The Heights Educational Bursary Trust Li - Charities report - 22.1

REGISTERED COMPANY NUMBER: 02039847 (England and Wales)

REGISTERED CHARITY NUMBER: 0294944

Report of the Trustees and

Unaudited Financial Statements

for the Year Ended 31 August 2021

for

The Heights Educational Bursary Trust

Limited

(A Company Limited by Guarantee)

Previously known as

Haslemere Preparatory School Trust

Page

Report of the Trustees

1

to

6

Independent Examiner's Report

7

Statement of Financial Activities

8

Balance Sheet

9

to

10

Notes to the Financial Statements

11

to

16

INTRODUCTION

The Trustees, who are also the directors of the charitable company for the purposes of the Companies Act 2006, present their report with the financial statements of the charitable company for the year ended 31st August 2021. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR FINANCIAL MATTERS

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing those financial statements the Trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP (FRS 102);

- 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 operation.

The Trustees 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.

The Trustees are responsible for the maintenance and integrity of any corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

The charitable company is governed and controlled by its Memorandum of Association dated 28th May 1986, as amended by special resolution of 13 March 2000 and by its Articles of Association adopted by special resolution dated 14th March 2019, and is a limited company, limited by guarantee, as defined by the Companies Act 2006.

Constitution and Objects

The charitable company is constituted under its said Memorandum of Association and is a registered charity, number 0294944. The principal objects of the charitable company are set out in the charitable company's Memorandum of Association and Articles of Association, being: - the promotion and provision for the advancement of education of children in the United Kingdom, designed to give a sound Christian and moral basis to all pupils and in particular the grant of bursaries for that purpose.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02039847 (England and Wales)

Registered Charity number

0294944

Registered office

39 Station Road

Liphook

Hampshire

GU30 7DW

Trustees

T R Cannell

School Principal

A D Cook

Accountant

A P Gardner

Managing Director and Art Dealer

Mrs G Purt

Retired Headmistress

A U Woodman

Deputy Headmaster

Company Secretary

Tropman & Co. Limited

Accountants

Tropman & Co Limited

39 Station Road

Liphook

Hampshire

GU30 7DW

Independent examiner

Nikki Roberts (FCCA)

Traviss & Co Ltd

Chartered Certified Accountants

Newtown House

38 Newtown Road

Liphook

Hampshire

GU30 7DX

THE BOARD OF TRUSTEES AND DECISION MAKING

.

The Trustees who served as both Trustees and as directors of the charitable company during the year are shown above. Trustees are recruited to provide a broad range of complementary professional, management and social skills which are deemed suitable for and in harmony with the charitable company's charitable objects. Since the pandemic began Board meetings have been held by way of Zoom video conferencing supplemented by the Trustees receiving regular reports and bulletins from the Bursar. The Trustees are advised and guided by the Bursar and they and he seek professional advice whenever they deem it necessary. The Trustees endeavour to make all their decisions unanimously. All decisions which they made for this accounting year were made unanimously. None of the Trustees claimed or were paid any fees or reimbursed any expenses they incurred.

RISK MANAGEMENT

The Trustees are responsible for the monitoring and management of the risks faced by the charitable company and are advised and assisted in that regard by the Bursar. Risks are identified, assessed and provided against on a regular ongoing basis, as are the controls and risk prevention systems that are in place. Consequently, the Trustees believe that those controls and systems have allowed and should continue to allow major risks to be identified, avoided and mitigated as far as possible within the resources available to the charitable company.

PURPOSE, MAIN ACTIVITIES AND OBJECTIVES

The charitable company's main charitable purpose is to promote and to provide for the advancement of education of children in schools located in Surrey, West Sussex and Hampshire which are designed to give a sound Christian and moral basis to their pupils. The charitable company does this by granting bursaries to assist parents and guardians in the payment of school fees for children in school Years 5 to 8. The granting of such bursaries and the resulting public benefit have constituted the charitable company's sole charitable activity and that will continue to be the case for so long as the charitable company has funds to grant bursaries. Until such time as its funds have been depleted, the charitable company's intention is to award bursaries annually for ensuing academic years of an amount approximately equal to between 18% and 20% of the funds held by the charitable company and to increase that amount in later years with the aim of utilising all of its funds for the grant of bursaries within the next 4 to 5 years.

