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2021-08-31-accounts

Registered number: 02792166 Charity number: 1018973

BIRKDALE SCHOOL

(A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

BIRKDALE SCHOOL

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its Governors and advisers 1 - 2
Governors' Report (including Directors' Report and Strategic Report) 3 - 10
Independent auditor's report on the financial statements 11 - 14
Statement of financial activities 15
Balance sheet 16 - 17
Statement of cash flows 18
Notes to the financial statements 19 - 42

BIRKDALE SCHOOL

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

Governors Mr P R Houghton,Chairman
Mr N A Birchenall
Mr E B S Bowles(appointed 20 January2021)
Professor J F Dawson
Mr M O Dennis
Mr G R Dunn(resigned 19 May2021)
Mrs E A Hetherington
Mr J E Oliver(resigned 26 October 2020)
Mrs A M Rees
Dr R C Richardson
Mrs S C Turner
Mr S Ushewokunze(appointed 20 January2021)
Mrs K M Walker
Company registered
number
02792166
Charity registered number
1018973
Registered office
4 Oakholme Road
Sheffield
S10 3DH
Secretary and Bursar
Mr D H Taylor
Other Senior Staff Members Mr P C H Harris, Head Master
Mr C J Burch, Head of the Preparatory School
Independent Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
HSBC Bank Plc
Unit 4
Europa Court
Sheffield Business Park
Sheffield
S9 1XE

Page 1

BIRKDALE SCHOOL

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Solicitors

Wake Smith LLP No. 1 Velocity 2 Tenter Street Sheffield S1 4BY

Page 2

BIRKDALE SCHOOL

(A company limited by guarantee)

GOVERNORS' REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

The Governors present their annual report together with the audited financial statements of the charity for the year 1 September 2020 to 31 August 2021. The annual report serves the purposes of both a trustees' report under charity law, and a directors' report and strategic report under company law. The Governors have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (FRS102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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 published in October 2019.

Structure, governance and management

a. Constitution

The School dates back to 1904. It became a charitable trust in 1965 and was incorporated as a charitable company under the Companies Act in 1993. The liability of its members is limited to £1 each by guarantee. Its Memorandum and Articles of Association govern the School, as last amended on 16 May 2016.

b. Governing Body

The Board of Governors is the governing body of the School. It is self-appointing and a Governor may serve for any term but subject to periodic review of their individual relevant skills, capabilities, active contribution and commitment to the objects of the School. The minimum number of Governors is 10 but in the event that the number falls below 10, the remaining Governors are empowered to continue to act as such for a period of not more than six months following the date when the number fell below ten and provided that there are at least five Governors. No Governor may receive any remuneration from the School but they may be paid all travelling, hotel and other expenses properly incurred by them in connection with the discharge of their duties. Governors who have children attending the School are charged full fees less any standard fee reduction prevailing at the time for which they are eligible, but with the exception of reduction by way of a bursary.

c. Organisational structure and decision-making policies

The Governors meet as a Board five times a year to determine the general policy of the School and to review its overall management and control, for which they are legally responsible. The Board has five supporting committees: Finance & Development, Academic Excellence, Rounded Education, Christian School and Senior Salaries. Each committee comprises a number of serving Governors and each reports to the Board. The Finance & Development Committee is chaired by Mrs S C Turner, the Academic Excellence Committee by Mrs K M Walker, the Rounded Education Committee by Professor J F Dawson, and the Christian School and Senior Salaries Committees by Mr P R Houghton. In addition to the committees, the Board creates ad hoc working groups from time to time to address particular tasks or projects.

The School comprises the Senior School and the Prep School. The day to day running of the whole School is delegated to the Head Master supported by the Head of the Prep School and the Bursar. The Senior School has a Deputy Head Master (responsible for all pastoral matters) and a Deputy Head (Academic), who report to the Head Master. The Preparatory School has a Deputy Head, a Deputy Head (Academic) and a Head of the Pre Prep Department, who report to the Head of the Preparatory School. The Head Master, the Head of the Prep School and the Bursar attend all meetings of the Board and of its Committees, with the exception of the Senior Salaries Committee.

Page 3

BIRKDALE SCHOOL

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

d. Recruitment and training of Governors

As and when necessary the Board of Governors, assisted by the Head Master and the Head of the Prep School, seeks out interested persons to serve on the Board who are committed to the objects of the School and who have the appropriate qualities and skills. New Governors are inducted by the Chairman and the Head Master into the workings of the School, including its Memorandum and Articles of Association. Governors are encouraged to undertake any relevant and necessary training, e.g. safeguarding, e-safety and finance, which may be provided in-house or by competent external bodies, such as the Association of Governing Bodies of Independent Schools.

e. Pay policy for senior staff

The Head Master, the Head of the Prep School and the Bursar are paid with reference to the maintained sector’s Leadership Group Pay Spine. Upon appointment of these staff, reference is made to the maintained sector’s school unit scores and groups, and the relationship between these staff’s salaries. Consideration is also given to experience and skills, and prevailing market rates. After appointment the remuneration is reviewed annually, taking into account performance. The judgement of performance is under-pinned by setting of objectives each year and review of achievement of the objectives at the end of the year. Review of remuneration for these senior staff is carried out by the Senior Salaries Committee.

