2020-08-31-accounts - Moulsford Preparatory School Trust Limited

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Moulsford Preparatory School Trust Limited

Registered Company Number: 894361 (England and Wales) Registered Charity Number: 309643

Moulsford Preparatory School Trust Limited ( A Company Limited by Guarantee )

Report and Audited Financial Statements for the year ended 31 August 2020

Moulsford Preparatory School Trust Limited

Content of the Financial Statements for the year ended 31 August 2020

	Page
Governors, Officers and Advisers	1
Governors’ Annual Report (including Directors’ Report and Strategic Report)	2-11
Independent Auditor’s Report	12-14
Statement of Financial Activities (Including Income and Expenditure Report)	15
Balance Sheet	16
Statement of Cash Flows	17
Notes to the Financial Statements	18-29

Moulsford Preparatory School Trust Limited

Governors, Officers and Advisers for the year ended 31 August 2020

Governors

The School’s Governors, who are also the Charity’s Trustees and the Company’s Directors, are listed below. They have all served in office throughout the year, except where indicated.

E L A Boddington T J C Garnier Mrs G M Crane Mrs C E Dreyer J B Friend H E Osmond (retired 31 August 2020) J S Moule Mrs S Morley (retired 31 August 2020) Mrs C Miles-Kingston R Bussell T Phelps T Davis Mrs A E Bonney Mrs S Russell Mrs T M H Player (appointed 16 September 2020) R W Kapp (appointed 16 September 2020)

Key personnel and advisers

Headmaster: B Beardmore-Gray

Company secretary and bursar: J R W Wilder

Principal address and Registered office: Moulsford Preparatory School Moulsford-on-Thames Oxon OX10 9HR Auditors: Wenn Townsend Chartered Accountants Victoria House 10 Broad Street Abingdon OX14 3LH Bankers: Lloyds TSB plc Bank House Wine Street Bristol BS1 2AN Solicitors: BDB Pitmans 47 Castle Street Reading Berkshire RG1 7SR

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

The Governors present their annual report and the audited financial statements for the year ended 31 August 2020. The Governors have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the Trust.

Reference and administrative information

Moulsford Preparatory School Trust Limited (the School), is a charitable company limited by guarantee, company registration number 894361, charity registration number 309643. The liability of each member in the event of winding up is limited to £1. At 31 August 2020 there were 14 members.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Company is governed in accordance with its Memorandum and Articles of Association, last amended in June 2002.

Governing Body

The members of the Governing Body are detailed on page 1. The full board who form the Governing Body meet at least 3 times a year. Various Governors also sit on the School’s Finance, Legal & Estates Committee which also meets 3 times a year. There is also an annual strategy meeting involving all Board members at which the School’s development plan is reviewed.

Recruitment and training of Governors

The Governing body requires breadth and depth of experience to carry out its duties effectively and efficiently. The Governing body is elected on the basis of nominations and recommendations received from various sources, with a view to ensuring as wide a mix as possible of relevant expertise. Members usually serve for three years and are eligible for re-election

Governors had a presentation by AGBIS during the year. The training included an update on all recent legislation changes as well as a review of the role of a Governor. A number of the Governors attended training or seminars during the year. Both the Chairman and the Clerk to the Governors also encourage Governors to attend relevant seminars, for example on Boarding, Health & Safety and Child Protection.

Organisational structure and management

The Governors determine the general policy and objectives of the School. They appoint a Chairman and, as detailed earlier, there is one operational sub-committee that supports the Board of Governors, the Finance, Legal & Estates Committee. In addition, the School’s Health & Safety Committee has one Governor as a member who reports to the Governing Body. There are also Governors who have specific responsibilities for boarding, child protection, EYFS and accessibility.

The day to day management of the School is delegated to the Headmaster, B Beardmore-Gray, the Bursar, J R W Wilder and the senior management team (SMT).

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

Key management personnel

The Governors consider that they, together with the Headmaster, the Bursar and the SMT comprise the Key Management Personnel.

Pay and remuneration of the Head and the Bursar is set by the Finance, Legal & Estates Committee and is kept under annual review

Organisational Management

The Governors determine the general policy of the School which is set out in the School’s development plan, updated annually or more often as required. The day to day running of the School is delegated to the Headmaster, supported by senior staff. The Headmaster undertakes the key leadership role overseeing educational, pastoral and administrative functions in consultation with the senior staff. The day to day administration of the School is undertaken within the policies and procedures approved and regularly reviewed by the Governors which provide for only significant expenditure decisions and major capital projects to be referred to the Governors for prior approval.

The Headmaster oversees the recruitment of all educational staff, whilst under delegated authority, the Bursar oversees the recruitment of administrative and non-teaching support staff. The Headmaster and Bursar are invited to attend Governors’ meetings.

