**REGISTERED COMPANY NUMBER: 975999 (England and Wales) REGISTERED CHARITY NUMBER: 528618**
**Report of the Governors and**
**Financial Statements for the Year Ended 31 August 2020**
## **for**
## **THE YARLET TRUST**
Lancaster Haskins Limited Statutory Auditor Granville House 2 Tettenhall Road Wolverhampton West Midlands WV1 4SB
**THE YARLET TRUST**
**Contents of the Financial Statements for the Year Ended 31 August 2020**
||**Page**|
|---|---|
|**Reference and Administrative Details**|1|
|**Report of the Governors**|2 to 5|
|**Report of the Independent Auditors**|6 to 7|
|**Statement of Financial Activities**|8|
|**Balance Sheet**|9|
|**Cash Flow Statement**|10|
|**Notes to the Cash Flow Statement**|11|
|**Notes to the Financial Statements**|12 to 21|
|**Detailed Statement of Financial Activities**|22 to 23|
**THE YARLET TRUST**
## **Reference and Administrative Details for the Year Ended 31 August 2020**
## **GOVERNORS**
Mrs J Betteley Mrs R S Bullock P Middleton Mrs G Mitchell A Morris K Robins Mrs P A Sharratt Nick Tarling (Acting) Chair Mrs J Teather (resigned 21.3.21) Mrs S A B Tennant (resigned 31.1.21) C Paget J Lefroy (appointed 23.11.20) C Jenkinson (appointed 19.3.21)
## **REGISTERED OFFICE**
Yarlet School Yarlet Near Stafford Staffordshire ST18 9SU
**REGISTERED COMPANY NUMBER**
975999 (England and Wales)
**REGISTERED CHARITY** 528618 **NUMBER AUDITORS** Lancaster Haskins Limited Statutory Auditor Granville House 2 Tettenhall Road Wolverhampton West Midlands WV1 4SB
## **HEADMASTER**
I M Raybould
## **BURSAR**
K Nixon
Page 1
**THE YARLET TRUST**
## **Report of the Governors for the Year Ended 31 August 2020**
The Governors who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2020. The Governors have adopted the provisions of 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).
The Yarlet Trust is a charitable company limited by guarantee and was set up in 1970. It is governed by its articles of association, and its objects are to provide education for children at Yarlet School.
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The primary objectives of the Governors are to deliver high quality education for children between the ages of 2 and 13, and to prepare them for their future education. The Governors' continuing aim is to improve the standard and breadth of education the School provides, and to ensure that it represents the best preparatory education available in the region. The School's strategy is to deliver services of the highest quality in all departments and to improve facilities wherever resources permit.
The Governors are committed to continuing to improve the financial performance of the School. The continued investment in new equipment and facilities clearly indicates the Governors' commitment to maintaining the high standard of education provided by the School, which, we believe, will lead to further increases in pupil numbers.
In setting our objectives and planning our activities the Governors have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee charging.
## **Public benefit**
The Governors maintain a policy of continuous review of ways in which The Yarlet Trust can practicably offer benefits to the public. Prominent among these is the offer of bursaries, which the School has for many years made available for children from low income families, including two bursaries which are offered to children entering the School in Year 7, which are each linked to continuing bursaries provided by Senior Schools up to Year 13.
It also remains the Governors' policy that local schools, sports organisations and community groups are offered the use of the School's outdoor and indoor facilities. Furthermore, the school shares its musical and sporting excellence by inviting local maintained schools to participate in a series of competitions, workshops and performances.
The Headmaster and Deputy Headteacher offer their support to local maintained schools by being governors and encouraging the shared use of our facilities such as our boarding facilities during the holidays for a local special school and our swimming pool for a local primary school.
## **Volunteers**
The School is assisted by very active parents, either through the Fund Raising Committee or in other respects, and the assistance so generously given in time, expertise and fund raising results in projects which would not be otherwise achieved.
