GOVERNORS FOR SCHOOLS(FORMERLY SCHOOL GOVERNORS' ONE-STOP SHOP)
31 MARCH 2018
Company Number: 3879854
Registered Chanty Number: 1078330
AGP
Chataered Accountants and Statutoty AuditorsSutton Quays Business Park
Sutton WeaverRun cornCheshire
WA7 3EH
GOVERNORS FOR SCHOOLS
YEAR ENDED 31 MARCH 2018
CONTENTS
I Legal and Administrative Information
2 - 6 Report of the Trustees
7 - 9 Independent Auditors' Report to the Trustees
10 Statement of Financial Activities
11 Income and Expenditure
12 Statement of Financial Position
13 Statement of Cash Flovvs
14 - 21 Notes to the Financial Statements
GOVERNORS FOR SCHOOLSLEGAL AND ADMINISTRATIVE INFORMATION
Trustees who served the charitablecompany during the year
Linda Wilding (Chair) (appointed 17/10/17)lan ArmitageClifford Burroughs (resigned 20/6/17)Deborah Conner (resigned 6/3/18)Sophie Hulm (resigned 17/10/17)Joanna PageMartin Lawrence MBEAnne PunterDavid Rowsell
Company Secretary
Chief Executive
Margaret Cooke MBE
Louise Cooper
Registered Office c/o AGPSutton Quays Business ParkSutton WeaverRuncornWA7 3EH
Principal Office 2"' Floor, 29 Ludgate HillLondonEC4M 7JR
Company Registration number
Charity Registration Number
Auditors
3879854
1078330
AGPChartered AccountantsSutton Quays Business ParkSutton WeaverRuiicoi'I1
WA7 3EH
Bankers Lloyds BankPO Box 1000AndoverBx1 1LT
Solicitors Pinsent Cuttis1 Park rowLeedsLS1 SAB
GOVERNORS FOR SCHOOLSREPORT OF THE TRUSTEES
YEAR ENDED 31 MARCH 2018
The Trustees present their anmial report together with the audited financial stateinents for thc year ended31st March 2018 which are also prepared to meet the requirements for a directors' report and accounts forCompanies Act puiposes.
Structure
Governors for Schools is a company limited by guarantee and a registered charity. The company'siMemorandum and Atxiclcs of Association are the primaiy governing documents.
Objectives
We facilitate the recruitment and placement of people with business and inanagenient skills who are willingto act as governors with the aim of strengthening the governing boards of schools. We believe this is ofbenefit to thc public through the advancement of education by making available advice and assistance toall schools.The company reviews its aims, objectives and activities each year ensuring they remain focused on thcstated purpose of the charity. The Trustees refer to thc guidance given by the Charity Commission on publicbenefit during this process and assess how successful each activity has been and what benetits have beenbrought to the groups of people the charity is set up to fielp.
Why do we exist?
Governors for Schools exists to improve educational standards so that children and young people havethe chance to realise their full potential. We believe the key to improving school performance is effectivegovernance. By finding, nurturing ailtl supporting a committed network of governors we help to drivesystematic challge in liow scllools operate.
We estimate that thc English school system needs to tind some 30,000 nev, governors every year. Inaddition we can see that the responsibilities of governors and tmstees are changing as the school systemmoves away from local authority control towards indcpendcnt academies. Accordingly the need for boardsto bring specific skills in areas such as finance, the law, human capital, property and marketing is increasingif schools are to take advantage of the greater autonomy they have been given.
We are committed to providing those responsible for appointing governors, normally the super-busy chair-
person, with the best governor rectxtitment service in the sector.
What is our Theory of Change?
We believe that the main driver of educational outcomes is the quality of the leadership throughout a schoolor group of schools. The appointment of the leader is the responsibility of the Board of Governors in asingle school or the Board of Trustees in a single or multiple academy chain. Better governance leads tobetter outcomes for pupils and the communities each school serves. Where govmnancc is strong,perfonnance tends to be good and the pupils in these schools have better life chances.
What do we believe?
Effective boards require a combination of skills and experience, which can be found in abundance outsidethe schools sector, for example in public and private industry, academia and the professions. Schools arelike many other professional service enteiprises; they share common challenges and oppotxunities.
