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2020-08-31-accounts

Charity number: 306716

THE MOUNT KELLY FOUNDATION

TRUSTEE'S REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

THE MOUNT KELLY FOUNDATION

CONTENTS

Page
Reference and administrative details of the Charity, its Trustee and advisers 1 - 2
Trustee's report 3
Independent auditors' report on the financial statements 15 - 17
Consolidated statement of financial activities 18
Consolidated balance sheet 19
Charity balance sheet 20
Consolidated statement of cash flows 21
Notes to the financial statements 22 - 40

THE MOUNT KELLY FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

The sole Trustee of the Charity is Mount Kelly Foundation Governors, a company registered in the UK; company number 03069235.

The Board of Directors of Mount Kelly Foundation Governors are a self-appointed body. These directors are referred to as Governors throughout this report

The co-opted Governors are elected by the Board of Mount Kelly Foundation Governors. Service on the Board is for a term of four years. Retiring Governors can be re-elected.

Charity registered

number 306716 Principal office Mount Kelly Parkwood Road Tavistock Devon PL19 0HZ Governors The Reverend Prebendary Roger J Carlton, Nominated Governor of the Dean and Chapter of Exeter Cathedral Dr Howard J Ball (resigned 30 June 2020) Mrs Wendy V Davis Mr Keith Hollinshead Mr David Parlby Mr Alistair Grove Mrs Kerstin Lewis, Nominated Governor of the Bishop of Exeter Mr John W B May Somerville (resigned 2 April 2021) Mr Julian E R Trahair Mr James B Kitson Mr Niel O'Neill Mrs Amanda J Le Page Mrs Sarah M M Fitzgerald (resigned 30 September 2020) Dr Kevin C P Wilson, Chairman Mr Andrew C Main Dr Michael J Atkinson Mrs Hilary J Monk Mr Julian P Whiteley Mrs Claire L Weston (appointed 26 June 2020) Mr Nicholas A S Andrew (appointed 26 June 2020) Mr Barry M Widdows (appointed 22 September 2020) Officers Mr G T Ayling, Principal of the Foundation Ms J Paine, Director of Finance and Operations (appointed 1 May 2021) Independent auditors Bishop Fleming LLP Chartered Accountants 2nd Floor Stratus House Emperor Way Exeter Business Park Exeter EX1 3QS

Page 1

THE MOUNT KELLY FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Bankers Natwest Corporate Services Team PO BOX 33 St Andrews Cross Plymouth PL4 0YH Solicitors Foot Anstey Senate Court Southernhay Gardens Exeter Devon EX1 1NT

Page 2

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustee presents its annual report together with the audited financial statements of The Mount Kelly Foundation (the Charity and the Group) for the period 1 September 2019 to 31 August 2020.

STRUCTURE, GOVERNANCE AND MANAGEMENT

CONSTITUTION

The Charity provides education in Tavistock for children from the ages 3-18. It also provides support and advice to a campus in Hong Kong and is exploring other international opportunities, runs summer schools for overseas pupils, and swimming camps throughout the year. The day to day running of the School is delegated to the Principal of the Foundation and the Head of Finance.

The Charity is constituted by an 1872 Trust Deed and registered with the Charity Commission under Charity number 306716. The Trust Deed has been amended in subsequent years, the latest amendment being 2014.

RECRUITMENT AND TRAINING OF GOVERNORS

Mount Kelly is a member of HMC, SoH, IAPS, AGBIS, ISC, BSA and ISBA, all of which provide regular guidance, support and training. Compliance with Charity Commission regulation and best practice are reviewed on a regular basis and the Governing Body is continuing to consider its present and future composition, taking into account known UHTXLUHPHQWV�DQG�WKH�QHHG�IRU�D�UDQJH�RI�VNLOOV��*RYHUQRUV¶�WUDLQLng is enhanced through regular twilight sessions as well as attendance at courses, and the circulation of appropriate briefs.

GOVERNOR MEETINGS

The Governors meet as a full Board twice a term and have a full complement of sub-committees. In the year 2019-20 there were a total of 59 meetings (36 2018-19), including 16 meetings of the Coronavirus Committee.

ORGANISATIONAL MANAGEMENT

The Trustee of the Charity is Mount Kelly Foundation Governors (formerly Kelly College Governors), a company limited by guarantee.

Through its directors, Mount Kelly Foundation Governors have responsibility for the overall management of the Charity and its interests.

GROUP STRUCTURE AND RELATIONSHIPS

7KH�&KDULW\¶V�ZKROO\�RZQHG�WUDGLQJ�VXEVLGLDUies carry out non-charitable trading activities on behalf of the Charity. The subsidiaries incurred losses in the year due to the impact of the pandemic which significantly reduced income from letting the )RXQGDWLRQ¶V�SURSHUW\�LQ�WKH�VFKRRO�KROLGD\V�

RISK MANAGEMENT

The Trustee has a review process continually to PRQLWRU�DQG�H[DPLQH�WKH�SULQFLSDO�DUHDV�RI�WKH�6FKRRO¶V� operations and the risks that may be faced. A formal and comprehensive process of risk identification, mitigation and management has been conducted, and the Trustee considers that the major risks to which the Charity may be exposed have been identified and reviewed and that the systems set up to mitigate those risks, including insurance cover, are appropriate.

Page 3

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

COMPLIANCE INSPECTION

There was no compliance inspection this year, the School having passed a no-notice ISI compliance inspection in March 2018.

OBJECTIVES AND ACTIVITIES

POLICIES AND OBJECTIVES

The Objects of the Charity are the provision and conduct in or near Tavistock of a boarding and day school for young persons and the promotion of the education of former pupils of the School. Within these Objects, the Charity also has various permanent endowed and un-endowed trust funds held for special purposes in FRQQHFWLRQ�ZLWK�WKH�GHYHORSPHQW�RI�WKH�6FKRRO¶V�IDFLOLWLHV�DQG�IRr scholarships, bursaries, prizes and other educational purposes.

