KESWICK SCHOOL CHARITABLE TRUST
Report and Financial Statements Year ended 31 March 2022
Charity No: 526847
KESWICK SCHOOL CHARITABLE TRUST
CONTENTS
YEAR ENDED 31 MARCH 2022
| Page | |
|---|---|
| Legal and administrative information | 1 |
| Report of the trustees | 2 |
| Report of the independent examiner | 3 |
| Statement of financial activities | 4 |
| Income and expenditure account | 5 |
| Balance sheet | 6 |
| Notes forming part of the financial statements | 7 |
KESWICK SCHOOL CHARITABLE TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
YEAR ENDED 31 MARCH 2022
Trustees
Prof R S Fowler Mr D Walker Mrs S Peck Dr P Roberts Ms A Boardman Mr M Askew Mrs H Trott Dr W Ponsonby Mr J Scott Ms C Neil Mr T Keough Rev C Hope Mr M Derrick
Resigned 31 December 2021 Appointed 25 June 2021 Appointed 1 January 2022
Charity Address
Clerk to the Trustees Keswick School Vicarage Hill Keswick Cumbria CA12 5QB
Independent Examiners
Lamont Pridmore 8 Stanger Street Keswick Cumbria CA12 5JU
Bankers HSBC 29 English Street Carlisle CA3 8JT
Solicitors Browne Jacobson 14[th] Floor No 1 Spinningfields 1 Hardman Square Spinningfields Manchester M3 3EB
Investment Managers James Brearley & Sons Walpole House Unit 2 Burton Road Blackpool FY4 4NW
1
KESWICK SCHOOL CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022
The Trustees of the Keswick School Charitable Trust present their annual report and accounts for the year ended 31 March 2022 and confirm they comply with the requirements of the Charities Act 2011, the trust deed and the Charities SORP (FRS 102).
Constitution and objects
The Trust is operated under the rules of its Trust Deed dated 26 January 1980 (amended by a change in the rules dated 13 August 1981, and a change of name to Keswick School Charitable Trust dated 11 May 2017). The management of the charity is the responsibility of the trustees who are elected and co-opted under the terms of the trust deed.
The principal objectives of the charity are to:
-
Assist the Governors of the School to defray the cost of meeting their obligations under the Education Acts
-
Provide or assist in providing special benefits at the School not normally provided by the local education authority
-
Promote the education of children attending the School in such ways as the Governors/Trustees think fit
-
Administer the Endowment, Prize Fund and Scholarship Funds.
There have been no changes in objectives since the last annual report. The Trust operates in accordance with the order made by the Charity Commission in 2007 that enables the Trustees to make minor changes to the trusts of the charity. This has enabled the Trustees to reduce the quorum from seven to five; to temporarily fill vacancies left unfilled by nominating bodies and to arrange indemnity insurance. Major changes still require the approval of the Charity Commission.
Membership
The Trust body is made up of six foundation Trustees, three governor-appointed Trustees and one each from the County Council, Queen’s College, Oxford and the Old Keswickian Association.
The Trustees for the period going forward are: Foundation
Mr J Scott Mrs S Peck Dr P Roberts Mr D Walker Ms A Boardman Ms C Neil
Co-opted Foundation
Mr T Keough
Governors’ Nominees
Mr M Derrick Mrs H Trott Rev C Hope
Keswick OKs
Dr W Ponsonby
Queen’s College, Oxford
Prof R S Fowler
Cumbria County Council Vacancy
2a
KESWICK SCHOOL CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022(CONTINUED)
Review of activities and future developments
The Trustees provided annual support this year for the Prize Fund £3,000 (2021: nil) and the Rosemary Aitken Fund £1,000 (2021: £1,000).
