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2021-08-31-accounts

The Maria Montessori Training Organisation Financial Statements 31 August 2021

THE MARIA MONTESSORI TRAINING ORGANISATION

Company No. 697468 Charity No. 313087

Financial Statements

For The Year Ended 31[st] August 2021

The Maria Montessori Training Organisation Financial Statements

31 August 2021

Contents

Executives and Advisors 2
Trustees
Report including Strategic Report		 3-15
Responsibilities 16
Report of the Auditors 17-19
Statement of financial activities 20
Balance sheet 21
Statement of Cash Flows 22
Notes to the financial statements 23-33

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Directors and Executive Committee

Mr. R.A. Partridge (Chairman) Mrs. L.Webster (Company Secretary) Mr. D. Murphy (Honorary Treasurer) Mr B. Faccini Mrs. N. Forsyth Ms Sara Giwa-McNeil Mrs. W.H. Innes Mrs. A. Lake Mrs. C. Laubin (resigned 11[th] November 2020) Mrs. C Middlemas Mrs. F. Scott

Registered Office

Devonshire House 60 Goswell Road London EC1M 7AD

Principal Office

26 Lyndhurst Gardens Hampstead London NW3 5NW

Auditors

Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

Principal Solicitors

Lee Bolton Monier Williams 1 The Sanctuary, Westminster London SW1P 3JT

Bankers

Lloyds Bank 39 Threadneedle Street, London EC2R 8AU

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

The Trustees have pleasure in presenting their report and financial statements for the year ended 31[st] August 2021 which have been prepared under the historical cost convention and in accordance with applicable accounting standards and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014.

Principal Activity

The principal activity of the company continues to be to promote the application of the authentic educational principles on which the method of teaching children generally known as the Montessori Method is based and in particular to train teachers in that method. In addition, the company runs exemplar schools (18 months 12 years), in which students are able to observe AMI Montessori principles and standards in practice.

The MMTO is one of the few AMI training centres in the world that offer AMI training and a model school where the philosophy, concepts and techniques can be seen in practice and which provides access to an archive for researchers.

Strategic Report

The overall vision of the Organisation is that it will be a focal point and resource centre for Montessori education in the UK through schools, training, and parental and other forms of outreach and will have a significant impact on the lives of children.

Aims and Objectives

A world where Montessori education is empowering the next generation to be happier, more fulfilled and better able to make a positive difference to their family, their community and the planet.

The key objectives of the Organisation are:

To collaborate with AMI in the development and delivery of innovative course offerings beyond teacher training

Key Performance Indicators

The Organisation considers the Key Performance Indicators to be:

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The Maria Montessori Training Organisation Financial Statements

31 August 2021

T

COVID -19

The COVID-19 pandemic continued to impact on the operations of the Organisation resulting in the closure of the Training Centre building for part of the year and the School buildings remaining open only for children in the early years and those of critical workers. For the periods of the year when they were unable to access the physical buildings children and students were taught online. However, this continued to provide an opportunity to review the delivery method of the Training Courses and, with the endorsement of the Association Montessori Internationale, Assistants Certificate Courses have continued to be delivered online which has resulted in much larger numbers of students attending than in previous years. The live-streamed lectures have been attended by students from around the world and have enabled our Training to reach areas of the UK such as Birmingham, Manchester and Bristol, where the Institute has previously not had a major presence.

In addition to these courses, the Institute has held online workshops for the Montessori in the Home series and for AMI Montessori for Dementia and Aging.

The AMI academic year (3-6) Diploma Courses continued online and in-person, where possible, and students were able to graduate in June 2021 as planned. Summer courses have been delivered in person where feasible with students unable to join due to travel restrictions joining remotely.

No staff were furloughed in the financial year and careful management of resources meant that School Fees for the 2020-2021 school year were held at the 2019-2020 levels.

The Trustees remain positive that the measures put in place in 2020-21 can be refined and re-introduced in future in the orter courses and workshops via live online sessions thus expanding the potential number of participants.

Sustainable Development Goals

MMI endorses the Sustainable Development Goals, in particular Goal 4 which recognises the rights of all children to a quality education and the need for many more trained teachers to help fulfil this right. Our goals are to advocate and promote that right, and to increase the number of teachers and adults trained to deliver child-centred Montessori education and in particular to expand ways of delivering education to those children and adults who have the least opportunities to access it.

MMI does this not only through its Montessori teacher training and school but also by its commitment to offering teaching bursaries, training and teaching expertise to its historical partners in East Africa and other developing countries.

Of specific relevance is by 2030 ensure that all learners acquire the knowledge and skills needed to sustainable lifestyles, human rights, gender equality, promotion of a culture of peace and non-violence, global

The Montessori programme from 0 18 promotes all of the above through its particular methodology and practices and UN Convention on the Rights of the Child.

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Objectives and achievements in the year and Future Plans

To continue to offer the 3 6 Diploma course in both full-time and part-time formats and to increase access to the range of AMI courses offered in the UK.