Mount Kelly recognises the benefits of having a diverse school community, with individuals who value one another, and the different contributions everyone can make. All members of the community are expected to value and respect others and pupils are taught this as part of their Mount Kelly education. The School is committed to being an equal opportunities education provider and employer, committed to equality of opportunity for all members of the school community. In the provision of equal opportunities, the School recognises and accepts its responsibilities under the law and opposes all discrimination. Further details can EH�IRXQG�LQ�WKH�6FKRRO¶V�3XSLOV�DQG�6WDII�(TXDOLW\�3ROLFLHV�

As a charity Mount Kelly understands fully its responsibility to maximise and demonstrate the benefits that its work provides for individuals, communities and the wider public. The School is committed to developing a culture of collaboration and partnership that enhances the experiences of our pupils and ensures the School is a force for good beyond its own boundaries. This undertaking is clearly defined in a new 5-year strategic plan that will see the School strengthen and sustain a long-term commitment to the wellbeing of the community.

AIMS AND INTENDED IMPACT

$V�DQ�HGXFDWLRQDO�FKDULW\�IRU�FKLOGUHQ��0RXQW�.HOO\¶V�SULQFLSDO�DFWLYLW\�LV�WKH�HGXFDWLRQ�DQG�SDVWRUDO�FDUH�RI� its pupils and it aims to achieve excellence in education and preparation for life. This is achieved by helping each individual pupil to maximise their academic potential, and also by providing a programme to enrich the curriculum and develop character. The provision of high-quality pastoral care and the development of moral and spiritual values enables pupils to contribute to both the local community and society in general.

Mount .HOO\¶V�key features are as follows:

Page 4

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Mount Kelly Purpose

Mount Kelly delivers a values-led, life-defining educational experience

Mount Kelly Values

COMPASSION

Empathy Tolerance Kindness

We treat others with compassion; demonstrating empathy, tolerance and kindness in all that we do

COURAGE

Determination Resilience Grit

We act with courage; demonstrating determination, resilience and grit in the face of both opportunity and FKDOOHQJH�DQG�DOZD\V�VWULYLQJ�WR�OHDUQ�WKURXJK�OLIH¶V�MRXUQH\

HUMILITY

Modesty Gratitude Selflessness

We behave with humility; we are modest in our success, grateful for our blessings and selfless in the way that we share them

RESPECT

Courtesy Service Consideration

We value and respect every person equally; always seeking to serve those around us and treating all with courtesy and consideration

COMMITMENT

Dedication Loyalty Endurance

We demonstrate commitment to our School and to those around us, making the most of opportunities available; we are dedicated, loyal and always endure through to the end

INTEGRITY

Honesty Decency Morality

We value integrity above all; we are honest with ourselves and others, conducting our lives with decency whilst striving for the highest moral standards

Page 5

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

OBJECTIVES FOR THE YEAR

The Governing Body set the following aims for the academic year 2019-20:

ACTIVITY TO ACHIEV(�7+(�<($5¶6�2%-(&7,9(6

Further progress has been made in realising the aims set out in the Strategic Plan

Academic Improvement

Aims

Actions taken

Continuity across Prep and College

Rise in attainment and aspiration

Page 6

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Expansion of Personalised Learning provision

Broader academic co-curriculum

Improved academic management and use of data

Managing lockdown

Pastoral

Aims

Actions taken

Improve general care

Mental wellbeing focus

Page 7

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Uniformity across Prep and College

Managing lockdown

Extra-Curricular

Estate

Governors have continued to direct investment into the estate, ensuring that health, safety and wellbeing of all members of the community are of primary importance and that the facilities enhance an excellent educational provision.

Work that has been undertaken includes:

PUBLIC RECOGNITION

Independent School Parent magazine's Independent Schools of the Year Awards - Performing Arts category 2020

South West Swim Coach of the Year 2019 UK Swim Coaching Talent Development Coach of the Year 2020

2020 School Choir of the Year Finalists in the BBC Young Choir of the Year

Page 8

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

PUBLIC BENEFIT

Employment

257 employees with a total wage bill of £6,113,677

Local economy

Estimated direct local spend £617,277 Estimated direct pupil spend in Tavistock £115,500 Means-tested local bursary support £265,450 Tavistock Gift Card sponsorship £4,000

Swimming Pools (25m and 50m pools) usage

Attendances

x 77,152 total attendances

Learn to Swim Programme

Local Schools

Residential Swim Camps

618 swimmers

Swim Schools

205 swimmers

Swim Performance

The 50m pool has heralded a huge improvement in the Mount Kelly swim programme, with resulting reputational benefits for town and locality:

Regional qualifiers 2015 38 2016 60 2017 70 2018 86 2019 92 2020 103

Sports facilities

A range of facilities are used by local organisations: All weather Tavistock HC, Tavistock RFC Campus Dartmoor Velo, Tavistock Triathlon, High 5, Archery Club, Spooners Pony Club Wortham Hall Stannary Brass Band Sports Hall MCCF cricket hub, Brendon Worth Cricket School, Rugby Tots, Tavistock Badminton Club Sports fields Football camps Courts Local Fives club

Page 9

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Partnerships

Mount Kelly has entered into arrangements with several organisations including: Tavistock HC shared financing arrangement for all-weather pitch Tavistock College athletics track, pool Tavistock Athletics shared facilities and coaching Tavistock BID sponsorship of Gift Card Tamar Energy Community solar panel installation and management Chelsea FC crHDWLQJ�6:�JLUOV¶�IRRWEDOO�KXE

Culture

Mount Kelly Choral Society

Tavistock Festival

Mount Kelly Concert Society

Other events

Volunteering

The School has a far-reaching programme that sees pupils and staff assisting with the Food Bank, Tavistock Locals Help, Rotary activities, Caring Calls and letter writing campaigns, local litter picking and gardening.

