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2020-08-31-accounts

Charity Registration Number 312714

Consolidated Report and Financial Statements

Year Ended 31 August 2020

Contents

Principal Addresses and Advisers 3
Trustees’ Report and Statement of Responsibilities 4
Governor Committees 5
Chair of Governors Foreword 5
Head and Principal Foreword 7
Trustees’ Report 8
Fundraising 19
Financial review 20
Governance Matters 23
Statement of Governors’ Responsibilities 25
Independent auditor’s report 27
Consolidated statement of fnancial activities 29
Consolidated and charity balance sheets 30
Consolidated cash fow statement 32
Notes forming part of the accounts 33

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

Principal Addresses and Advisers

Address

Latymer Upper School The Latymer Preparatory School King Street 36 Upper Mall Hammersmith Hammersmith London London W6 9LR W6 9TA

Bankers

National Westminster Bank 22 King’s Mall London W6 OQD

Investment Advisers

Smith & Williamson Investment Management LLP Portwall Place Portwall Lane Bristol BS1 6NA

Solicitors

Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH

Insurance Brokers

Marsh Ltd 9– 17 Perrymount Road Haywards Heath West Sussex RH16 3DU

DAC Beachcroft LLP 100 Fetter Lane London EC4Y 1BN

Auditors

BDO LLP 2 City Place, Beehive Ring Road Gatwick, West Sussex RH6 0PA

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Trustees’ Report and Statement of Responsibilities

The Trustees of the Foundation are the Governing Body which comprises 1 Ex-Officio Governor and up to 15 Co-Opted Governors, who hold office for five-year terms. In accordance with clause 7(1) of the Scheme of 3 August 1998, every Co-opted Governor may be re-elected for further terms of five years by a resolution of the Governors, upon which the Co-opted Governor standing for re-election may not vote.

THE GOVERNORS IN OFFICE DURING THE YEAR AND UP TO THE DATE OF SIGNING THE ACCOUNTS WERE:

Co-opted

Rosalind Sweeting – Chair

Gubby Ayida Mark Brewer Pauline Campbell (appointed 17[th] December 2020) Chantal Free Stephen Hodges (resigned 26[th] November 2019) Nicholas Jordan (resigned 2[nd] December 2020) Rob Lewis (appointed[th] October 2019) Joanna Mackle (resigned 3[rd] February 2021) Kieran Murphy (appointed 17[th] December 2020) Annamarie Phelps Alex Plavsic David Price (appointed 26[th] November 2019) James Priory Tracey Scoffield James Smith (resigned 28[th] January 2020) Bobby Uberoi Charles Wijeratna

Ex-officio

The Rev’d Simon Downham, Vicar of St Paul’s Church, Hammersmith

The Head David Goodhew MA FRSA

Finance Director Fiona I’Anson BA CPFA

Clerk to Governors Lucinda Evans BA

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Governor Committees

Finance and General Purposes Chair Stephen Hodges(until 12thNovember 2019)
Nicholas Jordan(from 12thNovember 2019 until 11thNovember 2020)
Members Nicholas Jordan(until 11thNovember 2019)
Rosalind Sweeting
Charles Wijeratna
Alex Plavsic(from 23rdSeptember 2020 until 11thNovember 2020)
Communications
(disbanded in November 2019)		 Co-Chairs Tracey Scofeld, Joanna Mackle
Member Charles Wijeratna
Audit and Risk Chair Alex Plavsic(until 4thMay 2020)
Mark Brewer(from 4thMay 2020)
Members Gubby Ayida
Anne Barnard(invited from 13thJanuary 2021)
Mark Brewer(until 4thMay 2020)
Chantal Free
Bobby Uberoi(from 14thOctober 2020)
Investment Chair Rosalind Sweeting
Members Massimiliano Belingheri(invited)
Georg von Opel(invited until 17thMarch 2020)
Robert Pierce Jones(invited)
Bobby Uberoi
Education and Pastoral Co-Chairs James Smith
James Priory(until 6thNovember 2019)
Chair James Priory(from 6thNovember 2019)
Members Annamarie Phelps
David Price(from 3rdMarch 2020)
Tracey Scofeld
Helen Lowe(invited)
Nominations Chair Rosalind Sweeting
Members Gubby Ayida
Mark Brewer
Nicholas Jordan(until 2ndDecember 2020)
Tracey Scofeld
Charles Wijeratna

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Introduction by Chair of Governors

Welcome to our 2019/20 Annual Report and Accounts. At the beginning of this academic year no one could have predicted the impact and extent of the global pandemic which developed in early 2020. Like every charity, we have had to work hard and fast to adapt our operations to cope with seismic changes to our way of life.

As a Governing Body, we have focused on providing strong governance and effective leadership during this turbulent period. Our first priority has been the health and wellbeing of both staff and students and we have worked closely with the Head and his Senior Management Team to respond to their immediate needs and those of our local community.

Steering the Foundation through this unprecedented period has been challenging and it is clear that we are not out of the woods yet. There is still much uncertainty about the future and we must do all we can to ensure the financial resilience of the Foundation for the longer term. Now, more than ever, our mission to provide an outstanding education for all academically able children, no matter their financial means, is a moral imperative. We know we will face difficult times ahead but we continue to strive towards our goal of funding one in four pupils on a bursary by 2024. In the same way, our commitment to our outreach work is undimmed and we have adapted delivery of our programmes to the needs of local children whose education has been disrupted by school closures. As well as opening the school as a safe place for the children of key workers and vulnerable children and running holiday camps focusing on wellbeing, we also worked to tackle digital poverty, providing hardware to local secondary school children so that they could access their teaching and learning remotely.

It was humbling to see how many Latymer families donated money to the Emergency Bursaries Fund we launched in the summer term. We set up the fund to ensure that no child has to leave the school because of a change in their family’s financial situation as a result of the pandemic. The unfailing generosity of the Latymer community, together with the many selfless acts undertaken to support local families in need, is truly inspiring.

These values of good citizenship and empathy, which we nurture alongside a broad education grounded in humility, impressed the Independent Schools Inspectorate (ISI) who visited us earlier in the year. Their report was extremely positive about all aspects of the education and pastoral care offered at Latymer Prep and Latymer Upper Schools. Never have these qualities been put more to the test than during 2020.

I am so proud of our community and the way that it has responded to this crisis and continues to do so.

Ros Sweeting Chair of Governors

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Head & Principal foreword

The 2019/20 academic year was very much a tale of two halves – the best and the worst of times – and both have brought out the best of the Latymer community.

Until March staff were busy teaching a full curriculum and a myriad of extracurricular activities were taking place across the school; concerts and plays were performed by our talented students, one of whom was a finalist in the BBC Young Musician of the Year competition, and there were scores of sporting highlights including our 1st VII netball team reaching the national finals. Our school charity theme chosen by our pupils was ‘Environmentalism and Sustainability’ and among the activities was the planting of more than 7,000 trees in West London parks during National Tree Week, setting a new record.

We also made significant improvements to the outdoor areas on the school site, with more green spaces and summer flower beds. When lockdown began, the majority of our planned works including the significant redevelopment of the Sixth Form Centre had to be postponed, but thankfully we were able to complete the installation of environmentally friendly ‘green walls’ around our play areas over the summer holiday.

The period from March onwards was the most unprecedented and challenging we have known in all our years of teaching. As the site was forced to shut, we moved swiftly to remote learning, continuing high quality education provision for all students, albeit in a different form and subject to certain constraints. We were so proud of the ability and resilience of all of our students as we adapted to online learning across both schools. We were also delighted to be able to partially reopen the Prep School before the end of Summer Term and have our Year 10s and 12s back on site for wellbeing workshops and sessions on university applications and career advice.

The year was particularly unsettling for our Year 11 and 13 students who, despite the tumultuous period of confusion and u-turns over results, achieved stellar results. The grading process we adopted was both rigorous and fair in every regard and the results were excellent and well-evidenced. We speak for all the staff in Upper and Prep schools, when we say how proud we are of the remarkable achievements of these students.

As well as managing the impact of the pandemic on core school operations, we were delighted to be able to continue supporting our community and it is testament to our ethos and values that our staff, parents, pupils and alumni immediately volunteered their time and skills to help people in need. A Year 10 student even earned recognition from the Prime Minister for her innovative solution to tackling isolation amongst the elderly in care homes, whilst our alumni set up a production line in our Design department and created more than 100,000 pieces of PPE.

Whilst school life continues to be disrupted, we are proud of how we have responded as a charity and as two schools, staying true to our aims throughout this most challenging of times.

David Goodhew Andrea Rutterford Head, Latymer Upper School

Principal, Latymer Prep School

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Trustees’ report

AIMS OF THE CHARITY

The Latymer Foundation provides leading coeducational schooling in the UK, providing young people from all backgrounds with a life-changing education that equips and inspires them to make a positive impact on society and to excel in the wider world. There are two co-educational schools – Latymer Upper School (years 7 to 13) with 1,249 pupils, and Latymer Preparatory School (Years 3 to 6) with 171 pupils. Pupils come from West London and surrounding boroughs.

1,420

pupils attending Latymer Upper School and Latymer Preparatory School

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THE AIMS OF LATYMER UPPER SCHOOL

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THE AIMS OF LATYMER PREP SCHOOL

Latymer Prep School provides a supportive learning environment within which the potential of each child to progress and achieve is seen as unlimited.

