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2022-12-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS

~~For the year ended 31 December 2022~~ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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Charity registration number: 314286

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

British & Foreign School Society

ESTABLISHED 1808 - INCORPORATED BY ROYAL CHARTER 1906 THE TWO HUNDRED AND SIXTEENTH REPORT

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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

British & Foreign School Society

PRESIDENT

Rt Hon David Lammy MP

VICE-PRESIDENT

Emeritus Professor John Furlong OBE

COUNCILLORS

Chair of Council

Peter Miller

Vice-Chair of Council

Professor Joy Palmer Cooper

Treasurer

David Baron

Anood Al-Samerai Jane Creasy Tim Andrew (until May 2022) Amy Barnecutt (from May 2022) Charlotte Cashman Vic Craggs OBE

Jane Creasy Karen Hughes (until May 2022) John Kanyaru (from May 2022) Janice Miller Leslie Stephen (until May 2022)

VOLUNTEER INVESTMENT ADVISER

Ian Richley

Director and principal offi ce address

Joanne Knight 7-14 Great Dover Street, London SE1 4YR

Website: bfss.org.uk Registered Charity No. 314286

The BFSS Council present their report along with the fi nancial statements of the British & Foreign School Society (BFSS) and the other charitable trusts for which BFSS is responsible, for the year ended 31 December 2022.

Contents

Message from our Chair 4
1. Our heritage that guides us 5
2. Embedding Inclusion, Diversity, Equity and Access 5
3. Our Strategy 6
4. Our work in 2022 6
5. Our grant giving 8
6. Our impact 12
7. Future plans 15
8. Structure, governance and management 16
9. Financial review 18
10. Independent Auditor’s Report to the
Trustees of The British & Foreign School Society 21
Statement of f nancial activities 24
Balance sheet 26
Cash Flow statement 27
Notes to the Financial Statements 28
Members of the Grants Committee 44
Members of the Finance and Investments Committee 44
Delegates of BFSS Restricted Funds 44
Trustees of the BFSS Trust 44
Trustees of the Old British School 44
Representatives serving on outside bodies 44
Professional Advisors 45

The fi nancial statements have been prepared in accordance with the accounting policies set out in the Notes to the Financial Statements and comply with the BFSS Charter and applicable law.

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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Message from our Chair

As I prepare to step down from the BFSS Council after 10 years as a Trustee and most recently as Chair, it is an opportunity to review activity in 2022, but also to refl ect on the progress of the charity during this period.

Grant-giving resulting in measurable outcomes lies at the core of our work at BFSS. Back in 2013 our annual grant giving was £471k but in 2022 amounted to £1.5 million as our managed assets have grown enabling us to spend more. Over the decade, the number of young people directly benefi tting from the support provided by BFSS has exceeded one million, with perhaps fi ve times as many indirect benefi ciaries including family members and the wider communities.

Throughout, our focus as a charity has remained constant, namely to support disadvantaged young people with educational opportunities to transform life chances.

We have retained an emphasis on providing help where education has been disrupted by natural disasters, by war and civil unrest. We have always encouraged applications to support the education of girls and young women and have a particular interest in teacher training programmes. About 70% of our funding has been awarded to projects in the least developed countries and in particular to sub-Saharan Africa and South Asia – this continues.

Recognising the legacy of our founder, Joseph Lancaster, who did so much to establish the UK education system in the early 19th century, we took a bold decision in 2019 to allocate about 30% of our annual grant-giving to UK projects, with a specifi c focus on projects dedicated to providing equality of opportunity to care experienced young people as well as young carers. During 2022 we implemented a new Displacement Education Fund to address the specifi c challenges children and young people who have been displaced by confl ict face in accessing quality education.

Over the 10 years we have worked hard to innovate and modernise the way in which the charity operates and as a result BFSS is recognised as a well-run and effective funding organisation. We hear this through feedback from our annual Grant Partner Workshop and Annual Conference, which continue to be highlights of the BFSS year.

None of these accomplishments would have been possible without the hard work and commitment of our small Staff team and the support of a committed and engaged Trustee Board. I want to thank them and say it’s been a privilege to be a part of this chapter of the life of BFSS.

The end of my term as a member of the BFSS Council coincides with the decision of our President, David Lammy MP to step down. David has been in this role for 10 years and has been a caring and highly supportive President and I would like to thank him on behalf of BFSS for all he has done.

In 2022 the BFSS Council made some far-reaching decisions about how to modernise BFSS and make it more relevant to current times whilst celebrating its illustrious heritage. This will be the work of the new Chair, Staff and BFSS Council who are committed to the continual renewal and evolution of BFSS to benefi t even more young people in the future.

Peter Miller

Chair of BFSS 2018 to 2023

1. Our heritage that guides us

The heritage that underpins BFSS remains important and relevant to our activities and decisions and is embedded in our charitable objects. The BFSS was formed in 1808 by Christian social reformers to carry on the work of Joseph Lancaster, a pioneer of school and teacher education. BFSS was then known as “The Society for Promoting the Royal British or Lancasterian System for the Education of the Poor”. It changed its name to The British & Foreign School Society in 1814, was granted a Royal Charter in 1906, and its Royal Charter, Statutes and Byelaws were most recently updated in 2014.

With such a long history, BFSS has necessarily adapted over the years, but our heritage continues to defi ne us and our priorities. Joseph Lancaster was a Quaker who became concerned that young people from lowincome communities were denied the opportunity of education in the late 18th century. As a result, he was involved in the founding of schools throughout the UK and in many overseas countries with tuition based on his monitorial system. The BFSS today continues that work through our grant funding by seeking to ensure young people from marginalised communities across the world have access to quality education. From 1870 BFSS focused on teacher training, and we continue to recognise the critical impact of teachers and make teacher training a priority area for funding.

Conserving our physical heritage continues to be important to us. Brunel University London maintains our extensive archives and makes sure they are accessible for research. The British Schools Museum in Hitchin is a key partner for BFSS as we recognise its importance in ensuring Joseph Lancaster’s work is visibly accessible for current and future generations to appreciate. The museum houses an 1837 Monitorial Schoolroom, the only one of its kind left in the world, three other historic classrooms, the Headmaster’s House and a collection of 47,000 objects.

2. Embedding Inclusion, Diversity, Equity & Access

Whilst remaining true to our heritage, we also feel it is important for BFSS to be led by current day principles. In 2022 we took a long hard look at ourselves through the lens of Inclusion, Diversity, Equity and Access (IDEA) and consequently spent time reviewing the language, images and storytelling within our work to ensure they comply with best practice. We have advertised for new Members to attract more diversity into the Membership and subsequently the Council. We have also made the bold decision to commence the process of changing our name to better refl ect the work we currently do. We recognise we still have much work to do in this area.

Photo courtesy of Child Hope: teaching fractions using Maths Mastery approach, Uganda

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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

3. Our Strategy

Our charitable objects are: “To advance education for the benefi t of the public in particular by providing educational opportunity for children and young people in the UK and overseas.” We adhere to these objects and achieve public benefi t through our grant giving activities to support the education of young people from low-income and marginalised communities worldwide. The Council has referred to the Charity Commission’s guidance on public benefi t when developing its vision, mission, values and objectives. We review these each year, and make sure they inform our decisions.

3.1. Vision

Educational opportunity for all.

3.2. Mission

We seek to achieve our vision by providing funding and support to UK-based charities for educational projects in the UK and throughout the world refl ecting our history and heritage.

3.3. Values

We believe in the right of children and young people to access high quality education as a driver for personal development, well-being, and equality of opportunity. Building on the heritage of our founder Joseph Lancaster, we value effective teaching and learning, and the sharing of good practice. We are committed to inclusivity, integrity, and to valuing and respecting others in everything we do.

3.4. Objectives

Following a review in 2022 our current strategy is based on 5 objectives:

  1. To award grants aimed at enabling young people to improve their own educational outcomes and life chances in the UK and Internationally.

  2. To support our Grant Partners and Members to build their own capacity and knowledge.

  3. To support broader social aims which have an impact on inclusive education and stay true to our heritage.

  4. To continually improve our adherence to good practice in all aspects of our grant giving and governance.

  5. To effectively use our resources.

4. Our work in 2022

In 2022 we topped all records by awarding new grants totalling over £1.5 million. We launched our new Displacement Education Fund to help alleviate the impact of confl ict on the education of refugees, asylum seekers and internally displaced people. The £1 million Fund was established in response to the continued plight of young people in Syria, Yemen, Afghanistan, Ukraine and many other parts of the world where communities are being displaced from their homes to seek safety. With a rolling application process the Fund had an excellent start in 2022 and is already enabling over 10,000 young people to continue their education by providing a safe space to learn, opportunities to learn in their own language, and the post-trauma support that they need in order to heal and thrive.

Our Main Fund continued to support projects to improve the educational outcomes and life chances of young carers or care experienced young people in the UK, and projects to improve the quality, sustainability, and access to education for young people within international marginalised and vulnerable communities.

In addition to grant-giving we made a concerted effort to increase shared learning opportunities by hosting our fi rst-ever hybrid conference for Members and Grant Partners on 13 May 2022 alongside our AGM. It was an inspirational day of presentations and discussions on how to build resilience into education in a post-covid world. At the conference we launched our new online Forum which allows Members and Grant partners to continue their discussions beyond the conference and provides a platform for advice to be sought on any topic, or news shared whenever the need arises throughout the year. In November we were thrilled our Grant Partners’ Workshop could return as an entirely face-to-face event for organisations with a current BFSS grant. The event focused on climate responsibility with delegates passionately sharing ideas and learning on how to work towards net zero.

