2021-08-31-accounts - The Harrow Development Trust

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THE HARROW DEVELOPMENT TRUST CHARITY NUMBER: 296097

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2021

THE HARROW DEVELOPMENT TRUST

CONTENTS

Page Charity Information Report of the Trustees 3 - 7 Statement of Trustees’ Responsibilities Report of the Independent Auditor 9 - 11 Statement of Financial Activities 12 Balance Sheet 13 Statement of Cash Flows 14 Accounting Policies 15 - 16 Notes to the Financial Statements 17 - 24

THE HARROW DEVELOPMENT TRUST

CHARITY INFORMATION

Board of Trustees	J P J Glover (Chairman)
	J P Batting
	M S Brounger
	M K Fosh
	A D Hart
	S N K Hirdaramani
	P T Wong
Chief Executive	D L Collins
Registered Address	5A High Street
	Harrow on the Hill
	Middlesex HA1 3HP
Charity Registration Number	296097
Bankers	National Westminster Bank plc
	315 Station Road
	Harrow
	Middlesex HA1 2AD
Auditors	PKF Littlejohn LLP
	Statutory Auditor
	15 Westferry Circus
	Canary Wharf
	London E14 4HD
Solicitors	Cripps Pemberton Greenish
	2ndFloor
	80 Victoria Street
	London SW1E 5JL
Investment Broker	Cazenove Capital Management
and Manager	1 London Wall Place
	London EC2Y 5AU

REPORT OF THE TRUSTEES

THE HARROW DEVELOPMENT TRUST

Introduction

The Trustees submit the Report of the Trustees and Financial Statements of The Harrow Development Trust (the Trust) for the year ended 31 August 2021. The financial statements have been prepared in accordance with the accounting policies set out on pages 15 to 16 and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (‘SORP’) applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102 (‘FRS 102’) applicable in the UK and Republic of Ireland, effective 1 January 2019.

In accordance with the provisions of the SORP, the Trust is treated as a subsidiary charity of the Keepers and Governors of the Possessions Revenues and Goods of the Free Grammar School of John Lyon (The Corporation) which comprises Harrow School and The John Lyon School. The Charity is registered with the Charity Commissioners, number 296097.

Structure, Governance and Management

The Trustees of the Trust are appointed by reference to legislation under the Trustee Acts. There is no limit on the number of Trustees of the Trust. New Trustees are appointed upon the recommendation and with the agreement of all the other Trustees. The Clerk to the Governors of the Corporation is responsible for the induction of new Trustees who are briefed individually both by the Clerk to the Governors and the Chief Executive of the Trust. The selection of new Trustees is made after consideration of the skills and experience that is considered desirable to be represented by the Trustees of the Trust. Guidelines on effective trusteeship and updates about best practice are brought to the attention of the Trustees by the Clerk to the Governors of the Corporation.

The Trustees who served during the year and up to the date of this report are shown on page 2.

The work of the Trust is managed by the Chief Executive who is appointed by the Trustees with the approval of the Governors of the Corporation. His responsibility is to implement the aims and objectives of the Trust as determined by the Trustees.

Trustees are not remunerated, and the staff recharged from the Corporation are remunerated in line with the policy that is set out in the Report of the Governors’ of the employer. The Corporation’s Remuneration Committee in conjunction with the Trustees of the Trust considers the remuneration of the Chief Executive of the Trust. In doing so, the Committee draws on data produced by independent and anonymous benchmarking surveys of equivalent positions in broadly comparable schools.

Objects and Activities

In setting the objectives and planning the activities of the Trust, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular its supplementary guidance on the advancement of education.

The objects of the Trust are widely drawn to include the advancement of the education of pupils at Harrow School and such other charitable purposes as the Trustees may declare. Therefore, the Trust assists in supplying topquality education in Harrow School, increasing the public benefit which the School can provide in its local communities and in broadening access to the School for pupils from a wide range of economic and social backgrounds.

The Trustees continued to support a charitable fund as part of the Trust’s activities, which was constituted in 2005 to provide relief to people in countries affected by the Tsunami disaster in Asia in late December 2004.

REPORT OF THE TRUSTEES

THE HARROW DEVELOPMENT TRUST

Achievements and Performance

The Chief Executive continued to carry out an established fundraising plan with both short and long-term objectives. An important element of this is supporting the School’s ongoing programme of capital and renovation projects, as well as the further progress of Plan 450 (previously Master Plan), of the Harrow School’s development, and expansion of bursary funding.