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ACHIEVEMENTS

G.C.S.E Level

Academic results

The examination results for 2020 were awarded nationally as Centre-Assessed Grades (CAGs). At Latymer Upper School these grades were put forward based on teacher judgements and underwent a rigorous internal process consisting of several stages involving teachers, Heads of Department, key pastoral staff and the academic management team, with the Head ultimately signing them off. We were fully satisfied that our systems were thorough, evidence-based and robust, and that students received the grades we believe correctly represent what they would have achieved had they taken the exam in summer 2020.

100 % pass rate 59% Grade 9 83% Grade 8 & 9 96% Grade 7 – 9

‘A’ Level

100 % pass rate 42% with A grade 80% with A/A grades 95% with A*– B grades

195 The 195 A level students of summer 2020 went on to achieve much success in their university applications.

92%

Of those seeking places this year, 92% were placed at their first or insurance choice of university.

Students going on to study Medicine

14

Students going on to study Veterinary Medicine

2

Students who went to Oxford or Cambridge (including 6 students who reapplied from 2019).

29

Students have secured places overseas

10 USA

4 EU institutions 1 Australia 1 Canada

Students to pursue Art (including 2 to the Royal Drawing School)

6

Students who have places at drama schools

2

Student who has a place at the Royal College of Music

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INSPECTION

During the year, the Independent Schools Inspectorate (ISI) conducted a “focused compliance” inspection combined with an inspection of “educational quality”.

The report was extremely positive on all aspects of the education and pastoral care offered at Latymer Prep and Upper Schools and there was no further action required as a result of the inspection.

The Educational Quality aspect of the inspection focuses on the two key outcomes:

Alongside excellent academic development, our Latymerians’ social awareness and good citizenship were noted by inspectors:

The key findings of the report are:

ENGAGEMENT AND OUTREACH

Both Latymer Upper and Prep Schools have a strong ethos of social inclusivity and strive to be good neighbours. The Foundation has a large number of meaningful partnerships with maintained primary and secondary schools, local community groups and a range of charities. Whilst the delivery of some of the outreach programmes was impacted by the lockdown in March 2020, many ran for much of the year, and as the pandemic arrived our outreach team was able to adapt its focus to how we could make a real difference to the lives of children and young people during this extraordinarily challenging time.

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Community support during Covid-19

The Foundation took action during lockdown to provide support to those students particularly disadvantaged by schooling from home. These students came both from within our school, as families on means-tested bursaries; and from maintained schools in the community.

Digital poverty and free school lunches

We sent WiFi dongles to students who were struggling with their internet connection during online learning: 25 to our bursary students, a further 300 to students identified by local maintained schools, and 5 iPads to other students from maintained schools.

Many of our bursary students receive free school lunches from us and we continued to provide funding for food directly during this period.

On-site learning: Latymer Hubs

While the majority of students stayed at home during lockdown and school closures, Latymer Upper School remained open to children of key workers, and those who needed it for reasons relating to welfare or disadvantage. This included term-time ‘Hubs’ which provided lunch and a safe space for students to take part in their remote learning.

The Head of English in the Prep School provided teaching support to vulnerable children in Years 7 and 8 as part of this resource.

Latymer Camps with Let Me Play

During school holidays we worked with community group, Let Me Play, to host an Easter Hub for 43 young people and 90 young people at a Summer camp on our site. The camps focused on positive well-being and

partnered with Really Wild to offer a range of activities including bushcraft, t-shirt painting, sport, ice-cream making and water games (the latter of which were much needed during the summer heatwave). Each activity was carefully designed to develop self-esteem and confidence whilst being fun, safe and socially distanced. Young people came from 28 different primary and secondary schools across London, including many from our own school partners.

Our Summer Camps provided a lifeline to vulnerable children and the children of key workers. The focus on wellbeing through social interaction and connectedness, physical exercise, the easing of anxiety, developmental support, entertainment and provision of a safe place did much to address the stress on these young people and their families.

Let Me Play described this summer as “the most rewarding Summer we have ever had”.

PPE Provision

From the start of lockdown, Latymer was able to make use of its resources to create PPE for healthcare workers. We hosted Augment Bionics and our alumnus George in our Design department, where our staff, alumni and Year 13 students made 105,000 face shields which were distributed to medical settings across the UK.

We were also able to donate repurposed equipment from our Science departments, including 350 face goggles for St George’s Hospital and 1900 non-latex gloves for London Borough of Hammersmith and Fulham’s Primary Care Hub. Many students also engaged in fundraising and PPE-making activities from their own homes, producing visors and scrub bags or creating clothing brands sold to profit NHS Charities Together.

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Partnerships and Enrichment Initiatives

We worked in partnership with an educational charity, Generating Genius, to continue to offer extra-curricular learning experiences to pupils from local maintained primary and secondary schools with a vision of inspiring them to consider an education at Latymer. We have partnered with Generating Genius in their Junior Genius sessions since 2017/18, aimed at Year 10 and 11 students who are passionate about STEM. Last year our staff and alumni delivered 4 Maths and 3 Physics masterclasses to 20 students of a BAME background from maintained partner schools.

In 2019-20

maintained primary schools 6 participated in the Maths Teams programme at Latymer, sending a total of 40 pupils in Year 5 and 6.

10 Lower Sixth Form students volunteered as Maths Coaches for the duration of the 13 week programme, supported by teaching staff in Latymer’s Maths department. Together, teachers and coaches gave around 94 hours of their time in these sessions.

A new partnership was established in 2018/19 with Maths Teams , an organisation with a vision to see as many maths teams as football teams with a goal of inspiring young people to develop a love of maths. Maths Teams enables pupils to extend their maths experience and skills in a fun and competitive environment.

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In addition to delivering enrichment programmes in partnership with external educational organisations, there are a number of long-running initiatives that continue to be delivered by Latymer staff for the benefit of children and young people in the wider community. Whilst the delivery of some of these programmes was impacted by the lockdown in March 2020, many ran for a good period of time in the months preceding.

Primary Debating

Taking place weekly between November and March, Primary Debating returned for its tenth year. Forty-four children from 10 local primary schools took part, learning debating skills taught by enthusiastic Lower Sixth student volunteers.

Saturday School

This programme aims to bridge the gap between primary and secondary school, and is our longest-running at Latymer Upper School, having run for over 25 years. Last year, we saw 125 Year 6 pupils participating from 24 maintained primary schools. Twelve different topics were covered including languages, science, design, maths, history, geography and english. Eleven students from Year 10 and Lower Sixth volunteered to support lessons each week, providing experiences that contributed to their Silver Duke of Edinburgh or Service in the Community.

STEM Academy

Thirty-eight pupils signed up for STEM Academy from 8 partner schools, with sessions running every Saturday. Students developed STEM skills through engaging and interactive lessons building robots, which mimic the design and engineering process used by scientists and engineers in industry today.

Phoenix Twilight Sessions

Each year throughout all three terms, 17 supplementary lessons are provided to Year 11 students from Phoenix Academy to provide additional learning in Science, English and Maths. Fifteen students were taught last year by six Latymer Upper School teachers, providing 13 hours of teaching time.

Opening the door to coding

Teaching staff at the Prep School have continued to share their expertise with other schools and children throughout the UK. The Head of IT is regularly involved in Raspberry Jam. This is a country-wide initiative aimed at encouraging young children in coding. The Head of IT also hosts termly CAS Community Meetings for external schools. Topics cover different elements of computing and each meeting includes a workshop on the specific topic being discussed.

Rugby Tournament

The Head of Games in the Prep School worked with the Head of Rugby in Latymer Upper School to offer a rugby tournament between eight local state primaries. The tour was held locally and included free coaching for year 5 and year 6 children to improve their rugby skills. This was the first tour of what we hope will be an annual event.

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Partner schools were invited to Latymer Upper to participate in a wide range of talks, events, practice interviews, careers and HE information evenings, as well as networking events off-site.

A selection of events

17

Sixth Form students attended King’s College Lecture on Latin American Studies

100

students attended our Media Networking event

9

students from KAA, Twyford and WLFS joined our alumni and Sixth Formers to hear Mark Carney, then Governor of the Bank of England, who was keynote speaker at our Legal and Finance Networking event

28

students from Latymer Upper School, Kensington Aldridge Academy, Phoenix Academy, Twyford C of E High School and West London Free School logged on to our online Legal & Financing Networking event kindly hosted by the Chambers Director of Maitland Chambers

38

Oxbridge practice interviews with students from West London Free School, William Morris Sixth Form and Kensington Aldridge Academy, plus medical interviewing at UCL for 8 students

50 attendees at West London LGBT+ Schools Alliance workshop

30

Year 12s attended our Networking Masterclass

Whole School Tree Planting Day in Elthorne Park with The Conservation Volunteers (TCV) charity

GIVING BACK TO THE COMMUNITY

Last year 170 Lower Sixth students participated in Service in the Community by taking on a volunteer placement within the local community. A broad range of placements were on offer in community organisations and schools on either a weekly or fortnightly basis between November 2019 and May 2020. The

programme enables students to make a meaningful and tangible difference whilst developing their social skills and character. All the while, the programme provides each student with a unique experience of volunteering and builds in the individual an awareness of charity and how important it is to give back.

