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2022-08-31-accounts

Charity number: 306716

THE MOUNT KELLY FOUNDATION

TRUSTEE'S REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

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 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 - 40

THE MOUNT KELLY FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022

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
Mr Nicholas Andrews (Resigned 6 June 2022)
Dr Michael Atkinson
The Reverend Prebendary Roger Carlton, Nominated Governor of the Dean and
Chapter of Exeter Cathedral
Mrs Wendy Davis
Mr Alistair Grove
Mr Keith Hollinshead
Mr James Kitson
Mrs Amanda Le Page
Mrs Kerstin Lewis, Nominated Governor of the Bishop of Exeter
Mr Andrew Main
Mr Ian MacQueen, Chair (Appointed 14 October 2022)
Mrs Hilary Monk
Mr Niel O'Neill
Mr Rob Ormsby
Mr David Parlby
Mr Julian Trahair
Mrs Claire Weston (Resigned 24 October 2022)
Dr Kevin C P Wilson (Resigned 15 October 2021)
Mr Julian Whiteley
Officers Mr G T Ayling, Principal of the Foundation
Ms J Paine, Director of Finance and Operations
Independent auditors Bishop Fleming LLP
Chartered Accountants
Salt Quay House
4 North East Quay
Sutton Harbour
Plymouth
PL4 0BN
Bankers Natwest Corporate Services Team
PO BOX 33
St Andrews Cross
Plymouth
PL4 0YH

Page 1

THE MOUNT KELLY FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEE AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 2022

TRUSTEE¶S REPORT

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 2021 to 31 August 2022.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The Charity provides education in Tavistock for children from the ages 3-18. It is exploring 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. *RYHUQRUV¶�WUDLQLQJ�LV� enhanced through attendance at courses, webinars and the circulation of appropriate briefs.

Governor Meetings

The Governors meet as a full Board at least once each term and have a full complement of sub-committees. During the year there were a total of 40 meetings (2021: 49).

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�VXEVLGLDULHV�FDUU\�RXW�QRQ-charitable trading activities on behalf of the Charity.

Compliance Inspection

The School passed a no-notice ISI compliance inspection in November 2021.

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�IDcilities 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 its responsibilities under the law and opposes all discrimination. Further details can EH�IRXQG�LQ�WKH�6FKRRO¶V�3XSLOV�DQG�6WDII�(TXDOLW\�3ROLcies.

Page 3

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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

$V�DQ�HGXFDWLRQDO�FKDULW\�IRU�FKLOGUHQ��0RXQW�.HOO\¶V�SULQFLSDO�DFWLYLW\�LV�WKH�HGXFDWLRQ�DQG�SDVWRUDO�FDUH�RI�LWV� 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. 0RXQW�.HOO\¶V�NH\�IHDWXUHV�DUH�DV�IROORZV�

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.

Page 4

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 2021-22:

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

Well Being

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

1 A Thinking School , accredited by the University of Exeter, takes an explicit, evidence informed, whole VFKRRO�DSSURDFK�WR�GHYHORSLQJ�SXSLOV¶�PHWDFRJQLWLYH�FDSDELOLW\�DQG�LQWHOOLJHQW�OHDUQLQJ�EHKDYLRXUV

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

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THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

What we will do to achieve this

Actions taken

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

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

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THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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

Actions taken

Sustainability

7R�SURPRWH�VXVWDLQDEOH�OLIHVW\OHV�DQG�UHGXFH�WKH�6FKRRO¶V�FDUERQ�IRRWSULQW�

What we will do to achieve this

Actions taken

Leadership

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

Page 7

THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

What we will do to achieve this

Actions taken

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

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THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Actions taken

Public Benefit

The Trustee confirms it has complied with its duty under section 17 of the Charities Act 2011 to have due UHJDUG�WR�WKH�&KDULW\�&RPPLVVLRQ¶V�JHQHUDO�JXLGDQFH�RQ�SXEOLF�EHQHILW�DQG�VHHN�WR�PHHW�WKH�)RXQGDWLRQV¶� charitable purposes in following its objectives.

Employment

The Foundation employs an average of 225 individuals with a total wage bill of £6,185,563.

Local economy

Swimming

Both the 25m and 50m indoor swimming pools owned and operated by the Foundation are available for public use. During the 2021-22 year there have been 78,000 total attendances.

