## **THE ROUND SQUARE (A Charitable Company Limited by Guarantee)**
## **TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 JULY 2021**
Company Registration No: 2011514 Registered Charity No: 327117
## **THE ROUND SQUARE**
## **TRUSTEES' REPORT**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **Trustees**
|John O’Connor|Chair|Appointed by the Board as|
|---|---|---|
|||Chair March 2021|
|Simona Baciu|||
|Catherine Donovan|RS Schools’ Reps’ Representative||
|Sally James|Regional Trustee Africa Region||
|Surendra Kulkarni|Regional Trustee South Asia & Gulf Region|Appointed October 2020|
|Richard McDonald|Regional Trustee Europe and the Mediterranean Region||
|Lisa Moloney|Regional Trustee Australasia & East Asia|Appointed October 2020|
|Paul Sandford||Appointed October 2020|
|Siddarth Singh Girnar|||
|Innes Van Nostrand|Regional Trustee Americas Region||
## **Former Trustees leaving the Board during the year**
|Roderick Fraser|Chair|Deceased March 2021|
|---|---|---|
|Papri Ghosh|Regional Trustee South Asia & Gulf Region|Retired October 2020|
|Hugh Macdonnell||Retired October 2020|
## **Company Secretary**
Jane Howison
## **Worldwide Management Team**
|Rachael Westgarth|Chief Executive|
|---|---|
|Craig Carolan|Professional Development Director (and Regional Support – Africa)|
|Katie Di Feliciantonio|Digital Communications Manager|
|Emma Fordham|Conference and Projects Manager (maternity leave)|
|Sally Frisby|Content Manager|
|Ben George|Schools’ Support Director – Australasia & East Asia|
|Jane Howison|Executive Assistant to the Chief Executive|
|Duncan Hossack|Schools’ Support Director – USA and Canada|
|Raksana Khan|Finance Manager|
|Florencia Marante|Schools’ Support Director – Latin America|
|Rajbir Sandhu|Schools’ Support Director – South Asia & the Gulf|
|Aimee Theodore|Programmes’ Support Director (and Regional Support – Europe & the Mediterranean)|
|Sandy Watt|Membership Secretary|
|**Auditors**|Haysmacintyre LLP|
|---|---|
||10 Queen Street Place, London, EC4R 1AG|
|**Bankers**|Barclays Bank Plc|
||24 Lowfield Street|
||Dartford|
||Kent|
||DA1 1HE|
|**Solicitors**|Bates Wells Braithwaite|
||10 Queen Street Place, London, EC4R 1BE|
The Round Square - Financial Statements for the year ended 31 July 2021
Page 2
## **THE ROUND SQUARE**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102)
## **PAYING TRIBUTE TO FORMER ROUND SQUARE CHAIRMAN, ROD FRASER**
During the reported year Round Square mourned the loss of our longstanding Chairman, Rod Fraser, who sadly passed away in March 2021.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## Governing Document
The Round Square is a company limited by guarantee governed by its Memorandum and Articles of Association dated April 1986 and amended by special resolutions on 25 September 2001, 28 September 2012 and 20 May 2015.
The Round Square is registered as a charity with the Charity Commission at Morgan House, Madeira Walk, Windsor SL4 1EP
## Appointment of Trustees
As part of the requirements of the Articles of Association, near to one-third of the Board of Trustees must retire at each Annual General Meeting (Article 3.5). Members of the Board of Trustees are, subject to any restrictions specified in the Rules of Governance (or in the case of Regional Trustees, in the Regional Charters), eligible for re-election (Article 3.6).
Over time and as terms of office expire, nominations for positions on the Board of Trustees come from a variety of sources and stakeholders of the Round Square Organisation.
Regional Trustees are selected by nomination and vote by the Heads of School in their Region through a process designated in their Regional Charter and then put forward to the full Global membership for election via the AGM.
The RS Schools’ Global Reps’ Representative is nominated and selected by a vote of the Reps’ Representatives from all Global Member Schools. The chosen candidate, once approved by the Board of Trustees, is put forward for election by full-membership vote via the AGM.
All Round Square Heads of School are invited, from time to time, by the RS Chairman, to put forward to the Nominations Committee of the Board of Trustees, further candidates for election to the Board.
## Trustee Induction and Training
New Trustees are provided with access to an information Dropbox detailing relevant information. This pack includes copies of governing documents, the Memorandum and Articles of Association, the Annual Report, Minutes of Trustee Meetings and reports including Committee reports, and budget information.
Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. An induction workshop for new Trustees is led by the RS Chairman and Chief Executive.
## Organisational Structure
The Trustees, who can number up to twenty, comprise of individuals with specific skill sets who bring their expertise from wide-ranging backgrounds and geographical locations throughout the World.
The Round Square - Financial Statements for the year ended 31 July 2021
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## **THE ROUND SQUARE**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
The Trustees operate a committee structure, the committees and their responsibilities are shown below:
- Nominations Committee
- Membership Committee: School membership, management of school recruitment
- Finance & General Purposes Committee: Operational, budgeting and finance matters
The full Board meets, at a minimum, three times a year through a combination of in-person and virtual zoom meetings. In addition, both the full Board and its Committees communicate by group email.
The Board delegates day to day management of the organisation to the Worldwide Management Team.
## Status and Administration
The company is a registered charity and a company limited by guarantee. The company registered number is 2011514.
## Principal Risks and Uncertainties
Round Square has thorough processes in place for risk management of student-based activities including projects and conferences. In addition, the charity maintains a risk register, which was reviewed by the Board during the reported year at its April 2021 meeting.
