## **Company Registration No.01678837 (England and Wales) Charity Registration No.286059** **KEW COLLEGE (A company limited by guarantee)** ## **GOVERNORS’ REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 AUGUST 2020** **KEW COLLEGE** ## **CONTENTS** ||**Page**| |---|---| |Reference and administrative details of the charity, its Governors and advisors|1| |Chair’s Statement|2| |Governors’ and Trustees’ report|3 - 9| |Independent auditors’ report|10 - 11| |Statement of Financial Activities|12| |Statement of Financial Position|13| |Cash Flow Statement|14| |Notes to the financial statements|15 - 26| **KEW COLLEGE** ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **OF THE CHARITY, ITS GOVERNORS AND ADVISORS** ## **Governors** The following Governors, who are the Directors and Trustees of the charitable company, have held office since 1 September 2019 and served throughout the period under review except where indicated: Serena Alexander (resigned 5 March 2020) Susan Bourne (resigned 31 December 2020) Aylsa Geeson David Imrie Chairman Dylan Jones (appointed 18 November 2019) Gerald McGregor Paula Vanninen ## **Key management personnel** All are members of the Senior Management Team Marianne Austin – Head Joanna Brackenbury – Bursar ## **Head** Marianne Austin **Bursar, Company Secretary and Clerk to the Governors** Joanna Brackenbury ## **Address** 24-26 Cumberland Road, Kew Gardens, Surrey TW9 3HQ **Web site** www.kewcollege.com ## **ADVISORS** ## **Auditors** Haysmacintyre LLP, 10 Queen Street Place, London, EC4R 1AG ## **Bankers** National Westminster Bank Plc, 22 George Street, Richmond, Surrey, TW9 1JW **Registered charity number** 286059 **Registration company number** 01678837 1 **KEW COLLEGE** ## **CHAIR’S STATEMENT** ## **FOR THE YEAR ENDED 31 AUGUST 2020** At the time of writing this statement, Kew College is looking forward to welcoming back into School all of its pupils and staff on 8 March, following a second closure of schools since the start of the term on 5 January 2021. The past year has been a challenging one for the whole school community – the pupils, the staff and the parents. On behalf of all the Governors I would like to thank the staff and the parents for the tremendous effort they have all had to make to try to make life as normal as possible for our pupils in such abnormal times, and to our pupils for adapting to the new way of schooling. Our pupils have adapted well and we, the Governors, have heard of some wonderful examples of their enthusiasm. Our teaching staff made huge efforts to learn the skills needed to deliver online lessons and I am very proud of how they rose to the challenges. Our pupils have suffered from being separated from their friends, and home-schooling has been a challenge to parents. I know that many of our parents are continuing to balance the demands of parenting, homeschooling and working. At the start of the first lockdown, I and my fellow-Governors took the decision to discount school fees for the summer 2020 term. These discounts reduced total income by £141,510, and further support was given to five families suffering financial difficulties. As Governors, we are responsible for looking after the financial security of the School. A commitment was made to parents in the summer term not to review school fees until the school was able to open. Accordingly, fees were frozen until February 2021 half term. It was wonderful to open the School to all in the autumn 2020 term, and so disappointing to have to close again on 5 January. This annual report and accounts look back over the year from September 2019, but it is difficult to look back to a pre-COVID time. Our pupils are the reason that our staff strive so hard to make lessons normal, to keep their classes together as a community. They are the reason that our parents have done all that they can to help their pupils with home learning, and to help them to adapt to this new way of keeping in touch with friends. The staff cannot wait to welcome them all back into School and we all fervently hope that our School will remain open from 8 March, with no further enforced closures. Mrs Austin will be retiring at the end of the 2020/21 year and Governors worked tirelessly in the summer term to identify and appoint a worthy successor to Mrs Austin, Mrs Jane Bond. More will be said about Mrs Austin’s outstanding contribution in next year’s annual report. I would like to thank my fellow-Governors for their support of me, and for their support of the Head and her team through the past eleven months, and for their continuing support. ## David Imrie _______________________________________ David Imrie Chairman Date: 2 March 2021 2 **KEW COLLEGE** ## **GOVERNORS’ REPORT** ## **FOR THE YEAR ENDED 31 AUGUST 2020** The Governors, who also act as Directors of the company and Trustees of Kew College (“the School”), present their report and the financial statements for the year ended 31 August 2020. ## **REFERENCE AND ADMINISTRATIVE INFORMATION** The School, a registered charity, is a company limited by guarantee. The School was registered with the Charity Commissioners under charity number 286059 on the 5 January 1983. The Governors and executive officers, principal address of the School and of the professional advisors are listed on page 1. The School was incorporated on 17 November 1982 with the company number 01678837. ## **OBJECTIVES AND ACTIVITIES** ## **Charitable objectives** The objectives of the School are the advancement of education and in particular, carrying on Kew College in Kew, Surrey and such other schools as shall be thought fit. In setting the aims and objectives and planning the activities, the Governors have given careful consideration to the Charity Commission guidance on public benefit. The School’s immediate beneficiaries are children who attend our fee-paying school. The local community benefits from the pressure taken off over-subscribed schools in the maintained sector. The wider community benefits from the wellrounded individuals who leave our School with an enthusiasm for learning, and also benefits by the School lowering the burden on the state of the cost of the children’s education that would otherwise be borne by the state. ## **Aims and objectives** Kew College is a non-selective, family oriented, co-educational school for children from Nursery to Year 6. ## We aim: - To provide our children with a well-balanced, broad and enriching educational experience at a high level - To create a friendly and caring environment that is relaxed but purposeful and in which children feel happy and enjoy working with each other - To ensure that our children feel valued and are supported in developing a healthy self-esteem and confidence to make their own informed choices - To actively promote the fundamental British values of democracy, the rule of law, individual liberty, and mutual respect and tolerance of those with different faiths and religions - To instil in our children a sense of commitment, responsibility and resilience to equip them with the appropriate skills for the next stage in their education Our strategy is to help every child reach their academic potential within a broad curriculum that encourages participation in sports and the arts and develops self-esteem in our pupils. The School aims to provide a good-quality education at a price that is affordable for as many local families as possible. Fees charged are below those charged by all other fee-paying schools in the area. We offer bursaries to allow access to the School for those local families that cannot afford our fees. This is means-tested and available to children joining in Years 3 & 4 who could contribute to the School academically or in another capacity. In the year under review, no child had applied for a means-tested bursary. Five existing families received assistance from the Hardship Fund. ## **Volunteers** Parents of younger children assist on School outings on an ad hoc basis. Other volunteers include our parent body who offer social events to the children and the wider school community. ## **Objectives for the year under review** During the period under review our objectives were to continue to refurbish the original School buildings at 24-26 Cumberland Road to provide improved facilities for pupils and staff, to offer excellence throughout the curriculum, to foster independent learning and critical thinking, to promote the wellbeing of pupils and staff, to improve communication with parents, to look for more opportunities for community engagement and to continue to seek applications for free or subsidised places. 