Page 2
**THE YARLET TRUST**
## **Report of the Governors for the Year Ended 31 August 2020**
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
We were delighted with our latest ISI Educational Quality inspection report. In particular, we were proud of the "excellent" grading for pupils' personal development. Additionally, our latest inspection visit confirms that the School continues to meet all regulatory requirements.
The School's performance in all areas continues to be outstanding with all leavers gaining entry to their first choice of senior school. Yarlet has continued to provide a first class, all-round education and has maintained an excellent reputation for its traditional values, high academic standards and excellence in art, music and sport.
We believe these achievements are a direct result of vigorously pursuing a comprehensive School Improvement Plan which is continually updated with the objective of maintaining exceptionally high standards across the board.
A disproportionate number of pupils leave Yarlet with Exhibitions or Scholarships to their respective senior schools.
## **FINANCIAL REVIEW**
## **Financial review**
The Statement of Financial Activities for the year is set out on page 8 of the financial statements. Funding for the main activity of The Yarlet Trust is by charging tuition fees for pupils. Funding for improvements is met largely by fund raising activities and donations.
## **Reserves policy**
The unrestricted funds are held in a general reserve to allow for any unforeseen falls in income or rises in expenditure, as well as to invest in improvements to equipment and facilities wherever possible.
## **Going concern**
The Governors have considered the period ending one year from the approval of these financial statements. In light of the impact of the COVID-19 pandemic, the Governors took up the offer of a £250,000 loan from NatWest under the Government's CBILS. This was drawn down on 11th November 2020 and the Governors consider that it will be of significant assistance, alongside the continuing overdraft facility from NatWest, in overcoming any uncertainties as to the level of future entries and pupil numbers in light of the risks represented by the continued presence of COVID-19 in the community. Furthermore, the School has demonstrated that it can respond rapidly and effectively to any guidance issued by the government and that its remote learning programmes are of an outstandingly high standard. Given the availability of the NatWest loan and overdraft and the School's demonstrated ability to provide exceptional remote learning programmes, the Governors feel the School is well-placed to deal with any future COVID 19 related challenges and are not aware of any material uncertainties that cast significant doubt about the ability of the charity to continue as a going concern.
## **FUTURE PLANS**
Looking forward to 2021 and beyond, The Yarlet Trust will continue to ensure the highest standards in the education it provides. In furtherance of the Trust's strategy and in order to meet its charitable objectives, the Governors will continue to monitor education standards at the School, seeking improvements wherever possible, and will also improve the facilities of the School as resources allow.
Page 3
**THE YARLET TRUST**
## **Report of the Governors for the Year Ended 31 August 2020**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its governing document, the articles of association, and constitutes a limited company limited by guarantee, as defined by the Companies Act 2006.
The Governors are required by the articles of association to be members of the company.
The articles further provide that there be a minimum of 7 Governors and that each Governor may serve for a period of 3 years and be eligible to stand for re-election at the end of that period.
The Governing Body keeps the composition of its Board under regular review, monitoring the anticipated requirements of the School, and undertakes an annual review of the roles and responsibilities of the Governors as a whole.
Nominations for election to the Board of Governors are received from existing Governors, together with suggestions from the Headmaster, and these take account of the specialist skills and personal competence of candidates and address what fields of expertise may be under-represented on the Board at any given time.
The election of each Governor is subject to approval by the members of The Yarlet Trust in general meeting.
## **Organisation, management and financial reporting control**
The Board of Governors meets at least three times a year to determine the general policy of the School and review its overall management and control, for which Governors are legally responsible.
The Board is supported in this task by the work of several committees. These also meet regularly, have clear terms of reference and are chaired by Governors, though non-Governors may be co-opted and the Headmaster and other members of the School's senior management team may be invited to attend meetings. These committees are safeguarding, finance, academic, nominations and health and safety. In addition the Governors appoint sub committees and working parties as needed.
## **Risk management**
The Governors maintain a policy of continuous review of the major risks to which The Yarlet Trust is exposed. Systems have been developed and continue to be developed to mitigate exposure. The Governors monitor the effectiveness of the system of internal controls, including insurance cover where appropriate, by which risks can be best mitigated.
