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 train adults to teach children using the Montessori approach to education, in accordance with the standards of AMI
- To provide an authentic model of Montessori educational philosophy in practice illustrating an alternative approach to educating children
- To develop adults and teachers who are better prepared to help children and adults fulfil their potential, across all cultures and socio-economic groups
- To help to develop adults whose knowledge of the natural laws of growth and development enable children to develop spontaneously and naturally within the family, school and society
- To provide opportunities wherever possible for adults to understand how children construct themselves spontaneously, so that adults live together in harmony and co-operation with children and young people; thus creating the possibility of a more peaceful world
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:
- Maintaining the number of students on courses and the number of children in the school see Financial Review page 14 of this report. We are pleased with the continuing popularity of the courses and school
- Maintaining the quality of the courses to ensure that authentic Montessori is applied consistently and adheres to AMI standards. The Institute aims for the pass rate in the AMI Diploma Course examinations to be at least 85%. In 2021, students graduated with a 93% pass rate (2020: 96%)
- Maintaining the quality of the Montessori education offered in the School. This is difficult to measure quantitatively but can be evidenced by the numbers of children transferring to the Elementary school and the success of the 11
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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:**
- Students graduated with the Foundation Degree in Montessori Pedagogy (AMI 3-6). Students have access to loan funding and successful students are able to gain automatic entry onto a top up year leading to a BA (Hons) in Early Childhood and Montessori
- The Maria Montessori Institute ran 1 full time and 4 part-time (two-year) 3-6 academic year courses during the 2020/21 academic year for students wishing to obtain the Association Montessori Internationale Diploma. Students graduating in 2021 did so with a 93% pass rate. The 2[nd] summer of the 3-6 modular course was deferred to 2021 due to the Covid-19 pandemic and this course will now complete in 2022. A new summer course at this level commenced in July 2021
- The final module of the 0-3 Diploma course which commenced in July 2019 took place online in April 2021
- We will continue to offer the 3-6 courses in the existing formats
- We will run Diploma courses at 0-3 and 6-12 levels in modular format
- A new 0-3 Diploma course will commence in July 2022 which will take place over 2 summers
- We will offer Assistants Certificate courses at the 0-3, 3-6 and 6-12 levels and orientation courses and workshops at the 12-18 level
- We will offer Assistants Certificate courses, Montessori for Dementia and Ageing workshops, Montessori in the Home and the Post Diploma Observation course online as well as in person
- We will offer financial assistance to those students who would otherwise be unable to afford to attend the courses
- The 5[th] Elementary (6-12) course continued both in-person and online with students graduating in August 2021 with a 100% pass rate
- Two Assistants Courses at the 3-6 level and 6- 12 levels took place online during the year as well as three at the 0-3 level. These courses are aimed at parents, classroom assistants and those seeking basic knowledge of Montessori. In total, 437 people attended Assistants courses during the academic year (238 in 2020)
- We will actively promote the Foundation Degree in Montessori Pedagogy (AMI 3-6) and work with the University of East London to ensure students are from a range of socioeconomic backgrounds
- We will continue to offer Montessori for Ageing and Dementia workshops
- The first workshop in the UK at the 12-18 level took place with 75 online participants
- Montessori for Ageing and Dementia workshops took place during the year with 282 people attending. The aim of these courses is to demonstrate how Montessori principles can be applied by those caring for elderly people with dementia
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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:**
- The number of children attending the Elementary classes at Hampstead has continued to increase
- The MMI School continued to successfully support children across all sites
- The success of our series of talks aimed at parents in previous years identified the need to provide increased information to parents of children in our school and also in the wider community. Regular email communication, a parent newsletter and the expansion of information available on the website has enhanced the dissemination of information. MMI parental information sessions to cover all age groups have been introduced
- The COVID-19 pandemic meant that online learning provision had to be rapidly designed and implemented for all children in the School. Parental feedback on the quality of the sessions was positive and support was given to parents on how to implement the Montessori approach at home
- We are creating an additional class environment at our Hampstead site for the provision of an additional Elementary classroom
- We will continue to increase the numbers of children in our Elementary classes and will search for larger premises to accommodate this increase
- We will look for premises to establish a Montessori adolescent school
- Our bursary and assisted places policy for the School will continue to enable financial assistance to be given to a greater number of families who might otherwise not be able to benefit from a Montessori education
- Our communications strategy will assist in ensuring that we are communicating clearly and engaging well with parents and carers
- In the event of a local or national COVID-19 lockdown, the School will resume the remote learning provision
- We will develop a knowledge base in relation to the Montessori approach to schooling for the 12-18 age range
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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:**
- The Institute held information sessions throughout the year that were open to prospective students and the general public. Sessions which took place both in person and online. The School held online information sessions open to prospective parents. These Open Forums explain the basic aspects of the Montessori approach to education
## **Future Plans:**
- Continue to hold information sessions for prospective students
- Reintroduce the Introduction to Montessori sessions for students undertaking Early Childhood studies at Universities
- Hold parent evenings on relevant topics
- The series of Professional Development workshops continued, with an online workshop on Supporting Emotional Development in Young Children attended by 99 people