Trustees’ responsibilities
The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the Trustees are required to:
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Select suitable accounting policies and apply them consistently:
-
Make judgements and estimates that are reasonable and prudent:
-
Prepare the financial statements in accordance with the methods and principles set out in the Statement of Recommended Practice “Accounting and Reporting by Charities” and to state whether or not the accounts have been prepared in accordance with that Statement and applicable accounting standards.
-
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records which are sufficient to show and explain the charity’s transactions and to 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities
Investment policy and performance
The investment portfolio comprises a selection of Unit Trusts which are specifically geared for charities. The aim is to generate income and to maintain the capital value of the fund against inflation erosion. For major investment decisions independent financial advice is taken. The Trustees take smaller investment decisions as a body. Investment responsibilities sit heavily with the Trustees, both individually and as a body. Independent financial advice is given through James Brearley & Sons, who were appointed by the Trustees after a tender and interview process in October 2015. The Trustees agreed to a managed advisory service through James Brearley & Sons.
2b
KESWICK SCHOOL CHARITABLE TRUST
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022(CONTINUED)
Investment policy and performance (continued)
Investment income has increased by £4,909 (17%) in the year. The value of the investments at 31 March 2022 showed an increase of £14,642 compared to the previous year, because of an increase of £68,675 in the values of the holdings, and net disposals of £54,033 in the year.
Grant making policy
Grants are made from the Prize Fund, Scholarship Fund and Foundation Fund to assist with the School’s extra-curricular activities, if requested by the school.
Risk management
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate their exposure to the major risks.
Reserves policy
The Trustees do not hold high levels of cash reserves. The Trustees will consider any application from the school during the year on its own merit.
Approved by the Trustees at their meeting on 4 October 2022 and signed on their behalf by: -
Dr P Roberts (Signed)
Chairman of the meeting
2c
KESWICK SCHOOL CHARITABLE TRUST
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF KESWICK SCHOOL
I report on the unaudited accounts of the charity for the year ended 31 March 2022 which are set out on pages 4 to 7.
Respective Responsibilities of Trustees and the Independent Examiners
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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to state whether particular matters have come to my attention.
Basis of Independent Examiner’s Report
My examination was carried out in accordance with the general directions given by the Charities Commissioners. An independent examination includes a review of the accounting records kept by the charity and the comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning such matters. The procedures undertaken do not provide all the evidence that would be required by an audit, and consequently I do not express an audit opinion on the view given by the accounts.
Independent Examiner’s Statement
In connection with our examination, no matter has come to our attention:
-
(1) which gives me reasonable cause to believe that in any material respect the requirements:
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(a) to keep accounting records in accordance with section 130 of the Act; and
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(b) to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Act
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
W J Pridmore FCA (Signed)
Lamont Pridmore 8 Stanger Street Keswick Cumbria CA12 5JU
Dated : 4 October 2022
3
Keswick School Charitable Trust Statement of Financial Activities for the Year Ended 31 March 2022
| Unrestricted | Unrestricted | Restricted | Endowment 2022 2021 | Endowment 2022 2021 | Endowment 2022 2021 |
|---|---|---|---|---|---|
| Funds | Funds | Funds | Total Total | ||
| £ | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donation | 288 | - | - | 288 | 50 |
| Other trading activities | - | - | - | - | - |
| Investment income | - | 3,742 | 29,817 | 33,559 | 28,650 |
| Transfer to income | 20,785 | - | (20,785) | - |
- |
| -------- | --------- | -------- |