Other Relationships

The Headmaster is a member of the Independent Association of Preparatory Schools which is an opportunity to share expertise, knowledge and experience across the independent school sector. The School is also a member of the Association of Governing Bodies of Independent Schools and Governors regularly attend events and training days. The School is also a member of the Independent school’s Bursars Association.

Bursary policy

The Governors view bursary awards as vital in helping to ensure children from families who would otherwise not be able to afford the fees can access the education offered. Bursary awards are available to all who meet the general entry requirements and are made solely on the basis of parental means or to relieve hardship where a pupil’s education and future prospects would otherwise be at risk, for example, in the case of redundancy.

In assessing means the School takes a number of factors into consideration including family income, investments and savings and family circumstances; for example, dependant relatives and the number of siblings. However, the School does not have any endowments and in funding these awards the School has to be mindful to ensure a balance between fee-paying parents, many of whom make considerable personal sacrifices to fund their child’s education, and those benefiting from the awards.

The bursary awards range from 10% to 100% remission of fees. In the last year forty bursaries were awarded at an average of £8,530 each.

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

Statement of Governors’ responsibilities

The Governors are responsible for preparing the Governors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure of the charitable company for the year.

In preparing these financial statements the Governors are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the accounts on the going concern basis unless it is inappropriate to assume that the charitable company will continue in business.

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time, the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Governors are aware:

there is no relevant audit information of which the charitable company’s auditor is unaware, and
they have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Risk management

The Governors are responsible for the overseeing of the risks faced by the School. Detailed considerations of risk are delegated to the Senior Management of the School. Risks are identified, assessed and controls established throughout the year. A formal review of the charity’s risk management processes is undertaken on an annual basis. Risk is managed under the headings of governance and management, law and regulation, external factors and human resources.

The main risks that the Governors have identified and the plans to manage those risks are:

Reputation. The School’s success is built on its reputation for the education and well-being of our pupils. The School manages this risk through safeguarding policies, staff recruitment policies, pastoral support for both pupils and staff and active identification and resolution of health and safety related issues.
Affordability. The School’s ability to continue is reliant on pupil fees and the ability to pay bills as they fall due. This risk is managed by marketing activity, having a reputation for academic excellence and active cash-flow management.

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

Curriculum. Academic excellence requires the most able teachers with state of the art facilities delivering the curriculum to students. The School manages this risk by combining attractive salaries with on-going investment in our estate and an approach to enrolment that works with supportive parents whose children have an appetite for learning.
Response to COVID Challenge. The School has managed the risk created by the pandemic by offering the children excellent education over the internet.

Through the risk management processes established for the School, the Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Objectives and activities

The objectives of the Trust are to carry on or manage day and/or boarding schools in the UK for the advancement of education and development of boys.

Governors aim, through the School, to provide a first-class education to boys from the age of 4 to 13. The boys leave Moulsford to join a broad range of destination schools. The School seeks to provide a structured educational environment that develops our pupils’ capabilities, competences and skills. The School promotes the academic, moral and physical development of our pupils through our academic curriculum, pastoral care, the arts, sporting and other activities. The School provides an educational environment where each student can develop and fulfil his potential, building their selfconfidence and inculcating a desire to contribute to the wider community. In so doing, the School prepares the pupils for the opportunities, responsibilities and experience of later life.

The objectives are set to reflect the educational aims and the ethos of the School. It is important to maintain and enhance the academic success of the School.

This objective is, however, set in the context of the broader goals Governors set for the School and its pupils.

to broaden the academic curriculum
to enhance and improve the co-curricular provision for pupils
to continue to develop the first-class pastoral care the school provides for pupils
to provide continuing support of pupils already in receipt of fee assistance through bursaries
to continue to offer the same level of financial support as last year to new entrants in September 2021
to play our part in the life of our local community through our community access programmes

ETHOS AND POLICIES

Ethos: a caring school serving our local community and society

Moulsford Preparatory School is a charitable trust which seeks to benefit the public through the pursuit of its stated aims. The fees are set at a level to ensure the financial viability of the School and at a level that is consistent with the aim of providing a first-class education to boys.

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

The School welcomes pupils from all backgrounds. To admit a prospective pupil the Headmaster needs to be satisfied that the School will be able to educate and develop a prospective pupil to the best of their potential and in line with the general standards achieved by their peers. Entrance interviews and assessments are undertaken to satisfy the School and parents that potential pupils can cope with the pace of learning and benefit from the education provided. An individual’s economic status, gender, ethnicity, race, religion or disability do not form part of our assessment processes.