Objectives, aims and principal activities

a. Principal Activity

The School’s principal activity is to be a family day school for children aged 4 to 18. Historically, this has been only for boys, but with a co educational sixth form. However, the School is progressively becoming fully co educational, with girls admitted into reception and years 1-3 from September 2020.

Pupil numbers were close to those forecast, with 552 in the Senior School and 221 in the Prep School; 773 in total (2020: 790).

b. Objectives for the Year

The School’s vision has three key strands:

The Committees of the Board responsible for these strands meet regularly to review performance and to develop strategies for improvement.

c. Public Benefit Aim and Intended Effect

The public benefit aim of the School is to develop the full potential of its pupils within a Christian environment. In furtherance of this aim, the Governors confirm that they have complied with the requirements of s.4 of the Charities Act 2011.

Page 4

BIRKDALE SCHOOL

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Objectives, aims and principal activities (continued)

d. Grant-making and Public Benefit

The School continues to offer a wide range of fee reductions. These comprise scholarships, bursaries, clergy discount, sibling discount and staff discount, which all widen access to the School. The bursaries are means tested and are up to 100%. The School actively and widely advertises the availability of its scholarships and bursaries. During the year, the total fee reductions were £1,319,910 (2020: £1,246,434), with means tested bursaries amounting to £868,388 (2020: £815,566). As reported in the annual census to the Independent Schools Council, 83 pupils were given a bursary with the average level of support being 76%.

Every year the School community (pupils, parents and staff) raises funds for one or more chosen charitable organisations or activities, in the UK or overseas, through a variety of events and activities. As in the prior year, national lockdowns hampered the fund-raising efforts. £5,455 was raised for the Peace Garden School and other charitable activities in Nepal, and a total of £9,586 was raised for UK charities. A UK registered charity, RNV Nepal, has now been founded. This charity is wholly separate from the School and has its own board of trustees, some of whom are Nepalese.

The School’s aid work in Nepal started in 2000 with raising funds to support the Peace Garden School in Khokana, Kathmandu Valley. In the year ended 31 August 2001 the School raised over £16,500 and with these funds it completely rebuilt this 300 pupil school on land owned by the Peace Garden School. Since then the School has run an annual trip to Nepal and each trip involves pupils teaching in the Peace Garden School and doing other support work, either in this school or in the area. However, because of the pandemic, this trip has not been able to take place for three years, 2020 to 2022; it is hoped that the annual visit will be able to resume in 2023.

The funds that have been raised have also provided financial and medical support to an orphanage and other charitable operations in the area, and have helped to build a church and health centre in the 500 family leper colony near to the village of Khokana.

The School makes its sports hall available to both adult and junior groups in the evenings and at weekends throughout the year. The School also makes its assembly and other general facilities available to the public for a wide range of uses, including orchestra practices and church meetings. The charge made for use is always modest and in some cases free.

The School has a 125 year lease from Sheffield City Council on its sports fields at Castle Dyke. An agreed condition of the lease is to make the fields available to external users. Since acquiring the lease, the School has carried out significant improvements to the facilities, which are enjoyed by all users. Current external users include junior and senior football and cricket clubs, as well as one model aeroplane flying club. The pitch hire charges are modest and the model aeroplane flying club pays no rent, and additionally has vehicle access onto the fields for disabled members.

The rent received from all lettings is ploughed back into the School’s facilities, for the benefit of all users, and during the year amounted to £47,950 (2020: £45,764).

A well developed Community Action programme allows Sixth Form students to engage with local primary schools, residential homes and other community institutions.

Page 5

BIRKDALE SCHOOL

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Objectives, aims and principal activities (continued)

The School has developed a partnership with a local maintained sector primary school in a disadvantaged area of Sheffield, which sees around 20 Sixth Form students spending time in the school every Wednesday afternoon. The Head Master is a member of the board of the multi academy trust that oversees the primary school in question.

The School has a partnership with the Confucius Institute in Sheffield that allows students of all ages to participate in Mandarin classes as well as a range of cultural events.

The School hosts the Sheffield Historical Association that provides talks and events of historical interest to all members of the Sheffield community.

An increasingly large percentage of students engage with the Duke of Edinburgh’s Award scheme at all levels and the volunteering aspect of this makes a significant contribution to the local community.