GOVERNORS FOR SCHOOLSREPORT OF THE TRUSTEES (CONTINUED)
YEAR ENDED 31 MARCH 2018
There are many people willing to dedicate their valuable time to helping schools because
~ we all share an interest in giving children and young people excellent education~ many people can see how they can develop their own skills by working as "non-executives" on governing
boards
some wish to influence the way schools integrate with communities and participate m the markets forfutther learning and indeed employment.
To be effective, boards must serve the pupils, parents and the communities they are part of. Boards nccdto understand local context and specific needs and also open themsclvcs up to account. Accordingly whilea candidate's ability, experience, motivation and behaviours are of paramount importance, representationis also vital. Successful boards work with the leadership and staff of schools as well as the parents and the
government which pays for the service.
What do we do?
We work with a growing universe of businesses and universities to encourage their people to becomeschool governors and to provide them with first class induction training so they can start contributing bothquickly and effectively. Secondly we understand schools' needs, paying particular attention to the skillsand experience they want to bring to their boards to make them more effective. We match volunteers toschools on the basis of skills and location.
Our values
~ Excellence~ Integrity~ Collaborative~ Pioneering
What arc our Strategic Priorities?
Deliver excellent customer experience in our core seivices
Increase the mimber of volunteers we recmit and place with schools each year
Better prepare each candidate so that new governors are highly effective as quickly as possible
Measure and report our impact
Broaden the funding base of the charity to allow us to double our scale
Achievements in 2017-18
We recorded 384 I vacancies from 2228 educational establishments. 2402 volunteers registered with us and1673 were placed as governors in schools. The composition of volunteers was both ethnically diverse with
27% from a BAME background and skewed towards young and mid -professionals, with 63% agedbetween 25 and 44. London and the south east contribute 60% of all volunteers which reflects the strongparticipation of firms in London who encourage staff to volunteer for work with schools. Our effortsoutside London and the South East are strongest in the North West where we have built a productiverelationship with the University of Manchester and are nutturing links with businesses. Elsewhere we workclosely with local authorities, individual schools, multi-academy tmsts and of course employers who
supply the talent governing boards need.
GOVERNORS FOR SCHOOLSREPORT OF THE TRUSTEES (CONTINUED)
YEAR ENDED 31 MARCH 2)H8
Our To Em lo ers;Llo ds Bankin GrouPWCDeutsche BankKPMGDe artment for Education
HSBCNHSAccentureHMRCFinancial Conduct Authorit
Our To UnivcrsiticsManchester Universit
Universit of LeedsUniversit of OxfordUnivcrsit of CoventUniversit of Liver ioolIm erial Colle e LondonKin 's Colle e London
We want our governor volunteers to get up to speed as effectively as possible. In order to achieve this, wehave created a series of elearmng modules winch governors can access from their phones or laptops. The
topics are Induction, Pcrfottnancc data, Finance and Driving School Improvement.
Apart from our core business of rccniiting, placing and supporting volunteers, a big focus of the year has
been changing our name and identity from SGOSS to Goveniors for Schools. With thc suppotX of thebranding agency Someone, we chose an identity which is modcni and bold, and the logo shows the impactthat we want each of our governors to have on the schools they are placed in. We are pleased with the ncwwcbsite and marketing materials, which convey what wc do and the kind of organisation wc are veryeffectively.
Our financial condition at the end of the year is sound. Wc have healthy reserves and a multi-year funding
coinmitment fiom the 80/20 Charitable Fund.
Our thanks for this year go to2402 people who volunteered to become governors1673 people who accepted appointments as governors2228 educational establishments who registraed vacancies with us.50 businesses, universities and other organisations who encourage staff to become school goveniors (seetables above for Top- Business and Universities).KPMG, Allen & Oveiy, and Arbor Education for sponsoring the creation of elearning modules.Lloyds Banking Group for donations to cnsurc we support our governors effectively.
The year aheadWc believe that prospects for Governors for Schools arc very positive, driven by forces affecting schools,businesses, universities, and people across England.We have tangible plans across the whole organisation which will drive both continuous improvement and
in some places a step change in how we do things. We want to double the number of businesses we areworking with actively, and aim to bring another 10 universities on board. In paixicular we want tostrengthen our recruiting activities outside of London to ensure we can meet demand for governors from
schools.
