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2021-08-31-accounts

Charity number: 306716

THE MOUNT KELLY FOUNDATION

TRUSTEE'S REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

THE MOUNT KELLY FOUNDATION

CONTENTS

Page
Reference and administrative details of the Charity, its Trustee and advisers 1 - 2
Trustee's report 3 - 13
Independent auditors' report on the financial statements 14 – 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 - 38

THE MOUNT KELLY FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

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 Mr Stuart Anderson (appointed 7 May 2021)
Mr Nicholas Andrews
Dr Michael Atkinson
The Reverend Prebendary Roger Carlton, Nominated Governor of the Dean and
Chapter of Exeter Cathedral
Mrs Wendy Davis
Mrs Sarah M M Fitzgerald (resigned 30 September 2020)
Mr Alistair Grove
Mr Keith Hollinshead
Mr James Kitson
Mrs Amanda Le Page
Mrs Kerstin Lewis, Chair effective 15 October 2021, Nominated Governor of the
Bishop of Exeter
Mr Andrew Main
Mrs Hilary Monk
Mr Neil O'Neill
Mr Rob Ormsby (appointed 7 May 2021)
Mr David Parlby
Mr John W B May Somerville (resigned 2 April 2021)
Mr Julian Trahair
Mrs Claire Weston
Mr Julian Whiteley
Mr Barry Widdows (resigned 21 June 2021)
Mr Kevin Wilson (resigned 15 October 2021)
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
Salt Quay House
4 North East Quay
Sutton Harbour
Plymouth
PL4 0BN

Page 1

THE MOUNT KELLY FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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 2021

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 2020 to 31 August 2021.

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 Director of Finance and Operations.

The Charity is constituted by an 1872 Trust Deed and registered with the Charity Commissions 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 requirements and the need for a range of skills. Governors’ training 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 a least once each term and have a full complement of sub-committees. During the year there were a total of 49 meetings (2020: 59).

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

The Charity’s wholly owned trading subsidiaries carry out non-charitable trading activities on behalf of the Charity.

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 connection with the development of the School’s facilities and for 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 is responsibilities under the law and opposes all discrimination. Further details can be found in the School’s Pupils and Staff Equality Policies.

Page 3

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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 the 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

As an educational charity for children, Mount Kelly’s principal activity is the education and pastoral care of 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 Kelly’s key features are as follows:

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 challenge and always striving to learn through life’s journey

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

Page 4

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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

Objectives for the Year

The Governing Body set the following aims for the academic year 2020-21:

The launch of the Strategic Plan was a key objective for the year, setting out a clear framework and direction of the School. Management have started to make progress with the plan as set out in the report.

Strategic Plan Objectives and Actions

Academic Improvement

To equip our young people with intellectual confidence and the qualifications, skills, knowledge, attitudes and values demanded by the future world.

What we will do to achieve this

Actions taken

Continuity across Prep and College

Rise in attainment and aspiration

1 A Thinking School , accredited by the University of Exeter, takes an explicit, evidence informed, whole school approach to developing pupils’ metacognitive capability and intelligent learning behaviours

2 OECD (Organisation for Economic Co-Operation and Development) Education 2030 is a global initiative to build a common understanding of the knowledge, skills, attitudes and values necessary to shape the future towards 2030

Page 5

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Expansion of Personalised Learning provision

Broader academic co-curriculum

Managing lockdown

Well Being

To develop empowered and emotionally secure young people with the ability to manage the demands of modern life.

What we will do to achieve this

Actions taken

Improve general care

Mental wellbeing focus

Uniformity across Prep and College

Managing lockdown

3 UNICEF UK Rights Respecting Schools are communities rooted in equality, dignity, respect, non-discrimination and participation

Page 6

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Sport

To embed in young people a life-long appreciation of participation, performance, health and wellbeing through sporting activity.

What we will do to achieve this

Actions taken

Extra-curricular

To foster in young people passions and interests and a value of participation, leadership, responsibility, creativity, service, teamwork and healthy lifestyles.

What we will do to achieve this

Actions taken

Partnerships

To place Mount Kelly firmly within a network that enhances the educational experience of our pupils and ensures the School is a force for good beyond its own walls.

What we will do to achieve this

Page 7

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Actions taken

Sustainability

To promote sustainable lifestyles and reduce the School’s carbon footprint.

What we will do to achieve this

Actions taken

Leadership

To realise the Mount Kelly Purpose through outstanding leadership at all levels.