Each year the School’s bands provide free performances at charity functions and at a local farm trust with a particular interest in the education of socially and educationally disadvantaged children. The School also runs an orchestral day for local maintained primary schools.

The School trains and inducts teachers at no cost to the State and provides teacher training placements for a number of PGCE students each year, though because of the pandemic this did not happen in 2021.

Finally, the Governors make the point that the School, in educating 773 pupils outside the maintained sector, made a significant saving to the public purse. According to Government data, the Dedicated Schools Grant for secondary schools in Sheffield for 2020/2021 was £5,456 per pupil. On this figure, the School saved the Exchequer £4.22 million.

e. Volunteers

The Friends of Birkdale School (FOBS) continue to provide support to the School through fund raising events. Again because of the pandemic, there was little activity during the year, and the needs of the School and the grants made by FOBS were much reduced. Grants sought and made during the year were a modest £629 as opposed to a prior year figure of £5,046. Nevertheless, the Governors take the opportunity of this report to record their appreciation of the on going work of FOBS and its valued grants to the School.

f. Objects

The objects of the School are specified in the Memorandum of Association. The principal object is to educate young persons of school age with the specific aim of maintaining the School's evangelical tradition of Christian education.

Strategic report

Achievements and performance

a. Key financial performance indicators

The key financial performance indicators are pupil numbers and the level of the School’s net cash generated from operating activities. Both are compared to historical and budgeted levels, and forward projections are reviewed by Governors on a termly basis.

Page 6

BIRKDALE SCHOOL

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

Strategic report (continued)

Achievements and performance (continued)

b. Operational performance of the School

The Governors are pleased with the School’s performance, in particular given the challenges of the Covid-19 pandemic.

On the academic front, and with rigorous preparation for another year of no public examinations, the A Level and GCSE results were received with much satisfaction by the Board’s Academic Excellence Committee. These were as follows:

The Board’s Rounded Education and Christian School Committees were also pleased with performance in the year, albeit the periods of online education restricted opportunities for broader pupil engagement and development. Both committees are continuing to develop both qualitative and quantitative measures of performance.

c. Development of the School

Additions to the tangible fixed assets of the School during the year amounted to £106,462 (2020: £741,440). The bulk of these comprised IT enhancements, both hardware and software.

Financial review

a. Results for the year

There was a small surplus for the year of £9,883 (2020: £501,768). The net cash inflow from operating activities for the year was £739,738 (2020: £458,618) and cash in hand was £2,166,979 (2020: £1,704,294).

At 31 August 2021 funds totalled £11,535,096 (2020: £11,525,213), made up of unrestricted funds of £1,296,533 (2020: £1,163,800), designated funds of £10,177,513 (2020: £10,300,254) and restricted funds of £61,050 (2020: £61,159). These include fixed assets of £10,800,961 (2020: £11,097,150).

The surplus would have been greater had it not been for two decisions. The first was to give all staff a Christmas bonus of 2.5% in recognition of all that they had suffered and indeed achieved through the course of the pandemic and all that they were continuing to face and overcome. This bonus amounted to some £160,000. The second was to give parents a retrospective fee rebate for the period of the third lockdown in recognition of the lesser costs of the School during this period and also the reality of remote teaching and learning, whilst good, being not as good as face-to-face education in the classroom. This rebate amounted to £153,716.

Page 7

BIRKDALE SCHOOL

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

b. Reserves policy

It remains the Governors' policy to invest surplus funds for the furtherance of the School’s objects. From its annual budgets, termly management accounts and, most particularly, a rolling long term cash flow projection, the Governors ensure that the School is able to meet its ongoing commitments.

The Governors consider that the School should hold sufficient free reserves to cover both unexpected events and to prepare for planned future development. With regard to the former, the Governors consider that the School requires a buffer against an unforeseen fall in pupil numbers, quantified at around 40 or some 5% of pupils. It has therefore, historically, been considered that an appropriate minimum threshold of free reserves was approximately 5% of total income, namely some £435,000. For future development of the School buildings, which is now actively being pursued, free reserves in excess of £1 million will be required. At the year end the School had free reserves of £1,296,533 and the Governors consider that this level was appropriate and should continue to build in advance of a forthcoming capital development programme.

c. Fixed asset revaluation

The Governors have considered the merit of adopting a policy of revaluing freehold land and buildings. Because of the requirement to have an independent valuation on a regular basis and the burdensome cost of such valuations, it was decided not to adopt a revaluation policy. However, the difference between the actual value of the land and buildings and the book value of the same continues to be recognised. From a fairly recent valuation of the Senior School and a prior valuation of some of the School’s properties for the purpose of the commercial mortgage, it is clear that the current open market value of the School’s land and buildings is at least the current book value.