3 **KEW COLLEGE** ## **GOVERNORS’ REPORT (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ## **Strategies to achieve the year’s objectives** To maintain a high level of academic achievement we assess the children regularly, using both internal and external scales and compare ourselves against the national average. We identify children needing support and those who require further challenge, and differentiate the work accordingly. Those requiring extra support receive it from their class teachers, from the Teaching Assistants and where necessary, in our Learning Enrichment Department, in close liaison with parents and class teachers. We ensure we are up-to-date with the latest developments in educational practice and keep pace with new classroom technology. We use IAPS and other educational organisations to keep us abreast of new practices. Teaching is regularly monitored. Children’s work is regularly monitored to ensure quality and progress. Participation in music, sports and arts is encouraged within lessons and by the provision of extra-curricular opportunities, and pupils’ successes are celebrated in class or in assemblies. When appointing new teaching staff, we conduct rigorous assessment of their skills. Our older children are nurtured and well-prepared for entrance exams to senior schools and they enter the process with confidence. The School’s popularity is fed by word of mouth and by the very good achievements of our Year 6 in their entrance exams to senior school. Links with local organisations made during the previous year were continued. Weekly visits by our nursery children to a local residents home took place until the COVID-19 pandemic made this unsafe. A remote afternoon tea for older people was organised by Kew College in the summer term by providing individual tea boxes with a message from a pupil. Recipients were nominated by the Kew Neighbourhood Association who organised the deliveries. To promote bursaries, we have continued to advertise online and in local libraries and other places throughout the borough. ## **STRATEGIC REPORT** ## **REVIEW OF ACHIEVEMENTS AND PERFORMANCE** ## **Review of activities** The School provides education in Kew to boys and girls from the ages of 3 – 11 years. The School continued to thrive during the year and the roll has remained high. In common with all schools, Kew College closed to pupils from 23 March when the country went into lockdown to reduce the spread of COVID-19; the children of key workers continued to attend for their education and care throughout the lockdown period. Learning switched to online learning through the Microsoft TEAMS medium and our teachers rose to the challenge, devoting their Easter break to preparing lessons on the new technology for the summer term. Learning was delivered through a mixture of recorded lessons and live lessons across the curriculum and both teaching and learning remained at a high level. In June we welcomed back some children to school in line with government guidance, and taking into account the physical constraints of our buildings. The government’s target year groups received several sessions a week and all children were invited in for at least two sessions before the summer holiday. Whilst a few families relocated away from London because of the pandemic, pupil numbers remained high, and the popularity of the School continues to be reflected in the high number of applications for places that are still being received. During the year the School had on average 289 (2019: 290) pupils of which 37 were part-time nursery pupils. Kew College is regarded as a very secure foundation for entry to senior schools. It can be considered to be one of the best preparatory schools in the area. The School regularly sends pupils to a broad cross section of the West London day schools. This year pupils have been awarded scholarships to, Hampton School, Headington School, King’s College School Wimbledon, Radnor House School, St Benedict’s School, St Catherine’s School and Surbiton High School. Kew College offers a wide range of sports and competes regularly with schools in West London. Our sports teams continue to enjoy success in Swimming Galas and numerous Netball, Football, Rugby, Hockey and Athletics competitions. Pupils are taught PE/Games and Dance with specialist coaches and teachers. During the lockdown, swimming and team games stopped, but PE and Dance continued to be included in the online learning. For September 2020 additional outside facilities have been organised Children at the School excel in Music, Art and Drama and participate in various events and after school clubs. A large number of children take individual Music lessons in School, which comprise woodwind, brass, strings, piano, guitar and drums. During the summer term many children continued with their lessons online. The four ensemble groups and the choirs which rehearse each week were not able to continue during the lockdown, but singing was included in the online learning. Fortunately the regular end of term concert in the Spring Term took place before lockdown and included performances from the ensemble groups as well as individual recitals. The School continues to provide LAMDA sessions to children in the Junior House and these continued online during the lockdown period; the children were very successful in their LAMDA examinations in the summer. 4 **KEW COLLEGE** **GOVERNORS’ REPORT (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ## **STRATEGIC REPORT (continued)** A wide variety of extra-curricular clubs are provided each week, provided by Kew College staff and outside providers. Clubs include choirs, Music Technology, Dance, Sports, Computer coding, Chess, Arts and Crafts, Digital Photography and other interests, including Touch Typing. These also stopped during the lockdown period. At the end of the Summer Term, pupils usually take part in end of year performances with the Year 6 play being performed on two consecutive evenings. School resumed for all year groups towards the end of term on a part time, rotational basis and Year 6 produced and filmed an end of term pantomime which was shared with their parents. The School continues to take part in community events. Children sing at Kew Village Christmas Fair. Our Year 6 children wrote to elderly residents in the Borough, who this year were unable to come to Kew College for afternoon tea, which was instead delivered to them. Our Nursery children took part in an intergenerational project with a local care home, visiting the elderly residents weekly to play games and engage in other activities with them; children and residents both gained immensely from the lovely weekly interactions. This was suspended during lockdown. The School took part in swimming galas locally until the lockdown. Unfortunately, no suitable applications were received for bursaries during the year. Permission was received from the Charities Commission for the