## **PARMITER'S SCHOOL FOUNDATION**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 August 2021**
(Charity Registered Number: 312704)
## **Parmiter's School Foundation Contents Year ended 31st August 2021**
||**Page**|
|---|---|
|Legal and Administrative Details|1|
|Trustees' Report|2 - 6|
|Auditors' Report|7 - 9|
|Statement of Financial Activities|10|
|Charity Balance Sheet|11|
|Notes to the Accounts|12 - 19|
## **Parmiter's School Foundation Legal and Administrative Details**
Parmiter's School Foundation is a registered charity (312704). It is governed by the scheme of the Charity Commission (1991) as amended by the Scheme (2002) and the Trustee Resolution (2010).
## **Trustees**
The Trustees of the charitable company are:
Mrs J Glossop (Chairman) Mr M F Hammond (Vice-Chairman) Mrs M Kingston Mr A Mehmet Dr J Newman Mr C Partridge Mr D K Robertson Mr M Weisman Mr A O'Brien
## **Advisors**
_Clerk to the Trustees_
Mrs H. Clark
_Auditors_ Moore Kingston Smith LLP 4 Victoria Square St Albans Hertfordshire AL1 3TF _Bankers_ Barclays Bank plc. Watford Hertfordshire WD17 2BT _Investment Managers_ UBS AG 3 Finsbury Avenue London EC2M 2AN
Page 1
## **PARMITER’S SCHOOL FOUNDATION**
## **REPORT OF THE TRUSTEES**
## **For the year ended 31 August 2021**
The Trustees present their Report together with the Financial Statements of the Foundation for the 12month period ended 31 August 2021. The Financial Statements have been prepared in accordance with the accounting policies set out on Pages 12 and 13 and comply with the Foundation's Trust Deed and applicable law.
## **BOARD OF TRUSTEES**
The Trustees who served during the period are:
Mrs J Glossop (Chairman) Mr M F Hammond (Vice-Chairman) Mrs M Kingston Mr A Mehmet Dr J Newman Mr A O’Brien Mr C Partridge Mr D K Robertson Mr M Weisman
## **CONSTITUTION, OBJECTS AND POLICIES**
The Foundation, which was constituted by Trust Deed in 1913 and amended in 1991 and 2002, is a Registered Charity - Number 312704.
Changes to the Constitution have been agreed with the Charity Commission in January 2009 without the need for an amending Scheme. The Charity Commission has permitted the Trustees to adopt a Memorandum of Changes by resolution after which the approved document becomes the governing document of the Charity. There is a Trustee resolution dated 5 November 2010.
## **OBJECT, OBJECTIVES, PUBLIC BENEFIT**
The objects of the Foundation are to promote education and provide financial support to Parmiter's School and its pupils. The policies of the Foundation cover the development and enhancement of the Parmiter's school site in addition to the rendering of financial assistance to the school and the granting of bursaries to current and former pupils. Request for bursaries are made in writing to the Foundation and consideration is given accordingly by the Trustees.
The Foundation has a commitment to ensure that the school buildings and grounds are fit for the purpose of operating a school.
The Trustees have given due consideration to Charity Commission guidance on the operation of the Public Benefit requirement and identify that benefit occurs in the carrying out of the Foundation’s objectives: -
Page 2
## **REVIEW OF THE YEAR**
The Foundation Trustees approved a grant of £8,988 towards school transport and school educational visits for parents on low income who applied for assistance. This was lower than in previous years due to Covid and the absence of students in school for a long period of time.
The Foundation contributed £200,000 towards the building of a new Science Block, which opened in September 2021, and £29,000 towards the renovation of the school’s Fitness Suite, both of which will benefit both staff and students. A grant for £17,113 was approved to cover the cost of the annual School Recruitment (TES) subscription. The Foundation also transferred £64,000 of parental contributions to the school as these funds were donated to help with the day to day running of the school to help maintain the school’s excellent standards and enhance the student provision.