What we will do to achieve this

Actions taken

Page 8

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Stewardship

To ensure that the wellbeing of the Foundation that has been entrusted to us is safeguarded and passed on in robust health for the benefit of future generations.

What we will do to achieve this

Actions taken

Investment

To realise the Mount Kelly Purpose to provide a values-led, life defining education experience through continued investment in our people, infrastructure and facilities.

What we will do to achieve this

Actions taken

Public Benefit

The Trustee confirms it has complied with its duty under section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit and seek to meet the Foundations’ charitable purposes in following its objectives.

Employment

The Foundation employs an average of 214 individuals with a total wage bill of £5,833,552.

Local economy

Page 9

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Swimming

Both the 25m and 50m indoor swimming pools owned and operated by the Foundation are available for public use. During the 2020-21 year there have been 50,120 total attendances.

The Learn to Swim Programme has taught 450 children and 30 adults this year. The pools host 10 swimming clubs, 1 triathlon club, 3 water polo clubs and 2 aqua hockey clubs. The Swim Centre has trained 12 coaches on 1 coaching course, 12 lifeguards on 1 course and delivered 18 Rescue Awards for Swimming Coaches and Teachers on 2 courses. The facilities are available for use by local primary schools and during the 2020-21 year 7 local schools received swimming lessons.

Mount Kelly Swim Centre is also host to residential swim camps and swim schools. The closure of the pools due to Covid-19 restrictions during the year has resulted in a drop off in the number of swimmers in attendance. However, 105 swimmers attended residential camps and 95 swimmers attended Swim School.

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

Sports facilities

A range of facilities are used by local organisations:

All weather pitches Tavistock Hockey Club, Tavistock Rugby Football Club Campus Dartmoor Velo, Tavistock Triathlon, High Five, Archery Club, Spooners and West Dartmoor 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

Partnerships Mount Kelly has entered into agreements with several organisations including: Tavistock Hockey Club Shared financing arrangement for all-weather pitch Tavistock College Athletics track and swimming pool Tavistock Athletics Shared facilities and coaching Tavistock BID Sponsorship of gift card Tamar Energy Community Solar panel installation and management Chelsea Football Club Foundation Creating south west girls’ football hub

Mount Kelly is represented at Tavistock and Devon Chambers of Commerce.

Culture

The Mount Kelly Choral Society and Tavistock Festival collaboration will be re-established after the pandemic, as will the cycle of concerts at the 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

The Trustee’s policy, 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 to its move towards a policy of granting a greater proportion of means-tested bursary awards, making such awards this year to the value of £833,411 (2020: £786,536).

Page 10

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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 Adventure Playground at Mount Kelly Prep School was a key project during the last year, with construction completed during 2020-21; the playground is now open for use by pupils.

Review of Achievements and Performance for the Year

Operational Performance of the School

In the academic year 2020-21 Mount Kelly had a total of 601 pupils on-roll, maintaining an increase of over 30% since the foundation of Mount Kelly in 2014. There are currently 625 pupils on roll for the 2021-22 year cementing the growth for a further year.

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, 31% of papers taken were awarded an A, 54% were graded A-A and 73% A*-B, all of which are well above the national average. 83% 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. 47% of all grades awarded were 9-7, almost twice the national figure, and 94% of all examinations taken were awarded 9-4. 97% of Mount Kelly pupils were awarded grades 9-8.

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

2020-21 was not a full season for swim pupils, however there were still notable achievements, with 120 (2020: 103) pupils qualifying for regionals. 50 Mount Kelly swimmers also qualified for the 2021 British Championships. Other successes include:

The School is 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.

2020-21 saw the launch of the partnership with Chelsea FC Foundation to launch a girls football programme. The team were unbeaten over the summer and a number of fixtures are scheduled for the 2021-22 year.

Our youngest sportsmen and women receive much improved and regular quality coaching and the overall quality of the 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 caliber, performing to our own pupils and to the wider community. This programme has naturally been curtailed during Covid-19 restrictions but will return to the school at the earliest opportunity.

Page 11

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Outdoor pursuits remain an important element of Mount Kelly’s extra-curricular life, although restrictions have seriously curtailed this activity over the last 18 months. As the School returns to some sort of normality, pupils in Years 6, 7 and 8 have been most fully engaged in the Learning Outside the Classroom programme, spending time during the summer term learning in the natural environment, and the addition of sail training on Olga , the School’s 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.

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 that had been in place, and the introduction of BTEC Performing Arts has given pupils another avenue through which their passions can be developed.

The Trustee would like to thank all involved with the Foundation for going the extra mile during the pandemic year.

