprises two loans: £1.2m repayable in equal instalments over 60 months commencing 31 October 2018; and £2.4m repayable in instalments over 60 months commencing 30 September 2022.

- 28 -

The Independent Educational Association Limited Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

11 Analysis of Funds

and the movements in the year are as follows:

Group
Restricted Funds
Permanent Endowment
Bursary
Founders scholarship
Valerie Cullen
John Lyons
D A Nott
Unrestricted Funds
General Fund
ISPS Pension deficit
provision
IEAL Pension reserve
Company
Restricted Funds
Bursary
Founders scholarship
Valerie Cullen
John Lyons
D A Nott
Unrestricted Funds
General Fund
ISPS Pension deficit
provision
IEAL Pension reserve		 Balance
1 September
2020
Restated
£
400
827,307
67,976
238,165
-
760,885
1,894,733
24,853,428
(229,666)
(3,772,500)
22,745,995
Balance
1 September
2020
£
Restated
827,307
67,976
238,165
-
760,885
1,894,333
25,722,617
(229,666)
(3,772,500)
23,614,784		 Income
£
-
7,020
11,020
7,735
76,200
28,674
130,649
16,010,619
-
-
16,141,268
Income
£
7,020
11,020
7,735
76,200
28,674
130,649
15,965,097
-
-
16,095,746		 Expenditure

£
-
(6,361)
(10,893)
(5,814)
(76,200)
(19,963)
(119,231)
(14,965,348)
-
323,500
(14,761,079)
Expenditure

£
(6,361)
(10,893)
(5,814)
(76,200)
(19,963)
(119,231)
(14,936,410)
-
323,500
(14,732,141)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
Transfers
£
-
-
-
-
-
-
-
-
-
-		 Gains /
Losses
£
-
173,517
18,571
45,894
-
166,665
404,647
-
21,666
1,077,000
1,503,313
Gains /
Losses
£
173,517
18,571
45,894
-
166,665
404,647
-
21,666
1,077,000
1,503,313		 Balance
31 August
2021
£
400
1,001,483
86,674
285,980
-
936,261
2,310,798
25,898,699
(208,000)
(2,372,000)
25,629,497
Balance
31 August
2021
£
1,001,483
86,674
285,980
-
936,261
2,310,398
26,751,304
(208,000)
(2,372,000)
26,481,702

The Bursary fund is for disbursement of bursaries. The Founders scholarship fund is for a pupil who would not otherwise be able to attend. The Valerie Cullen Music Prize is for a musically talented pupil in the Senior Boys School. The D A Nott fund is for a bursary for specified subjects up to a maximum of £10,000 per annum. The John Lyons grant is for the funding of bursaries.

- 29 -

The Independent Educational Association Limited Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

11 Analysis of Funds (continued)

and the movements in the year are as follows:

Group
Restated
Restricted Funds
Permanent Endowment
Bursary
Founders scholarship
Valerie Cullen
D A Nott
Unrestricted Funds
General Fund
ISPS Pension deficit
provision
IEAL Pension reserve
Company
Restated
Restricted Funds
Bursary
Founders scholarship
Valerie Cullen
D A Nott
Unrestricted Funds
General Fund
ISPS Pension deficit
provision
IEAL Pension reserve		 Balance
1 September
2019
£
400
821,944
66,823
219,577
709,340
1,818,084
23,307,861
(246,000)
(3,672,900)
21,207,045
Balance
1 September
2019
£
821,944
66,823
219,577
709,340
1,817,684
24,184,916
(246,000)
(3,672,900)
22,083,700		 Income
£
-
44,636
22,217
20,535
79,163
166,551
16,460,728
-
-
16,627,279
Income
£
44,636
22,217
20,535
79,163
166,551
16,448,393
-
-
16,614,944		 Expenditure
£
-
(48,159)
(20,737)
(17,305)
(67,764)
(153,965)
(14,915,161)
-
303,000
(14,766,126)
Expenditure
£
(48,159)
(20,737)
(17,305)
(67,764)
(153,965)
(14,910,692)
-
303,000
(14,761,657)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
Transfers
£
-
-
-
-
-
-
-
-
-		 Gains /
Losses
£
-
8,886
(327)
15,358
40,146
64,063
-
16,334
(402,600)
(322,203)
Gains /
Losses
£
8,886
(327)
15,358
40,146
64,063
-
16,334
(402,600)
(322,203)		 Balance
31 August
2020
£
400
827,307
67,976
238,165
760,885
1,894,733
24,853,428
(229,666)
(3,772,500)
22,745,995
Balance
31 August
2020
£
827,307
67,976
238,165
760,885
1,894,333
25,722,617
(229,666)
(3,772,500)
23,614,784

