Lady Lumley’s Educational Foundation
Trustees’ Report and Audited Financial Statements
For the Year Ended 31 March 2021
Charity Number 529625
LADY LUMLEY’S EDUCATIONAL FOUNDATION
CONTENTS
FOR THE YEAR ENDED 31 MARCH 2021
| Page | |
|---|---|
| Officers and Professional Advisors | 1 |
| Trustees’ Report | 2 |
| Auditors’ Report | 7 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Notes to the Accounts | 11 |
Lady Lumley’s Educational Foundation
Officers and Professional Advisors
For the Year ended 31 March 2021
Auditors
Hallgarth Accountants Ltd 2 Hallgarth Pickering N Yorkshire
Bankers National Westminster Bank Plc 27 Yorkersgate Malton N Yorkshire
Stockbrokers Messrs Brewin Dolphin 4[th] Floor, Wellington Place Leeds LS1 4AN
Surveyor / Valuer
Messrs Cundalls 15 Market Place Malton N Yorkshire
Solicitors
Messrs Hague and Dixon 12 Smiddy Hill Pickering N Yorkshire
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
ANNUAL REPORT
YEAR ENDED 31[ST] MARCH 2021
Lady Lumley’s Educational Foundation was constituted by Deed Poll by Viscountess Elizabeth Lumley in 1657. It is governed by a Charitable Scheme dated 20[th] October 1959 as amended by a Scheme dated 6[th] September 1990. The Trustees are incorporated as a body under the name “The Governors of Lady Lumley’s Educational Foundation”. The Foundation is a registered charity, No.529625, and its address is c/o Clerk to the Governors, Roxby Hill, Pickering Road, Thornton Dale, Pickering, North Yorkshire, YO18 7LH.
Governors
The Governors during the Year to 31[st] March 2021 were:
Mr. C.M. Cooper - (Chair) Co-opted
Mr. G. Acomb (Vice-chair) - Appointed by Thornton Dale Parish Council Mr N.C. Allen – Appointed by the Governors of Lady Lumley’s School (Resigned July 2020)
Mr. R. Bramley – Appointed by the Governors of Lady Lumley’s School (Resigned July 2020)
Mr S. Croft – Appointed by the Governors of Lady Lumley’s School (Resigned July 2020)
Mr R.J. Towler – Co-opted
Mrs M.R. Lowe – Appointed by Pickering Town Council (Retired November 2020)
Ms E. Steadman – Appointed by Pickering Town Council (Appointed November 2020)
Mrs. S.R. Wass – Appointed by Sinnington Parish Council Cllr. G. White – Appointed by North Yorkshire County Council as Local Education Authority
Governors are appointed for a term of five years in accordance with the Charitable Scheme of the charity. Governors are nominated by those bodies whose names appear alongside their name above. The nominated Governors appoint co-opted Governors.
The Clerk to the Governors is D.C. FitzGerald, Esq., B.Sc., of Roxby Hill, Pickering Road, Thornton Dale, Pickering, North Yorkshire YO18 7LH.
The Auditors are Hallgarth Accountants Ltd of 2 Hallgarth, Pickering, North Yorkshire.
The Bankers are National Westminster Bank plc of Yorkersgate, Malton, North Yorkshire.
The Stockbrokers are Messrs. Brewin Dolphin of 10 Wellington Place, Leeds, West Yorkshire.
The Surveyor/Valuer is Messrs. Cundalls, 15 Market Place, Malton, North Yorkshire.
The Solicitors are Messrs. Hague and Dixon of 12 Smiddy Hill, Pickering, North Yorkshire YO18 7AN.
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Objects, Organisation and Activities
The Foundation’s activities are restricted to the town of Pickering and the parishes of Sinnington and Thornton le Dale in North Yorkshire. All of its property and investments, except Designated Funds, are permanent endowment. Apart from a sum of £410, the income from which is used for the Daniel Warin Memorial Prize, all the Foundation’s funds are unrestricted.
The Foundation was established to provide financial assistance to Lady Lumley’s School, Pickering and to beneficiaries residing in the area of its activities. Out of the annual income certain payments, termed Statutory Payments in the Accounts, are made to almshouses foundations in Thornton Dale, Aldgate and Bishopgate (London) and to NACRO as successor to York Debtors’ Prison. The amount of these payments is fixed by the Charitable Scheme. A further payment is made to Sinnington School Charity. This amount is fixed by the Governors and is currently £500 per annum.