Future Developments

The next five years will see the implementation of the Strategic Plan, which was launched during 2020-21. The strategy gives clear direction to the Charity and to continue to build on the quality of the educational experience at Mount Kelly and within the broader strategic imperative of ensuring commercial sustainability.

Financial Review

The Statement of Financial Activities for the year is set out on page 18 of the financial statements. Incoming resources were £10,019,121 (2020: 9,029,544). The primary source of income in the year was the receipt of school fees.

The total net movement in funds for the year was a surplus of £494,788 (2020: deficit of £176,623). The total net movement of unrestricted funds was £134,339 (2020: deficit of £172,506). The total net movement of restricted funds was £319,630 after £101,882 revaluation gains on investments (2020: £23,512 after £6,268 revaluation losses on investments). The total net movement of endowment funds was £40,819 after revaluation gains on investments of £66,805 (2020: deficit of £27,629 after revaluation losses of £26,070). Note 6 details the total expenditure on the various elements of the Foundations’ charitable activities. Details of the net movement in restricted funds are given in note 16.

Going Concern

The Trustee has continued to assess the impact of the COVID-19 outbreak and what impact it will have on the ongoing operations of the charity. The school has continued to provide teaching throughout the year and pupil recruitment remains strong for the academic year ahead.

The Trustee has reviewed the current position and does not anticipate any material changes to the operations of the School. In light of this, the Trustee is confident that the Charity has adequate resources in place and consider it appropriate for the financial statements to be prepared on a going concern basis.

Reserves Policy

The reserves policy of the Foundation is to maintain free reserves equal to approximately one full term’s expenditure. Use of reserves should always be planned and approved in advance by the Trustee and should be accompanied by a clear business case, articulating, as far as possible, how the funds are intended to be used. The policy is reviewed annually.

At the year end, total unrestricted reserves held by the Foundation amounted to £14,067,748 (2020: £13,933,409). The restricted reserves held by the Foundation were £2,684,379 (2020: £2,364,749). The endowment reserves held by the Foundation were £616,764 (2020: £575,945).

Page 12

THE MOUNT KELLY FOUNDATION

TRUSTEE’S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Risk Management

The Trustee has assessed the major risks to which the Charity is exposed as including, failure to meet legal requirements, negative publicity, too few sources of income, exposure to fraud and not having adequate insurance cover.

The Trustee has reviewed these areas of potential risk and concluded that, operationally, these risks are significantly mitigated; record keeping is performed by the Mount Kelly Foundation which has adequate internal controls, insurance cover is reviewed every year and a lawyer is on hand when needed. The exposure to a loss of income was taken into account when the investments and reserves policies were agreed.

Investment Policy and Objectives

The Trustee is responsible for the oversight of the implementation of the investment policy and monitoring the performance of investments. The Board seeks professional advice when required. The Board gives guidance as to the balance required between income and capital growth, risk parameters and the investment strategy having due regard to the law and regulations on the investment of charitable assets.

The investment policy of the Foundation is to generate a positive financial return on funds over a medium to long term period through a balanced portfolio with a low risk profile and low capital volatility.

The investments are managed by Brewin Dolphin Limited.

Statement of Trustee’s Responsibilities

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 10 December 2021 and signed on its behalf by:

K Lewis Chair of Mount Kelly Foundation Governors

AM Grove Chair of Finance and General Purposes Committee

Page 13

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 2021 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

In auditing the financial statements, we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 14

THE MOUNT KELLY FOUNDATION

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

Other information

The other information comprises the information included in the Trustee's Report and Financial Statements other than the financial statements and our Auditors' report thereon. The Trustee is responsible for the other information contained within the Trustee's Report and Financial Statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of the Trustee

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.

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

Page 15

THE MOUNT KELLY FOUNDATION

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

-the nature of the sector, control environment and Group performance;

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue, management override of controls using manual journal entries, purchase ledger and payroll, and identified the greatest potential for fraud as incorrect recognition of revenue and management override using manual journal entries.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act, the Charities SORP and the Charities Act.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included safeguarding regulations, data protection regulations, occupational health and safety regulations, education and inspections legislation, and employment legislation. Our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Page 16

THE MOUNT KELLY FOUNDATION

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

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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.