GRANT MAKING POLICY

TKH�7UXVWHH¶V�SROicy, in line with that of other independent schools, is to award some grants on the basis of educational ability, subject to the restrictions imposed by the original donor of funds. The Charity has continued its move towards a policy of granting a greater proportion of means-tested awards, making such awards this year to the value of £786,536.

VOLUNTEERS

The Parents' Association maintains its interest in the life of the School, raising funds to support non-curriculum activities, and a significant number of parents support the extra-curricular life of the School as volunteers. Fundraising for a new Prep playground has picked up pace.

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Operational Performance of the School

In the academic year 2019-20 Mount Kelly had a total of 600 pupils on-roll, maintaining an increase of over

Page 10

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

30% since the foundation of Mount Kelly in 2014.

Buoyant numbers have allowed further investment in line with WKH�6FKRRO¶V�REMHFWLYHV as detailed above.

Mount Kelly has a philosophy that is committed to an all-round education, and the provision of a wide range of extra-curricular opportunity enables our pupils to explore, grow and develop as well-rounded individuals.

A Level results were again strong. 17% of papers taken were awarded an A, 42% were graded A- A and 80% A*- C, all of which are well above the national average. 80% of pupils secured their places at their first choice of university, including universities in Europe and Hong Kong, and once again a number of pupils gained scholarships at universities in the USA.

There was another outstanding set of GCSE results this year. 50% of all grades awarded were 9-7, almost twice the national figure, and over 99% of all examinations taken were awarded 9-4. Almost 20% of Mount Kelly pupils scored 8 or 9 in five or more subjects.

There was also success at the Prep, with pupils winning places and scholarships not only at the College, but also at other well-known HMC schools.

2019-2020 was only half a season for our swimmers, however, there were still notable achievements:

We are also making significant progress across a wider range of sporting commitment. The games programme has grown, with a wider range of sporting options, and more fixtures across the range enable more pupils to represent the School. This has been impacted by lockdown but a clear pattern of participation and success has been firmly established.

Our youngest sportsmen and women receive much-improved and regular quality coaching and the overall quality of provision at the Prep school has strengthened markedly, with again a growth in the quantity and quality of fixtures.

Music continues to be a strength of the School with pupils, ensembles and choirs performing to an executional standard. The senior choir is particularly talented and received national recognition and our pupils continue to perform in many local events. Associated Board music exam uptake remains strong with considerable success at every level. The School maintains a very lively programme of informal concerts.

The School also runs a programme of public concerts, welcoming to the School professional soloists and ensembles of the highest calibre, performing to our own pupils and to the wider community. This programme has naturally been curtailed by the lockdown.

Outdoor pursuits remain a popular and successIXO�HOHPHQW�RI�0RXQW�.HOO\¶V�H[WUD-curricular life. Pupils in Years 6, 7 and 8 are now fully engaged in the LOTC programme, spending time out of the classroom during the summer term learning in the natural environment, and the addition of sail training on Olga ��WKH�6FKRRO¶V� cutter, has added an extra dimension to our offering. While at the College we maintain a high profile in the Ten Tors Challenge and the Devizes to Westminster International Canoe Race, and a lively involvement in Duke of Edinburgh Gold Awards, such activity has been severely impacted by the pandemic. A full return to action as soon as possible is planned.

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THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

In Performing Arts, a significant number of pupils this year once again took LAMDA examinations with Distinction passes at Grade 8. Drama productions have been affected by the lockdown but impressive plans had been in place, and the introduction of BTEC Performing Arts has given pupils another avenue through which their passions can be developed.

The lockdown saw the cancellation of the summer Mount Kelly Arts Festival, but plans are in place for 2021.

FINANCIAL REVIEW

The financial year 2019-20 was a challenging year, despite the enforced closure of the School for part of the year due to the pandemic. The School was closed for the summer term 2020 and reverted to a very successful remote learning programme for all year groups. As a result, summer term fees were discounted by an average of 33% resulting in an income shortfall of £1 million. However, furlough income of £500,000 together with overhead savings and a delay in expenditure on refurbishment projects significantly compensated for the loss of income. Consequently, thH�)RXQGDWLRQ¶V�GHILFLW�IRU�Whe year was restricted to £176,000. ~~C~~ apitalised projects to improve the SchoRO¶V�IDcilities and infrastructure amounted to £300,000.

GOING CONCERN

Since the year end there have been subsequent lockdowns due to the pandemic and, as a result, further fee rebates of £500,000 have been granted. Like last year, these will be offset by further furlough income and cost savings totalling some £300,000. As a result, the Foundation may incur a further small loss in the year to 31 August 2021. However, the Foundation held significant reserves prior to the pandemic and Governors are confident that the Charity has sufficient resources in place to manage the challenges resulting from the pandemic. In particular, pupil recruitment remains strong and the roll is higher than it has ever been. Current projections indicate that pupil numbers for September 2021 will exceed the current figure. After making enquiries, the Trustee is confident that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Trustee continues to adopt the going concern basis in preparing the financial statements.

RESERVES POLICY

The Foundation has total funds of £16.9m of which £13.9m are general funds and £3m are restricted or endowment funds. The majority of the Foundation¶s general funds are tied up in fixed assets and therefore not readily realisable in the short term. The Foundations current assets total some £4.6m including cash reserves of £3.6m. The TruVWHH¶V�WDUJHW��LQ�OLQH�ZLWK�the generally accepted view in the independent school sector, is to have accessible IXQGV�LQ�SODFH�DW�WKH�VWDUW�RI�HDFK�WHUP�HTXDWLQJ�WR�D�IXOO�WHUP¶V�Hxpenditure. This was primarily achieved in the 2019-20 financial year by thH�7UXVWHH¶V�PDQDJHPHQW�RI�LWs cash balances, unrestricted investments and working capital overdraft facility.