The Charitable Scheme provides that the net income of the Foundation be applied in any one or more of the following ways:-
(i) in providing special benefits of any kind not normally provided by the Local Education Authority for Lady Lumley’s School;
(ii) in awarding to beneficiaries Scholarships, Bursaries or Maintenance Allowances tenable at any School, University or other place of learning;
(iii) in providing financial assistance, outfits, clothing, tools, instruments or books to enable beneficiaries on leaving school, university or other educational establishment to prepare for, or to assist their entry into, a profession, trade or calling;
(iv) in awarding Scholarships or Maintenance Allowances to enable beneficiaries to travel abroad to pursue their education;
(v) in providing, or assisting the provision of, facilities, of any kind not normally provided by the Local Education Authority, for recreation and social and physical training, including coaching in athletics, sports and games, for beneficiaries who are receiving primary, secondary or further education; and
(vi) in providing financial assistance to enable beneficiaries to study music or other arts.
“Beneficiaries” are defined as persons who have not attained the age of twentyfive years who, or whose parents, are resident in the Urban District of Pickering or in either of the Parishes of Thornton le Dale and Sinnington, or who are attending or have attended as pupils at Lady Lumley’s School, and who, in the opinion of the Governors, are in need of financial assistance.
The Foundation is run by the Governors who meet at least three times a year assisted by the part-time Clerk. At their meetings the Governors make decisions on the management of the Foundation’s property and investments and resolve on applications for grant aid.
By a separate charitable scheme, known as “The Sinnington School Charity” the Governors of the Foundation are also the Trustees of this charity and when appropriate resolve on business relating to it.
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Review of Progress, Achievements and Financial Activities
This was an eventful year for the Foundation. As well as having to cope with the restrictions imposed by the Coronavirus Pandemic, Lady Lumley’s School, the main beneficiary of the charity’s grant giving, was found to be inadequate by OFSTED following an inspection and an appeal. The School was required to become an academy with the immediate removal of the School’s Governing Body and consequently, the loss of three Governors nominated by that body. Until more was known about the future of the school, the Governors decided that there would be a moratorium on grants to the School but grants to individual beneficiaries would continue. The funds allocated in this financial year to the recurring grants to the School were held in abeyance to be paid once the outcome of the academisation was known
The Government restrictions meant that the July meeting also had to be cancelled and consideration of applications for grants from individuals was delegated to the Chair of Governors.
A virtual Annual Meeting of Governors was held in November when, along with normal business, the appointment of a Governor following a retirement was dealt with and also the appointment of a broker/ investment advisor to the Foundation. The Governors were also updated on the academisation of the School by the Acting Head Teacher.
At a subsequent meeting, Brewin Dolphin plc were appointed new broker/ investment advisor.
Owing to the renewed regulations imposed by Government, the March meeting was cancelled.
Grant applications during the year were greatly reduced but Governors awarded 19 grants to individuals totalling £6,695. Because of the increase in on-line teaching in both school and higher education institutions, many of the applications this year were for equipment to allow this. Other grants were made to an increasing number of beneficiaries who were undertaking apprenticeships. As the School was closed for a lot of the year and school trips and work experience were cancelled, there were no applications for individuals through the School.
The only grant made to the School in this year was to assist students with the cost of attending interviews, auditions etc. in connection with further education.
Public Benefit
The objects of the Foundation are the promotion of education and assisting young people into work. The area of benefit is defined in the Charitable Scheme which governs the Foundation. The Trustees have referred to the Charity Commission guidance on public benefit when reviewing the aims and objectives of the charity and when awarding grants to beneficiaries.
Risk Management
The Governors actively review the major risks that may affect the Foundation on a regular basis and believe that maintaining reserves at current levels, combined
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with an annual review of financial controls, will provide sufficient resources in the event of adverse conditions.
The Governors have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Reserves Policy
It is the policy of the Foundation to maintain unrestricted funds at a level which equates to approximately 12 months unrestricted expenditure. This provides sufficient funds to cover management and administration and grant costs. Unrestricted funds are maintained at least to this level throughout the year.
Data Protection
Governors considered the implications of the new data protection regulations (GDPR) and ensured that the Foundation was compliant with these.
Statement of Governors’ Responsibilities
The law applicable to charities in England and Wales requires the Governors to prepare financial statements for each financial year which give a true and fair view of the Foundation’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the Governors are required to:
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a) select suitable accounting policies and apply them consistently;
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b) observe the methods and principles in the Charities SORP
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c) make judgements and estimates that are reasonable and prudent;
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d) state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements;
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e) prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Foundation will continue in operation.
The Governors are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Governors have complied with the duty in section 4 of the 2011 Charities Act to have due regard to guidance published by the Charity Commission, including public benefit guidance.
In common with many other charities of our size and nature, the Charity uses its auditors to assist with the preparation of the financial statements.
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Approval
This report was approved by the Governors on the ………………………………… and signed on their behalf.