The top three risks identified through this process, at that time, on the basis of an assessment of the severity of impact and likelihood were:
- The sudden loss of a significant number of RS Candidate/ Member schools, impacting on the quality of interaction within the network, leading to reputational damage and potentially unsustainable loss of income. Mitigating factors were identified as the significant energy invested in maintaining and developing Round Square’s responsiveness to the needs of its Member Schools as well as building the engagement & commitment of the network. In addition Candidate and Membership agreements formalises relationships and expectations with notice periods.
- COVID-related material drop in subscription income as a result of falling student numbers or fees in Round Square schools. As subscription income is calculated annually and based on school fee income and student numbers, any drop suffered by RS schools will create a drop in Round Square’s own income. Any scope for mitigating factors was acknowledged to be limited as this is largely beyond Round Square’s control, though regular communication with schools provides an element of early-warning should this risk be realised.
- Urgent and unbudgeted need for a significant global response to a topical issue being faced by Round Square schools, requiring specialist external guidance or expertise. Mitigating factors were identified as regular discussion within the Round Square Board about proportionate response and avoidance of mission-drift. In addition programming is regularly reviewed, adapted and updated to signpost opportunities for schools to explore relevant themes (e.g. diversity, equity and inclusion) in conjunction with the Round Square IDEALS and Discoveries.
The Round Square - Financial Statements for the year ended 31 July 2021
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## **THE ROUND SQUARE**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **OBJECTIVES AND ACTIVITIES**
Round Square (RS) is a not-for-profit network of schools in 50 countries on six continents with a stated object to advance education anywhere in the world.
Its proposition is based on the theories of Kurt Hahn who believed that schools should have a greater purpose beyond preparing young people for college and university. Together, the schools in the Round Square network share a belief in six pillars, or IDEALS, inspired by Hahn’s beliefs. These are:
**I** nternational understanding, empathy and tolerance **D** emocratic governance and justice **E** nvironmental stewardship **A** dventure, motivating self-discovery **L** eadership, with courage and compassion **S** ervice to others
RS schools carry this belief into their practices and pedagogy, offering a holistic and collaborative approach to learning that develops students into well-rounded, informed, responsible, principled and confident Global Citizens.
Students at Round Square schools instigate and engage in, practical initiatives that develop their skills and understanding both of themselves and others, on an International scale. They are challenged to seek out issues that have resonance locally, regionally and internationally and form their own opinions and ideas about these in the context of the RS IDEALS.
Subscriptions are paid by each member school in proportion to their fee income and are utilised to support the organisations' objectives. The organisation seeks to enhance the education of all constituents at member schools - pupils, governors and staff - and propagate a style of education built around the six IDEALS and Kurt Hahn’s philosophy.
Member schools demonstrate their commitment to Round Square IDEALS through activities run within their schools, through sharing good practice and knowledge, and through participation in international Round Square initiatives such as conferences and projects.
## **STRATEGIC INTENTIONS**
## Organisational
1. To be a major global educational influencer, advocating and promoting the philosophy of Kurt Hahn as the basis for excellence in education around the world;
2. To place students at the heart of our organisation, and to define our role, ambitions and activities by a compulsion to guide and support their educational, ethical and social journeys;
3. To strive for the broadest possible reach, engaging with schools and young people throughout the world, irrespective of background and circumstance;
4. To engender a culture within our schools that encourages and expects students to be active, informed and responsible participants in shaping and improving our world both now and in their future lives.
## Individual
5. To provide young people with the appropriate environment and opportunities for self-discovery and personal growth, through physical and mental challenge and _**ADVENTURE**_ and through active participation in the _**DEMOCRATIC**_ process of school leadership and governance;
The Round Square - Financial Statements for the year ended 31 July 2021
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## **THE ROUND SQUARE**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
6. To guide and support students in discovering their own inner strengths and developing a sense of personal responsibility, understanding that true _**LEADERSHIP**_ is rooted in kindness, empathy and justice and that the best leaders know how to be of _**SERVICE**_ to others;
7. To engender and nurture _**INTERNATIONAL**_ understanding and global-mindedness through encouraging students to understand and appreciate the physical and social world around them and recognise the need to care for it through effective _**ENVIRONMENTAL**_ stewardship.
## Operational
8. To harness and invest in all available technologies and social media to facilitate and enhance opportunities for teaching and learning, sharing good practice, organisational development and communications;
9. To operate with the utmost professionalism: prioritising consistency of approach, method and implementation; delineating the roles of RS Central (infrastructure and enabling) and RS Schools (delivery and programme activity); setting standards rather than following them, and encouraging the elevation of the status of Round Square membership within all schools;
10. To develop and promote the Round Square brand including codification of Intellectual Property, measurement and protection of what it means to be a Round Square member school.
## **PUBLIC BENEFIT**
The organisation specifically identifies the advancement of education in its governing documents.
The organisation, as one of its cornerstones, recognises and promotes the importance of educating students to provide service to others and to participate in voluntary work in education, social service and similar activities in various parts of the World.
The organisation provides opportunities for students to participate in events including conferences and service projects. Specifically, the organisation provides young people with opportunities to work together as an international group promoting understanding. Individual schools in the Round Square network also arrange exchanges of students and staff between themselves.
Each Round Square Member School raises funds to support Round Square’s charitable activities. During the reported year donations from student fundraising made to the organisation were designated by the Board of Trustees to the Round Square Discovery Fund, which is used to support Round Square’s charitable activities including, for example, in purchasing materials for International Service Projects, or in providing bursaries to enable participation in projects and conferences for students whose financial circumstances would otherwise prevent them from taking part. In this way, Round Square directly supports students in participating in Round Square Conferences and on RSIS Projects and provides allocated funding to meet this commitment.
