**REGISTERED CHARITY NUMBER: 526315**
**The Lytham Schools Foundation Report of the Trustee and**
**Audited Financial Statements for the Year Ended 31 December 2021**
McMillan & Co LLP Chartered Accountants and Statutory Auditor 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR7 7NA
**The Lytham Schools Foundation**
**Contents of the Financial Statements for the year ended 31 December 2021**
**Report of the Trustee Report of the Independent Auditors Statement of Financial Activities Balance Sheet Notes to the Financial Statements**
**Page** 1 to 5 6 to 9 10 11 12 to 20
## **The Lytham Schools Foundation**
## **Report of the Corporate Trustee for the year ended 31 December 2021**
The corporate trustee presents its report with the financial statements of the charity for the year ended 31 December 2021. The trustee has adopted the provisions of the Charities Statement of Recommended Practice (SORP) FRS 102 'Accounting and Reporting by Charities' effective 1 January 2019.
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The objects of the charity are for the public benefit to advance education in or near Lytham St Anne's including by, but not limited to, the provision of land, buildings and other facilities for the purposes of a school or schools and the provision of means-tested bursaries and other financial awards to children and young people residing in or near Lytham St Anne's in need of financial assistance for the purpose of assisting with the costs of their education (including extra-curricular activities undertaken for educational purposes).
## **Public benefit**
The main activities undertaken to further the Charity’s purposes for the public benefit are financial support for groups and projects that advance the education of children and young people in the area of operation.
The corporate trustee confirms that it has referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives.
## **Grantmaking**
The grant making policy is to make grants to local schools and educational groups.
A grant is made to AKS Lytham - Independent School to support bursaries.
Grants are made to certain primary schools to meet the Governors 10% liability, currently only applied to capital or large repairs (over £2,000).
Grants to local schools and educational groups are considered on their merit, having received a duly completed application. The aim is to provide facilities giving the widest possible benefit where other funding cannot be sought or found.
Individuals also apply using a prescribed application form, and support would be given where there is obvious benefit which the family cannot themselves provide - music and the arts are likely to be such candidates. The Charity also considers where a young person is eligible for a bursary at AKS, and would benefit particularly from the opportunities available there and not readily obtainable elsewhere, and United Learning Trust do not have the resources to fully fund them themselves.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
As the Foundation is no longer responsible for the running of the old KEQMS school the corporate trustee is able to focus on a wider use of its resources. However at AKS the corporate trustee has negotiated that the school will provide bursarial support, i.e. subject to a means test, that will provide that at least 10% of all pupils can be educated at no cost. This fee support will probably total over £600,000 pa, which will include our donation to AKS for this year of £122,985 (2020: £187,710).
With reference to the primary schools, the Foundation do have some commitments by which it meets a proportion of quasi capital repair bills on behalf of the Governors based on the Department for Education criteria for voluntary aided schools, and in the past have also insured all the buildings. Whilst the Foundation do not have a commitment to any major capital expenditure, it may support projects if considered in line with our objectives.
Turning to the Foundations new wider support opportunities, in addition to the above, £366,265 (2020: £277,970) of grants have been allocated for educational projects in the Lytham St. Anne's area over the last twelve months.
## **Investment performance**
The Foundation has property investments, including the schools, valued in these accounts at £11.5 million (2020: £9.7 million) and substantial shareholding investments, valued at £6.5 million (2020: £5.3 million) in these accounts. The income from these investments can be used to meet the Foundation's objectives.
Page 1
## **The Lytham Schools Foundation**
## **Report of the Corporate Trustee for the year ended 31 December 2021**
## **FINANCIAL REVIEW**
## **Investment policy and objectives**
The Charity holds investments of £18,381,000 (2020: £15,372,000) which is split as £6,498,000 (2020: £5,251,000) in tradable securities, a loan balance of £350,000 (2020: £375,000) and £11,533,000 (2020: £9,747,000) in investment properties. The corporate trustee has the power to invest in such stocks, shares, investments and property in the UK as its directors see fit and in accordance with the Charities' legislation. In addition to the investments there is also cash held by investment managers of £390,000 (2020: £15,000).