School to provide a bursary at a secondary school; lockdown prevented the arrangements from being finalised in time for September 2020 and this is being actively pursued for September 2021. ## **Building Improvements** The national lockdown on 23 March including closure of schools meant that our capital expenditure programme for building improvements was cancelled and replaced with that element of the refurbishment that was essential repairs and maintenance. This included replacing the old and damaged bannisters, replacing some of the old sash windows and repairing part of the roof at 26 Cumberland Road. ## **Voluntary Fund Raising** Through our PSHEE studies, our pupils are taught to think about those less fortunate than themselves. They are encouraged to raise funds for charities with an emphasis on local charities or those with a particular meaning to the School community. Pupils present their charity of choice to the School and the charity that the whole School will support for the year is chosen by democratic election. The charity for 2019/20 was Centrepoint Homeless Charity – as lockdown prohibited fundraising through our usual activities such as the Summer Fair, it was decided that CentrePoint would remain the charity for 2020/2021. Fundraising so far has amassed £10,000 for the charity. In addition, Harvest Festival donations of food are given to the local Salvation Army, the Poppy Appeal is supported, the Giving Tree at Christmas supports children in care, giving gifts to those children who would not otherwise receive a gift, and a donation of £300 was given to support the Kew Village Christmas Lights. The Kew College Friends (KCF) is an organisation run by parents of Kew College pupils. KCF organise social and fundraising activities in and out of School for children and parents. Fund raising was curtailed by the lockdown as the annual Summer Fair was unable to take place. Funds raised are donated to the School for specific purposes and in the year under review, KCF bought trees and shrubs for a living screen at the front of the school. KCF contributed to the cost of our Leavers books and half the cost of a STRIDE business workshop for Year 6. Funds are also raised for the School’s elected charity. We would like to express our thanks and appreciation to KCF for their work for the School and the School community. The School has not made any fundraising appeals to the general public during the year, and is unlikely to do so in the future. There has been no outsourced fund raising via professional fundraisers or other third parties. As a result the School is not registered with the fundraising regulator and received no fundraising complaints in the year. ## **FUTURE PLANS** The School’s future plans include the following objectives although we recognise that the ongoing COVID-19 pandemic may restrict what we can do, particularly with after school clubs and care and with involvement in the local community: - To promote excellence though the curriculum by continually evaluating our teaching to ensure pupils are offered a curriculum that is both challenging and creative; - To continue to foster the children’s desire to become independent learners and critical thinkers; - To extend our provision of after school clubs and care; 5 **KEW COLLEGE** ## **GOVERNORS’ REPORT (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ## **STRATEGIC REPORT (continued)** - To expand our sense of pastoral responsibility by continuing to promote the wellbeing of pupils and staff; - To look for opportunities for our pupils to continue to be more involved in the local community; - To introduce further opportunities for our pupils to use ICT across the curriculum; - To continue to extend our provision of after-school clubs; - To continue to refurbish the original school buildings at 24-26 Cumberland Road to provide improved facilities for pupils and staff; - To provide a 100% bursary to a child throughout their seven years at a local coeducational secondary school. ## **FINANCIAL REVIEW** ## **Financial activities and results** The surplus for the year was £119,684 (2019 £245,658). Income for the year amounted to £3,537,039, an increase of £80,202. This included higher fee income in the first two terms and higher pupil numbers offset by discounted fees and lower other income in the final term. Expenditure increased by £206,176, due to higher staff costs, higher property repairs and maintenance costs, and higher IT costs, including some associated with the COVID-19 school closure and online learning platform. The balance sheet includes £335,868 of advance fees, due at the start of September and paid before the financial year end. Acceptance deposits, held until the child leaves the School, stood at £543,949 at the end of the year. Unrestricted reserves at the end of the year were £6,647,749. As a charity, the parents of the pupils have the assurance that all the income of the School must be applied for educational purposes. As an Educational Charity the School enjoys a tax exemption on the educational activities and on the investment income. As a Charity, the School is also entitled to an 80% reduction on the business rates on the property occupied for the charitable purposes. The financial benefits received from the tax exemptions are all applied for educational purposes. The School is unable to reclaim input VAT on its expenditure. ## **Reserves policy** At 31 August 2020, the charity had total reserves of £6,681,984 (2019: £6,562,300). Of these, £34,235 (2019: £45,654) were restricted and therefore not available for the general purposes of the charity. Unrestricted funds of £6,647,749 (2019: £6,516,646) are represented by functional assets used in the furtherance of the School’s objectives and as a result the School has no free reserves. The policy is to achieve an annual surplus before depreciation of 10% of income. The policy is to continue building up reserves by means of annual operating surpluses and management of our investment assets, supplemented by occasional donations. ## **Funding** The School had a loan of £1,514,259 outstanding at 31 August 2020, provided by National Westminster Bank on which the interest is at a floating rate. The board is confident that the School has adequate cover for its working capital requirements. Borrowing is secured by a charge over the School’s assets and the endowment by the School’s founder of the main School buildings provide more than sufficient security for all foreseeable borrowing requirements. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing Document** The School is governed by the Articles of Association, last updated on 10 February 2020. ## **Recruitment and Training of Governors** The School’s Governors are appointed at a Meeting of the Governors on the basis of nominations received from members of the Board of Governors. Nominations are based on eligibility, personal competence and specialist skills. 