INVESTMENT POLICY AND OBJECTIVES

7KH�7UXVWHH¶V�LQYHVWPHQW�SRZHUV�DUe goverQHG�E\�WKH�7UXVW�'HHG��ZKLFK�SHUPLWV�WKH�&KDULW\¶V�IXQGV�WR�EH� invested by an authorised stockbroker regulated by the Financial Services Authority.

7KH�7UXVWHH¶V�3ROLF\�LV�WR�PDLQWDin income whilst preserving the real value of endowment investments; to maximise income on temporary invested restricted funds; to match the return on invested Advance Fees Scheme monies in line with the maturation profile of the related liability to provide schooling in future years. 7KH�&KDULW\¶V�LQYHVWPHQWV�KDYH�FRQWLQXed to be managed in conformity with the Policy and the Trust Deed.

Page 12

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

FUTURE DEVELOPMENTS

PAY POLICY FOR SENIOR STAFF

The salaries and benefits for the Principal of the Foundation and the Director of Finance and Operations are reviewed annually by the GovHUQRUV¶�5HPXQHUDWLRQ�&RPPLWWee, and are assessed in line with benchmarking studies in the sector.

TRUSTEE RESPONSIBILITIES STATEMENT

The Trustee is responsible for preparing the Trustee report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and the Group and of the incoming resources and application of resources of the Group for that period. In preparing these financial statements, the Trustee is required to:

The Trustee is responsible for keeping proper accounting records that are sufficient to show and explain the Charity and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Group and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. It is also responsible for safeguarding the assets of the Charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Trustee on 7/5/2021����. and signed on their behalf by:

Dr KCP Wilson AM Grove Chairman of Mount Kelly Chairman of Finance and General Foundation Governors Purposes Committee

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THE MOUNT KELLY FOUNDATION

(CONTINUED)

STATEMENT OF TRUSTEE'S RESPONSIBILITIES

The Trustee is responsible for preparing the Trustee's report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustee is required to:

The Trustee are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. It is also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 14

THE MOUNT KELLY FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MOUNT KELLY FOUNDATION

OPINION

We have audited the financial statements of The Mount Kelly Foundation (the 'parent charity') and its subsidiaries (the 'Group') for the year ended 31 August 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows 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).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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

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THE MOUNT KELLY FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MOUNT KELLY FOUNDATION (CONTINUED)

OTHER INFORMATION

The Trustee is responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustee's responsibilities statement, the Trustee is responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustee determines 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 Trustee is responsible for assessing the Group's and the parent 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 Trustee either intends to liquidate the Group or the parent charity or to cease operations, or have no realistic alternative but to do so.

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 151 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 Auditors' 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 Auditors' report.

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THE MOUNT KELLY FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MOUNT KELLY FOUNDATION (CONTINUED)

USE OF OUR REPORT

This report is made solely to the charity's trustee, 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 trustee those matters we are required to state to them in an Auditors' 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 its trustee, as a body, for our audit work, for this report, or for the opinions we have formed.

Bishop Fleming LLP

Chartered Accountants Statutory Auditors 2nd Floor Stratus House Emperor Way Exeter Business Park Exeter EX1 3QS

Date: 27/5/2021

Bishop Fleming LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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THE MOUNT KELLY FOUNDATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Note
INCOME AND
ENDOWMENTS
FROM:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments
5
TOTAL INCOME AND
ENDOWMENTS
EXPENDITURE ON:
Trading activities
Charitable activities
6
TOTAL
EXPENDITURE
Net losses on
investments
NET
(EXPENDITURE)/IN
COME
Transfers between
funds
16
NET MOVEMENT IN
FUNDS
RECONCILIATION OF
FUNDS:
Total funds brought
forward
Net movement in funds
TOTAL FUNDS
CARRIED
FORWARD		 Endowment
funds
2020
£
-
-
-
-
-
-
-
-
(26,070)
(26,070)
(1,559)
(27,629)
603,574
(27,629)
575,945		 Restricted
funds
2020
£
91,813
-
-
32,276
124,089
-
47,716
47,716
(6,268)
70,105
(46,593)
23,512
2,341,237
23,512
2,364,749		 Unrestricted
funds
2020
£
13,397
8,408,518
483,540
-
8,905,455
702,888
8,423,225
9,126,113
-
(220,658)
48,152
(172,506)
14,105,915
(172,506)
13,933,409		 Total
funds
2020
£
105,210
8,408,518
483,540
32,276
9,029,544
702,888
8,470,941
9,173,829
(32,338)
(176,623)
-
(176,623)
17,050,726
(176,623)
16,874,103		 Total
funds
2019
£
38,534
8,646,956
880,594
44,924
9,611,008
808,262
8,690,604
9,498,866
(2,957)
109,185
-
109,185
16,941,541
109,185
17,050,726

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 22 to 40 form part of these financial statements.