Achievements:

Future Plans:

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The Maria Montessori Training Organisation Financial Statements

31 August 2021

(Continued)

Objectives and achievements in the year and Future Plans (continued)

Develop the capacity of our Montessori schools across the 0-18 age levels of Montessori Education

Achievements:

Future Plans:

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The Maria Montessori Training Organisation Financial Statements

31 August 2021

Objectives and achievements in the year and Future Plans (continued) Promote AMI standards by providing professional development opportunities for teachers, parent support initiatives and speakers at international conferences

Achievements:

Future Plans:

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Objectives and achievements in the year and Future Plans (continued)

To establish and support additional training courses in places other than London.

Achievements:

Future Plans:

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Objectives and achievements in the year and Future Plans (continued)

Provide support to and influence in AMI. Achievements:

Future Plans:

Lynne Lawrence is the Executive Director of AMI and Cherry Worthington is the Chief Financial Officer of AMI. They hold these positions in addition to their work at the MMTO

Louise Livingston is the China Faculty Coordinator and is a member of the AMI Global Research Group and the AMI International Teacher Training Group

To continue to support the work of AMI through the provision of key personnel

To collaborate on the AMI Observation software

To further pilot the Montessori Ageing and Dementia Educator programme

Staff acted as examiners in Nigeria, South Africa, Tanzania and Greece as well as providing training in China and Tanzania

Poinsy Pino has continued to mentor the newly established Elementary classes in Kenya and Tanzania

outreach work

Achievements:

Future Plans:

Staff from the MMTO have been instrumental in the establishment of the Montessori School in the IDP camp in Kenya and in the establishment of a second school 25km away from the Corner of Hope. And in supporting the professional development of teachers offering Montessori schooling to the nomadic Samburu tribes in Northern Kenya

Two staff members joined the Board of the not-for-profit NGO Montessori for Kenya Trainers from the MMTO are providing an AMI international Diploma course in Tanzania

Our project, in Bronzefield Prison has had to be put on hold during the pandemic but is hoped that we will be able to resume work with other groups in the future

Continue to support the work at the Corner of Hope schools in Kenya, extending the Samburu nomadic work and applying it to Eastern Pokot MMI staff to continue to participate on the Montessori for Kenya Board to develop excellent Montessori schools and practice in Kenya as a model for other countries in Africa Continue working with babies and mothers in Bronzefield prison Work with the Happy Baby Community to offer assistants courses and parental information sessions for women with children seeking asylum in the UK Work with the Arthur Waser Foundation on the international AMI Diploma Course in Tanzania and on building infrastructure to support national courses in East Africa To develop a parent information programme aimed at parents both within and outside of our schools

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The Maria Montessori Training Organisation Financial Statements

31 August 2021

Objectives and achievements in the year and Future Plans (continued)

Define and effect structural change within MMI to support the scope of its activity

Achievements:

Future Plans:

To continue to develop the Montessori archive so as to make it available to students, researchers and interested parties

Achievements: Future Plans:
During the year, further documents related to Continue to provide information to AMI and to
the history of the school and the Training researchers
Centre have been cleaned and catalogued
Continue the work on the visual and audio
Relevant texts were sent to AMI for archives
publication. Many individuals are now using the
archive to search for information and primary
source material

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The Maria Montessori Training Organisation Financial Statements

31 August 2021

T

Structure, Governance & Management

The charity is constituted as a company limited by guarantee registered in England and Wales document is its Memorandum and Articles of Association which were last revised in October 2007. The charity consists of an organisation which trains individuals in the Montessori Method of education based in Riding House Street, Central London and Hampstead and an exemplar school situated on ~~s~~ ite in Hampstead and off-site in Notting Hill, Bayswater, Hornsey Rise and Abbey Road, . No fundraising activities were undertaken by the charity during the year, and no complaints were reported to the charity commission for the current financial year.

Recruitment and Appointment of the Board

Directors who served during the year are listed on the previous page of this report.

Directors are appointed, when a vacancy arises, in accordance with our by-laws. Directors will either have experience of Montessori education or will provide expertise that will contribute to the governance of the charity. Recruitment may be made through organisations specializing in the search for trustees or through direct contact made through and by the organisation.

Each Trustee (Director) is appointed for a term of three years and may be reappointed for an indefinite number of terms, therefore each year a third of the Trustees are up for reappointment.

The induction process for new directors enables them to become familiar with the history and ongoing activities of the organisation through a series of meetings, visits to the organisation to observe its activities and publicity and informational material. Directors receive relevant training such as Safeguarding, Safer Recruitment, Health & Safety as required, and also attend Montessori Courses held at the Institute throughout their period of service.

The Board meets a minimum of three times per year and decides upon broad policy based on the strategic direction proposed by the Steering Committee.

Steering Committee

The charity is strategically and financially directed by the steering committee. The steering committee meets approximately three times per term to ensure the smooth running of the Organisation. Committee members are currently drawn from the Board and include the Executive Director and the Bursar:-

Ms. S Giwa- McNeil Director Mrs. W Innes Director (Health & Safety; Safeguarding) Mrs. L Lawrence Executive Director Mrs. C Middlemas Director Mr. R Partridge Chair of the Board Mrs. C Worthington Bursar

The Executive Director has overall responsibility and power of decision making for the day to day running of the Organisation (administrative, pedagogical and financial) and reports to the Steering Committee.