ACHIEVEMENTS AND PERFORMANCE

The charitable company's bursary policy and procedures

Before the charitable company's bursary application process began for the 2021-2022 academic year, the Trustees reviewed the charitable company's Bursary Policy, Application Form and its website policy guidelines, paying attention again to the far-reaching and serious financial and personal consequences and implications which the COVID-19 pandemic was continuing to have upon family health, finances and the payment of school fees.

As for last year, the Trustees resolved: (a) to actively encourage parents whose children were awarded bursaries for the 2020-2021 academic year, and who would age-qualify for a bursary for the 2021-2022 academic year, to apply again to the Trust for a bursary, and (b) seek out other parents with children attending Preparatory schools in Surrey, West Sussex and Hampshire needing help in paying school fees for the 2021-2022 academic year.

Accordingly, the Bursar contacted the Heads and Bursars of many fee-paying schools in the area and asked them to draw to the attention of parents who might need financial help in paying school fees the existence and purpose of the charitable company and to encourage such parents to make a bursary application for the 2021-2022 academic year. In addition, the Bursar contacted parents of children who were currently enjoying a bursary from the charitable company and who would age qualify for a bursary for the 2021-2022 academic year informing them that the charitable company would continue to take into account the financial effect the pandemic was having upon their family finances and their ability to pay, or to contribute towards paying, school fees for the 2021-2022 academic year.

The grant of bursaries for the 2020-2021 Academic Year

For the 2020-2021 academic year, the charitable company received twenty-five bursary applications and granted twenty-one bursaries for children attending seven Preparatory schools in Surrey and West Sussex. Those bursaries had a total value amounting to £213,249 (which represented approximately 14% of the total funds held by the charitable company as at the charitable company's year-end on 31 August 2020.

The grant of bursaries for the 2021-2022 Academic Year

For the 2021-2022 academic year, the charitable company received thirty-nine bursary applications and granted thirty bursaries for children attending eleven Preparatory schools in Surrey, West Sussex and Hampshire. Those bursaries had a value for the 2021 autumn term of £92,746 and for each of the 2022 spring and summer terms a value of £84,024, thus making the total value of bursaries granted by the Trust for 2021-2022 academic year in the sum of £260,794. That total sum represents approximately 18% of the total funds held by the charitable company as at its year end 31 August 2021.

The charitable company's IT systems

The charitable company's IT systems, which were upgraded during the 2018-2019 accounting year, continued to ensure that all financial and personal information provided by parent applicants for bursaries, or created and processed by the charitable company in digital form, continued to enjoy enhanced protection from: (i) the hosted desktop services which the charitable company receives from its hosted desktop provider (and which ensures that all the charitable company's data is protected to the highest possible level with servers being located in two of Europe's most secure data centres, accredited and certified to ISO27001 and PCI DSS security standards), and (ii) the charitable company's firewall and malware products and other multi-layered internet IT security services provided and updated regularly by ESET Internet Security.

General Data Protection Regulation

Since the implementation of the General Data Protection Regulation (GDPR) in May 2018, the charitable company has continued to keep under review the way in which it receives, handles, processes, stores and disposes of the financial and personal information which it receives every year from parents applying for bursaries for their children. The Bursar regularly conducts an information audit across the charitable company's charitable activities identifying the data which the charitable company processes and how it flows through and out of those charitable activities.

During each year the Bursar reviews the Trust's privacy impact assessment employed to identify, reduce and where possible eliminate the privacy risks associated with the charitable company's annual bursary application process. In consequence, the charitable company is satisfied that all aspects of its activities are fully compliant with the GDPR and Data Protection legislation.

FINANCIAL REVIEW - THE BURSARY FUND, INVESTMENTS AND RESERVES POLICY

The Bursary Fund

As at 31 August 2021, total unrestricted funds held in the Bursary Fund stood at £1,442,485. There were no restricted funds, and the charitable company held no other assets.

Banking and Investments

The charitable company operates two bank accounts held with Lloyds Bank Plc, being: an ordinary business current account and a 32-day interest bearing deposit account. As at 31 August 2021, the credit balance of those accounts was £304,176. The charitable company has no bank loans or overdraft facilities and does not need, nor anticipates that it will ever need, any such financial support. The charitable company's remaining funds continue to be invested with Aberdeen Standard Capital (formerly known as Standard Life Wealth) in its Balanced Bridge Fund, and in its Phoenix Fund.