6 **KEW COLLEGE** **GOVERNORS’ REPORT (continued)** **FOR THE YEAR ENDED 31 AUGUST 2020** ## **STRATEGIC REPORT (continued)** New Governors are inducted into the workings of the School with an information pack, a personal meeting with the Chair of Governors, and by a visit to the School and Head. Governors attend training sessions as and when required. During the year Governors attended training sessions or undertook online training covering Safeguarding, Safer Recruitment and Developing the Leadership Team. New Governors are elected by the Board of Governors and serve until the earlier of retirement or when they volunteer to retire. One third (or the number nearest one third) of the Governors must retire at each Annual General Meeting, those longest in office retiring first and the choice between any of equal service being made by drawing lots. Retiring Governors shall be eligible for re-appointment for consecutive periods not exceeding in aggregate nine years from the date of their original appointment but thereafter Governors shall not be eligible for reappointment until one year after their retirement. A ‘year’ means the period between one Annual General Meeting and the next. Conflicts of interest are monitored to ensure that they do not influence the management of the School. ## **Organisational Structure** The Kew College Governors, as the charity Trustees of the School, are legally responsible for overseeing the strategic development and the overall management and control of the School and meet at least three times a year. The work of implementing their policies was carried out by two sub-committees: the Resources Committee and the Education & Welfare Committee. These committees meet at least once a term and report to the main governing body. A staff Health and Safety Committee also meets termly and reports to the Resources Committee. The day-to-day running of the School is delegated to the Head, supported by her Senior Leadership team, including the Bursar. Other members of the Senior Leadership team are the Deputy Head and other senior teachers. The Head and Bursar attend meetings of the full Governing Board and the two committees. Remuneration for the Head and the Bursar is set by the Board, and that of the rest of the senior management team is set by the Head and the Bursar within the budget approved by the Board. The policy objective is to ensure appropriate incentives to encourage enhanced performance in a fair and responsible manner, rewarding for individual contributions to the School’s success. The appropriateness and relevance of the remuneration policy is reviewed annually by the Board of Governors, including reference to comparisons with other independent schools to ensure that Kew College remains sensitive to the broader issues of pay and employment conditions elsewhere. The Governors give of their time freely and no remuneration was paid in the year. Travel and subsistence was paid to one Governor. No Governors or person connected with a Governor received any benefits. ## **Principal Risks and Uncertainties** The Kew College Board of Governors is responsible for the management of the risks faced by the School. A risk register is maintained. Risks are considered at Board meetings at least once a year. The continuing COVID-19 pandemic remains a challenge for the School during 2020-21. School opened fully for pupils at the start of the Autumn term, with all recommended safety measures in place, such as keeping children in year group ‘bubbles’ to reduce contact between children, staggered start and finish times, staggered breaks, restrictions on staff mixing, use of clear screens in some areas and different arrangements for Games to halve the number of children on coaches. After-school clubs resumed in October but stopped at the start of the November lock-down. All schools were ordered to close by the government on 6 January, just before Kew College was due to open on 7 January and teaching switched to virtual provision via Microsoft Teams. The Nursery remained open in line with government guidance and children of critical workers and vulnerable children were offered the option to come into school; a small number of pupils exercised the option. School fees were frozen at 2019/20 rates for half the year from September 2020 to February half term 2021 with an increase thereafter. Discounts were offered during the first lockdown to pupils across the whole school with a larger discount for the EYFS pupils in recognition of the higher parental involvement necessary in their learning at this young age. Discounts were not offered for the closure in January 2021; the considerations in coming to this decision were the high level of teaching and learning provided, lack of cost savings and the need to maintain the financial security of the school. Pupil numbers have remained high and at February half term were 292. 7 **KEW COLLEGE** **FOR THE YEAR ENDED 31 AUGUST 2020** ## **GOVERNORS’ REPORT (continued)** ## **STRATEGIC REPORT (continued)** The Governors are satisfied that major risks have been identified and that all reasonable steps are taken to mitigate identified risks. The Governors believe that the School is provided with sufficient resources in the event of adverse conditions. The Board is confident that the School has adequate cover for its working capital requirements. The other main risks that the Governors have identified and the plans to manage those risks are: Reputation – the School’s success is built on its reputation for the education and wellbeing of our pupils. We manage our reputation for high quality education provision and success at entrance exams to secondary schools by attracting excellent teaching staff, who enjoy a culture of professional support through training and development, positive appraisal and well-resourced classrooms. We manage our reputation for the wellbeing of our pupils though an ethos that ensures that our pupils are happy and thrive in our School, built around our safeguarding policies, staff recruitment policies, pastoral support for both pupils and staff and active identification and resolution of personal, social and health and safety related issues. Cost Risk and Political Risk – our ability to continue to operate as a School is reliant on being able to maintain costs at an affordable level. This is threatened by various economic and political developments such as the potential withdrawal of Charitable business rate relief from independent school, the introduction of taxes, and the possibility of further increase in Teachers’ Pensions employers’ rate in the future. We manage this risk by keeping up-to-date with advice available from several professional bodies working in the independent schools sector such as the ISBA, IAPS, ISC and AGBIS, setting a prudent budget, and maintaining a strong banking relationship that ensures that additional cash will be available for unexpected cost increases. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately mitigated. ## **AUDITORS** A resolution to confirm the continuing appointment of Haysmacintyre LLP as the company’s auditor will be proposed at the Annual General Meeting on 2 March 2021. ## **STATEMENT OF GOVERNORS’ RESPONSIBILITIES** The Governors (who are also directors of Kew College for the purposes of company law) are responsible for preparing the Governors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102. Company law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required to: - Select suitable accounting policies and then apply them consistently; - Observe the methods and principles in the Charities SORP (FRS 102); - Make judgements and estimates that are reasonable and prudent; - State whether applicable UK Accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 8 **KEW COLLEGE** ## **GOVERNORS’ REPORT (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ## **STRATEGIC REPORT (continued)** So far as we are aware: - There is no relevant audit information of which the charitable company's auditor is unaware; and - The Governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The Governor’s Report, which incorporates the Strategic Report, was approved by the Governors on 2 March 2021 and signed on their behalf by: ## David Imrie ………………………………. D.J. Imrie Chairman 9 **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF** ## **KEW COLLEGE** ## **Opinion** We have audited the financial statements of Kew College for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 August 2020 and of its net movement in funds, including the income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Responsibilities of Governors for the financial statements** As explained more fully in the Governors’ responsibilities statement set out on pages 7 & 8, the Governors (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 Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Governors are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s 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 material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Conclusions relating to going concern** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the Governors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The Governors are responsible for the other information. The other information comprises the information included in the Governors’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 10 **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF** ## **KEW COLLEGE (continued)** 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. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Governors’ Report (which incorporates the strategic report and the directors’ report for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the strategic report and the directors’ report included within the Governors’ Report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors’ Report (which incorporates the strategic report and the directors’ report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the charitable company; or - the charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Governors’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit ## **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) For and on behalf of Haysmacintyre LLP, Statutory Auditors 10 Queen Street Place London EC4R 1AG 2 March 2021 11 **KEW COLLEGE** ## **STATEMENT OF FINANCIAL ACTIVITIES (Including Income and Expenditure Account)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** |||**Unrestricted**|**Restricted**|**Total**|**Total**| |---|---|---|---|---|---| |||**Funds**|**Funds**|**Funds**|**Funds**| |||**2020**|**2020**|**2020**|**2019**| ||**Notes**|**£**|**£**|**£**|**£**| |**INCOME FROM:**|||||| |**Charitable Activities**|||||| |School fees receivable|4|3,381,630|-|3,381,630|3,341,983| |Other educational income|5|44,154|3,476|47,630|100,466| |**Investment income**||3,079|-|3,079|2,855| |**Donations and Grants**|6|81,360|23,340|104,700|11,533| |||----------------------|-----------------|---------------------|---------------------| |**TOTAL INCOME**||3,510,223|26,816|3,537,039|3,456,837| |||----------------------|-----------------|---------------------|---------------------| |**EXPENDITURE ON:**|||||| |**Raising funds**||34,363|-|34,363|43,192| |**Charitable activities**||3,344,757|38,235|3,382,992|3,167,987| |||---------------------|---------------|---------------------|---------------------| |**TOTAL EXPENDITURE**|7|3,379,120|38,235|3,417,355|3,211,179| |||---------------------|---------------|---------------------|---------------------| |**NET INCOME/(EXPENDITURE)**||131,103|(11,419)|119,684|245,658| |||---------------------|---------------|---------------------|---------------------| |**Net movement in funds**||131,103|(11,419)|119,684|245,658| |Balance brought forward|14|6,516,646|45,654|6,562,300|6,316,642| |||---------------------|-----------------|------------------------|------------------------| |**BALANCE CARRIED FORWARD**|14|6,647,749|34,235|6,681,984|6,562,300| |||==========|=========|===========|===========| All activities relate to continuing operations. The notes from pages 15 to 26 form part of these financial statements. The Statements of Financial Activities includes all gains and losses recognised in the year. The Statement of Financial Activities for the comparative period is presented in note 19. 12 **KEW COLLEGE** **Company Number 01678837** ## **STATEMENT OF FINANCIAL POSITION** **AS AT 31 AUGUST 2020** ||||**2020**||**2019**| |---|---|---|---|---|---| ||**Notes**|**£**|**£**|**£**|**£**| |**FIXED ASSETS**|||||| |Tangible fixed assets|9||8,019,865||8,240,518| |**CURRENT ASSETS**|||||| |Debtors|10|51,461||40,088|| |Cash and cash equivalents|11|1,194,252||1,091,798|| |||---------------------||---------------------|| |||1,245,713||1,131,886|| |**CREDITORS: amounts falling due**|||||| |**within one year**|12|(679,381)||(801,468)|| |||---------------------||---------------------|| |**NET CURRENT ASSETS**|||566,332||330,418| ||||--------------------||--------------------| |**TOTAL ASSETS LESS CURRENT**|||||| |**LIABILITIES**|||8,586,197||8,570,936| |**CREDITORS: Amounts falling due**|||||| |**after one year**|13||(1,904,213)||(2,008,636)| ||||---------------------||---------------------| |**NET ASSETS**|||6,681,984||6,562,300| ||||==========||==========| |**FUNDS**|||||| |Unrestricted funds|||||| |Revaluation fund|14||2,270,946||2,397,730| |General fund|14||4,376,803||4,118,916| |Restricted fund|14||34,235||45,654| ||||---------------------||---------------------| ||||6,681,984||6,562,300| ||||===========||===========| The financial statements were approved and authorised for issue by the Board of Governors on 2 March 2021 and signed on its behalf by ## David Imrie ## **................** D.J.Imrie **Chairman** The notes on pages 15 to 26 form part of these financial statements. 13 **KEW COLLEGE** ## **CASH FLOW STATEMENT** ## **FOR THE YEAR ENDED 31 AUGUST 2020** |||**2020**|**2019**| |---|---|---|---| |||**£**|**£**| ||**Notes**||| |**Cash flows from operating activities**|||| |Net movement in funds||119,684|245,658| |Investment income||(3,079)|(2,855)| |Depreciation charge||243,694|249,910| |Loss on disposals||-|219| |Decrease/(increase) in debtors||(11,373)|119| |Increase/(decrease) in creditors||(149,894)|67,774| |||----------------|----------------| |**Net cash provided by operating activities**||199,032|560,825| |**Cash flows from investing activities**|||| |Purchase of tangible fixed assets||(23,041)|(142,073)| |Investment income||3,079|2,855| |||----------------|----------------| |**Net cash used in investing activities**||(19,962)|(139,218)| |**Cash flows from financing activities**|||| |Repayment of debt finance||(77,041)|(72,437)| |||----------------|----------------| |**Net cash used in financing activities**||(77,041)|(72,437)| |||----------------|----------------| |Net increase/(decrease) in cash and cash equivalents||102,029|349,170| |Cash and cash equivalents at the beginning of the year||1,092,223|743,053| |||--------------------|--------------------| |**Cash and cash equivalents at the end of the year**|11|1,194,252|1,092,223| |||==========|==========| ## **Analysis of movements in net debt** ||**At 1 September**|**Cash flow**|**Non-cash**|**At 31 August 2020**| |---|---|---|---|---| ||**2019**||**movements**|| ||**£**|**£**|**£**|**£**| |Cash|1,092,223|102,029|-|1,194,252| |Overdraft facility|(425)|425|-|-| ||---------------------|-----------------|-----------------|---------------------| ||1,091,798|102,454|-|1,194,252| |Loan falling due|(74,568)|-|(14,872)|(89,440)| |within one year||||| |Loan falling due after|(1,516,732)|-|91,913|(1,424,819)| |more than one year||||| ||---------------------|-----------------|-----------------|---------------------| |Total|(499,502)|102,454|77,041|(320,007)| ||==========|========|========|==========| 14 **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ## **1. GENERAL INFORMATION** The charity is a company limited by guarantee, incorporated in England and Wales and registered with the Charity Commission. The address of the registered office is 24-26 Cumberland Road, Kew, Richmond, Surrey, TW9 3HQ. Every member of the charity is liable under the Memorandum and Articles of Association to contribute, in the event of winding up or failure to meet liabilities, a sum not exceeding £1. At 31 August 2020 the number of guarantor members was 6 and at the date of the approval of these accounts, the number of guarantor members was 5. Kew College was incorporated on 17 November 1982 (company number 01678837) and registered as a charity on 5 January 1982 (charity number 286059). ## **2. ACCOUNTING POLICIES** ## **2.1** ## **Accounting convention** The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS102”), the Companies Act 2006 and the 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 (“FRS102”) – effective 1 January 2019. ## **2.2 Going Concern** Pupil numbers remained strong throughout the year despite the pressures on family finances of the COVID-19 pandemic. Some cost-savings were made, and cash was conserved by scaling back on capital investment. Pupil numbers have continued to remain high and were 291 at February 2021 half term. Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School’s future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School’s financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Governors’ Responsibilities on pages 8 & 9. ## **2.3 School fees** Fees receivable and charges for services and use of premises are accounted for in the year in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School, but include contributions received from restricted funds for hardship. ## **2.4 Investment income** Investment income from bank balances is accounted for on an accruals basis. ## **2.5 Donations income** Donations receivable for the general purposes of the School are credited to unrestricted funds. Donations for restrictive purposes are used in accordance with specific restrictions imposed by donors or that have been raised by the School for particular purposes are credited to restricted funds. Grant income from the Coronavirus Job Retention Scheme is recognised in the same period as the related employment costs are incurred. Donations are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable. ## **2.6 Grant income** Grants received for specific purposes are used for the purposes for which they are granted. Grants received for nonspecific purposes are used for general purposes. ## **2.7 Expenditure** Liabilities are recognised as expenditure where there is a legal or constructive obligation committing the School to the expenditure. All expenditure is accounted for on an accruals basis and includes, where applicable, value added tax which is irrecoverable. Costs of charitable activities are the costs applied by the School in undertaking its work and achieving its charitable objectives, as opposed to the cost of raising funds to finance these objectives. Charitable activities are all the expenditure 15 **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** expended by the School in the delivery of the curriculum and educative services, including its programme that is directed at the achievement of the charitable aims and objectives. Such costs include direct costs of the charitable activities. Support costs represent indirect costs relating to the School’s charitable activities. Support costs, including governance costs. Governance costs are the costs associated with the governance arrangements of the School that relate to the general running of the School, as opposed to those costs associated with fundraising or charitable activities. Included within this category are costs associated with the strategic planning for its future development, the training of the Kew College Governors, constitutional and statutory requirements. ## **2.8 Tangible fixed assets and depreciation** Tangible fixed assets are stated at cost or deemed cost, net of depreciation and any provision for impairment. Tangible fixed assets costing more than £150 are capitalised and included at cost, or in the case of land and buildings at valuation, including any incidental costs of acquisition. Depreciation is provided on all tangible fixed assets, except land, at rates calculated to write off the cost on a straightline basis over the expected useful economic life as follows; Computer equipment: 3 years Furniture and fittings: 4 years Equipment: 4 years Buildings: 50 years No depreciation is provided on land. The valuation of freehold land and buildings on transition to FRS 102 at September 2014 has been taken as the deemed cost. Prior to transition to FRS 102 the freehold land and buildings were stated at valuation and were revalued on a regular basis. ## **2.9 Debtors** Fee and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. A specific provision is made for debts for which recoverability is in doubt. ## **2.10 Cash at bank and in hand** - Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **2.11 Creditors and provision** Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Fees received in advance of education to be provided in future periods are held in liabilities until either taken to income in the term when used, or else refunded. ## **2.12 Financial instruments** - The School only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. ## **2.13 Fund accounting** Unrestricted funds are those that are available for use at the discretion of the Board of Governors in furtherance of the general objectives of the School and which have not been designated for other purposes. Revaluation funds, included within unrestricted funds, represent the accumulation of gains and losses on revaluation of freehold land and buildings in the School’s use. Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors or that have been raised by the School for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim of each restricted fund is set out in the notes to the financial statements. 16 **KEW COLLEGE** **NOTES TO THE FINANCIAL STATEMENTS (continued)** **FOR THE YEAR ENDED 31 AUGUST 2020** ## **2. ACCOUNTING POLICIES (continued)** ## **2.14 Pensions** Teaching staff employed by the School are eligible for membership of the Teachers’ Pension Scheme. This scheme is a multi-employer pension scheme. It is not possible to identify the School’s share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS 102, the school accounts for the scheme as if it were a defined contribution scheme. The School’s contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable. The School operates a defined contribution pension scheme for those members of staff who are not eligible to join the Teachers’ Pension Scheme. The assets of the scheme are held separately from those of the School in an independently administered fund. The pension cost charge represents contributions payable by the School to the fund. ## **2.15 Corporation tax** Kew College is a registered charity and its income and gains are exempt from corporation tax. ## **3. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY** In the application of the accounting policies, Governors are required to make judgement, 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 affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. In the view of the Governors, 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. 17 **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** |**4.**|**CHARITABLE ACTIVITIES – FEES RECEIVABLE**|**CHARITABLE ACTIVITIES – FEES RECEIVABLE**|||**2020**|**2019**| |---|---|---|---|---|---|---| ||||||**£**|**£**| ||Fees receivable consist of:|||||| ||School fees||||3,381,630|3,344,020| ||Less: fee discounts and concessions||||(12,280)|(2,566)| ||||||--------------------|--------------------| ||||||3,369,350|3,341,454| ||Add back: bursaries and other awards paid for by restricted funds||||12,280|529| ||||||--------------------|--------------------| ||||||3,381,630|3,341,983| ||||||==========|==========| ||In the summer 2020 term, school fees were|discounted by|a total of £141,510 to acknowledge the|||impact of th| ||COVID-19 pandemic on parents.