The Bursary fund is for disbursement of bursaries.

The Founders scholarship fund is for a pupil who would not otherwise be able to attend. The Valerie Cullen Music Prize is for a musically talented pupil in the Senior Boys School. The D A Nott fund is for a bursary for specified subjects up to a maximum of £10,000 per annum. The John Lyons grant is for the funding of bursaries.

- 30 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

12 Analysis of Net Assets between Funds

Group
Tangible
Fixed
Assets
Restricted Funds
£
Permanent Endowment
Bursary
-
Founders scholarship
-
Valerie Cullen Music Prize
-
D A Nott
-
-
General Fund
28,317,427
ISPS Pension deficit provision
-
IEAL Pension reserve
-
28,317,427
The group has no free reserves as at 31 August 2021
Company
Tangible
Fixed
Assets
Restricted Funds
£
Bursary
Founders scholarship
Valerie Cullen Music Prize
D A Nott
-
-
General Fund
29,352,729
ISPS Pension deficit provision
-
IEAL Pension reserve
-
29,352,729		 Investments
£
868,411
103,497
265,154
947,866
2,184,928
-
-
-
2,184,928
Investments
£
868,411
103,497
265,154
947,866
2,184,928
-
-
-
2,184,928		 Other assets
and
liabilities
£
400
133,072
(16,823)
20,826
(11,605)
125,870
(2,418,728)
(208,000)
(2,372,000)
(4,872,858)
Other assets
and
liabilities
£
133,072
(16,823)
20,826
(11,605)
125,470
(2,601,425)
(208,000)
(2,372,000)
(5,055,955)		 Total
2021
£
400
1,001,483
86,674
285,980
936,261
2,310,798
25,898,699
(208,000)
(2,372,000)
25,629,497
Total
2021
£
1,001,483
86,674
285,980
936,261
2,310,398
26,751,304
(208,000)
(2,372,000)
26,481,702

The company has no free reserves as at 31 August 2021

- 31 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

12
Analysis of Net Assets between Funds
Group
Restated
Tangible
Fixed
Assets
Restricted Funds
£
Permanent Endowment
-
Bursary
-
Founders scholarship
-
Valerie Cullen Music Prize
-
D A Nott
-
-
General Fund
26,379,499
ISPS Pension deficit provision
-
IEAL Pension reserve
-
26,379,499
The group has no free reserves as at 31 August 2020
Company
Restated
Tangible
Fixed
Assets
Restricted Funds
£
Bursary
-
Founders scholarship
-
Valerie Cullen Music Prize
-
D A Nott
-
-
General Fund
27,414,801
ISPS Pension deficit provision
-
IEAL Pension reserve
-
27,414,801		 Investments
£
-
694,235
84,799
217,339
772,490
1,768,863
-
-
-
1,768,863
Investments
£
694,235
84,799
217,339
772,490
1,768,863
-
-
-
1,768,863		 Other assets
and
liabilities
£
400
133,072
(16,823)
20,826
(11,605)
125,870
(1,526,071)
(229,666)
(3,772,500)
(5,402,367)
Other assets
and
liabilities
£
133,072
(16,823)
20,826
(11,605)
125,470
(1,692,184)
(229,666)
(3,772,500)
(5,568,880)		 Total
2020
£
400
827,307
67,976
238,165
760,885
1,894,733
24,853,428
(229,666)
(3,772,500)
22,745,995
Total
2020
£
827,307
67,976
238,165
760,885
1,894,333
25,722,617
(229,666)
(3,772,500)
25,614,784

The company has no free reserves as at 31 August 2020

- 32 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

13. Pension Schemes

IEAL Defined Benefit Scheme

The Association operates a pension scheme providing benefits based on final pensionable pay. With effect from 31 August 2017 the scheme was closed to all new members and to future accrual for teaching staff. The scheme continues to operate for a number of non-teaching staff.