## **TRUSTEES STRUCTURE, GOVERNANCE AND MANAGEMENT**
The day to day administration of the Foundation is undertaken by the Clerk, supported by a member of the Academy, and in association with the Trustees who attend training sessions organised by UBS Wealth Management (UK) Limited ("UBS"). Training sessions have been made available by UBS to all the Trustees over a period of time.
As defined in the Charity Scheme of 29 April 1991, each Trustee is appointed for a term of four years. There has been no change in Trustees’ appointments during the 12-month period.
The Trustees have met on 5 occasions to agree broad strategy and areas of risk and activity, principally covering Investments and Freehold Land & Buildings. Due to Covid-19 restrictions, 4 of these meetings were held virtually through “Google Meet.”
Trustees are appointed by recommendation and appointments have to be agreed by all existing Trustees. New Trustees are inducted through internal training.
The Key Management Personnel for the Foundation consists of a member of the Academy employed solely to manage the Foundation accounts and the remuneration is set and paid for by the Academy. The Foundation and the Academy have a Service Level Agreement to agree the appropriate remuneration to be paid to the Academy from the Foundation for this member.
## **REMUNERATION POLICY**
Remuneration for all Key Personnel involved in the running of the Foundation operations is covered in a Service Level Agreement between the Foundation and the Academy. The agreement is reviewed on an annual basis as the Key Personnel are paid in accordance with the Academy’s Pay Policy.
## **INVESTMENTS**
The mandate which has been given by the Foundation to UBS is for a long-term discretionary portfolio with a mixture of capital growth and income. The overall risk profile for our total portfolio is “moderate.” The Trustees have been happy overall with the increases made to the portfolio over the previous 12 months.
Page 3
The objectives remain to promote education and provide support to the school and students.
Due to ongoing Covid-19 restrictions throughout the year, the annual report was presented to the Trustees virtually by UBS in December 2020. Regular (monthly) statements and detailed transaction summaries are constantly made available for monitoring purposes. There have been no changes to the existing mandate
Detail of funds under management as shown in Note 8, Page 16 of the Financial Statements highlights an increase in portfolio value of £809,603 during the 12-month period.
## **FREEHOLD LAND & BUILDINGS**
The Freehold Land & Buildings owned by Parmiter's School Foundation are leased to Parmiter's School under the Terms of a formal Lease Agreement dated 30 June 2011 signed off for and on behalf of the Secretary of State for Education, the Foundation and the School (Academy).
Under the terms of the Lease Agreement, Parmiter's School has the financial obligation to maintain the buildings owned by the Foundation for the purpose of education. The Trustees have carried out an Impairment Review and believe the value of the buildings are correctly referenced in the accounts.
No provision for depreciation has been charged on Freehold buildings
## **FINANCIAL REVIEW, ACTIVITIES AND ACHIEVEMENTS**
The financial activity for the 12-month period is shown in the Statement of Financial Activities on Page 9.
|||**2020/2021**|**2019/2020**
**12 months**|**2018/2019**
**12 months**|**2017/2018**
**12 months**|
|---|---|---|---|---|---|
|a)|Income|£157,872|£187,650|£181,966|£173,100|
|b)|Expenditure|£425,938|£174,652|£191,721|£191,874|
|c)|Net expenditure|(£268,066)|£12,998|(£10,755)|(£18,744)|
|d)|Realised and unrealisedgains on investments|£812,378|(£161,494)|£26,453|£212,368|
Income resources are made up of dividend income received on investments and from Covenant funds received from parent donations. The dividend income **decreased** by £23,692 in 2020/21 from the previous year’s dividend income and Covenant funds decreased by £11,659 from the previous year.
The decrease in dividend income was largely due to expectations on financial markets in 2020 due to Covid-19. The UK markets, in particular, had a challenging year due to the outperformance of growth stocks and also the suspension of dividend payments for financial institutions. There was however a rotation from growth to value stocks late 2020 and this greatly supported the portfolio’s performance.
The decrease in Covenant funds was also due to Covid-19. In light of the volatile financial situation, parents and carers of new Year 7 students have not yet been made aware of the covenant fund. It is hoped to address this in the near future and that funds will return.