Some of this year’s community partners include Rugby Portobello Trust, Into University, Fulham Good Neighbours, Dance West and Hammersmith Community Gardens. School partnerships included St Paul’s Primary, St Stephen’s Primary, Flora Gardens Primary and West London College .

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The following extract, taken from an email by the Head of Volunteer Engagement at City Harvest, one of our community partners, sums up the Service in the Community programme far better than we can:

We have had 13 students from Latymer Upper School sign up to attend volunteering shifts at City Harvest. As part of their work they help us to sort and unload our nightly delivery of surplus food. Over the past three months students from Latymer have volunteered 135 hours of their time to City Harvest. That time has helped us to collect and sort 7.6 tonnes of surplus food, deliver 14,445 meals to Londoners in need and prevent over 28.5 tonnes of greenhouse gas emissions.

Paula our Head of Daily Operations said

The sixth formers that come in are very interested and ask sensible questions. The students seem to know why they are here and understand the issue they are trying to combat. The students are incredibly polite and socialise well with our diverse variety of volunteers. They have really great working relationships with each other which spills over into their working relationships with everyone in the warehouse.

We couldn’t be more proud of our students’ contribution this year.

School Governors

Latymer counts six members of staff who continue to work as governors of schools across London:

Maintained: West London Free School, The Twickenham School, The Worple Primary school in Isleworth, The Queen’s Church of England Primary School in Kew, and Bradfields Academy which provides specialist SEND provision for students with complex learning needs.

Independent: The King Alfred School in Golders Green

BBC Radio 2 500 and BLM 500 Words judge

The Prep Librarian is a judge in the 5-9 categories of these two creative writing competitions.

Macbeth Centre

Head of Geography and RSP at the Prep School taught basic car mechanics to young offenders attending the Motor Vehicle Engineering department’s course weekly.

PGCE student assessments

A member of the Prep School SMT with many years of teaching experience is involved with UCL each year in PGCE Primary student assessment interviews. This benefits UCL in ensuring their selection of and training of future Primary School teachers remains topical and relevant to current classroom needs.

Prep Choirs

Latymer Prep school choirs sang at the Syrian Refugee Centre, Charing Cross Hospital and an old people’s home.

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ACCESS TO RESOURCES

Opening access to the wealth of resources at Latymer has proven to be a successful model for developing partnerships that are of benefit to the wider community. Through hiring our spaces our partners are able to provide a broad range of activities from music to sports for children and young people.

GLOBAL PARTNERSHIPS

The Latymer community continues to make a positive contribution globally through a number of charitable initiatives. Pupils and staff take part in both fundraising efforts and trips to provide practical support for the charity partners.

Care4Calais – Students at Latymer have demonstrated a passion to support those in need and have been proactive at providing aid to refugees in need through engagement with Care4Calais.

In 2019/20, a total of 12 staff and 103 students travelled in 4 trips to Calais. Each trip, donated items were brought and distributed including over 3,000 items of clothing, blankets and sleeping bags generously donated by British Airways, and just over £10k fundraised through our GoldenGiving page to further the work of Care4Calais. These were life-changing experiences for our students, and volunteers and staff commented frequently on how engaged and active Latymer were, particularly as we are the only school who have run aid trips.

– The Latymer Uganda Project Through a number of different fundraising activities and events, pupils were able to raise £3,957 for the Uganda Project. Money raised went towards various foundations we support, including M-Lisada, and to provide school fees for 8 children.

– Round Square Schools The Head of English in the Prep School attended a weekend conference to network and share best practices with schools from across Europe. Through this we hope to discuss a partnership with a school in India and develop further collaborations in the Prep School.

Restless Development – A global organisation that helps young people across the UK, Africa and Asia, teaching them entrepreneurial skills to help them start their own businesses; it encourages them to take positions of civic responsibility and provides practical advice and support on local issues such as the impact of climate change. The Head of Games at the Prep School led an outside school sponsorship event involving cycling, swimming and running.

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Fundraising

Latymer’s charitable commitment continued through fundraising efforts for local, national and international causes.

The Prep School runs a Charities Club which meets weekly to coordinate a rolling series of fundraising events through the year, working with international, national and local charities.

Despite lockdown disruption part-way through the year, a total of £39,001 was raised in 2019/20 and donated to a range of organisations including:

£902 Macmillan Cancer Support

£597 Woodland Trust

£594 Rainforest Alliance

£617 Charing Cross Hospital

£3,957 Latymer Uganda Project

£1,451

Restless Development

£531 West London Welcome

£13,187 Care4Calais

£8,664 Conservation volunteers

£4,195

Rainbow Trust

£804 TCV (The Conservation Volunteers)

£3,502 Others

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Financial review

INCOME

In the year to 31[st] August 2020, the Latymer Foundation’s income decreased by 3% (£0.9m) to £32.7m. The majority of the Foundation income comes from school fees and these were reduced in the summer term as part of the Charity’s response to the global pandemic. Income from donations and legacies remained broadly in line with the previous year and the Governors are hugely grateful for the continued generosity of the donors to the Foundation.

As in prior years, and as a result of our Inspiring Minds campaign launched in 2014, the majority of donations received in the year went to supporting the ongoing growth of our bursary programme. The campaign combines fundraising for both our endowed and current bursary places. During the year, we received £1.3m (2019: £1.1m) towards the endowment. These donations are held in investments, with the capital held in perpetuity. Donations for our current bursaries, to support today’s generation of young people are generated through a number of ways including our community-wide Bursaries Appeal and donors who pledge to cover the fees of individual pupils. In total £3.7m (2019: £3.8m) was received for current bursaries during the year.

Both other income and investment income remained at £1.6m and £1.3m respectively, the same as in the previous year. Trading income was reduced due to the pandemic, however this reduction was partially offset by a grant of £0.3m from the government furlough scheme to cover non-teaching staff members pay costs. This grant has since been repaid in full.

EXPENDITURE

Total expenditure increased by 2% to £28.1m. Whilst the School was able to make some operational savings against the budget in the summer term as we moved to a remote educational offering, the majority of our educational and outreach work, and the costs associated with this, continued.

INCOME IN 2019/20

----- Start of picture text -----
£1.3 m
£0.5 m
Investment income
Other donations
£5.4 m
Donations for
bursary programme
£1.6 m £24.0 m
Trading and School fees
other income
----- End of picture text -----

EXPENDITURE IN 2019/20

----- Start of picture text -----
£0.7m £0.2m
Fundraising Investment
costs management fees
£8.5m
Non pay
operational
costs
£18.7m
Staffing costs
----- End of picture text -----

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BURSARY PROGRAMME FUNDING

The £24m of school fees is net of bursary awards made in the year. A total of £3.5m (2019 £3.1m) was spent on bursary places which funded 204 pupils (2019: 184), 196 in the Upper School (2019: 176) and 8 (2019: 8) at the Prep. 113 pupils (2019: 102) were fully funded, and a further 88 (2019: 82) pupils were in receipt of a partial award. The majority of partial awards during the year exceeded 75%.

£2.2m (65%) of the bursaries were funded from donations, either from the endowment or from the current bursaries funds received.

The Governors ensure the spend on bursaries is in line with donor wishes and each year review all funds available to maximise the number of bursary places that can be awarded.

Donations to the endowment are held in investments and their annual returns are used to fund bursary places.

Any bursary award from the endowment is therefore perpetual and the award will automatically transfer to a new student when one completes their Latymer career. The Foundation aims to continue to grow the endowment to provide long term security for our bursary programme.

Donations for current bursaries are also held in investments, and the full amount of the donation is used to fund bursaries for the current generation of young people. These donations are spent over a period of 2 to 11 years, depending on the year the student joins.

The bursary programme extends beyond fee assistance, and during the year grants worth £90k (2019: £80k) were awarded to bursary students for uniform costs, music and drama tuition fees, external exam fees and university application costs. In addition, largely as a result of fundraising by parents, 72 pupils (2019: 110) received awards totalling £50k (2019: £92k) so they were able to participate in school trips and activities.

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BURSARY PROGRAMME
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Pupils Spend
250 4000
200
3000
150
2000
100
1000
50
0 0
2015–16 2016–17 2017–18 2018–19 2019–20
Pupils Spend
----- End of picture text -----

----- Start of picture text -----
204
pupils in receipt of
bursaries in year
----- End of picture text -----

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INVESTMENT POLICY AND PERFORMANCE

Investment policy

During 2019/20, the Governors followed an Investment Policy Statement which set out the objective to produce the optimum financial returns and maintain the purchasing power of donations received. The statement set out guidelines for risk, asset allocations and ethical investments in addition to management reporting requirements. The Investment Committee met four times during the year to formally review the performance of the investments with benchmarks and general market trends. The target of the fund during the year was RPI + 4% and a net total return of 5.4% (2019 6.3%) was delivered against a target of 5.6%. The total return of the fund over a 5 year period on an annualised basis is 9.0% against a target of 6.4%.

During the year, the Investment Committee and Governors reviewed their approach to investment management. In July 2020, the Trustees resolved to adopt the total return approach to investments held in the permanent endowment fund. This approach allows the Foundation flexibility in the future in how it manages investment returns from its permanent endowments whilst respecting and preserving the fund value.

The investment portfolio was also realigned and new Investment Policy Statements agreed during the year, September 2020. with changes being effective from 1[st] These changes ensure that the perpetual and current funds held in investment are managed in accordance with their purpose, liability profile and the corresponding appetite for risk.