## **EXTERNAL RELATIONSHIPS**
The day to day running of the School is delegated to the Headmaster, who is supported by other members of the senior management team and administrative staff.
The Headmaster is an active member of the Incorporated Association of Preparatory Schools (IAPS), the purpose of which is to promote and maintain standards in preparatory schools. In addition the Yarlet School is a member of the Association of Governing Bodies of Independent Schools (AGBIS), which supports and advises governing bodies, and of the Independent Schools Bursars Association (ISBA), which provides valuable financial advice.
The School operates with a wide range of local charities and other organisations in seeking to widen public access to the education it provides, to optimise the use of its facilities and to make its pupils more aware of the social context of the education they receive.
Page 4
**THE YARLET TRUST**
## **Report of the Governors for the Year Ended 31 August 2020**
## **STATEMENT OF GOVERNORS' RESPONSIBILITIES**
The Governors are responsible for preparing the Report of the Governors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Governors 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 company for that period. In preparing those financial statements, the Governors are 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;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Governors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Governors are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the Governors 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.
## **GOVERNORS RETIRING BY ROTATION**
The Governor retiring by rotation is Mrs G Mitchell.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of Governors on ............................................. and signed on its behalf by:
........................................................................ K Robins - Governor
Page 5
**Report of the Independent Auditors to the Members of The Yarlet Trust**
## **Opinion**
We have audited the financial statements of The Yarlet Trust (the 'charitable company') for the year ended 31 August 2020 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 charitable company's affairs as at 31 August 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our 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 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 the provisions available for small entities, in the circumstances set out in note 22 to the financial statements, 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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the Governors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The Governors are 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 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 Report of the Governors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Governors has been prepared in accordance with applicable legal requirements.
Page 6
**Report of the Independent Auditors to the Members of The Yarlet Trust**
## **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 Report of the Governors.
- We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Governors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Governors were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Governors.
## **Responsibilities of Governors**
As explained more fully in the Statement of Governors' Responsibilities, the Governors (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 Governors 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 Governors 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 Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Our 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 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.
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 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 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 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.
Mark Ashton, A.C.A, F.C.C.A. (Senior Statutory Auditor) for and on behalf of Lancaster Haskins Limited Statutory Auditor Granville House 2 Tettenhall Road Wolverhampton West Midlands WV1 4SB
Date: .............................................
Page 7
**THE YARLET TRUST**
## **Statement of Financial Activities for the Year Ended 31 August 2020**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
**Charitable activities**
5
Gross fees and extras less discounts
Other trading activities
4
Other income
**Total**
**EXPENDITURE ON**
Raising funds
6
**Charitable activities**
7
Provision of education costs
**Total**
**NET INCOME/(EXPENDITURE)**
**Transfers between funds**
19
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
5,764
1,344,473
1
112,049
1,462,287
15,644
1,467,779
1,483,423
(21,136)
7,190|Restricted
fund
£
7,190
-
5,975
-
13,165
2,523
3,845
6,368
6,797
(7,190)|31.8.20
Total
funds
£
12,954
1,344,473
5,976
112,049
1,475,452
18,167
1,471,624
1,489,791
(14,339)
-|31.8.19
Total
funds
£
42,000
1,605,007
30,116
1,196
1,678,319
20,873
1,555,589
1,576,462
101,857
-
101,857
105,616
207,473|
|---|---|---|---|---|
||(13,946)
187,177
173,231|(393)
20,296
19,903|(14,339)
207,473
193,134||
The notes form part of these financial statements
Page 8
## **THE YARLET TRUST**
## **Balance Sheet 31 August 2020**
|Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