d. Going concern

The Governors have prepared detailed forecasts of income and expenditure and cash flow until at least 31 August 2023 and have subjected these forecasts to reasonable sensitivity analysis, which shows that the charity has sufficient reserves to be able to continue in operation throughout this period. The Governors will continue to monitor the impact on income and take appropriate action as necessary in order to ensure that the charity can continue in operation for the foreseeable future. Therefore, the Governors are satisfied that it is appropriate to prepare these financial statements on the going concern basis.

e. Risk management

The School has a corporate Risk Register which is periodically reviewed. The areas of risk to the School that have been identified are: Strategic, Law & Regulation, Governance & Management, External Factors, Operational, Human Resources, Environmental, Technological, Academic and Financial. The risks are scored on likelihood and impact. For all risks mitigating control measures are identified, as well as any necessary further action.

The School has successfully weathered three national coronavirus lockdowns since March 2020 and the latest pupil number projection for the future is healthy. However, the escalating costs of energy, broader inflationary pressures and the wider impact and consequences of the war in Ukraine are the greatest risk to the School in the short and medium term. The Governors will continue to monitor the situation carefully and take whatever protective action is necessary to safeguard the School.

Page 8

BIRKDALE SCHOOL

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

Plans for the future

The Board is delighted with the School’s progressive transition to becoming fully co educational. At the date of this report, there are 28 girls in the Prep School, and this part of the School feels very much like a family environment for both girls and boys.

The principal focus for 2021-22 and beyond will be the development of facilities in the Senior School to ensure that Birkdale can deliver the best possible education across its three areas of focus: academic excellence, rounded education and a Christian school environment.

Information on fundraising practices

The School does not actively fundraise for itself. Should the School at some point in the future undertake a specific fundraising campaign or start to generate more income through fundraising, the Governors will look to signing up to a voluntary fundraising code.

Statement of Governors' responsibilities

The Governors (who are also the directors of the charity for the purposes of company law) are responsible for preparing the Governors' report including the Strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year. Under company law, the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping adequate accounting records that are disclose with reasonable accuracy at any time the financial position of the charitable company and 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.

Disclosure of information to auditor

In so far as the Governors are aware:

Page 9

BIRKDALE SCHOOL IA tompany limited by guarantèe) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST2021 Auditor The auditor, 8HP LLP. has indicated their willingness to continue in office. The Governors will propose a motion reappointin8 the auditor at a meeting of the Governors. roved by order of the members of the board of Govemors and signed on their behalf by.. Davld H Taylor Icofflpany 5ecretary} Date.. Page 10

(A company limited by guarantee)

BIRKDALE SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRKDALE SCHOOL

Opinion

We have audited the financial statements of Birkdale School (the 'charitable company') for the year ended 31 August 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Governors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report.

Page 11

(A company limited by guarantee)

BIRKDALE SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRKDALE SCHOOL (CONTINUED)

Other information

The other information comprises the information included in the Governors' Report other than the financial statements and our auditor's report thereon. The Governors are responsible for the other information contained within the Governors' Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 12

(A company limited by guarantee)

BIRKDALE SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRKDALE SCHOOL (CONTINUED)

Responsibilities of Governors

As explained more fully in the Governors' responsibilities statement, the Governors (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

Page 13

BIRKDALE SCHOOL

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIRKDALE SCHOOL (CONTINUED)

To address the risks of fraud through management bias and override controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Marshall (Senior statutory auditor) for and on behalf of

BHP LLP Statutory Auditor 2 Rutland Park Sheffield S10 2PD

Date: 16 May 2022

Page 14

BIRKDALE SCHOOL

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income
8
Total income
Expenditure on:
Raising funds
9
Charitable activities
10
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
226
8,455,745
115,567
2,560
142,679
8,716,777
77,841
8,628,944
8,706,785
9,992
11,464,054
9,992
11,474,046		 Restricted
funds
2021
£
629
-
-
-
-
629
-
738
738
(109)
61,159
(109)
61,050		 Total
funds
2021
£
855
8,455,745
115,567
2,560
142,679
8,717,406
77,841
8,629,682
8,707,523
9,883
11,525,213
9,883
11,535,096		 Total
funds
2020
£
5,451
8,397,701
113,842
10,943
627,333
9,155,270
81,124
8,572,378
8,653,502
501,768
11,023,445
501,768
11,525,213

All income and expenditure derives from continuing activities.