The Learn to Swim Programme has taught 445 children and 32 adults this year. The pools host 5 swimming clubs, 1 triathlon club for weekly sessions as well as 7 other swimming clubs, 3 surf lifesaving clubs and 1 free diving club. The Swim Centre has trained 12 coaches on 1 coaching course and 24 lifeguards on 2 courses. The facilities are available for use by local primary schools and during the 2021-22 year 16 local schools received swimming lessons.

The Swim Centre has also hosted several events to include 2 triathlons, a Swimathon National Charity event, 2 Pony Club Tetrathlons, English School Association Regional Swimming Gala, National Arena Swimming League gala, Mark Foster Swim Academy and Ocean Walker and Total Immersion Swimming Workshops.

Mount Kelly Swim Centre is also host to residential swim camps and swim schools. 440 swimmers attended residential camps from 13 different clubs from across the country and 198 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, Horrabridge 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

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THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Badminton Club, Moorland Maidens, Yelverton Cricket Club

Sports fields Football camps Football camps
Courts Deep West 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
&UHDWLQJVRXWKZHVWJLUOV¶IRRWEDOOKXE and commercial residential
Foundation camps

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

Culture

The Mount Kelly Choral Society and Tavistock Festival collaboration has been re-established after the pandemic, as have 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

7KH�7UXVWHH¶V�SROLF\��LQ�OLQH�ZLWK�WKDW�RI�RWKHU�LQGHSHQGHQW�VFKRROV��LV�WR�DZDUG�VRPH�JUDQWV�RQ�WKH�EDVLV�RI� 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 £804,811 (2021: £833,411).

Volunteers

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Operational Performance of the School

In the academic year 2021-22 Mount Kelly had a total of 650 pupils on-roll, maintaining an increase of over 8% on the previous year. There are currently 636 pupils on roll for the 2022-23 year, cementing our strategic objective plan to optimise our facilities and pupils across both sites.

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, 28% of examination papers taken were awarded an A, 51% were graded A-A and 68% A*-B, all of which are well above the national average. 77% of pupils secured their places at their first choice of university, including 43% moving on to Russell Group universities as well as impressive institutions overseas.

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THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

There was another outstanding set of GCSE results this year. 53% of all grades awarded were 9-7, almost twice the national figure, and 97% of all examinations taken were awarded 9-4. 34% 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.

2021-22 was the first full season followLQJ�WKH�SDQGHPLF�DQG�KDV�EHHQ�0RXQW�.HOO\�6ZLPPLQJ¶V�PRVW� successful season to date. For the first time Mount Kelly finished as a Top Club at the British Summer Championships held in July and retained the National Arena League title that was first won in 2020. There has been strong representation on the junior and senior international stage.

102 Mount Kelly swimmers also qualified for the 2022 British and Home Nation Summer Nationals. Other notable successes include:

The School is also making significant progress across a wider range of sporting commitment. The games programme has grown, with an impressive range of sporting options and more fixtures across the range enabling more pupils to represent the School.

2021-22 saw the continued success of the Girls¶ Performance Football Programme in partnership with Chelsea FC Foundation. The team won the Independent Schools Football Association National Girls U18 Seven-a-Side Tournament, with 15 schools competing at Charterhouse School. The final was of an extremely high standard.

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

Music continues to be a strength 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 started to return to the school following the pandemic.

2XWGRRU�SXUVXLWV�UHPDLQ�DQ�LPSRUWDQW�HOHPHQW�RI�0RXQW�.HOO\¶V�H[WUD-curricular life. With pandemic restrictions lifting, activity has grown during the year. 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 , a Plymouth based cutter, has added an extra dimension to our offering. 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.

In Performing Arts, a significant number of pupils this year once again took LAMDA examinations with Distinction passes at Grade 8. Having been postponed by covid, the main College drama production of the

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THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

year, Blue Stockings , was brought to the stage in April and The Merchant of Venice was performed at Tavistock Guildhall as the centerpiece of our Shakespeare Festival.

The Trustee would like to thank all involved with the Foundation for their continued hard work and ongoing success.