GOVERNORS FOR SCHOOLSREPORT OF THE TRUSTEES (CONTINUED)
YEAR ENDED 31 MARCH 2018
We are looking internally at how we can make the most of our resources and make our processes moreefficient. Measurtng our mipact is a new area for us and we are working closely with Pro Bono Economicsto get robust feedback fiom our volunteers and schools, We also plan to build our profile externally, in
both the education and business sectors. In parallel we are building the relationships to diversify ourfunding.
Reserve Policy
Reseivcs at the end of the year consisted of Restricted Funds 812,820; Designated Fixed Asset Fund (tobe matched against future depreciation charges) f24, 684; Designated Reserve Fund 8129,092; andUnrestricted Funds of f785,216.
The Trustees' current policy is to hold sufficient reserves to provide working capital to meet contractedcommitments and an organised winding down of the company should this be required. These reserves arereflected in the designated reserve fund shown in the accounts. Donations from supporting organisationsare sought early in the financial yeai to provide working capital for the year ahead.
Risk Management
The Company has a comprehensive on-going and up-to-date risk register. The Board formally reviewsstatus at least once per year versus the following criteria: probability, impact, and mitigating action. Awritten version of the agreed updated analysis is signed off by Board meinbers.
The Board takes direct responsibility for management of risk in two business critical areas; these areas arecessation or reduction of funding and the perfotmance of the Chief Executive. The other risks arcdesignated as operational and the Chief Executive is responsible for monitoring changes and alerting theBoard.
Governance and ManagementNew Trustees are recruited to the Board as required in order to ensure that the Board membership has the
proper range of skills and competencies. A skills audit is undertaken regularly to identify gapa in expertisc.
Each Trustee nomially engages for a minimum of three years, with the option to continue if appropriate,up to a maximum of 9 years.
The training and induction provided for new Trustees will depend on their existing experience. Wherenecessary, induction will comprise of training on charity, legal and financial matters. All Trustees areprovided with copies of Company policies, procedures, minutes, accounts, budgets, business plans andother documents that they will need to undertake their role as Trustees. Each new Trtistee will be offeredthe opportunity to meet with/talk with existing Trustees, and all potential new Tmstees are offered the
opportunity to attend a Board Meeting as an obscrvcr prior to signing up.
The Tmstees meet quarterly to monitor progress and to take decisions concerning the strategic direction ofthc charity. The Chief Executive attends all Board meetings. The Board approves the annual BusinessPlan and detailed budget. Thc staff of the Governors for Schools are authorised to work within theframework of the Busmess Plan and budget under the direction of the Chief Executive. The Trusteesreceive reports from the Chief Executive, comprising financial, statistical and other information to enablethem to measure the company's performance against budget, targets and objectives for the year.
GOVERNORS FOR SCHOOLSREPORT OF THE TRUSTEES (CONTINUED)
YEAR ENDED 31 MARCH 2018
None of the Trustees receive remuneration or other benefit from their work with the charity. Anyconnection between a Trustee or senior manager of the charity must be disclosed to the full board ofTrustees. In the current year no such related party transactions were reported, other than as disclosed in
the notes to the accounts.
Trustees' ResponsibilitiesThe Trustees (who are also directors of Governors for Schools for the purpose of Company law) areresponsible for preparing the trustees' report and the financial statements in accordance with applicablelaw and United Kingdom Accounting Standards including Financial Reporting Standard 102: TheFinancial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom GenerallyAccepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give atrue 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 policiesand apply them consistently; observe the methods and principles in the Charities SORP; makejudgements and accounting estimates that are reasonable and prudent; state whether applicable UKAccounting Standards have been followed, subject to any material departures disclosed and explained in
the financial statements, and prepare the financial statements on the going concern basis unless it isinappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that disclose with reasonableaccuracy 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 forsafeguarding the assets of the charitable company and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.
In so far as the trustees are aware, there is no relevant audit information of which the charitablecompany's auditors are unaware and the trustees have taken all steps they ought to have taken to makethemselves aware of any relevant audit information and to establish that the auditors are aware of thatinformation.
Small Company ProvisionThis report has been prepared in accordance with the provisions applicable to companies entitled to thesmall companies exemption.