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

Page 15

BIRKDALE SCHOOL

(A company limited by guarantee)

REGISTERED NUMBER: 02792166

BALANCE SHEET

AS AT 31 AUGUST 2021

Note
Fixed assets
Tangible assets
16
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
19
Total net assets
Charity funds
Restricted funds
21
Unrestricted funds
Designated funds (including revaluation reserve:
2021 - £735,515 (2020 - £750,044))
21
General funds
21
Unrestricted funds
21
Total funds		 464,192
2,166,979
2,631,171
(1,322,368)
10,177,513
1,296,533		 2021
£
10,800,961
10,800,961
1,308,803
12,109,764
(574,668)
11,535,096
61,050
11,474,046
11,535,096		 772,396
1,704,294
2,476,690
(1,307,966)
10,300,254
1,163,800		 As restated
2020
£
11,097,150
11,097,150
1,168,724
12,265,874
(740,661)
11,525,213
61,159
11,464,054
11,525,213

Page 16

BIRKDALE SCHOOL IA company limited by guarantee) REGISTERED NUMBER: 02792166 BALANCE SHEET ICONTINUEDI ASA T31 AUGU5T2021 The Governors acknowledge their responsibilities for complying with the ￿9¥ireMentS of the Act with respect to accounting records and preparation of financial 5taternents. The financial statements were approved and authorised lor ts55ue by the Govemors and signed on their behalf by.. Mr P R Houghton Chairman Date.. The notes gn pages 19 to 42 ts)rm part ofthese financtal statements. Page 17

BIRKDALE SCHOOL

(A company limited by guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2021

Note
Cash flows from operating activities
Net cash provided by operating activities
24
Cash flows from investing activities
Bank interest
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
25		 2021
£
739,738
2,560
297
(106,462)
(103,605)
(173,448)
(173,448)
462,685
1,704,294
2,166,979		 2020
£
458,618
10,943
284
(741,440)
(730,213)
(73,246)
(73,246)
(344,841)
2,049,135
1,704,294

Page 18

(A company limited by guarantee)

BIRKDALE SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

1. General information

The charity is a company limited by guarantee in England and Wales. The members of the company are the governors named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements.

2. Accounting policies

2.1 Basis of preparation of financial statements

The charity meets the definition of a public benefit entity under FRS 102. The financial statements 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) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared under the historical cost convention, unless otherwise stated in the relevant accounting policy. The financial statements are presented in sterling which is the functional currency of the charity, and rounded to the nearest £.

2.2 Going concern

The Governors have considered the impact of COVID-19 on the charity’s activities, workforce and supply chain, and the potential wider economic challenges which may affect the ability of some parents to fund their children's independent school education. Whilst it is not considered practical to assess accurately the duration and extent of the ongoing COVID-19 disruption or the extent of future economic challenges, the Governors are confident that they have in place plans to deal with the financial losses and cash deficits that may arise. Although there is an inherent level of uncertainty surrounding these matters, the Governors have prepared detailed forecasts of income and expenditure and cash flow until at least 31 August 2021 and subjected these forecasts to reasonable sensitivity analysis which shows that the charity has sufficient reserves to be able to continue in operation throughout this period. The Governors will continue to monitor the impact on income and take appropriate action as necessary in order to ensure that the charity can continue in operation for the foreseeable future. Therefore the Governors are satisfied that it is appropriate to prepare these financial statements on the going concern basis.

Page 19

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Fee income consists of charges billed, on a termly basis, less bursaries, scholarships and other discounts. Fees are recognised in line with the term to which they relate.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are any conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from trading activities includes income from extra tuition fees, the school shop and rent to raise funds for the charity. Income is received in exchange for supplying goods or services in order to raise funds and is recognised when entitlement has occurred.

Interest income is recognised as the charity's right to receive payment is established.

Other income includes grant income received from the Government to cover the salaries of furloughed employees through the Coronavirus Job Retention Scheme. This is included on a receivable basis.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity.

Costs of raising funds are costs incurred directly in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

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 institution with whom the funds are deposited.

Page 20

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £2,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Amounts less than this may be capitalised if part of a specific project.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities incorporating income and expenditure account.

Tangible fixed assets are carried at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their residual value, over their estimated useful lives.

Depreciation is provided on the following bases:

Freehold buildings - 50 years straight line
Long-term leasehold buildings - 50 years straight line
Motor vehicles - 3 - 5 years straight line
Fixtures and fittings - 10 - 25 years straight line
Equipment - 5 years straight line
ICT equipment - 5 years straight line

As permitted under FRS102, the charity has elected not to adopt a policy of revaluation of tangible fixed assets. The charity will retain the book value of land and buildings, previously revalued at 31 March 1993 and will not update that valuation.

An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets, is transferred annually from the revaluation reserve to the income and expenditure reserve.