Future Developments

The next five years will see the continued implementation of the Strategic Plan. 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 £11,368,780 (2021: £10,019,121). 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 £693,714 (2021: surplus of £494,788). The total net movement of unrestricted funds was £729,421 (2021: surplus of £134,339). The total net movement of restricted funds was £42,770 deficit after £44,235 revaluation losses on investments (2021: £319,630 after £101,882 revaluation gains on investments). The total net movement of endowment funds was £7,063 after revaluation losses on investments of £20,870 (2021: surplus of £40,819 after revaluation gains of £66,805). Note 6 details the total expenditure on the various elements of the FoundationV¶�FKDULWDEOH�DFWLYLWLHV��'HWDLOV�RI� the net movement in restricted funds are given in note 16.

Going Concern

The Trustee has assessed the impact of the current energy crisis as well as predicted interest rate rises 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 WR�PDLQWDLQ�IUHH�UHVHUYHV�HTXDO�WR�DSSUR[LPDWHO\�RQH�IXOO�WHUP¶V� 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 £14,797,169 (2021: £14,067,748). The restricted reserves held by the Foundation were £2,641,609 (2021: £2,684,379). The endowment reserves held by the Foundation were £623,827 (2021: £616,764).

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 considered when the investments and reserves policies were agreed.

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THE MOUNT KELLY FOUNDATION

TRUSTEE¶S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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.

6WDWHPHQW�RI�7UXVWHH¶V�5HVSRQVLELOLWLHV

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 9 December 2022 and signed on its behalf by:

Ian MacQueen Chair of Mount Kelly Foundation Governors

AM Grove Chair of Finance and General Purposes Committee

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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 2022 which comprise the Consolidated statement of financial activities, the Consolidated statement of financial position, the Charity statement of financial position, 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).

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.

OTHER INFORMATION

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

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THE MOUNT KELLY FOUNDATION

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

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.

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THE MOUNT KELLY FOUNDATION

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

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:

In identifying and assessing risks of material misstatement in respect of irregularies, including fraud and noncompliance with laws and regulations, we considered the following:

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:

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THE MOUNT KELLY FOUNDATION

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

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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

USE OF OUR REPORT

This report is made solely to the charity's Trustee and its directors 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 it 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, its Trustee and directors 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

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 2022

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
6
Total expenditure
Net income before
net (losses)/gains
on investments
Net (losses)/gains on
investments
Net (expenditure)/
income
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
2022
£
-
-
-
-
-
-
-
-
-
(20,870)
(20,870)
27,933
7,063
616,764
7,063
623,827		 Restricted
funds
2022
£
253,880
-
-
10,717
264,597
-
47,716
47,716
216,881
(44,235)
172,646
(215,416)
(42,770)
2,684,379
(42,770)
2,641,609		 Unrestricted
funds
2022
£
127,119
10,158,154
818,910
-
11,104,183
942,850
9,619,395
10,562,245
541,938
-
541,938
187,483
729,421
14,067,748
729,421
14,797,169		 Total
funds
2022
£
380,999
10,158,154
818,910
10,717
11,368,780
942,850
9,667,111
10,609,961
758,819
(65,105)
693,714
-
693,714
17,368,891
693,714
18,062,605		 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
-
494,788
16,874,103
494,788
17,368,891

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 2022

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
Total net assets
Charity funds
Endowment funds
16
Restricted funds
16
Unrestricted funds
16
Total funds		 14,807
2,146,732
4,045,864
6,207,403
(6,217,644)		 2022
£
20,892,575
1,399,435
22,292,010
(10,241)
22,281,769
(4,219,164)
18,062,605
623,827
2,641,609
14,797,169
18,062,605		 90,247
1,358,457
3,299,654
4,748,358
(6,176,792)		 2021
£
21,018,643
1,387,965
22,406,608
(1,428,434)
20,978,174
(3,609,283)
17,368,891
616,764
2,684,379
14,067,748
17,368,891

The financial statements were approved and authorised for issue by the Trustee on 09 December 2022 and signed on their behalf by:

Ian MacQueen

Chair of Mount Kelly Foundation Governors

AM Grove

Chair of Finance and General Purposes Committee

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 2022

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
Total net assets
Charity funds
Endowment funds
Restricted funds
Unrestricted funds
Total funds		 14,807
2,199,945
3,788,783
6,003,535
(6,057,927)		 2022
£
20,892,575
1,399,435
22,292,010
(54,392)
22,237,618
(4,219,164)
18,018,454
585,077
2,844,753
14,588,624
18,018,454		 21,957
1,357,788
3,060,573
4,440,318
(6,050,659)		 2021
£
21,018,643
1,387,965
22,406,608
(1,610,341)
20,796,267
(3,609,283)
17,186,984
616,764
2,684,379
13,885,841
17,186,984

The Charity's net movement in funds for the year was £831,470 (2021 - £358,554).