The trustees confirm that they have referred to the Charity Commission’s guidance on Public Benefit in reviewing the charity’s aims, objectives and future plans.
## **ACHIEVEMENTS AND PERFORMANCE – ANALYSIS OF OPERATING COSTS**
As a registered charity, Round Square is aware of the need to manage its resources to the best possible effect on behalf of its stakeholders, balancing in-house activities most effectively and efficiently delivered by the Management Team with initiatives that are outsourced to specialist suppliers and consultants. Note 3 of the accounts details the allocation of staff and governance costs, between the following areas:
The Round Square - Financial Statements for the year ended 31 July 2021
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## **THE ROUND SQUARE**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## – Membership Support and Recruitment
Round Square continues its strategy for measured growth, both in terms of the opportunities afforded to school communities within the Association and in the number of Member Schools.
Today 232 schools and colleges around the globe are part of the Round Square network with five schools moving from Candidacy to Global Membership during the reported year. The combined addition of new Candidate and Global Member schools, along with changes in the exchange rate and local increases in school-fee income, resulted in an increase in subscription income of £48,841 during the year (Note 2a refers).
Interest in – and engagement with - Round Square continues to go from strength to strength both within and beyond our network. During the year, under the sudden and wholescale impact of the COVID-19 pandemic, Round Square Candidate and Member Schools have provided a source of inspiration, resource sharing and support to one another. Innovative solutions have been developed to maintain an international outlook during the lockdown and the new virtual opportunities on offer have been embraced.
- Interest in the RS Discovery Framework and Research Initiatives remains strong and there has been a significant uptake of Round Square’s online programmes. More than 5,500 students participated in RS Zoom Postcards during the year and the RS IDEALS Challenges attracted 1,064 submissions.
- Despite the challenges of the pandemic, awareness of Round Square and interest in RS Candidacy is stronger than ever, with a growing number of new enquiries as schools seek alternative solutions to global programming when international travel is not possible.
- Membership growth continued steadily prior to the pandemic, and a typical volume of applications for RS Candidacy are awaiting evaluation once travel is possible.
- Initiatives designed to “get the network networking” continued, with good practice sharing via Zoom and the development and support of a greater range of classroom and other virtual collaborations.
The total manpower invested in direct services and support to Candidate and Member Schools by members of the Worldwide Management Team and Board of Trustees amounted to an expenditure of £378,226 during the year (as disclosed in General Support costs and Governance costs in Note 3).
## Subscription Support for RS Schools experiencing Financial Hardship
During the reported year Round Square operated a Subscriptions Hardship Relief Scheme to support schools that experienced financial hardship as a result of the crisis arising from the COVID-19 pandemic, whilst maintaining the organisation’s own financial stability as a going concern and continuing to meet its reserves policy.
The process was rolled out in October 2020 and administered by a committee of the RS Board.
## Research & Development
During the reported year, ongoing development and implementation of the Round Square Discovery Framework (RSDF) by Member and Candidate Schools continued. The RSDF was first rolled out at the RSIC2015 and is now in use in more than 130 Round Square schools.
The Round Square - Financial Statements for the year ended 31 July 2021
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## **THE ROUND SQUARE**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
The RSDF offers a structure for teaching and learning, both inside and beyond the curriculum, that connects the _**Spirit**_ inherent in each of the Round Square IDEALS (International Understanding, Democracy, Environmental Stewardship, Adventure, Leadership and Service) with twelve _**Discoveries**_ that students explore on their learning journey: inquisitiveness, tenacity, courage, compassion, inventiveness, ability to solve problems, self-awareness, sense of responsibility, appreciation for diversity, commitment to sustainability, communication and team-working skills.
Within this Framework, Students and Faculty in RS Member Schools are encouraged to discover and develop their own capabilities through a range of experiences, activities, taught lessons, collaborative projects and challenges.
In the reported year, development continued on an initiative to create classroom resources and programmes based on the RSDF for Early Years and Primary/ Elementary students.
During the reported year, Round Square completed its work with the Education University of Hong Kong on a crosscultural research study into student leadership in Round Square schools, and their research report was published.
A film project to capture and share “Brave Conversation” interviews, on a range of topics, between students in Round Square schools and keynote speakers across the world, resulted in a series of films to stimulate Round Square Baraza discussions.
The direct cost to the organisation in the reported year of these combined initiatives was £72,496 as disclosed in Note 3 of the accounts.
## Digital & Other Communications
During 2020/21 further development of Round Square’s online presence saw the creation of a dedicated web site for students, and improvements to the student exchange portal to support virtual student exchange. A collaboration with WaterBear, a streaming platform dedicated to the future of the planet, created the RoundSquare with WaterBear film challenge.
In the first quarter of 2021 Round Square hosted five Forums on Zoom for Heads, Reps and other faculty from RS schools, each including a Reps’ Meeting, a Heads’ Meeting, a collaboration incubatod and good practice carousels. The Good Practice Carousels were recorded and turned into 46 Podcasts available through the RS Web Site resource library.
The direct cost to the organisation in the reported year of these combined initiatives was £10,654 as disclosed in Note 3 of the accounts.
## Conference Costs
During the reported year Round Square supported 13 virtual conferences hosted by RS schools across the world and attended by a total of 3,047 student and teacher delegates. Each conference was themed around one of the RS IDEALS and included keynote speakers, baraza breakouts, sharing of pre-work completed by attending delegations, and other activities.