Th ~rt fthi 1'
pp d bt/154 dig d bhlf fth b d fch 1
by:
LINDA WILDING
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF GOVERNORS FORSCHOOLS THE YEAR ENDED 31ST MARCH 2018
Opinion
We have audited the financial statements of Governors for Schools for the year ended 31"March 2018which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the
Statement of Financial Position and notes to the financial statentents, including a summary of significantaccounting policies. The financial reporting framework that has been applied in their preparation is
applicable law and United Kingdom Accounting Standards mchiding Financial Reporting Standard 102:The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kmgdom
Generally Accepted Accounting Practice).
This report is made solely to the Charity's trustees, as a body, in accordance with section 144 of the
Charitics Act 2011 and thc 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 repott and for no other purpose. To the fullest extent permitted by law, we do not accept orassume responsibility to anyone other than thc Charity's trustees as a body, for our audit work, for this
report, or t'or the opinions we have fortued.
In our opinion the financial statements:
~ give a true and fair view of the Charity's state of affairs as at 31"March 2018 and of its income
and cxpcnditure for the year then ended;~ have been properly prepared m accordance with United Kingdom Generally Accepted Accounting
Practice; and~ have been prepared in accordance with the Companies Act 2006.
Basis for opinion
Wc. conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and
applicable law. Our responsibilities under tfiose standards are further described in the Auditor's
responsibilities for thc audit of the tinancial statements section of our report. We are independent of thc
Charity in accordance with thc ethical requirements that are relevant to our audit of the financial statements
in the UK. including the FRC's Ethical Standard and we have fulfilled our other ethical responsibilities in
accordance with these requireinents. 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 trustee's use of the going concerti basis of accounting in the preparation of the financial
statements is not appropriate; or~ the trustee has 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 ptniod of at least twelve months from the date when the financial statements
are authorised for issue.
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF GOVERNORS FORSCHOOLS THE YEAR ENDED 31ST MARCH 2018 (CONTINUED)
Other information
The tmstees are responsible for the other information. The other information comprises the infortnationincluded in the annual report, other than the financial statements and our auditor's report thereon. Ouropmion on the financial statements does not cover the other information and, except to the extent otherwiseexplicitly 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 informationand, in doing so, considei whether the other infortnation is materially inconsistent with the financialstatements or our knowledge obtained in the audit or. otherwise appears to bc materially misstated. If weidentify such material inconsistencies or apparent material misstatements, wc arc required to detertninewhether there is a material misstatement in thc financial statements or a material misstatement of the otherinformation. If, based on the work we have perfortned, wc conclude that thcrc is a material misstatementof this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
ln the light of the knowledge and understanding of the Charity and its environment obtained m the courseof the midit, we have not identified material niisstatements in the Trustee's Annual Report.
We have nothing to report m respect of the fogowing matters in relation to which the Charities Act 20 I I
requires us to report to you if, in our opinion:
~ adequate accounting records have not been kept, or reiurns adequate for our audit have noi beenreccivcd from branches not visited by us; or
~ the financial statements are not in agreement with the accountmg records and returns; or~ we have not received all the information and explanations we require for our audit; or~ the directors were not entitled to prepare the financial statements in accordance with the sniall
companies regime and take advantage of the small companies' exemptions in preparing thedirectors' report and from the requirement to prepare a strategic report.
Responsibilities of the trustees
As explained more fully in the trustcc's responsibilities statement, the trustees are responsible for thepreparation of the financial statements and for being satisfied that they give a true and fair view, and forsuch internal control as thc trustee determines is necessary to enable the preparation of financial statementsthat are fi.ee from material misstatcmcnt, whether due to fi.aud or ertor.
In preparing the financial statements, the trustees are responsible for assessing the Charity's ability tocontinue as a going concern, disclosing, as applicablc, matters related to going concern and using the goingconcern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations,or has no realistic alternative but to do so.
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF GOVERNORS FORSCHOOLS FOR THE VEAR ENDED 31ST MARCH 2018 (CONTINUED)
Our responsibilities for the audit of the financial statements
The trustees have elected for the financial statements to be audited in accordance with the Chartties Act2011 rather than the Companies Act 2006. Accordingly, we have been appointed as auditor under section144 of the Charities Act 2011 and report in accordance with the regulations made under section 154 of thatAct.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor's report that includesour opinion. Reasonable assurance is a high level of assurance but is not a guarantcc that an audit conductedin accordance with ISAs (UK) v, ill always detect a material misstatement when it exists. Misstatementscan artsc fiom fiaud or error and are considered material if, individually or in the aggregate, they couldreasonably be expected to influence thc economic decisions of users taken on the basis of these financials'tatcmcll ts.