The largest expended resource in 2020/21 was a donation to the Academy for £246,113 towards the cost of the new Science Block, the renovation of the Fitness Suite and school recruitment. The remainder of the expenditure was to help families on low income pay for compulsory school trips and transport on the school buses.
Page 4
## **FUTURE DEVELOPMENT PLANS**
Future grants to the school may include:
1. A contribution of £54,000 towards the renewal of two flat roofs
2. A contribution of £17,000 towards the repair of the drainage system
3. Support of a project to install low-cost LED lighting across the school
A review of Operational Procedures to define and match Parmiter's School's (Academy) needs with available Foundation resources is ongoing due to the financial pressures that the school is currently facing.
The implementation of the updated procedures will enhance Trustees' control over the meeting of the Foundation's charitable fundraising.
## **RESERVES POLICY**
The total funds for the year ended 31st August 2021 was £14,530,167. This was made up of as follows:
- £4,190 restricted funds – money reserved to help students taking gap year’s both within the community and aboard. There is no expected timescale for this expenditure.
- £9,157,483 – designated funds made up of Covenant funds (£357,483), land and buildings (£8,800,000)
- The balance of £5,368,494 is unrestricted and is the balance of the investment portfolio as of 31st August 2021.
## **Restricted & Unrestricted Funds**
In the opinion of the Trustees the Foundation's assets which are attributable to Restricted and Unrestricted Funds are available and adequate to meet liabilities of those Funds.
Financial detail of those Funds is shown in Notes 11 and 12.
The Fund is maintained to cover ongoing expenditure which is made up of student bursaries, Trustee training expenditure and staff salaries. In addition, the charity retains funds to ensure it can meet any unforeseen costs relating to the buildings.
## **Disclosure of Information to Auditors**
Each of the Trustees has confirmed that, insofar as they are aware, there is no information of which they are aware which is relevant to the audit, but of which the auditors are unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.
This report was approved by the Trustees on ________________ and signed on their behalf by: 7 March 2022
Mrs J Glossop Chairman of the Board of Trustees
Page 5
## **STATEMENTS OF TRUSTEES’ RESPONSIBILITIES**
The Trustees of Parmiter's School Foundation ("the Foundation") are required under the Charities Act 2011 to prepare financial statements for each financial period _I_ year which give a true and fair view of the Foundation's financial activities during the period _I_ year and of its financial position at the end of the period _I_ year.
In preparing financial statements giving a true and fair view, the Trustees should follow best practice and;
1. Select suitable accounting policies and apply them consistently
2. Make judgments and estimates that are reasonable and prudent
3. State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departure disclosed and explained in the financial statements
4. Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Foundation will continue in operation
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 6
**Independent Auditor's Report to the Trustees of Parmiter's School Foundation**
## **Opinion**
We have audited the financial statements of Parmiter’s School Foundation for the year ended 31 August 2021 which comprise of the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity’s affairs as at 31 August 2021, and of its incoming resources and application of resources, for the year then ended;
- • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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**
In auditing the financial statements, we have concluded that the trustees’ 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 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 trustees 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 auditor’s report thereon. The trustees are 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 there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
Page 7
**Independent Auditor's Report to the Trustees of Parmiter's School Foundation**
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
- the charity has not kept adequate accounting records; or
- • the financial statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we required for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees 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 trustees 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 trustees are responsible for assessing the 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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control.
- • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Page 8
**Independent Auditor's Report to the Trustees of Parmiter's School Foundation**
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees 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 any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.