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THE MOUNT KELLY FOUNDATION

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2020

Note
FIXED ASSETS
Tangible assets
10
Investments
11
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
NET CURRENT LIABILITIES
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: amounts falling due after more
than one year
15
NET ASSETS EXCLUDING PENSION
ASSET
TOTAL NET ASSETS
CHARITY FUNDS
Endowment funds
16
Restricted funds
16
Unrestricted funds
16
TOTAL FUNDS		 91,774
851,058
3,615,509
4,558,341
(6,075,614)		 2020
£
21,143,159
996,405
22,139,564
(1,517,273)
20,622,291
(3,748,188)
16,874,103
16,874,103
575,945
2,364,749
13,933,409
16,874,103		 113,527
785,356
3,500,392
4,399,275
(5,958,944)		 2019
£
21,485,925
1,032,176
22,518,101
(1,559,669)
20,958,432
(3,907,706)
17,050,726
17,050,726
603,574
2,341,237
14,105,915
17,050,726

The financial statements were approved and authorised for issue by the Trustee and signed on their behalf by:

Dr KCP Wilson AM Grove Chairman of Mount Kelly Chairman of Finance and General Foundation Governors Purposes Committee

Date: 7/5/2021

The notes on pages 22 to 40 form part of these financial statements.

Page 19

THE MOUNT KELLY FOUNDATION

CHARITY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 AUGUST 2020

Note
FIXED ASSETS
Tangible assets
10
Investments
11
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
NET CURRENT LIABILITIES
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: amounts falling due after more
than one year
15
NET ASSETS EXCLUDING PENSION
ASSET
TOTAL NET ASSETS
CHARITY FUNDS
Endowment funds
16
Restricted funds
16
Unrestricted funds
16
TOTAL FUNDS		 24,585
921,111
3,476,382
4,422,078
(5,984,336)		 2020
£
21,142,471
996,405
22,138,876
(1,562,258)
20,576,618
(3,748,188)
16,828,430
16,828,430
575,945
2,364,185
13,888,300
16,828,430		 24,990
792,287
3,357,344
4,174,621
(5,924,281)		 2019
£
21,483,759
1,032,176
22,515,935
(1,749,660)
20,766,275
(3,907,706)
16,858,569
16,858,569
603,574
2,200,864
14,054,131
16,858,569

The financial statements were approved and authorised for issue by the Trustee and signed on their behalf by:

Dr KCP Wilson AM Grove Chairman of Mount Kelly Chairman of Finance and General Foundation Governors Purposes Committee

Date: 7/5/2021

The notes on pages 22 to 40 form part of these financial statements.

Page 20

THE MOUNT KELLY FOUNDATION

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities
19
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Proceeds from the sale of intangible assets
Proceeds from sale of investments
Purchase of investments
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowing
Repayments of HP
NET CASH USED IN FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
20		 2020
£
372,109
32,276
(156,537)
163,236
(160,175)
(121,200)
(129,583)
(10,144)
(139,727)
111,182
3,545,658
3,656,840		 2019
£
1,102,957
45,094
(352,271)
169,202
(152,396)
(290,371)
(262,047)
(22,517)
(284,564)
528,022
3,017,636
3,545,658

The notes on pages 22 to 40 form part of these financial statements

Page 21

THE MOUNT KELLY FOUNDATION

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

1. ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), 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 Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Mount Kelly Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

1.2 GOING CONCERN

Since the year end there have been subsequent lockdowns due to the pandemic and, as a result, further fee rebates of £500,000 have been granted. Like last year, these will be offset by further furlough income and cost savings totalling some £300,000. As a result, the Foundation may incur a further small loss in the year to 31 August 2021. However, the Foundation held significant reserves prior to the pandemic and Governors are confident that the Charity has sufficient resources in place to manage the challenges resulting from the pandemic. In particular, pupil recruitment remains strong and the roll is higher than it has ever been. Current projections indicate that pupil numbers for September 2021 will exceed the current figure. After making enquiries, the Trustee is confident that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Trustee continues to adopt the going concern basis in preparing the financial statements.

1.3 INCOME

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

1.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Page 22

THE MOUNT KELLY FOUNDATION

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

1. ACCOUNTING POLICIES (continued)

1.4 EXPENDITURE (CONTINUED)

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.5 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

Freehold property - 1-2% straight line
Land - not depreciated
Other fixed assets - 6.67 - 25% straight line
Motor vehicles - 15% straight line
Fixtures and fittings - 10% straight line

1.6 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

1.7 STOCKS

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.8 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.9 CASH AT BANK AND IN HAND

Cash at bank and 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.

Page 23

THE MOUNT KELLY FOUNDATION

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

1. ACCOUNTING POLICIES (continued)

1.10 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

1.11 FINANCIAL INSTRUMENTS

The Group only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.12 FINANCE LEASES AND HIRE PURCHASE

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Consolidated statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

1.13 PENSIONS

1.14 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 24

THE MOUNT KELLY FOUNDATION

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

2. INCOME FROM DONATIONS AND LEGACIES

Restricted
funds
2020
Unrestricted
funds
2020
£
£
Donations
91,813
13,397
Restricted
funds
2019
Unrestricted
funds
2019
£
£
Donations
36,051
2,483
3.
INCOME FROM CHARITABLE ACTIVITIES
Unrestricted
funds
2020
Total
funds
2020
£
£
Tuition fees: Gross fees
10,273,155
10,273,155
Less Bursaries, Scholarships and other discounts
(2,455,158)
(2,455,158)
Other educational income:
After school care
2,531
2,531
Registration fees
16,549
16,549
Other ancillary income:
Interest on unpaid fees
2,455
2,455
Income from property rental
-
-
Furlough grants
488,236
488,236
Income from extra activities
80,750
80,750
8,408,518
8,408,518		 Total
funds
2020
£
105,210
Total
funds
2019
£
38,534
Total
funds
2019
£
11,167,647
(2,649,415)
6,731
14,760
5,443
2,340
-
99,450
8,646,956