Management Committee

The various branches of the charity are run on a day to day basis by the Senior Management Team and relevant stakeholders in the Organisation. Meetings take place as necessary to ensure the smooth running of all aspects of the Organisation. The participants are drawn from the senior Training, School and Administrative Staff.

Health and Safety Committee

This committee meets three times per year. Membership is taken from the Directors, teaching, administrative and auxiliary staff. Health and Safety consultants to the MMTO or relevant experts in the field are consulted as necessary.

Risk Assessment

The Board of Directors of the Organisation undertakes an annual risk assessment where major risks to the Organisation are identified and systems and procedures to alleviate them are reviewed.

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Impairment Review

The Board of Directors of the Organisation undertakes an annual impairment review of its building at Lyndhurst Gardens.

Public Benefit

In the furtherance of the Objects, the Directors, as the charity trustees, have complied with the duty in s.17 of the Charities Act 2011 -sector guidance concerning the operation of the public benefit requirement under that Act.

Bursaries

Support in the form of bursaries is available for those wishing to attend the school or training course but who otherwise are unable to pay the fees or for those current pupils and children where a change in financial circumstances would compromise their ability to remain at the school or continue with their studies.

Those wishing to be considered for financial support are required to submit their application, accompanied by the relevant financial information for consideration by the Steering Committee. The amount of assistance granted is subject to the ability to pay full fees and the amount of bursary funds available. Bursary awards for school fees are reviewed annually.

Key Management Personnel remuneration

The Board of Directors consider the Executive Director and the Bursar as comprising the key management personnel of the Organisation in charge of directing and controlling the charity and running and operating the Organisation on a day to day basis.

Remuneration Policy

The Organisation operates banded salary ranges for all staff including senior staff. The bands are reviewed annually and compared with other similar organisations and generally an inflationary increase is applied, depending upon the financial resources of the charity.

Co-operation with other organisations

Association Montessori Internationale

The Organisation continues to co-operate with the Association Montessori Internationale whose courses they run. This Association, founded by Dr. Maria Montessori in 1929, was created to uphold, propagate and further the pedagogical principles and practice formulated by Dr. Maria Montessori for the full development of the human being. Additional support for AMI was given to AMI in the form of personnel. Mrs. Lawrence is Executive Director of AMI and Mrs Worthington is Chief Financial Officer of AMI and they hold these positions in addition to their normal range of duties carried out for the MMTO.

The Maria Montessori Training Organisation runs courses that lead to an Association Montessori Internationale Diploma and must adhere to the standards for quality laid down by the AMI.

Montessori Society AMI UK

The Society is an open membership autonomous body working in adherence to AMI s aims and objectives. It is staffed essentially by volunteers. It provides its membership with publications, seminars and conferences disseminating and furthering knowledge of Montessori education and principles and the MMTO supports this society in its work.

Montessori Education UK

This organisation was created to provide a unified voice for Montessori within the UK and has also established a quality assurance scheme for Montessori schools across the country which provides mentorship for schools and helps parents identify schools with good Montessori practice. The MMTO is a founding member of this Organisation.

Bronzefield Prison

a developmentally sound start inside prison. The aim is to stage an intervention that may break the cycle of offending and give both mothers and children a better start in life.

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The Maria Montessori Training Organisation Financial Statements

31 August 2021

Risk assessment

The key risks to the Organisation have been identified and appropriate controls and processes have been put in place to address these. The key risks, in no particular order, currently facing the Organisation are considered to be:

Key Risk Key Risk Potential Impact on Objectives Potential Impact on Objectives Risk Response
Operational risk Pandemic (eg COVID-19),
enforced school closure;
computer failure; destruction of
property; fraud resulting in
financial loss; data loss; damage
to reputation.		 Contingency plans for delivery of
education remotely; data backup
procedures and precautions;
disaster recovery plan;
recruitment of suitably qualified
staff; DBS clearance for all
students and staff; appropriate
policies and staff training;
insurance including cyber
insurance, financial controls in
place; monitoring of budgets and
financial results.
Governance and management
structure and skills
insufficient to meet the
,
financial resources insufficient to		 Lack of clear plans and priorities;
poor value for money; poor
service delivery; uncertainty on
staff and board roles and
responsibilities; loss of key staff;
competition from other
Montessori training centres and
schools		 Strategic plans reviewed
annually; monitoring of budgets
and financial results; regular
Steering Committee meetings;
clear understanding of roles and
responsibilities; robust
recruitment process;
documentation of systems and
procedures; marketing plan in
place and monitoring of
competition.
Regulatory and legal changes,
including UK withdrawal from
Europe (Brexit), compulsory
closure of school and/or college,
mandatory business rates relief		 Lack of compliance with
government regulations and
authorities, including Ofsted;
School Inspection Service;
withdrawal of college status;
withdrawal of highly trusted
sponsor status by the UKVI, loss
of students from Europe, risk to
service delivery, loss of students
and/or school children.		 Key legal and regulatory
requirements identified and
proposed changes monitored;
membership of umbrella bodies
eg ME(UK), ISBA; Health &
Safety reviews; fire safety
reviews; delegated staff
responsible for regulatory areas;
monitoring of changes to visa
requirements and other
international student issues,
introduction of University
sponsored Foundation Degree,
remote learning plans prepared.