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 Salt Quay House 4 North East Quay Sutton Harbour Plymouth PL4 0BN Date: 17 December 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 2021

Note
Income and endowments
from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments
5
Total income and
endowments
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income/(expenditure)
before net gains/(losses)
on investments
Net gains/(losses) on
investments
Net income/(expenditure)
before taxation
Net income/(expenditure)
Transfers between funds
16
Total transfers
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried
forward		 Endowment
funds
2021

£
-
-
-
-
-
-
-
-
-
66,805


Restricted
funds
2021

£

133,511

-

-
20,319
153,830

-

47,716
47,716

106,114

101,882

207,996


Unrestricted
funds
2021

£

5,790

9,137,600

721,901

-

9,865,291

801,982

8,843,322


9,645,304

219,987

-


219,987


Total
funds
2021

£

139,301

9,137,600

721,901

20,319


10,019,121

801,982

8,891,038



9,693,020

326,101

168,687



494,788


Total
funds
2020

£

105,210

8,408,518

483,540

32,276


9,029,544

702,888

8,470,941


9,173,829

(144,285)

(32,338)


(176,623)


(176,623)

-

-


(176,623)

17,050,726

(176,623)
16,874,103
66,805
66,805
(25,986)
207,996

111,634
219,987

(85,648)
494,788

-
(25,986)
111,634
(85,648)
-
40,819
319,630
134,339
494,788

575,945
40,819


2,364,749

319,630


13,933,409

134,339


16,874,103

494,788
616,764
2,684,379
14,067,748		 17,368,891

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

The notes on pages 22 to 39 form part of these financial statements.

Page 18

THE MOUNT KELLY FOUNDATION

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2021

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		 90,247
1,358,457
3,299,654		 2021
£
21,018,643
1,387,965
22,406,608

91,776

851,056

3,615,509


4,558,341

(6,075,614)

(1,428,434)

20,978,174
(3,609,283)
17,368,891
17,368,891
616,764
2,684,379
14,067,748
17,368,891		 2020
£
21,143,159
996,405
22,139,564





(1,517,273)
4,748,358
(6,176,792)
20,622,291
(3,748,188)
16,874,103
16,874,103

575,945
2,364,749
13,933,409
16,874,103

The financial statements were approved and authorised for issue by the Trustee on 10 December 2021 and signed on its behalf by:

K Lewis AM Grove

Chair of Mount Kelly Foundation Governors Chair of Finance and General Purpose Committee

The notes on pages 22 to 39 form part of these financial statements.

Page 19

THE MOUNT KELLY FOUNDATION

CHARITY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 AUGUST 2021

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
Total funds		 21,957
1,357,788
3,060,573		 2021
£
21,018,643
1,387,965
22,406,608

24,588

921,108

3,476,382


4,422,078

(5,984,336)

(1,610,341)

20,796,267
(3,609,283)
17,186,984
17,186,984
616,764
2,684,379
13,885,841
17,186,984		 2020
£
21,142,471
996,405
22,138,876





(1,562,258)
4,440,318
(6,050,659)
20,576,618
(3,748,188)
16,828,430
16,828,430

575,945
2,364,749
13,887,736
16,828,430

The Charity's net movement in funds for the year was £358,554 (2020 - £(170,512)).

The financial statements were approved and authorised for issue by the Trustee on 10 December 2021 and signed on its behalf by:

AM Grove

K Lewis

Chair of Finance and General Purpose Committee

Chair of Mount Kelly Foundation Governors

The notes on pages 22 to 39 form part of these financial statements.

Page 20

THE MOUNT KELLY FOUNDATION

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Note
Cash flows from operating activities
Net cash used in operating activities
19
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of investments
Purchase of tangible fixed assets
Purchase of investments
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Repayments of finance leases
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
The notes on pages 22 to 39 form part of these financial statements		 2021
£
766,452		 2020
£

372,109
20,319
263,580
(403,746)
(486,454)
32,276

163,236

(156,537)

(160,175)
(606,301)
(121,200)
(156,390)
(10,339)
(129,583)

(10,144)
(166,729)
(139,727)
(6,578)
3,656,840
111,182

3,545,658
3,650,262 3,656,840

Page 21

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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

The Trustee has continued to assess the impact of the COVID19 outbreak and what impact it will have on the ongoing operations of the charity. The school has continued to provide teaching throughout the year and pupil recruitment remains strong for the academic year ahead.

The Trustee has reviewed the current position and does not anticipate any material changes to the operations of the school. In light of this, the Trustee is confident that the Charity has adequate resources in place and consider it appropriate for the financial statements to be prepared on a going concern basis.

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.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Page 22

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 GOVERNMENT GRANTS

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

1.6 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
Motor vehicles - 15% straight line
Fixtures and fittings - 10% straight line
Other fixed assets - 6.67 - 25% straight line

1.7 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.

1.8 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.