13
393,254
**CURRENT ASSETS**
Stocks
14
15,000
Debtors
15
101,890
Cash at bank
140
117,030
**CREDITORS**
Amounts falling due within one year
16
(337,053)
**NET CURRENT ASSETS**
(220,023)
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
173,231
**NET ASSETS/(LIABILITIES)**
173,231
**FUNDS**
19
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
fund
£
16,232
-
881
2,790
3,671
-
3,671
19,903
19,903|31.8.20
Total
funds
£
409,486
15,000
102,771
2,930
120,701
(337,053)
(216,352)
193,134
193,134
173,231
19,903
193,134|31.8.19
Total
funds
£
435,359
3,000
355,881
7,156
366,037
(593,923)
(227,886)
207,473
207,473
187,177
20,296
207,473|
|---|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Governors and authorised for issue on ............................................. and were signed on its behalf by:
............................................. K Robins - Governor
The notes form part of these financial statements
Page 9
**THE YARLET TRUST**
## **Cash Flow Statement for the Year Ended 31 August 2020**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Interest paid
Net cash (used in)/provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Net cash used in investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
2
**Cash and cash equivalents at the end of**
**the reporting period**
2|31.8.20
£
(9,848)
(4,947)
(14,795)
(29,273)
(29,273)
(44,068)
(9,575)
(53,643)|31.8.19
£
132,311
(3,889)
128,422
(25,986)
(25,986)
102,436
(112,011)
(9,575)|
|---|---|---|
The notes form part of these financial statements
Page 10
**THE YARLET TRUST**
## **Notes to the Cash Flow Statement for the Year Ended 31 August 2020**
## **1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net (expenditure)/income for the reporting period (as per the**
**Statement of Financial Activities)**
**Adjustments for:**
Depreciation charges
Interest paid
Increase in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
**Net cash (used in)/provided by operations**
**2.**
**ANALYSIS OF CASH AND CASH EQUIVALENTS**
Notice deposits (less than 3 months)
Overdrafts included in bank loans and overdrafts falling due within one year
Total cash and cash equivalents
3.
**ANALYSIS OF CHANGES IN NET DEBT**|31.8.20
£
(14,339)
55,146
4,947
(12,000)
253,110
(296,712)
(9,848)
31.8.20
£
2,930
(56,573)
(53,643)|31.8.19
£
101,857
58,530
3,889
(3,000)
(274,821)
245,856
132,311
31.8.19
£
7,156
(16,731)
(9,575)|
|---|---|---|
||At 1.9.19|Cash flow|At 31.8.20|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank|7,156|(4,226)|2,930|
|Bank overdraft|(16,731)|(39,842)|(56,573)|
||(9,575)|(44,068)|(53,643)|
|**Total**|(9,575)|(44,068)|(53,643)|
The notes form part of these financial statements
Page 11
**THE YARLET TRUST**
## **Notes to the Financial Statements for the Year Ended 31 August 2020**
## **1. STATUTORY INFORMATION**
The Yarlet Trust is a company, limited by guarantee, registered in England and Wales. The company's registered number and registered office can be found on the Company Information page.
The presentation currency of the financial statements is the Pound Sterling (£).
## **2. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, 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 Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Incoming resources**
All income is recognised in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
## **Expenditure**
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.
## **Charity status**
The charity is a company limited by guarantee. The members of the company are the Governors named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Property - 2%, 5% & 10% on cost Equipment - 20% Straight Line
Improvements to leasehold property are being depreciated over the remainder of the lease term.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income and gains are allocated to the appropriate fund.
continued...
Page 12
**THE YARLET TRUST**
**Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **2. ACCOUNTING POLICIES - continued**
## **Pension costs**
The Company operates a defined contribution scheme for its employees. The costs of contributions are written off against profits in the year they are payable.
## **Donated goods**
Donated goods are recognised on a receivable basis (where there is no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
## **Financial instruments**
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value with changes recognised in income and expenditure. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in income and expenditure.
## **Debtors**
Trade and other debtors are recognised at the settlement amount after any discount offered. Prepayments are valued at the amount repaid net of any trade discounts due.
## **Cash at bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Liabilities**
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.
## **Going concern**
At the time of this report, the spread of the Covid-19 Coronavirus appears to be slowing and countries which were in lockdown are starting to open up their economies.
The charity has complied with the UK Government's lockdown rules during the Coronavirus pandemic and has put the health and safety of its staff and pupils at the heart of the measures it has introduced to ensure its practices comply with social distancing.