The School is an equal opportunity organisation and is committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. The School will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

The School welcomes all children who can make the most of the opportunities offered and can flourish in its caring environment. The Governors and staff are firmly committed to inclusivity and to giving every child the best possible start in life. The School wishes to ensure that account is taken of the particular individual needs of each boy and to help individuals reach their full potential.

The School is committed to safeguarding and promoting the welfare of pupils and expects all staff and volunteers to share this commitment.

In the last Independent Schools’ Inspectorate report, the pastoral care provided by the School’s Form Tutors, Heads of House and Year, was described as “excellent” .

Parents are given regular information about their children’s social and academic progress through parent evenings in addition to the traditional end of term and year reports. The School maintains regular contact with parents throughout the year through informal contacts and through the newsletter.

The School also has a system of student champions who are involved in assisting senior teaching staff in enforcing the very vigorous no bullying policy.

Access Policy

It is important to the School that access to the education the school offers is not restricted to those who can afford the fees. The School believes the pupils benefit from learning within a diverse community. A great deal of learning occurs through social interaction, conversation and shared experiences which helps the pupils develop an understanding of the perspectives of other people that will be vital in their adult lives.

The bursary policy contributes to a widening of access to the education offered and the facilities enjoyed.

Financial planning policy

Timely financial planning is often the key for many parents who are hoping to send their children to Moulsford Preparatory School and there are a number of outside agencies available to help those who wish to fund educational costs through regular contributions.

Assistance for our teaching staff

As part of the emphasis on attracting and retaining high calibre staff, the School offers a reduction in fees for staff members who choose to educate their children at the School.

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

Pupil numbers and fees

Educational activities are carried out through the Prep School and the Pre-Prep School. The School had 298 boys in the Prep School and 69 in the Pre-Prep.

The fee increases this year were restricted by the Governors to an inflationary increase in line with the movement in the costs of running an Independent school. The fees for the current year before the deduction of any means assisted bursaries and scholarships were:

Pre-Prep - £3,955 per term Prep School - £5,910 per term Boarding - £7,395 per term

The fees were reduced for the Summer term to reflect the reduction in the School’s costs as the boys were educated at home over the internet. The fees for the Autumn term 2020 have been kept at the same rate as the Spring term 2020.

Drama

In the Autumn term 2019 productions in Pre-Prep, Years 3, 4 and 5 ran as normal. Greater investment has also been made in ensuring filmed performances can be shared with parents easily and in as good a quality as possible.

Rehearsals and preparation also began for the Year 7 play which involved purchase of costumes and materials for the set. Two weeks before the play was due to run, the decision was made to postpone the play indefinitely. All costumes and staging has been retained in anticipation of a performance in summer 2021.

With the move to Virtual Moulsford and teaching drama while physically distanced, future CPD is focused on finding courses which address this new form of teaching and ensuring pupils still receive a high level of education in this subject.

Music

The Music Department’s aims are to give every child a broad music education, including playing an instrument and becoming musically literate, singing and listening skills and a general appreciation of music. It is hoped that they will gain a love of music, and hopefully musical skills too, that will last through their senior education, and into adult life.

Up to 75% of the boys continue to opt to learn an instrument on an individual basis, taking lessons from the twelve Visiting Music Teachers (VMT), who come into school each week. We offer a whole range of instrumental studies, including all the main orchestral instruments, rock and folk instruments and also classical singing and pop vocals. The boys are also offered the opportunity to study for ABRSM Music Theory exams. We continue to award in excess of a hundred music certificates each year! However, due to the pandemic, the majority of these lessons have been given ‘virtually’, online, using Google Meet. A large number of boys have continued to learn instruments, nevertheless.

The Department also offers a wide range of extra-curricular activities, including junior and senior choirs, pop choir, orchestra and jazz and string ensembles. These ensembles are show cased in all the main annual public events, such as the Carol Service and the Summer Concert, and enjoy the support of many of the VMTs. Opportunities to develop these ensembles have, since March 2020, been very limited due to the pandemic.

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

The final aim of the Music Department is to identify, develop and show case musical talent, in all its diverse forms, and, wherever it presents itself. This results in a wealth of boys willing and able to perform in a range of public events, numerous examination successes and a good number of music scholarship awards from the senior schools we feed, each year.

Sport

Sport is a vital part of life at Moulsford, and while we do believe it is important to play to win, at Moulsford we regard the taking part – the teamwork, learning to win and lose, the development of self-esteem and social skills, the healthy exercise, as well as the fun – as equally valuable.

The School believes that attitude towards sport is more important than ability. Our sporting key values which the boys strive towards are endeavour, enjoyment, humility, resilience and teamwork. This is highlighted to the boys with the “Lion Heart Award” being awarded weekly to a number of boys that have shown the key values in abundance. The School strives to arrange a comprehensive fixture list each term which enables strong competition and the chance for as many boys as possible to represent the School.