1.9 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.

Page 23

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. Accounting policies (continued)

1.10 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.

1.11 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.

1.12 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.

1.13 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.

1.14 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 2021

2. Income from donations and legacies

Restricted
funds
2021
£
Donations
133,511
TOTAL 2020
91,813
3.
Income from charitable activities
Tuition fees: Gross fees
Less Bursaries, Scholarships and other discounts
Other Educational Income: After school care
Registration fees
Other ancillary income: Interest on unpaid fees
Furlough grants
Income from extra activities
4.
Income from other trading activities
Income from non charitable trading activities
Sales
Rent receivable
Other commercial activities
Commercial swimming		 Restricted
funds
2021
£
133,511		 Unrestricted
funds
2021
£

5,790		 Total
funds
2021
£

139,301		 Total
funds
2020
£
105,210




Total
funds
2020
£

10,273,155

(2,455,158)

2,531

16,549

2,455

488,236

80,750
91,813
13,397
105,210


Unrestricted
funds
2021
£
11,983,480
(3,164,999)
575
17,522
816
158,927
141,279

Total
funds
2021
£

11,983,480

(3,164,999)

575

17,522

816

158,927

141,279
9,137,600
9,137,600		 8,408,518

Unrestricted
funds
2021
£
2,893
227,228
187,113
304,667

Total
funds
2021
£

2,893

227,228

187,113

304,667
Total
funds
2020
£

1,714

6,545

187,263

288,018
721,901
721,901		 483,540

Page 25

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

5. Investment income

Investment Income Restricted
funds
2021
£
20,319		 Total
funds
2021
£

20,319		 Total
funds
2020
£
32,276

6. Analysis of expenditure by activities

Activities
undertaken
directly
2021
Support
costs
2021
£
£
Educational
4,469,351
-
Domestic & Catering
-
1,786,763
Maintenance
-
833,235
Administration
-
1,618,014
Finance Costs
-
68,331
Governance
-
115,344
4,469,351
4,421,687
TOTAL 2020
4,409,016
4,061,925
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		 Activities
undertaken
directly
2021
£
4,469,351
-
-
-
-
-		 Support
costs
2021
£

-

1,786,763

833,235

1,618,014

68,331

115,344		 Total
funds
2021
£

4,469,351

1,786,763

833,235

1,618,014

68,331

115,344
 Total
funds
2020
£

4,409,016

1,557,467

767,896

1,508,075

195,966

32,521
4,469,351
4,421,687
8,891,038		 8,470,941




2020
£

12,300
5,229
4,409,016
4,061,925
8,470,941


2021
£
12,060
7,540

7. Auditors' remuneration

Page 26

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

8. Staff costs

Wages and salaries
Social security costs
Contribution to pension schemes		 Group
2021
£
4,767,717
417,986
647,849		 Group
2020
£

4,525,474

394,461

612,782		 Charity
2021
£

4,425,312

399,298

640,367
 Charity
2020
£

4,213,024

379,672

606,583
5,833,552
5,532,717
5,464,977		 5,199,279

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

Education
Domestic
Administration
Maintenance
Subsidiary Companies		 Group
2021
No.
109
28
21
20
36
 Group
2020
No.

106

28

21

20

28
214 203

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

Group Group
2021 2020
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 1

9. Trustee's remuneration and expenses

During the year, the Trustee received no remuneration or other benefits (2020 - £NIL-).

During the year ended 31 August 2021, no Trustee expenses have been incurred (2020 - £NIL).

Page 27

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10.
Tangible fixed assets
GROUP
COST OR VALUATION
At 1 September 2020
Additions
Disposals
At 31 August 2021
DEPRECIATION
At 1 September 2020
Charge for the year
On disposals
At 31 August 2021
NET BOOK VALUE
At 31 August 2021
At 31 August 2020		 Freehold
property
£
20,756,769
39,035
-		 Motor
vehicles
£

112,731

11,940

-		 Fixtures and
fittings
£

2,625,571

352,771

(88,162)		 3G pitch
£

967,843

-

-
 Total
£

24,462,914

403,746

(88,162)
20,795,804
124,671
2,890,180
967,843
24,778,498
1,302,905
250,163
-
84,458

6,693

-
1,516,854

222,267

(82,188)
415,538

43,165

-
3,319,755

522,288

(82,188)
1,553,068
91,151
1,656,933
458,703
3,759,855
19,242,736
33,520
1,233,247
509,140		 21,018,643

19,453,864


28,273


1,108,717


552,305
21,143,159

Page 28

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10. Tangible fixed assets (CONTINUED) CHARITY