The Governors have considered the period ending one year from the approval of these financial statements. In light of the impact of the COVID-19 pandemic, the Governors took up the offer of a £250,000 loan from NatWest under the Government's CBILS. This was drawn down on 11th November 2020 and the Governors consider that it will be of significant assistance, alongside the continuing overdraft facility from NatWest, in overcoming any uncertainties as to the level of future entries and pupil numbers in light of the risks represented by the continued presence of COVID-19 in the community. Furthermore, the School has demonstrated that it can respond rapidly and effectively to any guidance issued by the government and that its remote learning programmes are of an outstandingly high standard. Given the availability of the NatWest loan and overdraft and the School's demonstrated ability to provide exceptional remote learning programmes, the Governors feel the School is well-placed to deal with any future COVID 19 related challenges and are not aware of any material uncertainties that cast significant doubt about the ability of the charity to continue as a going concern.
## **Significant judgements and estimates**
Management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
continued...
Page 13
**THE YARLET TRUST**
## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **2. ACCOUNTING POLICIES - continued**
## **Financial instruments**
The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is reviewed if the revision affects only that period, or in the period of the revision and future periods if the revision affect both current and future periods.
There are no key sources of estimate uncertainty that have significant effect on the amounts recognised in the financial statements.
## **3. DONATIONS AND LEGACIES**
|**DONATIONS AND LEGACIES**|||
|---|---|---|
||31.8.20|31.8.19|
||£|£|
|Donations|12,954|42,000|
On 31 August 2019, £42,000 of the Charities Aid Foundation loan was converted to a grant and has been included within donations and legacies income.
## **4. OTHER TRADING ACTIVITIES**
## **5.**
|Activities for generating fund
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Gross fees less discounts
Gross fees and extras less discounts|31.8.20
£
5,976
31.8.20
£
1,344,473|31.8.19
£
30,116
31.8.19
£
1,605,007|
|---|---|---|
## **6. RAISING FUNDS**
|**Other trading activities**|||
|---|---|---|
||31.8.20|31.8.19|
||£|£|
|Opening stock|3,000|-|
|Purchases|30,167|23,873|
|Closing stock|(15,000)|(3,000)|
||18,167|20,873|
continued...
Page 14
**THE YARLET TRUST**
## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **7. CHARITABLE ACTIVITIES COSTS**
|Provision of education costs
**SUPPORT COSTS**
Provision of education costs|Direct
Costs
£
1,435,210|Support
costs (see
note 8)
£
36,414|Totals
£
1,471,624
Governance
costs
£
36,414|
|---|---|---|---|
## **8. SUPPORT COSTS**
## **9. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||31.8.20|31.8.19|
|---|---|---|
||£|£|
|Auditors' remuneration|7,680|4,320|
|Depreciation - owned assets|55,146|58,530|
## **10. GOVERNORS' REMUNERATION AND BENEFITS**
There were no Governors' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.
## **Governors' expenses**
The Governors neither received nor waived any emoluments, or had any expenses reimbursed, during the year (2019 = £nil).
## **11. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs|31.8.20
£
888,755
70,413
115,936
1,075,104|31.8.19
£
924,919
64,916
82,035|
|---|---|---|
|||1,071,870|
The average monthly number of employees during the year was as follows:
|
Charitable activities
Cost of generating funds
Management and admin of the charity|31.8.20
39
1
1
41|31.8.19
39
1
1
41|
|---|---|---|
continued...
Page 15
**THE YARLET TRUST**
## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **11. STAFF COSTS - continued**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|31.8.20
£60,001 - £70,000
-
£70,001 - £80,000
1
1
Governor and key management remuneration benefits totalled £110,436 (2019: £104,037).