Canaccord Genuity manage the investment portfolio which is to be managed on a bespoke basis, but broadly in line with the WMA Balanced Index. Depending upon market conditions and the relative attractiveness of different asset classes the weightings may deviate from WMA if deemed to be in the best interests of the Charity. The portfolio will generally be invested in direct holdings via a mix of blue chip equities (although permitted to invest in FTSE250 as medium risk), preference shares and bonds.
Given that there will be a bias towards large-cap companies which by definition are usually multi-national in nature, thus providing exposure to most major global economies, specific direct overseas investments are unlikely to be considered.
Canaccord Genuity select investments using their own internal research, together with third party research from Investment Banks and other similar institutions. Collectives may be used if deemed in the best interests in the circumstances. When selecting collectives, this will be done taking into account past performance, any discounts to NAV, along with investment strategy. Where possible these will be selected from the central Canaccord Genuity approved list, although we may choose investments from outside the list if appropriate.
Given that the WMA Balanced Index includes alternative investments such as commercial property and hedge funds, these will be included in the portfolio through REITS and hedge fund managers if deemed appropriate. As such, property and hedge fund elements are to be included within the equity element of the portfolio so that the long term asset allocation in normal circumstances is defined above.
The investment objective is to provide sufficient growth to protect the fund against the effects of inflation in the medium to long term. This is subject to change should there be any requirement for large capital outlay. The Trustee accept that to achieve the long term capital growth and a real return over inflation the fund must be subjected to the risks associated with asset backed investments and investing in business through loans and equity holdings. The corporate trustee is not averse to the concept of an element of investment risk but wish the fund to be balanced to reduce the overall effect of that risk.
The assets held by the investment managers were invested at the year end in accordance with the following profile;
- 52.5% - 72.5% UK and international fixed interest
- 7.5% - 27.5% UK and international equities - 0% - 20% Structured Return, Property, Hedge Funds and other
- 0% - 20% Cash
It should be noted that in arriving at the above, the corporate trustee and investment managers are aware that The Lytham Schools Foundation holds further cash for its short term needs and investment properties.
The investment properties are held both to provide income through the rents and also for their long term capital growth.
Page 2
## **The Lytham Schools Foundation**
## **Report of the Corporate Trustee for the year ended 31 December 2021**
## **FINANCIAL REVIEW**
## **Reserves policy**
The aim is to keep sufficient reserves to generate an income sufficient to allow future charitable grant making activities. It is anticipated that the level of grant making expenditure will increase as the aims of the Charity become more widely known.
The funds in the financial statements are defined as:-
## **General Fund and Investment Asset Fund**
These funds are unrestricted and are used for all charitable purposes without restriction in accordance with the governing documents. Amounts held in these funds as at 31 December 2021 were £5,264,146 and £11,533,310 (2020: £4,988,200 and £9,746,648) respectively.
## **Restricted Fund - AKS**
This fund is for provision of support for the seven funds and trusts for the specific benefit of AKS Independent School. The amount held in this fund as at 31 December 2021 was £1,166,120 (2020: £108,169).
## **Endowment Fund - AKS**
This fund is for the capital amounts from which the income is allocated to the Restricted Fund above. The amount held in this fund as at 31 December 2021 was £297,705 (2020: £271,936).
Further details of restricted funds are included in note 14.
## **Review of the year**
The Charity had net income after realised and unrealised gains on investment assets of £3,146,328 (2020: net expenditure £210,222).
## **Investment performance**
The listed investments have increased in value by 23.8% (2020: 3.5% increase). This includes a one of addition in the year of £1,047,000 from the legacy donation received.
## **FUTURE PLANS**
Further grant applications for educational projects in the Lytham St. Anne's area have been approved but not yet paid. The trustee is excited at the future prospects for supporting education.