The assets of the scheme are held separately from those of the Association, being invested with insurance companies. Contributions to the scheme are charged to the Statement of Financial Activities so as to spread the cost of pensions over employees' working lives with the Association. The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent valuation was at 31 March 2021. The assumptions which have the most significant effect on the results of the valuation are those relating to the rate of return on investments, the rates of increase in salaries and pensions and the discount rate.

The preliminary results of the most recent triennial valuation as at 31 March 2021 showed that the market value of the scheme's assets was approximately £16,614,000 with the Scheme Specific Funding Requirement standing at 86% whereas at the previous valuation it was 87%.

As set out in the interim Schedule of Contributions dated 5 October 2020, regular employer contributions of 25.1% of pensionable salaries are to be paid from 5 October 2020. Deficit payments of £33,333.33 are due monthly over the period from 5 October 2020 to 31 December 2024. Contribution payments of £3,880 are payable monthly from 5 October 2020 to cover general core expenses. As a result of the 2021 valuation from 1 April 2022 deficit payments of £33,333 are due monthly until 31 August 2028 and contribution payments of £3,895 are payable monthly to cover expenses. Employer contributions have increase to 27.2% of pensionable salaries.

The financial assumptions underlying the valuation as at 31 March 2021 were as follows:

----- Start of picture text -----
Pre-retirement discount rate Market implied gilt yield curve plus 2.75% pa
Post-retirement discount rate Market implied gilt yield curve plus 0.25% pa
RPI inflation Market implied inflation gilt yield curve
Pre 2030: RPI curve less 0.8% p.a.
CPI inflation
Post 2030: RPI curve less 0% p.a.
Rate of salary increase CPI curve with floor
LPI Pension Increases curves derived from RPI,
Pension increases
adjusted for the impact of the cap and floor
----- End of picture text -----

The 2021 valuation was carried out using the mortality base tables Club VITA tables and for future improvements in longevity the CMI 2020 model with a long-term rate of improvement of 1.5% (tapering for ages above 85 to 0% to 110) and a smoothing parameter of Sk = 7.0 and A parameter of 0.2% for men and 0.6% for women.

Basis of calculation

The last full actuarial valuation upon which the FRS102 figures have been based was as at 31 March 2021 (preliminary results).

- 33 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

13. Pension Schemes (continued)
Disclosed Expense
A Disclosed Expense 2021 2020
Current service cost 44 87
Net interest on net defined liability 61 63
Defined benefit cost recognised in Statement of Financial
Activites 105 150
Administration costs incurred in theperiod 107 3
Disclosed expense 212 153
B Amounts recognised in Other Comprehensive Income
(OCI)
Actuarial loss arising during period 116 180
Return onplan assets (1,193) 223
RemeasurementeffectsrecognisedinOCI (1,077) 403
C Total Defined Benefit Cost
Cost recognised in the Statement of Financial Activities 212 153
Remeasurement effects recognised in the OCI (1,077) 403
Defined benefit cost (865) 556
D Assumptions Used to Determine Expense
Discount rate 1.60% 1.70%
Price inflation (RPI) 3.35% 3.10%
Price inflation (CPI) 2.85% 2.40%
Rate of salary increase 2.85% 2.40%
Pension increases for in-payment benefits (Pre 2012 accrual) 3.25% 3.00%
Pension increases for in-payment benefits (Post 2012 accrual) 2.85% 2.40%
Pension increases in deferment for deferred benefits pre 2009 2.85% 2.40%
Pension increases in deferment for deferred benefits post 2009 2.50% 2.40%
Life expectancies: Male Female
Average future expectancy for a pensioner aged 65 at 31/8/21 23 years 25.5 years
Average future life expectancy at age 65 for a non-pensioner 22.7 years 26.4 years
aged 50 at 31/8/21
Net Balance Sheet Position
A Development of Net Balance Sheet Position 2021 2020
Defined benefit obligation (DBO) (20,750) (20,865)
Fair value of assets(FVA) 18,378 17,092
Deficit in theplan (2,372) (3,773)
B Reconciliation to Balance Sheet
Net defined benefit liability at end of prior period (3,773) (3,673)
Current service cost (44) (87)
Net interest on net defined benefit liability (61) (63)
Remeasurement effects recognised in OCI 1,077 (402)
Employer contributions 536 455
Administration costs incurred in theperiod (107) (3)
Net defined benefit liabilityat end of currentperiod (2,372) (3,773)