In addition Round Square invested in the creation of a Virtual Conference Campus on Gather. The online campus combines video conferencing with gaming functionality and has been used through the latter part of the year for student training. The ‘ _Gather with Round Square’_ platform will provide a venue for further virtual conferences in the coming year and beyond.
The direct cost to the organisation in the reported year of these combined initiatives was £68,169 as disclosed in Note 3 of the accounts.
The Round Square - Financial Statements for the year ended 31 July 2021
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## **THE ROUND SQUARE**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## Leadership, Staffing & Infrastructure
During the 2020/21 year, two members of staff were furloughed for one month on the UK Government’s Coronavirus Job Retention Scheme (CJRS). A review of staffing resulted in one redundancy. At the end of March 2021 one staff member started maternity leave, whilst another staff member returned from maternity leave in June 2021.
The combined cost to the organisation of the key personnel that made up the Worldwide Management Team during 2020/21 (names and start dates listed on page 2) was £696,244 (2020 £685,941).
The pay of all employed members of the Worldwide Management Team is reviewed annually, and, as required, is increased in accordance with average earnings. Remuneration of all members of the Worldwide Management Team is bench-marked with other UK-based charities whose activities are similar to those of Round Square, with market forces for the individual roles, and with roles of equivalent status in the education sector in the territory in which each team member is based. This is done to ensure that the remuneration is set fair and not out of line with that generally paid for similar roles requiring similar skills sets and levels of experience.
During the reported year operating leases for office, premises totalled £63,126 (£69,784 in 2020).
## **FINANCIAL RESULTS AND RESOURCES**
The total income for the year was £1,095,206 and total expenditure was £997,249. At the year-end, on 31[st] July 2021, Round Square was holding a total of £836,205 in reserves, made up of £356,310 in unrestricted, £25,759 in restricted and £454,136 in designated funds.
## Fundraising Disclosure
Round Square does not undertake any direct fundraising activity, and as such has received no complaints and worked with no 3[rd] party fundraising partners in the past year. Students in Round Square schools undertake fundraising activities as part of their education, and many choose to make donations from these funds to Round Square.
## Investments Policy
Round Square has reviewed its cash balances and has made some investment decisions based on the need to ensure funds are held in accounts producing investment returns whilst ensuring funds are held securely.
A conservative approach to the investment of surplus funds continues to form the basis of the investment policy. The Finance and General Purposes Committee will review the cash position at least annually and make decisions accordingly, seeking to make investments only where there is a minimum risk to capital.
## Reserves Policy
Reserves built up in the organisation are intended for investment, by Board decision, in the development of a specific initiative or area of the business. It is not the intention of the Board to supplement normal operating expenditure through the use of reserves.
During the year the Round Square Board reviewed and adopted a revised reserves policy for Round Square, taking into account the main financial risks for the organization, the levels of secure and reliable income, and committed expenditure over 12 months. The aim of the policy is that Round Square should hold £302,260 in free reserves (unrestricted funds not tied up in fixed assets or designated).
At the year-end Round Square’s holding in free reserves amounted to £299,760 which is in line with policy, at £2,500 below reserves target.
The Round Square - Financial Statements for the year ended 31 July 2021
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## **THE ROUND SQUARE**
## **TRUSTEES’ REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **PLANS FOR THE FUTURE**
## Strategic Themes
Three strategic themes continue to form the central framework of our plan. These encapsulate our Guiding Principles and provide a touchstone for shaping current and future ambitions. Our themes are:
- A World-Class Educational Approach
- A Vibrant Connected Network
- A Platform for Future Leaders
## Strategic Outcomes
The Round Square Strategic Plan identifies five Strategic Outcomes for the organisation:
- 1) A meaningful Round Square value system
_The Ebb & Flow of Learning in the organisation_
- 2) A whole new standard of educational value
_BEING Round Square not just DOING Round Square_
- 3) The development of better human beings
_The Vision and purpose of the approach shared by Round Square schools_
- 4) Advancement of critical skills and qualities for lifelong learning
_Propagating the Round Square approach_
- 5) Attraction and retention of exemplary Round Square schools
_Seeking out those schools that excel and innovate in areas that we are passionate about_
## Worldwide Implementation Plan
The Worldwide organisation continues to focus on four key areas in support of the strategic plan:
- _Membership Support_ including on-the-ground support, good practice sharing, Professional Development, training and mentoring for Candidate and Member School faculty, as well as the school recruitment and onboarding process.
- _Round Square Voice_ including the continuing development of our web site and social media platforms, particularly in the context of the continuing inability for schools to travel as a result of the COVID-19 Pandemic.
- _Core Programme Development_ including the development of the Round Square Discovery Framework, online resources, virtual programming and planning for a future return to RS International Service Projects and Conferences.
- _Infrastructure Development_ which encompasses a programme of continuous improvement in our systems and processes as well as the structure of support services provided by the Worldwide Management Team in encouraging and enabling network collaboration and whole-school engagement.
## The Round Square Discovery Framework
Implementation of the Round Square Discovery Framework is gaining momentum throughout the RS network with an increasing number of schools using it as the basis for developing and structuring their individual approaches to valuesbased education. In the coming year, Round Square will continue to facilitate good practice sharing around the RSDF. In addition, the final quarter of 2021 will see the launch of the _Round Square Heroes of Discovery_ pilot programme for Early Years, extending the RSDF to the youngest students in our community.