**12.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
Restricted
fund
fund
£
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
42,000
-
**Charitable activities**
Gross fees and extras less discounts
1,605,007
-
Other trading activities
2
30,114
Other income
3,502
(2,306)
**Total**
1,650,511
27,808
**EXPENDITURE ON**
Raising funds
10,556
10,317
**Charitable activities**
Provision of education costs
1,546,529
9,060
**Total**
1,557,085
19,377
**NET INCOME**
93,426
8,431
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
93,751
11,865
**TOTAL FUNDS CARRIED FORWARD**
187,177
20,296|31.8.19
1
-
1
Total
funds
£
42,000
1,605,007
30,116
1,196
1,678,319
20,873
1,555,589
1,576,462
101,857
105,616
207,473|
|---|---|
continued...
Page 16
**THE YARLET TRUST**
## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
|**13.**
**TANGIBLE FIXED ASSETS**
Property
£
**COST**
At 1 September 2019
1,441,088
Additions
-
At 31 August 2020
1,441,088
**DEPRECIATION**
At 1 September 2019
1,064,127
Charge for year
28,429
At 31 August 2020
1,092,556
**NET BOOK VALUE**
At 31 August 2020
348,532
At 31 August 2019
376,961
**14.**
**STOCKS**
Stocks
**15.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Prepayments|Property
£
1,441,088
-
1,441,088
1,064,127
28,429
1,092,556
348,532
376,961||Equipment
£
332,481
29,273
361,754
274,083
26,717
300,800
60,954
58,398|Totals
£
1,773,569
29,273
1,802,842
1,338,210
55,146
1,393,356
409,486
435,359
31.8.19
£
3,000
31.8.19
£
337,189
880
17,812
355,881|
|---|---|---|---|---|
||||||
||||||
||||||
||||||
||||||
||||31.8.20
£
15,000
31.8.20
£
76,136
2,772
23,863
102,771||
||||||
continued...
Page 17
**THE YARLET TRUST**
## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Bank loans and overdrafts (see note 17)
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income|31.8.20
£
56,573
28,426
14,154
28,854
209,046
337,053|31.8.19
£
16,731
28,152
17,258
14,272
517,510|
|---|---|---|
|||593,923|
Deferred income of £202,666 (2019: £511,296) is fee income for the autumn term which has been invoiced in advance and fee income which has been paid in advance.
The income deferred in the current year totalled £202,666 and the income released from the prior year totalled £511,296.
## **17. LOANS**
An analysis of the maturity of loans is given below:
||31.8.20|31.8.19|
|---|---|---|
||£|£|
|Amounts falling due within one year on demand:|||
|Bank overdrafts|56,573|16,731|
## **18. SECURED DEBTS**
The following securities are in place:
Two debentures dated 20 October 1970 over all property and assets of the company. Both charges were satisfied on 21 May 2020.
## **19. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
**Restricted funds**
General restricted funds
**TOTAL FUNDS**|At 1.9.19
£
187,177
20,296
207,473|Net
movement
in funds
£
(21,136)
6,797
(14,339)|Transfers
between
funds
£
7,190
(7,190)
-|At
31.8.20
£
173,231
19,903
193,134|
|---|---|---|---|---|
continued...
Page 18
**THE YARLET TRUST**
## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **19. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
General restricted funds
**TOTAL FUNDS**|Incoming
resources
£
1,462,287
13,165
1,475,452|Resources
expended
£
(1,483,423)
(6,368)
(1,489,791)|Movement
in funds
£
(21,136)
6,797
(14,339)|
|---|---|---|---|
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
**Restricted funds**
General restricted funds
**TOTAL FUNDS**
Comparative net movement in funds, included in the above are a
**Unrestricted funds**
General fund
**Restricted funds**
General restricted funds
**TOTAL FUNDS**|At 1.9.18
£
93,751
11,865
105,616
s follows:
Incoming
resources
£
1,650,511
27,808
1,678,319|Net
movement
in funds
£
93,426
8,431
101,857
Resources
expended
£
(1,557,085)
(19,377)
(1,576,462)|At
31.8.19
£
187,177
20,296
207,473
Movement
in funds
£
93,426
8,431
101,857|
|---|---|---|---|
continued...