Funds transferred by the Trust to Harrow School have enabled the School to increase the investment it has made in capital projects as well as provide funding for bursaries awarded to talented pupils from families less able to afford Harrow School’s fees and for other priorities. These include:

Support generally for the School’s capital and renovation programme;
Contributing to the Harrow School strategic plan, Plan 450, through the provision of funding for capital projects;
Providing bursaries and scholarships including, especially, help for pupils from less advantaged backgrounds;
Improvements to the Boarding Houses;
Rebuilding many areas and improving games facilities. Many pupils from local schools in the Borough of Harrow share these facilities;
Providing funds for teaching, academic projects, and pupil tours overseas (which were limited over the pandemic period) of educational benefit; and
Contributing to projects in the local community (especially during the pandemic in 2020-21) and selection of pupils locally to join Harrow.

These achievements fulfilled the Trustees’ ambitions which included raising funds for the School’s priorities including:

Capital Projects;
Bursaries and Scholarships;
Learning and Innovation;
Heritage;
Outreach and Partnership; and
Supporting the Harrow Community in dealing with the impact of the Covid-19 pandemic.

Highlights of the year were:

The provision of funds for bursaries and scholarships to increase substantially the support that the School can offer, with £2.8m raised for this purpose;
The Trust established Churchill Places, a new bursary scheme for boys demonstrating the characteristics of tenacity, leadership and determination. The first two such pupils were appointed in September 2020;
The Trust launched the Harrow 450 fundraising initiative to a wide audience within the Harrovian community and coinciding with the School’s 450[th] anniversary in 2022;
The Trust, also introduced the 450 Society as a way of recognising contributors for their support;
During the year, the Trust mounted successful fundraising and income rose by 39% over the previous year;
It also continued to provide support to organisations in the local community which were severely affected by Covid-19;
In addition, the Trust raised funds to provide hardship awards to assist parents suffering financial difficulties owing to Covid-19;
Construction of the School’s major new science building as well as substantial reconstruction of the School’s dining hall commenced in 2021. Both projects, which have involved substantial fundraising, are due to complete in 2023;
Two telephone fundraising exercises were held which raised a total of £783.4k from 241 donors;
The continuing redevelopment of boarding houses, including the major refurbishment of The Grove, Druries, as well as smaller projects in other houses;
Raising funds for the renovation of the School’s original building, Old Schools, and the implementation of a new Teaching, Learning and Artificial Intelligence hub;
Continuing sponsorship of a lecture series by distinguished academics which are shared with other schools locally;
Providing funding for the appointment of part-time visiting professionals in Music, Art and Drama and, in addition, support for mental health provision, and the funding of the School’s US College advisor;
Providing sponsorship for overseas tours by many pupils (albeit these were curtailed due to the pandemic);
• Promoting and administering the donations for the Long Ducker charity activities and chairing the School’s Charity Committee which oversees the School’s and pupils’ involvement in many projects for the benefit of local schools, partners and the community; and
In addition, interest continues to be shown towards Tsunami relief projects in Sri Lanka from the charitable fund established at the beginning of 2005 for this purpose.

REPORT OF THE TRUSTEES

THE HARROW DEVELOPMENT TRUST

Achievements and Performance (continued)

Funds are now being accumulated to build up investment in major areas in particular:

Greatly increasing bursary funding and therefore awards to broaden access for top quality pupils into Harrow School, at the rate of at least £2 million per annum with particular focus on fixed term awards and the Churchill Places bursary scheme where the target for funds raised is £10 million over 5 years.
Widening of access to the School reflecting the change in the School’s approach to bursary awards which is intended to transform the lives of pupils selected.
Providing the optimum environment for Harrow School which includes modernising and enhancing the School estate, improving the surroundings in which Harrovian pupils live, and extending opportunities for pupils both to learn and develop their personalities and to attract the best quality teaching staff.
In particular, raising funds to support the significant plan for the School, Plan 450. This plan requires substantial investment in the new science centre, dining hall, sports hall, cognitive studies and artificial intelligence, and landscaping environment.