The Charity has current grant commitments to Department for Education, Lytham St. Anne's High School Sports Hall (£200,000), AKS Supplementary Bursaries (£77,139), Fairhaven Lake (£5,000) and Heyhouses Endowed CE Primary (£38,578), Homestart BFW Infant Mental Health Project (£15,000), Lytham St Anne's High School Coronavirus (£30,000),St Bede's RC High School Coronavirus (£13,250), The Karate Kid (£10,000), CN Sports Primary School Football Kit and Equipment (£3,000), Lytham C of E Nursery (£123,121), and Clerking Office (£900) . All such commitments have been provided for in these financial statements.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is governed by a Scheme dated 11 November 2011 (as amended by an order of the First Tier Tribunal (Charity) dated 31 August 2012 and a resolution of the Trustee dated 4 October 2012).
## **Recruitment and appointment of new directors of the corporate trustee**
The Lytham Schools Trustee Limited is the corporate trustee for The Lytham Schools Foundation and the directors of that company must ensure that the corporate trustee follows the best practice of a charity trustee for the Foundation. Marjorie Towers is the chairman of the company and Clive Barnes is the vice chairman.
The directors of The Lytham Schools Trustee Limited are appointed in accordance with the Memorandum and Articles of Association of that company.
The Charity continues to look for appropriate people with relevant experience to be directors of The Lytham Schools Trustee Limited.
Page 4
## **The Lytham Schools Foundation**
## **Report of the Corporate Trustee for the year ended 31 December 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure**
The Lytham Schools Foundation, which was founded over 300 years ago, has as its primary objective the provision of education for those in the Lytham St. Anne's area (based on the ancient parish of Lytham). It owns three schools - AKS (the old KEQMS school) which in 2011 it leased to United Learning Trust, and two primary schools - Lytham C of E and Heyhouses, which are run by the Blackburn Diocesan Board of Education and Lancashire Education Committee. The Foundation now therefore has no involvement in the day to day running of these schools.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 526315
## **Principal address**
Bank House 9 Dicconson Terrace Lytham Lytham St Anne's Lancashire FY8 5JY
## **Trustee**
The Lytham Schools Trustee Limited
## **Auditors**
McMillan & Co LLP Chartered Accountants and Statutory Auditor 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR7 7NA
## **Solicitors**
Dickinsons Solicitors 24 Park Road St. Anne's-on-the-Sea Lytham St. Anne's Lancashire FY8 1PA
Veale Wasborough Vizards Orchard Court Orchard Lane Bristol BS1 5WS
Page 4
## **The Lytham Schools Foundation**
## **Report of the Corporate Trustee for the year ended 31 December 2021**
## **REFERENCE AND ADMINISTRATIVE DETAILS Bankers**
HSBC Bank plc 1 Newhouse Road Oxford Square Blackpool Lancashire FY4 4YH
## **Investment managers**
Canaccord Genuity Talisman House Boardmans Way Blackpool Lancashire FY4 5FY
CCLA Senator House One Angel Lane London EC4R 3AB
## **STATEMENT OF TRUSTEE’S RESPONSIBILITIES**
The corporate trustee is responsible for preparing the Report of the Corporate Trustee and the financial 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, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustee to prepare financial statements for each financial 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, including the income and expenditure, of the charity for that period. In preparing those financial statements, the corporate trustee is required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity 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;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The corporate trustee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the Board of Directors of the Corporate Trustee on 21 September 2022 and signed on its behalf by:
J Marjorie Towers - Director On behalf of The Lytham Schools Trustee Limited - Trustee
Page 5
**Report of the Independent Auditors to the Trustee of The Lytham Schools Foundation**
## **Opinion**
We have audited the financial statements of The Lytham Schools Foundation (the 'charity') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources, 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 Charities Act 2011.
## **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 Auditors' responsibilities for the audit of the financial 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 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 charity'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 corporate trustee with respect to going concern are described in the relevant sections of this report.