-------- | --------- | |
| Total Income | 21,073 | 3,742 | 9,032 | 33,847 | 28,700 |
| ==== | ===== | ==== | ==== | ===== | |
| Expenditure on raising funds | |||||
| Investment management costs | - | 1,134 | 9,032 | 10,166 | 8,895 |
| ------- | ------ | ----- | ------ | ----- | |
| Expenditure on charitable activities | |||||
| Governance Costs | 2,923 | - | - | 2,923 | 2,650 |
| Education | 4,000 | - | - | 4,000 | 23,002 |
| ------- | --------- | --------- | --------- | ---------- | |
| Cost of grant making | 6,923 | - | - | 6,923 | 25,652 |
| ==== | ==== | ====== | ===== | ===== | |
| Total expenditure | 6,923 | 1,134 | 9,032 | 17,089 | 34,547 |
| ===== | ==== | ====== | ===== | ===== | |
| Net income/(expenditure) and | |||||
| net movement in funds before | |||||
| gains and losses on investments | 14,150 | 2,608 | - | 16,758 | (5,847) |
| Net (losses)/gains on investments | - | 7,657 | 61,018 | 68,675 |
211,184 |
| ---------- | ---------- | ---------- |
---------- |
---------- | |
| Net Movement in funds | 14,150 | 10,265 | 61,018 | 85,433 |
205,337 |
| --------- | --------- | ---------- | ----------- | ------------- | |
| Reconciliation of Funds | |||||
| Total Funds brought forward | 19,190 | 190,690 | 1,439,420 | 1,649,300 | 1,443,963 |
| ---------- | ---------- | ---------- | ------------ | ------------- | |
| Total Funds carried forward | 33,340 | 200,955 | 1,500,438 | 1,734,733 | 1,649,300 |
| ====== | ====== | ====== | ====== | ======= |
4
Keswick School Charitable Trust Income and Expenditure Account for the Year Ended 31st March 2022
| 2022 | 2021 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Income | |||
| Donations and legacies | 2 | 288 | 50 |
| Rent | 3 | - | - |
| Investment income | 4 | 33,559 | 28,650 |
| ----------- | ----------- | ||
| 33,847 | 28,700 | ||
| ----------- | ----------- | ||
| Charitable expenditure | |||
| Expenditure on raising funds | 5 | 10,166 | 8,895 |
| Management & administration | |||
| expenses | 6 | 2,923 | 2,650 |
| Grants & prizes | 7 | 4,000 | 23,002 |
| ----------- | ----------- | ||
| 17,089 | 34,547 | ||
| ----------- | ----------- | ||
| Operating profit/(deficit) for the year | 16,758 |
(5,847) | |
| Gains on investments | 68,675 | 211,184 | |
| ----------- | ----------- | ||
| Surplus for the year | 85,433 | 205,337 | |
| ====== | ====== |
5
Keswick School Charitable Trust Balance Sheet as at 31 March 2022
| Total | Prior | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Endowment | Funds | Year | |
| Funds | Funds | Funds | 2022 | 2021 | |
| £ | £ | £ | £ | £ | |
| Fixed Assets | |||||
| Tangible assets | - | - | 214,362 | 214,362 |
214,362 |
| Investments | - | 107,341 | 1,286,076 | 1,393,417 | 1,378,775 |
| ---------- | ---------- | ---------- | ------------ | ------------ | |
| Total Fixed Assets | - | 107,341 | 1,500,438 | 1,607,779 | 1,593,137 |
| ----------- | ---------- | ---------- | ------------ | ------------ | |
| Current Assets | |||||
| Cash at bank | 33,340 | 93,614 | - | 126,954 | 56,163 |
| Debtors | - | - | - | - | - |
| ---------- | -------- | -------- | --------- | --------- | |
| 33,340 | 93,614 | - | 126,954 | 56,163 | |
| Liabilities | |||||
| Creditors falling due within | |||||
| one year | - | - | - | - | - |
| --------- | -------- | -------- | --------- | ---------- | |
| Net Current assets | 33,340 | 93,614 | - | 126,954 | 56,163 |
| ---------- | -------- | -------- | ---------- | --------- | |
| Total assets less current | |||||
| Liabilities | 33,340 | 200,955 | 1,500,438 | 1,734,733 | 1,649,300 |
| Creditors : Amounts falling due | |||||
| after more than one year | - | - | - | - | - |
| Provisions for liabilities and | |||||
| Charges | - | - | - | - | - |
| --------- | ---------- | ---------- | ------------ | ------------ | |
| Net assets | 33,340 | 200,955 | 1,500,438 | 1,734,733 | 1,649,300 |
| -------- | ---------- | --------- | ------------ | ------------ | |
| The funds of the charity | |||||
| Endowment fund | - | - | 1,500,438 | 1,500,438 | 1,439420 |
| Restricted income funds | - | 200,955 | - | 200,955 | 190,690 |
| Unrestricted income funds | 33,340 | - | - | 33,340 | 19,190 |
| ---------- | ---------- | ----------- | ----------- | ------------- | |
| Total charity funds | 33,340 | 200,955 | 1,500,438 | 1,734,733 | 1,649,300 |
| ---------- | ---------- | ----------- | ------------- | ------------- |
6
Keswick School Charitable Trust Notes forming part of the Financial Statements For the Year Ended 31 March 2022
1. Accounting policies
(a) Basis of accounting
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and the Charities Act 2011.