COST OR VALUATION
At 1 September 2020
Additions
Disposals
At 31 August 2021
DEPRECIATION
At 1 September 2020
Charge for the year
On disposals
At 31 August 2021
NET BOOK VALUE
At 31 August 2021
At 31 August 2020		 Freehold
property
£
20,756,769
39,035
-		 Motor
vehicles
£

112,731

11,940

-		 Fixtures and
fittings
£

2,567,622

352,771

(88,162)		 3G pitch
£

967,843

-

-
 Total
£

24,404,965

403,746

(88,162)
20,795,804
124,671
2,832,231
967,843
24,720,549
1,302,905
250,163
-
84,458

6,693

-
1,459,593

221,579

(82,188)
415,538

43,165

-
3,262,494

521,600

(82,188)
1,553,068
91,151
1,598,984
458,703
3,701,906
19,242,736
33,520
1,233,247
509,140		 21,018,643

19,453,864


28,273


1,108,029


552,305
21,142,471

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

Plant, F&F and equipment Group
2021
£
23,609
Group

2020

£

32,753

Page 29

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

11.
Fixed asset investments
GROUP AND CHARITY
COST OR VALUATION
At 1 September 2020
Additions
Disposals
Revaluations
Transfers between classes
At 31 August 2021
At 31 August 2021
AT 31 AUGUST 2020
12.
Stocks
Finished goods and goods for resale
13.
Debtors
DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Fees		 Listed
investments
£
955,074
486,454
(263,580)
168,686
(36,002)
1,310,632
1,310,632
955,074
Group
Group
2021
2020
£
£
90,247
91,776
Group
Group
2021
2020
£
£
138,790
14,481
-
-
8,581
84,004
114,848
137,933
1,096,238
614,638
1,358,457
851,056		 Listed
investments
£
955,074
486,454
(263,580)
168,686
(36,002)		 Listed
investments
£
955,074
486,454
(263,580)
168,686
(36,002)



Cash
account
held as part
of
investment
portfolio
£
41,331
-
-
-
36,002
 Total
£

996,405

486,454

(263,580)

168,686

-
1,310,632 77,333 1,387,965

1,310,632 77,333
1,387,965
955,074 41,331 996,405

Charity
2021
£

21,957

Charity

2020

£

24,588

Charity

2020

£

-

147,045

25,749

133,676

614,638


921,108

Group
2021
£
138,790
-
8,581
114,848
1,096,238

Group
2020
£

14,481

-

84,004

137,933

614,638

Charity
2021
£

-

139,525

8,581

113,444

1,096,238
1,358,457
851,056
1,357,788

Page 30

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14.
Creditors: Amounts falling due within one year
Group
2021
£
Bank loans
299,635
Advanced fees
259,548
Trade creditors
232,268
Other taxation and social security
148,811
Obligations under finance lease and hire
purchase contracts
13,270
Fees received in advance
3,412,301
Other creditors
1,516,970
Accruals and deferred income
293,989
6,176,792
Group
2021
£
Fees received in advance at 1 September
3,054,302
Resources deferred during the year
3,412,301
Amounts released from previous periods
(3,054,302)
15.
Creditors: Amounts falling due after more than one year
Group
2021
£
Bank loans
3,609,283
3,412,301		 14.
Creditors: Amounts falling due within one year
Group
2021
£
Bank loans
299,635
Advanced fees
259,548
Trade creditors
232,268
Other taxation and social security
148,811
Obligations under finance lease and hire
purchase contracts
13,270
Fees received in advance
3,412,301
Other creditors
1,516,970
Accruals and deferred income
293,989
6,176,792
Group
2021
£
Fees received in advance at 1 September
3,054,302
Resources deferred during the year
3,412,301
Amounts released from previous periods
(3,054,302)
15.
Creditors: Amounts falling due after more than one year
Group
2021
£
Bank loans
3,609,283
3,412,301		 Group
2020
£

296,507

433,297

185,596

104,892

23,609

3,054,302

1,549,312

428,099		 Charity
2021
£

299,635

259,548

203,107

118,961

13,270

3,412,301

1,507,239

236,598







Charity
2020
£
296,507
433,297
165,485
99,138
23,609
3,054,302
1,540,331
371,667
5,984,336
6,176,792
6,075,614
6,050,659