## **Other information**
The corporate trustee is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Report of the Corporate Trustee is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
Page 6
## **Report of the Independent Auditors to the Trustee of The Lytham Schools Foundation**
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the corporate trustee is responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the corporate trustee is 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 corporate trustee either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Page 7
**Report of the Independent Auditors to the Trustee of The Lytham Schools Foundation**
## **Our responsibilities for the audit of the financial statements**
We have been appointed as auditors 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 financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships; and
- tested journal entries to identify unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Page 8
## **Report of the Independent Auditors to the Trustee of The Lytham Schools Foundation**
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 Report of the Independent Auditors.
## **Use of our report**
This report is made solely to the charity's corporate trustee, 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 corporate trustee 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 corporate trustee, for our audit work, for this report, or for the opinions we have formed.
McMillan & Co LLP Chartered Accountants and Statutory Auditor
Date: 21 September 2022
Page 9
## **The Lytham Schools Foundation**
## **Statement of Financial Activities for the year ended 31 December 2021**
|Unrestricted
funds
Notes
£
**INCOME AND**
**ENDOWMENTS FROM**
Donations and legacies
2
**-**
Investment income
3
**472,655**
**Total**
**472,655**
**EXPENDITURE ON**
Raising funds
4
**12,392**
**Charitable activities**
5
Education
**536,367**
Other
**3,156**
**Total**
**551,915**
Net gains/(losses) on
investments
**2,141,868**
**NET**
**INCOME/(EXPENDITURE)**
**2,062,608**
**RECONCILIATION OF**
**FUNDS**
**Total funds brought**
**forward**
**14,734,848**
**TOTAL FUNDS CARRIED**
**FORWARD**
**16,797,456**|Restricted
funds
£
**1,047,000**
**8,860**
**1,055,860**
**3,367**
**12,823**
**-**
**16,190**
**18,281**
**1,057,951**
**108,169**
**1,166,120**|Endowment
funds
£
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**25,769**
**25,769**
**271,936**
**297,705**|**2021**
**Total**
**funds**
**£**
**1,047,000**
**481,515**
**1,528,515**
**15,759**
**549,190**
**3,156**
**568,105**
**2,185,918**
**3,146,328**
**15,114,953**
**18,261,281**|2020
Total
funds
£
-
347,035
347,035
13,771
502,080
3,156
519,007
(38,250)
(210,222)
15,325,175
15,114,953|
|---|---|---|---|---|
The notes form part of these financial statements
Page 10
## **The Lytham Schools Foundation**
## **Balance Sheet 31 December 2021**
|Unrestricted
funds
Notes
£
**FIXED ASSETS**
**Investments**
Investments
10
**5,510,551**
Investment property
11
**11,533,310**
**17,043,861**
**CURRENT ASSETS**
Debtors
12
**7,686**
Cash at bank
**268,053**
**275,739**
**CREDITORS**
Amounts falling due within
one year
13
**(522,144)**
**NET CURRENT ASSETS**
**(246,405)**
**TOTAL ASSETS LESS**
**CURRENT LIABILITIES**
**16,797,456**
**NET ASSETS**
**16,797,456**
**FUNDS**
14
Unrestricted funds
Restricted funds
Endowment funds
**TOTAL FUNDS**|Restricted
funds
£
**1,063,821**
**-**
**1,063,821**
**-**
**102,299**
**102,299**
**-**
**102,299**
**1,166,120**
**1,166,120**|Endowment
funds
£
**273,627**
**-**
**273,627**
**-**
**24,078**
**24,078**
**-**
**24,078**
**297,705**
**297,705**|**2021**
**Total**
**funds**
**£**
**6,847,999**
**11,533,310**
**18,381,309**
**7,686**
**394,430**
**402,116**
**(522,144)**
**(120,028)**
**18,261,281**
**18,261,281**
**16,797,456**
**1,166,120**
**297,705**
**18,261,281**|2020
Total
funds
£
5,625,335
9,746,648
15,371,983
7,842
57,955
65,797
(322,827)
(257,030)
15,114,953
15,114,953
14,734,848
108,169
271,936
15,114,953|
|---|---|---|---|---|
The financial statements were approved by the Board of Directors’ of the Corporate Trustee and authorised for issue on 21 September 2022 and were signed on its behalf by:
J Marjorie Towers - Director
On behalf of The Lytham Schools Trustee Limited - Trustee
The notes form part of these financial statements
Page 11
**The Lytham Schools Foundation**
## **Notes to the Financial Statements for the year ended 31 December 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
The presentational currency of the charity is pound sterling (£).