A furiher description of our responsibilities for ihe audit of the financial statemcnis is located on theFinancial Reporting Council's websiteat lvlviv tic oi uk;iuiiiioisicsponsibiliiicw This description formspart of our auditor's report.
Sutton Quays Business ParkSutton WeaverRuncornWA7 3 EH
AGP Chartered Accountantsand Statutoty Auditors
29 August 2018
AGP Chartered Accountants are cligiblc to act as an auditor in terttis of section 1212 of the CompaniesAct 2006.
GOVERNORS FOR SCHOOLS
STATEMENT OF FINANCIAL ACTIVITIESFor the year ended 31"March 2018
Note Un-Restricted
Funds
RestrictedFunds
TotalFunds
2017/2018
TotalFunds
2016/2017
IncomeIncome fi'om CharitableActivities:
Grant- DfEDonationshlvcstnlcnt laconicOther IncomeTotal Income
859,071261
859,332
94,333 953,404261
228,7611,124,000
166600
94,333 953,665 1,353,527
Expenditure
Expenditure on CharitableActivities:Rcclxfiting & Placement ofSchool GovcmorsOtherTotal Expenditure
68.087167,914
709,325
61,397106,517
677, 122 624,22032,203783,639 93,600 877,239 692,307
Net Income / (Expenditure)for the Year BeforeTransfersTransfers between Funds:
75,693
18,733
733 76.426
(18,733)
661,220
Net Income / (Expenditure)for the Year
94,426 (18,000) 76,426 661,220
Other Recognised Gainsand Losses
Net Movement in Funds 94,426 ~10000 76,426 661,220
Reconciliation of FundsBalances brought forward at1 Apri12017
844,566 30,820 875,386 214, 166
Balances carried fomvardat 31 March 2018
938,992 12,820 951,812 875,386
The statement of financial acuvilics mcludcs all gains and losses and losses recognised m the year.All income and expenditure derives from continuing activities.
10
GOVERNORS FOR SCHOOLS
INCOME & EXPENDITUREFor thc year ended 31"March 2018
TOTALNote 2017/2018
TOTAL2016/2017
IncomeDfE Grants RestrictedOther RestrictedDonations UnrestnctedOther Umcstricted
ExpenditureSalariesOther Operational ChargesDepreciation
Surplus ofIncome/Expenditure
556Total Income
10
TotalExpenditure
094,333
859,071261
953,665
560,919306,566
9,754
877,239
76,426
228,76124,000
1,100,600166
1,353,527
412,824272,879
6,604
692,307
661,220
Net Transfer to/from Funds
Restricted fund
Designated Fixed Asset FundUnrestricted Fund
13 (18,000)10,20484,22276,426
(26,326)1,718
685,828661,220
11
GOVERNORS FOR SCHOOLS
STATEMENT OF FINANCIAL POSITIONAs at 31"March 2018
Note 2017/2018 2016/2017
Fixed AssetsTangible fixed assets 10 24&684 14,480
Current AssetsDebtors & PrepaymentsCash at bank and in hand
11 480,213476,653956,866
28,829871,497900,326
LiabilitiesCreditors falling due within one year
Net Current Assets
Total Assets less Current Liabilities
Net Assets
12 29,738
927,128
951&812
39,420
860,906
875,386
951 812 8&5 386
FundsRestricted FundDesignated Fixed Asset FundDesignated Reserve FundUnrestricted Fund
1310
12,82024,684
129,092785,216951,812
30,82014,480
129,092700,9948&5 386
The directors are satisfied that the company is entitled to exemption from the provisions of the CompaniesAct 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477, andthat no member or members have requested an audit pursuant to section 476 of the Act. However, thecharity is required to be audited under Charities Act 2011.
The directors acknowledge their responsibility for complying with the requirements of the Act with respectto accounting records and for the preparation of accounts.
These financial statements have been prepared in accordance with the provisions applicable to companiessubject to the small companies' regime.