The Round Square - Financial Statements for the year ended 31 July 2021
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## **THE ROUND SQUARE**
## **TRUSTEES’ REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## Research and Development
During the final quarter of 2021 Round Square will complete a digital redevelopment project to refresh and revamp the Round Square web site. This project was postponed from the 2020/21 year to make way for the creation of the Gather platform and student web pages.
A Think Tank and working party established during the reported year to create a ‘ _Coaching Compass’_ as a framework for Professional Development in the Round Square community will complete its work in the 2021/22 year. The _‘Round Square Coaching Compass’_ will be used as the foundation for the expansion of Professional Development programmes and resources for teachers in Round Square schools. This initiative will dovetail with the new web site build.
The coming year will also see the launch of a new professional development course for teachers in Round Square schools in partnership with University College London. Following the conclusion of the development phase, the course will be piloted in January 2022.
## Virtual Programming
In light of the continuing impact of the COVID-19 Pandemic, the 2021/22 will see the continuation of virtual programming alongside tentative planning for a return to travel-based activities.
Round Square will continue to co-ordinate a programme of weekly Zoom Postcards from Member Schools and will maintain the IDEALS Challenges over the coming year.
The Round Square International Conference 2021 will take place online from 20[th] to 23[rd] September, using the new virtual “Gather with Round Square” campus. A further six virtual conferences will be offered in the first half of the 2021/22 year, with a plan to reintroduce physical, travel-based conferences in the second half 2022. The RSIC2022 is due to be hosted as a physical gathering, between Oxford University and five Round Square schools in the UK, in September 2022.
Round Square International Service Projects continue to be suspended with a current plan to reintroduce them from December 2022. In the coming year, Round Square will be working with a non-profit organisation in Africa, established by an Alum of a Round Square school, to offer a Virtual RSIS project, with an environmental sustainability theme, across the course of the year.
## Networking
With a focus on maximising the potential of networking within Round Square for all Candidate and Member schools, the resource will continue to be directed towards encouraging, supporting and facilitating greater communication, good practice sharing and collaboration in the coming year.
With travel beginning to be possible again in some parts of the world, plans are being made for members of the Round Square team to restart mentoring schools’ five-year self-reflections via face-to-face visits to schools by the end of 2021.
## Diversity and Quality of Membership
In line with the Strategic Plan objectives indicated by all regions, diversity remains a key focus in the consideration of new Candidate School applications, and attention will be focused once again towards growing interest in Round Square in unrepresented or under-represented parts of the world.
The Round Square - Financial Statements for the year ended 31 July 2021
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## **THE ROUND SQUARE**
## **TRUSTEES’ REPORT (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (the United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
So far as each of the trustees is aware at the time the report is approved:
- there is no relevant audit information of which the company’s auditors are unaware, and;
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
In preparing this report, the trustees have taken advantage of the small company’s exemptions provided by section 415A of the Companies Act 2006.
Approved by the trustees on 21st September 2021 and signed on their behalf by:
John O’Connor Chairman Round Square
The Round Square - Financial Statements for the year ended 31 July 2021
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ROUND SQUARE**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **Opinion**
We have audited the financial statements of The Round Square for the year ended 31 July 2021 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 July 2021 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the Trustees’ Report been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the charitable company; or
- the charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
The Round Square - Financial Statements for the year ended 31 July 2021
Page 13
**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ROUND SQUARE**
## **FOR THE YEAR ENDED 31 JULY 2021**
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees for the financial statements**
As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, 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 influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charitable company and the environment in which it operates, we identified the principle risks of non-compliance with laws and regulations related to employment law and charity law, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and Charities Act 2011.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls. Audit procedures performed by the engagement team included:
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Tracey Young (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor
10 Queen Street Place London EC4R 1AG
Date: 23 September 2021
The Round Square - Financial Statements for the year ended 31 July 2021
Page 14
## **THE ROUND SQUARE STATEMENT OF FINANCIAL ACTIVITIES (incorporates the income and expenditure account) FOR THE YEAR ENDED 31 JULY 2021**
|**Unrestricted**
**Funds**
**£**
1,081,380
5,808
208
1,491|**Designated**
**Funds**
**£**
-
6,319
-
-|**Restricted**
**Funds**
**£**
-
-
-
-|**2021**
**Total**
**£**
1,081,380
12,127
208
1,491|**2020**
**Total**
**£**
1,105,181
107,074
1,532
4,705|
|---|---|---|---|---|
|**1,088,887**|**6,319**|**-**|**1,095,206**|**1,218,492**|
|997,249|-|-|997,249|1,216,436|
|**997,249**|**-**|**-**|**997,249**|**1,216,436**|
|91,638
(91,638)|6,319
91,638|-
-|97,957
-|2,056
-|
|-
356,310|97,957
356,179|-
25,759|97,957
738,248|2,056
736,192|
All transactions are derived from continuing activities
There are no other gains and losses other than these shown above.
The comparative Statement of Financial Activities is shown in note 16.
The accompanying notes form part of these financial statements
The Round Square - Financial Statements for the year ended 31 July 2021
Page 15
## **THE ROUND SQUARE**
## **BALANCE SHEET**
## **AS AT 31 JULY 2021**
|**NOTES**
**FIXED ASSETS**
Tangible Assets
5
**CURRENT ASSETS**
Debtors
6
Stock
Cash at bank
**CURRENT LIABILITES**
CREDITORS: Amounts falling due within one year
7
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**FUNDS**
Unrestricted:
General Funds
10
Designated Funds
10
Restricted
10
**Total Charity Funds**|**2021**
**£**
56,550
97,950
4,205
931,778
1,033,933
(254,278)
779,655
**836,205**
356,310
454,136
25,759
**836,205**|**2020**
**£**
64,495|
|---|---|---|
|||55,731
7,732
814,148|
|||877,611
(203,858)|
|||673,753|
||||
|||**738,248**|
|||356,310
356,179
25,759|
|||**738,248**|
The financial statements were approved and authorised for issue by the Board of Directors on 21st September 2021 and were signed on its behalf by:
…………………………………….