This past year has been a challenge with the constraints of social distancing and guidance on essential travel. When the boys have been on-site, we have run a comprehensive internal fixture programme, involving bi-weekly leagues and House competitions to engage the boys. During our virtual provision, the main aim has been to ensure the boys have engaging opportunities to stay active and healthy. This has involved Live Games Session with a mixture of aerobic, HIIT, boxercise and yoga, to give the boys a varied and engaging experience. These sessions have been supplemented by sport-specific skill videos to boost skill acquisitions as much as possible.

To harness the natural competitiveness in boys, we have also run internal House Competitions, such as the House race from Land’s End to John O’Groats. We have also “ventured” out to compete against other schools, with our Race Across America, involving Caldicott, Taunton School and Clifton College. These challenges have helped the sense of community within Moulsford, allowing the boys to remain connected to school.

Pre-Prep PE continues to go from strength to strength, with “Playball” ever growing in popularity. This continues to be a USP for Moulsford Pre-Prep.

We look forward to resuming our normal sports provision, however, this time has allowed us to reflect on how we may do things differently moving forward. Looking at how we can continue to develop our practice to provide a first-class sporting provision for every boy.

School Alumni or Old Moles

The Old Moles Society was started in October 2005 for the purpose of keeping old boys in contact with Moulsford and with each other. The society is open to all old boys, governors, and members of staff, past and present, and the boys are registered before they leave the school. All communications are on-line.

All past newsletters are available on the website, together with an email directory giving the email addresses and information of those who elect to have their details made accessible. There are 800 registered former pupils and over 600 Friends on Facebook with some overlap.

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

Transport

The School has frozen the main bus charges for the last two years and has reduced the minibus charges to encourage parents to use the service.

Charitable activities and local community relationships

The Governors, as the Charity’s trustees, have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee-charging.

A wide range of clubs use the School’s sports hall during the winter. These include local junior football clubs as well as local cricket clubs using the indoor cricket wickets over the weekend.

The School has close links with Moulsford village and prints the monthly village news magazine free of charge, which goes to every household in the village. We also cut the grass on the village recreational ground and have previously subsidised new playground equipment.

Moulsford has good links with local primary schools through an outreach/collaboration programme, by which all schools can learn from each other

In 2019/20, Moulsford supported two charities. For “Inspire Children and Youth” (based in South Africa), Moulsford has already raised £30K+ during this and the previous academic year through events run by the school. Moulsford has also worked in tandem with the Rivertime Boat Trust, to enable groups of children from four state funded or free schools to experience the river. This is an excellent example of how the state and independent sectors can work closely with each other to give opportunities to children in state education which many would normally find very difficult to access.

Volunteers

The Parents’ Association helped with fundraising and cultural activities during the year and the Governors would like to thank the Association for its continuing and valuable support for the School.

STRATEGIC REPORT

Achievements and performance

Operational performance of the School

The School has been close to full during the last year with an average of 362 pupils. Year 8 leavers in 2020 won 9 Scholarships or exhibitions.

Financial review

The financial statements show net incoming resources for the year on School activities of £239,813 (2019 - £443,483).

The surplus for the year has been reduced by the reduction in fees for the summer term and the effects of the mandatory increase in the employer contribution to the teachers’ pension fund.

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

The principal source of income is fees accounting for 96% of the School’s income. The Governors are continuing their strategy of deploying all net incoming resources to investing in the educational purposes and fabric of the School.

In addition to the very substantial benefits the School brings to its pupils, the local community and society through the education offered, the bursary programme creates a social asset without cost to the Exchequer.

Developments and Maintenance

The School continues to invest considerable funds in the maintenance and continual improvement of existing facilities and infrastructure. During the year the School has continued to change the existing interactive whiteboards, replacing them with state-of-the-art interactive TV screens.

Reserves policy

Reserves and financial health

The Governors regularly review the finances, budgets and spend against budget together with a monthly cash flow analysis as part of the effective stewardship of the School.

The Governors recognise that the level of reserves fluctuates during periods of investment in the School estate and the arrangements with our bank are in place to provide an adequate ‘safety net’ should it be required.

Investment Policy and performance

Investment activities are managed in line with the requirements of the Trustee Act 2000. The Governors at this moment are using surplus funds to reduce debt and any other funds are placed on short term deposit with our bank, Lloyds.

Pension Liability

The Governors are satisfied that existing cash flows are sufficient to meet any anticipated increases in costs. The Pension liability has been reported within the accounts in accordance with accounting standard FRS 102. For our non-teaching and support staff the School offers a money purchase plan (defined contribution scheme) which is operated by Aviva.