Date:
## **Shivani Kothari (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP Statutory Auditor**
4 Victoria Square St Albans, Hertfordshire AL1 3TF
Moore Kingston Smith LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
Page 9
## **Parmiter's School Foundation Statement of Financial Activities**
## **(Incorporating the Summary Income and Expenditure Account) For the year ended 31 August 2021**
|**Total**
**Note Unrestricted**
**Restricted**
**Funds**
**Year ended**
**Funds**
**Funds**
**2021**
**£**
**£**
**£**
**Income and Endowments from:**
Donations and legacies
2
53,746
-
53,746
Charitable activities
3
-
-
-
Investments
4
104,126
-
104,126
**Total**
**157,872**
**-**
**157,872**
**Expenditure on:**
Charitable activities
369,120
369,120
Other
56,818
-
56,818
**Total**
5
**425,938**
**-**
**425,938**
**Net (expenditure)/income before gains and**
**losses on investments**
(268,066)
-
(268,066)
Net gains/(losses) on investments
8
812,378
-
812,378
**Net Income/(Expenditure)**
544,312
-
544,312
**Net Movement in Funds**
**544,312**
**-**
**544,312**
**Reconciliation of funds:**
Total funds brought forward
13,981,665
4,190
13,985,855
**Total funds carried forward**
11
**14,525,977**
**4,190**
**14,530,167**|**Total**
**Unrestricted**
**Restricted**
**Funds**
**Year ended**
**Funds**
**Funds**
**2020**
**£**
**£**
**£**
60,345
-
60,345
-
-
-
127,305
-
127,305|
|---|---|
||**187,650**
**-**
**187,650**|
||128,200
128,200
46,452
-
46,452|
||**174,652**
**-**
**174,652**|
||12,998
-
12,998
(161,494)
0
(161,494)|
||(148,496)
0
(148,496)
**(148,496)**
**0**
**(148,496)**|
||14,130,161
4,190
14,134,351|
||**13,981,665**
**4,190**
**13,985,855**|
All gains and losses arising in the year have been included in the Statement of Financial Activities and arise from continuing operations.
The notes on pages 12 to 19 form a part of these financial statements.
Page 10
## **Parmiter's School Foundation Balance Sheet at 31 August 2021**
|**Notes**
**2021**
**£**
**Fixed Assets:**
Tangible assets
7
Investments
8
**Current Assets:**
Debtors
9
5,969
Cash at bank and in hand
46,300
52,269
**Creditors: Amounts falling due**
**within one year**
10
(218,351)
**Net Current Assets**
**Total assets less current liabilities**
**Net Assets**
**Funds**
11
Unrestricted funds
General
Designated funds
Restricted funds
Approved by the board on ……………………..
Mrs J. Glossop
Chairman
Charity Number: 312704|**2021**
**£**
8,800,000
5,896,249
14,696,249
(166,082)
14,530,167
**14,530,167**
5,368,494
9,157,483
4,190
**14,530,167**|**2020**
**£**
4,253
109,231
113,484
(14,275)|**2020**
**£**
8,800,000
5,086,646|
|---|---|---|---|
||||13,886,646
99,209|
||||13,985,855|
||||**13,985,855**|
||||4,847,183
9,134,482
4,190|
||||**13,985,855**|
|||||
Page 11
## **Parmiter's School Foundation Notes to the Accounts For the year ended 31 August 2021**
## **1 Accounting Policies**
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
## **(a) Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, 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) (2nd edition - October 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention with the exception of land and buildings and investments which are included at market value, as modified by the revaluation of certain assets.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.
## **Going concern**
The Trustees have assessed whether the use of going concern is appropriate and have considered possible events or conditions, including the impact of Covid-19, that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. After making enquiries, the Trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## **Significant judgements and estimates**
Preparation of the financial statements requires management to make significant judgements and estimates. The freehold land and buildings are not depreciated as the trustees consider that investment in the property is sufficient to offset any wear and tear that woudl decrease their value. The policy will be reviewed each year and if there are any indications of impairments the policy will be changed.
## **(b) Incoming resources**
All income is accounted for when receivable with the exception of donations and gifts which are accounted for when received.
## **(c) Resources Expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Wherever possible costs are directly attributed to these headings. Costs common to more than one area are apportioned on a reasonable basis or on a direct cost basis. The irrecoverable element of VAT is included with the expense item to which it relates.
Support costs are those costs incurred in support of the charitable objectives. These have been allocated to the charitable activities on a basis that fairly reflects the true use of those resource within the organisation.
Management and administration costs are those incurred in the governance of the Charity and are primarily associated with the constitutional and statutory requirements.