The Balanced Bridge Fund is an authorised unit trust and a balanced multi-asset fund that targets an income of 3.5% and is one of Aberdeen Standard Capital's core offerings for many clients (including many charities) and has been running for more than 20 years, drawing on the company's global investment experience and expertise. It is classified as a medium risk fund and has a benchmark of 60% equities, 30% bonds and 10% cash. The Phoenix Fund was set up in 2014 and is also an authorised unit trust and a well-diversified medium-low risk fund with focus on capital preservation. It has a cash +2% performance target and a strong track record of out-performance.

Aberdeen Standard Capital sends the charitable company quarterly reports and year-end reports which the charitable company's Independent Financial Adviser, Murray West Associates Limited, reviews and discusses with the Bursar and they in turn then report to the Trustees with full details along with their individual comments and advice on the performance of both funds and any action they believe needs to be taken.

The charitable company's investment objectives are for a balanced return of income and capital with a performance target of Consumer Price Index +2% based on a medium low risk profile and with all income being reinvested. During this accounting year the Balanced Bridge Fund and the Phoenix Fund have each performed well and in fact better than expected by the Trustees and their advisers given the uncertainties of the COVID-19 pandemic upon investment markets around the world; as at 31 August 2021, the total value of the charitable company's investments with Aberdeen Standard Capital stood at £1,152,093, being £172,814 above book cost.

Investment Policy and Reserves Policy

The charitable company's investment policy is focussed on both the capital preservation of its investments and achieving the performance targets of the Balanced Bridge Fund and the Phoenix Fund mentioned above. As shown in the preceding section, the investment policy has proved sound and successful.

The charitable company's reserves policy has been designed to ensure it meets its commitments for making each academic year's bursary payments in full and pays the cost and expenses of running its day to day affairs as they arise; achievement of these objectives is guaranteed by the charitable company always holding sufficient cash in its ordinary business current accounts and its interest-bearing deposit account held with Lloyds Bank Plc.

PUBLIC BENEFIT

The Trustees confirm that (i) throughout the accounting year they have complied with all guidances as to the operation of the public benefit requirement published by the Charity Commission pursuant to section 17 of the Charities Act 2011, and (ii) at all times the charitable company has been administered and has been operated exclusively for its charitable purposes. The charitable company's bursary policy continues to be means-tested and is gender, socially and racially neutral and has been widened to bring into account other factors which could make payment of school fees unexpectedly difficult and stressful, such as a parent suffering a serious illness or accident or the social needs of the child where, for example, they have suffered and been materially affected by bullying or racial abuse, or for some other family crisis.

THE CHARITABLE COMPANY'S INDEPENDENT EXAMINER

Reason for and person appointed

Under the legislation for Charity reporting and accounting, and because the charitable company's gross annual income for the foreseeable future will not exceed £1,000,000, Nikki Roberts of Traviss & Co Ltd has been retained by the charitable company to be its Independent Examiner of the charitable company's accounts.

Disclosure of information to the Independent Examiner

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the independent examination of these Financial Statements and of which the Independent Examiner has not been made aware and that they have taken appropriate steps to establish all such relevant information and to ensure he has been made aware of them.

Approved by order of the board of trustees on 11 May 2022 and signed on its behalf by:

A P Gardner - Trustee

Independent examiner's report to the trustees of The Heights Educational Bursary Trust Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Nikki Roberts

FCCA

18 May 2022

31.8.21

31.8.20

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Investment income

2

32,699

-

32,699

42,161

EXPENDITURE ON

Charitable activities

3

Investment costs

12,224

-

12,224

13,117

Bursary preparation costs

63,538

-

63,538

51,284

Bursaries

213,249

-

213,249

108,234

Other

4

83

-

83

13

Total

289,094

-

289,094

172,648

Net gains on investments

137,367

-

137,367

35,876

NET INCOME/(EXPENDITURE)

(119,028

)

-

(119,028

)

(94,611

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,561,513

-

1,561,513

1,656,124

TOTAL FUNDS CARRIED FORWARD

1,442,485

-

1,442,485

1,561,513

CONTINUING OPERATIONS

The statement of financial activities includes all gains and losses recognised in the year.