The financial statements were approved and authorised for issue by the Trustee on 09 December 2022 and signed on their behalf by:

Ian MacQueen

Chair of Mount Kelly Foundation Governors

AM Grove

Chair of Finance and General Purposes Committee

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 2022

Note
Cash flows from operating activities
Net cash provided by operating activities
19
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Proceeds from the sale of investments
Purchase of investments
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Repayments of finance leases
Net cash provided by/(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 40 form part of these financial statements		 2022
£
765,736
10,717
(465,170)
207,079
(283,654)
(531,028)
4,500,000
(3,977,966)
(10,532)
511,502
746,210
3,299,654
4,045,864		 2021
£
436,562
20,319
(403,746)
263,580
(486,454)
(606,301)
-
(135,777)
(10,339)
(146,116)
(315,855)
3,615,509
3,299,654

Page 21

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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 Trustees have continued to assess the impact of inflation and the impact it will have on the ongoing operations of the charity. The school has continued to see increases in pupil numbers despite the increased fee levels each year.

The Trustees have reviewed the current position and does not anticipate any material changes to the operations of the school. In light of this, the Trustees are 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 charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Page 22

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES (continued)

1.4 EXPENDITURE (CONTINUED)

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 2022

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 2022

2. INCOME FROM DONATIONS AND LEGACIES

Restricted
funds
2022
Unrestricted
funds
2022
£
£
Donations
253,880
127,119
TOTAL 2021
133,511
5,790
3.
INCOME FROM CHARITABLE ACTIVITIES
Unrestricted
funds
2022
£
Tuition fees: Gross fees
13,634,657
Less Bursaries, Scholarships and other discounts
(3,673,083)
Other Educational Income: After school care
2,120
Registration fees
16,973
Other ancillary income: Interest on unpaid fees
1,541
Furlough grants
1,734
Income from extra activities
174,212
10,158,154
4.
INCOME FROM OTHER TRADING ACTIVITIES
Income from non charitable trading activities		 Total
funds
2022
£
380,999
139,301
Total
funds
2022
£
13,634,657
(3,673,083)
2,120
16,973
1,541
1,734
174,212
10,158,154		 Total
funds
2021
£
139,301
Total
funds
2021
£
11,983,480
(3,164,999)
575
17,522
816
158,927
141,279
9,137,600
Unrestricted
funds
2022
£
Sales
21,752
Rent receivable
111,668
Other commercial activities
173,234
Commercial swimming
512,256
818,910		 Total
funds
2022
£
21,752
111,668
173,234
512,256
818,910		 Total
funds
2021
£
2,893
227,228
187,113
304,667
721,901

Page 25

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

5. INVESTMENT INCOME

Restricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Investment Income 10,717 10,717 20,319

6. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Activities
undertaken
directly
2022
Support
costs
2022
£
£
Educational
4,687,375
-
Domestic & Catering
-
1,831,303
Maintenance
-
986,347
Administration
-
1,915,962
Finance Costs
-
186,524
Governance
-
59,600
4,687,375
4,979,736
TOTAL 2021
4,469,351
4,421,687
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		 Total
funds
2022
£
4,687,375
1,831,303
986,347
1,915,962
186,524
59,600
9,667,111
8,891,038
2022
£
12,360
9,790		 Total
funds
2021
£
4,469,351
1,786,763
833,235
1,618,014
68,331
115,344
8,891,038
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 2022

8. STAFF COSTS

Wages and salaries
Social security costs
Contribution to pension schemes		 Group
2022
£
5,137,548
482,960
565,055
6,185,563		 Group
2021
£
4,767,717
417,986
647,849
5,833,552		 Charity
2022
£
4,783,904
460,919
553,673
5,798,496		 Charity
2021
£
4,425,312
399,298
640,367
5,464,977

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

Education
Domestic
Administration
Maintenance
Subsidiary Companies		 Group
2022
No.
122
28
24
21
30
225		 Group
2021
No.
109
28
21
20
36
214

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

Group Group
2022 2021
No. No.
In the band £60,001 - £70,000 3 3
In the band £90,001 - £100,000 1 1
In the band £100,001 - £110,000 1 1

Page 27

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

9. TRUSTEE'S REMUNERATION AND EXPENSES

During the year, the Trustee received no remuneration or other benefits (2021 - £NIL).