Our year in numbers

Shared learning

Grant giving

Photo courtesy of HealthProm: primary education, Afghanistan

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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

5. Our grant giving

In 2022, 29 projects with a total value of £1,571,015 (2021: 31, £1,058,192) were awarded from our unrestricted income. This is our core grant giving activity and we have separate priorities for UK and International projects. We continue to adopt a grant funding approach that favours small-to-medium not-for-profi t organisations, with annual income less than £2.5 million, and UK state-funded educational establishments. Supporting high-quality projects in the UK is central to our heritage and future. It is our aim is for around 30% of our grants to support UK based projects.

5.1 UK grant giving

Since 2021 our core UK grant giving has focused on projects aiming to improve the educational outcomes or life chances of care experienced young people and young carers under the age of 25. Through these grants we aim to award fewer but larger grants up to £100,000 over fi ve years, compared to our international grants. With the introduction of our Displacement Education Fund in 2022 the UK criteria was expanded to include young people living in the UK who are refugees or asylum seekers, unaccompanied children or children of undocumented migrants. The expectation was that the Displacement Education Fund would support shorter projects meeting an urgent need with grants available for up to £60,000 over two years. Our UK grants accounted for 37% of the total value of new grants awarded from unrestricted income in 2022.

Aims of our UK grants

Improved educational outcomes - enabling care experienced young people and young carers to attend and engage in mainstream school life, improving their access to out of school support and increasing the number of education professionals able to understand their needs.

Improved life chances - enabling care experienced young people and young carers (aged 16-24) to access further education, employment or training opportunities and improving support for them to remain engaged with these opportunities.

Improved access to educational opportunity – new fund enabling displaced young people to learn in their own language, to access posttrauma support and receive support to access further education or training for employment.

5.2 International grant giving

To ensure that we deliver our mission internationally we fund projects that improve access and quality of education or the sustainability of educational projects, for young people under the age of 25, by offering grants of up to £60,000 over three years. We ensure that our grant giving delivers long-term improvement through the involvement of local communities, the capability and availability of teaching staff and fi t-for-purpose infrastructure. Wherever possible, we fund projects that also deliver benefi ts to the wider community and will be sustainable after our grant ends.

Aims of our International grants

Improved access to education – including increasing the number of educational opportunities, especially for girls and displaced young people, (including construction of classrooms or latrines), increasing the number of qualif i ed teachers trained in inclusive, non-discriminatory practices and improving community attitudes to educating children who are often excluded or overlooked.

Improved quality of education – including enhancing the quality of teaching and learning, improving access to extra-curricular support, increasing child friendly resources, and increasing access to aspirational vocational training opportunities including STEM and IT.

Improved sustainability of education projects – including encouraging educational projects with integrated community management or ownership, self-generating income and minimising their environmental impact.

Who we supported

----- Start of picture text -----
Early Childhood Development 4% Girls education exclusively 4%
1 International project: £56,357 2 International projects: £64,974
We received 211 stage one
and 65 stage two applications Young carers 8%
for our 2022 funding rounds. 2 UK projects: £120,114
We funded 29 projects giving
stage two applicants a 45%
success rate.
Displaced young people 33% £1,571,015 Young people with
5 UK projects: £189,957 additional needs 10%
6 International projects: £327,032 3 International projects: £159,815
Other vulnerable young people 25% Care experienced young people 17%
7 International projects: £386,572 3 UK projects: £266,194
----- End of picture text -----

----- Start of picture text -----
Other vulnerable young people 25%
7 International projects: £386,572
----- End of picture text -----

Photo courtesy of Radwinter Primary: school library provision for SEND

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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Where our grants went

----- Start of picture text -----
Greece 2% Wales 6% Scotland 11% England 20%
1 project £27,960 1 project: £87,591 2 projects £178,603 7 projects: £310,071
----- End of picture text -----

----- Start of picture text -----
£1,571,015
awarded globally
Nepal 6%
2 projects £89,454
Jordan & Lebanon 8%
2 projects: £119,158
Bangladesh 4%
1 project: £60,000
Sierra Leone 8%
2 projects: £118,278
India 4%
1 project £60,000
29 projects
in 16 countries
Africa 41%
Southern
13%
Asia Uganda 8% Tanzania 1% Madagascar 4%
Middle 8% 2 projects: £119,969 1 project: £15,933 1 project: £60,000
East
Europe 2%
(excluding UK)
UK 37%
Ghana 4% Malawi 4% Kenya 13%
1 project: £60,000 1 project: £56,357 4 projects £207,641
----- End of picture text -----

5.3 Subsidiary trusts

In addition to the grants awarded from our unrestricted income BFSS is responsible for a number of smaller subsidiary trusts which provide restricted funds for educational activities in specifi c locations and for particular purposes. In 2022, £36,000 was awarded though 10 grants (2021: 12, £55,585) from restricted income. Our approach is to work with partners with the experience and local knowledge to make sure grant-giving is effective and meets the individual requirements of each fund. We are currently working with the following:

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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

6. Our impact

Impact:

Teachers have reported how quickly the children have progressed in Maths and English and how much they are loving the digital lessons. Parents are particularly enthusiastic since the introduction of the Myanmar curriculum and the implications they feel it spells for a future return home.

The projects we fund improve educational opportunity for children in some of the most marginalised or lowincome communities, transforming young people’s life chances, as these reports show.

Helping Rohingya refugees in Bangladesh

Children on the Edge have established a digital approach to educating young refugees, providing support to Rohingya children with quality education in a language they can understand. In summer 2022, BFSS gave the charity £60,000 for a two-year project to provide primary education for Rohingya refugees on Bhasan Char Island, where there are no government schools.

The programme is also tackling the tendency for girls to be withdrawn from education after the age of 12, by organising regular meetings with parents, support group members and the Imam, and have seen some progress.

More than 580 children have been taught in model classrooms where they enjoy a friendly learning environment, with group discussions and digital lessons, arts and sports. Their heritage is celebrated and 60 children entered a recent drawing competition to create pictures of rivers, villages, schools and landscapes from Myanmar.

“ We have the opportunity to play sports at our school and we feel wonderful and want to come to school every day.”

Sominara, student

“ We have seen the improvement in our children in education, behaviour, speaking and intelligence.”

Mohammed Habibullah, parent

Photo courtesy of Children on the Edge: Rohingya refugees engaged in lessons, Bangladesh

Raising aspirations for care experienced young people

Impact:

By the end of the pilot, 71% of teachers were at least ‘somewhat aware’ of care experience. 100% of teachers said the programme generated discussion among pupils about their aspirations; that care experienced Student Ambassadors added value; and pupils benefi tted from visits to campuses.

Hub For Success ran a project training teachers and educators in Edinburgh to support care experienced young people, which proved so successful we have funded further work to scale-up the project. Through it, education and teaching staff have transformed the way that they think of themselves, from educators to being an active part of the care system for young people.

BFSS funded Hub for Success with £45,000 for a oneyear pilot project which also gave tailored support to young people in six schools in Edinburgh; and promoted peer to peer learning and support. It focused on 295 children in their fi nal year of primary school, and aimed to raise aspirations and convey the message that college and university are for everyone.

Based on their successful pilot, Hub for Success have upscaled their approach to work with 91 new schools across Edinburgh.

The project explored the children’s transition to secondary school and the new subjects on offer there; considered their talents and interests, linking them to courses and careers; and helped them consider the adults who could support them. Care experienced Student Ambassadors shared their own learning journey, and children visited campuses to demystify and embed what they had learned.

“ The care experienced pupils in my class feel confi dent that HE is for them now.”

Teacher, Dean Park Primary School

Photo courtesy of Hub for Success: children enjoy campus visits, UK

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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Tackling chronically low literacy in Malawi

Impact:

In December, 264 learners took part in local spelling bee competitions to encourage greater community interest in the educational activities available. 80% of the participants demonstrated brilliant progress. The number of library visits have also greatly increased. 93% of children attending Reading Camps passed their end of year exams last year.

Temwa Community Literacy is a three-year project which began in 2020 and runs in Malawi, where one in three adults are illiterate and only 7% of women have completed primary education. BFSS gave Temwa a grant of £19,816 for the project, which aims to provide opportunities for children and the wider community to improve their reading and writing skills through reading camps, community awareness activities and improved library services.

By autumn 2022, Temwa supported 22 Reading Camps attended by 1,600 primary school-aged learners, far exceeding the project’s target of 1,000. There are also three Village Reading Groups providing literacy and broader mentoring support to young women. A group of 48 voluntary mentors have been fundamental to the project’s success. Training for mentors focused on skills for effective reading instruction, helping learners develop confi dence and using educational games to engage learners.

Temwa has engaged with governors in schools to help embed their work. As a result, 80% of the schools they work with have adopted initiatives aimed at improving retention and enrolment rates in their schools.

“ I am now able to read and write since I started attending Reading Camp sessions, which I could not have achieved as quickly otherwise.”

Tabitha Manda, pupil

Samuel Kamanga, Reading Camp Mentor

Photo courtesy of Temwa: spelling bee competition, Malawi

7. Future plans

In 2023 we have the exciting task of supporting our new President and Chair to settle into their respective roles. We will commence the implementation of our revised 5-year strategic plan (see section 3) and the key priorities for the year will include:

Objective 1:

Objective 2:

Objective 3:

Objective 4:

Objective 5:

Photo courtesy of Signpost International: pupils study in Uganda

8. Structure, governance and management

8.1 Membership

BFSS Members are generally drawn from our past and present activities in education, teacher training, and charity organisations. The statutory role of Members is to elect the Councillors who act as Trustees of the charity at the AGM. During 2022 and early 2023, 21 new Members joined bringing the total number of Members to 151 by 1 February 2023 when our Trustee election process for 2023 started. The 2021 Annual General Meeting (AGM) was held as a hybrid event on 13 May 2022, chaired by our President, the Rt. Hon. David Lammy MP, and attended by 48 Members.