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Financial Review

Performance in the Period

Results for the year

Income increased by £420,000 to £3,385,000 primarily as a result of increased students on training courses. The Institute held AMI Diploma and Assistants courses at all levels and also held a number of workshops and professional development days during the year.

Expenditure increased by £276,000 to £3,151,000 reflecting the increase in staffing, the external trainer costs associated with courses at the 0-3 and 6-12 levels and the increase in property costs associated with the rental of additional premises in Hampstead for the 6-12 Diploma course, the additional cleaning costs resulting from enhanced cleaning for a full year and an increase in business rates.

The result of the above is a surplus of £234,000 surplus of £90,000 and is significantly ahead of the budgeted surplus.

Overall net assets of the charitable company as at 31[st] August 2021 are £7,990,000 (2020: £7,756,000 assets are adequate to fulfil the immediate obligations of the charity.

Five year summary for the year ended 31st August

Income and Expenditure Account

£ thousand 2021 2020 2019 2018 2017
IncomingResources 3,385 2,965 2,840 2,661 2,666
ResourcesExpended (3,151) (2,875) (2,811) (2,822) (2,520)
Net Income/(Expenditure) 234 90 29 (161) 146

Balance Sheet Extract

£ thousand 2021 2020 2019 2018 2017
Fixed Assets 7,797 7,851 7,907 7,947 7,316
Current Assets less Liabilities 193 (95) (241) (310) 482
Funds
Restricted		 5 2 2 2 2
Funds
Unrestricted		 7,985 7,754 7,664 7,635 7,796

Numbers of students and children

----- Start of picture text -----
No 2021 2020 2019 2018 2017
Students 3-6 Course 96 63 72 60 49
Students 0-3 Course 31 31 31 11 12
Students 6-12 Course 22 22 20 20 22
Assistants Courses 441 238 87 111 107
Other Courses and Workshops 772 356 365 431 300
School children 187 187 181 179 204
----- End of picture text -----

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Bursaries to support children and teacher trainees

Over the course of the year 33 children benefitted from assisted fees and 6 children benefitted from full fee relief; in total £279,892 (2020: £310,608) of assistance was given. A total of 21% (2020: 39%) of the children received help. A full bursary was awarded to 1 student on the 6-12 Diploma Course and 4 students on the Post Diploma Course. Twenty students on Diploma courses and 32 on Assistants courses benefitted from assisted fees. A total of 9% (2020: 18.5%) of students were given help. A number of free and assisted places were given to staff and other attendees of workshops and events. The amount of bursary assistance awarded in 2020 was greatly increased due to the financial impact of the COVID-19 pandemic on our families and students.

Fixed Assets

The movements in fixed assets are shown in the notes to the financial statements.

Freehold Land and Buildings

The company owns the freehold premises known as 26 Lyndhurst Gardens.

Reserves Policy

The total level of funds as at 31[st] August 2021 were £7,990,044 (2020: £7,756,448) of which £4,964 (2020: £2,178) related to restricted funds, £7,068,943 (2020: £7,166,155) was invested in Freehold property.

The long-term aim of the Organisation is to build up its free reserves to a level which equates to 3 months of unrestricted expenditure (£800,000). The Organisation also needs to accumulate further funds to meet its building commitments relating to the everyday repairs, renewals and refurbishment costs. The Organisation plans to build up reserves by attracting more students and children to the Institute and School.

The reserves policy will be reviewed by the directors on an annual basis.

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Statement of Directors Responsibilities

The Directors (who are also trustees of The Maria Montessori Training Organisation for the purposes of charity law) are responsible for preparing the report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company 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 members are required to:

Select suitable accounting policies and then apply them consistently;

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

In so far as the directors are aware:

There is no relevant audit information of which the charitable

This report has been prepared in accordance exemption.

Auditors

Moore Kingston Smith LLP have indicated their willingness to continue in office and in accordance with the provisions of the Companies Act it is proposed that they be re-appointed auditors for the ensuing year.

By Order of the Board

.................................

Mrs L. Webster Secretary

18 November 2021

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The Maria Montessori Training Organisation Financial Statements

31 August 2021

INDEPENDENT ORGANISATION

Opinion

August

2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Ki

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 statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to l responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

e preparation

of the financial statements is appropriate.

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

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

Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

s

consistent with the financial statements; and

h applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

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

Responsibilities of trustees

le company

for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

e 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 charitable company or to cease operations, or have no realistic alternative but to do so.

for the audit of the financial statements

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

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or

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The Maria Montessori Training Organisation Financial Statements