All other income and expenditure has arisen from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

31.8.21

31.8.20

Unrestricted

Restricted

Total

Total

funds

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Investments

8

1,152,093

-

1,152,093

1,309,308

CURRENT ASSETS

Cash at bank

304,176

-

304,176

263,417

CREDITORS

Amounts falling due within one year

9

(13,784

)

-

(13,784

)

(11,212

)

NET CURRENT ASSETS

290,392

-

290,392

252,205

TOTAL ASSETS LESS CURRENT LIABILITIES

1,442,485

-

1,442,485

1,561,513

NET ASSETS

1,442,485

-

1,442,485

1,561,513

FUNDS

10

Unrestricted funds

1,442,485

1,561,513

TOTAL FUNDS

1,442,485

1,561,513

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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 Trustees and authorised for issue on 11 May 2022 and were signed on its behalf by:

A P Gardner - Trustee

1.	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, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the charitable company has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charitable company to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

The charitable company is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Investments

Investments are valued at fair value with surplus or deficit on revaluation recognised in net income/expenditure for the year.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise of cash at bank, cash in hand and short term deposits with an original maturity date of three months or less.

2.	INVESTMENT INCOME

31.8.21

31.8.20

£

£

Bank interest received

58

459

Investment income

32,641

41,702

32,699

42,161

3.	CHARITABLE ACTIVITIES COSTS

Investment

Bursaries

Bursary

31.08.2021

Costs

Awarded

Preparation

Costs

£

£

£

£

Direct

-

213,249

-

213,249

Support (see note 7)

-

-

10,544

10,544

Governance (see note 7)

-

-

52,994

52,994

Investment costs

12,224

-

-

12,224

Total

12,224

213,249

63,538

289,011

4.

OTHER

31.8.21

31.8.20

£

£

Interest payable and similar charges

83

13

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.

6.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Investment income

42,161

-

42,161

EXPENDITURE ON

Charitable activities

Investment costs

13,117

-

13,117

Bursary preparation costs

51,284

-

51,284

Bursaries

108,234

-

108,234

Other

13

-

13

Total

172,648

-

172,648

Net gains on investments

35,876

-

35,876

NET INCOME/(EXPENDITURE)

(94,611

)

-

(94,611

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,656,124

-

1,656,124

TOTAL FUNDS CARRIED FORWARD

1,561,513

-

1,561,513

7.	SUPPORT COSTS

All support and governance costs are allocated to the charitable activities.

Support and governance costs, allocated to the charitable activity of 'bursary preparation', were as follows:-

Support costs

2021

2020

£

£

Computer and Software

1,531

566

Website

515

387

Other

847

512

Insurance

2,089

2,290

Offices services and supplies

5,562

5,408

10,544

9,163

Governance costs

2021

2020

£

£

Independent Examiner fee

1,200

1,200

Legal and Consultancy fees

44,501

34,759

Bookeeping and professional fees

7,293

6,162

52,994

42,121

8.	FIXED ASSET INVESTMENTS

Cash and

Listed

settlements

investments

pending

Totals

£

£

£

MARKET VALUE

At 1 September 2020

1,288,574

20,734

1,309,308

Additions

-

316,641

316,641

Disposals

(284,000

)

(327,223

)

(611,223

)

Revaluations

137,367

-

137,367

At 31 August 2021

1,141,941

10,152

1,152,093

NET BOOK VALUE

At 31 August 2021

1,141,941

10,152

1,152,093

At 31 August 2020

1,288,574

20,734

1,309,308

There were no investment assets outside the UK.

The movement in value of the fixed asset investments has been adjusted in the financial statements.

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.21

31.8.20

£

£

Accounts Payable

7,323

4,751

Other creditors

1,461

1,461

Accruals and deferred income

5,000

5,000

13,784

11,212

10.	MOVEMENT IN FUNDS

Net

movement

At

At 1.9.20

in funds

31.8.21

£

£

£

Unrestricted funds

General fund

1,561,513

(119,028

)

1,442,485

TOTAL FUNDS

1,561,513

(119,028

)

1,442,485

Net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

32,699

(289,094

)

137,367

(119,028

)

TOTAL FUNDS

32,699

(289,094

)

137,367

(119,028

)

Comparatives for movement in funds

Net

movement

At

At 1.9.19

in funds

31.8.20

£

£

£

Unrestricted funds

General fund

1,656,124

(94,611

)

1,561,513

TOTAL FUNDS

1,656,124

(94,611

)

1,561,513

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

42,161

(172,648

)

35,876

(94,611

)

TOTAL FUNDS

42,161

(172,648

)

35,876

(94,611

)

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.9.19

in funds

31.8.21

£

£

£

Unrestricted funds

General fund

1,656,124

(213,639

)

1,442,485

TOTAL FUNDS

1,656,124

(213,639

)

1,442,485

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

74,860

(461,742

)

173,243

(213,639

)

TOTAL FUNDS

74,860

(461,742

)

173,243

(213,639

)

11.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2021.