2.7 Refurbishment of property

In line with relevant accounting standards, where the governors identify that a trigger indicating impairment may have occurred, the carrying value of each property in the school's estate affected by the identified trigger is assessed for impairment by comparison with the greater of open market value and value in use. Where there are inherent difficulties in determining appropriate assumptions for establishing value in use in excess of open market value, open market value is used. Consequently, refurbishment costs on a property which would cause the net book value of that property to exceed open market value are taken directly to the statement of financial activities and categorised as investment in the property estate.

Page 21

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.8 Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.12 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 22

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.13 Employee benefits

Termination benefits

Termination benefits are employee benefits payable as a result of the charity's decision to terminate an employee's employment before the normal retirement date.

Defined contribution pension scheme

The charity contributes to a defined contribution pension scheme for the benefit of the salaried non-teaching employees. The pension costs charged against net incoming resources are the contributions payable to the scheme in respect of the accounting period in accordance with FRS102.

Defined benefit pension scheme

The charity participates in the Teachers' Pension Scheme (England and Wales) ("the TPS"), for its teaching staff. This is a multi-employer defined benefits pension scheme and it is not possible or appropriate to consistently identify the liabilities of the TPS which are attributable to the charity. As required post FRS102, the charity accounts for this scheme as if it were a defined contribution scheme and therefore the pension costs charged in the statement of financial activities are the contributions payable to the scheme in respect of the accounting period.

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Governors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 23

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

Critical areas of judgment:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually.

4. Income from donations and legacies

Donations
Total 2020		 Unrestricted
funds
2021
£
226
405		 Restricted
funds
2021
£
629
5,046		 Total
funds
2021
£
855
5,451		 Total
funds
2020
£
5,451

5. Income from charitable activities

Fee income
Discounts, bursaries & scholarships
Other ancillary fees
Total 2021
Total 2020		 Unrestricted
funds
2021
£
9,668,957
(1,319,910)
106,698
8,455,745
8,397,701		 Total
funds
2021
£
9,668,957
(1,319,910)
106,698
8,455,745
8,397,701		 Total
funds
2020
£
9,298,652
(1,246,434)
345,483
8,397,701

Page 24

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

6. Income from other trading activities

Rent received
Sundry income
Breakfast club
After school club
School bus services
Total 2020
7.
Investment income
Interest receivable
Total 2020		 Unrestricted
funds
2021
£
47,950
10,883
7,384
17,386
31,964
115,567
113,842
Unrestricted
funds
2021
£
2,560
10,943		 Total
funds
2021
£
47,950
10,883
7,384
17,386
31,964
115,567
113,842
Total
funds
2021
£
2,560
10,943		 Total
funds
2020
£
45,764
15,176
8,555
20,096
24,251
113,842
Total
funds
2020
£
10,943

Page 25

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

8. Other income

Coronavirus Job Retention Scheme income
Total 2020		 Unrestricted
funds
2021
£
142,679
627,333		 Total
funds
2021
£
142,679
627,333		 Total
funds
2020
£
627,333

9. Expenditure on raising funds

Bus service
Other expenditure
Total 2020		 Unrestricted
funds
2021
£
64,229
13,612
77,841
81,124		 Total
funds
2021
£
64,229
13,612
77,841
81,124		 Total
funds
2020
£
53,435
27,689
81,124

Page 26

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

10. Analysis of expenditure on charitable activities

Summary by fund type

Teaching costs
Welfare costs
Premises
Support costs
Interest
Governance costs
Cost of generating ancillary fees
Total 2020
Summary by expenditure type
Teaching costs
Welfare costs
Premises
Support costs
Interest
Governance costs
Cost of generating ancillary fees
Total 2020		 Unrestricted
funds
2021
£
6,424,396
761,771
678,338
657,159
17,100
11,295
78,885
8,628,944
8,567,441
Staff costs
2021
£
5,852,344
131,253
-
536,924
-
-
8,567
6,529,088
6,263,907		 Restricted
funds
2021
£
738
-
-
-
-
-
-
738
4,937
Other costs
2021
£
572,790
630,518
678,338
120,235
17,100
11,295
70,318
2,100,594
2,308,471		 Total
funds
2021
£
6,425,134
761,771
678,338
657,159
17,100
11,295
78,885
8,629,682
8,572,378
Total
funds
2021
£
6,425,134
761,771
678,338
657,159
17,100
11,295
78,885
8,629,682
8,572,378		 Total
funds
2020
£
6,262,853
751,708
580,568
611,597
23,977
12,522
329,153
8,572,378
Total
funds
2020
£
6,262,853
751,708
580,568
611,597
23,977
12,522
329,153
8,572,378