C M Cooper Chair of Governors
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF
LADY LUMLEY’S EDUCATIONAL FOUNDATION
We have audited the financial statements of Lady Lumley’s Educational Foundation for the year ended 31[st] March 2021 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Charity’s trustees, as a body, in accordance with sections 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Respective Responsibilities of Trustees and Auditors
As explained more fully in the Trustees’ Responsibilities Statement, the trustees are responsible for the preparation of financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors, including APB Ethical Standard – Provisions Available for Small Entities.
Scope of the Audit of the Financial Statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and nonfinancial information in the trustees’ annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materiality inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies, we consider the implications for our report.
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF
LADY LUMLEY’S EDUCATIONAL FOUNDATION
(CONTINUED)
Opinion on Financial Statements
In our opinion the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31[st] March 2021 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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:
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the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Hallgarth Accountants Ltd Chartered Accountants and Statutory Auditors 2 Hallgarth Pickering N Yorkshire YO18 7AW
Dated: ……………………………………
Hallgarth Accountants Ltd is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31[st] MARCH 2021
| Notes Restricted Funds Endowed Funds £ £ INCOME Investment Income Income from Property 2 - 8,191 Investment Income and Interest 3 20 75,459 Total Income 20 83,650 EXPENDITURE Charitable Expenditure Educational Benefits 4 20 6,721 Statutory Payments 5 - 750 Other Expenditure Property Costs 6 - 291 Management & Administration 7 - 11,339 Total Expenditure 20 19,101 Net Income and net movement in funds before gains and losses on investments - 64,549 Net gains/ (losses) on investments 10 - 328,715 Net Movement in Funds - 393,264 |
Total 2021 £ 8,191 75,479 83,670 6,741 750 291 11,339 19,121 64,549 328,715 393,264 |
Total 2020 £ 7,594 81,593 89,187 122,816 750 1,896 23,949 149,411 (60,224) (6,094) (66,318) |
|---|---|---|
| Reconciliation of Funds: Total funds brought forward 13 Total funds carried forward 13 |
410 410 |
3,038,041 3,431,305 |
3,038,451 3,431,715 |
3,104,769 3,038,451 |
|
|---|---|---|---|---|---|
There are no recognised gains or losses for 2020 and 2021 other than those included in the Statement of Financial Activities. The notes on pages 10 to 14 form a part of these accounts.
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
BALANCE SHEET
AS AT 31[st] MARCH 2021
| Notes FIXED ASSET INVESTMENTS Investment Properties 9 Investments 10 CURRENT ASSETS Cash in Bank & In Hand Debtors 11 CREDITORS Amounts falling due within 1 year. 12 Net Current Assets Total Assets Less Current Liabilities FUNDS Restricted Funds 13 Endowed Funds 13 |
Total 2021 £ 280,079 1,904 281,983 (5,590) |
Total 2021 £ 643,700 2,511,622 3,155,322 276,393 3,431,715 410 3,431,305 3,431,715 |
Total 2020 £ 440,090 1,920 442,010 (7,054) |
Total 2020 £ 643,700 1,959,795 2,603,495 434,956 3,038,451 410 3,038,041 3,038,051 |
|---|---|---|---|---|
Approved by the Trustees and signed on their behalf:
C M Cooper
Dated: ……………………………
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31[st] MARCH 2021
1. ACCOUNTING POLICIES
1.1 Basis of Preparation and Assessment of Going Concern
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. 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 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) with FRS102 and with the requirements of the Charities Act 2011.
The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. There are no material uncertainties affecting the current year’s accounts.
1.2
Income Recognition
All income is recognised once the charity has entitlement to the income.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
1.3 Expenditure Recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure.
All expenditure is accounted for on an accruals basis.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. Provisions for grants are made when the intention to make a grant has been communicated to the recipient.
1.4
Fixed Asset Investments
Investments are included at closing market value using the bid price at the balance sheet date. Gains and losses on disposal and revaluation of investments are charged or credited to the SOFA.
1.5 Investment Property and Income
Investment property is shown at the most recent valuation. Any aggregate surplus or deficit arising from the changes in market value is transferred to the endowment fund.
Investment Income is accounted for in the period in which the charity is entitled to receipt.
1.6
Value Added Tax
Value Added Tax is not recoverable by the charity, and as such, is included in the relevant costs in the Statement of Financial Activities.