(b) Donations and legacies
Donations, legacies and similar incoming resources are included in the year in which they are received.
(c) Grants receivable
Revenue grants are credited to the income and expenditure account as received, unless related to a specific period, when it is placed in a restricted fund until used.
(d) Investment income and rental income
Income from investments and from rental income is included in the income and expenditure account in the year in which it is received.
(e) Expenditure
All expenditure is included on an accruals basis and is recognized when there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities (SOFA). The charity is not registered for VAT and accordingly expenditure is shown gross of irrecoverable VAT.
(f) Investments
Investments are included at market value at the year-end. Gains and losses on disposal and revaluation of investments are charged or credited to the SOFA.
(g) Fund accounting
The charity’s funds consist of unrestricted and restricted amounts. The charity may use unrestricted amounts at its discretion. Restricted funds represent income contributions, which are restricted to a particular purpose, in accordance with the donor’s wishes.
7a
Keswick School Charitable Trust Notes forming part of the Financial Statements For the Year Ended 31 March 2022
| 2 | Donations and Legacies Income | 2022 | 2021 |
|---|---|---|---|
| £ | £ | ||
| Donations | 288 | 50 | |
| ======= | ======= | ||
3 |
Investment income | ||
| Dividends and interest on listed investments | 33,559 | 28,650 | |
| ===== | ====== | ||
| 4 | Expenditure on raising funds | ||
| Investment management costs | 10,166 | 8,895 | |
| ===== | ====== | ||
| 5 | Governance costs | ||
| Insurance | 947 | 927 | |
| Staff Retirements | 758 | 1,301 | |
| Bank charges | 15 | - | |
| Legal fees | 1,140 | 337 | |
| Prizegiving expenses | 63 | - | |
| Advertising | - | 85 | |
| -------- | --------- | ||
| 2,923 | 2,650 | ||
| ===== | ===== | ||
| 6 | Costs of activities in furtherance of charitable objectives | ||
| Library Fund: Rosemary Aitken Bequest | 1,000 | 1,000 | |
| Prizegiving Fund | 3,000 | - | |
| Keswick Academy | - | 22,002 | |
| -------- | ---------- | ||
| 4,000 | 23,002 | ||
| ===== | ====== |
7 Trustees’ remuneration
The Trustees neither received nor waived any emoluments during the year. (2021: £ Nil).