- 34 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2020 (continued)

13.
Pension Schemes (continued)
Additional Disclosure Information
A
Expected Future Administration Expenses for the period ending 31 August 2022
43
B
Expected Contributions for period ending 31 August 2022
Employer
447
Scheme participants
0.0
C
Actual return on Scheme Assets during period ending 31 August 2021
Interest on assets
288
Asset gain during period
1,193
Actual return on assets
1,481
D
Scheme Asset Information
Allocation Percentage
31 August 2021
Allocation Percentage
31 August 2020
Equities
12%
0.0%
Absolute bond return
8%
0%
Asset backed securities
25%
0%
Insurance linked securities
7%
0%
Synthetic credit
7%
0%
LDI
24%
0%
Cash and cash equivalents
17%
0%
Gilts
0%
23.3%
Corporate bonds
0%
25.1%
Real estate / property
0%
0.0%
Other
0%
56.1%
Total
100%
100.0%
Fair value ofplan assets
18,378
17,092		 43
447
0.0
288
1,193
1,481

- 35 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

13. Pension Schemes (continued)

Changes in disclosed liabilities and assets

----- Start of picture text -----
2021 2020
A - Change in Actuarial Value of Liabilities
DBO at end of prior period 20,865 20,768
Current Service Cost 44 87
Interest cost on the DBO 349 370
Administrative Costs 107 -
- -
Actuarial Loss 116 180
Benefits paid (731) (540)
DBO at current period end 20,750 20,865
B - Change in Scheme Assets
Fair value of assets at end of prior period 17,092 17,095
Interest income on plan assets 288 307
Return on plan assets greater than discount rate 1,193 (223)
Employer contributions 536 456
- -
Administrative costs paid - (3)
Benefits paid (731) (540)
Fair value of assets at current period end 18,378 17,092
----- End of picture text -----

IEAL Scottish Widows Stakeholder Scheme

With effect from 1 September 2010 the Association introduced a stakeholder pension scheme for non-teaching staff not eligible for participation in the IEAL Defined Benefit Scheme. The stakeholder scheme is a defined contribution scheme with funds managed by Scottish Widows. Employe contribution rate is 10%. At the balance sheet date there were 44 members of this scheme (2020: 44). During the year £130,001 (2020: £109,584) of contributions were payable by the employer. Contributions of £18,367 (2020: £13,650) were owing to the scheme at the balance sheet date.

NEST stakeholder scheme

This scheme is for employees who are neither in the IEAL Pension Scheme or the IEAL Scottish Widows Stakeholder Scheme and who qualify for auto-enrolment into a Pension Scheme. The stakeholder scheme is a defined contribution scheme. The employee contribution rate contribution rate was 3% throughout the period. At the balance sheet date there were 14 members of this scheme (2020: 9). During the year £10,365 (2020: £8,148) of contributions were payable by the employer. Contributions of £1,750 (2020: £1,459) were owed to the scheme at the balance sheet date.

- 36 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

13. Pension Schemes (continued)

For the period to the end of December 2014 St. David's School participated in The Independent Schools' Pension Scheme ('the Scheme'). Under a flexible apportionment arrangement, executed as a deed on 19 December 2014 and School to the School ceased to be an employer under the Scheme. From this date IEAL is the employer within the Scheme.