The value of the Foundation’s investment portfolio increased substantially in the year from £55m in 2019 to £66m in 2020 including unrealised gains of £2m (2019 £2m).

Remuneration policy

The Governors’ remuneration policy seeks to offer fair and competitive pay and benefits to attract and retain teachers and appropriately qualified staff to deliver the Schools’ aims. The policy is reviewed annually taking into account inflation rates and industry benchmarks.

Annual remuneration for members of the Schools’ Senior Management Team is considered on an individual basis by the Finance and General Purposes Committee and recommended to the full Governing Body. The remuneration packages of the Head and Finance Director are benchmarked annually.

Reserves

The Foundation holds free reserves so that it can respond to unforeseen charitable opportunities and continue to honour existing commitments in the event of a shortfall of income. Annual budgets are set to achieve a level of free cash flow to finance improvements to facilities and equipment and provide support for the bursary programme. The Governors have also established a Cash Reserve Fund, and regularly review the level of cash. Freely available reserves are calculated by taking the total unrestricted cash and investments and deducting any net current liabilities. At 31 August 2020 the Charity held free reserves of £3.8m, calculated as follows:


as follows:
£m
Unrestricted investments 4.7
Unrestricted cash 1.8
Unrestricted net current assets / (liabilities) (2.7)
Free reserves 3.8

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

Governance Matters

Public Benefit

The Latymer Foundation is a public benefit entity under FRS102. The Governors consider the Charity Commission’s guidance on public benefit, including the guidance “Public Benefit: Running a Charity” (PB2), and incorporate detailed information on how this is adhered to within the Annual Report.

Governance Code

The Governing Body regularly reviews its compliance with the Charity Governance Code considering the seven core principles alongside recommendations on how they might be applied. In addition, Board effectiveness surveys are conducted.

Recruitment and training of Governors

The Chair of Governors convenes a Nominations Committee to identify and interview suitable individuals able to serve as Governors and make recommendations to the Governing Body on the appointment of new Governors. Governors follow the best practice induction guidelines issued by AGBIS (The Association of Governing Bodies of Independent Schools). These include a Disclosure and Barring Service check, a meeting with key Governors and management, the issue of a comprehensive pack of relevant papers, and a briefing document on Governors’ responsibilities. The Head, Finance Director and staff provide the Governors with induction training which introduces them to the workings of the School and the charitable trust. Governors are encouraged to undertake e-training provided by AGBIS and attend training workshops run by a number of organisations. Guest speakers are from time to time invited to attend Governors’ meetings to provide briefings on specific topics.

Decision-making

Strategic decisions to determine the overall direction and long term goals are taken by the full Governing Body, at one of the five meetings per annum. These include approving budgets and strategic plans, and setting and reviewing policies and procedures that will ensure the best possible education for present and future pupils and the proper control of its finances.

The full Governing Body is supported by the following sub Committees

Decisions that affect the day-to-day management of the schools including pastoral welfare, academic progress, personnel, premises, resources and financial matters, are delegated to the Head and his management team.

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

RISK MANAGEMENT

The Governors have given consideration to the major risks to which the Foundation is exposed and satisfied themselves that systems, procedures and reserves are established in order to manage those risks. A Risk Register, including internal financial controls, is tabled at all meetings of the Schools’ Senior Management Team and reviewed in full by the Audit and Risk Committee termly. Key risks are annually considered by the Governing Body.

During 2019– 20, an additional risk register was created to manage operational risks in relation to COVID-19. The register was updated regularly to set out new arrangements to manage the School re-opening in line with Government guidance. Extraordinary Full Governor meetings were held to review and approve the risk registers prior to students returning to the School site.

----- Start of picture text -----
Key risks Key mitigating controls
Compliance with laws and regulations Formal written policies; responsibilities assigned to
individuals; policies and implementation checked by
Governors
Status of independent schools Continuation of community and partnership activities,
building an impact analysis framework and promotion of
the Schools’ ethos
Safeguarding the welfare of children Safer Recruitment (including DBS) checks, mandatory
staff and Governor training, pastoral care protocols, risk
assessments, named lead Governor
Data is secure and recoverable, and IT Move to servers on Cloud, multi-factor authentication for
networks are resilient core systems, password and virus protection, acceptable use
and business continuity policies and ongoing staff training
Cover available for key staff absences Key staff on longer notice periods and all can be covered
in interim
Financial risks
Robust financial planning and investment strategies
----- End of picture text -----

Related parties

The Latymer Foundation owns a subsidiary company – 1624 Limited – which hires out the School’s sports facilities and commenced trading operations in 2015. The Foundation has prepared Group financial statements consolidating the results of The Foundation and 1624 Limited. 1624 Limited’s results for the year were in line with expectations and are detailed in note 25 of the financial statements.

Going Concern

The Trustees have conducted a thorough assessment of going concern prior to completion of their annual accounts. Following a review of budgets and forecasts, future cashflow projections and reserves, the Trustees consider that there are no material uncertainties about the Latymer Foundation’s ability to continue as a going concern. The Covid19 pandemic had an impact on the day to day operations and income levels for 2019– 20, however these were offset by a short term reduction in spending rather than affecting the Charity’s ability to continue as a going concern. In future years, the key risk to the Foundation is a fall in income from fees or other operating income. Trustees are confident they have adequate mitigations in place to manage these risks.

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

Statement of Governors’ Responsibilities

The Governors are responsible for preparing the Governors’ report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Governors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Governors are required to:

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Governors. The Governors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

The Audit and Risk Committee of the Governors meets three times per year, and has a scrutiny and monitoring role relating to the Foundation’s external audit, internal management and controls, certain policies and compliance, and mitigation of risk.

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

In particular, the Audit and Risk Committee will:

Review and report from time to time on: 1

The effectiveness of the internal controls of the Foundation and the Schools, including financial controls and management reporting systems;

The Governors have adopted the provisions of the Charities Statement of Recommended Practice (SORP/FRS102) updated in 2019 in preparing the annual report and financial statements of the Charity.

The Governors have discharged these responsibilities to the best of their ability and knowledge in preparing the accounts which follow on pages 29 to 55.

Signed on behalf of the Board of Governors

Rosalind Sweeting – Chair Date 5[th] February 2021

Review and report from time to time to 2 the Governors on the performance of the external auditors; make recommendations to the Governors from time to time on the reappointment of the external auditors or appointment of new external auditors; and approve the remuneration of the external auditors.

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

Independent Auditor’s Report

TO TRUSTEES OF LATYMER FOUNDATION AT HAMMERSMITH

Opinion

We have audited the financial statements of Latymer Foundation at Hammersmith (“the Parent Charity”) and its subsidiaries (“the Group”) for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Cash Flow Statement 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:

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 Group and the Parent Charity in accordance with the ethical requirements 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 related 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:

OTHER INFORMATION

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

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.

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion;

Responsibilities of Trustees

As explained more fully in the Statement of Responsibilities, 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 determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent 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 the Act and relevant regulations made or having effect thereunder.

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 at the Financial Reporting Council’s (“FRC’s”) website at: https://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 Charity’s trustees, as a body, in accordance with 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 anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Fiona Condron

(Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Gatwick, West Sussex

11[th] February2021

BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127)

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

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted Restricted Expendable Permanent
2020
2019
funds funds endowment endowment
Total
Total
Note funds fund
funds
funds
£’000 £’000 £’000 £’000
£’000
£’000
INCOME AND ENDOWMENTS FROM:
Charitable activities
Net school fees receivable 2 23,960 - - -
23,960
24,941
Other income 2 1,183 - - -
1,183
1,090
Other trading activities 3 373 - - -
373
512
Gain on disposal of fxed assets 49 - - -
49
33
Donations and legacies 4 340 4,233 1,320 5,893
5,786
Investments 5 1,218 72 - -
1,290
1,280
Total income 27,123 4,305 1,320 -
32,748
33,642
EXPENDITURE ON:
Charitable activities 6 24,854 1,888 149 312
27,203
26,799
Raising funds 6 818 14 - 54
886
852
Total expenditure 25,672 1,902 149 366
28,089
27,651
Net gain / (loss) on investments 383 1,283 (50) 341
1,957
2,030
Transfers between funds (130) (100) 230 -
-
-
Net income 1,704 3,586 1,351 (25)
6,616
8,021
Pension scheme actuarial gain/
(loss)		 9 24 - - -
24
(316)
Net movement in funds
for the year		 1,728 3,586 1,351 (25)
6,640
7,705
Fund balances brought forward
at 1 September		 43,483 11,499 24,253 18,607
97,842
90,137
Fund balances carried forward
at 31 August		 45,211 15,085 25,604 18,582
104,482
97,842

All amounts relate to continuing operations, and all gains and losses recognised in the year are included above.