The amounts in the financial statements have been rounded to the nearest £1.
There are no material uncertainties about the charity's ability to continue.
The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
- the requirements of Section 7 Statement of Cash Flows.
## **Financial instruments**
Financial instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
## **Investment property**
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustee.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Page 12
continued...
**The Lytham Schools Foundation**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Fund accounting**
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **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 subsequent to the first day of the financial 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.
## **Investments**
The investments are included at closing mid-market value at the balance sheet date. The cost of investments includes commission paid to the investment managers. Any gain or loss or revaluation is taken to the Statement of Financial Activities.
|**2.**
**DONATIONS AND LEGACIES**
Restricted legacy donation
**3.**
**INVESTMENT INCOME**
Rents receivable
Investment income
**4.**
**RAISING FUNDS**
**Investment management costs**
Investment manager's fees|**2021**
**£**
**1,047,000**
**2021**
**£**
**128,217**
**353,298**
**481,515**
**2021**
**£**
**15,759**|**2021**
**£**
**1,047,000**
**2021**
**£**
**128,217**
**353,298**
**481,515**
**2021**
**£**
**15,759**||2020
£
-
2020
£
115,803
231,232
347,035
2020
£
13,771|
|---|---|---|---|---|
||||||
||||||
Page 13
continued...
## **The Lytham Schools Foundation**
## **Notes to the Financial Statements - continued**
## **for the year ended 31 December 2021**
## **5. CHARITABLE ACTIVITIES COSTS**
|Direct
Costs
£
Education
**59,940**
**6.**
**GRANTS PAYABLE**
Education
The total grants paid to institutions during the year was as follows:
Fylde Borough Council - Fairhaven Lake Project
Aspired Futures - Happy 2 Learn
Heyhouses CE Nursery
Heyhouses Ecopod
Scouts Kayak Trailer
BDBE Governors 10% of roof
Lytham School Hall
Post Graduate Bursaries
Church Schools Event
Homestart Grant
The Karate Kid
Lytham CE Primary School - Governors Share
Lytham CE Primary School - Essential building repairs
Lytham CE Nursery
St Bede's - Coronavirus
Lytham St Anne's High - Coronavirus
Heyhouses Endowed CE Primary School - Governors share
AKS Lytham Independent School - Supplementary Bursaries
AKS Lytham Independent School - Bursaries (Contra Rent)
Homestart BFW Infant Mental Health Project
Pandemic Support
CN Sports - Primary School Football Kit and Equipment
Lytham St. Anne's High School Sports Hall|Grant
funding of
activities
(see note
6)
Totals
£
£
**489,250**
**549,190**
**2021**
2020
**£**
£
**489,250**
465,580
**2021**
2020
**£**
£
**-**
5,000
**(24,960)**
24,960
**8,000**
-
**23,420**
-
**-**
950
**1,064**
-
**3,383**
-
**-**
3,500
**-**
1,000
**-**
5,000
**-**
15,000
**1,737**
17,906
**29,000**
-
**123,121**
-
**500**
39,000
**-**
30,000
**-**
77,597
**-**
77,139
**122,985**
110,571
**-**
15,000
**-**
38,057
**1,000**
5,000
**200,000**
-
**489,250**
**465,680**|
|---|---|
The charity has opted to use the available disclosure exemption provided by Charity law to charitable trusts registered in England and Wales from providing the names of grant recipients and the amounts of such grants during the lifetime of the settlor who donated the funds from which the grants are paid or during the lifetime of any spouse or civil partner of the settlor.