31 August 2021

suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

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

Date 15 December 2021

Shivani Kothari (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Statement of Statement of Financial Activities Financial Activities
For the year ended 31st August 2021
Unrestricted Restricted Total Total
Funds Funds Funds Funds
Income and Expenditure note 2021 2020
£ £ £ £
Income
Income from charitable activities:
Course and other fees receivable 2 3,375,226 - 3,375,226 2,945,809
Income from generated funds:
Donations and legacies 3/14 5,226 2,786 8,012 15,391
Interest receivable 199 - 199 1,056
Other Income 1,170 - 1,170 2,664
______ ___ ___ ___
Total Income 3,381,821 2,786 3,384,607 2,964,920
______ ___ ___ ___
Expenditure
Charitable Activities 4 3,151,011 - 3,151,011 2,874,775
______ ___ ___ ___
Total Expenditure 3,151,011 - 3,151,011 2,874,775
______ ___ ___ ___
Net (Expenditure)/ Income before transfers 6 230,810 2,786 233,596 90,145
Transfers Between Funds 14 - - - -
______ ___ ___ ___
Net Movement in Funds 230,810 2,786 233,596 90,145
Balances brought forward at
1st September 2020 14 7,754,270 2,178 7,756,448 7,666,303
______ ___ ___ ___
Balances carried forward at 14 7,985,080 4,964 7,990,044 7,756,448
31st August 2021
______ ___ ___ ___

All amounts derive from continuing activities.

All gains and losses recognised in the year are included in the Statement of Financial Activities.

The notes on pages 23 to 33 form part of these financial statements.

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Balance Sheet At 31st August 2021

2021 2021 2020 2020
note £ £ £ £
Fixed Assets
Intangible Assets 8 - 1,830
Tangible assets 9 7,797,381 7,849,319
__ __
7,797,381 7,851,149
Current Assets
Debtors 10 224,710 204,611
Cash at bank and in hand 1,358,782 1,017,894
__ __
1,583,492 1,222,505
Creditors: amounts falling due within 11 (1,180,921) (1,094,299)
one year
__ __
Net Current Assets /(Liabilities) 402,571 128,206
__ __
Total Assets Less Current Liabilities 8,199,952 7,979,355
Creditors: amounts falling due after
More than one year 12 (209,908) (222,907)
__ __
Total Net Assets 7,990,044 7,756,448
__ __
Funds
Restricted funds 14 4,964 2,178
Unrestricted funds:
General 14 7,298,818 7,068,008
Designated 686,262 686,262
__ __
15 7,990,044 7,756,448
__ __
Approved by the board on 18 November 2021
Mr R Partridge ...................................................... Director
Mr D Murphy....... ...................................................... Director

The notes on pages 23 to 33 form part of these financial statements. Company Registration No: 697468

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The Maria Montessori Training Organisation Financial Statements 31 August 2021

Statement of Cash Flows For the Year ending 31st August 2021

note
Cash Flows from Operating activities:
Net cash provided by (used in) operating activities
17
Cash Flows from Investing activities:
Interest
Purchase of Fixed Assets
Net Cash provided by (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1st September 2020
Cash and cash equivalents at 31st August 2021
18		 Total funds
2021
£
460,335
460,335
199
(119,646)
(119,447)
340,888
1,017,894
1,358,782		 Total funds
2020
£
406,223
406,223
1,056
(20,727)
(19,671)
386,552
631,342
1,017,894

The notes on pages 23 to 33 form part of these financial statements.

Company Registration No: 697468

22

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS

1 Principal Accounting Policies

The accounting policies remain unchanged from last year.

Accounting Basis and Standards

The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards and the Statement of Recommended Practice 2015: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Charities Act 2011.

The financial statements have been prepared in sterling which is the functional currency of the charity, rounded to the nearest £.

Income

All income is recognised once the Organisation has entitlement to the income, it is probable that the income will be received, and the amount of income can be measured reliably. Income consists of school fees, nursery education grants for 3 and 4 year olds and course fees. Income is deferred only when the charity has received income in advance of conditions to be fulfilled in the future.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation committing the organisation to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs related to that activity.

Support costs where costs cannot be directly attributed they have been allocated to activities on the basis of the amount of staff time spent on each activity.

Governance costs - have been allocated to activities on the basis of the amount of staff time spent on each activity. These costs comprise all costs incurred in connection with the public accountability of the charity and its compliance with regulation and good practice and include costs related to statutory audit and legal fees.

Depreciation

Assets at a value of greater than £500 are capitalised and depreciated over their useful economic life.

Depreciation on fixed assets is provided at rates estimated to write off the cost or revalued amounts, less estimated residual value, of each asset, over its expected useful life as follows:

Improvements to owned buildings not depreciated
Improvements to buildings under licence depreciated over the period of the licence
Office and kitchen equipment 5 years
Computer equipment between 3 and 5 years

The company owns the freehold premises known as 26 Lyndhurst Gardens. The transitional arrangements within section 35 of FRS 102 have been applied and the property has been revalued as per the report by Jones Lang Lasalle. An annual impairment review is undertaken by the Trustees.

und repair and to make improvements thereto from time to time. The directors consider the useful economic life of the property to be in excess of 50 years, and that it did not diminish during the period under review. Consequently, no charge for depreciation is made.

23

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1 Principal Accounting Policies (continued)

Intangible Assets

three

years.

Financial Instruments

of

FRS102 to all of its financial instruments. Financial Instruments are recognised in the cha of the instrument. Basic financial instruments are measured at amortised cost.

Operating Leases

Rentals paid under operating leases are charged to the SOFA on a straight line basis over the terms of the lease.

Taxation

The company has no liability to corporation tax due to its charitable status.