The notes on pages 33 to 55 form part of these accounts

29

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

CONSOLIDATED AND CHARITY BALANCE SHEETS

AT 31 AUGUST 2020

AT 31 AUGUST 2020
Group
Group
Charity		 Charity
Charity number: 312714 Note 2020
2019
2020		 2019
£’000
£’000
£’000		 £’000
LONG TERM ASSETS
Tangible assets 11 47,066
48,733
47,066		 48,733
Investments 12 67,057
56,327
67,057		 56,327
114,123
105,060
114,123		 105,060
CURRENT ASSETS
Debtors 13 540
2,204
807		 2,363
Cash at bank and in hand 14 1,769
2,570
1,498		 2,403
2,309
4,774
2,305		 4,766
Creditors: amounts falling due within one year 15 (3,209)
(3,270)
(3,205)		 (3,262)
NET CURRENT (LIABILITIES) / ASSETS (900)
1,504
(900)		 1,504
Total assets less current liabilities 113,223
106,564
113,223		 106,564
Creditors: amounts falling due after more than one year 16 (8,390)
(8,323)
(8,390)		 (8,323)
Defned beneft pension liability 9 (351)
(399)
(351)		 (399)
Total assets less total liabilities 104,482
97,842
104,482		 97,842
FUNDS
Endowment funds:
Permanent endowment fund 21 18,582
18,607
18,582		 18,607
Expendable endowment fund 22 25,604
24,253
25,604		 24,253
44,186
42,860
44,186		 42,860
Restricted income funds 23 15,085
11,499
15,085		 11,499
Unrestricted income funds:
Net accumulated surplus 24 45,562
43,882
45,562		 43,882
Pension reserve 24 (351)
(399)
(351)		 (399)
45,211
43,483
45,211		 43,483
Total Funds 20 104,482
97,842
104,482		 97,842

Approved by the Governors and authorised for issue on 5[th] February 2021 and signed on their behalf by

Rosalind Sweeting (Chair)

Alex Plavsic (Governor)

The notes on pages 33 to 55 form part of these accounts

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 AUGUST 2020

Note 2020
2020
2019		 2019
£’000
£’000
£’000		 £’000
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities (i) 5,797 4,902
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of tangible fxed assets (484)
(1,496)
Proceeds from sale of fxed assets 49
35
Purchase of investments 12 (22,859)
(10,055)
Proceeds from the sale of investments 12 14,086
7,069
Investment income and bank interest 1,290
1,280
Net cash used in investing activities (7,918) (3,167)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of borrowings -
(814)
Receipt of endowments 1,320
1,107
Net cash provided by fnancing activities 1,320 293
Change in cash and cash equivalents in the reporting period: (801) 2,028
Cash and cash equivalents at the beginning of period 2,570 542
Cash and cash equivalents at the end of the reporting period (ii) 1,769 2,570

The notes on pages 33 to 55 form part of these accounts

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

31

CONSOLIDATED CASH FLOW STATEMENT (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

(i) RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Note 2020
2020		 2019 2019
£’000
£’000		 £’000 £’000
Net income for the reporting period
(as per the Statement of Financial Activities)		 6,616 8,021
Investment income 5 (1,290) (1,280)
Endowment donations (1,320) (1,107)
Defned beneft pension scheme adjustments (24) (22)
Depreciation charge 11 2,050 2,166
Proft on sale of assets (49) (33)
Decrease / (increase) in debtors 1,665 (1,440)
Increase in creditors 106 626
Gains on investment (1,957) (2,029)
(820) (3,119)
Net cash infow from operating activities 5,797 4,902
(ii) ANALYSIS OF CHANGES IN NET DEBT
1st Sep 2019 Cash fows 31st Aug 2020
£’000 £’000 £’000
Cash 14 2,570 (801) 1,769
Bank loans falling due within one year 15 (814) - (814)
Bank loans falling due after more than one year 16 (7,323) - (7,323)
Total cash and cash equivalents (5,567) (801) (6,368)

The notes on pages 33 to 55 form part of these accounts

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L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 ACCOUNTING POLICIES

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) issued in October 2019 and effective 1st January 2019.

The functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates.

The accounts are drawn up under the historical cost convention, as modified by the revaluation of investments.

The Trustees conducted a thorough assessment of going concern prior to completion of their annual accounts. Following a review of budgets and forecasts, future cashflow projections and reserves, the Trustees consider that there are no material uncertainties about Latymer Foundation’s ability to continue as a going concern. The Covid19 pandemic had an impact on the day to day operations and income levels for 2019– 20, however these were offset by a short term reduction in spending rather than affecting the Charity’s ability to continue as a going concern. The financial statements are therefore prepared on that basis.

The School is a public benefit entity registered as a charity in England and Wales. It was registered as a charity on 12 November 1963 (charity number: 312714).

In the application of the accounting policies, Governors are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. These include legacy recognition, total return accounting, the liability of the defined benefit pension scheme and the property revaluation. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period to which they relate. In the view of the Governors, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to the carrying amounts in the next financial year.

Further details of each fund are disclosed in note 19.

Accounting for income

School fees and related income are treated as income for the year to which they relate. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School from its unrestricted funds, but include contributions received from endowment funds for scholarships, bursaries and other grants.

Cash donations, gifts, legacies and other income are recognised in the accounts as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable where material.

Investment income is recognised in the accounting year in which it relates.

Expenditure

All revenue expenditure is charged in the accounting year to which it relates. Expenditure is accrued as soon as a liability is considered probable.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Investments

Investment properties are included in the balance sheet at open market value subject to existing leases.

Quoted and other investments are included in the balance sheet at market value. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities.

Consolidation

The charity has a 100% owned subsidiary, 1624 Limited, a trading company established primarily for the new sports centre. Group accounts have been prepared, consolidating the results of this subsidiary on a line-by-line basis. Balances and transactions between the two entities are eliminated on consolidation. The unconsolidated results of the charity alone comprise total income of £32,743,000 (2019: £33,664,000) and net movement in funds for the year of £6,640,000 (2019: £7,730,000).

The principal accounting policies are:

Fund accounting

The Permanent Endowment Fund is represented by part of the School’s freehold property held at 31 August 1996, and the investment proceeds of former investment properties.

Resources received for specific purposes, where the Governors are given power to retain them or expend them, are disclosed in an appropriate Expendable Endowment Fund.

Resources received for specific purposes where the Governors do not have the power to choose how to expend them are disclosed as Restricted Funds.

Tangible fixed assets

School buildings and other educational properties are stated at existing use value with vacant possession. The School has elected, in accordance with Section 35.10(d) of FRS 102, to use the carrying value on 1 September 2014, the date of transition to FRS 102, of the School’s freehold interests in land and buildings previously carried at a valuation, as their deemed cost. This valuation was at 31 August 2013 on the basis of Market Value for Existing Use. Depreciation on this freehold property (excluding land) is provided at 4% on a reducing balance basis in the first full accounting year following acquisition.

Other resources are shown as Unrestricted Funds to be applied at the discretion of the Governors. A proportion of the unrestricted accumulated surplus income is held in a designated Buildings and Bursary Fund, to assist in financing future expenditure on tangible fixed assets and bursaries.

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

33

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

Depreciation is provided to write off cost, less estimated residual values, over their expected useful lives from when first brought into use. Depreciation is calculated at:

----- Start of picture text -----
Motor vehicles 25% per annum on cost
Office Equipment 25% per annum on cost
Computer and Teaching equipment 33% per annum on cost
Furniture and fittings 20% per annum on cost
----- End of picture text -----

All tangible fixed assets costing more than £1,000 (£2,500 from September 2020) are capitalised and included at cost, including any incidental expenses of acquisition and irrecoverable VAT.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Termination and redundancy benefits

Termination and redundancy costs are accounted for in the year in which the compensation agreement is signed.

Operating leases

Costs incurred under non-cancellable operating leases for machinery and equipment are charged on a straight line basis over the lease terms, even if the payments are not made on such a basis

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Total return accounting

Creditors

Creditors and provisions are recognised where the School has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Parents’ deposits

The School receives a deposit from parents upon acceptance of a place for their child. Up until 2017 the School refunded 50% by deduction from the first term’s bill, and the remaining 50% after the pupil leaves. For pupils joining from 2017, 100% of the deposit is retained until after the pupil leaves. The proportion of deposits refundable within 12 months of the balance sheet date is treated as a current liability; the proportion refundable after 12 months is shown as a long-term creditor.

Pension costs

Contributions to the Teachers’ Pension Scheme are charged to the statement of financial activities in the year in which they become payable. The Teachers’ Pension Scheme 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) where it is not possible to identify the School’s share of the assets and liabilities. See note 9 for more information on the scheme.

During the year the trustees resolved to adopt the total return approach to investments held in the permanent endowment fund with an effective date of 1[st] August 2020. Under this approach, the amount of the total return from the permanent endowment fund (that is the income arising and any capital gains) to be used to fund current expenditure on charitable activities is determined by the trustees, rather than simply being the investment income for the year. By adopting this approach, there is no requirement for the investment portfolio to generate a set level of income and this allows greater investment flexibility, which in turn may also increase overall returns. In addition, the approach permits the trustees to more easily maintain a balance between current and future beneficiaries.

The Trustees have used the value of the investments at 31[st] August 2006 to represent the ‘Preserved Value’ of the fund. This was the earliest known value of the endowed properties which were sold to create the fund in its current form. This assessment was made in the year ended 31 August 2020.

The Governors have adopted a policy for managing the unapplied total return fund which will be applied from 1 September 2020 and will be reviewed every three years. The Governors wish to ensure the value of the Preserved Investment Fund is maintained in real terms and this will be achieved by transferring the annual CPI adjustment components as at 31[st] May from the unapplied total return fund. The Governors may also transfer 3% of the fund balance as at 31[st] May to income over the following year, subject to approval by the Finance and General Purposes Committee. In setting their policy the Governors have taken advice from Smith & Williamson LLP, Chartered Accountants.