|||||| ||Fees discounts and concessions were made|to 10 pupils (2019: 1). No means tested bursaries were awarded.||||| |**5.**|**CHARITABLE ACTIVITIES – OTHER EDUCATIONAL INCOME**||||**2020**|**2019**| ||||||**£**|**£**| ||Registration fees||||5,400|5,925| ||Fees for clubs||||13,466|16,307| ||School trips||||5,475|55,825| ||Additional lessons||||12,189|10,521| ||Other||||11,100|11,888| ||||||-----------------|-----------------| ||||||47,630|100,466| ||||||=========|========| |**6.**|**DONATIONS AND GRANTS**||||**2020**|**2019**| ||||||**£**|**£**| ||Kew College Friends||||21,575|9,013| ||Hardship fund||||1,765|2,520| ||Furlough grant||||81,360|-| ||||||----------------|----------------| ||||||104,700|11,533| ||||||========|=======| |**7.**|**TOTAL EXPENDITURE**|**Staff Costs**||**Other**|**Depreciation**|**2020**| |||**£**||**£**|**£**|**£**| ||**Raising funds**|||||| ||Finance costs (see below)||-|34,363|-|34,363| ||**Charitable Activities**|||||| ||Teaching costs|1,977,568||215,458|-|2,193,026| ||Welfare costs||-|18,905|-|18,905| ||Premises costs||-|374,924|243,694|618,618| ||Support costs|381,182||158,981|-|540,163| ||Grants||-|12,280|-|12,280| |||----------------------||--------------------|-------------------|--------------------| |||2,358,750||780,548|243,694|3,382,992| |||----------------------||--------------------|-------------------|--------------------| |||2,358,750||814,911|243,694|3,417,355| |||===========||==========|=========|==========| In the summer 2020 term, school fees were discounted by a total of £141,510 to acknowledge the impact of the COVID-19 pandemic on parents. 18 **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** |||||**2020**|**2019**| |---|---|---|---|---|---| |||||**£**|**£**| |**7a**|**Finance costs**||||| ||Interest on bank loans|||33,086|41,836| ||Bank account service charges|||1,277|1,356| |||||----------------|----------------| |||||34,363|43,192| |||||========|========| |**7b**|**Governance costs included in support costs**||||| ||Remuneration to auditor for audit services|||13,390|11,710| ||Trustees’ training courses|||1,325|508| ||Trustees’ travel & subsistence|||2,569|3,284| ||Professional advice and other costs|||948|740| |||||----------------|----------------| |||||18,232|16,242| |||||========|========| ||**TOTAL EXPENDITURE (2019)**|**Staff Costs**|**Other**|**Depreciation**|**2019**| |||**£**|**£**|**£**|**£**| ||**Raising funds**||||| ||Finance costs (see below)|-|43,192|-|43,192| ||**Charitable Activities**||||| ||Teaching costs|1,813,406|314,319|-|2,127,725| ||Welfare costs|-|21,607|-|21,607| ||Premises costs|-|262,792|249,910|512,702| ||Support costs|343,103|162,321|-|505,424| ||Grants|-|529|-|529| |||----------------------|--------------------|-------------------|--------------------| |||2,156,509|761,568|249,910|3,167,987| |||----------------------|--------------------|-------------------|--------------------| |||2,156,509|804,760|249,910|3,211,179| |||===========|==========|=========|==========| |**8.**|**STAFF COSTS**|||**2020**|**2019**| |||||**£**|**£**| ||Salaries|||1,848,693|1,763,347| ||Social security costs|||187,245|166,451| ||Pension costs (note 16)|||322,812|226,711| |||||-------------------|-------------------| |||||2,358,750|2,156,509| |||||==========|==========| Aggregate employee benefits were paid to key management personnel during the year of £222,502 (2019: £210,789). The number of employees whose emoluments exceeded £60,000 for the year is as follows: |||**Number**|**Number**| |---|---|---|---| |£60,001|- £70,000|-|1| |£70,001|- £80,000|1|1| |£90,001|- £100,000|1|1| |||=======|=======| 19 **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ||||**2020**|**2019**| |---|---|---|---|---| ||||**Number**|**Number**| ||The average number of staff during the year was:|||| ||Teachers and assistants||43|42| ||Administration||9|8| ||||----------------|----------------| ||||52|50| ||||========|========| |**9.**|**TANGIBLE FIXED ASSETS**|**Freehold Land**|**Furniture &**|| |||**& Buildings**|**Equipment**|**Total**| |||**£**|**£**|**£**| ||**Cost or deemed cost**|||| ||At 1 September 2019|8,515,070|761,164|9,276,234| ||Additions|-|23,041|23,041| ||Disposals|-|(60,663)|(60,663)| |||------------------|-----------------|--------------------| ||At 31 August 2020|8,515,070|723,542|9,238,612| |||--------------------|-----------------|--------------------| ||**Depreciation**|||| ||At 1 September 2019|508,285|527,431|1,035,716| ||Charge for the year|123,301|120,393|243,694| ||Disposals||(60,663)|(60,663)| |||-----------------|-----------------|--------------------| ||At 31 August 2020|631,586|587,161|1,218,747| |||-----------------|-----------------|--------------------| ||**Net Book Value**|||| ||At 31 August 2020|7,883,484|136,381|8,019,865| |||===========|========|===========| ||At 31 August 2019|8,006,785|233,733|8,240,518| |||===========|=========|===========| The freehold land and buildings at 24/26 Cumberland Road, 30 Cumberland Road and at 59 Leyborne Park were revalued on 31 August 2014 by Gerald Eves Chartered Surveyors and Property Consultants. Valuation of 24/26 Cumberland Road and 59 Leyborne Park were on an open market existing use and valuation of 30 Cumberland Road was on the basis of educational use as part of the existing School. Value for the combined properties was £6,600,000. The historical cost of the freehold land and buildings as at 31 August 2020 was £6,053,948. |**10.**|**DEBTORS**|**2020**|**2019**| |---|---|---|---| |||**£**|**£**| ||Fees owing|860|200| ||Prepayments|40,918|39,640| ||Other debtors|9,683|248| |||-----------------|-----------------| |||51,461|40,088| |||========|========| |**11**|**CASH AND CASH EQUIVALENTS**||| |||**2020**|**2019**| |||**£**|**£**| ||Cash at bank|1,194,252|1,092,223| ||Overdraft|-|(425)| |||-----------------|-----------------| |||1,194,252|1,091,798| |||========|========| 20 ## **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** |**12.**|**CREDITORS: amounts falling due within one year**|**2020**|**2019**| |---|---|---|---| |||**£**|**£**| ||Bank overdraft and credit card|-|632| ||Bank loans (secured)|89,440|74,568| ||Trade creditors|52,580|103,064| ||Other taxes and social security costs|43,918|43,551| ||Deferred income|335,868|476,712| ||Accruals|49,215|30,366| ||Other creditors|43,805|32,534| ||Deposits|64,555|40,466| |||-------------------|-------------------| |||679,381|801,893| |||=========|=========| ||Deferred income relates to fees received in advance of the Autumn term||| ||**_Analysis of deferred income_**||| ||Deferred income at 1 September|476,712|403,202| ||Applied during the year|335,868|476,712| ||Released during the year|(476,712)|(403,202)| |||-------------------|-------------------| ||Deferred income at 31 August|335,868|476,712| |||=========|=========| |**13.