8.2 Governance and structure

BFSS has a President and Vice-President who are elected by the Membership for a period of three years. In May 2021 the Rt Hon David Lammy MP was re-elected President and Professor John Furlong was re-elected Vice-President both for a term of 3 years. BFSS is governed by a Council of Trustees drawn from and elected by Members. The Council currently has 10 members, but the aim is to increase it to 12 over the next 2 years. The minimum number is 6. BFSS has an induction procedure for new Trustees. They are provided with relevant information on their role and responsibilities and are briefed by the Chairman. All Trustees are kept informed of the impact of BFSS through reports on funded projects. The Council annually reviews the work of individual Trustees and its sub-committees. The Director’s remuneration is set by a process which includes a review of performance against objectives by the Remuneration Committee which then makes a recommendation for approval to the Council.

In 2022 Council Meetings were held in March, June and November, with the annual strategy meeting in June 2022. There are two subsidiary committees, the Grants Committee and the Finance and Investments Committee, both of which meet at least twice a year and report to the Council.

The BFSS has a series of policies and terms of reference, which are subject to a regular review schedule to ensure they are up to date and fi t for purpose.

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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

8. Structure, governance and management

8.1 Membership

BFSS Members are generally drawn from our past and present activities in education, teacher training, and charity organisations. The statutory role of Members is to elect the Councillors who act as Trustees of the charity at the AGM. During 2022 and early 2023, 21 new Members joined bringing the total number of Members to 151 by 1 February 2023 when our Trustee election process for 2023 started. The 2021 Annual General Meeting (AGM) was held as a hybrid event on 13 May 2022, chaired by our President, the Rt. Hon. David Lammy MP, and attended by 48 Members.

8.2 Governance and structure

BFSS has a President and Vice-President who are elected by the Membership for a period of three years. In May 2021 the Rt Hon David Lammy MP was re-elected President and Professor John Furlong was re-elected Vice-President both for a term of 3 years. BFSS is governed by a Council of Trustees drawn from and elected by Members. The Council currently has 10 members, but the aim is to increase it to 12 over the next 2 years. The minimum number is 6.

BFSS has an induction procedure for new Trustees. They are provided with relevant information on their role and responsibilities and are briefed by the Chairman. All Trustees are kept informed of the impact of BFSS through reports on funded projects. The Council annually reviews the work of individual Trustees and its sub-committees.

The Director’s remuneration is set by a process which includes a review of performance against objectives by the Remuneration Committee which then makes a recommendation for approval to the Council.

In 2022 Council Meetings were held in March, June and November, with the annual strategy meeting in June 2022. There are two subsidiary committees, the Grants Committee and the Finance and Investments Committee, both of which meet at least twice a year and report to the Council.

The BFSS has a series of policies and terms of reference, which are subject to a regular review schedule to ensure they are up to date and fi t for purpose.

Photo courtesy of Raising Futures: new school toilet block, Kenya

8.3 Robust and effective grant-giving

BFSS makes grants in accordance with its Charter and within the fi nancial limits set by Council each year. Its grant-giving is project-driven and supports a broad range of projects in the UK and Internationally. The criteria for grant giving are available on the BFSS website. We operate an online grant application system, for our core grants this involves a 2-stage application process to minimise the time applicants spend preparing their initial proposals.

The Grants Manager conducts an initial assessment of all stage one grant applications and invites the project proposals which meet the criteria and are of the highest quality to submit a stage two application. Following a detailed review of stage two applications in consultation with the Chair of the Grants Committee, applications which are considered suitable are selected for review by the Grants Committee with an individual Trustee taking the lead on each application. Applications for the subsidiary trusts are referred to the appropriate committee for review.

The Trustees make decisions according to the criteria set out in the BFSS Grant Giving and Management policy, in line with our objectives. Recommendations from the Grants Committee and from the relevant committee for the subsidiary trusts are reported to the full Council.

We have a structured process to ensure rigorous evaluation of the impact of our grants, and we hold grant recipients accountable for delivering the outputs and outcomes to which they have committed. Every grant application is required to specify three or four main outcomes, and every project must have a well-defi ned plan for monitoring and evaluation. The reporting process is linked to the release of funds, to ensure we always retain the right to withhold or vary grants where projects are struggling to meet their outcomes. Grant recipients are required to submit progress reports annually for grants up to £10,000 per year and 6-monthly for larger grants in addition to the end of project report. Each progress report is reviewed by the Director or Grants Manager before releasing further funding. When a project is not delivered to plan, a triage system is in place to determine whether the Director, Chairman of the Grants Committee or the Grants Committee should make the decision on the future of the grant.

BFSS places great emphasis on ensuring that improved educational outcomes for our benefi ciaries are clearly identifi ed. Construction projects are required to provide an additional report one year after the formal completion of the construction project, to give time for impacts to emerge.

Grants awarded from the subsidiary trusts for which BFSS is responsible provide small grants to individuals and to organisations. Given the size of these grants (usually less than £5,000) the application process is deliberately kept very simple with a one stage application form which is reviewed by the Director, or by a local committee in the case of the British School Charity. These trusts are detailed in Note 12 to the Financial Statements.

Photo courtesy of Mwezi Foundation: solar lights to aid home learning

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ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. Financial review

9.1 Reserves policy

The entire General Reserve (£23,045,235) at 31 December 2022, (2021: £27,553,849) is an unrestricted fund which would be available to meet unexpected costs of the charity. The Trustees do not therefore feel it appropriate to specify a minimum level for free reserves.

In addition to the General Reserve, at 31 December 2022 BFSS held revaluation reserves of £175,000 (2021: £160,000) derived from the fair value of the George Dent Nursery, endowment funds of £1,269,286 (2021: £1,307,334) and restricted funds of £382,219 (2021: £545,809). At 31 December 2022, the total funds of the BFSS stood at £24,870,742 (2021: £29,566,992).

9.2 Risk Management Policy

BFSS maintains an active risk register which encompasses all areas of our activities. This risk register is reviewed, together with risk mitigation decisions and actions made, on an ongoing basis by the BFSS Council. Other principal risks identifi ed by Trustees were those associated ensuring robust succession planning, ensuring policies are up to date and compliant with relevant regulations, particularly with regard to safeguarding, and ensuring that our investment policy continues to maximise income to support the delivery of our objects in a time of change.

9.3 Pension Policy

BFSS continues to operate a pension scheme for its employees, providing an employer’s contribution of 8% of qualifying earnings. Monthly pension contributions are paid to the provider by direct debit.

9.4 Financial results

Grants paid during 2022 amounted to £1,046,568 (2021: £876,194). This represents a 19% increase on the previous year, as many of the projects that were still paused following the covid pandemic were able to progress during 2022. Subsequently the net expenditure of £657,290 (2021: £492,580) is a 33% increase on the previous year refl ecting the increase in grant payments. Investment income reduced by 15% and there was a net loss on investments of £4,053,960 compared to a net gain of £3,139,001 in the previous year. The BFSS Investment Policy states that the Trustees will normally draw between £1m and £1.25m each year, which means that there is an expectation that the grant giving programme will be partly funded by investment income and partly by capital gains on those investments.

BFSS receives income from its investments and does not engage in public fundraising activities. As a result the charity does not employ or monitor a fundraiser or a fundraising agent. No fundraising complaints were received with regards to fundraising, and the charity is not subject to an undertaking to be bound by any voluntary scheme for regulating fundraising, or any voluntary standard of fundraising

Environmental, Social and Governance (ESG) risks. The investment manager provides regular reports showing the ESG risk rating for its investments and the objective is to see this score reduce each year.

9.5 Income

BFSS’ main source of income is its investment portfolio. Its investment policy is for the portfolio, consisting principally of equities and fi xed interest stocks, to be managed on a total return basis to produce a regular income stream while maintaining its capital base in real terms. The performance target for the portfolio, which is managed by Investec Wealth & Investment Limited, is a real return (after taking account of headline CPI or zero, whichever is greater, and investment management fees) of at least 4% on a rolling three-year basis. The BFSS Investment Policy does not permit investment directly in companies that have more than 10% of their business relating to either: the production or sale of tobacco products, the promotion of gambling in any form, the production or sale of weapons or armaments, or the production, distribution and retail of pornographic media. In addition, investment is prohibited in companies with evidence of human rights abuses in the supply chain, both direct and indirect, including the use of child labour. Investec are also required to review its direct investment holdings to determine the degree of

At the end of December 2022 the value of the investment portfolio was £24,654,134 (2021: £29,329,745), which represented an actual total return net loss after fees for the year of -12.44%, which equates to -22.97% after taking into account CPI of 10.53%. The total cumulative return of the Fund for the three years was -14.51% net of investment management fees and after taking into account CPI of 17.17%.

9.6 Property

The George Dent Nursery School in Darlington continues to be held by BFSS as an investment property and is leased to Darlington Local Education Authority. The property is valued at 10 times rental value and as the annual rent receivable increased to £17,500, with effect from 25 December 2022 the value of the investment property has increased to £175,000, resulting in a revaluation surplus of £15,000 in the year (2021: nil).

During the year the BFSS withdrew £1,080,000 (2021: £1,012,000) to support its grant-giving activities and running costs. This amounted to approximately 4.4% of the value of the portfolio on 31 December 2022. Overall income amounted to £679,665, in comparison to £649,678 in the previous year, of which £535,050 (2021: £629,262) was from investments.