Contributions to the School’s group stakeholder pension scheme are charged to the statement of financial activities in the year in which they become payable.

Contributions to the School’s defined benefit scheme are charged to the statement of financial activities so as to spread the cost of pensions over employees’ expected working lives with the School. Variations to pension costs caused by differences between the assumptions used and actual experience are spread over the average remaining working lives of the current employees at each actuarial valuation date.

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

34

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

2 INCOME FROM CHARITABLE ACTIVITIES

2 INCOME FROM CHARITABLE ACTIVITIES
2020 2019
£’000 £’000
School fees receivable
Gross School fees
27,414		 28,013
Less bursaries and scholarships
(3,454)		 (3,072)
23,960 24,941
Other income
Registration fees
206		 200
Catering receipts
569		 749
Other
408		 141
1,183 1,090
25,045 26,031

Income from charitable activities for the charity is the same as for the group and is unrestricted.

3 OTHER TRADING ACTIVITIES

3 OTHER TRADING ACTIVITIES
2020 2019
£’000 £’000
Cafeteria income
69		 93
School shop rental
12		 17
1624 Limited income
224		 319
Other
68		 83
373 512

Other trading activities income for the charity total £368,000 (2019: £534,000).

4 DONATIONS AND LEGACIES

4 DONATIONS AND LEGACIES
2020 2019
£’000 £’000
To fund bursaries
5,375		 5,576
For other purposes
518		 210
5,893 5,786

Donations income for the charity is the same as for the group. In 2019, income is split by fund as follows: £5,167,000 restricted and £619,000 unrestricted.

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

35

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

5 INVESTMENT INCOME

5 INVESTMENT INCOME
Unrestricted funds 2020
£’000
2019
£’000
Securities 439
543
Rent receivable from investment properties 22
17
Cash 10
13
From expendable endowment funds: 471
573
Securities 747
635
Total Unrestricted 1,218
1,208
Restricted funds
Securities 72
72
1,290
1,280

Income from endowment investments is allocated to unrestricted income.

36

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

6 ANALYSIS OF EXPENDITURE

6 ANALYSIS OF EXPENDITURE
Group Staf Depreciation Other Total Total
costs 2020 2019
Charitable expenditure £’000 £’000 £’000 £’000 £’000
Teaching 13,533 - 3 13,536 12,251
Premises 257 1,416 2,581 4,254 5,039
Other Educational costs 4,085 634 2,235 6,954 6,215
Establishment costs 250 - 1,105 1,355 1,873
Catering - - 944 944 1,269
Other - - 160 160 152
Total charitable expenditure 18,125 2,050 7,028 27,203 26,799
Expenditure on raising funds
Development costs 566 - 86 652 641
Investment management fees - - 234 234 211
Total charitable expenditure 566 - 320 886 852
Total expenditure 18,691 2,050 7,348 28,089 27,651

Governance costs of £36,000 are included within Establishment costs and comprise audit fees (see note 10).

Expenditure for the Charity alone is lower by £5,000 (2019: £3,000) in relation to Establishment costs; the difference includes audit fees for 1624 Limited. Governance costs for the charity alone are £34,000.

7 STAFF COSTS

Salaries and wages
Social security costs
Pension costs (Note 9)
Staf health insurance
Aggregate employee benefts of key management personnel		 2020
£’000
2019
£’000
14,227
13,635
1,581
1,552
2,799
2,000
84
95
18,691
17,282
417
400

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

37

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

7 STAFF COSTS (CONTINUED)

Pension costs are the contributions made by the Foundation to the following pension schemes:

1) The Teachers Pensions Scheme in respect of teaching staff.

2) The Latymer Foundation Group Stakeholder Pension Scheme in respect of support staff.

2020 2019
Number of higher paid employees in bands of: Number Number
£60,001 - £70,000 39 35
£70,001 - £80,000 27 25
£80,001 - £90,000 10 8
£90,001 - £100,000 3 3
£100,001 - £110,000 1 1
£120,001 - £130,000 - 1
£150,000 - £160,000 1 -
£190,001 - £200,000 - 1
£200,001 - £210,000 1 -

73 (2019: 68) of the higher paid employees are in the Teachers Pensions scheme (a defined benefit scheme). The total value of these contributions for the year was £1,266,621 (2019: £844,476).

Termination and redundancy costs are accounted for in the year in which the compensation agreement is signed. Termination costs of £49,040 (2019: £nil) were incurred in the year and £25,600 was outstanding at the year-end date (2019: £nil).

The average number of employees during the year was:

The average number of employees during the year was:
2020 2019
Number Number
Teaching staf 164 177
Peripatetic music staf 38 39
Administrative and support staf 157 136
359 352

38

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

8 RELATED PARTY TRANSACTIONS

No governor received remuneration. Two governors were reimbursed for travelling expenses which totalled £256 (2019: £376).

In accordance with paragraph 27 of its Governance Scheme dated 3 August 1998 the School maintains insurance to indemnify Board members. Premiums paid during the year amounted to £2,916 (2019: £2,464).

Transactions with parents who are Governors are completed on an arm’s length basis.

The Governor Nicholas Jordan is also a director of the subsidiary company 1624 Limited.

9 PENSION COSTS

Teachers’ Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £2,280,886 (2019: £1,557,670) and at the year-end £279,153 (2019: £211,112) 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.

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.

The Latymer Foundation Group Stakeholder Pension Scheme

The School operates a Group Stakeholder pension scheme for support staff. Employees contribute a minimum 5% of their salary, and the School 11%.

The total cost of the contributions to this scheme made by the charity for these employees was £419,920 (2019: £400,891).

Under the Government’s auto-enrolment legislation the School’s staging date was February 2014. Since that date all support staff choosing not to join the Latymer Foundation Group Stakeholder Pension Scheme have been auto-enrolled into the Government’s NEST scheme. The cost of contributions to this scheme was £2,449 (2019: £2,458).

The Latymer Upper School Pension and Life Assurance Scheme

The Latymer Upper School Pension and Life Assurance Scheme is a defined benefit scheme established for former support staff. This scheme was closed to new members in 1994, and closed to future accruals in 2009.

A full actuarial valuation of the defined benefit scheme was carried out at 1 November 2016 and updated to 31 August 2020 by a qualified independent actuary. The major assumptions at 31 August 2020 used by the actuary were:

2020 2019
Rate of increase in pensions in payment 5.0% 5.0%
Rate of revaluation in deferment (CPI) 2.2% 2.1%
Discount rate 1.6% 1.6%
Infation assumption 3.2% 3.1%

Mortality follows the standard table known as PCXA00 with long cohort mortality improvements.

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

39

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

9 PENSION COSTS (continued)

Assuming retirement at age 65, the life expectancy in years is as follows:

2020 2019
For a male aged 65 now 21.7 21.3
At 65 for a male member aged 45 now 22.7 22.4
For a female aged 65 now 23.9 23.2
At 65 for a female member aged 45 now 25.1 24.5

The overall expected return on assets has been derived by considering the long expected rate of return for each asset class and taking the average of these rates weighted by the proportion invested in each asset class at the year end.

£ £
Actual return on plan assets 109,491 81,966
The School expects to contribute £24,480 to its defned beneft pension plan in the year to 31 August 2021.
2020 2019
Reconciliation of present value of plan liabilities £’000 £’000
At 1 September 1,954 1,586
Interest on obligation 31 42
Actuarial loss 54 358
Benefts paid (44) (32)
At 31 August 1,995 1,954
Composition of plan liabilities
Schemes wholly or partly funded 1,995 1,954
2020 2019
Reconciliation of fair value of plan assets £’000 £’000
At 1 September 1,555 1,481
Expected return on assets 25 40
Actuarial gain 85 42
Employer contributions 24 25
Benefts paid (45) (33)
At 31 August 1,644 1,555

40

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

9 PENSIONS COSTS (continued)

9 PENSIONS COSTS(continued)
Reconciliation to Balance Sheet 2020
£’000		 2019
£’000
Fair value of plan assets 1,644 1,555
Present value of scheme obligations (1,995) (1,954)
Net defcit (351) (399)

Composition of plan assets

Equities
Absolute Return
Bonds
Cash		 2020
£’000
2020
Proportion
1,212
73.8%
184
11.2%
186
11.3%
62
3.7%
1,644		 2019
£’000
2019
Proportion
1,151
74.0%
203
13.1%
189
12.2%
11
0.7%
1,554

Amounts recognised in the SOFA

2020
2020
2019		 2019
Interest on obligation £’000
£’000
£’000
31
42		 £’000
Expected return on assets (25)
(39)
Net fnance charge 6 3
Total operating charge 6 3

Analysis of amount recognised in the SOFA

2020
£’000		 2019
£’000
Actual return less expected return on pension scheme asset 32 46
Changes in assumptions underlying the present value of the scheme liabilities (2) (362)
Actuarial gain / (loss) recognised in SOFA 30 (316)
Cumulative amount of losses recognised in SOFA (808) (838)

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

41

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

9 PENSIONS COSTS (continued)

Five year history

2020 2019 2018 2017 2016
£’000 £’000 £’000 £’000 £’000
Present value of plan liabilities (1,995) (1,954) (1,586) (1,593) (2,012)
Fair value of plan assets 1,644 1,555 1,481 1,345 1,151
Defcit (351) (399) (105) (248) (861)
Experience adjustments on plan liabilities (13) (110) (11) 1 9
Experience adjustments on plan assets 85 42 98 150 98
Experience gains and losses on Scheme liabilities 42 (248) 30 432 (544)

There are historic insured pension policies however there is no net impact on the balance sheet or pension expense as a result of their exclusion.