The Trust continues to promote the need to increase funds substantially for scholarships and bursaries. Through appropriations supplied by the Trust, Harrow School can increase the funding it offers for scholarships and bursaries to pupils whose families could not otherwise afford this education. The Trust manages a portfolio which supplies means-tested awards to boys of significant ability. Through this scheme it is possible for pupils to be awarded up to 100% of fees. A substantial number of other donations for scholarships are also made direct to the Trust to fund pupils with outstanding sporting or academic talent.

Further reports on the work, plans and achievements of the Trust are available in publications such as the Harrow Record and also the Trust’s own annual report, Silver Arrow obtainable on request from the Trust. Details are also available on the Trust’s website https://www.harrowschool.org.uk/supportharrow.

The Trust’s activities continued at a similar level in pursuit of its funding objectives. The Trust continued to work closely with the Board of the Harrow Association and with other volunteer supporters interested in helping achieve its objectives.

The ongoing fundraising programme under the primary ambit of Plan 450 and Bursary programme included the following activities:

A number of events and meetings were held at which the Trust’s development activities were brought to the attention of potential supporters, often online, as meetings in person became more limited as a result of Covid-19;
Owing to the Covid-19 pandemic, it was not possible to undertake any overseas visits. In their place, a number of online meetings and group receptions were held to publicise the fundraising efforts of the Trust;
• Further efforts to promote legacy giving by Old Harrovians and pointing out the benefits of making bequests in favour of the School; and
The Trust continued to follow the Government’s and Charity Commission’s guidelines concerning working safely as a result of the pandemic. These included holding meetings (including those with Trustees) online and arranging for staff seconded to the Trust by The Corporation to work effectively from home.

The Trustees wish to thank all those donors who generously made contributions during the course of the year especially during the challenging times of 2020-21. They were pleased to engage with a large number of these donors, often online. Ways in which the generosity of donors was recognised both by Harrow School and the Trust this year include the publication and recognition of donor’s names in the Trust’s publications, as well as continuing a programme to plant trees on the School grounds in appreciation of donors who leave a bequest to Harrow School after their demise.

REPORT OF THE TRUSTEES

THE HARROW DEVELOPMENT TRUST

Financial Review

A total of £10,116,766 was received or receivable in the year from gifts, donations, and other income, compared with a total of £7,296,801 in the previous year. The total appropriations for the benefit of Harrow School were £9,293,579 (2019/20 - £6,950,000).

Over the financial year, investments had a realised gain of £23,039 (2019/20 – loss of £93,501) on the sale of certain investments and an unrealised gain of £135,061 at the end of the year (2019/20 – gain of £87,567). This was in line with movement on the Stock Market.

Plans for Future Periods

As part of Plan 450 and the Trust’s other core objectives, plans include:

To build on the now well-established long-term fundraising process;
To fund developments and projects to agreed financial targets in keeping with the wide-ranging objectives of the Trust;
To continue to work closely with the Harrow Association in furthering the interests of the Trust;
To keep the cost base of the Trust under review in order to maximise its available net income; and
To work with the Head Master of Harrow School in support of his vision and the Governors’ strategy for the further development of the School.

Connected Organisations

Four of the current Trustees of the Trust are also Keepers and Governors of The Corporation for which the Trust raises funds.

Reserves

Note 13 to the Financial Statements shows the assets attributable to the unrestricted or free funds of the Trust. The balance held as unrestricted funds at 31 August 2021 was £76,653 all of which was free reserves. The Trust is a fundraising charity which only distributes donations and legacies received when there is a sufficient surplus. The Trustees therefore aim to maintain free reserves at a level which equates to approximately two months of unrestricted charitable expenditure. The balance of £76,653 is sufficient to cover an average two month spend of £75,000 to £100,000.

Fundraising Activities

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities.

In relation to the above, we confirm that all solicitations are managed internally, without involvement of professional fund-raisers, or third parties, but sometimes with the assistance of fundraising consultants. The day to day management of all income generation is delegated to the key management personnel, who are accountable to the Trustees.

We have received no complaints in relation to solicitations. Our terms of employment require staff to behave reasonably at all times; all major fundraising activities are approved at a senior level before they are undertaken and are conducted under procedures and protocols formulated and agreed by the Trustees. We therefore do not consider it necessary to design additional procedures to monitor such activities. The Trust is registered with the Fundraising Regulator and is committed to the standards set by the Code of Fundraising Practice.