Photo courtesy of Signpost International: Lomokori primary school, Uganda

BRITISH & FOREIGN SCHOOL SOCIETY

18

19

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9.7 General expenditure other than grants

The expenditure on support and governance costs during the year was £196,912 (2021: £155,755 and amounted to 14.7%, (2021: 13.6%) of total expenditure including grants. The increase in the percentage was predominantly due to the increase in staffi ng and offi ce costs as well as professional fees and the increased cost of meetings in person rather than virtual meetings. Five part-time staff, equivalent to 2.4 full-time staff were employed during the year.

9.8 Responsibilities of the Council in relation to the fi nancial statements

The BFSS Council is responsible for preparing the Trustees’ annual report and fi nancial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare fi nancial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing the fi nancial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the fi nancial position of the charity and to enable them to ensure that the fi nancial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations, and the provisions of the Charter.

They are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and fi nancial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of fi nancial statements.

Each of the Trustees has confi rmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confi rmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Peter Miller

Chair of BFSS

Dated: 29 March 2023

In our opinion, the fi nancial statements:

10. Independent Auditor’s Report to the Trustees of The British & Foreign School Society

10.1 Opinion

We have audited the fi nancial statements of The British & Foreign School Society (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of fi nancial activities, the balance sheet and the notes to the fi nancial statements, including a summary of signifi cant accounting policies. The fi nancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

10.2 Basis for opinion

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

Photo courtesy of Signpost International: pupils study in Uganda

20

21

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10.3 Conclusions relating to going concern

In auditing the fi nancial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the fi nancial statements is appropriate.

Based on the work we have performed, we have not identifi ed any material uncertainties relating to events or conditions that, individually or collectively, may cast signifi cant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the fi nancial 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.

10.4 Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the fi nancial statements and our auditor’s report thereon. Our opinion on the fi nancial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the fi nancial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the fi nancial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the fi nancial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

10.5 Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

10.6 Responsibilities of Trustees

As explained more fully in the statement of Trustees’ responsibilities, the Trustees are responsible for the preparation of the fi nancial statements and for being satisfi ed that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

In preparing the fi nancial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so.

10.7 Auditor’s responsibilities for the audit of the fi nancial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

10.8 Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance 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:

Our audit procedures were designed to respond to risks of material misstatement in the fi nancial statements, recognising that 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, misrepresentations or through collusion.

There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions refl ected in the fi nancial statements, the less likely we are to become aware of it.

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

10.9 Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Begbies 9 Bonhill Street

Chartered Accountants London

Statutory Auditors EC2A 4DJ

April 2023

Begbies is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

22

23

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF FINANCIAL ACTIVITIES

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

Note
INCOME
Donations and legacies
Investment income
Rents receivable
5a
Investment income
7b
Interest receivable
Permanent endowment transfer to income
11,12
Total income
EXPENDITURE
Expenditure on raising funds
Investment managers fees
7a
Property expenditure
Expenditure on charitable activities
Grants and costs
3
Total expenditure
Net expenditure and net movement
in funds before net gains on investments
Gross transfers between funds
Expendable endowment transfer between funds
11,12
Sarah Walker Spafford transfer for unspent income
BFSS Trust transfer to permanent endowments
Management charges to restricted funds
11
Net expenditure before
other recognised gains and losses
Other recognised gains and losses
Revaluation surplus re investment property
5
Net (losses)/gains on investments
7a
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Endowment
Total Funds
Total Funds
Funds
Funds
Funds
2022
2021
£
£
£
£
£
378
124,973
-
125,351
3,607
16,000
-
-
16,000
16,000
513,058
9,295
12,697
535,050
629,262
3,145
50
69
3,264
808
3,525
21,835
(25,360)
-
1
536,106
156,153
(12,594)
679,665
649,678
85,486
758
4,681
90,925
110,309
2,550
-
-
2,550
-
1,164,808
78,672
-
1,243,480
1,031,949
1,252,844
79,430
4,681
1,336,955
1,142,258
(716,738)
76,723
(17,275)
(657,290)
(492,580)
9,930
4,799
(14,729)
-
-
2,500
(2,500)
-
-
-
-
(202,667)
202,667
-
-
7,175
(7,175)
-
-
-
(697,133)
(130,820)
170,663
(657,290)
(492,580)
15,000
-
-
15,000
-
(3,811,482)
(33,770)
(208,709)
(4,053,961)
3,139,001
(4,493,615)
(164,590)
(38,046)
(4,696,251)
2,646,421
27,713,849
545,809
1,307,334
29,566,992
26,920,571
23,220,234
381,219
1,269,288
24,870,741
29,566,992

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
INCOME
Donations and legacies
Investment income
Rents receivable
5a
Investment income
7b
Interest receivable
Permanent endowment transfer to income
11,12
Total income
EXPENDITURE
Expenditure on raising funds
Investment managers fees
7a
Property expenditure
Expenditure on charitable activities
Grants and costs
3
Total expenditure
Net expenditure and net movement
in funds before net gains on investments
Gross transfers between funds
Expendable endowment transfer between funds
11,12
Management charges to restricted funds
11
Net expenditure before
other recognised gains and losses
Other recognised gains and losses
Net gains on investments
7a
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Endowment
Total Funds
Funds
Funds
Funds
2021
£
£
£
£
3,607
-
-
3,607
16,000
-
-
16,000
603,398
15,280
10,584
629,262
776
19
13
808
3,418
14,011
(17,428)
1
627,199
29,310
(6,831)
649,678
103,711
1,681
4,917
110,309
-
-
-
-
945,255
86,694
-
1,031,949
1,048,966
88,375
4,917
1,142,258
(421,767)
(59,065)
(11,748)
(492,580)
7,598
3,672
(11,270)
-
5,888
(5,888)
-
-
(408,281)
(61,281)
(23,018)
(492,580)
2,951,248
47,838
139,915
3,139,001
2,542,967
(13,443)
116,897
2,646,421
25,170,882
559,252
1,190,437
26,920,571
27,713,849
545,809
1,307,334
29,566,992

The notes numbered 1 to 14 form part of these fi nancial statements. All amounts relate to continuing activities.

The notes numbered 1 to 14 form part of these fi nancial statements. All amounts relate to continuing activities.

24

25

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

BALANCE SHEET

AT 31 DECEMBER 2022

Note
FIXED ASSETS
Tangible f xed assets
5
Investment properties
5
Investment assets
6,7
CURRENT ASSETS
Debtors and prepayments
8
Cash at bank and in hand
LIABILITIES
Creditors: amounts falling due within one year
9
NET CURRENT ASSETS
NET ASSETS
REPRESENTED BY:
CAPITAL ACCOUNT
Unrestricted funds
General reserve
Revaluation reserve
Restricted funds
11
Endowment funds
12
TOTAL CHARITY FUNDS		 £
3,223
132,060		 2022
£
2,649
175,000
24,654,134		 £

2,519
176,739		 2021
£
2,204
160,000
29,329,745
24,831,783
38,958		 29,491,949
75,043
135,283
(96,325)		 179,258
(104,215)
24,870,741 29,566,992
23,045,234
175,000		 27,553,849
160,000
23,220,234
381,219
1,269,288		 27,713,849
545,809
1,307,334
24,870,741 29,566,992

The notes numbered 1 to 14 form part of these fi nancial statements.

Approved by the Council and authorised for issue on and signed on its behalf by

Peter Miller - Chair

David Baron - Treasurer

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2022
See Note Below
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by (used in) operating activities
1
Cash f ows from investing activities:
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
2
Cash and cash equivalents at the
end of the reporting period
NOTE 1: Reconciliation of net income (expenditure)
to net cash f ow from operating activities
Net income (expenditure) for the reporting period
(as per the statement of f nancial activities)
Adjustments for:
Depreciation charges
Revaluation Surplus on Investment Property
Unrealised (gains)/losses on investments
Realised (gains)/losses on investments
Dividends, interest and rents from investments
Non-cash investment income
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by (used in) operating activities
NOTE 2: Analysis of cash and cash equivalents
Cash in hand
Un-invested cash
Total cash and cash equivalents
NOTE 3: Reconciliation of net debt
At the beginning of the reporting period
Cashf ows
At the end of the reporting period		 2022
2021
£
£
(1,201,920)
(1,177,977)
554,315
646,071
(2,940)
-
11,694,990
8,396,812
(11,175,094)
(7,918,669)
1,071,271
1,124,213
(130,649)
(53,764)
445,532
499,296
314,883
445,532
2022
2021
£
£
(4,696,251)
2,646,421
2,495
2,320
(15,000)
-
3,186,897
(2,633,515)
885,767
(505,486)
(554,315)
(646,071)
(2,919)
2,946
(704)
677
(7,890)
(45,270)
(1,201,920)
(1,177,977)
2022
2021
£
£
132,060
176,739
182,823
268,793
314,883
445,532
2022
2021
£
£
Cash in
hand
Un-invested
cash
176,739
268,793
(44,679)
(85,970)
132,060
182,823

26

27

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2022

1. ACCOUNTING POLICIES

a) Basis of preparation

The British and Foreign Society is an unincorporated charity registered in England and Wales, registered charity number 314286. The registered offi ce is 7-14 Great Dover Street, London SE1 4YR. The objectives and activities are as noted in the Annual Report.

The fi nancial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note to these fi nancial statements. The fi nancial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)) and the Charities Act 2011. The accounts are prepared in £ being the functional currency of the charity and round to the nearest £.

The British & Foreign School Society meets the defi nition of a public benefi t entity under FRS 102. The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern because BFSS has over £24.6m of investments which is more than suffi cient to cover at least 12 months of expenditure.