Group
2021
£
3,054,302
3,412,301
(3,054,302)
Group
2020
£

2,968,477

3,054,302

(2,968,477)
Charity
2021
£

3,054,302

3,412,301

(3,054,302)
Charity
2020
£

2,968,477

3,054,302

(2,968,477)
Charity
2020
£

3,748,188


3,054,302
3,412,301
3,054,302
3,412,301
Group
2020
£

3,748,188

 Charity
2021
£

3,609,283

Page 31

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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		 Balance at 1
September
2020
£

13,933,409
575,945		 Income
£

9,865,291		 Expenditure
£

(9,645,304)		 Transfers
in/out
£

(85,648)		 Gains/
(Losses)
£

**- **		 Balance at
31 August
2021
£
14,067,748
616,764
488,454
20,319
450,482
207,463
1,003,470
486,591
27,600
2,684,379


-

-

(25,986)

66,805

419,869
32,276
139,764
212,259
1,025,769
506,612
28,200

2,364,749		 -
20,319
133,511
-
-
-
-
153,830		 -
-
-
(4,796)
(22,299)
(20,021)
(600)
(47,716)
(2,730)
(32,276)
146,640
-
-
-
-
111,634

71,315
-
30,567
-
-
-
-

101,882

TOTAL OF FUNDS 16,874,103 10,019,121 (9,693,020) - 168,687 17,368,891

Page 32

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

16.
Statement of funds (continued)
Statement of funds - prior year
Balance at
1 September
2019
£
Income
£
UNRESTRICTED
FUNDS
General Funds
14,105,915
8,905,455
ENDOWMENT
FUNDS
Endowment
Funds
603,574
-
RESTRICTED
FUNDS
Scholarships and
bursaries finds
427,636
-
Investment
income
45,094
32,276
Bursary Fund
47,951
91,813
Music school
fund
217,055
-
Swimming pool
fund
1,048,068
-
Hockey pitch
fund
526,633
-
Old Mount
Kellian bridge
donation
28,800
-

2,341,237
124,089		 16.
Statement of funds (continued)
Statement of funds - prior year
Balance at
1 September
2019
£
Income
£
UNRESTRICTED
FUNDS
General Funds
14,105,915
8,905,455
ENDOWMENT
FUNDS
Endowment
Funds
603,574
-
RESTRICTED
FUNDS
Scholarships and
bursaries finds
427,636
-
Investment
income
45,094
32,276
Bursary Fund
47,951
91,813
Music school
fund
217,055
-
Swimming pool
fund
1,048,068
-
Hockey pitch
fund
526,633
-
Old Mount
Kellian bridge
donation
28,800
-

2,341,237
124,089		 16.
Statement of funds (continued)
Statement of funds - prior year
Balance at
1 September
2019
£
Income
£
UNRESTRICTED
FUNDS
General Funds
14,105,915
8,905,455
ENDOWMENT
FUNDS
Endowment
Funds
603,574
-
RESTRICTED
FUNDS
Scholarships and
bursaries finds
427,636
-
Investment
income
45,094
32,276
Bursary Fund
47,951
91,813
Music school
fund
217,055
-
Swimming pool
fund
1,048,068
-
Hockey pitch
fund
526,633
-
Old Mount
Kellian bridge
donation
28,800
-

2,341,237
124,089

Expenditure
£

(9,126,113)

Transfers
in/out
£

48,152


Gains/
(Losses)
£

-


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

603,574

-

-

(1,559)

(26,070)

427,636
45,094
47,951
217,055
1,048,068
526,633
28,800
-

32,276

91,813

-

-

-

-
-

-

-

(4,796)

(22,299)

(20,021)

(600)

(1,499)

(45,094)

-

-

-

-

-


(6,268)

-

-

-

-

-

-
2,341,237
124,089
(47,716)
(46,593)
(6,268)

TOTAL OF FUNDS 17,050,726 9,029,544 (9,173,829) - (32,338) 16,874,103

Page 33

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17. Summary of funds

Summary of funds - current year

Balance at 1
September
2020
£
Income
£
General funds
13,933,409
9,865,291
Endowment
funds
575,945
-
Restricted funds
2,364,749
153,830

16,874,103
10,019,121
Summary of funds - prior year
Balance at
1 September
2019
£
Income
£
General funds
14,105,915
8,905,455
Endowment
funds
603,574
-
Restricted funds
2,341,237
124,089

17,050,726
9,029,544		 Balance at 1
September
2020
£
13,933,409
575,945
2,364,749
 Income
£

9,865,291

-

153,830		 Expenditure
£

(9,645,304)

-

(47,716)		 Transfers
in/out
£

(85,648)

(25,986)