Page 19
**THE YARLET TRUST**
## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **19. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
General restricted funds
**TOTAL FUNDS**|At 1.9.18
£
93,751
11,865
105,616|Net
movement
in funds
£
72,290
15,228
87,518|Transfers
between
funds
£
7,190
(7,190)
-|At
31.8.20
£
173,231
19,903
193,134|
|---|---|---|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
General restricted funds
**TOTAL FUNDS**|Incoming
resources
£
3,112,798
40,973
3,153,771|Resources
expended
£
(3,040,508)
(25,745)
(3,066,253)|Movement
in funds
£
72,290
15,228
87,518|
|---|---|---|---|
## **20. EMPLOYEE BENEFIT OBLIGATIONS**
Pension contributions payable by the charity are to a defined contribution scheme and are charged to the SOFA as they are incurred. The charge for the year was £115,936 (2019: £82,035).
## **21. RELATED PARTY DISCLOSURES**
The Articles of Association of The Yarlet Trust (as amended 13th July 2020) confirm that trade shall not be undertaken with any company of which a member of the Governing Body holds more than a 1% interest, unless with a Solicitor or his/her firm.
In order to be totally transparent and protect the absolute integrity of the School, it is agreed that no trade will take place with any business in which a Governor has a financial interest, with the exception of the provision of legal advice from a Solicitor.
continued...
Page 20
**THE YARLET TRUST**
## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **22. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES**
In common with many other businesses of our size and nature we use our auditors and other professional providers to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
## **23. ULTIMATE CONTROLLING PARTY**
The ultimate controlling party of the charity is the Governors.
## **24. GOVERNORS' INTERESTS**
N.D.Tarling Esq.
Mr Tarling is a Governor of the Yarlet Trust and is one of the Trustees of a private settlement which owns the freehold reversion to the school premises leased to the Trust. The rent paid for 2020 is £59,000 (2019 - £56,500).
Other Governors' interests
Some of the Governors have children or grandchildren attending the school, and, therefore, transact with the school, but all such transactions are on a normal commercial basis.
Page 21
**THE YARLET TRUST**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2020**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations
**Other trading activities**
Activities for generating fund
**Charitable activities**
Gross fees less discounts
**Other income**
Grants
Other incoming resources
**Total incoming resources**
**EXPENDITURE**
**Other trading activities**
Opening stock
Fundraising costs
Uniform purchases
Closing stock
**Charitable activities**
Salaries, wages and associated costs
Social security
Pensions
Rent and rates
Insurance
Heating and lighting
Office and telephone expenses
Advertising
Grounds and gardens
Games equipment and recreation
Repairs and maintenance
Household expenses
Motor expenses
Subscriptions
Other expenses
Carried forward|31.8.20
£
12,954
5,976
1,344,473
102,526
9,523
112,049
1,475,452
3,000
2,523
27,644
(15,000)
18,167
866,755
70,413
115,936
72,803
18,705
61,999
29,764
12,222
4,950
4,313
23,903
52,362
4,900
4,118
2,876
1,346,019|31.8.19
£
42,000
30,116
1,605,007
-
1,196
1,196
1,678,319
-
10,317
13,556
(3,000)
20,873
902,919
64,916
82,035
73,040
22,894
56,481
36,606
7,368
17,404
1,969
50,876
81,841
12,471
3,763
5,914
1,420,497|
|---|---|---|
This page does not form part of the statutory financial statements
Page 22
**THE YARLET TRUST**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2020**
|**Charitable activities**
Brought forward
Bad Debts
School expenses
Depreciation
Bank interest
**Support costs**
**Governance costs**
Wages
Auditors' remuneration
Legal fees
Total resources expended
**Net (expenditure)/income**|31.8.20
£
1,346,019
7,358
21,740
55,146
4,947
1,435,210
22,000
7,680
6,734
36,414
1,489,791
(14,339)|31.8.19
£
1,420,497
1,542
33,062
58,530
3,889
1,517,520
22,000
4,320
11,749
38,069
1,576,462
101,857|
|---|---|---|
This page does not form part of the statutory financial statements
Page 23