Page 12
## **Parmiter's School Foundation Notes to the Accounts For the year ended 31 August 2021**
## **(d) Tangible Fixed Assets**
- (i) Freehold land and buildings are functional assets and are shown at the revaluation value and include additions during the year.
## **(e) Financial instruments**
- (i) **Cash and cash equivalents**
Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less as well as a multi option facility with a limit of £500,000 with UBS.
## (ii) **Debtors and creditors**
Debtors and creditors receivable or payable within one year of the reporting date are carried at their at transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.
## (iii) **Fixed Asset Investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
## **(f) Funds**
Unrestricted - these represent funds which the Trustees are free to use in accordance with the charitable objects.
Designated - these are funds set aside by the Trustees for specific purposes. Restricted - these are funds that can only be used for a particular purpose within the objects of the Charity as specified by the donor.
Page 13
## **Parmiter's School Foundation**
## **Notes to the Accounts For the year ended 31 August 2021**
|**2**
**Donations and legacies**
Donations
**3**
**Charitable activities**
Farm and bungalow rent
**4**
**Investment income**
UBS investment portfolio
**5**
**Expenditure:**|**2021**
**£**
53,746
**2021**
**£**
-
**2021**
**£**
104,126|**2020**
**£**
60,345|
|---|---|---|
|||**2020**
**£**
-|
|||**2020**
**£**
127,305|
||||
|**Expenditure:**|||||
|---|---|---|---|---|
|**Note**
**Direct charitable activities:**
School Premises
School bus donation
Academy support costs
Scholarships, prizes and Academy grants
**Other expenditure:**
Support Costs
5a
Governance Costs
5b
Investment management costs
**Total**|**Direct**
**Costs**
**£**
30,745
8,358
112,904
217,113
**369,120**
-
10,346
**10,346**
**379,466**|**Support**
**Costs**
**£**
-
-
-
-
**-**
38,459
8,013
-
**46,472**
**46,472**|**Year ended**
**2021**
**£**
30,745
8,358
112,904
217,113
**369,120**
38,459
8,013
10,346
**56,818**
**425,938**|**Year ended**
**2020**
**£**
9,340
8,036
93,711
17,113|
|||||**128,200**
30,390
9,111
6,951|
|||||**46,452**|
|||||**174,652**|
Page 14
## **Parmiter's School Foundation**
## **Notes to the Accounts For the year ended 31 August 2021**
|**5a**
**Support costs**
**Year ended**
**2021**
**£**
Academy support costs
27,005
Accountancy fees
6,294
Professional fees
5,160
38,459
**5b**
**Governance costs**
**Year ended**
**2021**
**£**
Trustees expenses
573
Auditors' remuneration - current year
7,440
Other governance costs
8,013
Trustees' expenses cover reimbursement of training, travel and other costs.
The number of Trustees claiming expenses during the year was
**1**|**Year ended**
**2021**
**£**
27,005
6,294
5,160
38,459
**Year ended**
**2021**
**£**
573
7,440|**Year ended**
**2020**
**£**
21,750
3,480
5,160|
|---|---|---|
|||30,390|
|||**Year ended**
**2020**
**£**
2,031
7,080
-|
|||9,111|
|||**3**|
No Trustees were paid any remuneration during the year.
## **6 Staff Costs**
All staff are employed by the academy. The appropriate time allocation for 3 staff is recharged to the Foundation.
## **Key management personnel**
The key management personnel of the foundation comprise the Trustees and employees of the academy, listed in the Trustee report. The total amount of employee benefits (including employer pension contributions) of key management personnel recharged for their services to the foundation was £6,000 (2020: £6,500).
Page 15
## **Parmiter's School Foundation Notes to the Accounts**
## **For the year ended 31 August 2021**
## **7 Tangible Fixed Assets**
|**Tangible Fixed Assets**
**Cost/Valuation**
As at 1 September 2020 and 31 August 2021|**Freehold**
**Land and**
**Buildings**
**£**|**Total**
**£**|
|---|---|---|
||8,800,000|8,800,000|
The buildings have been insured at the reinstatement value of the property. Following a review, no impairment has been identified.