## John O’Connor - Chairman
The accompanying notes form part of these financial statements
Company Registration No: 2011514
The Round Square - Financial Statements for the year ended 31 July 2021
Page 16
## **THE ROUND SQUARE**
## **STATEMENT OF CASH FLOWS**
## **FOR YEAR ENDED 31 JULY 2021**
|**2021**
**£**
**Cash Flows from Operating Activities**
**_Net cash provided by activities_**
**117,422**
**Cash flows from investing activities:**
Purchase of fixed assets
-
Bank interest
208
Change in cash & cash equivalents in the reporting period
117,630
Cash and Cash equivalents at the beginning of the reporting period
814,148
**Cash and cash equivalents at the end of the reporting period**
**931,778**
**Reconciliation of net income to net cash flow from operating activities**
**2021**
**£**
**Net income for the reporting period (as per Statement of Financial**
**Activities)**
**97,957**
Adjustments for:
Depreciation charges
7,945
Bank interest
(208)
Decrease in stocks
3,527
(Increase)/decrease in debtors
(42,219)
Increase/(decrease) in creditors
50,420
**Net cash provided by operating activities**
**117,422**|**2020**
**£**
**8,170**
(1,662)
1,532|
|---|---|
||8,040
806,108|
||**814,148**|
||**2020**
**£**
**2,056**
7,315
(1,532)
9,744
15,242
(24,655)|
||**8,170**|
The Round Square - Financial Statements for the year ended 31 July 2021
Page 17
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **1. ACCOUNTING POLICIES**
## **(a) Basis of preparation and going concern**
The Financial 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) – (Charities SORP (FRS 102)) Second Edition, effective 1 January 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Charity constitutes a public benefit entity as defined in FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy below.
The Board of Trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The review of our financial position, reserves levels and future plans gives Trustees confidence the Charity remains a going concern for the foreseeable future. Financial projections have been subjected to detailed risk assessments, including significant reductions in income relating to either the ongoing pandemic or other adverse international scenarios, and it is considered that the Charity would remain going concern even in that event.
The particular accounting policies adopted are described below.
## **(b) Income**
Income is recognised when the charity has an entitlement to the funds, it is probable that the income will be received and the amount can be reliably measured. Donations are included in full in the Statement of Financial Activities when there is an entitlement, probability of receipt and the amount of income receivable can be measured reliably.
## U.K. Government grants, such as CJRS (Covid job retention scheme), are recognised as ‘other income.’
All subscription income relating to the financial period covered by this report is recorded in the Statement of Financial Activities. Any membership income relating to the subsequent financial year is treated as deferred income.
Project income is recognised in the Statement of Financial Activities when the project occurs. Any project income relating to the subsequent financial year is treated as deferred income.
Income from other trading activities is recognised as earned as the related goods are provided.
Investment income is bank interest and is recognised on a receivable basis once the amounts can be measured reliably.
## **(c) Expenditure**
Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably.
The Round Square - Financial Statements for the year ended 31 July 2021
Page 18
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
Expenditure is accounted for on an accruals basis and is allocated to expense headings either on a direct cost basis or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates. Charitable activities relate to costs incurred in delivering the charity’s activities and services to its beneficiaries. General support costs include salaries and office costs. Governance costs are costs incurred in meeting the constitutional and statutory requirements.
General support costs and Governance costs have been allocated to each of the Charitable activities based on an apportionment of time. This is disclosed in Note 3 of the accounts.
## **(d) Stock**
Stock is valued at the lower of cost and net realisable value.
## **(e) Financial instruments**
The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **(f) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **(g) Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term deposits with a short maturity of three months or less from the date of opening of the deposit or similar account.
## **(h) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third-party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are formally recognised at their settlement amount after allowing for any trade discounts due.
## **(i) Employee benefits**
Short term benefits: Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.
Employee termination benefits: Termination benefits are accounted for on an accruals basis and in line with FRS 102.
The Charity operates a NEST pension plan. Contributions to the scheme are recognised as they fall due.
## **(j) Operating lease rentals**
Rentals under operating leases are charged to the profit and loss account as they fall due.
The Round Square - Financial Statements for the year ended 31 July 2021
Page 19
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
Any rent-free periods are allocated over the life of the lease and the creditor released annually.
## **(k) Fixed assets and depreciation**
Individual fixed assets costing £1,500 or more are capitalised at cost and depreciated over their useful economic life on a straight-line basis as follows:
Office equipment 10% per annum
Where the purchase price is below £1,500 the item will be written off in full during the reported year.
## **(l) Funds**
Unrestricted funds are funds that can be used in accordance with the charitable objects at the discretion of the trustees. Designated funds are funds set aside by the trustees out of unrestricted general funds for specific future purposes. Restricted funds arise when funds can be used only for a specific purpose, either as specified by the donor or in accordance with the terms for which they were raised.
## **(m) Foreign currencies**
Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date. Any exchange differences arising from the translation are dealt with in the Statement of Financial Activities.
## **(n) Accounting judgements and estimates**
In preparing these financial statements, management has made judgements, estimates and assumptions in the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates, assumptions and judgements are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable. The trustees do not consider there to be any significant estimates and judgements.