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31[st] MARCH 2021
| 2. INCOME FROM PROPERTY Rents and Wayleaves 3. INVESTMENT INCOME Income from Listed Investments Interest Receivable on Cash Deposits 4. EDUCATIONAL BENEFITS Lady Lumley’s School: Departmental Requests Minibus Tax, Insurance & Maintenance School Prizes & Prize-giving Expenses Grants – Sixth Form Courses Year 8 Outdoor Education Sixth Form Interview Expenses Building Costs Grants to Individual Beneficiaries 5. STATUTORY PAYMENTS Sinnington School Annual Payment Lady Lumley’s Almshouses Charity Bishopgate Foundation & Aldgate Freedom Foundation NACRO 6. PROPERTY COSTS Repairs and Maintenance Rates Light & Heat Insurance |
2021 £ 8,191 2021 £ 66,808 8,671 75,479 2021 £ - - - - - - - 6,741 6,741 2021 £ 500 160 75 15 750 2021 £ - - 291 - 291 |
2020 £ 7,594 2020 £ 70,957 10,636 |
|
|---|---|---|---|
81,593 |
|||
2020 £ 15,413 51,000 6,000 2,000 6,000 2,000 32,000 8,403 |
|||
122,816 |
|||
2020 £ 500 160 75 15 750 2020 £ 936 781 - 179 |
|||
| 1,896 |
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31[st] MARCH 2021
| 7. | MANAGEMENT & ADMINISTRATION | 2021 | 2020 |
|---|---|---|---|
| COSTS | £ | £ | |
| Administration Staff | 7,464 | 7,174 | |
| Audit | 2,736 | 2,652 | |
| Other Administrative Costs | 1,139 | 14,123 | |
| 11,339 | 23,949 | ||
| 8. | NET MOVEMENTS IN FUNDS FOR THE | ||
| YEAR | 2021 | 2020 | |
| £ | £ | ||
| The net movement in funds for the year is stated | |||
| after charging:- | |||
| Audit Fees | 2,736 | 2,652 | |
| No remuneration was paid to trustees in the year, nor was any expenses reimbursed to | |||
| them. | |||
| 9. | INVESTMENT PROPERTIES | Freehold Land | |
| & | Buildings | ||
| £ | |||
| Valuation | |||
| As at 1stApril 2020 | 643,700 | ||
| Disposal | - | ||
| Net Book Value | |||
| As at 31st March 2021 | 643,700 | ||
| As at 31st March 2020 | 643,700 |
The investment properties were valued by professional valuer’s on 12[th] December 2018. The Trustees are satisfied that the current open market value is not materially different from the value included within the financial statements.
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31[ST] MARCH 2021
10. INVESTMENTS
| Market value at 1stApril 2020 Acquisitions at cost Disposals at opening book value Net gain / (Loss) on revaluation at 31 March 2021 Market Value at 31 March 2021 Investments at Market Value comprise Listed on UK stock exchange. (Historical Cost £481,431) Common Investment Funds |
2021 £ 1,959,795 259,148 (22,103) 314,782 2,511,622 820,110 1,691,512 2,511,622 |
2020 £ 2,083,949 14,745 (23,945) (114,954) |
|
|---|---|---|---|
1,959,795 |
|||
516,944 1,442,851 |
|||
1,959,795 |
All investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at bid price. The basis of fair value for quoted investments is equivalent to the market value using the bid price. Asset sales and purchases are recognised at the date of trade at cost.
| 11. DEBTORS Rents Other debtors 12. CREDITORS: (Amounts falling due within 1 year) Grants to Individual Beneficiaries Accruals |
2021 £ - 1,904 1,904 2021 £ 350 5,240 5,590 |
2020 £ - 1,920 1,920 |
|---|---|---|
2020 £ 350 6,704 |
||
7,054 |
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LADY LUMLEY’S EDUCATIONAL FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31[ST] MARCH 2021
13. STATEMENT OF FUNDS
Endowed Designated Funds
| Restricted Funds £ Balance at 1stApril 2020 410 Gain for the year - Transfers between funds - Balance at 31st March 2021 410 Represented by: Investments - Net Current Assets 410 Balance at 31st March 2021 410 |
Endowed Funds £ General Reserve Fund £ Building Project £ Minibus Replacement £ 2,856,205 20,000 151,836 10,000 393,264 - - - (63,227) - 53,227 10,000 3,186,242 20,000 205,063 20,000 3,155,322 - - - 30,920 20,000 205,063 20,000 3,186,242 20,000 205,063 20,000 |
Total £ 3,038,451 393,264 - 3,431,715 3,155,322 276,393 3,431,715 |
|---|---|---|
The designated building project fund represents amounts put aside by the trustees for new building at Lady Lumley’s school.
The designated general reserves fund represents amounts put aside by the trustees in case of a situation where approved payments exceed income.
The designated minibus replacement fund represents amounts put aside by the trustees for the replacement of the minibus at Lady Lumley’s School.
The endowment fund represents those assets, which must be held permanently by the charity, principally investments. Income arising on the endowment fund can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.
The restricted fund represents the amount held to fund the Daniel Warin Memorial Prize.
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