Investment Policy

The management of the investment portfolio, donated to the Trust in 2001/02 by The Peter Beckwith Harrow Trust, is supervised by the Investments Committee of The Corporation. The Chairman of this Committee is a Governor of the Corporation. The investment portfolio is managed on a day to day basis by the fund managers, Cazenove Capital Management, in accordance with the policies and strategies recommended by the Committee.

REPORT OF THE TRUSTEES

THE HARROW DEVELOPMENT TRUST

Risk Management

The Trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks.

The Harrow Development Trust’s principal activity is the raising of funds for Harrow School. The main risk to the Trust is a failure to meet the fundraising objectives set by the School. The Trustees consult with the Governors of the Corporation on funds raised, together with future commitments and pledges by donors, on a regular basis.

Other risks, having regard to the fundraising activities of the Trust, relate to compliance with applicable regulations. The Trustees have implemented appropriate systems and controls to ensure that regulations are adhered to.

In the opinion of the Trustees, the Trust has established an effective annual review system and has allocated sufficient resources to ensure, within a reasonable time frame, that those risks identified have been mitigated to a level acceptable for the Trust’s day to day operations.

Relevant Audit Information

The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are individually aware, there is no relevant audit information of which the Trust’s auditors are unaware and each Trustee has taken all reasonable steps that he ought to have taken as a Trustee to make himself aware of any relevant audit information and to establish that the Trust’s auditors are aware of that information.

Charities Act 2011 and Public Benefit

Under Section 17(5) of the Charities Act 2011, the Trustees are required to ensure that the Charity’s objects and aims are for the public benefit. The Trustees confirm that they have referred to the general guidance “Charities and Public Benefit” issued by the Charity Commission and additionally “The Advancement of Education for the Public Benefit” when reviewing the Trust’s objects and activities and plans for future fund raising.

Auditor

A resolution proposing that PKF Littlejohn LLP be reappointed as auditor of the Trust will be put to a meeting of the Trustees.

By Order of the Board of Trustees

J P J Glover

2022

THE HARROW DEVELOPMENT TRUST

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS102 The Financial Reporting Standard applicable in the United Kingdom and Ireland.

The law applicable to charities in England and Wales requires the Trustees to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust during the year and of its financial position at the end of the year.

In preparing these Financial Statements the Trustees are required to:

select suitable Accounting Policies and then apply them consistently;
observe the methods and principles of the Charities’ SORP;
make judgments and estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the Financial Statements; and
prepare the Financial Statements on the going concern basis unless it is inappropriate to assume that the Trust will continue in operation.

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

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE HARROW DEVELOPMENT TRUST

Opinion

We have audited the financial statements of The Harrow Development Trust (the ‘charity’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity’s affairs as at 31 August 2021, and of its incoming resources and application of resources, including its 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 Charities Act 2011.

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of 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 conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going 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 other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Report of the Trustees. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE HARROW DEVELOPMENT TRUST

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

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:

We obtained an understanding of the charity and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, sector research and application of cumulative audit knowledge and experience.
We determined the principal laws and regulations relevant to the charity in this regard to be those arising from the Charities Act 2011, Charities (Accounts and Reports) Regulations 2008, Financial Reporting Standard 102, the Charities SORP and relevant employee legislation.
We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the group and parent charitable company with those laws and regulations. These procedures included, but were not limited to enquiries of management, review of minutes and review of legal and regulatory correspondence.
We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that there was a potential for management bias in the timing of recognition of income from donations and legacies. We addressed this through review of all written agreements to ensure correct treatment under the Charities SORP, including consideration of the accounting period in which income should be recognised. We also reviewed all legacy correspondence and receipts up to the date of approval of the financial statements, to ensure correct treatment under the Charities SORP, including consideration of the accounting period in which income should be recognised.
As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE HARROW DEVELOPMENT TRUST

Use of our report

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

PKF Littlejohn LLP 15 Westferry Circus Statutory Auditor Canary Wharf London E14 4HD

Date:

PKF Littlejohn LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006

THE HARROW DEVELOPMENT TRUST			STATEMENT OF	FINANCIAL	ACTIVITIES
			Year ended 31 August 2021
		Unrestricted	Restricted	Total	Total
	Note	funds	funds	2020/2021	2019/2020
Income from:		£	£	£	£
Donations and legacies	1
To the Trust		6,214,390	3,086,733	9,301,123	6,815,579
Gift aid		624,495	143,148	767,643	444,463
Tsunami relief fund		-	48,000	48,000	26,225
		___	__	___	__
		6,838,885	3,277,881	10,116,766	7,286,267
Investment income and interest	2	-	-	-	10,534
		___	__	___	__
Total incoming resources		6,838,885	3,277,881	10,116,766	7,296,801
		___	__	___	__
Expenditure on:
Raising funds	3	837,539	179,479	1,017,018	904,099
Charitable activities:
Appropriations for the benefit of
Harrow School	4	6,059,685	3,233,894	9,293,579	6,950,000
Tsunami relief fund		-	60,000	60,000	11,225
Other costs	6	13,943	2,977	16,920	15,170
		__	__	__	__
Total resources expended		6,911,167	3,476,350	10,387,517	7,880,494
		__	__	__	__
Net gain/(loss) on investments	8	-	158,100	158,100	(5,934)
		__	__	__	__
Net (outgoing)/incoming resources		(72,282)	(40,369)	(112,651)	(589,627)
Balances at beginning of year		148,935	654,539	803,474	1,393,101
		__	___	___	__
Balances at end of year	13	£76,653	£614,170	£690,823	£803,474
		__	___	___	__

All of the activities of the Trust are continuing. The Trust has no gains or losses that are not shown above. The Accounting Policies and Notes on pages 15 to 24 form part of these Financial Statements.

BALANCE SHEET As at 31 August 2021

THE HARROW DEVELOPMENT TRUST

		2020/2021	2019/2020
Fixed Assets
Tangible fixed assets	7	-	-
Investments	8	1,001,954	1,034,520
		___	__
		1,001,954	1,034,520
Current Assets
Stock		3,000	3,000
Debtors and prepayments	9	921,410	268,182
Cash		84,226	30,740
		_	_
		1,008,636	301,922
Creditors:amounts falling due within one year	10	(748,346)	(282,968)
		_	_
Net current assets		260,290	18,954
		___	__
Total Assets less Current Liabilities		1,262,244	1,053,474
Creditors: Amounts falling due
after one year	11	(571,421)	(250,000)
		___	__
Net Assets		690,823	803,474

		___	__
Represented by:
Unrestricted fund	13	76,653	148,935
Restricted funds	13	614,170	654,539
		___	__
		£690,823	£803,474

		___	__
Approved by the Trustees on	2022 and signed on their behalf by:

J P J Glover

A D Hart

) ) ) Trustees ) )

The Accounting Policies and Notes on pages 15 to 24 form part of these Financial Statements.

THE HARROW DEVELOPMENT TRUST

STATEMENT OF CASH FLOWS Year ended 31 August 2021

	Note		2020/2021		2019/2020
Net cash outflow from
operating activities	15		(137,180)		(192,270)
Cash flows from investing activities
Listed investment income		-		10,534
Net disposal of investments		190,666		194,803
		_		_
Net cash inflow from investing activities			190,666		205,337
			_		_
Net cash inflow for the year			53,486		13,067
			_		_
Cash and cash equivalents brought forward			30,740		17,673
Increase in cash in the year			53,486		13,067
			_		_
Cash and cash equivalents carried forward	16		£84,226		£30,740
			_		_

The Accounting Policies and Notes on pages 15 to 24 form part of these Financial Statements.

ACCOUNTING POLICIES Year ended 31 August 2021

THE HARROW DEVELOPMENT TRUST

Basis of preparation and assessment of going concern

Harrow Development Trust is an unincorporated charitable trust in the United Kingdom. Charity information is set out on page 2. The Trust constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared under the historical cost accounting basis, except investments held as fixed assets carried at market value. The Financial Statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the 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) as applicable from 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has been withdrawn.

Despite the impact of the Coronavirus pandemic, Harrow Development Trust has and is expected to maintain a substantial level of income. As a result, the Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. The most significant area of uncertainty that affects the carrying value of assets held by the Trust is the performance of investment markets.

Incoming resources

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

Income from donations is generally recognised on receipt, unless there are conditions attached to the donation that require a level of performance before entitlement can be obtained. In this case income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. Gift aid on donations is accounted for when the related donation is received.