Page 27

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

11. Analysis of expenditure by activities

Teaching costs
Welfare costs
Premises
Support costs
Interest
Governance costs
Cost of generating ancillary fees
Total 2020		 Direct costs
2021
£
6,425,134
761,771
678,338
-
17,100
-
78,885
7,961,228
7,948,259		 Support costs
2021
£
-
-
-
657,159
-
11,295
-
668,454
624,119		 Total
funds
2021
£
6,425,134
761,771
678,338
657,159
17,100
11,295
78,885
8,629,682
8,572,378		 Total
funds
2020
£
6,262,853
751,708
580,568
611,597
23,977
12,522
329,153
8,572,378

Analysis of support costs

Staff costs
Governance costs
Office costs
Other
Total 2020		 Teaching
costs
2021
£
536,924
-
66,045
54,190
657,159
611,597		 Other costs
2021
£
-
11,295
-
-
11,295
12,522		 Total
funds
2021
£
536,924
11,295
66,045
54,190
668,454
624,119		 Total
funds
2020
£
492,637
12,522
63,401
55,559
624,119

Page 28

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

12. Governance costs

2021 2020
£ £
Auditor's remuneration 11,295 12,522

13. Corporation Tax

The charitable company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

14. Net income/(expenditure)

2021 2020
£ £
This is stated after charging:
Depreciation of tangible fixed assets:
- owned by the charity 402,644 405,051
Auditor's remuneration 11,295 12,522
Operating lease rentals 749,342 748,266
(Profit)/loss on sale of fixed assets (290) 14,844

15. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
5,069,700
518,431
940,957
6,529,088		 2020
£
4,846,116
489,839
927,952
6,263,907

Page 29

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

15. Staff costs (continued)

The average number of persons employed by the charity during the year was as follows:

Teaching staff
Non teaching staff		 2021
No.
99
83
182		 2020
No.
97
71
168

The average headcount expressed as full-time equivalents was:

Teaching staff
Non- teaching staff		 2021
No.
88
47
135		 2020
No.
87
44
131

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2021 2020
No. No.
In the band £60,001 - £70,000 - 3
In the band £70,001 - £80,000 3 1
In the band £80,001 - £90,000 1 -
In the band £110,001 - £120,000 - 1
In the band £130,001 - £140,000 1 -

The total amount of employee benefits received by key management personnel, including employer's pension and employer's national insurance, is £374,966 (2020: £333,594). The school considers its key management personnel to comprise of the two Heads and the bursar, detailed on page 1.

Total termination payments amounted to £24,604 (2020: £46,402).

The governors neither received nor waived any remuneration during the year (2020: £nil).

£nil expenses have been reimbursed in the year, or during the prior year.

Page 30

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

16. Tangible fixed assets

Cost or valuation
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
On disposals
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold
property
£
12,214,798
24,589
(6,819)
12,232,568
3,551,866
211,338
(6,819)
3,756,385
8,476,183
8,662,932		 Long-term
leasehold
property
£
2,578,697
-
-
2,578,697
824,365
51,716
-
876,081
1,702,616
1,754,332		 Fixtures and
fittings
£
1,205,023
3,151
(155,545)
1,052,629
708,095
57,018
(155,545)
609,568
443,061
496,928		 Other fixed
assets
£
1,920,305
78,722
(123,019)
1,876,008
1,737,347
82,572
(123,012)
1,696,907
179,101
182,958		 Total
£
17,918,823
106,462
(285,383)
17,739,902
6,821,673
402,644
(285,376)
6,938,941
10,800,961
11,097,150

The land and buildings were valued at £3,375,000 based on open market values (except for Heeley Hall, which was assessed on the basis of depreciated replacement cost) on 1 April 1993 by Mark Jenkinson & Son, Surveyors and Valuers of Sheffield. Since this date all assets have been included at cost and the 1993 valuation has not been updated in accordance with UK GAAP.

The relevant historical cost information for the land and buildings as at 31 August 2021 is as follows:

At cost
At revaluation, at 1 April 1993		 Land and
buildings
£
14,075,749
735,515
14,811,264

Page 31

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

16. Tangible fixed assets (continued)

If the freehold land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

Cost
Accumulated depreciation		 2021
£
11,084,187
(3,344,148)
7,740,039		 2020
£
11,066,418
(3,153,530)
7,912,888

17. Debtors

Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
239,383
17,444
207,365
464,192		 2020
£
267,314
21,823
483,259
772,396

Page 32

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

18. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 September 2020
Resources deferred during the year
Amounts released from previous periods		 2021
£
48,780
134,752
120,473
218,489
799,874
1,322,368
2021
£
662,745
625,963
(662,745)
625,963		 2020
£
56,235
109,128
118,037
236,581
787,985
1,307,966
2020
£
759,382
662,745
(759,382)
662,745

Deferred income represents fees received in advance.