The most signifi cant area of adjustment and key assumption that affects items in the fi nancial statement relates to estimating the fair value of the investment property (see note 1(c) below).

g) Investment income

Investment income and any related income tax recoverable are included in the fi nancial statements in the year in which they are receivable.

h) Rental income

Rental income is normally credited in the fi nancial statements in the year to which it relates. All rental income is attributable to unrestricted funds.

i) Expenditure

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. Expenditure is included in the statement of fi nancial activities on an accruals basis and includes irrecoverable VAT.

j) Charitable activities

Charitable activities include grants by BFSS and the associated support costs. Grants are accounted for in the year in which the commitment is given, all relevant conditions having been fulfi lled.

k) Support and governance costs

b) Fixed assets

Fixed assets, with the exception of investment properties, are included at cost and are depreciated on a straight line basis over their useful lives at the following rates:

· Furniture and equipment 33%

Support costs represent the cost of administering the affairs and managing and maintaining the assets of BFSS and of the other trust funds administered by BFSS.

Governance costs comprise all costs relating to the public accountability of BFSS and its compliance with regulation and good practice. These costs include the cost of Council meetings together with statutory audit fees.

· Computer equipment 25%

l) Fund accounting

c) Investment properties

Investment properties are included in the fi nancial statements at fair value. The Council has formerly valued the one remaining freehold property, the George Dent Nursery in Darlington, on the basis of ten times the annual rental income. The historic cost of the property is £1 (2021: £1).

d) Investment assets

Investments are a form of basic fi nancial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market price. The Statement of Financial Activities includes the net gains and losses arising on the revaluation and disposals throughout the year. BFSS does not acquire put options, derivatives or other complex

e) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequently to the fi rst day of the fi nancial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

f) Donations and similar incoming resources

Donations and similar incoming resources are included in the fi nancial statements in the year in which they are receivable. All donations and legacy income is attributable to unrestricted funds.

Trust funds that are the responsibility of BFSS are included in these accounts as restricted and endowment funds and details of the nature and purpose of each fund is set out in notes 11 to 12.

m) Leases

Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

n) Financial instruments

BFSS only has fi nancial assets and fi nancial liabilities of a kind that qualify as basic fi nancial instruments. Basic fi nancial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

o) Debtors

Debtors are amounts owed to BFSS. They are measured on the basis of their recoverable amount.

p) Cash and cash equivalents

Cash at bank is held to meet the day to day running costs of BFSS as they fall due. Cash equivalents are short term, highly liquid investments.

q) Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of the past event, it is probable that a transfer of economic benefi t will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that BFSS anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

28

29

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2. CHARITABLE EXPENDITURE - GRANTS

International projects
A Partner in Education
AbleChildAfrica
Advantage Africa
African Adventures Foundation
African Revival
AfriKids UK
Amala Education
Asecondchance
Carers Worldwide - new application
Carers Worldwide - reversed
Challenge Aid
Chance for Childhood
Child Rescue Nepal
ChildHope UK
Children on the Edge
Consortium for Street Children (previously
StreetInvest)
Diapalante
Disability and Development Partners (DDP)
EduKaid
Entraide (Mutual Aid)
Feed the Minds
Fields of Life
Hands Up Foundation
Healthprom
inhive
Irise International
Joshua Orphan and Community Care
Kidasha
Kyaninga CDC Trust
Learning for Life
Lyra in Africa
Made With Hope
Mobile Education Partnerships (MEP)
Mondo Foundation
Money for Madagascar
Pamoja Leo
Practical Tools Initiative
Prism the Gift Fund: Refugee Youth Service
Collective Fund
Raising Futures Kenya
Redearth Education
Rwanda Action
Sabre Education
Seenaryo
Sense International
Signpost International
Standing Voice
Sub Saharan Advisory Panel
Teach A Man To Fish
Teach2Teach International
Team Kenya
Temwa
The Mwezi Foundation
Toybox
Transform Africa
Tushinde Children's Trust
Women’s Education Partnership		 Unrestricted
Restricted
Total
Funds
Funds
2022
£
£
£
18,585
-
18,585
29,924
-
29,924
8,704
-
8,704
3,301
-
3,301
12,792
-
12,792
12,925
-
12,925
11,025
-
11,025
-
-
-
23,548
-
23,548
-
-
-
-
-
-
30,000
-
30,000
14,976
-
14,976
18,743
-
18,743
-
15,000
15,000
27,164
-
27,164
6,323
-
6,323
15,415
-
15,415
15,765
-
15,765
10,000
-
10,000
14,699
-
14,699
23,944
-
23,944
15,000
-
15,000
9,845
-
9,845
7,294
-
7,294
38,000
-
38,000
15,610
-
15,610
10,740
-
10,740
18,669
-
18,669
13,017
-
13,017
19,241
-
19,241
-
15,933
15,933
8,876
-
8,876
12,104
-
12,104
5,062
-
5,062
7,041
-
7,041
-
-
-
7,140
-
7,140
11,427
-
11,427
20,574
-
20,574
16,250
-
16,250
14,860
-
14,860
14,990
-
14,990
19,972
-
19,972
11,222
-
11,222
4,096
-
4,096
15,000
-
15,000
-
-
-
16,900
-
16,900
13,538
-
13,538
-
6,543
6,543
-
5,001
5,001
20,000
-
20,000
-
-
-
9,951
-
9,951
23,384
-
23,384
697,636
42,477
740,113		 Unrestricted
Restricted
Total
Funds
Funds
2021
£
£
£
26,977
-
26,977
14,920
-
14,920
10,000
-
10,000
13,776
-
13,776
14,832
-
14,832
-
-
-
21,500
-
21,500
19,050
-
19,050
12,455
-
12,455
(11,575)
-
(11,575)
4,644
-
4,644
15,000
-
15,000
13,741
-
13,741
9,996
-
9,996
10,000
-
10,000
19,239
-
19,239
6,328
-
6,328
19,742
-
19,742
19,065
-
19,065
20,000
-
20,000
-
-
-
8,953
-
8,953
-
-
-
19,945
-
19,945
9,180
-
9,180
35,000
-
35,000
-
-
-
10,740
-
10,740
29,843
-
29,843
10,900
-
10,900
12,979
-
12,979
-
-
-
6,263
-
6,263
-
-
-
4,058
-
4,058
10,000
-
10,000
10,000
-
10,000
-
-
-
2,076
-
2,076
20,702
-
20,702
11,600
-
11,600
14,861
-
14,861
-
-
-
9,965
-
9,965
18,761
-
18,761
15,990
-
15,990
-
-
-
14,980
-
14,980
28,721
-
28,721
-
-
-
10,000
5,103
15,103
-
5,002
5,002
12,398
-
12,398
-
19,400
19,400
-
-
-
-
-
-
587,605
29,505
617,110

FOR THE YEAR ENDED 31 DECEMBER 2022

2. CHARITABLE EXPENDITURE - GRANTS

NOTE 2 CONTINUED
UK projects
Academy Transformation Trust
Afghanistan and Central Asian Association
Asylum Welcome
Carefree Fostering Ind. Cornwall
Carers Trust Hillingdon
Children and Families Across Borders (CFAB)
Finding Rhythms
Hatf eld Primary Academy - Astrea Academy Trust
HUB for SUCCESS through Edinburgh Napier
University
Hull FC Rugby Community Sports & Education
Foundation
Jericho Foundation
Kinship Care N Ireland
Northants Music & Performing Arts Trust
Parents and Children Together (PACT)
Passion for Learning CIO
Refugee Education UK
Royal Caledonian Education Trust
Sheff eld Young Carers
SIEVEMK Gateway
Sistema Cymru
The Why Not? Trust for Care Experienced
Young People
Voices from Care Cymru
Volunteer Tutors Organisation
YMCA Sutton Coldf eld
Grants from restricted funds to organisations
Ashdon Primary School
Auckland Youth & Community Centre
Food Teachers Centre
Joanna Eden Outreach CIC
Katherine Semar Junior School
London South Bank University
R A Butler Academy School
Radwinter C of E Primary School
Saffron Hall Trust
Saffron Walden County High School
Saffron Walden Playgroup
The Friends of Great Chesterford Primary Academy
Theatre Unboxed
Wiltshire Community Foundation
Total organisational grants
Grants from restricted funds to individuals
Total individual grants
Total grants
Less: Grants returned during the year		 Unrestricted
Restricted
Total
Funds
Funds
2022
£
£
£
8,716
-
8,716
14,198
-
14,198
12,454
-
12,454
-
-
-
15,000
-
15,000
15,000
-
15,000
7,250
-
7,250
13,700
-
13,700
15,000
-
15,000
15,710
15,710
9,975
-
9,975
-
-
-
-
-
-
-
-
-
10,000
-
10,000
10,684
-
10,684
8,019
-
8,019
13,877
-
13,877
17,257
-
17,257
-
-
-
14,705
-
14,705
14,570
-
14,570
28,743
-
28,743
28,594
-
28,594
273,452
-
273,452
-
500
500
-
2,500
2,500
-
2,000
2,000
-
-
-
-
-
-
-
-
-
-
5,000
5,000
-
-
-
-
5,000
5,000
-
5,000
5,000
-
1,000
1,000
-
-
-
-
-
-
-
14,000
14,000
-
35,000
35,000
971,088
77,477
1,048,565
-
1,000
1,000
-
1,000
1,000
971,088
78,477
1,049,565
(2,997)
-
(2,997)
968,091
78,477
1,046,568		 Unrestricted
Restricted
Total
Funds
Funds
2021
£
£
£
-
-
-
-
-
-
-
-
-
30,588
-
30,588
-
-
-
-
-
-
-
-
-
6,850
-
6,850
22,500
-
22,500
-
-
-
-
-
-
5,700
-
5,700
6,000
-
6,000
11,231
-
11,231
-
-
-
-
10,685
10,685
15,000
-
15,000
28,269
28,269
9,995
-
9,995
7,240
-
7,240
-
-
-
-
-
-
28,581
-
28,581
29,941
-
29,941
201,895
10,685
212,580
-
-
-
-
5,000
5,000
-
3,500
3,500
-
4,870
4,870
-
1,694
1,694
-
8,000
8,000
-
-
-
-
4,771
4,771
-
-
-
-
4,750
4,750
-
-
-
-
5,000
5,000
-
1,000
1,000
-
16,000
16,000
-
54,585
54,585
789,500
94,775
884,275
-
1,000
1,000
-
1,000
1,000
789,500
95,775
885,275
-
(9,081)
(9,081)
789,500
86,694
876,194