Legacy income is recognised when the charity is aware that probate has been granted, there are sufficient assets in the estate to pay the legacy and that any conditions attached to the legacy are either in control of the charity or have already been met. On occasion, legacies will be notified where it is not possible to measure the amount expected to be distributed with sufficient reliability. On these occasions, the legacy is treated as a contingent asset and, if material, disclosed. Where a legacy is subject to the interest of a life tenant, the legacy is not recognised as income until the death of the life tenant.

Assets donated to the Trust are shown as a donation at market value upon receipt.

Investment income is primarily earned through holding shares for investment purposes. It includes dividends and interest, and is recognised when received.

Resources expended

All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Costs of raising funds includes the cost of all fundraising activities and events and investment managements costs;
Expenditure on charitable activities includes transfers to Harrow School and other charities which further the charitable aims of the charity; and
Other costs which consist of the audit fee.

Unless gifts are for a specific purpose, costs are allocated between restricted and unrestricted income on the basis of income received.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

ACCOUNTING POLICIES

Year ended 31 August 2021

THE HARROW DEVELOPMENT TRUST

Unrestricted Fund

Income for which no specific purpose is identified by the donor is credited to the Unrestricted Fund.

Restricted Funds

Income where a specific purpose is identified by the donor is credited to Restricted Funds.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on tangible fixed assets at rates calculated to write off the cost, less anticipated residual value, of each asset over its expected useful life. The expected useful lives of the categories are:

Computer equipment and office furniture - 4 years Contact database - 10 years

Fixed Asset Investments

Fixed asset investments are shown at the bid price at the year-end. Realised and unrealised gains and losses on the sale or revaluation of investments are accounted for in the Restricted Fund on the Statement of Financial Activities (SOFA).

Stocks

Stocks are valued at the lower of cost and net realisable value.

Taxation

The Trust is a registered charity and is not liable to Income Tax or Corporation Tax on income derived from its charitable activities. Income derived from non-charitable activities may be subject to taxation. The Trust is not registered for VAT. All amounts in the financial statements are shown inclusive of irrecoverable VAT, where relevant.

Loans

The loans are “other loans” i.e. non-basic financial instruments under FRS 102 which are recognised at “Fair Value” at the year end .

Pension Contributions

Defined contribution scheme

The pension cost charged to the SOFA represents the contributions payable by the Trust under the rules of the Scheme.

Defined benefit scheme

The Trust also participates in a defined benefit pension scheme for non-teaching staff that has been closed to new entrants. The funds of the Scheme, which are separate from those of the Trust, are administered by a separate Board of Trustees. An independent actuary completes a valuation every three years and, based on the actuary’s recommendations, annual contributions are paid to the Scheme so as to secure the benefits set out in the rules. The Scheme is recognised in the employer, the Corporation.

Foreign Currencies

Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the Balance Sheet date. All differences are taken to the SOFA.

THE HARROW DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021

1. Donations and Legacies

Donations include a broad range of donations, including gift aided donations, legacies, gifts from overseas and amounts received from grant making trusts.

2.	Investment Income and interest			Total	Total
				2020/2021	2019/2020
	Managed Unit Trusts			-	£10,534

				______	______
3.	Raising funds	Unrestricted	Restricted	Total	Total
				2020/2021	2019/2020
	Salaries	690,122	147,340	837,462	755,955
	Other operational costs	147,417	32,139	179,556	148,144
		_	______	_	_
		£837,539	£179,479	£1,017,018	£904,099
		_	______	_	_

Included in restricted other operational costs is £666 (2019: £2,228) which is the Investment Fund Manager’s fees.

4. Appropriations for the benefit of Harrow School

Unrestricted General fund 6,059,685 Scholarships - Peter Beckwith - - Other - __ £6,059,685	Restricted 552,753 190,000 2,491,141 ___ £3,233,894	Total Total 2020/2021 2019/2020 6,612,438 4,494,416 190,000 203,109 2,491,141 2,252,475 ___ __ £9,293,579 £6,950,000

The costs of Peter Beckwith scholarships were met from income arising on the related investment portfolio together with a cash withdrawal of £190,000 (2019/20 - £190,000) from the portfolio sufficient to meet all disbursements.

THE HARROW DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021

Employees of the Corporation, Trustees and Key Management	2020/2021	2019/2020
Staff Costs recharged
Wages and salaries	709,239	642,935
Social security costs	88,224	79,560
Pension and life assurance costs:
- Harrow School Support Staff Pension Scheme	17,317	12,200
- Harrow Corporation Pension Scheme	22,682	21,260
	_	_
	£837,462	£755,955

	_	_
Average number of employees during the year	No.	No.
Fundraisers and Administration	7	6
	___	___

Staff costs represent the costs of individuals employed by the Corporation to work on the Trust’s activities.