Employee Benefits

The costs of short term employee benefits are recognised as a liability and an expense. Termination benefits are recognised as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Pension

A defined contribution scheme was established in March 2015. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the scheme rules.

Funds

Unrestricted These are funds that can be used in accordance with the charitable objects at the discretion of the trustees. Designated These are unrestricted funds earmarked by the trustees for particular purposes. Restricted These are funds that can only be used for particular purposes within the objects of the charity and are restricted by the donor.

Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the Trustees to have the most significant effect on amounts recognised in the financial statements.

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of the property, plant and equipment and note 1 above for the useful economic lives for each class of asset.

Provisions for doubtful debts are determined by individual assessment of the amounts receivable.

Going concern

on

has adequate resources to continue in operational existence for the foreseeable future. Enrolment on Diploma courses remains buoyant with an increased number of students having commenced their studies in autumn 21. Assistants courses and professional development workshops will continue to be held online and courses taking place in the autumn term have a strong uptake. Numbers in the school are broadly in line with previous years and recruitment of pupils will continue throughout the year. On this basis the Directors have concluded that there are no material uncertainties that impact the use of the going concern basis and that the organisation will be able to settle its debts as they fall due for a period of at least 12 months from the date of approval of these financial statements. Accordingly, the going concern basis has continued to be adopted in the preparation of the financial statements

24

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

2 Course and other fees

Course and other fees receivable are attributable to the principal activity of the company which arose wholly in the United Kingdom and within the charitable objects of the company.

2021 Total Funds Total Funds
2021 2020
£ £
School Fees:
Gross Fees 2,237,114 2,267,639
Bursaries/Discounts (279,892) (310,608)
Government Grants 164,010 102,359
Furlough Funding - 60,160
Other School Income 15,911 11,550
2,137,143 2,131,100
Course Fees:
Gross Fees 1,315,789 848,135
Furlough Funding - 20,847
Bursaries/Discounts (77,706) (54,273)
1,238,083 814,709
______ ______
3,375,226 2,945,809
====== ======

The Organisation received Early Years Funding of £164,010 (2020: £102,359) from local authorities in respect of the 15 hours per It received no (2020: £81,007).

All other school fees received in 2021 were unrestricted.

3 Donations and Legacies

Included in Donations are gifts in kind to the value of £4,800 (2020: £0) in relation to software services provided to the school.

Included in Restricted funds were donations of £0 during the year (2020: £9,020) as a contribution to the school bursary fund.

25

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

4 Direct Charitable Expenditure

2021 Direct Staff Costs Allocation of
Total Funds
Costs Administration
2021
Costs
£ £ £ £
Salaries and social security
Course Salaries - 550,514 125,300 675,814
School salaries - 1,044,623 237,762 1,282,385
Catering 94,720 42,821 15,621 153,162
Teaching aids, materials and other direct
expenses 56,399 - 3,498 59,897
Examination costs 1,672 - 104 1,776
AMI fees 59,829 - 3,711 63,540
Property costs 768,767 - 47,680 816,447
Advertising 60,921 - 3,778 64,699
Governance Costs 17,445 15,846 - 33,291
______ ______ ______ ______
1,059,753 1,653,804 437,454 3,151,011
====== ====== ====== ======
2020
Direct Staff Costs Allocation of
Total Funds
Costs Administration
2020
Costs
Salaries and social security
Course Salaries - 498,052 139,327 637,379
School salaries - 951,893 266,287 1,218,180
Catering 86,427 43,541 21,282 151,250
Teaching aids, materials and other direct
expenses 49,880 - 5,253 55,133
Examination costs - - - -
AMI fees 41,036 - 4,321 45,357
Property costs 624,995 - 65,814 690,809
Advertising 38,688 - 4,074 42,762
Governance Costs 17,960 15,945 - 33,905
______ ______ ______ ______
858,986 1,509,431 506,358 2,874,775
====== ====== ====== ======

Direct Governance Costs comprise audit fees in both 2021 and 2020.

Included in other direct expenses are gifts in kind to the value of £4800 (2020: £0) in relation to software services provided to the school.

26

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Administration Costs

Administration Costs
2021 Unrestricted Restricted Total Funds Total Funds
Funds Funds 2021 2020
£ £ £ £
Salaries 268,178 - 268,178 300,641
Accountancy and Payroll 6,035 - 6,035 7,998
Legal and Professional 37,739 - 37,739 20,930
Inspection and accreditation 8,613 - 8,613 14,217
Montessori Education (UK) Limited - - - -
Staff Life Assurance 7,366 - 7,366 8,342
Travel and subsistence 1,681 - 1,681 32,302
Printing, postage, stationery 17,970 - 15,810
17,970
Telephone 8,223 - 8,223 13,810
Sundry 9,709 - 9,709 7,951
Archiving and study centre costs 900 - 900 3,375
Bank charges 18,826 - 18,826 17,470
Subscription to examining body 5,874 - 5,874 2,577
Bad debt expense (1,445) - (1,445) 31,649
Recruitment 12,990 - 12,990 6,343
Licenses 11,761 - 11,761 4,627
Depreciation 21,204 - 21,204 15,876
Amortisation 1,830 1,830 2,440
______ ______ ______ ______
437,454 - 437,454 506,358
====== ====== ====== ======
(Note 13)

Administration costs of £0 (2020: £8,428) were allocated against restricted funds in 2021, constituted of salaries of £0 (2020: £8,428.)