30

31

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

3. CHARITABLE EXPENDITURE
Grants(see note 2)
Support costs
Salaries and off ce costs
Shared learning expenses
Professional fees
Governance costs
Audit
Legal and professional costs
Trustee training
Council and Committee meetings
Grants(see note 2)
Support costs
Salaries and off ce costs
Professional fees
Governance costs
Audit
Legal and professional costs
Trustee training
Council and Committee meetings		 International
UK
Total
projects
projects
2022
£
£
740,113
306,455
1,046,568
108,440
44,902
153,342
5,027
2,081
7,108
14,161
5,863
20,024
127,628
52,846
180,474
4,837
2,003
6,840
2,020
836
2,856
177
73
250
4,591
1,901
6,492
11,625
4,813
16,438
879,366
364,114
1,243,480
International
Total
projects
UK projects
2021
£
£
608,029
268,165
876,194
92,937
40,989
133,925
7,707
3,399
11,106
100,644
44,388
145,032
4,747
2,093
6,840
2,114
933
3,047
69
30
99
511
226
737
7,441
3,282
10,723
716,114
315,835
1,031,949
4. STAFF COSTS & RELATED PARTY TRANSACTIONS
Salaries
Social security costs
Pension contributions
Consultants fees
Accountancy services
The average number of employees during the year was:
Management and administration		 2022
2021
£
£
117,033
91,389
6,643
4,985
6,849
5,701
14,864
6,306
5,160
4,800
150,549
113,181
4
3

No staff employee received remuneration amounting to more than £60,000 in the year (2021: None).

BFSS considers its key management personnel to comprise the members of the council and the BFSS Director. The Society delegates the-day-day running of the charity to its Director. The ultimate responsibility lies with the Trustees. The remuneration of the Director in the year was £53,373 (2021: £50,917) including pension and employers’ National Insurance.

BFSS bought in accountancy services from Godfrey Wilson which cost £5,160 (2021: £4,800).

Consultants fees include £9,180 to construct a new website and £4,501 in conference event planning.

No remuneration was paid to any member of the Council during 2022 or 2021 and there are no related party transactions to disclose other than above. Reimbursement of expenses in relation to attendance at meeting amounted to £1,036 paid to nine Trustees in 2022 (2021: £144 paid to 1 Trustee).

During the year a grant of £10,740 was paid to Kidasha, a charity of which J Miller is Chief Executive. J Miller does not have overall control of Kidasha, and did not attend the Grants Committee meeting where the grant was decided.

During the year a grant of £18,585 was paid to A Partner In Education, a charity of which A Barnecutt was Chief Executive for part of the year. A Barnecutt did not have overall control of A Partner In Education, and was not a trustee when the grant was decided.

Support and governance costs have been allocated in proportion to project location.

32

33

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

5.
FIXED ASSETS
COST & VALUATION
At 1st January 2022
Additions
Revaluation surplus
Disposals
At 31st December 2022
DEPRECIATION
At 1st January 2022
Charge for the year
Disposals
At 31st December 2022
NET BOOK VALUE
At 31st December 2022
At 31st December 2021		 Freehold land &
buildings
Furniture &
equipment
Total
£
£
£
160,000
11,574
171,574
-
2,940
2,940
15,000
-
15,000
-
(1,150)
(1,150)
175,000
13,364
188,364
-
9,370
9,370
-
2,495
2,495
-
(1,150)
(1,150)
-
10,715
10,715
175,000
2,649
177,649
160,000
2,204
162,204

Freehold land and buildings comprise investment properties which are not depreciated.

Council values the freehold property, the George Dent Nursery in Darlington, on the basis of ten times annual rental income. A new lease was agreed with the tenant from 25 December 2022 at an agreed rent of £17,500 per annum and Council increased the property valuation to £175,000 at the end of 2022 accordingly, resulting in an increase to the revaluation surplus of £15,000. The historic cost of this property is £1 (2021: £1).

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

6. UNITS HELD IN POOLED INVESTMENT FUND

a)
Number of units held
ENDOWMENT FUNDS
Wilmslow Fund
Darlington College Building Fund
Alfred Bourne
British School Charity
Old British School
West Street Old British School
BFSS Trust
RESTRICTED FUNDS
BFSS Trust
Berridge Trust
South Church Trust
Sarah Walker and Spafford
UNRESTRICTED FUNDS
British & Foreign School Society		 Units held
Transfers
Units
Units held
1 Jan 2022
between
sold
31 Dec 2022
No.
funds
No.
No.
2,360
-
-
2,360
2,112
-
-
2,112
315
-
-
315
2,917
-
-
2,917
2,161
-
-
2,161
788
-
-
788
-
1,652
1,652
10,653
1,652
-
12,305
1,652
(1,652)
-
-
344
-
-
344
389
-
-
389
1,258
-
-
1,258
3,643
(1,652)
-
1,991
224,732
-
-
224,732
224,732
-
-
224,732
239,028
-
-
239,028

The charity invests the assets of all its funds into a single investment portfolio in order to minimise the costs of management. The portfolio is invested in a wide range of listed equities and fi xed income holdings. In order to allocate the investments to each fund the portfolio is nominally divided into unitised holdings.

b) Value of units held

5a RENTS RECEIVABLE

George Dent Nursery, Darlington 2022
2021
£
£
16,000
16,000
ENDOWMENT FUNDS
Wilmslow Fund
Darlington College Building Fund
Alfred Bourne
British School Charity
Old British School
West Street Old British School
BFSS Trust
RESTRICTED FUNDS
BFSS Trust
Berridge Trust
South Church Trust
Sarah Walker and Spafford
UNRESTRICTED FUNDS
British & Foreign School Society
Value per unit		 Fund market
Transfers
Increase/
Fund market
value
between
(decrease)
value
1 Jan 2022
funds
in fund value
31 Dec 2022
£
£
£
£
289,620
-
(46,170)
243,450
259,156
-
(41,312)
217,844
38,664
-
(6,161)
32,503
357,940
-
(57,060)
300,880
265,210
-
(42,278)
222,932
96,744
-
(15,422)
81,322
-
202,667
(32,310)
170,357
1,307,334
202,667
(240,713)
1,269,288
202,667
(202,667)
-
-
42,158
-
(6,729)
35,429
47,750
-
(7,611)
40,139
154,382
-
(24,608)
129,774
446,957
(202,667)
(38,948)
205,342
27,575,454
-
(4,395,950)
23,179,504
27,575,454
-
(4,395,950)
23,179,504
29,329,745
-
(4,675,611)
24,654,134
122.70
103.14

34

35

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

7. POOLED INVESTMENT FUND
Opening value at 1 January 2022
FUND MOVEMENTS
Investments acquired at cost
Proceeds of investments sold
Realised losses on sale of investments during the year
Unrealised losses on investments during the year
Exchange rate differences
Non-cash investment income
Investment income receivable
Investment management fees paid
Distributions to funds during the year
NET FUND MOVEMENTS
CLOSING VALUE OF FUND AT 31 DECEMBER 2022
UK f xed interest
Overseas f xed interest
UK equities
European equities
US equities
Other worldwide equities
Managed funds
Emerging economies
UK property
Infrastructure
Commodities
Cash on deposit		 Un-invested
Investments
cash
Total
£
£
£
29,060,952
268,793
29,329,745
11,175,094
(11,175,094)
-
(11,694,990)
11,694,990
-
(885,767)
(885,767)
(3,186,897)
(3,186,897)
18,703
18,703
2,919
2,919
-
535,050
535,050
-
(79,619)
(79,619)
-
(1,080,000)
(1,080,000)
(4,589,641)
(85,970)
(4,675,611)
24,471,311
182,823
24,654,134
Investments
Cash
Total
498,761
-
498,761
1,609,568
-
1,609,568
5,599,418
-
5,599,418
2,103,516
-
2,103,516
6,658,246
-
6,658,246
3,382,396
-
3,382,396
1,057,924
-
1,057,924
1,208,221
-
1,208,221
1,432,547
-
1,432,547
520,714
520,714
400,000
182,823
582,823
24,471,311
182,823
24,654,134
7a. INVESTMENT RETURN
Unrealised (losses)/gains on investments during the year
Exchange rate movements
Realised (losses)/gains on investment during the year
Net (losses)/gains on investment assets
Investment income receivable (see note 7b))
Investment management fees paid and accrued		 2022
2021
£
£
(3,186,897)
2,633,515
18,703
-
(885,767)
505,486
(4,053,961)
3,139,001
535,050
629,262
(90,925)
(110,309)
(3,609,836)
3,657,954