A desk-top valuation was carried out by Lambert Smith, Chartered Surveyors, in February 2017. A desk-top valuation does not constitute a formal valuation in accordance with the RICS Valuation Professional Standards (January 2014). However, the basis of valuation adopted accords with the RICS definition of Market Value. The methodology applied in the review process gave a value between £8,656,863 and £9,341,863. The Trustees believe that the market value at 31 August 2021 is not materially different to the latest valuation.
The trustees review the condition of the building on a regular basis. During the year to 31 August 2021 over £30,746 was spent on the repairs and upkeep of the property.
|**8**
**Investments**
**Year**
**ended**
**2021**
**Funds managed by UBS**
**£**
**Listed investments:**
Market value 1 September
4,820,459
Cost of additions/Funds invested
1,591,721
Less Proceeds on disposal
(1,669,615)
Net gains/(losses)
812,378
**Market Value of Investments**
5,554,943
Un-invested funds at UBS
341,306
**Total Investment Value**
5,896,249
The market value at 31 August 2021 comprises:
Listed investments
5,554,943
Cash awaiting investment
341,306
5,896,249
The market value of investments at 31 August 2021 is represented by the following:
Money Market Time
58,331
Bond Investments
569,078
Equity Investments
3,761,972
Alternative Investments
900,381
Real Estate Investments
265,181
5,554,943
**Historic cost**
4,241,904|**Year**
**ended**
**2021**
**£**
4,820,459
1,591,721
(1,669,615)
812,378|**Year**
**ended**
**2020**
**£**
5,129,559
2,344,942
(2,492,548)
(161,494)|
|---|---|---|
||5,554,943|4,820,459|
||341,306|266,187|
||5,896,249|5,086,646|
||5,554,943
341,306|4,820,459
266,187|
||5,896,249|5,086,646|
|||-
651,696
3,194,316
735,836
238,611|
||5,554,943|4,820,459|
||||
||4,241,904|4,241,904|
The following investment represented more than 5% of the portfolio: Key Multi Mgr £ Focused 8.28% Key Multi Mgr £ Diversfield 7.93% UBS ICVC S&P500 INDX FU 8.63%
Page 16
## **Parmiter's School Foundation Notes to the Accounts For the year ended 31 August 2021**
|**9**
**Debtors**
**Amounts falling due within one year:**
Income tax claim
Other debtors
**10**
**Creditors**
**Amounts falling due within one year:**
Accruals
Overdraft facility
Trade creditors|**Year ended**
**2021**
**£**
5,734
235
5,969
**Year ended**
**2021**
**£**
12,600
200,897
4,854
218,351|**Year ended**
**2020**
**£**
3,673
580|
|---|---|---|
|||4,253|
|||**Year ended**
**2020**
**£**
12,535
-
1,740|
|||346,918|
The overdraft is a Lombard Loan facility with UBS. Interest of £897 was charged on 30 June 2021.
Page 17
## **Parmiter's School Foundation Notes to the Accounts For the year ended 31 August 2021**
## **11 Funds**
|**Unrestricted Funds**
General Fund
**Designated Funds**
Fixed Assets
Revaluation Reserve
School Development
**Restricted Funds**
Emma Dinata Fund
Suzanne Chase Foundation
**Total Charity Funds**|**At**
**1st September**
**2020**
**£**
4,847,183
1,775,320
7,024,680
334,482
13,981,665
3,020
1,170
4,190
-
13,985,855|**Incoming**
**Resources**
**for the Year**
**£**
104,126
-
-
53,746
157,872
-
-
157,872|**Net**
**(Outgoing)**
**Gains/losses on**
**Resources**
**investments**
**for the Year**
**for the year**
**£**
**£**
(395,193)
812,378
-
-
-
-
(30,745)
-
(425,938)
812,378
-
-
-
0.00
-
(425,938)
812,378|**Transfers**
**£**
-
-
-
-
-
-
-
-
-|**At**
**31st August**
**2021**
**£**
5,368,494
1,775,320
7,024,680
357,483|
|---|---|---|---|---|---|
||||||14,525,977|
||||||3,020
1,170|
||||||4,190|
||||||-
14,530,167|
## **Nature and Purpose of Designated Funds**
**Fixed Assets** represents the valuation of the Land and Buildings held by the Foundation.
**School Development** represents the fund set up in 1980 by means of a Covenant Scheme, whereby parents execute deeds of covenant in favour of the Governors. The monies are held on deposit pending expenditure. The Fund is intended to finance expenditure not otherwise funded by the School Governors or by Government funding.