## **2a. INCOME FROM CHARITABLE ACTIVITIES**
|Subscription Income
RSIS Project Income
Conference Income
Insurance payment in respect of RSIS|**2021**
**2020**
**£**
**£**
1,064,219
1,015,378
-
45,488
-
44,315
17,161
-|
|---|---|
||**1,081,380**
**1,105,181**|
The Round Square - Financial Statements for the year ended 31 July 2021
Page 20
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **2b. DONATIONS AND GRANTS**
|**2c. INVESTMENT INCOME**
Bank interest
**2d. INCOME FROM OTHER TRADING ACTIVITIES**
Sale of merchandise
Donations (Discovery Fund)
School Donation
Coronavirus Job Retention Scheme Grant||**2021**
**2020**
**£**
**£**
6,319
31,684
-
56,693
5,808
18,697|
|---|---|---|
|||**12,127**
**107,074**|
|||**2021**
**2020**
**£**
**£**
**208**
**1,532**|
|||**2021**
**2020**
**£**
**£**
**1,491**
**4,705**|
## **3. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES**
|**Charitable activities**
Membership – Support & Recruitment
Research & Development
Digital & Other Communications
Conference Expenditure|**Basis of**
**apportionment**
**Activity**
**Costs**
**General**
**Support**
**Governance**
**Total**
**£**
**£**
**£**
**£**
5,426 373,546
4,680
383,652 Resource 45%
72,496
174,322
2,184
249,002 Resource 21%
10,654
199,225
2,497
212,376 Resource 24%
68,169
83,010
1,040
152,219 Resource 10%
156,745
830,103
10,401
997,249|
|---|---|
For comparative figures from 2020 see note 13.
The General Support costs include salaries to employees and payments to contractors who carry out significant work on behalf of the charity totalling £696,244 (2020 £685,941). (see NOTE 4.)
The Round Square - Financial Statements for the year ended 31 July 2021
Page 21
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **ANALYSIS OF GOVERNANCE COSTS**
|Board meeting expenses
Audit and accountancy
Legal costs
**3. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES (continued)**
Net movement in funds is stated after charging:
Operating leases – premises
Fees paid to auditors - audit
- other
Depreciation
**4. STAFF COSTS AND TRUSTEES EMOLUMENTS**
Wages and salaries
Social Security Costs
Pension Costs
Contractor costs|**2021**
**2020**
**£**
**£**
(222)
37,759
8,450
9,864
2,173
13,521|
|---|---|
||10,401
61,144|
||**2021**
**2020**
**£**
**£**
63,126
69,784
8,450
6,660
-
3,264
7,945
7,315
**2021**
**2020**
**£**
**£**
386,109
437,458
40,082
46,072
23,423
25,953|
||449,614
509,483|
||246,630
176,458|
||**696,244**
**685,941**|
The pension costs include contributions to NEST pension plan (auto-enrolment) and one employee's personal pension plan.
The average number of employees during the year was 8 (2020: 8) with all employee time involved in providing support services to charitable activities.
The number of employees who received emoluments exceeding £60,000 was:
|||**2021**|**2020**|
|---|---|---|---|
|£130,000|- £140,000|1|1|
## **Related Party Transactions**
The Board considers its key management personnel comprise the Worldwide Management team and the total emoluments for these individuals were £696,244 (2020 £685,941).
The Round Square Board of Trustees received no reimbursed expenses relating to the work of the Charity during the reported year (2020 £2,409). There were no transactions with trustees in the year.
The Round Square - Financial Statements for the year ended 31 July 2021
Page 22
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **5. TANGIBLE FIXED ASSETS**
|**Office Equipment, Fixtures and Fittings**
**Cost**
At 1 August 2020
Additions
Disposals
At 31 July 2021
**Depreciation**
At 1 August 2020
Depreciation
Disposals
At 31 July 2021
**Net book value**
**6. DEBTORS**
Trade debtors
Less Provision for bad debts
Other debtors
Prepayments and accrued income
**7. CREDITORS: Amounts falling due within one year**
Trade creditors
Subscriptions received in advance
Project monies in advance
Other taxes and social security
Other creditors
Accruals|**2021**
**£**
74,835
-
-
**74,835**
10,340
7,945
-
**18,285**
**56,550**
**2021**
**£**
8,238
(1,998)
816
90,894
**97,950**
**2021**
**£**
44,024
133,779
-
13,858
9,015
53,602
**254,278**||**2020**
**£**
73,173
1,662
-|
|---|---|---|---|
||||**74,835**|
||||3,025
7,315
-|
||||**10,340**|
|||||
||||**64,495**|
||||**2020**
**£**
36,620
(30,676)
1,166
48,621|
||||**55,731**|
||||**2020**
**£**
4,195
140,173
8,112
-
16,502
34,876|
||||**203,858**|
Prior year’s subscription and project income of £140,173 were all released to SOFA this year. Deferred subscription received in advance during this year £133,779 will be released on an activity basis.
The Round Square - Financial Statements for the year ended 31 July 2021
Page 23
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **8. TAXATION**
The company is a Registered Charity (No. 327117) and is not liable to tax on its surpluses generated by charitable activities.
## **9. CONSTITUTION**
The company is limited by guarantee. The maximum liability of each member on winding up is £1.