Page 25

THE MOUNT KELLY FOUNDATION

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

4. INCOME FROM OTHER TRADING ACTIVITIES

Income from non charitable trading activities

Unrestricted
funds
2020
£
Sales
8,259
Other commercial activities
187,263
Commercial swimming
288,018
International activities
-
483,540
5.
INVESTMENT INCOME
Restricted
funds
2020
£
Investment income
32,276
6.
ANALYSIS OF EXPENDITURE BY ACTIVITIES
Activities
undertaken
directly
2020
£
Educational
4,409,016
Domestic & Catering
-
Maintenance
-
Administration
-
Finance costs
-
Governance
-
4,409,016		 Total
funds
2020
£
8,259
187,263
288,018
-
483,540
Total
funds
2020
£
32,276
Support
costs
2020
£
-
1,557,467
767,896
1,508,075
195,966
32,521
4,061,925		 Total
funds
2019
£
18,701
387,330
444,563
30,000
880,594
Total
funds
2019
£
44,924
Total
funds
2020
£
4,409,016
1,557,467
767,896
1,508,075
195,966
32,521
8,470,941

Page 26

THE MOUNT KELLY FOUNDATION

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

6. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

Activities
undertaken
directly
2019
£
Educational
4,170,223
Domestic & Catering
-
Maintenance
-
Administration
-
Finance costs
-
Governance
-
4,170,223
7.
AUDITORS' REMUNERATION
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above
8.
STAFF COSTS
Group
Group
2020
2019
£
£
Wages and salaries
4,525,474
4,667,446
Social security costs
394,461
405,822
Contribution to defined contribution pension
schemes
612,782
440,409
5,532,717
5,513,677		 Support
costs
2019
£
-
1,754,806
852,114
1,730,195
131,995
51,271
4,520,381
2020
£
12,300
5,229
Charity
2020
£
4,213,024
379,672
606,583
5,199,279		 Total
funds
2019
£
4,170,223
1,754,806
852,114
1,730,195
131,995
51,271
8,690,604
2019
£
9,655
3,950
Charity
2019
£
4,377,559
392,912
434,900
5,205,371

Page 27

THE MOUNT KELLY FOUNDATION

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

8. STAFF COSTS (CONTINUED)

The average number of persons employed by the Charity during the year was as follows:

Education
Domestic
Administration
Maintenance
Subsidiary companies		 Group
2020
No.
86
19
16
19
40
180		 Group
2019
No.
83
18
17
19
40
177

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

Group Group
2020 2019
No. No.
In the band £60,001 - £70,000 3 3
In the band £90,001 - £100,000 - 1
In the band £100,001 - £110,000 - 1
In the band £110,001 - £120,000
1 -

9. TRUSTEE'S REMUNERATION AND EXPENSES

During the year, no Trustee received any remuneration or other benefits (2019 - £NIL).

During the year ended 31 August 2020, no Trustee expenses have been incurred (2019 - £NIL).

10. TANGIBLE FIXED ASSETS

GROUP

COST OR VALUATION
At 1 September 2019
Additions
Disposals
At 31 August 2020		 Freehold
property
£
20,756,769
-
-
20,756,769		 Motor
vehicles
£
123,990
-
(11,259)
112,731		 Fixtures and
fittings
£
2,526,441
145,383
(46,253)
2,625,571		 Other fixed
assets
£
956,689
11,154
-
967,843		 Total
£
24,363,889
156,537
(57,512)
24,462,914

Page 28

THE MOUNT KELLY FOUNDATION

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

10. TANGIBLE FIXED ASSETS (CONTINUED)

GROUP (CONTINUED)

DEPRECIATION
At 1 September 2019
Charge for the year
On disposals
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019
CHARITY
COST OR VALUATION
At 1 September 2019
Additions
Disposals
At 31 August 2020
DEPRECIATION
At 1 September 2019
Charge for the year
On disposals
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019		 Freehold
property
£
1,052,922
249,983
-
1,302,905
19,453,864
19,703,847
Freehold
property
£
20,756,769
-
-
20,756,769
1,052,922
249,983
-
1,302,905
19,453,864
19,703,847		 Motor
vehicles
£
87,046
6,315
(8,903)
84,458
28,273
36,944
Motor
vehicles
£
123,990
-
(11,259)
112,731
87,046
6,315
(8,903)
84,458
28,273
36,944		 Fixtures and
fittings
£
1,365,869
197,140
(46,155)
1,516,854
1,108,717
1,160,572
Fixtures and
fittings
£
2,468,492
145,383
(46,253)
2,567,622
1,310,086
195,662
(46,155)
1,459,593
1,108,029
1,158,406		 Other fixed
assets
£
372,127
43,411
-
415,538
552,305
584,562
Other fixed
assets
£
956,689
11,154
-
967,843
372,127
43,411
-
415,538
552,305
584,562		 Total
£
2,877,964
496,849
(55,058)
3,319,755
21,143,159
21,485,925
Total
£
24,305,940
156,537
(57,512)
24,404,965
2,822,181
495,371
(55,058)
3,262,494
21,142,471
21,483,759

Page 29

THE MOUNT KELLY FOUNDATION

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

10. TANGIBLE FIXED ASSETS (CONTINUED)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:

Group Group
2020 2019
£ £
Plant, F&F and Equipment 32,753 73,870

11. FIXED ASSET INVESTMENTS

Group and Charity
COST OR VALUATION
At 1 September 2019
Additions
Disposals
Revaluations
Transfers between classes
AT 31 AUGUST 2020
NET BOOK VALUE
AT 31 AUGUST 2020
AT 31 AUGUST 2019
12.
STOCKS
Group
2020
£
Stocks
91,774		 Listed
investments
£
986,911
160,175
(159,674)
(32,338)
-
955,074
955,074
986,911
Group
2019
£
113,527		 Cash
account
held as part
of
investment
portfolio
£
45,265
-
-
-
(3,934)
41,331
41,331
45,265
Charity
2020
£
24,585		 Total
£
1,032,176
160,175
(159,674)
(32,338)
(3,934)
996,405
996,405
1,032,176
Charity
2019
£
24,990