The number of employees whose remuneration exceeded £60,000 was:

	2020/2021	2019/2020
£ 80,001 - £ 90,000	1	1
£120,001 - £130,000	1	1
£280,001 - £290,000	-	1
£310,001 - £320,000	1	-
	___	___

Pension contributions of £10,972 (2019/20 - £10,863) were made for two (2019/20 - two) higher paid employees during the year.

The Trustees neither received nor waived any remuneration during the year. The Trustees did not have any expenses reimbursed or paid directly on their behalf during the year.

Compensation payable to key management personnel during the year was £588,827 (2019/20 - £563,230).

Other costs	Unrestricted	Restricted	Total	Total
			2020/2021	2019/2020
Professional fees - audit	£13,943	£2,977	£16,920	£15,170
	_	______	_	______

THE HARROW DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021

7. Tangible Fixed Assets

7.	Tangible Fixed Assets
	Office equipment and Contact Database
	Cost		Total
	At beginning of the year		47,786
	Additions		-
	Disposals		-
			______
	At end of the year		47,786
			______
	Depreciation
	At beginning of the year		47,786
	Charge for the year		-
	Disposals		-
			______
	At end of the year		47,786
			______
	Net Book Value
	At 31 August 2021		£ -

			______
	At 31 August 2020		£ -

			______
8.	Fixed Assets – Investments	2021	2020
	Balance at beginning of the year	1,034,520	1,235,257
	Acquisitions during the year	-	1,270,154
	Disposal proceeds	(190,000)	(1,460,869)
	Realised gains/(losses) on investments	23,039	(93,501)
	Unrealised gains on investments	135,061	87,567
	Stockbroker’s cash movement	(666)	(4,088)
		__	__
	Balance at end of the year	£1,001,954	£1,034,520
		__	__
	Represented by:
	Investments at market value	1,001,926	1,033,857
	Cash with stockbrokers	28	663
		__	__
		£1,001,954	£1,034,520
		__	__

Significant Holdings

At 31 August 2021, the following investments were considered material in the context of the investment portfolio:

Cazenove Charity Multi-Asset Fund – 100%

The cost of investments at the year-end was £845,221 (2019/20 - £964,133).

THE HARROW DEVELOPMENT TRUST	NOTES TO THE FINANCIAL STATEMENTS	NOTES TO THE FINANCIAL STATEMENTS
	Year ended 31	August 2021
9.Debtors	2021	2020
Due from Harrow School	821,421	250,000
Other debtors	9,681	2,710
Income Tax recoverable	58,386	13,389
Prepayments and accrued Income	31,922	2,083
	__	_
	£921,410	£268,182
	__	_

Included within debtors is an amount of £571,421 due in more than one year.

10.Creditors: amounts falling due within one year Due to Harrow School Accruals and deferred income Loan Other creditors	2021 2020 49,228 53,956 420,724 227,900 250,000 - 28,394 1,112 _ _ £748,346 £282,968

Included within creditors is deferred income of £120,600 which will be released to the SOFA in the year ended 31 August 2022.

11.Creditors: amounts falling due after one year	2021	2020
Loans	£571,421	£250,000

	_	_
The loans are unsecured, interest free and repayable as follows:
Less than one year	£250,000	-
1 – 2 years	-	£250,000
2 – 5 years	£571,421	-
>5 years	-	-

12. Capital Commitments

At 31 August 2021 and 31 August 2020 there were no contracted capital works not provided for in these Financial Statements.

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021

THE HARROW DEVELOPMENT TRUST

13. Allocation of the Trust’s Net Assets

The net assets at 31 August 2021 are held for the restricted and unrestricted funds as follows:

Fixed Assets Restricted funds: Tsunami - Other 1,001,954 _ 1,001,954 Unrestricted funds - _ £1,001,954	Net Current Assets 67 183,570 _ 183,637 76,653 _ £260,290	Long Term Creditor - (571,421) _ (571,421) - _ £(571,421)	Total 67 614,103 _ 614,170 76,653 _ £690,823

Other restricted funds of £614,103 relate mainly to scholarship funds retained by the Trust after deducting the loans which are for restricted purposes.