The charity derives the majority of its income from the above investments. Whilst most of the funds held by the charity are available to meet expenditure, the trustees must balance the needs of current benefi ciaries against those of the future. For this reason, although largely not a permanently endowed fund, the charity uses a total return basis in order to inform its budgeted expenditure across all funds.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7b. INVESTMENT INCOME
UK f xed interest
Overseas f xed interest
UK equities
European equities
US equities
Other worldwide equities
UK property
Alternative assets
Other
8. DEBTORS AND PREPAYMENTS
Due within one year
Sundry debtors and prepayments
9. CREDITORS AND ACCRUALS
Grants payable
Rent received in advance
Other creditors		 2022
2021
£
£
11,049
14,680
12,743
7,646
231,433
373,448
20,479
23,719
50,000
46,011
65,032
27,594
55,700
53,607
74,326
80,452
14,288
2,105
535,050
629,262
2022
2021
£
£
3,223
2,519
2022
2021
£
£
56,404
80,742
4,000
4,000
35,921
19,473
96,325
104,215

10. FINANCIAL COMMITMENTS

a) Other grants

At the year end the BFSS has the intention to pay grants totalling £1,623,862 (2021: £1,147,687) in the future which have not been included in the accounts as they are conditional on the recipients providing satisfactory evidence that they have met the reporting requirements required by BFSS and the subsequent approval of payment..

b) Leases

BFSS is currently located in shared offi ces in London with an annual licence fee of £4,840. Service costs are based on usage and charged quarterly in arrears. The licence is terminable at three months notice giving a commitment of £1,210.

c) Archive

By Deed of Covenant and Gift signed on 11 December 2013 BFSS made a gift of the Archive to Brunel University. No further payment to Brunel University in respect of the Archive will therefore be made, nor will any further insurance costs be incurred.

d) Capital commitments

BFSS has no capital commitments at 31 December 2022 (2021: £ nil).

The historic cost of investments held at the year end totalled £22,363,450.

The trustees report includes further discussion regarding the investment policy of the charity.

The trustees budgeted to spend from the investment returns detailed above £1,222,243 (2021: £1,398,014) to cover the spending requirements of the charity in the year. The remainder of the investment returns are to remain invested.

36

37

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

11. RESTRICTED FUNDS

TRUSTS AND OTHER FUNDS ADMINISTERED BY BFSS
Incoming resources
Donations
Investment income
Pooled investment fund
Bank interest
Permanent endowment transfer to income
Total incoming resources
Resources expended
Direct charitable expenditure
Management and administration
- investment management fees
- transfer from main fund
Total resources expended
Net expenditure
before (losses)/gains on investments
Expendable endowment transfer
Sarah Walker Spafford transfer for
unspent income
BFSS transfer to permanent
endowment
Net (losses)/gains on investments
Net movement in funds
Fund balances brought forward
Fund balances carried forward		 Total restricted
funds		 Richard Pain
Trust		 BFSS Trust Alfred Bourne
2022
£
124,973
9,295
50
21,835		 2021
£
-
15,280
19
14,011		 2022
£
124,973
-
-
-		 2021
£
-
-
-
-		 2022
£
-
-
-
7,385		 2021
£
-
4,348
5
-		 2022
£
-
-
-
1,408		 2021
£
-
-
-
1,365
156,153
78,672
758
7,175		 29,310
86,694
1,681
5,888		 124,973
42,477
-
-		 -
31,609
-
-		 7,385
-
-
1,312		 4,353
6,000
761
1,076		 1,408
2,000
-
250		 1,365
2,000
-
205
86,605 94,263 42,477 31,609 1,312 7,837 2,250 2,205
69,548
4,799
(2,500)
(202,667)
(33,770)		 (64,953)
3,672
-
-
47,838		 82,496
-
-
-
-		 (31,609)
-
-
-
-		 6,073
-
-
(202,667)
-		 (3,484)
-
-
21,690		 (842)
-
-
-
-		 (840)
-
-
-
-
(164,590)
545,809		 (13,443)
559,252		 82,496
9,526		 (31,609)
41,135		 (196,594)
214,271		 18,206
196,065		 (842)
5,062		 (840)
5,902
381,219 545,809 92,022 9,526 17,677 214,271 4,220 5,062

Restricted funds represent the income of other charitable trusts which are administered by BFSS and unavailable for general charitable expenditure or donations which have been received for a specifi ed purpose.

11. RESTRICTED FUNDS

TRUSTS AND OTHER FUNDS ADMINISTERED BY BFSS (continued)
Berridge Trust British School
Charity		 South Church
Educational Fund		 Sarah Walker and
Spafford Memorial Fund		 Old British School
2022
£
-
770
4
-		 2021
£
-
906
1
-		 2022
£
-
-
-
13,042		 2021
£
-
-
-
12,646		 2022
£
-
871
5
-		 2021
£
-
1,024
1
-		 2022
£
-
2,816
15
-		 2021
£
-
3,312
4
-		 2022
£
-
4,838
26
-		 2021
£
-
5,690
8
-
774
2,000
131
273		 907
4,000
159
224		 13,042
17,695
-
2,316		 12,646
22,085
-
1,902		 876
2,500
148
309		 1,025
5,000
180
253		 2,831
-
479
999		 3,316
-
581
819		 4,864
12,000
-
1,716		 5,698
16,000
-
1,409
2,404 4,383 20,011 23,987 2,957 5,433 1,478 1,400 13,716 17,409
(1,630)
-
-
-
(5,834)		 (3,476)
-
4,518		 (6,969)
-
-
-
-		 (11,341)
-
-
-
-		 (2,081)
-
-
-
(6,600)		 (4,408)
-
-
-
5,110		 1,353
-
(2,500)
-
(21,336)		 1,916
-
-
-
16,520		 (8,852)
4,799
-
-
-		 (11,711)
3,672
-
-
-
(7,464)
44,976		 1,042
43,934		 (6,969)
31,475		 (11,341)
42,816		 (8,681)
56,587		 702
55,885		 (22,483)
178,126		 18,436
159,690		 (4,053)
5,786		 (8,039)
13,825
37,512 44,976 24,506 31,475 47,906 56,587 155,643 178,126 1,733 5,786

Name of Fund

Purpose of Fund

To promote the training of cookery teachers in England and Wales.

The Berridge Trust

(subsidiary of Charity number 314286)

Name of Fund

Richard Pain Trust

The British & Foreign School Society Trust (BFSS Trust) (Charity number 312516)

The Alfred Bourne Trust Fund (subsidiary of Charity number 314286)

Purpose of Fund

A restricted fund created by a grant from the Richard Pain Trust allocated to specifi c benefi ciaries.

To provide fi nancial assistance or award scholarships or grants to persons in the London Boroughs of Bermondsey, Bethnal Green, Poplar, Southwark and Stepney in connection with their education.

To provide fi nancial assistance to persons undertaking education up to the age of 30

The British School Charity (subsidiary of Charity number 314286)

The Sarah Walker and Spafford Memorial Fund

(administered under Charity number 314286)

Old British School

(Charity number 309444)

To promote the education of persons under the age of 25 in the neighbourhood of Saffron Walden.

To provide grants for educational travel for young people. Under the terms of the fund, the trustees can transfer unspent income to the main fund at their discretion.

To promote the education of persons under the age of 25 who are in need of fi nancial assistance and live within a radius of 20 miles from Bratton, Wiltshire, preference being given to those resident in Bratton.

38

39

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

12. ENDOWMENT FUNDS

TRUSTS AND OTHER FUNDS ADMINISTERED BY BFSS

Incoming resources
Investment income
Permanent endowment pooled investment fund
Permanent endowment bank interest
Permanent endowment transfer to income
Total incoming resources
Resources expended
Investment management fees
Net expenditure
before (losses)/gains on investments
Expendable endowment transfer between funds
BFSS transfer to permanent endowment
Net (losses)/gains on investments
Net movement in funds
Endowment fund balances brought forward
Endowment fund balances carried forward		 Total endowment
funds		 Total endowment
funds		 Wilmslow Wilmslow Darlington Darlington
2022
£
12,697
69
(25,360)		 2021
£
10,584
13
(17,428)		 2022
£
-
-
-		 2021
£
-
-
-		 2022
£
-
-
-		 2021
£
-
-
-
(12,594)
4,681		 (6,831)
4,917		 -
898		 -
1,089		 -
803		 -
975
(17,275)
(14,729)
202,667
(208,709)		 (11,748)
(11,270)
-
139,915		 (898)
(5,241)
-
(40,031)		 (1,089)
(4,011)
-
30,997		 (803)
(4,689)
-
(35,820)		 (975)
(3,588)
-
27,736
(38,046)
1,307,334		 116,897
1,190,437		 (46,170)
289,620		 25,897
263,723		 (41,312)
259,156		 23,173
235,983
1,269,288 1,307,334 243,450 289,620 217,844 259,156

Endowment funds represent capital amounts held by the charity for the longer term to generate income for the charity or the other trusts which are administered by BFSS. Endowment funds share in the total return from the investment funds. This allows trustees to invest endowment funds to maximise total return and to apply an appropriate proportion of the total return to income for the year and so be available for expenditure. BFSS has two types of endowment fund, permanent and expendable endowment funds.

Expendable endowments income can be spent as unrestricted funds, unless the charity is restricted to the areas in which the income and capital can be spent. Where the charity holds permanent endowments there is no ability to spend the original capital funds. Having considered their obligations under the duty of even-handedness the trustees made a transfer of £14,729 of the total return from the expendable endowment funds to income funds and a transfer of £25,360 of the total return from the permanent endowment funds to income funds. In making these decisions the trustees have taken into account the current investment climate, the return on investment for the year and the income needs of BFSS.

Name of Fund

Purpose of Fund

The fund is an expendable endowment, however the capital is restricted. The original value of the capital is unknown. As authorised by the Charity Commissioners, BFSS continues to apply the clear income of this fund for its general purposes.