10 AUDITORS’ REMUNERATION

2020 2019
£’000 £’000
Fees payable to the auditor for the audit of the annual accounts 36 31

11 TANGIBLE FIXED ASSETS FOR USE BY THE CHARITY

Freehold Equipment Computer Motor Total
land and furniture equipment vehicles
buildings and fttings
Group and Charity £’000 £’000 £’000 £’000 £’000
Cost / valuation
At 1 September 2019 55,277 2,964 2,118 224 60,583
Additions 3 272 108 - 383
Disposals - (710) (813) (5) (1,528)
At 31 August 2020 55,280 2,526 1,413 219 59,438
Depreciation
At 1 September 2019 7,555 2,346 1,753 196 11,850
Charge for year 1,416 380 242 12 2,050
Disposals - (710) (813) (5) (1,528)
At 31 August 2020 8,971 2,016 1,182 203 12,372
Net book value
At 31 August 2020 46,309 510 231 16 47,066
At 31 August 2019 47,722 618 365 28 48,733

42

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

12 INVESTMENTS

UNRESTRICTED FUNDS
Foundation Funds
Quoted investments
Cash
COIF accumulation and income shares (unquoted)
Building and Bursary Fund
Quoted investments
Cash
Reserve Fund
Quoted investments
Cash		 Market value
2020
£’000
Market value
2019
£’000
-
403
-
4
-
1,978
-
2,385
4,486
3,076
4,509
30
8,995
3,106
3,014
2,996
800
2
3,814
2,998
Total Unrestricted Funds 12,809
8,489
PERMANENT ENDOWMENT FUNDS
Quoted investments
Cash		 12,257
11,466
161
108
Total Permanent Endowment Funds 12,418
11,574
EXPENDABLE ENDOWMENT FUNDS
Music & Drama
Quoted investments
Cash
Bursary Endowment Fund
Quoted investments
Cash
Prize Fund
Quoted investments
Cash
Teachers’ Bequest
Quoted investments
Cash		 1,178
1,158
12
17
1,190
1,175
25,587
21,784
756
350
26,343
22,134
160
159
5
1
165
160
120
123
1
2
121
125

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

43

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

12 INVESTMENTS (continued)

EXPENDABLE ENDOWMENT FUNDS(continued)
Recital Hall Maintenance
Quoted investments
Cash
Stein Fund
Quoted investments
Cash		 Market value
2020
£’000
Market value
2019
£’000
195
193
2
3
197
196
116
122
1
2
117
124
Total Expendable Endowment Funds 28,133
23,914
RESTRICTED FUNDS
Bursaries Appeal
Quoted investments
Cash
Current Bursaries
Quoted investments
Cash		 3,123
3,021
164
30
3,287
3,051
7,693
8,414
1,832
-
9,525
8,414
Total Restricted Funds 12,812
11,465
Sub-total
Investment properties (freehold, in UK)		 66,172
55,442
885
885
Total fxed asset investments 67,057
56,327
Fixed assets investments
Market value at 1 September 2019
Additions at cost
Disposals at market value
Net investment gains in the year		 Total
£’000
56,327
22,859
(14,086)
1,957
Market value at 31 August 2020 67,057

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

44

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

12 INVESTMENTS (continued)

12 INVESTMENTS(continued)
Market
value		 Percent of
portfolio
The portfolio consists of the following: £’000 (%)
UK equities 24,671 36.8%
Overseas equities 18,941 28.3%
Alternative investments 8,865 13.2%
Cash 8,243 12.3%
UK fxed income 5,452 8.1%
Investment properties (UK) 885 1.3%
67,057 100%

Subsidiary undertaking

The School owns all the issued share capital of 1624 Limited, which is incorporated in Great Britain, registered in England and Wales as company number 09474028 and has a reporting date of 31 August. This company was established as a trading company primarily for the new sports centre and began trading in December 2015. The results have been consolidated in the group figures. In the year ended 31 August 2020 1624 Limited had turnover of £224,210 (2019: £319,026), net profit of £17,794 (2019: £29,117) which will be gift-aided to the School, and net assets of £1 (2019: £1).

13 DEBTORS

13 DEBTORS
Group
Group
Charity		 Charity
2020
2019
2020		 2019
£’000
£’000
£’000		 £’000
Outstanding fees 47
185
47		 185
Other debtors 130
285
95		 221
Prepayments and accrued income 258
278
258		 278
Accrued income 105
1,456
105		 1,456
Amounts due from subsidiary company -
-
302		 223
540
2,204
807		 2,363

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

45

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

14 CASH AT BANK AND IN HAND

14 CASH AT BANK AND IN HAND
Group
Group
Charity		 Charity
2020
2019
2020		 2019
£’000
£’000
£’000		 £’000
School bank accounts and cash balances 1,769
2,570
1,498		 2,403

15 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loan
Trade creditors
Fees received in advance of term (see note 17)
Deferred Income
Taxation and social security
Other creditors and accruals		 Group
2020
£’000
Group
2019
£’000
814
814
517
-
410
551
23
4
413
406
1,032
1,495		 Charity
2020
£’000
Charity
2019
£’000
814
814
517
-
410
551
23
-
413
406
1,028
1,491
3,209
3,270		 3,205
3,262

16 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans
Other creditors and accruals: pupil deposits
Fees received in advance of term (see note 17)		 Group
2020
£’000
Group
2019
£’000
7,323
7,323
1,019
933
48
67		 Charity
2020
£’000
Charity
2019
£’000
7,323
7,323
1,019
933
48
67
8,390
8,323		 8,390
8,323

46

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

16 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (continued)

Maturity of debt:

Maturity of debt:
In one year or less, or on demand
In more than one year but not more than two years
In more than two years but not more than fve years
More than fve years		 Loans and
Overdrafts
2020
£’000
Loans and
Overdrafts
2019
£’000
814
814
814
814
3,774
3,774
2,735
2,735
8,137
8,137

17 FEES RECEIVED IN ADVANCE OF TERM

2020
£’000		 2019
£’000
Fees in advance brought forward 618 657
Released in year (551) (529)
Deferred in year 391 490
Fees in advance carried forward 458 618

18 COMMITMENTS UNDER OPERATING LEASES

As at 31 August 2020 the total future minimum commitment under non-cancellable operating leases for machinery and equipment is £80,000 (2019: £94,000), as set out below:

Group
Group
Charity		 Charity
2020
2019
2020		 2019
The total future minimum commitment arising: £’000
£’000
£’000		 £’000
In less than one year 30
43
30		 43
In one to fve years 50
51
50		 51
80
94
80		 94

The amount expensed in the year was £48,000 (2019: £48,000).

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

47

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

19 FUNDS OF THE SCHOOL

The School’s funds are analysed under the following headings:

a) Endowed Funds

Permanent Endowment

The Permanent Endowment Fund is represented by a proportion of the School’s freehold property held at 31 August 1996 and investments.

Expendable Endowment

The Expendable Endowment Fund consists of numerous individual gifts and legacies given to the School over many years for specific purposes with the request that capital be preserved. The specific funds include:

----- Start of picture text -----
Bursary endowment fund to fund bursaries
Music and Drama to fund music and drama scholarships
Prize fund to finance merit awards based on examination results
Teachers’ Bequest to finance teachers’ research
Stein Bursaries fund to fund music lessons for bursary pupils
Recital Hall maintenance to fund the decoration and maintenance of the Recital Hall
----- End of picture text -----

b) Restricted Funds

Restricted Funds are used in accordance with specific restrictions imposed by the donor or trust deed. Specific funds include:

----- Start of picture text -----
Bursaries appeal to fund bursaries through annual giving
Other donations for bursaries to fund bursaries
Other donations to fund various specific purposes
----- End of picture text -----

c) Unrestricted Funds

Unrestricted funds represent accumulated income from the School’s activities and other sources that are available for the general purposes of the School. A proportion of the unrestricted accumulated surplus income is held in a designated Buildings and Bursary Fund, to assist in financing future expenditure on tangible fixed assets and bursaries.