7b
Keswick School Charitable Trust Notes forming part of the Financial Statements For the Year Ended 31 March 2022
9 Tangible fixed assets
| Tangible fixed assets | ||
|---|---|---|
| Freehold | ||
| Land and | ||
| buildings | Total | |
| £ | £ | |
| At cost | ||
| Balance at 1 April 2021 | 214,362 | 214,362 |
| ---------- | ---------- | |
| Balance at 31 March 2022 | 214,362 | 214,362 |
| ===== | ===== | |
| Depreciation | ||
| Balance at 1 April 2021 | - | - |
| Charged in the year | - | - |
| ---------- | ---------- | |
| Balance at 31 March 2022 | - | - |
| ===== | ===== | |
| Net book value | ||
| As at 31 March 2022 | 214,362 | 214,362 |
| ===== | ===== | |
| As at 31 March 2021 | 214,362 | 214,362 |
| ===== | ===== | |
| ehold land and buildings include the following at original | cost value: | |
| Land at Howrahs | 50,000 | 50,000 |
| Security fencing & canopy at Lairthwaite | 78,328 | 78,328 |
| Land at rear of school | 86,034 | 86,034 |
| ---------- | ---------- | |
| 214,362 | 214,362 | |
| ====== | ====== |
Freehold land and buildings include the following at original cost value:
In line with the Funding Agreement for the Academy, Keswick School was granted a lease of the Freehold Land and Buildings for a term of 125 years.
The leased properties will revert to the Trustees in the event of the Funding Agreement being terminated.
7c
Keswick School Charitable Trust Notes Forming Part of the Financial Statements For the Year Ended 31 March 2022
10 Analysis of Movements on Investments
| Unrestricted | Restricted | Endowment | ||
|---|---|---|---|---|
| Funds | Funds | Funds | Total | |
| £ | £ | £ | £ | |
| Carrying value (market value) at | ||||
| beginning of year | - | 153,717 | 1,225,058 | 1,378,775 |
| Acquisitions | - | 31,672 | 252,385 | 284,057 |
| Profit on revaluation | - | 7,657 | 61,018 |
68,675 |
| Disposals | - | (85,705) | (252,385) | (338,090) |
| ----------- | ---------- | ----------- | ----------- | |
| Carrying value (market value) at | ||||
| end of year | - | 107,341 | 1,286,076 | 1,393,417 |
| ====== | ====== | ====== | ====== | |
| National Saving Income Bonds |
7d
Keswick School Charitable Trust Notes Forming Part of the Financial Statements For the Year Ended 31 March 2022
11 Funds
| Unrestricted | Restricted | Endowment | ||
|---|---|---|---|---|
| Funds | Funds | Funds | Total | |
| £ | £ | £ | £ | |
| Opening balance at 1 April 2021 | 19,190 | 190,690 | 1,439,420 | 1,649,300 |
| Net (outgoing)/incoming resources | before | |||
| transfers and investment gains | (6,635) | 2,608 | 20,785 | 16,758 |
| Transfers: | ||||
| Investment income arising on endowment | ||||
| funds for unrestricted purposes | 20,785 | - | (20,785) | - |
| Investment gains | - | 7,657 | 61,018 | 68,675 |
| ---------- | ---------- | ---------- | ----------- | |
| Balance at 31 March 2022 | 33,340 | 200,955 | 1,500,438 | 1,734,733 |
| ====== | ====== | ====== | ====== | |
| Represented by: | ||||
| Tangible assets | - | - | 214,362 | 214,362 |
| Investments | - | 107,341 | 1,286,076 | 1,393,417 |
| Net current assets | 33,340 | 93,614 | - | 126,954 |
| ----------- | ---------- | ----------- | ------------- | |
| 33,340 | 200,955 | 1,500,438 | 1,734,733 | |
| ====== | ====== | ====== | ======= |
Unrestricted Funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects.
Restricted Funds are funds which the Trustees must use for specific purposes and comprise the Prize Fund, Scholarship Fund and the Foundation. The Foundation was created shortly after the Trust Deed was sealed in 1980 in order to build up reserves for the school.
Endowment Funds represent those assets which must be held permanently by the charity. Since the fund was established, by the Charity Deed sealed in 1980, there have been numerous changes and developments to the land and buildings which have impacted on the permanent endowment as the school has evolved to a single site.
12 Capital commitments
At 31 March 2022 there were no commitments for capital expenditure contracted for but not provided for in the financial statements.
7e