The association participates in the scheme, a multi-employer scheme which provides benefits to some 66 nonassociated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the association to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

As at the balance sheet date there was one active member of the Scheme employed by IEAL. During the accounting period IEAL paid a joint contribution rate of 30.5% (2020: 27.3%) comprising employer contributions of 21.0% (2020: 18.8%) and member contributions of 9.5% (2020:8.5%).

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2017. This actuarial valuation was certified on 27 December 2018 and showed assets of £149.4m, liabilities of £187.6m and a deficit of £38.2m equivalent to a past service funding level of 80%. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:

Deficit contributions

From 1 September 2019 to 30 April 2030 £2,387,357 per annum (payable monthly and increasing by 3% on each 1 September)

valuation showed assets of £110.0m, liabilities of £147.4m and a deficit of £37.4m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

From 1 September 2016 to 30 August 2029

£2,341,000 per annum (payable monthly and increasing by 3% on each 1 September)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.

The annual amount due by IEAL from 1 September 2021 to 31 August 2030 is £22,443 (increasing by 3% each on 1 September).

- 37 -

The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

13. Pension Schemes (continued)

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the school recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present values of provision Group and company

Year Ended Year Ended
31 August 2021 31 August 2020
(£000s) (£000s)
Provision at start of period 230 246
Unwinding of the discount factor (interest expense) 2 3
Deficit contribution paid (22) (22)
Remeasurements - impact of any change in assumptions (2) 2
Remeasurements - amendments to the contribution schedule - -
Provision at end of period 208 230

Statement of Financial Activities impact: - Group and company

Year Ended Year Ended
31 August 2021 31 August 2020
(£000s) (£000s)
Interest expense 2 3
Remeasurements impact of any change in assumptions (2) 2
Remeasurements amendments to the contribution schedule - -
Contributions paid in respect of future service - (22)
Costs recognised in income and expenditure account - 16

Assumptions

31 August 2021 31 August 2020
% per annum % per annum
Rate of
discount		 1.09 1.7

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions .

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The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

13. Pension Schemes (continued)

Following a change in legislation in April 2005 there is a potential debt on the employer that could be levied by the Trustee of the Scheme. The debt is due in the event of the employer ceasing to participate in the Scheme or the Scheme winding up. The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme (calculated on a buy-out basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Scheme. If the liabilities exceed assets there is a buy-out debt.

The leaving employer's share of the buy-out debt is the proportion of the Scheme's liability attributable to employment with the leaving employer compared to the total amount of the Scheme's liabilities (relating to employment with all the currently participating employers). The leaving employer's debt therefore includes a share of any 'orphan' liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Scheme liabilities, Scheme investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.

IEAL has been notified by The Pensions Trust of the estimated employer debt that would have been payable if IEAL September 2019. As of this date the estimated employer debt for IEAL was £905,879. As IEAL currently has no plans to leave the scheme, this contingent liability has not been provided for in the accounts, and as the Actuary is unable to identify its share of the underlying assets and liabilities at 31 August 2021, the scheme has been accounted for as a defined contribution scheme as permitted by FRS102 and contributions are accounted for when due. Any agreed pension deficit funding payments are provided for on a discounted basis.

Amounts paid in respect of employer pension contributions during the year including the annual deficit contributions were £59,275 (2020: £43,333). As at 31 August 2021 £6,051 (2020: £4,334) was owing to the scheme.

14. Transactions with Trustees and Related Parties

No remuneration or expenses were paid to the trustees (2020: £Nil).

The aggregate employee-benefits of the key management personnel are shown in Note 5.

71,637 (2020: £81,682) to the Association, and the Association owed £37,310 (2020: £37,310 St James Enterprises Limited, a subsidiary of the Association, was incorporated on 16 January 2018. At the balance sheet date, St James Enterprises Limited owed the Association £2,294 (2020: £1 due from Association).