111,634		 Gains/
(Losses)
£

-

66,805

101,882
 Balance at
31 August
2021
£

14,067,748

616,764

2,684,379
16,874,103 10,019,121
(9,693,020)
-
168,687		 17,368,891


Expenditure
£

(9,126,113)

-

(47,716)
Transfers
in/out
£

48,152

(1,559)

(46,593)
Gains/
(Losses)
£

-

(26,070)

(6,268)
Balance at
31 August
2020
£

13,933,409

575,945

2,364,749
17,050,726 9,029,544
(9,173,829)
-		 (32,338) 16,874,103

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Page 34
Endowment
funds
2021
£
Tangible fixed assets
-
Fixed asset investments
616,764
Current assets
-
Creditors due within one year
-
Creditors due in more than one year
-
TOTAL
616,764		 Endowment
funds
2021
£
-
616,764
-
-
-		 Restricted
funds
2021
£

1,913,178

771,201

-

-

-		 Unrestricted
funds
2021
£

19,105,465

-

4,748,358

(6,176,792)

(3,609,283)
 Total
funds
2021
£

21,018,643

1,387,965

4,748,358

(6,176,792)

(3,609,283)
616,764
2,684,379
14,067,748		 17,368,891


THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

18. Analysis of net assets between funds (CONTINUED)

Analysis of net assets between funds - prior year

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
-
-
-		 Restricted
funds
2020
£

1,944,288

420,461

-

-

-		 Unrestricted
funds
2020
£

19,198,871

-

4,558,340

(6,075,614)

(3,748,188)
 Total
funds
2020
£

21,143,159

996,406

4,558,340

(6,075,614)

(3,748,188)
575,945
2,364,749
13,933,409		 16,874,103

19. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial
Activities)
ADJUSTMENTS FOR:
Depreciation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Decrease in stocks
Increase in debtors
Increase in creditors
NET CASH PROVIDED BY OPERATING ACTIVITIES		 Group
2021
£
494,788
522,288
168,687
(20,319)
1,529
(507,401)
106,880
 Group
2020
£

(176,623)

496,852

(32,338)

(32,276)

21,751

(61,958)

156,701
766,452 372,109

Page 35

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

20. Analysis of cash and cash equivalents

Cash in hand
Held within investment funds
Bursary Funds
TOTAL CASH AND CASH EQUIVALENTS		 Group
2021
£
3,299,654
77,333
273,275
 Group
2020
£

3,475,745

41,331

139,764
3,650,262 3,656,840

21. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year
Finance leases		 At 1
September
2020
£
3,615,509
(296,507)
(3,748,188)
(23,609)		 Cash flows
£

(315,855)

(3,128)

138,905

10,339
 At 31
August
2021
£

3,299,654

(299,635)

(3,609,283)

(13,270)
(452,795)
(169,739)		 (622,534)

22. Pension commitments

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

Teachers' Pension Scheme

The School participates in the Teacher's 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 £66,517 (2020 - £62,179) was accrued in respect of contributions to this scheme.

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in academies. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future

Page 36

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

22. Pension commitments (CONTINUED)

costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

-employer contribution rates set at 23.68% of pensionable pay (including a 0.08% administration levy) - total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million, giving a notional past service deficit of £22,000 million

The next valuation result is due to be implemented from 1 April 2023.

A copy of the valuation report and supporting documentation is on the Teachers' Pensions website (https://www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuation-report.aspx).

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. the Charity has accounted for its contributions to the scheme as if it were a defined contribution scheme. The Charity has set out above the information available on the scheme.

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.

Contributions totalling £13,622 (2020 - £11,171) were payable at the year-end.

23. Operating lease commitments

At 31 August 2021 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
Later than 5 years		 Group
2021
£
74,447
172,646
4,500		 Group
2020
£

27,377

29,927

-		 Charity
2021
£

74,447

172,646

4,500
 Charity
2020
£

27,377

29,927

-
251,593
57,304
251,593		 57,304

Page 37

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 are 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 £35,869 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 £231,643 in the year after paying intra group rent to the Mount Kelly Foundation of £37,500. The Mount Kelly Foundation 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 income from letting out of the Foundation's estate. The majority of this activity is over the summer and was therefore not impacted by COVID restrictions, to the same extent that it was in the previous year. The company generated a profit of £186,052 in the year.

The following were subsidiary undertakings of the Charity:

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 - (35,869) (35,869) (53,470)
Mount Kelly Swimming Limited 583,955 (583,955) - -
Mount Kelly Enterprises Limited 415,085 (229,033) 186,052 235,378

Page 38