Page 14
continued...
**The Lytham Schools Foundation**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **7. SUPPORT COSTS**
Other resources expended
Governance costs £ **3,156**
Auditors remuneration for the year was £3,156 (2020: £3,156).
## **8. TRUSTEE REMUNERATION AND BENEFITS**
There were no trustee remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.
During the year £39,600 (2020: £32,400) was paid to Mr ME Gunson as clerk to the Foundation, covering all administrative services provided. Mr ME Gunson is also a director and company secretary of The Lytham Schools Trustee Limited.
## **Trustee expenses**
There were no trustee expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.
|**9.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
Restricted
funds
funds
£
£
**INCOME AND ENDOWMENTS FROM**
Investment income
339,097
7,938
**EXPENDITURE ON**
Raising funds
11,714
2,057
**Charitable activities**
Education
517,678
(15,598)
Other
3,156
-
**Total**
532,548
(13,541)
Net gains/(losses) on investments
(30,452)
(1,885)
**NET INCOME/(EXPENDITURE)**
(223,903)
19,594
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
14,958,751
88,575
**TOTAL FUNDS CARRIED FORWARD**
14,734,848
108,169|
Endowment
funds
£
-
-
-
-
-
(5,913)
(5,913)
277,849
271,936|
Total
funds
£
347,035
13,771
502,080
3,156
519,007
(38,250)
(210,222)
15,325,175
15,114,953|
|---|---|---|
Page 15
continued...
## **The Lytham Schools Foundation**
## **Notes to the Financial Statements - continued**
## **for the year ended 31 December 2021**
|**10.**
**FIXED ASSET INVESTMENTS**
Shares
Loans
**MARKET VALUE**
At 1 January 2021
Additions
Disposals
Change in value
At 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020
At 1 January 2021
Repayments in year
At 31 December 2021|**2021**
2020
**£**
£
**6,497,999**
5,250,835
**350,000**
374,500
**6,847,999**
5,625,335
Listed
investments
£
**5,250,835**
**1,111,174**
**(536,707)**
**672,697**
**6,497,999**
**6,497,999**
5,250,835
Other loans
£
**374,500**
**(24,500)**
**350,000**|
|---|---|
There were no investment assets outside the UK.
The historical cost of listed investments at the year end is £3,671,940 (2020: £3,203,008).
Page 16
continued...
## **The Lytham Schools Foundation**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
|**11.**
**INVESTMENT PROPERTY**
**FAIR VALUE**
At 1 January 2021
Revaluation
At 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020|**£**
**9,746,648**
**1,786,662**
**11,533,310**
**11,533,310**
9,746,648|
|---|---|
The investment properties have been valued by Robert Pinkus & Co LLP Chartered Surveyors at market value at 18 October 2021. The corporate trustee believes that the market value has not materially changed since this valuation.
## **12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Other debtors
**13.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other creditors|**2021**
**£**
**7,686**
**2021**
**£**
**522,144**|2020
£
7,842
2020
£
322,827|
|---|---|---|
Page 17
continued...