During the year ended 31 August 2022, no Trustee expenses have been incurred (2021 - £NIL).

10. TANGIBLE FIXED ASSETS

GROUP

COST OR VALUATION
At 1 September 2021
Additions
Disposals
At 31 August 2022
DEPRECIATION
At 1 September 2021
Charge for the year
On disposals
At 31 August 2022
NET BOOK VALUE
At 31 August 2022
At 31 August 2021		 Freehold
property
£
20,795,804
95,753
-
20,891,557
1,553,068
250,867
-
1,803,935
19,087,622
19,242,736		 Motor
vehicles
£
124,671
31,880
(59,916)
96,635
91,151
7,399
(52,279)
46,271
50,364
33,520		 Fixtures and
fittings
£
2,890,180
337,537
(162,371)
3,065,346
1,656,933
264,392
(144,249)
1,777,076
1,288,270
1,233,247		 3G pitch
£
967,843
-
-
967,843
458,703
42,821
-
501,524
466,319
509,140		 Total
£
24,778,498
465,170
(222,287)
25,021,381
3,759,855
565,479
(196,528)
4,128,806
20,892,575
21,018,643

Page 28

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

10. TANGIBLE FIXED ASSETS (CONTINUED) CHARITY

COST OR VALUATION
At 1 September 2021
Additions
Disposals
At 31 August 2022
DEPRECIATION
At 1 September 2021
Charge for the year
On disposals
At 31 August 2022
NET BOOK VALUE
At 31 August 2022
At 31 August 2021		 Freehold
property
£
20,795,804
95,753
-
20,891,557
1,553,068
250,867
-
1,803,935
19,087,622
19,242,736		 Motor
vehicles
£
124,671
31,880
(59,916)
96,635
91,151
7,399
(52,279)
46,271
50,364
33,520		 Fixtures and
fittings
£
2,832,231
337,537
(148,354)
3,021,414
1,598,984
264,392
(130,232)
1,733,144
1,288,270
1,233,247		 3G pitch
£
967,843
-
-
967,843
458,703
42,821
-
501,524
466,319
509,140		 Total
£
24,720,549
465,170
(208,270)
24,977,449
3,701,906
565,479
(182,511)
4,084,874
20,892,575
21,018,643

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

Group Group
2022 2021
£ £
Plant, F&F and equipment 10,665 23,609

Page 29

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

11. FIXED ASSET INVESTMENTS

GROUP AND CHARITY
COST OR VALUATION
At 1 September 2021
Additions
Disposals
Revaluations
Amounts written off
Transfers between classes
AT 31 AUGUST 2022
NET BOOK VALUE
AT 31 AUGUST 2022
AT 31 AUGUST 2021
12.
STOCKS
Group
2022
£
Finished goods and goods for resale
14,807		 Listed
investments
£
1,310,632
283,654
(206,539)
(65,105)
(540)
(96)
1,322,006
1,322,006
1,310,632
Group
2021
£
90,247		 Cash
account
held as part
of
investment
portfolio
£
77,333
-
-
-
-
96
77,429
77,429
77,333
Charity
2022
£
14,807		 Total
£
1,387,965
283,654
(206,539)
(65,105)
(540)
-
1,399,435
1,399,435
1,387,965
Charity
2021
£
21,957

Page 30

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

13. DEBTORS

DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Fees		 Group
2022
£
33,609
-
2,483
148,607
1,962,033
2,146,732		 Group
2021
£
138,790
-
8,581
114,848
1,096,238
1,358,457		 Charity
2022
£
-
120,842
2,483
114,587
1,962,033
2,199,945		 Charity
2021
£
-
139,525
8,581
113,444
1,096,238
1,357,788