2020 Unrestricted Restricted Total Funds Total Funds
Funds Funds 2020 2019
£ £ £ £
Salaries 292,213 8,428 300,641 318,494
Accountancy and Payroll 7,998 - 7,998 5,922
Legal and Professional 20,930 - 20,930 21,758
Inspection and accreditation 14,217 - 14,217 9,439
Montessori Education (UK) Limited - - - 963
Staff Life Assurance 8,342 - 8,342 7,960
Travel and subsistence 32,302 - 32,302 71,857
Printing, postage, stationery 15,810 - 15,810 22,794
Telephone 13,810 - 13,810 10,293
Sundry 7,951 - 7,951 8,955
Archiving and study centre costs 3,375 - 3,375 4,500
Bank charges 17,470 - 17,470 14,867
Subscription to examining body 2,577 - 2,577 12,177
Bad debt expense 31,649 - 31,649 2,615
Recruitment 6,343 - 6,343 364
Licenses 4,627 - 4,627 711
Depreciation 15,876 - 15,876 14,790
Amortisation 2,440 2,440 2,440
______ ______ ______ ______
497,930 8,428 506,358 530,901
====== ====== ====== ======

27

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

6 Net Movements in Funds

2021 2020
£ £
The net movement in funds is stated after charging:
:
- current year 16,500 16,000
- (Over)/Under provision in prior year 944 1,960
- In respect of other services 7,494 8,118
Depreciation ~~t~~angible fixed assets 75,372 73,778
Amortisation intangible assets 1,830 2,440
Loss/ (Surplus) on Disposal of Fixed Assets 96,211 201
Operating Leases 316,000 304,275
2021 2020
£ £
Staff costs during the year were as follows:
Wages and salaries 1,602,825 1,526,655
Social security costs 157,172 152,397
Pension costs (defined contribution scheme) 43,831 43,029
Pension Costs (other) 12,440 12,456
Redundancy and Reorganisation Costs - 3,954
_____ _____
1,816,268 1,738,491
====== ======

The number of employees whose benefits were over £60,000 during the year (excluding employer pension contributions) were:

ere:
2021 2020
number number
£60,000 - 70,000 2 2

Pension costs of £3,800 were paid in respect of these two employees.

The average weekly number of employees at the company during the year was 55.8 (2020 53.8). This is the full time equivalent of 44.1 (2020 46). There was no formal classification of duties.

The Organisation considers its key management personnel comprise the Trustees, the Executive Director and the Bursar. The total employment benefits including employer pension contributions of the key management personnel were £145,566 (2020: £146,352)

No director received any remuneration (2020 - £Nil) from the company in respect of their services as trustees. As permitted by rule 51(i) of the Articles of Association 1 (2020 0) director was paid £900 (2020: £0) for lecturing during the year. One former Director received a pension contribution of £12,000 (2020: £12,000).

No trustees in either year had any expenses reimbursed. Trustees indemnity insurance of £2,370 (2020 - £2,484) was paid during the year.

28

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

8 Intangible Assets

8
Intangible Assets
IT
Development
£
Cost
At 1st September 2020 65,240
Additions in the Year -
At 31st August 2021 65,240
======
Amortisation
At 1st September 2020 63,410
Charge for the Year 1,830
_____
At 31st August 2021 65,240
======
Net Book Value
At 31st August 2021 -
======
At 31st August 2020 1,830
======

9 Tangible Fixed Assets

Cost
At 1st September 2020
Additions
Transfers
Disposals
At 31st August 2021
Depreciation
At 1st September 2020
Charge for the year
On Disposals
At 31st August 2021
Net Book Value
At 31st August 2021
At 31st August 2020		 Freehold
Land and
Buildings
£
6,700,000
-
-
(96,211)
6,603,789
-
-
-
-
6,603,789
6,700,000		 Building
Improvem
ents
£
1,283,656
-
-
-
1,283,656
180,564
54,168
-
234,732
1,048,924
1,103,092		 Office and
Kitchen
Equipment
£
175,738
30,265
-
-
206,003
150,440
13,318
163,758
42,245
25,298		 Computer
& IT
£
48,367
8,748
(10,166)
46,949
27,439
7,886
(10,166)
25,159
21,790
20,929		 Assets
Under
Construction
£
-
80,633
80,633
-
-
-
-
80,633
-		 Total
£
8,207,762
119,646
-
(106,377)
8,221,030
358,443
75,372
(10,166)
423,649
7,797,381
7,849,319

All fixed assets are held for direct charitable use. The transitional arrangements within section 35 of FRS 102 have been applied and the property at 26 Lyndhurst Gardens (excluding the Coach House) has been revalued by Jones Lang Lasalle on the basis of Existing Use Value as at 31[st] August 2014 as a D1 property, as per RICS valuation standards in a report dated 15[th] February 2015.