## **The Lytham Schools Foundation**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
|**14.**
**MOVEMENT IN FUNDS**
At 1/1/21
£
**Unrestricted funds**
General fund
**14,734,848**
**Restricted funds**
Funds designated exclusively for AKS
**108,169**
**Endowment funds**
Capital accumulation fund
**271,936**
**TOTAL FUNDS**
**15,114,953**
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
**Unrestricted funds**
General fund
**472,655**
**(551,915)**
**Restricted funds**
Funds designated exclusively for AKS
**1,055,860**
**(16,190)**
**Endowment funds**
Capital accumulation fund
**-**
**-**
**TOTAL FUNDS**
**1,528,515**
**(568,105)**
**Comparatives for movement in funds**
At 1/1/20
£
**Unrestricted funds**
General fund
14,958,751
**Restricted funds**
Funds designated exclusively for AKS
88,575
**Endowment funds**
Capital accumulation fund
277,849
**TOTAL FUNDS**
15,325,175||Net
movement
in funds
£
**2,062,608**
**1,057,951**
**25,769**
**3,146,328**
Gains and
losses
£
**2,141,868**
**18,281**
**25,769**
**2,185,918**
Net
movement
in funds
£
(223,903)
19,594
(5,913)
(210,222)||At
31/12/21
£
**16,797,456**
**1,166,120**
**297,705**
**18,261,281**
Movement
in funds
£
**2,062,608**
**1,057,951**
**25,769**
**3,146,328**
At
31/12/20
£
14,734,848
108,169
271,936
15,114,953|
|---|---|---|---|---|
||||||
||||||
||||||
Page 18
continued...
**The Lytham Schools Foundation**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **14. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
||Incoming|
Resources|
Resources|Gains and|Movement|
|---|---|---|---|---|---|
||resources|
expended||losses|in funds|
||£||£|£|£|
|**Unrestricted funds**||||||
|General fund|339,097|
(532,548)||(30,452)|(223,903)|
|**Restricted funds**||||||
|Funds designated exclusively for AKS|
7,938||13,541|(1,885)|19,594|
|**Endowment funds**||||||
|Capital accumulation fund|-||-|(5,913)|(5,913)|
|**TOTAL FUNDS**|347,035|(519,007)||(38,250)|(210,222)|
|Funds designated exclusively for AKS|are made up as|follows:||||
||**2021**||**2021**|2020|2020|
||**Endowment**|**Restricted**||Endowment|Restricted|
||**£**||**£**|£|£|
|Mellor Lecture Trust|1,913||18,039|1,748|16,399|
|Mellor Scholarship|4,544||31,395|4,151|28,558|
|Wolfson Scholarship|141,515||22,678|129,268|21,016|
|Wolfson Sixth Form|133,332||11,223|121,793|10,403|
|Donovan Travel Fund|1,170||757|1,069|684|
|Fred H Hill Fund|891||1,932|814|1,759|
|Denys Ingham Travel Fund|6,058||5,041|5,534|4,579|
|Tom Bleasdale Memorial Fund|8,282||702|7,560|633|
|Prize Funds|-||26,516|-|24,137|
|Jean Mary Robinson Memorial Fund|-|
1,047,837||-|-|
||297,705|1,166,120||271,937|108,168|
## **15. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 December 2021 or for the year ended 31 December 2020.
## **16. RESTRICTED FUNDS**
Restricted funds are to be applied as follows:
## **Mellor Lecture Trust and Mellor Scholarship**
Financial assistance to pupils undertaking extra-curricular activities.
## **Wolfson Scholarship and Wolfson Sixth Form Fund**
Assistance towards school fees in special circumstances.
## **Donovan Travel Fund Fred H Hill Fund Denys Ingham Travel Fund**
Assistance towards expenses of educational visits.
Page 19
continued...
**The Lytham Schools Foundation**
## **Notes to the Financial Statements - continued**
## **for the year ended 31 December 2021**
## **16. RESTRICTED FUNDS - continued**
## **Tom Bleasdale Memorial Fund**
Funds to support and develop the game of Rugby.
## **Prize Funds**
Prizes and awards.
## **Investment Asset Fund**
Funds invested in land, buildings and equipment.
## **The Jean Mary Robinson Memorial Fund**
During the year the charity received a substantial legacy donation £1,047,000 from the estate of the late Jean Mary Robinson, who was a former pupil of Queen Mary's School and became a lifelong History teacher. Her wishes in granting the donation were for the funds to be placed into a restricted fund for the sole use of AKS Lytham. She requested that the funds be used to increase the number of bursaries or other educational projects to benefit the school and its students in attaining places and enriching their learning experiences, including a focus on History.
Page 20