Page 30

THE MOUNT KELLY FOUNDATION

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

13. DEBTORS

DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Fees		 Group
2020
£
14,481
-
84,004
137,935
614,638
851,058		 Group
2019
£
112,942
-
21,126
175,640
475,648
785,356		 Charity
2020
£
-
147,045
25,750
133,678
614,638
921,111		 Charity
2019
£
-
127,367
18,996
170,276
475,648
792,287

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
Advance fees
Trade creditors
Other taxation and social security
Obligations under finance lease and hire
purchase contracts
Fees received in advance
Other creditors
Accruals and deferred income
Fees received in advance at 1 September
Resources deferred during the year
Amounts released from previous periods
Fees received in advance at 31 August
2020		 Group
2020
£
296,507
433,297
185,596
104,892
23,609
3,054,302
1,549,312
428,099
6,075,614
Group
2020
£
2,968,477
3,054,302
(2,968,477)
3,054,302		 Group
2019
£
266,571
551,396
228,364
130,138
33,753
2,968,477
1,409,418
370,827
5,958,944
Group
2019
£
2,826,711
2,968,477
(2,826,711)
2,968,477		 Charity
2020
£
296,507
433,297
165,485
99,138
23,609
3,054,302
1,540,331
371,667
5,984,336
Charity
2020
£
2,968,477
3,054,302
(2,968,477)
3,054,302		 Charity
2019
£
266,571
551,396
198,346
126,560
33,753
2,968,477
1,402,614
376,564
5,924,281
Charity
2019
£
2,826,711
2,968,477
(2,826,711)
2,968,477

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Group Charity Charity
2020 2019 2020 2019
£ £ £ £

Page 31

THE MOUNT KELLY FOUNDATION

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

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (CONTINUED)
Group Group Charity Charity
2020 2019 2020 2019
£ £ £ £
Bank loans 3,748,188 3,907,706 3,748,188 3,907,706

Page 32

THE MOUNT KELLY FOUNDATION

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

16. STATEMENT OF FUNDS STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
General Funds
ENDOWMENT FUNDS
Endowment Fund
RESTRICTED FUNDS
Scholarships and bursaries funds
Investment income
Bursary fund
Music school fund
Swimming pool fund
Hockey pitch fund
Old Mount Kelleian bridge donation
TOTAL OF FUNDS		 Balance at 1
September
2019
£
14,105,915
603,574
427,636
45,094
47,951
217,055
1,048,068
526,633
28,800
2,341,237
17,050,726		 Income
£
8,905,455
-
-
32,276
91,813
-
-
-
-
124,089
9,029,544		 Expenditure
£
(9,126,113)
-
-
-
-
(4,796)
(22,299)
(20,021)
(600)
(47,716)
(9,173,829)		 Transfers
in/out
£
48,152
(1,559)
(1,499)
(45,094)
-
-
-
-
-
(46,593)
-		 Gains/
(Losses)
£
-
(26,070)
(6,268)
-
-
-
-
-
-
(6,268)
(32,338)		 Balance at
31 August
2020
£
13,933,409
575,945
419,869
32,276
139,764
212,259
1,025,769
506,612
28,200
2,364,749
16,874,103

Page 33

THE MOUNT KELLY FOUNDATION

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

16. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
General Funds
ENDOWMENT FUNDS
Endowment Fund
RESTRICTED FUNDS
Scholarships and bursaries funds
Investment income
Bursary fund
Music school fund
Swimming pool fund
Hockey pitch fund
Old Mount Kelleian bridge donation
TOTAL OF FUNDS		 Balance at
1 September
2018
£
14,000,469
611,697
417,965
31,068
12,302
221,851
1,070,367
546,422
29,400
2,329,375
16,941,541		 Income
£
9,530,033
-
-
45,094
35,649
-
-
232
-
80,975
9,611,008		 Expenditure
£
(9,451,150)
-
-
-
-
(4,796)
(22,299)
(20,021)
(600)
(47,716)
(9,498,866)		 Transfers
in/out
£
26,563
4,505
-
(31,068)
-
-
-
-
-
(31,068)
-		 Gains/
(Losses)
£
-
(12,628)
9,671
-
-
-
-
-
-
9,671
(2,957)		 Balance at
31 August
2019
£
14,105,915
603,574
427,636
45,094
47,951
217,055
1,048,068
526,633
28,800
2,341,237
17,050,726

Page 34

THE MOUNT KELLY FOUNDATION

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

17. SUMMARY OF FUNDS

SUMMARY OF FUNDS - CURRENT YEAR

General funds
Endowment funds
Restricted funds
SUMMARY OF FUNDS - PRIOR YEAR
General funds
Endowment funds
Restricted funds		 Balance at 1
September
2019
£
14,105,915
603,574
2,341,237
17,050,726
Balance at
1 September
2018
£
14,000,469
611,697
2,329,375
16,941,541		 Income
£
8,905,455
-
124,089
9,029,544
Income
£
9,530,033
-
80,975
9,611,008		 Expenditure
£
(9,126,113)
-
(47,716)
(9,173,829)
Expenditure
£
(9,451,150)
-
(47,716)
(9,498,866)		 Transfers
in/out
£
48,152
(1,559)
(46,593)
-
Transfers
in/out
£
26,563
4,505
(31,068)
-		 Gains/
(Losses)
£
-
(26,070)
(6,268)
(32,338)
Gains/
(Losses)
£
-
(12,628)
9,671
(2,957)		 Balance at
31 August
2020
£
13,933,409
575,945
2,364,749
16,874,103
Balance at
31 August
2019
£
14,105,915
603,574
2,341,237
17,050,726