These fina 1 statemepts were approved by the directors on 29 August 2018 and are signed on theirbehalf b
LINDA WILDINGCHAIR
12
GOVERNORS FOR SCHOOLS
STATEMENT OF CASH FLOWSAs at 31u March 2018
Cash flows from operating activitiesNet income
2017/2018 2016/2017
76,426 661,220
d dj ustinents for:Depreciation of tangible fixed assetsOther interest receivable and smiifar mcomeGains on disposaf of tangible fixed assetsAccmied (income)/expenses
9,754(261)
(2,941)
6,604(166)(600)
3,114
Changes in:Trade and other debtorsTrade and other creditors
(451,384)(6,741)
14,6307,891
Cash generated fi'om operations
Interest received 261 166
(375,147) 692,693
Net cash (used in)/from operating activities (374,886) 692,859
Cash flows from investing activitiesPurchase of tangible assetsProceeds from sale of tangible assets
(19,958) (8,322)600
Net cash used in investing activities (19,958) (7,722)
Nct (decrease)/increase in cash and cash equivalentsCash and cash equivalents at beginning of year
(394,844)871,497
685, 137186,360
Cash and cash e&luivalents at end of year 476,653 871,497
13
GOVERNORS FOR SCHOOLSNOTES TO THE ACCOUNTS
I General information
The charity is a private company lumted by guarantee, registered in England and Wales and aregistered charity in England and Wales. The address of the registered office is Sycamore House,Sutton Quays Business Park, Sutton Weaver, Runcorn, Cheshire, WA7 3EH.
2 Statenient of compliance
These financial statements have been prepared in compliance with FRS 102, 'Thc FinancialReporting Standard applicable in the UK and the Repubhc of Ireland', the Statement ofRecommended Practice applicable to charitics preparing their accounts in accordance with thcFinancial Reporting Standard applicable in thc UK and Repubhc of Ireland (FRS 102) (ChariticsSORP (FRS 102)) and the Charities Act 2011.
3 Accounting Policies
3, 1 Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by therevaluation of certain financial assets and liabilities and investment properties measured at fairvalue through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
3.2 Going concern
There are no material uncettainties about the charity's ability to continue.
3.3 Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgcmcnts, estimatesand assumptions that affect thc amounts reported. These estimates and judgements arc continuallyreviewed and are based on experience and other factors, including expectations of future eventsthat are believed to be reasonable under the circumstances.
3.4 Fund Accounting
~ Uniestricted funds are available for use at the discretion of the trustees in furtherance ofthe general objectives of the charity.
~ Designated funds are umestricted funds eartnarked for particular purposes.~ Restricted funds are subjected to restrictions on their expenditure imposed by the donor.
14
GOVERNORS FOR SCHOOLSNOTES TO THE ACCOUNTS (Continued)
3.5 Recognition of Income
All incoming resources are included in the statement of financial activities when the charity is entitled tothe income and the amount can be quantified with reasonable accuracy. Incoming resources received forspecific purposes are included in the statement of financial activities, The balance of income received forspecific purposes but not matched to relevant expenditure during the period is shown in the RestrictedIncome Fund and Balance Sheet.
~ Income from charitable activities and donations is reccivcd by way of grants, sponsorshipand donations and is included in fiill in the Statement of Financial Activities when
receivable. Grants, where entitlemcnt is not conditional on thc delivery of a specificperfomiance by the charity, are recognised when the charity becomes unconditionallyentitled to the grant.Intangible income represents services and facilities donated by third parties and is mcludedat the value to Governors for Schools where this can be quantified by the Board and whereprovided at a cost to the third party.
3.6 Exptniditure
All payments are recognised in the accounts in the year to which they relate. Expenditure is
recognised on an acciuals basis as a liability is incuned.~ Charitable expenditure comprises those costs incurred by the charity in the dehvery of its
activities. It includes both costs that can be allocated directly to such activities and thosecosts of an indirect nature necessaiy to suppott them.
~ Governance costs include those costs associated with meeting the constitutional andstatutory requirements of the charity and include the audit fees and costs linked to thestrategic management of the charity.
~ All costs are allocated between the expenditure categories of the SoFA on a basis designedto reflect the use of the resource.
~ Costs relating to a particular activity arc allocated directly; others are apportioned on an
appropriate basis.