**|**CREDITORS: amounts falling due after one year**|**2020**|**2019**| |||**£**|**£**| ||Bank loans (secured)|1,424,819|1,516,732| ||Deposits|479,394|491,904| |||--------------------|--------------------| |||1,904,213|2,008,636| |||=========|==========| ||**Bank loans maturity analysis**||| ||In less than one year|89,440|74,568| ||In more than one year but not more than two years|91,094|73,384| ||In more than two years but not more than five years|1,333,725|1,443,348| |||------------------|------------------| |||1,514,259|1,591,300| |||=========|==========| The bank loans and overdraft are secured on the company’s freehold land and buildings. A new loan of £1,805,000 taken with National Westminster Bank in October 2016 is repayable in 7 years and interest is charged at a floating rate of 1.8% over Base Rate. 21 **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ## **14. STATEMENT OF FUNDS** Unrestricted funds are the accumulation of surpluses, less deficits, on the income and expenditure account, together with the profits, less losses, on the sales of unrestricted fixed assets, bequests for the general purposes of the School and various grants towards fixed assets. |**Unrestricted funds**|**General**|**Revaluation**|**Total**| |---|---|---|---| ||**Fund**|**Reserve**|**2020**| ||**£**|**£**|**£**| |Balance at 1 September 2019|4,118,916|2,397,730|6,516,646| |Movement in funds for the year|162,799|(31,696)|131,103| |Transfer|95,088|(95,088)|-| ||---------------------|---------------------|--------------------| |Balance at 31 August 2020|4,376,803|2,270,946|6,647,749| ||===========|===========|==========| Fund transfer relates to the excess depreciation over historic cost which relates to revaluation which should have been charged to the revaluation reserve between 2017 and 2019. |**Unrestricted funds**|**General**|**Revaluation**|**Total**| |---|---|---|---| ||**Fund**|**Reserve**|**2019**| ||**£**|**£**|**£**| |Balance at 1 September 2018|3,872,332|2,397,730|6,270,062| |Movement in funds for the year|246,584|-|246,584| ||---------------------|---------------------|--------------------| |Balance at 31 August 2019|4,118,916|2,397,730|6,516,646| ||===========|===========|==========| The accumulated funds of the charity include restricted funds comprising of the following unexpended balances of grants, donations, gifts and legacies to be applied for specific purposes: |**Restricted funds**|**Balance at**|||**Balance at**| |---|---|---|---|---| ||**1 September**|||**31 August**| ||**2019**|**Income**|**Expenditure**|**2020**| ||**£**|**£**|**£**|**£**| |Kew College Friends|470|21,575|(21,575)|470| |Travel Plan|7,077|-|-|7,077| |Hardship fund|37,126|1,765|(12,428)|26,463| |Bursary fund|225|-|-|225| |EYFS|756|3,476|(4,232)|-| ||-----------------|-----------------|----------------|-----------------| ||45,654|26,816|(38,235)|34,235| ||========|=========|=========|========| 22 **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** |**Restricted funds**|**Balance at**|||**Balance at**| |---|---|---|---|---| ||**1 September**|||**31 August**| ||**2018**|**Income**|**Expenditure**|**2019**| ||**£**|**£**|**£**|**£**| |Kew College Friends|4,143|9,013|(12,686)|470| |Travel Plan|7,077|-|-|7,077| |Hardship fund|35,135|2,520|(529)|37,126| |Bursary fund|225|-|-|225| |EYFS|-|3,564|(2,808)|756| ||-----------------|-----------------|----------------|-----------------| ||46,580|15,097|(16,023)|45,654| ||========|=========|=========|========| The purposes of the restricted funds are as follows; ## **Kew College Friends** The restricted fund represents donations from Kew College Friends, an organisation run by parents of pupils at Kew College, to purchase specific equipment for the School. ## **Travel Plan** The restricted fund represents capital grants from London Borough of Richmond upon Thames for the construction of a shelter located outside the school and other capital spending to discourage car travel. ## **Donations – hardship fund** The Hardship fund represents donations for the establishment of a hardship fund. ## **EYFS** The restricted fund represents various funding from London Borough of Richmond upon Thames for expenditure on specific areas for the benefit of Early Years Foundation Stage children. |**15.**|**ANALYSIS OF NET ASSETS BETWEEN**|**FUNDS**|||| |---|---|---|---|---|---| |||**General**|**Revaluation**|**Restricted**|**Total**| |||**Fund**|**Reserve**|**Fund**|**Fund**| |||**£**|**£**|**£**|**£**| ||Tangible fixed assets|5,748,919|2,270,946|-|8,019,865| ||Net current liabilities|532,097|-|34,235|566,332| ||Creditors due after more than one year|(1,904,213)|-|-|(1,904,213)| |||----------------------|----------------------|-----------------|--------------------| ||Balance at 31 August 2020|4,376,803|2,270,946|34,235|6,681,984| |||===========|===========|========|==========| |||**General**|**Revaluation**|**Restricted**|**Total**| |||**Fund**|**Reserve**|**Fund**|**Fund**| |||**£**|**£**|**£**|**£**| ||Tangible fixed assets|5,842,788|2,397,730|-|8,240,518| ||Net current liabilities|284,764|-|45,654|330,418| ||Creditors due after more than one year|(2,008,636)|-|-|(2,008,636)| |||----------------------|----------------------|-----------------|--------------------| ||Balance at 31 August 2019|4,118,916|2,397,730|45,654|6,562,300| |||===========|===========|========|==========| 23 **KEW COLLEGE** **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ## **16. PENSION COSTS** The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £252,307 ( _2019: £179,088_ ) and at the year-end £28,815 ( _2019 - £22,971_ ) was accrued in respect of contributions to this scheme. The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%. The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions. On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020 . The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021. In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation. Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements The School operates a pension scheme for non-teaching staff which is a defined contribution scheme with employees contributing a minimum of 3% and the School 5% and up to 8% of matched funding (2019: 0% and 5% respectively). The total contributions payable by the School in the year were £70,505 (2019: £47,623). As at 31 August 2020 amounts totalling £11,827 (2019: £8,088) were due to the Scheme and are included within other creditors. 24 **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ||**2020**|**2019**| |---|---|---| ||**£**|**£**| |**The pension charge in these accounts represents:**||| |Contributions to teachers’ superannuation scheme|252,307|179,088| |Contributions to stakeholders pension schemes|70,505|47,623| ||------------------|-------------------| ||322,812|226,711| ||=========|=========| ## **17. RELATED PARTY TRANSACTIONS** Neither the Trustees nor any other persons connected with them received any remuneration, benefits in kind from the School during the year (2019: £nil). During the year under review, one trustee received reimbursement of expenses for travel and accommodation to the sum of £2,569 (2019: £3,284 – two trustees). No governors have children at the School. There were no other related party transactions. ## **18. CAPITAL COMMITMENT** At 31 August 2020 capital commitments were nil (2019: £nil). 25 **KEW COLLEGE** ## **NOTES TO THE FINANCIAL STATEMENTS (continued)** ## **FOR THE YEAR ENDED 31 AUGUST 2020** ## **19. COMPARATIVE STATEMEENT OF FINANCIAL ACTIVITIES (2019)** |||**Unrestricted**|**Restricted**|**Total**| |---|---|---|---|---| |||**Funds**|**Funds**|**Funds**| |||**2019**|**2019**|**2019**| ||**Notes**|**£**|**£**|**£**| |**INCOME FROM:**||||| |**Charitable Activities**||||| |School fees receivable|4|3,341,983|-|3,341,983| |Other educational income|5|96,902|3,564|100,466| |**Investment income**||2,855|-|2,855| |**Donations**|6|-|11,533|11,533| |||----------------------|-----------------|---------------------| |**TOTAL INCOME**||3,441,740|15,097|3,456,837| |||----------------------|-----------------|---------------------| |**EXPENDITURE ON:**||||| |**Raising funds**||43,192|-|43,192| |**Charitable activities**||3,151,964|16,023|3,167,987| |||---------------------|---------------|---------------------| |**TOTAL EXPENDITURE**|7|3,195,156|16,023|3,211,179| |||---------------------|---------------|---------------------| |**NET INCOME**||246,584|(926)|245,658| |||---------------------|---------------|---------------------| |**Net movement in funds**||246,584|(926)|245,658| |Balance brought forward|14|6,270,062|46,580|6,316,642| |||---------------------|-----------------|------------------------| |**BALANCE CARRIED FORWARD**|14|6,516,646|45,654|6,562,300| |||==========|=========|===========| 26