Wilmslow British School Endowment Fund

(subsidiary of Charity number 314286)

The fund is an expendable endowment, however the capital is restricted. The original value of the capital is unknown. As authorised by the Charity Commissioners, BFSS continues to apply the clear income of this fund for its general purposes.

Darlington College Building Fund

12. ENDOWMENT FUNDS

TRUSTS AND OTHER FUNDS ADMINISTERED BY BFSS (continued)
Alfred Bourne British School
Charity		 Old British School West Street BFSS Trust
2022
£
705
4
(1,408)		 2021
£
829
1
(1,365)		 2022
£
6,530
36
(13,042)		 2021
£
7,679
9
(12,645)		 2022
£
-
-
-		 2021
£
-
-
-		 2022
£
1,765
10
(3,525)		 2021
£
2,076
3
(3,418)		 2022
£
3,697
19
(7,385)		 2021
£
-
-
-
(699)
120		 (535)
145		 (6,476)
1,110		 (4,957)
1,347		 -
822		 -
997		 (1,750)
300		 (1,339)
364		 (3,669)
628		 -
(819)
-
-
(5,342)		 (680)
-
-
4,136		 (7,586)
-
-
(49,474)		 (6,304)
-
-
38,310		 (822)
(4,799)
-
(36,657)		 (997)
(3,671)
-
28,382		 (2,050)
-
-
(13,372)		 (1,703)
-
-
10,354		 (4,297)
-
202,667
(28,013)		 -
-
-
(6,161)
38,664		 3,456
35,208		 (57,060)
357,940		 32,006
325,934		 (42,278)
265,210		 23,714
241,496		 (15,422)
96,744		 8,651
88,093		 170,357
-		 -
-
32,503 38,664 300,880 357,940 222,932 265,210 81,322 96,744 170,357 -

Name of Fund

Purpose of Fund

The Alfred Bourne Trust Fund (subsidiary of Charity number 314286)

The fund is a permanent endowment. The income of the endowment is restricted as detailed in note 11.

The charity incorporates a permanent endowment. The income of the endowment is restricted as detailed in note 11.

The British School Charity (subsidiary of Charity number 314286)

The Old British School is an expendable endowment. The income of the endowment is restricted as detailed in note 11

Old British School (Charity number 309444)

The fund is a permanent endowment. As authorised by the Charity Commissioners, BFSS continues to apply the clear income of this fund for its general purposes.

West Street Old British School, Wareham (subsidiary of Charity number 314286)

The charity incorporates a permanent endowment. The income of the endowment is restricted as detailed in note 11. During the year the Charity Commission confi rmed that they deem the fund to be a permanent endowment and the fund

The British & Foreign School Society Trust

(BFSS Trust) (Charity number 312516)

40

41

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Endowment funds
Wilmslow Fund - expendable endowment
Darlington College Building Fund - expendable endowment
Alfred Bourne - permanent endowment
British School Charity - permanent endowment
Old British School - expendable endowment
West Street Old British School - permanent endowment
BFSS Trust - permanent endowment
Restricted funds
Richard Pain Trust
BFSS Trust
Alfred Bourne
Berridge Trust
British School Charity
South Church Trust
Sarah Walker and Spafford
Old British School
Unrestricted funds
British & Foreign School Society
Endowment funds
Wilmslow Fund - expendable endowment
Darlington College Building Fund - expendable endowment
Alfred Bourne - permanent endowment
British School Charity - permanent endowment
Old British School - expendable endowment
West Street Old British School - permanent endowment
Restricted funds
Richard Pain Trust
BFSS Trust
Alfred Bourne
Berridge Trust
British School Charity
South Church Trust
Sarah Walker and Spafford
Old British School
Unrestricted funds
British & Foreign School Society		 Tangible f xed
assets and
investment
property
Pooled funds
Net current
assets
Total 2022
£
£
£
£
-
243,450
-
243,450
-
217,844
-
217,844
-
32,503
-
32,503
-
300,880
-
300,880
-
222,932
-
222,932
-
81,322
-
81,322
170,357
**170,357 **
-
1,269,288
-
1,269,288
-
-
92,022
92,022
-
-
17,677
17,677
-
-
4,220
4,220
-
35,429
2,083
37,512
-
-
24,506
24,506
-
40,139
7,767
47,906
-
129,774
25,869
155,643
-
-
1,733
1,733
-
205,342
175,877
381,219
177,649
23,179,504
(136,919)
23,220,234
177,649
24,654,134
38,958
24,870,741
Tangible f xed
assets and
investment
property
Pooled funds
Net current
assets
Total 2021
£
£
£
£
-
289,620
-
289,620
-
259,156
-
259,156
-
38,664
-
38,664
-
357,940
-
357,940
-
265,210
-
265,210
-
96,744
-
96,744
-
1,307,334
-
1,307,334
-
9,526
9,526
202,667
11,604
214,271
-
5,062
5,062
42,158
2,818
44,976
-
31,475
31,475
47,750
8,837
56,587
154,382
23,744
178,126
-
5,786
5,786
446,957
98,852
545,809
162,204
27,575,454
(23,809)
27,713,849
162,204
29,329,745
75,043
29,566,992

14. TOTAL RETURN

Endowment funds represent capital amounts held by the charity for the longer term to generate income for the charity or the other trusts which are administered by BFSS. Endowment funds share in the total return from the investment funds. This allows trustees to invest endowment funds to maximise total return and to apply an appropriate proportion of the total return to income for the year and so be available for expenditure. BFSS has two types of endowment fund, permanent and expendable endowment funds.

Where the charity holds permanent endowments there is no ability to spend the original capital funds. In 2007 the Charity obtained permission to use the total return basis for the investment of the permanent endowments held. The trustees are obliged to balance the income requirements to apply to current expenditure on charitable objects with the need for long term capital growth. In order to do achieve these two aims the charity must consider the unapplied total return available for transfer to the income funds.

INCOME
Total permanent endowment balance at 1 January 2007
Value of the fund as at 31st December 2021
Unapplied total return brought forward
Increase/ (decrease) in fund value
Unapplied total return at 31 December 2022
Value of the fund as at 31st December 2022		 British
School
Charity
Alfred Bourne
West Street
BFSS Trust
Total
£
£
£
£
£
26,393
244,329
66,037
138,341
475,100
38,664
357,940
96,744
202,667
696,015
12,271
113,611
30,707
64,326
220,915
(6,161)
(57,060)
(15,422)
(32,310)
(110,953)
6,110
56,551
15,285
32,016
109,962
32,503
300,880
81,322
170,357
585,062

During the year the value of the investment fund fell by approximately 16% due to market fl uctuations. The decrease in the fund value has contributed to the unapplied total fund halving from the brought forward level. As stated above, the trustees have a duty to balance the long term value of the endowment with the income available for expenditure. Although the fund has signifi cantly fallen in value, the trustees have considered the post balance sheet date market value increase in the fund and have not deemed it necessary to restrict the monies transferred to the funds in the current year. Given the levels of increased giving planned over the next two years, the trustees will keep the allocations for expenditure under review.

42

43

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

British & Foreign School Society

MEMBERS OF THE GRANTS COMMITTEE

Prof Joy Palmer Cooper (Chair) Amy Barnecutt (from October 2022) Charlotte Cashman Vic Craggs Jane Creasy

Karen Hughes (until May 2022) John Kanyaru (from October 2022) Janice Miller (from May 2022) Peter Miller Leslie Stephen (until May 2022)

MEMBERS OF THE FINANCE AND INVESTMENTS COMMITTEE

John Kanyaru (from June 2022) Janice Miller Peter Miller

David Baron (Chair) Jane Creasy (from June 2022) Karen Hughes (until May 2022)

DELEGATES OF BFSS RESTRICTED FUNDS

The Alfred Bourne Trust Fund

Berridge Trust

Jo Durning (until October 2022) Claire Cameron Diana Hoy Matthew Blayney (until October 2022) Ann Geeves Alison Stewart

The British School Charity

Sarah Walker & Spafford Memorial Fund Offi cers of BFSS

South Church Educational Fund

TRUSTEES OF THE BFSS TRUST

BFSS Council

TRUSTEES OF THE OLD BRITISH SCHOOL

BFSS Council

REPRESENTATIVES SERVING ON OUTSIDE BODIES

Trustees

Caroline Lindley’s Educational Christopher Watt Foundation, Norwich Jenny Hoult Great and Little Leighs Educational Paul Cooke (from March 2022) Charity, Essex

PROFESSIONAL ADVISORS

Investment Manager

Investec Wealth & Investment Limited 30 Gresham Street London EC2V 7QN

Bankers

Barclays Bank plc 6 Clarence Street Kingston upon Thames KT1 1NY

CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Mailing Kent ME19 4JQ

Independent Auditor

Begbies Chartered Accountants and Registered Auditors 9 Bonhill Street London EC2A 4DJ

Accountant

Godfrey Wilson Ltd 5th Floor, Mariner House 62 Prince Street Bristol BS1 4QD

Property Consultant

Sanderson Weatherall Robert House Westpoint Road Stockton TS17 6BA

Solicitor

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

Prior’s Charity, Chesham Kevin Patrick Steeple Bumpstead Educational Charity Rosemarie O’Hare

GOVERNORS

Isleworth and Syon School for Boys

Dr Emily Tomlinson David Grindly (from September 2022)

44

BRITISH & FOREIGN SCHOOL SOCIETY

ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

British & Foreign School Society 7-14 Great Dover Street London SE1 4YR

Web: www.bfss.org.uk Tel: 020 7922 7814 Email: grants@bfss.org.uk Twitter: @BFSSCharity

April 2023 Registered Charity no. 314286

© British and Foreign Schools Society. All rights reserved.

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BRITISH & FOREIGN SCHOOL SOCIETY