FUTURE PLANS

The Governors intend to continue their current strategy of maintaining the School’s position in a competitive market by investing to provide high quality education for the pupils. Achieving a high standard of academic results is a constant aim whilst maintaining the breadth and depth of the education provided.

The Headmaster and senior staff continue to review the curriculum to ensure that the educational qualifications remain appropriate for pupils’ development.

Future plans are financed primarily from fee income and from reserves. The Governors need to maintain an equitable balance ensuring the current pupils benefit whilst, at the same time, ensuring a sound infrastructure and financial base are preserved for the next generation of pupils in the same way as the current pupils benefit today from the investment made in the past.

Moulsford Preparatory School Trust Limited

Governors’ Annual Report (including Directors’ Report and Strategic Report) for the year ended 31 August 2020

Maintaining and, where necessary, developing the fabric and facilities of the School are central to the School’s strategy. Present plans are primarily focused on the new Pre-Prep facilities for which planning permission has now been obtained. The School has a program of planned maintenance and investment.

Environmental issues are also a high priority and the school is making all the buildings more energy efficient, seeking the more efficient use of water and supporting local recycling initiatives.

Statement of disclosure of information to auditors

We, the directors of the company who held office at the date of approval of these Financial Statements, as set out above, each confirm so far as we are aware, that:

there is no relevant audit information of which the charitable company’s auditors are unaware; and
we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

Auditors

The Auditors, Wenn Townsend, will be proposed for re-appointment at the forthcoming Annual General Meeting.

In approving the Report of the Governors, we also approve the Strategic Report included therein, in our capacity as company directors.

Approved by the Board of Governors on 7 April 2021 and signed on its behalf by

E L A Boddington Chairman of Governors

Moulsford Preparatory School Trust Limited

Independent Auditor’s Report to the members of Moulsford Preparatory School Trust Limited

Opinion

We have audited the financial statements of Moulsford Preparatory School Trust Limited (the ‘charitable company’) for the year ended 31 August 2020, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and notes to the financial statements, 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:

give a true and fair view of the state of the charitable company’s affairs as at 31 August 2020, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

the Governors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Moulsford Preparatory School Trust Limited

Independent Auditor’s Report

to the members of Moulsford Preparatory School Trust Limited

Other information

The Governors are responsible for the other information. The other information comprises the information included in the Governors’ annual report, other than the financial statements and our auditor’s report thereon. 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.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Governors’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Moulsford Preparatory School Trust Limited

Independent Auditor’s Report

to the members of Moulsford Preparatory School Trust Limited

Responsibilities of trustees

As explained more fully in the Governors’ responsibilities statement set out on page 4, the Governors (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the charitable company’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 Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but, is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Deborah Pluck BA FCA (Senior Statutory Auditor) For and on behalf of Wenn Townsend Chartered Accountants and Statutory Auditor Victoria House 10 Broad Street Abingdon Oxon OX14 3LH

Date: 8 April 2021

Moulsford Preparatory School Trust Limited

Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 August 2020

Note Income Income from charitable activities: School fees receivable 3 Donations and grants 4 Interest receivable Other 5 Total income Expenditure Charitable activities: School operating costs 6 Interest payable 9 Total expenditure Net income 7 Change in fair value of loans 25 Other gains 25 Net movement in funds Reconciliation of funds: Funds brought forward Total funds carried forward 17,18	Unrestricted Funds £ 5,367,314 159,547 5,939 62,084 5,594,884 5,344,218 18,755 5,362,973 231,911 20,968 252,879 3,061 255,940 7,053,405 7,309,345	Restricted Funds £ - 19,966 - - 19,966 12,064 - 12,064 7,902 - 7,902 - 7,902 8,212 16,114	Total 2020 £ 5,367,314 179,513 5,939 62,084 5,614,850 5,356,282 18,755 5,375,037 239,813 20,968 260,781 3,061 263,842 7,061,617 7,325,459	Total 2019 £ 5,779,812 1,605 6,775 123,885 5,912,077 5,443,892 24,702 5,468,594 443,483 (27,295) 416,188 18,073 434,261 6,627,356 7,061,617

The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing operations.