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
Advanced 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		 Group
2022
£
211,788
375,348
234,671
130,197
2,738
3,463,871
1,447,810
351,221
6,217,644
Group
2022
£
3,412,301
3,463,871
(3,412,301)
3,463,871		 Group
2021
£
299,635
259,548
232,268
148,811
13,270
3,412,301
1,516,970
293,989
6,176,792
Group
2021
£
3,054,302
3,412,301
(3,054,302)
3,412,301		 Charity
2022
£
211,788
375,348
163,797
121,785
2,738
3,463,871
1,443,061
275,539
6,057,927
Charity
2022
£
3,412,301
3,463,871
(3,412,301)
3,463,871		 Charity
2021
£
299,635
259,548
203,107
118,961
13,270
3,412,301
1,507,239
236,598
6,050,659
Charity
2021
£
3,054,302
3,412,301
(3,054,302)
3,412,301

Page 31

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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

Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Bank loans 4,219,164 3,609,283 4,219,164 3,609,283

Page 32

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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
2021
£
14,067,748
616,764
488,454
20,319
450,482
207,463
1,003,470
486,591
27,600
2,684,379
17,368,891		 Income
£
11,104,183
-
-
10,717
253,880
-
-
-
-
264,597
11,368,780		 Expenditure
£
(10,562,245)
-
-
-
-
(4,796)
(22,299)
(20,021)
(600)
(47,716)
(10,609,961)		 Transfers
in/out
£
187,483
27,933
(2,770)
(20,319)
(192,327)
-
-
-
-
(215,416)
-		 Gains/
(Losses)
£
-
(20,870)
(33,418)
-
(10,817)
-
-
-
-
(44,235)
(65,105)		 Balance at
31 August
2022
£
14,797,169
623,827
452,266
10,717
501,218
202,667
981,171
466,570
27,000
2,641,609
18,062,605

Page 33

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. STATEMENT OF FUNDS (CONTINUED)

The Music School fund was brought in as part of the Mount House School merger and was originally established for the expansion of the existing music facilities. The fund is fully invested in fixed assets.

The Scholarship and bursary funds represent gifts to the School to fund scholarships and bursaries. The fund is represented by investments.

The Investment Income fund consists of income received from investments and is held as cash.

The Bursary fund consists of donations made to the School to fund bursaries.

The Swimming pool fund consists of donations and grants made to build a new 50m swimming pool. These funds have been fully utilised in the construction of the pool. Expenditure on this fund represents a proportion of the depreciation of this asset.

The Hockey pitch fund represents income donated to the School for the refurbishment of its hockey pitch. Expenditure on this fund represents the depreciation on the assets these funds have purchased.

The Old Mount Kelleian bridge donation represents income donated to the School from the Old Mount Kelleian fund towards the cost of erecting a bridge between the College and the Prep School.

Page 34

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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
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		 Income
£
9,865,291
-
-
20,319
133,511
-
-
-
-
153,830
10,019,121		 Expenditure
£
(9,645,304)
-
-
-
-
(4,796)
(22,299)
(20,021)
(600)
(47,716)
(9,693,020)		 Transfers
in/out
£
(85,648)
(25,986)
(2,730)
(32,276)
146,640
-
-
-
-
111,634
-		 Gains/
(Losses)
£
-
66,805
71,315
-
30,567
-
-
-
-
101,882
168,687		 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
17,368,891

Page 35

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

17. SUMMARY OF FUNDS

SUMMARY OF FUNDS - CURRENT YEAR

Balance at 1 Balance at
September Transfers Gains/ 31 August
2021 Income Expenditure in/out (Losses) 2022
£ £ £ £ £ £
General funds 14,067,748 11,104,183 (10,562,245) 187,483 - 14,797,169
Endowment
funds 616,764 - - 27,933 (20,870) 623,827
Restricted funds 2,684,379 264,597 (47,716) (215,416) (44,235) 2,641,609
17,368,891 11,368,780 (10,609,961) - (65,105) 18,062,605
SUMMARY OF FUNDS - PRIOR YEAR
Balance at Balance at
1 September Transfers Gains/ 31 August
2020 Income Expenditure in/out (Losses) 2021
£ £ £ £ £ £
General funds 13,933,409 9,865,291 (9,645,304) (85,648) - 14,067,748
Endowment
funds 575,945 - - (25,986) 66,805 616,764
Restricted funds 2,364,749 153,830 (47,716) 111,634 101,882 2,684,379
16,874,103 10,019,121 (9,693,020) - 168,687 17,368,891