The net assets at 31 August 2020 are held for the restricted and unrestricted funds as follows:

Fixed Assets Restricted funds: Tsunami - Other 1,034,520 _ 1,034,520 Unrestricted funds - _ £1,034,520	Net Current Assets 12,149 (142,130) _ (129,981) 148,935 _ £18,954	Long Term Creditor - (250,000) _ (250,000) - _ £(250,000)	Total 12,149 642,390 _ 654,539 148,935 _ £803,474

Other restricted funds of £642,390 relate mainly to scholarship funds retained by the Trust after deducting the long term loan which is for restricted purposes.

THE HARROW DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021

14. Pension Scheme

The Corporation, as employer makes available two pension schemes:

a. Harrow School Support Staff Pension Scheme

A defined benefit scheme for eligible non-teaching staff, who are all employed by The Corporation but work on the activities of either Harrow School, The John Lyon School, Harrow School Enterprises Limited, The Harrow Development Trust and the Harrow Association, provides benefits based on final pensionable pay. Salary and related costs, including pension costs, are allocated to the relevant schools or entities.

The pension contributions for the year charged to the Trust were £17,317 (2019/20 - £12,200).

A full description of the Scheme is included in the Financial Statements of the employer undertaking, The Corporation.

b. Harrow Corporation Pension Scheme

A defined contribution scheme known as the Harrow Corporation Pension Scheme for eligible employees. The contributions to this scheme for the year were £22,682 (2019/20 - £21,260).

15.Cash Flow from Operating Activities Net (outgoing)/incoming resources Decrease/(Increase) in debtors (Decrease)/Increase in creditors Investment income and interest (Gains)/Losses on revaluation of investments Losses/(Gains) on disposal of investments Net cash outflow from operating activities	2020/21 (112,651) (653,228) 786,799 - (23,039) (135,061) _ (137,180)	2019/20 (589,627) 448,503 (46,546) (10,534) (87,567) 93,501 _ (192,270)

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021

THE HARROW DEVELOPMENT TRUST

16. Analysis of Net Funds

At 1 September 2020 Cash in hand, at bank 30,740 _ £30,740	At Cash 31 August flows 2021 53,486 84,226 _ _ £53,486 £84,226

17. Status of the Charity

The Harrow Development Trust is treated as a subsidiary charity of the Keepers and Governors of The Free Grammar School of John Lyon (The Corporation, charity number 310033). Copies of the financial statements of the Corporation are filed with the Charity Commission. The Trust has taken exemption, under FRS 102 from disclosing transactions with The Corporation.

18. Related Party Transactions

Other than transactions with key management personnel, there have been no other related party transactions in the year which require disclosure.

19. Contingent Asset

During the year to 31 August 2020 the Trust received a property as a legacy, which is subject to the interest of a life tenant. In line with the Charities SORP, where a legacy is subject to the interest of a life tenant, the legacy is not recognised as income until the death of the life tenant. The market value of the property at 31 August 2021 is estimated to be in the region of £675,000.

THE HARROW DEVELOPMENT TRUST

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 August 2021

20. Statement of Financial Activities for the year ended 31 August 2020

Unrestricted funds Income from: Donations and legacies 1 To the Trust 4,377,589 Gift aid 222,136 Tsunami relief fund - _ 4,599,725 Investment income and interest 2 - _ Total incoming resources 4,599,725 _ Expenditure on: Raising funds 3 660,783 Charitable activities: Appropriations for the benefit of Harrow School 4 3,956,954 Tsunami relief fund - Other costs 6 11, 15 4,055 _ Total resources expended 4,628,852 _____ Net (loss)/gain on investments 8 - _ Net (outgoing)/incoming resources (29,127) Balances at beginning of year 178,062 _ Balances at end of year 13, 20 £148,935	Restricted funds 2,437,990 222,327 26,225 _ 2,686,542 10,534 _ 2,697,076 _ 243,316 2,993,046 11,225 15,170 _ 3,251,642 _ (5,934) _ (560,500) 1,215,039 ___ £654,539	Total 2019/2020 6,815,579 444,463 26,225 _ 7,286,267 10,534 _ 7,296,801 _ 904,099 6,950,000 11,225 18,011 _ 7,880,494 _____ (5,934) __ (589,627) 1,393,101 ___ £803,474