48

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

20 ANALYSIS OF GROUP NET ASSETS OF THE FOUNDATION’S FUNDS

Fixed Investment Cash Other net Long term Fund
assets current liabilities balances
assets
At 31 August 2020 £’000 £’000 £’000 £’000 £’000 £’000
Permanent endowment fund (note 21) 5,936 12,418 - 228 - 18,582
Expendable endowment funds (note 22) - 28,133 - (2,529) - 25,604
Restricted funds (note 23) - 12,812 - 2,273 - 15,085
Designated funds (note 24) - 8,994 - - - 8,994
Unrestricted funds (note 24) 41,130 4,700 1,769 (2,641) (8,390) 36,568
Pension reserve (note 9 & 24) - - - - (351) (351)
At 31 August 2020 47,066 67,057 1,769 (2,669) (8,741) 104,482
Fixed Investment Cash Other net Long term Fund
assets current liabilities balances
assets
At 31 August 2019 £’000 £’000 £’000 £’000 £’000 £’000
Permanent endowment fund (note 21) 6,248 11,574 - 785 - 18,607
Expendable endowment funds (note 22) - 23,914 - 339 - 24,253
Restricted funds (note 23) - 11,465 - 34 - 11,499
Designated funds (note 24) - 3,106 - - - 3,106
Unrestricted funds (note 24) 42,485 6,268 2,570 (2,224) (8,323) 40,776
Pension reserve (note 9 & 24) - - - - (399) (399)
At 31 August 2019 48,733 56,327 2,570 (1,066) (8,722) 97,842

21 PERMANENT ENDOWMENT FUNDS

By way of a resolution, made in accordance with the Charities (Total Return) Regulations 2013, the trustees adopted a total return approach to the investment component within the Permanent Endowment Fund on 1[st] August 2020. On adoption of the total return approach, the fund was analysed between the trust for investment, being the value realised from the sale of the endowed property in 2007 and the unapplied total return, being the balance of the fund. In agreeing the initial unapplied total return value, Trustees took the value of the investments at 31[st] March 2020. They also agreed a policy for managing the unapplied total return, however this did not become effective until 1st September 2020 therefore during this reporting period there were no transfers made from the unapplied total return fund to either the Preserved Investment Fund or income. The calculations are set out below:

On adoption of As at 31st
total return August 2020
£’000 £’000
Value of Trust for Investment at 2007 5,521 5,521
Total RPI added annual since start date 2,589 2,589
Value of Preserved Endowment 8,110 8,110
Value of Permanent Endowment 10,633 12,418
Value of Unapplied total return 2,523 4,308

49

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

21 PERMANENT ENDOWMENT FUNDS

Preserved Unapplied Total
Endowment Total Endowment
Fund Return
£’000 £’000 £’000
As at 31st August 2019 (restated) 8,110 3,464 11,574
Movements for 12 month reporting period:
Gift of endowment funds - - -
Investment return: interest and dividend - - -
Investment return: gains and losses - 341 341
Less Investment management costs - (54) (54)
Transfer from current assets - 557 557
As at 31st August 2020 8,110 4,308 12,418
Balance at Income Expenditure Transfer Gains Balance at
1 September 31 August
2019 2020
£’000 £’000 £’000 £’000 £’000 £’000
Freehold land and buildings 6,249 - (312) (1) - 5,936
Investments 11,574 (54) 557 341 12,418
Net current assets 784 (556) 228
To 31 August 2020 18,607 - (366) - 341 18,582
Balance at Income Expenditure Transfer Gains Balance at
1 September 31 August
2018 2019
£’000 £’000 £’000 £’000 £’000 £’000
Freehold land and buildings 6,561 - (312) - - 6,249
Investments and net current assets 11,965 - (53) (1) 447 12,358
To 31 August 2019 18,526 - (365) (1) 447 18,607

50

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

22 EXPENDABLE ENDOWMENT FUND

Balance at Income Expenditure Transfer Gains Balance at
1 September £’000 £’000 £’000 £’000 31 August
2019 2020
£’000 £’000
Bursary Endowment fund 22,411 1,320 (142) 316 (20) 23,885
Music and Drama 1,226 - (7) (81) (20) 1,118
Prize fund 155 - - 9 1 165
Teachers’ Bequest 137 - - (12) (3) 122
Stein Bursaries fund 120 - - - (3) 117
Recital Hall Maintenance 204 - - (2) (5) 197
To 31 August 2020 24,253 1,320 (19) 230 (50) 25,604

Income from endowment investments is treated as unrestricted income, and related expenditure treated as unrestricted expense. Transfers totalling £130,000 were made from the Unrestricted fund to maintain the Expendable Endowment fund balances. A further £100,000 was transferred from a Restricted fund.

Balance at Income Expenditure Transfer Gains Balance at
1 September £’000 £’000 £’000 £’000 31 August
2018 2019
£’000 £’000
Bursary Endowment fund 16,270 1,107 (108) 4,144 998 22,411
Music and Drama 1,118 - (7) 50 65 1,226
Prize fund 153 - - 2 - 155
Teachers’ Bequest 124 - - 13 - 137
Stein Bursaries fund 108 - - 12 - 120
Recital Hall
Maintenance		 185 - - 19 - 204
To 31 August 2020 17,958 1,107 (115) 4,240 1,063 24,253

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

51

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

23 RESTRICTED FUNDS

23 RESTRICTED FUNDS
Balance at Income Expenditure Transfer Gains Balance at
1 September 31 August
2019 2020
£’000 £’000 £’000 £’000 £’000 £’000
Bursaries appeal 3,050 567 (488) 14 112 3,275
Other donations for bursaries 8,259 3,215 (1,200) (76) 1,171 11,369
Other donations 190 523 (234) (38) - 441
To 31 August 2020 11,499 4,305 (1,902) (100) 1,283 15,085
Balance at Balance at
1 September Income Expenditure Transfer Gains 31 August
2018 2019
£’000 £’000 £’000 £’000 £’000 £’000
Bursaries appeal 2,834 581 (477) 4 108 3,050
Other donations for bursaries 5,890 3,340 (968) (4) 1 8,259
Other donations 131 211 (151) (1) - 190
To 31 August 2019 8,855 4,132 (1,596) (1) 109 11,499

52

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

24 UNRESTRICTED FUNDS (NET ACCUMULATED SURPLUS AND PENSION RESERVE)

Balance at Income Expenditure Transfer Gains/ Balance at
1 September (losses) 31 August
2019 2020
Group £’000 £’000 £’000 £’000 £’000 £’000
General 35,727 26,699 (25,680) (6,429) 45 30,362
Pension reserve (399) - 49 - - (350)
Legacy fund 1,138 340 - - - 1,478
Whitton Sports Ground 913 - - - - 913
Reserve fund 2,998 5 - 800 11 3,814
Total Unrestricted 40,377 27,044 (25,631) (5,629) 56 36,217
Buildings & Bursary Designated fund 3,106 79 (17) 5,499 327 8,994
To 31 August 2020 43,483 27,123 (25,648) (130) 383 45,211
Balance at
1 September
2019		 Income Expenditure Transfer Gains/
(losses)		 Balance at
31 August
2020
Charity £’000 £’000 £’000 £’000 £’000 £’000
General 35,727 26,694 (25,675) (6,429) 45 30,362
Pension reserve (399) - 49 - - (350)
Legacy fund 1,138 340 - - - 1,478
Whitton Sports Ground 913 - - - - 913
Reserve fund 2,998 5 - 800 11 3,814
Total Unrestricted 40,377 27,039 (25,626) (5,629) 56 36,217
Buildings & Bursary Designated fund 3,106 79 (17) 5,499 327 8,994
To 31 August 2019 43,483 27,118 (25,643) (130) 383 45,211

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

53

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

24 UNRESTRICTED FUNDS (continued)

Balance at
1 September
2018		 Income Expenditure Transfer Gains/
(losses)		 Balance at
31 August
2019
Group £’000 £’000 £’000 £’000 £’000 £’000
General 33,666 27,596 (25,568) (93) 126 35,727
Pension reserve (105) - 22 - (316) (399)
Legacy fund 519 619 - - - 1,138
Whitton Sports Ground 913 - - - - 913
Reserve Fund 3,009 42 (3) - (50) 2,998
Total Unrestricted 38,002 28,257 (25,549) (93) (240) 40,377
Buildings & Bursary Designated Fund 6,796 146 (26) (4,145) 335 3,106
To 31 August 2019 44,798 28,403 (25,575) (4,238) 95 43,483
Balance at Income Expenditure Transfer Gains/ Balance at
1 September (losses) 31 August
2018 2019
Charity £’000 £’000 £’000 £’000 £’000 £’000
General 33,641 27,618 (25,565) (93) 126 35,727
Pension reserve (105) - 22 - (316) (399)
Legacy fund 519 619 - - - 1,138
Whitton Sports Ground 913 - - - - 913
Reserve Fund 3,009 42 (3) - (50) 2,998
Total Unrestricted 37,977 28,279 (25,546) (93) (240) 40,377
Buildings & Bursary Designated Fund 6,796 146 (26) (4,145) 335 3,106
To 31 August 2019 44,773 28,425 (25,572) (4,238) 95 43,483

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

54

NOTES FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 (continued)

25 SUBSIDIARY

Shares held
Country of Reporting
Name Number Incorporation Date Class No. %
1624 Limited 09474028 England and Wales 31 August 2020 Ordinary
1		 100
2020 2019
£ £
Total income 224,210 319,026
Total expenditure (206,416) (289,909)
Proft on ordinary activities before tax 17,794 29,117
Tax on proft on ordinary activities - -
Proft on ordinary activities after tax 17,794 29,117
Gift aid payment to Foundation (17,794) (53,616)
Retained proft for the fnancial year - (24,499)
Total assets 304,446 231,703
Total liabilities (304,445) (231,702)
Total net assets 1 1
Called up share capital 1 1
Retained proft - 24,499
Shareholders’ funds 1 1

L AT YMER FOUNDATION CONSOLIDATED REPORT AND FINANCIAL STATEMENTS 2020

55