Moulsford Preparatory School Trust Limited

Balance Sheet At 31 August 2020

Note Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors:Amounts falling due within one year 13 Net current liabilities Creditors:Amounts falling due after more than one year 15 Net assets Unrestricted funds Designated funds 17 General funds 17 Restricted funds 18 Total funds 19		2020 £ £ 8,561,566 1,409,054 882,013 2,291,067 (2,760,969) ( (469,902) 8,091,664 (766,205) 7,325,459 1,890,000 5,419,345 7,309,345 16,114 7,325,459	2019 £ £ 8,571,008 1,235,969 857,904 2,093,873 2,716,576) (622,703) 7,948,305 (886,688) 7,061,617 1,855,000 5,198,405 7,053,405 8,212 7,061,617

Approved by the Board of Governors on 7 April 2021 and signed on its behalf by

E L A Boddington Chairman of Governors

Registered Company Number: 894361

The notes on pages 18 to 29 form part of these financial statements

Moulsford Preparatory School Trust Limited

Statement of Cash Flows for the year ended 31 August 2020

Note Cash inflow from operating activities 20 Interest paid Net cash flow from operating activities Cash flow from investing activities Payments to acquire tangible fixed assets Sale of tangible fixed assets Interest received Net cash flow from investing activities Cash flow from financing activities Net loan repayments Net cash flow from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 September 2019 Cash and cash equivalents at 31 August 2020	2020 £ 576,759 (18,755) 558,004 (448,944) 12,250 __5,939 (430,755) (103,140) (103,140) 24,109 857,904 882,013

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements for the year ended 31 August 2020

1. Accounting policies

The principal accounting policies adopted in the preparation of the financial statements are as follows:

a) Basis of preparation

Moulsford Preparatory School Trust Limited constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2016.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

b) Income recognition

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

School fees receivable represent amounts invoiced in respect of pupils’ schooling, less bursaries and allowances and are credited to the Statement of Financial Activities in the year to which they relate. Deferred income represents fees receivable billed in advance for the Michaelmas term following the year under review.

c) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of obligation can be measured reliably. Irrecoverable VAT is charged as an expense against the activity for which the expenditure arose.

d) Tangible fixed assets

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

Depreciation is provided on all tangible fixed assets, except freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful economic life as follows:

Freehold buildings	2% on a straight-line basis
Facilities	5% on a straight-line basis
Furniture & equipment	10% on a straight-line basis
Vehicles	10% on a straight-line basis
Computers	25% on a straight-line basis

Freehold buildings and facilities under construction are not depreciated until commissioned. Where the life of an asset is able to be determined with reasonable accuracy and is over 3 years, it is normally capitalised, otherwise the item is written off to revenue.

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

e) Leases and hire purchase commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. 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 SoFA so as to produce constant periodic rates of charge on the net obligations outstanding in each period. Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight-line basis, over the life of the lease.

f) Pension

The School contributes to the Teachers’ Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS17 therefore, the

scheme is accounted for as a defined contribution scheme. The School also runs a defined contribution scheme for its non-teaching staff.

Contributions to both schemes are charged in the Statement of Financial Activities as they become payable in accordance with the rules of the schemes.

g) Fund accounting

Unrestricted general funds

These are funds which can be used in accordance with the objects at the discretion of the Governors.

Designated funds

These are funds set aside by the Governors out of unrestricted general funds for specific future purposes or projects.

Restricted funds

These are funds which can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for a particular restricted purpose.

A further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

h) Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

i) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

j)

Derivatives

Derivative financial instruments are initially measured at fair value at the date on which the derivative contract is entered into and are subsequently measured at fair value through income or expenditure. The charity uses derivatives to mitigate interest rate risk associated with variable rate loans. The fair value of these is determined by the Governors.

k) Going concern

The financial statements have been prepared on a going concern basis as the Governors believe that no material uncertainties exist. The Governors have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements, including a revision of expectations for the potential impact of COVID-19 on the charity. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2. Legal status of the Trust

The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. At the balance sheet date there were 14 members.

3. Income from school fees

The income from school fees comprises: Gross fees Less: Total scholarships, bursaries and allowances	2020 £ 5,693,253 325,939 5,367,314	2019 £ 6,094,963 315,151 5,779,812

4. Donations and grants

Included within donation income is £159,547 (2019 - £nil) of Government grants relating to the Coronavirus Job Retention Scheme.

5. Other income

Rent received Functions income Other	2020 £ 22,530 18,380 21,174 62,084	2019 £ 47,520 40,422 35,943 123,885

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

6. School operating costs

Teaching Welfare Premises Support Governance 7. Net income for the year Net income is stated after charging: Depreciation – owned assets – assets on hire purchase Loss on disposal of assets Operating lease costs - not equipment Auditors’ remuneration - audit fees - other services		2020 £ 3,638,932 619,924 698,586 369,340 29,500 5,356,282 2020 £ 442,686 - (3,451) 25,709 7,200 3,000	2019 £ 3,627,912 650,289 761,757 375,543 28,391
			5,443,892 2019 £ 419,748 - - 37,703 7,200 3,000

8. Analysis of staff costs, Governor remuneration and expenses, and the cost of key management personnel

Wages and salaries Social security costs Pension costs (see note 24)	2020 £ 3,013,843 312,586 498,067 3,824,496	2019 £ 3,035,216 308,362 377,935 3,721,513

None of the Governors received remuneration, travel expenses or other benefits in relation to the current or preceding year.