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
TOTAL		 Endowment
funds
2022
£
-
623,827
-
-
-
623,827		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
2,046,343
18,846,232
595,266
180,342
-
6,207,403
-
(6,217,644)
-
(4,219,164)
2,641,609
14,797,169		 Total
funds
2022
£
20,892,575
1,399,435
6,207,403
(6,217,644)
(4,219,164)
18,062,605

Page 36

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Endowment
funds
2021
Restricted
funds
2021
£
£
Tangible fixed assets
-
1,913,178
Fixed asset investments
616,764
771,201
Current assets
-
-
Creditors due within one year
-
-
Creditors due in more than one year
-
-
TOTAL
616,764
2,684,379
19.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
ACTIVITIES
Net income for the year (as per Statement of Financial Activities)
ADJUSTMENTS FOR:
Depreciation charges
(Gains)/Losses on investments
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Decrease in stocks
Increase in debtors
Increase in creditors
NET CASH PROVIDED BY OPERATING ACTIVITIES
20.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
TOTAL CASH AND CASH EQUIVALENTS		 Unrestricted
funds
2021
Total
funds
2021
£
£
19,105,465
21,018,643
-
1,387,965
4,748,358
4,748,358
(6,176,792)
(6,176,792)
(3,609,283)
(3,609,283)
14,067,748
17,368,891
FROM OPERATING
Group
Group
2022
2021
£
£
693,714
494,788
565,479
522,288
65,105
(168,686)
(10,717)
(20,319)
25,759
5,974
75,440
1,527
(788,275)
(507,401)
139,231
108,391
765,736
436,562
Group
Group
2022
2021
£
£
4,045,864
3,299,654
4,045,864
3,299,654

Page 37

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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
2021
£
3,299,654
(299,635)
(3,609,283)
(13,270)
(622,534)		 Cash flows
At 31
August 2022
£
£
746,210
4,045,864
87,847
(211,788)
(609,881)
(4,219,164)
10,532
(2,738)
234,708
(387,826)

22. PENSION COMMITMENTS

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

Teachers' Pension Scheme

In the past, the school participated in the Teacher's Pension Scheme ("the TPS") for its teaching staff. During the year, the school left this scheme and have made arrangements to run their own pension scheme for its staff.

The pension charge for the year includes contributions payable to the TPS and at the year-end £nil (2021 - £66,517) 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 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:

Page 38

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

22. PENSION COMMITMENTS (CONTINUED)

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.

On 1 January 2022, the Mount Kelly Foundation put into place a new defined contribution scheme for teaching staff. At the year-end, £46,936 (2021 - £nil) was included in creditors in respect of contributions to this scheme. The assets of the scheme are held separately from those in the School in independently administered funds.

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 £25,580 (2021 - £13,622) were payable at the year-end.

23. OPERATING LEASE COMMITMENTS

At 31 August 2022 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
2022
£
72,330
125,036
-
197,366		 Group
2021
£
74,447
172,646
4,500
251,593		 Charity
2022
£
72,330
125,036
-
197,366		 Charity
2021
£
74,447
172,646
4,500
251,593

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

Due to the impact of 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 £37,660 in the year.

Page 39

THE MOUNT KELLY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

25. PRINCIPAL SUBSIDIARIES (CONTINUED)

b) Mount Kelly Swimming Limited

The company’s operations were severely impacted by the pandemic. This year the company has been able to provide full use of both the 50m and 25m pools, as well as full-size classes resulting in more revenue but with increasing costs as a result of the current energy crisis.

Consequently, the company made a loss of £235,101 in the year after paying intra group rent to the Mount Kelly Foundation of £60,000. 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 generates income from letting out of the Foundation's estate. The majority of this activity is over the summer, as such the core activities of the company were consistent with the prior year.

The company generated a profit of £86,321 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 - (37,660) (37,660) (91,130)
Mount Kelly Swimming Limited 754,808 (754,808) - -
Mount Kelly Enterprises Limited 246,473 (160,152) 86,321 135,283

Page 40