Page 35

THE MOUNT KELLY FOUNDATION

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

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT PERIOD

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
TOTAL		 Endowment
funds
2020
£
-
575,945
-
-
-
575,945		 Restricted
funds
2020
Unrestricted
funds
2020
£
£
2,364,749
18,778,410
-
420,460
-
4,558,341
-
(6,075,614)
-
(3,748,188)
2,364,749
13,933,409		 Total
funds
2020
£
21,143,159
996,405
4,558,341
(6,075,614)
(3,748,188)
16,874,103

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR PERIOD

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
TOTAL		 Endowment
funds
2019
£
-
603,574
-
-
-
603,574		 Restricted
funds
2019
£
1,820,324
428,176
92,737
-
-
2,341,237		 Unrestricted
funds
2019
£
19,665,601
426
4,306,538
(5,958,944)
(3,907,706)
14,105,915		 Total
funds
2019
£
21,485,925
1,032,176
4,399,275
(5,958,944)
(3,907,706)
17,050,726

Page 36

THE MOUNT KELLY FOUNDATION

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

19.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
ACTIVITIES
Net income/expenditure for the period (as per Statement of Financial
Activities)
ADJUSTMENTS FOR:
Depreciation charges
Gains/(loss) on investments
Dividends, interests and rents from investments
(Profit)/loss on the sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase in creditors
NET CASH PROVIDED BY OPERATING ACTIVITIES
20.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Held within investment funds
Bursary Funds
TOTAL CASH AND CASH EQUIVALENTS
21.
ANALYSIS OF CHANGES IN NET DEBT
At 1
September
2019
£
Cash at bank and in hand
3,500,392
Debt due within 1 year
(266,571)
Debt due after 1 year
(3,907,706)
Finance leases
(33,753)
(707,638)		 FROM OPERATING
Group
Group
2020
2019
£
£
(176,623)
109,185
496,852
480,087
(32,338)
2,653
(32,276)
(45,094)
-
1,063
21,751
(10,235)
(61,958)
129,112
156,701
436,186
372,109
1,102,957
Group
Group
2020
2019
£
£
3,475,745
3,500,393
41,331
45,265
139,764
-
3,656,840
3,545,658
Cash flows
At 31
August 2020
£
£
115,117
3,615,509
(29,936)
(296,507)
159,518
(3,748,188)
10,144
(23,609)
254,843
(452,795)

Page 37

THE MOUNT KELLY FOUNDATION

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

22. PENSION COMMITMENTS

There are several pension schemes available to certain employees of the School, the Teachers' Pension Scheme for teaching staff and a Group Personal Pension and a Death in Service Life Assurance for nonteaching staff.

Teachers' Pension Scheme

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 and at the year-end £62,179 (2019 - £45,939) 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 closes/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.

Non teaching staff

All non teaching staff are invited to participate in the Group Personal Pension Plan and the Death in Service Life Assurance. This scheme is a defined contribution scheme, and the assets of the scheme are held separately from those in the School in independently administered funds.

Page 38

THE MOUNT KELLY FOUNDATION

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

22. PENSION COMMITMENTS (CONTINUED)

Contributions totaling £11,171 (2019: £11,600) were payable at the year end.

23. OPERATING LEASE COMMITMENTS

At 31 August 2020 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

AMOUNTS PAYABLE:
Not later than 1 year
Later than 1 year and not later than 5 years
Total		 Group
2020
£
27,377
29,927
57,304		 Group
2019
£
57,924
58,466
116,390

24. RELATED PARTY TRANSACTIONS

A number of employees of the Charity have children who are pupils at the school and therefore pay fees to the School. All transactions re conducted in accordance with the Foundation's financial regulation and normal procurement procedures, although they are given staff discount of 50%-80%.

25. PRINCIPAL SUBSIDIARIES

Mount Kelly operates three trading subsidiaries.

a) Mount Kelly Overseas Limited

The Hong Kong company that signed a franchise agreement with the subsidiary company, Mount Kelly Overseas Ltd, has now opened a Mount Kelly Hong Kong Nursery, Pre-Prep and Prep school. Due to the impact of pandemic and the issues between Hong Kong and China, the overseas franchisee has been unable to make a contribution to the Foundation this year and, as a result, Mount Kelly Overseas Limited incurred a loss of £17,602 in the year.

b) Mount Kelly Swimming Limited

The company’s operations were severely impacted by the pandemic and both the 50m and 25m pools were closed for four months of the year. This resulted in lost income from both local users and swim clubs from further afield which normally stay in the Foundation’s accommodation on swim camps. Consequently, the company incurred losses of £247,577 in the year after paying intra group rent to the Mount Kelly Foundation of £30,000. 'The Mount Kelly is committed to supporting its 100% subsidiary, by granting the subsidiary sufficient funds to cover this loss, as the pool brings benefits to the Foundation as a whole that far exceed this value.

c) Mount Kelly Enterprises Limited

The company generated £12,467 from letting out the Foundation’s accommodation etc. There was no commercial activity for the whole of the summer which is usually when the majority of the lets and language school business take place.

The following were subsidiary undertakings of the Charity:

Page 39

THE MOUNT KELLY FOUNDATION

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

25. PRINCIPAL SUBSIDIARIES (CONTINUED)
Names Company Holding Included in
number consolidation
Mount Kelly Overseas Limited 10012171 100% Yes
Mount Kelly Swimming Limited 10066675 100% Yes
Mount Kelly Enterprises Limited 01482627 100% Yes
The financial results of the subsidiaries for the year were:
Names Income Expenditure Profit/(Loss) Net assets
£ £ / Surplus/ £
(Deficit) for
the year
£
Mount Kelly Overseas Limited - (17,602) (17,602) (17,601)
Mount Kelly Swimming Limited 537,309 (537,309) - -
Mount Kelly Enterprises Limited 197,081 (184,614) 12,467 63,275

Page 40