## **10. FUNDS**
|**Unrestricted Funds**
General Funds
**Designated Funds**
Project Development Fund
Discovery Fund
**Restricted Funds**
Hill Trust
Prince Alexander|**Balance at**
**Transfers**
**Balance at**
**1 August**
**Income**
**Expenditure**
**between**
**31 July**
**2020**
**Funds**
**2021**
**£**
**£**
**£**
**£**
**£**
356,310 1,088,887
997,249
(91,638)
356,310
106,467
-
-
91,638
198,105
249,712
6,319
-
-
256,031
2,111
-
-
-
2,111
23,648
-
-
-
23,648|
|---|---|
||**738,248 1,095,206**
**997,249**
**-**
**836,205**|
Please refer to note 14 for comparison figures.
The Round Square - Financial Statements for the year ended 31 July 2021
Page 24
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **Restricted Funds:**
The Hill Trust relates to donations received towards the provision of bursary support for students that could not otherwise afford to participate in RSIS projects.
The Prince Alexander Project fund was created to generate funds for the building materials (bricks and mortar) element of the Round Square International Service (RSIS) projects, and is no longer receiving income donations and will be spent out over the coming years. It is not used for administrative purposes.
## **Designated Funds:**
The Project Development Fund represents monies that the trustees have earmarked for organisational development projects.
The Discovery Fund has been designated to accept donations from Member Schools to Round Square, and from other income sources, and will be used to fund a variety of support programmes e.g. RSIS Project and Conference activity including building materials and tools, transport of those materials and tools to project sites and bursaries for students that could not otherwise afford to participate in RSIS projects or the RSIC.
As Round Square is a Charitable Trust, the accumulated funds do not belong to the members. If, upon the winding-up or dissolution of the Trust there remains, after satisfaction of all debts and liabilities, any property whatsoever, then, under the terms of the company's memorandum, this must be transferred to some other charitable institution having similar charitable objects to the company. All unrestricted reserves are held for supporting the charitable objectives of the company.
## **11. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Unrestricted funds:
- General
- Designated
Restricted Funds|**Fixed**
**assets**
**£**
56,550
-
-
**56,550**|**Net**
**Current**
**Assets**
**£**
299,760
454,136
25,759
**779,655**|**Total**
**£**
356,310
454,136
25,759|
|---|---|---|---|
||||**836,205**|
Please refer to note 15 for comparison figures.
The Round Square - Financial Statements for the year ended 31 July 2021
Page 25
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **12. OPERATING LEASES**
The Charity entered into an operating lease rental agreement on 22 February 2020. The term ends on 21 February 2029. The outstanding commitment at 31 July 2021 is £382,731, which is the entire commitment over the life of the lease (with an annual rent of £50,470).
## **13. COMPARATIVE ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES – YEAR ENDED 31 JULY 2020**
|**Charitable activities**
Membership – Support & Recruitment
Research & Development
Digital & Other Communications
RSIS Project Expenditure
Conference Expenditure|**Basis of**
**apportionment**
**Activity**
**Costs**
**General**
**Support**
**Governance**
**Total**
25,190
414,663
27,515
467,368 Resource
45%
21,426
101,362
6,726
129,514 Resource
11%
13,945
129,006
8,560
151,511 Resource
14%
112,063
184,294
12,229
308,586 Resource
20%
61,194
92,148
6,115
159,457 Resource
10%
233,818
921,473 61,145
1,216,436|
|---|---|
## **14. COMPARATIVE ANALYSIS OF FUNDS – YEAR ENDED 31 JULY 2020**
|**Unrestricted Funds**
General Funds
**Designated Funds**
Project Development Fund
Discovery Fund
**Restricted Funds**
Hill Trust
Prince Alexander Fund|**Balance at**
**Transfers**
**Balance at**
**1 August**
**Income**
**Expenditure**
**between**
**31 July**
**2019**
**Funds**
**2020**
**£**
**£**
**£**
**£**
**£**
369,938 1,186,808
1,200,436
-
356,310
106,467
-
-
- 106,467
218,028
31,684
- -
249,712
2,111
-
-
- 2,111
39,648
-
16,000
-
23,648|
|---|---|
||**736,192**
**1,218,493**
**1,216,436**
**-**
**738,248**|
The Round Square - Financial Statements for the year ended 31 July 2021
Page 26
## **THE ROUND SQUARE**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **15. COMPARATIVE ANALYSIS OF NET ASSETS BETWEEN FUNDS – YEAR ENDED 31 JULY 2020**
|Unrestricted funds:
- General
- Designated
Restricted Funds
|**Fixed**
**assets**
**£**
64,495
-
-
**64,495**|**Net**
**Current**
**Assets**
**£**
291,815
356,179
25,759
**673,753**|**Total**
**£**
356,310
356,179
25,759|
|---|---|---|---|
||||**738,248**|
## **16. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES**
|**INCOME & EXPENDITURE**
**Notes**
**Income from:**
Charitable activities
2a
Donations and grants
2b
Investment Income
2c
Other
2d
**Expenditure on:**
Charitable activities
3
**Net income**
Transfer between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Total funds carried forward|**Unrestricted**
**Funds**
**£**
1,105,181
75,390
1,532
4,705|**Designated**
**Restricted**
**Funds**
**Funds**
**£**
**£**
-
-
31,684
-
-
-
-
-|**2020**
**Total**
**£**
1,105,181
107,074
1,532
4,705|
|---|---|---|---|
||**1,186,808**|**31,684**
**-**|**1,218,492**|
||1,200,436|-
16,000|1,216,436|
||**1,200,436**|**- 16,000**|**1,216,436**|
||(13,628)
-|31,684
(16,000)
-
-|2,056
-|
||(13,628)
369,938|31,684 (16,000)
324,495
41,759|2,056
736,192|
||**356,310**|**356,179**
**25,759**|**738,248**|
The Round Square - Financial Statements for the year ended 31 July 2021
Page 27