29

The Maria Montessori Training Organisation Financial Statements

31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10 Debtors

2021 2020
£ £
Trade Debtors 109,347 118,127
Provision for bad and doubtful debts (13,909) (30,424)
Prepayments and accrued income 116,522 55,203
Other debtors 12,750 61,705
______ ______
224,710 204,611
===== =====
11
Creditors: amounts falling due within one year
2021 2020
£ £
Trade creditors 58,871 30,401
Social security and other taxes 43,220 45,713
Accruals 128,463 119,727
Deferred income 766,045 736,858
School deposits 125,650 111,535
Other creditors 58,672 50,065
_ _
1,180,921 1,094,299
===== =====

Included in Other creditors is an amount of £13,204 (2020: £13,168) which the Institute holds as custodian on behalf of school parent bodies.

Deferred income relates to course fees and school fees received in respect of the following year.

Balance at 1 September 2020 736,858
Fees received in advance 847,852
Released to statement of financial activities (725,358)
_
Balance at 31 August 2021 859,352
=====

12 Creditors: amounts falling due after more than one year

2021 2020
£ £
Lease Incentive Provision 116,601 128,325
Deferred Income 93,307 94,582
_ _
209,908 222,907
===== =====

30

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

13 Analysis of Net Assets between Funds

Unrestricted

Restricted Designated General
Funds Funds Funds Total Funds
£ £ £ £
Fund balances as at 31st August 2021
as represented by:
Tangible and intangible fixed assets - 7,068,943 728,438 7,797,381
Net Current assets 4,964 30,000 367,607 402,571
Creditors falling due after more than - - (209,908) (209,908)
one year
_ _ _ _
Total Net Assets 4,964 7,098,943 886,137 7,990,044
===== ===== ===== =====

14 Funds

Balance Incoming Outgoing Transfers
B/fwd Resources Resources
Total
£ £ £ £ £
Unrestricted Funds
General 7,068,008 3,381,821 (3,151,011) - 7,298,818
Designated - assets 656,262 - - - 656,262
Designated - Bursaries 30,000 - 30,000
_ _ _ _ _
7,754,270 3,381,821 (3,151,011) - 7,985,080
Restricted Funds
Help The Children Project 2,178 - - - 2,178
Born Inside Project - 2,786 - - 2,786
_ _ _ _ _
2,178 2,786 - - 4,964
_ _ _ _ _
7,756,448 3,384,607 (3,151,011) - 7,990,044
===== ===== ===== ===== =====

Unrestricted Funds

The unrestricted funds are represented by the balance of fixed assets and current assets less total liabilities.

The designated fund represents the net book value of the tangible fixed assets, excluding the net book value of the capitalised refurbishment works to the leased training centre premises and a transfer to general funds has been made accordingly.

y.

31

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Restricted Funds

Restricted income of £2,786 was received in 2021, related to the Born Inside Project.

The Help the Children Project fund is included within cash at bank and in hand in the balance sheet. The fund is used to help children in Africa.

The Born Inside Fund aims to provide a support and education programme for pregnant mothers and mothers with young children born or living inside prison. Donations from individuals totalling £2,786 (2020: £5,660) were received during the year.

15 Commitments Under Operating Leases

At 31 August 2021 the charity had total commitments under non cancellable operating leases as set out below:-

2021 2020
Land and Land and
Buildings Buildings
£ £
Operating Leases which expire:
Within 1 Year 318,083 310,916
Within 2 5 years 848,000 829,042
>5 Years 165,000 345,000
_ _
1,331,083 1,484,958
_ _

Included in the above analysis is the remainder of the 15-year lease for the Training Centre premises which was signed on 11[th] August 2017.

16 Related Party Transactions

Lynne Lawrence is the Executive Director of the Association Montessori Internationale (AMI) whose courses are run by MMTO and Cherry Worthington is the Chief Financial Officer of AMI. They hold these positions in addition to their work at the MMTO and are remunerated directly by each organisation. AMI is a separate organisation incorporated in The Netherlands. During the year the financial interactions between AMI and the MMTO amounted to a net payment of £62,360 (2020: £41,036), represented by payments for course fee accreditation and student memberships of £63,476 (2020: £41,036) offset by reimbursement of administrative expenses of £1,116 (2020: £0). The son of a member of the Senior Management Team works as a Teacher in the School and is

for Teachers. Lilian Kimata provided mentoring services during the year to Great Beginnings Montessori School, the proprietor of which is Wendy Innes, also a trustee of the MMTO.

32

The Maria Montessori Training Organisation Financial Statements 31 August 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

17
Reconciliation of cash flows from operating activities
2021 2020
£ £
Net income(expenditure) for the reporting period 233,596 90,145
Adjustments for:
Depreciation and amortisation charges 77,202 76,218
Proceeds from disposal of Fixed Assets 96,211 201
Dividends, interest and rents from investments (199) (1,056)
(Increase)/decrease in debtors (20,098) (69,141)
Increase(decrease) in creditors 73,623 309,856
_ _
Net cash provided by (used in), operating activities 460,335 406,223
18
Analysis of cash and cash equivalents
2021 2020
£ £
Cash in hand 657,697 1,017,894
Notice deposits less than 3 months 701,085 -
_ _
Total Cash and cash equivalents 1,358,782 1,017,894
_ _

33