- Montessori in the Home courses were offered online at the 0-3 and 3-6 ages and were attended by more than 120 people. A new offering Preparation for Parenthood was piloted in the summer with 12 people attending
- An online Refresher Course (3-6) The Montessori Approach to the Education of Movement was attended by staff from our own school and other Montessori schools in the UK 113 people in total and the first Refresher
- Course at the 6-12 level was attended by 35 people
- The Observation Course continued to be offered online in order to support MMI graduate teachers in the field. It was also attended by other AMI Teacher Trainers
- Invite parents to further Montessori Journey and Discovery days
- Hold Refresher courses and Professional Development Days
- Support staff in their professional development
- Continue to roll out the MMI parental information sessions covering all age groups
- Implement a professional development training for those people interested in working in some capacity on the training courses. Roles will include album readers, lecturers and supervisors of the practical sessions
- Identify members of staff and others who may be eligible to apply for the AMI Training of Trainers Programme
- Four staff members continued with the AMI 3 6 training of trainers programme, one obtaining Auxiliary Trainer status; 1 member of staff continued with the AMI 0-3 Training of Trainers and 1 with the AMI 6-12 training of trainers programme; 3 staff members studied on the 6-12 Diploma course and one staff member is being supported by the organisation in undertaking a PhD in Educational Neuroscience
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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:**
- The move to online delivery of shorter courses and the need to move Diploma courses online during periods of lockdown has been facilitated by the installation of high-quality Audio-Visual equipment at the Training Centre
- Talks were given online at events in China, the USA and the Netherlands
- Louise Livingston is one of a cohort of AMI
- Louise Livingston will continue to work on the training courses in China and will be the faculty coordinator
- Staff will continue to work as examiners in AMI centres around the world
- Assistants Courses, Montessori for Dementia and Ageing courses and Professional Development workshops will continue to be offered online as well as in-person
- China
- Cheryl Ferreira is providing pedagogical support to the AMI Course in Sri Lanka
- Staff acted as AMI examiners in London and Greece
- Vikki Taylor delivered the final module of the AMI international Diploma course in Tanzania
- The online Observation Course was offered in translation to Chinese students
- Cheryl Ferreira will continue to provide pedagogical support to the AMI Course in Sri Lanka and hopes to commence training in Ethiopia
- Vikki Taylor will be involved in planning a second AMI International Diploma course in Tanzania
- An in-person Assistants course at the 3-6 level will be held in Birmingham
- The introduction of online training has meant that students from all over the world have participated in the Assistants Courses and Montessori for Dementia workshops
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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:**
- We have taken note of the Charity Commission guidance in relation to the Government Code issued in December 2020 on Equality, Diversity and Inclusion. These areas are integral to the ethos of all of our activities
- Made best use of the new Training Centre premises by running courses and workshops concurrently and by holding online courses
- The Early Years Educator Qualification awarded by Innovate Awarding has been successfully incorporated into the AMI 3-6 Diploma to allow Montessori Diploma holders to be counted in class ratios. A recent inspection by Innovate Awarding resulted in a glowing report
- The Communications and Marketing function was expanded in order to improve communication with existing and prospective parents and to market our school and courses
- We will continue to ensure that our commitment to the areas of Equality, Diversity and Inclusion continues to inform our strategic planning.
- We will support trainers in training as new courses can only be run by those holding the AMI Trainers Certificate (4 years study), under the present AMI regulations. We will continue to identify potential trainers at both 0 3 and 6 12 levels for the UK as well as additional
- lecturers at the 3 6 level
- We will continue to evolve the management structure to support the expanding activities of the Organisation. We will also continue to develop our plan to publicise the work of the Training Centre to potential students in the UK and EU and will seek ways to share our knowledge with the UK Montessori community
- We will implement technological solutions to enable courses to be offered in a variety of formats
- We will investigate the possibility of the AMI Diploma contributing qualification
- We will investigate the feasibility of incorporating Level 2 certification within our AMI Assistants Certificate courses and Level 3 certification within our 0-3 Diploma Course
_**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
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## **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.
15
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;
- Observe the methods and principles in the Charities SORP;
- Make judgments and estimates that are reasonable and prudent;
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business;
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
- The directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
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
16
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:
- give a true and fair view of t
- and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our 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
17
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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **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:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expr control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the a
- obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable y to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw te, to
- modify our opin future events or conditions may cause the charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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
18
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:
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of 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
19
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**|n**ot**e|||**2021**|**2020**|
|||**£**|**£**|**£**|**£**|
|**Income**||||||
|Income from charitable activiti**es:**||||||
|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.
20
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
21
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|
- **7 Directors and Employees**
||**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