The charity considers its key management personnel comprise the Governors, the Headmaster and the Bursar. The total amount of employee benefits received by key management personnel is £289,592 (2019 - £236,871).

The average monthly number of employees and full time equivalent (FTE) during the year was:

	2020	2020	2019	2019
	Number	FTE	Number	FTE
Teaching	62	59	62	60
Domestic	21	16	21	17
Administration	11	10	12	11
	94	85	95	88

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

8. Analysis of staff costs, Governor remuneration and expenses, and the cost of key management personnel (continued)

The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows:

		2020	2019
		Number	Number
	£60,001 - £70,000	2	2
	£70,001 - £80,000	-	1
	£90,001 - £100,000	1	1
	£120,001 - £130,000	-	1
	£131,001 - £140,000	1	-
9.	Interest and similar charges
		2020	2019
		£	£
	Bank loans and overdrafts	18,755	24,702

10. Taxation

The charity is exempt from taxation on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

11. Tangible fixed assets

Furniture & Equipment £ 1,307,628 89,288 (37,103) 1,359,813 626,677 116,743 (21,403) 722,017 637,796 680,951	Vehicles & computers £ 758,885 123,287 (111,221) 770,951 449,564 101,101 (111,221) 439,444 331,507 309,321	Total £ 12,222,878 448,944 (148,324)	Total £ 12,222,878 448,944 (148,324)
		__ 12,523,498 3,651,870 442,686 (132,624)
_	_	_	_ 3,961,932 8,561,566 8,571,008

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

11. Tangible fixed assets (continued)

Tangible fixed assets with a net book value of £7,592,263 (2019 - £7,580,736) have been pledged as security for liabilities of the charity.

12. Debtors

Fees Prepayments 13. Creditors:Amounts falling due within one year Secured bank loans Trade creditors Refundable deposits Derivative financial instruments Accruals Taxation and social security Fees paid in advance Deferred income (see note 14) 14. Deferred income Balance at 1 September 2019 Amount released to incoming resources Michaelmas term 2019 fees invoiced Balance at 31 August 2020	2020 £ 1,409,054 - 1,409,054 2020 £ 84,084 149,183 34,800 9,449 46,797 145,441 347,467 1,943,748 2,760,969 2020 £ 1,905,423 (1,905,423) 1,943,748 1,943,748		2019 £ 1,194,628 41,341 1,235,969 2019 £ 86,488 293,031 35,600 7,531 62,796 129,384 196,323 1,905,423 2,716,576

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

15. Creditors: Amounts falling due after more than one year

reditors:Amounts falling due after more than one year
Secured bank loans (falling due in less than 5 years) Secured bank loans (falling due after 5 years) Refundable deposits Derivative financial instruments	2020 £ 371,533 122,859 254,300 17,513 766,205		2019 £ 380,412 235,684 248,100 22,492 886,688

The bank loans are secured on the freehold property. The payment terms and interest rates of each creditor for which an amount falls due after 5 years are given in note 16.

16. Borrowings

The aggregate amount of bank loans are as follows:

Due within one year or less Due between one and two years Due between two and five years Due after five years Total due Included in current liabilities Included in creditors due after more than one year	2020 £ 2019 £ 84,084 86,488 87,418 89,766 284,115 290,646 122,859 235,684 578,476 702,584 84,084 86,488 494,392 616,096	2020 £ 2019 £ 84,084 86,488 87,418 89,766 284,115 290,646 122,859 235,684 578,476 702,584 84,084 86,488 494,392 616,096
		702,584
		86,488
		616,096

The payment terms and interest rate of each creditor for which an amount falls due after five years are as follows:

Bank loan 1 £325,571 @ 3.3% per annum, fixed for 5 years (until March 2019), thereafter Base Rate plus 0.95% per annum, repayable in quarterly instalments commencing June 2014.

Bank loan 2 £141,854 @ Base Rate plus 0.95% per annum repayable in quarterly instalments commencing January 2007.

Bank loan 3 £235,158 @ Base Rate plus 0.95% per annum, repayable in quarterly instalments commencing June 2006.

All bank loans are fully repayable by January 2027.