3.7 Fixed Assets and Depreciation
Purchases are capitalised where the expected useful life of the items exceed one year and wherethe cost of acquisition exceeds 2500 including VAT. Assets are depreciated over their expecteduseful life by the straight line method. The classes and standard asset lives are reviewed annually.The depreciation rates applied to the main categories of assets are as follows:
Class ofAssct
Computer Equipment & Furniture
Standard Useful Life
3 ycal's
3.8 Debtors
Trade and other debtors are recognised at the settlement amount due afler any trade discounioffered. Prepayments are valued at the amount prepaid after taking account of any trade discountsClue.
15
GOVERNORS FOR SCHOOLSNOTES TO THE ACCOUNTS (Continued)
3.9 Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from
a past event that will probably result in the transfer of funds to a third party and the amount due tosettle the obhgation can be nieasured or estimated reliably. Creditors and provisions are normally
recognised at their settlement amount after allowmg for any trade discounts due.
3.10 Taxation
The company is a registered charity and as such is exempt from Income and Corporation taxesunder the provision of the Income and Corporation Taxes Act 1988. The cost of Value Added Taxincurred by the company has been mcludcd in thc Income and Expenditure Account.
3.11 Financial Instruments
The charity only has tinancial assets and financial liabilities of a kind that qualify as basic financialinstmmcnts. Basic tinancial instruments are initially rccogniscd at transaction value and
subsequently measured at the carrying value at their settlement value with the exception of banksloans which are subsequently measured at amortised cost using the effective interest method.
3.12 Pensions
Contributions to defined contribution plans are recognised as an expense in the period in which therelated service is provided. Prepaid contributions are recognised as an asset to the extent that the
prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled vvhogy within 12 months of the cnd of the
rcporting date in which thc cmployecsrendcr thc rclatcd service, the liability is measured on adiscounted present value basis. The unwinding of the discount is recognised as a tmancc cost in
profit or loss in thc period in which it arises.
3.13 Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownershipremain with the lessor are charged agamst profits on a straight line basis over the period of the
lease.
4 Limited by guarantee
The company is limited by guarantee and does not have a share capital. The liability of the
members is limited in the event of the company being wound up to such amount as may be requirednot exceeding one pound.
16
GOVERNORS FOR SCHOOLSNOTES TO THE ACCOUNTS (Continued)
5 Donations
Attwood Education Foundation
Lindsay Dibden
City Of London
KPMG
Arbor Education
Lloyds Bank
Bank Of England
80:20 Charitable Tmst
Allen & Oveiy
lan Armitage
Tenzing
MyDonate
2017/2018
10,000
10,000
7,000
7,500
10,000
4,000
864,833
5,000
61
35,000
10
953,404
2016/2017
19,000
1, 100,000
5,000
1,124,000
6 Investment Income
2017/20188
2016/2017
Bank Interest 261
261
166
166
7 Other Income
2017/2018 2016/2017
Sale of Fixed Assets 600
600
GOVERNORS FOR SCHOOLSNOTES TO THE ACCOUNTS (Continued)
8 Charitable Activities
MarketingConference & ExhibitionWebsite & Databasee-Leaniing
Support CostsSalaries & ExpensesAdministration
Occupancy CostsDepreciationOffice EquipmentLegal & ProfessionalTender Project
Governance CostsAuditors' Remuneration - Audit Fee
2017/2018
93,6564,723
43,29626,239
167,914
582,04835.05375, 103
9,754841
1,9060
704,705
4,6204,620
2016/2017
22,562837
17,21827,47068,087
432, 11075,57288,6166,6041,0081,858
13,952619,720
4,5004,500
9 Remuneration
The Board Chairman & Directors
The Chairmmi & Directors did not receive any rxnnuneration for their sctviccs. Expcnscsamounting to 81,406 werc paid during thc year to onc trustcc, thcsc cxpcnscs related to travel andsubsistence.