## **Nature and Purpose of Restricted Funds**
**Emma Dinata Fund** represents donations received in memory of a former pupil of the school. The fund is intended to support students who request help with financing extra-curricular activities.
**Suzanne Chase Foundation** represents donations received in memory of a former pupil of the school. The funds are to be spent on pupils, both current and former, to finance expenditure not otherwise funded by the School Governors or Government funding.
Page 18
## **Parmiter's School Foundation**
## **Notes to the Accounts For the year ended 31 August 2021**
## **12 Analysis of Net Assets between Funds**
|**31st August 2021**
Fixed Assets
Net current assets/(liabilities)
**31st August 2020**
Fixed assets
Net current assets/(liabilities)
**Total**|**Restricted**
**Fund**
**£**
-
4,190
4,190
-
4,190
4,190|**Unrestricted**
**Funds**
**£**
14,696,249
(170,272)
14,525,977
13,886,646
95,019
13,981,665|**Total**
**£**
14,696,249
(166,082)|
|---|---|---|---|
||||14,530,167|
||||13,886,646
99,209|
||||13,985,855|
## **13 Related Party Transactions**
Parmiter's School is a related party through common control. The total donations granted to the School during the year were £358,865 (2020: £122,127). The donations were for a variety of different expenses including:
|Recharge of salaries
Other contributions
Speech night gifts and prizes
Donations to the school
Donation - flooring
Donation - air conditioning
Other day to day school operating costs
Contribution towards low income family buses and educational visits|**2021**
**£**
8,998
21,750
76,043
2,909
3,062
246,113
-
-
358,875|**2020**
**£**
9,329
21,750
17,197
3,867
5,984
64,000
-
-|
|---|---|---|
|||122,127|
## **14 Controlling Party**
In the opinion of the Trustees, there is no controlling party.
Page 19
## **Parmiter's School Foundation Management Information For the year ended 31 August 2021**
|**1**
**Premises**
School Premises
**2**
**Miscellaneous direct costs**
Grants to parents
Charitable Donations
Covenant Fund contributions to the school
Other Charitable Costs
**3**
**Other Grants and Awards**
Grants to the Academy
**4**
**Investment Management Expenses**
Investment management expenses
**5**
**Support Costs**
Salary Recharge - Clerk
Salary Recharge - Finance
Salary Recharge - Premises
Accountancy fees - current year
Professional fees
**7**
**Governance costs**
Auditor's remuneration - current year
Trustees' expenses
**Total Resources Expended**|**2021**
**£**
30,745
30,745
**Year ended**
**2021**
**£**
8,358
12,043
64,000
36,861
121,262
**Year ended**
**2021**
**£**
217,113
217,113
**Year ended**
**2021**
**£**
10,346
10,346
**Year ended**
**2021**
**£**
12,750
6,000
3,000
6,294
10,415
38,459
**Year ended**
**2021**
**£**
7,440
573
8,013
**425,938**|**2020**
**£**
9,340|
|---|---|---|
|||9,340|
|||**Year ended**
**2020**
**£**
8,036
17,197
64,000
12,514|
|||101,747|
|||**Year ended**
**2020**
**£**
17,113|
|||17,113|
|||**Year ended**
**2020**
**£**
6,951|
|||6,951|
|||**Year ended**
**2020**
**£**
12,750
6,000
3,000
3,480
5,160|
|||30,390|
|||**Year ended**
**2020**
**£**
7,080
2,031
-|
|||9,111|
|||**174,652**|