**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
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**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.
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**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:
- x Mount Kelly is an all-round co-educational School, where pupils from the age of 3-18 are nurtured and encouraged to realise their full potential
- x Mount Kelly is a school which values strong academic performance and it works tirelessly to maximise the ability of every child
- x Mount Kelly is located on the edge of Dartmoor National Park and makes every use of its exceptional surroundings to widen puSLOV¶�H[SHULHQFHV
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**THE MOUNT KELLY FOUNDATION**
## **TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
- x Mount Kelly is proud to be a close-knit school and there is a special emphasis on individual pastoral care where family values pervade every aspect of school life
- x Mount Kelly understands what it takes for pupils to compete at the top level; its globally recognised swimming programme is replicated in other fields across the School
- x Mount Kelly is a school with a strong sense of service to the community and believes it is important to give children a chance to attend the School who could not otherwise afford to do so
- x Mount Kelly is a Christian School, where the importance of tolerance, understanding and kindness are taught with skill and dedication
- x Mount Kelly produces happy, confident, well-rounded and ambitious pupils and they have a fierce pride in being part of Mount Kelly
## 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
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**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:
- x Continue to implement the Strategic and Development Plans
- x Continue to develop integration across the Foundation and a one-school ethos
- x Continue to develop coherence of purpose and values across the Foundation
- x 0DLQWDLQ�WKH�6FKRRO¶V�FRPPLWPHQW�WR�KLJK�DFDGHPLF�VWDQGDUGV�DQG�WKH�DGGing of value at all stages
- x Maintain the excellent standards of pastoral care and continue to broaden the range of extra-curricular activities across the Foundation
- x Continue to improve WKH�6FKRRO¶V�IDFLOLWLHV�DQG�WR�SURWHFW�WKH�KLVWRULF�HQYLUonment
- x Actively identify and exploit opportunities for further international expansion
- x Plan for an expansion of commercial activity
- x Begin the formulation of a new 5-year strategy
## **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**
- x Continuity across Prep and College
- x Rise in attainment and aspiration
- x Expansion of Personalised Learning provision
- x Broader academic co-curriculum
- x Improved academic management and use of data
- x Managing lockdown
## **Actions taken**
## **Continuity across Prep and College**
- x Timetable is now synchronised, start/finish and length of lessons
- x Staffing ± some sharing of staff in English/Drama/PE/MFL
- x Syllabus alignment
- CE syllabuses dropped
- x Technology
- ISAMS and Teams operating across the School
- Devices now required in the classroom for pupils in Year 7 and above
## **Rise in attainment and aspiration**
- x Improving classroom teaching
- Classroom provision ± décor and technology improving in Main Block
- Deployment of Head of Teaching & Learning ± lesson observations, work scrutiny
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**THE MOUNT KELLY FOUNDATION**
## **TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
- Better use of technology, including _Century_ and other platforms
- x Professional development
- New appraisal system introduced, focus on professional development
- MK Handbook completed and soon to be published
- x Oxford trip in February
- x Collaboration with other schools for Oxbridge/Medicine applications
## **Expansion of Personalised Learning provision**
- x SEN
- Review of use of LSAs at the College
- Provision for Sixth Form
- New staff training and qualification
- x EAL
- Review of EAL curriculum, more focus on supporting other subjects
- `o` Brought under the PL umbrella
## **Broader academic co-curriculum**
- x Co-ordinator of LOTC has created a plan for KS3 year-groups
- x Plum Society (Yrs9/10) and Senior Plum Society (Sixth Form)
- x Oxford Model UN in November
## **Improved academic management and use of data**
- x CEM data/assessments identifying pupils for management intervention
- x Introduction of Surveys (including pupil voice) and Forums
- x Use of CEM data to build a coherent picture across the School
- x &RQVWUXFWLRQ�RI�µSLOODUV¶�WR�HVWDEOLVK�DFDGHPLF�UHVSRQVLELOLW\�DFURVV�WKH�School
## **Managing lockdown**
- x New timetables
- x Staff training
- x New software to facilitate parent/teaching meetings
- x Parent/pupil guidance
## **Pastoral**
## **Aims**
- x Improve general care
- x Mental wellbeing focus
- x Uniformity across Prep and College
- x Managing lockdown
## **Actions taken**
## **Improve general care**
- x House structure moved from horizontal to vertical
- x Staff training
- x Revised PSHE curriculum
- x PASS software trial
- x +0&¶V�3/4� 3DVWRUDO�/HDGHUV�4XDOLILFDWLRQ �
- x Pastoral meetings
- x Pupil voice
## **Mental wellbeing focus**
- x Staff training
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**THE MOUNT KELLY FOUNDATION**
## **TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
- x Review of medical provision
- x Wellbeing space created in Prep
## **Uniformity across Prep and College**
- x Single SLT
- x Combined pastoral meetings
## **Managing lockdown**
- x Wellbeing surveys
- x Staff/pupil contact
- x Forums
## **Extra-Curricular**
- x Continuing to ensure breadth and quality of opportunities for all
- x *LUOV¶�IRRWEDOO�LQ�SDUWQHUVKLS�ZLWK�&KHOVHD�)& Foundation
- x Further developments to the fixture lists
- x New cricket scoreboard
- x Strengthening coaching structures
- x Developing Academies
- x All-sport strength and conditioning provision
- x On-site physiotherapy clinic
- x Year group drama productions in Prep and regular concert programme throughout
## **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:
- x Main block classroom refurbishment
- x Science Block refurbishment
- x Gym refurbishment
- x Various roof repairs
## **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
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**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
- x 450 children and 50 adults
- x 16 swim clubs
- x 3 triathlon clubs
- x 2 Surf Lifesaving clubs
- x 11 local groups
- x 6 coaching courses delivered
- x 1 Swimathon
Local Schools
- x 15 local primary schools receive swimming lessons
- x 1 senior school swimming gala
## **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
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**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
- x the rehearsal venue
- x administration support
- x the services of the Music Director
- x soloists and orchestral members from time to time
- x marketing assistance
## Tavistock Festival
- x the School is a major sponsor of this event
- x provides venue and administration support
- x provides content for a number of events free of charge, including the Tavistock Sings event featuring numerous local Primary Schools
Mount Kelly Concert Society
- x high quality professional musical performances
Other events
- x concerts at care homes and other venues providing pupil performances especially at Christmas
- x pupils provide music for Dickensian evening, the Christmas Tree Festival and the annual Remembrance Concert at the parish church
## **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
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**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:
- x Arena League: A Final Winners
- x Short Course Winter Championships: 35 qualifiers and 17 medalists
- x National Records: 1 Lebanese national; 1 English age group; 1 British Age group x Six pupils going on to universities with swimming programmes
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.
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**THE MOUNT KELLY FOUNDATION**
## **TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
## **FUTURE DEVELOPMENTS**
- x Formulate and execute a new 5-year strategy to be published by September 2021.
## **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:
- x Select suitable accounting policies and then apply them consistently
- x Observe the methods and principles in the Charities SORP
- x Make judgments and accounting estimates that are reasonable and prudent
- x Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in operation.
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
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.
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## **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:
- give a true and fair view of the state of the Group's and of the parent charity's affairs as at 31 August 2020 and of the Group's 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 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:
- the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the Trustee has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group's or the parent charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Page 15
**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:
- the information given in the Trustee's report is inconsistent in any material respect with the financial statements; or
- the parent Charity has not kept sufficient accounting records; or
- the parent Charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the Trustee'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.
Page 16
## **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.
Page 17
**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.
Page 18
## **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**|
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