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

17. Unrestricted funds 2020 General reserves: Designated funds: Building & development Incentive bonuses 2019 General reserves: Designated funds: Building & development Incentive bonuses	1 September 2019 5,198,405 1,825,000 30,000 7,053,405 1 September 2018 4,792,221 1,825,000 - 6,617,221	Total income 5,594,884 - _- 5,594,884 Total income 5,910,472 - _- 5,910,472	Total expenditure (5,338,944) - _- (5,338,944) Total expenditure (5,474,288) - _- (5,474,288)	Transfers (35,000) - 35,000 _- Transfers (30,000) - 30,000 -	31 August 2020 5,419,345 1,825,000 65,000 7,309,345 31 August 2019 5,198,405 1,825,000 30,000 7,053,405

The Building and development Fund is identified by Governors for the future development of buildings in the School, within the foreseeable future.

The Incentive bonuses Fund is identified by Governors for the payment of future bonuses to key employees.

18. Restricted funds

2020 Bursary fund Hardship fund 2019 Bursary fund	1 September 2019 8,212 - 8,212 1 September 2018 10,135 10,135	Total income 6,600 13,366 19,966 Total income 1,605 1,605	Total expenditure (1,574) (10,490) (12,064) Total expenditure (3,528) (3,528)	31 August 2020 13,238 2,876 16,114 31 August 2019 8,212 8,212

The Restricted Funds are from specific donations to the Trust. The Bursary Fund is for the provision of bursaries.

The Hardship Fund is to pay the fees of children whose families have suffered financial loss as a result of COVID-19.

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

19. Analysis of net assets between funds

Unrestricted
£
Fund balances at 31 August 2020 are
Represented by:
Fixed assets
8,561,566
Current assets
2,274,953
Creditors: Due within one year
(2,760,969)
Creditors: Due after one year
(766,205)
7,309,345
Unrestricted
£
Fund balances at 31 August 2019 are
Represented by:
Fixed assets
8,571,008
Current assets
2,085,661
Creditors: Due within one year
(2,716,576)
Creditors: Due after one year
(886,688)
7,053,405
20.
Reconciliation of net income to net cash flow from operating
Net incoming for the year
Interest paid
Interest received
Depreciation of tangible assets
Loss on disposal of tangible assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash inflow from operating activities

Restricted
£
Total funds
£
-
8,561,566
16,114
2,291,067
-
(2,760,969)
-
(766,205)
16,114
7,325,459
Restricted
£
Total funds
£
-
8,571,008
8,212
2,093,873
-
(2,716,576)
-
(886,688)
8,212
7,061,617
activities
2020
£
2019
£
260,781
416,188
18,755
51,997
(26,907)
(6,775)
442,686
419,748
3,451
-
(173,085)
(158,033)
_ 51,078
(5,397)
576,759
717,728

21. Financial commitments

Contractual commitments for the acquisition of tangible fixed assets contracted for but not provided in the financial statements amounted to £nil (2019 - £102,000).

Subsequent to the year-end, the Governors have approved, but not contracted for, the building of a separate Pre-Prep school on site at an estimated cost of £5m.

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

22. Operating leases

Total future minimum lease payments under non-cancellable operating leases are as follows:

In one to five years	2020 £ 41,114	2019 £ 112,169

23. Related party transactions

There are no related party transactions during the year (2019 - £ nil).

24. Pension costs

Defined benefit scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £454,945 (2019 - £336,802) and at the year-end £53,653 (2019 - £41,366) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and, closed to responses on 11 October 2020.

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

24. Pension costs (continued)

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial statements.

Defined contribution scheme

The School also makes contributions for non-teaching staff. This is a separately administered defined contribution scheme. Employers’ contributions totalling £43,122 (2019 - £41,133) were payable to this scheme for the year. At the year-end £10,047 (2019 - £9,948) was accrued in respect of contributions to this scheme.

25. Financial instruments

The carrying amounts of the charitable company’s financial instruments are as follows:

	2020	2019
	£	£
Financial liabilities
Measured at fair value through net income/expenditure
Derivative financial instruments (notes 13 and 15)	26,962	30,023
Measured at amortised cost
Bank loans (notes 13, 15 and 16)	578,476	702,584

Moulsford Preparatory School Trust Limited

Notes to the Financial Statements (continued) for the year ended 31 August 2020

25. Financial instruments (continued)

The income, expenses, net gains and net losses attributable to the charitable company’s financial instruments are summarised as follows:

	2020	2019
	£	£
Income and expense
Financial liabilities measured at fair value through net
income/expenditure	18,755	24,702
Financial (gains)/liabilities measured at amortised cost	(20,968)	27,295
Net gains and losses (including changes in fair value)
Financial liabilities measured at fair value through net
income/ expenditure	3,061	18,073

The charitable company uses derivative financial instruments to mitigate interest rate risk on its variable rate bank loans. The fair value is determined as the present value of future net interest payments/receipts.