Certain Trustees have spouses or other relations who are employed at the school as teachers and as such receive meetings on any matters relating t 31 August 2021 there were two Trustees with relatives employed whose aggregate gross salaries for the year ending on that date was £14,580 (2020: £95,560). Certain Trustees also have children who are pupils at the school and pay fees in accordance with the normal fee rates for all pupils less any contractual discounts to which they are entitled.

Mr George Cselko, who was a Trustee, was a partner in Fletcher Day, Solicitors, a firm that has provided legal advice and services to the Association from time to time. The total value of charges for such services was £Nil (2020: £3,996). No amounts were owed to Fletcher Day at 31 August 2021 (2020: £Nil).

Mr Jerome Webb, who is a Trustee, is a partner at GIA. GIA provided services during the year to the value of £nil (2020: £326). No amounts were owed to GIA at 31 August 2021 (2020 - £Nil).

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The Independent Educational Association Limited

Notes to the Consolidated Financial Statements

For the year ended 31 August 2021 (continued)

15. Operating lease commitments

The amount charged as expenses in respect of operating leases was £Nil (2020: £Nil)

The Association had several short-term leases in respect of property let during the year. The future minimum lease rentals receivable in respect of the remaining lease period or notice period amount to £41,495 at 31 August 2021 (2020: £41,495)

16. Capital and other commitments

At 31 August 2021 the Association had building works contracted for, but not accrued, amounting to £Nil (2020: £1,137,531) of which approximately £Nil (2020: £1,137,531) related to capital commitments.

17. Subsidiary Undertakings

A. The Most Honourable and Loyal Society

Incorporated by Act of Parliament in 1846 in England Registered charity number 312091

Trustees are common to those of the Independent Educational Association Limited

Former owner and manager of the property situated at Church Road, Ashford, Middlesex that is used by transferred to the Independent Educational Association Limited on 24 November 2014 at which point its main activity was discontinued.

Aggregate liabilities - £Nil (2020: £Nil) Aggregate funds £158,804 (2020: £158,936) Turnover for the year - £Nil (2020: £410) Expenditure for the year - £132 (2020: £121)

Loss /Profit for the year - £132 (2020: £289)

B.

100% of the issued share capital is held by The Most Honourable and Loyal Society of Ancient Britons

Church Road, Ashford

e Independent Educational Association Limited also occupy and utilise the facilities at Church Road, Ashford during school days and various times in the evenings and at weekends Aggregate assets - £64,839 (2020: £74,796)

Aggregate liabilities - £77,888 (2020: £84,979) Aggregate funds £(13,049) (2020: £10,183) Turnover for the year - £Nil (2020: £Nil) Expenditure for the year - £2,864 (2020: £10,184)

Loss for the year £2,864 (2020: £Nil)

C. St James Enterprises Limited

100% of the issued share capital is held by the Independent Educational Association Limited Aggregate assets - £61,269 (2020: £1)

Aggregate liabilities - £23,929 (2020: £nil) Aggregate funds - £37,340 (2020: £1)

Turnover for the year - £45,522 (2020: £12,335) Expenditure for the year - £8,182 (2020: £372)

Profit for the year (gift aided to parent) - £37,340 (2020: £7,986)

The company assumed the handling of commercial events from on 1 April 2020

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The Independent Educational Association Limited

Notes to the Consolidated Financial Statements For the year ended 31 August 2021 (continued)

18. Prior Year Adjustment

During the course of the year it was discovered that employer tax and pension liabilities in respect of August 2020 had been included twice within the financial statements of that year totalling £303,000. The correction has been treated as a prior year adjustment and the prior year figures restated accordingly. The adjustment relates to general unrestricted funds.

Net income for the year to 31 August 2020 as previously stated
Add back staff costs overstated
Net income for the year to 31 August 2020 as restated
Net assets carried forward at 31 August 2020 as previously stated
Add back payroll liabilities overstated
Net assets carried forward at 31 August 2020 as restated		 £
1,235,950
303,000
1,538,950
22,442,995
303,000
22,745,995

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