9.1 Employees
9.2 Analysis of Eniployees
Average NumberOf Employees
2017/2018
Average NumberOf Employees
2016/2017
Category of EmploymentChief Executive
Administration
Business Development
I
2
18
21
1
2
ll14
GOVERNORS FOR SCHOOLSNOTES TO THE ACCOUNTS (Continued)
9.3 Analysis of Staff Costs
Total staff costs for the year were
Salaries
SalariesEmployer's PensionEmployer's NIC
Total2017/2018
504, 1499,029
47,741
560,919
Total2016/2017
376,407650
35,767412,824
The amount recognised in the Statement of Financial Activities as an expense in relation to definedContribution pension plans was f9,029.
The number of employees whose emoluments (salaries, wages and benefits in kind) fell within thefollowing band:
j:60,000 - f69,999870,000 - f79,999During the year pension
10 Fixed AssetsAnalysis of Fixed Assets
2017/2018 2016/20178'000 f.'000
1
1
contributions of f5,245 were paid for this member of staff.
Computers& Furniture
Total2017/2018
Total2016/2017
Costas at I April 2017Purchased m yearDisposal of equipment
Cost as at 31"March 2018
Depreciationas at 1 Apri)2017Charge for the yearDepreciation on Disposalas at 31st March 2018
94,04919,958
(58,433)55,574
79,5699,754
(58,433)30,890
94.04919,958
(58,433)55,574
79,5699,754
(58,433)30,890
93,5048,322
~77.77794,049
80,7426,604
(7,777)79,569
Net Book Valueas at 1 April 20 I 7as at 31st March 2018
14,48024,684
14,480 12,76224.684 14 488
GOVERNORS FOR SCHOOLSNOTES TO THE ACCOUNTS (Continued)
11 Assets
Debtors & Prepayments
Sundiy DebtorsPrepayments
Total2017/2018
464, 83315,380
480,213
Total2016/2017
20,7348,095
28,829
12 Liabilities
Creditors falling due within one year Total2017/2018
Total2016/2017
f
CreditorsAccrual s
24,8184,920
29,738
31,5597,861
39,420
13 Restricted Funds
City of London
Arbor Education
Allen & Overy
KPMG LLP
80:20 Charitable Tnist
Lloyds Bank
BalanceI/4/2017
f19.000
Incoming Expenditure,Gains, Losses
dr Transfer
12,463
Total2017/2018
6.537
5,000
6,820
5,000
7.000
10,000
13,820
0 64.833
10,000
72, 123 (7,290)
10,000
0 7.500 3,927 3,573
30,820 94,333 112,333 12,820
Included in the expenditure, gains, losses and transfers dunng the year is f 18,733 transferred to unrestrictedfunds. The transfer of restricted funds covers the fixed assets purchased fiom thc Developminit grant andhas transferred to the fixed asset fund on the Statcmcnt of Financial Position.
Restriction
City of LondonRestricted donation to be spent on the agreed 'Driving employability outcomes through schools' project.
Arbor EducationRestricted donation to be spent on the Performance Data e-learning module.
20
GOVERNORS FOR SCHOOLSNOTES TO THE ACCOUNTS (Continued)
Allen & OveryAllen & Overy funding was provided to support the developinent of the Driving School Improvement e-learning module for governors.
KPMGRestricted donation to support focussed regional recruitment initiatives based in KPMG's offices acrossEngland and to support developinent of the Fmance e-learning module for governors.
80:20 Charitable TrustRestricted donation to be spent on development costs such as the rebrand and new Governors for Schoolswebsite. Thc restricted funds were in deficit at the year end as thc Charity has incurted expensesoutstanding to be reimbursed by the grant provider.
Lloyds BankRestricted donation to be spent on training and support for Gov)n nors.
14 Analysis of Net Assets Between Funds
Tangible Fixed AssetsCunent AssetsLiabilities
UnrestrictedFunds
24,684944,046(29,738)938,992
Restricted
12,820
12,820
Total2017/2018
24,684956,866~29,738)951,812
15 Related Party Transactions
During the year the charity received f864,833 from the 80:20 Charitable Trust which is exchisively funded
by the Armitage family. Mr lan Armitage was the Chair and isa Trustee of Governors for Schools. At the
year end, there was an amount of f464, 833 due to be received from the 80;20 Charitable Trust.
lan Atmitagc is also a Director of The Key Support Services Limited who invoiced the charity for servicesamounting to f72,572. As at tbe year cnd, thc charity owed an amount of 819,440 to the company.
No further transactions with related parties were undertaken such as are rctluircd to bc disclosed.
21