Page 33

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

19. Creditors: Amounts falling due after more than one year

Bank loans
Included within the above are amounts falling due as follows:
Between one and two years
Bank loans
Between two and five years
Bank loans
Over five years
Bank loans		 2021
£
574,668
2021
£
50,065
158,235
366,368		 2020
£
740,661
2020
£
57,702
182,268
500,691

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Repayable by instalments 2021
£
366,368
366,368		 2020
£
500,691
500,691

There is now one bank loan, which incurs interest at 2.7% and is repayable over 15 years. See note 31 for details of loan security.

20. Prior year adjustments

There has been a presentational restatement of the unrestricted fund balances, to reflect a designated fixed asset fund instead of the previous capital reserve and revaluation reserve. The fund represents the net book value of the fixed assets less the balance on the mortgages on these properties. There is no impact on the net income or net assets position of the school as a result of this adjustment.

Page 34

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

21. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Designated fixed asset fund
General funds
Income & expenditure reserve
Total Unrestricted funds
Restricted funds
Rudston School fund
Gillespie Gap Year
Sanderson Keyboard Prize fund
Friends of Birkdale School
Total of funds		 As restated
Balance at 1
September
2020
£
10,300,254
1,163,800
11,464,054
60,000
750
300
109
61,159
11,525,213		 Income
£
-
8,716,777
8,716,777
-
-
-
629
629
8,717,406		 Expenditure
£
-
(8,706,785)
(8,706,785)
-
-
-
(738)
(738)
(8,707,523)		 Transfers
in/out
£
(122,741)
122,741
-
-
-
-
-
-
-		 Balance at 31
August 2021
£
10,177,513
1,296,533
11,474,046
60,000
750
300
-
61,050
11,535,096

Page 35

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Designated fixed asset fund
General funds
Income & expenditure reserve
Total Unrestricted funds
Restricted funds
Rudston School fund
Gillespie Gap Year
Sanderson Keyboard Prize fund
Friends of Birkdale School
Total of funds		 As restated
Balance at
1 September
2019
£
9,905,743
1,056,652
10,962,395
60,000
750
300
-
61,050
11,023,445		 Income
£
-
9,150,224
9,150,224
-
-
-
5,046
5,046
9,155,270		 Expenditure
£
-
(8,648,565)
(8,648,565)
-
-
-
(4,937)
(4,937)
(8,653,502)		 As restated
Transfers
in/out
£
394,511
(394,511)
-
-
-
-
-
-
-		 As restated
Balance at
31 August
2020
£
10,300,254
1,163,800
11,464,054
60,000
750
300
109
61,159
11,525,213

Page 36

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

21. Statement of funds (continued)

Designated funds

The designated fixed asset fund arises from the transfer of the assets of the former charitable trust to the charitable company upon its incorporation in 1993, less the balance on the mortgages held on these properties.

Transfers

The fund movements represent the movements on the fixed assets and the mortgage during the year from the general income and expenditure reserve to the designated fixed asset fund.

Restricted funds

Rudston School fund. This is to assist children located in Rotherham to have access to attend Birkdale School. At the year end the fund balance is £60,000 (2020: £60,000).

The Gillespie Gap Year Trust Fund provides bursaries for successful applicants for their gap year projects. The fund balances now stand at £750 (2020: £750).

Sanderson Keyboard Prize Fund. This is a music prize fund to be distributed to students. At the year end the fund balance is £300 (2020: £300).

Friends of Birkdale School. This is to organise social events to support Birkdale School and its activities by helping to harness the good will and expertise of present and former parents, Old Birkdalians and other friends of the School.

22. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at 1
September
2020
£
10,300,254
1,163,800
61,159
11,525,213		 Income
£
-
8,716,777
629
8,717,406		 Expenditure
£
-
(8,706,785)
(738)
(8,707,523)		 Transfers
in/out
£
(122,741)
122,741
-
-		 Balance at 31
August 2021
£
10,177,513
1,296,533
61,050
11,535,096

Page 37

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

22. Summary of funds (continued)

Summary of funds - prior year

Designated funds
General funds
Restricted funds		 Balance at
1 September
2019
£
9,905,743
1,056,652
61,050
11,023,445		 Income
£
-
9,150,224
5,046
9,155,270		 Expenditure
£
-
(8,648,565)
(4,937)
(8,653,502)		 As restated
Transfers
in/out
£
394,511
(394,511)
-
-		 Balance at
31 August
2020
£
10,300,254
1,163,800
61,159
11,525,213

23. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2021
£
10,800,961
2,570,121
(1,322,368)
(574,668)
11,474,046		 Restricted
funds
2021
£
-
61,050
-
-
61,050		 Total
funds
2021
£
10,800,961
2,631,171
(1,322,368)
(574,668)
11,535,096

Page 38

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

23. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total
Free reserves
Current assets - unrestricted
Less current liabilities
Add back current liabilities re fixed assets		 Unrestricted
funds
2020
£
11,097,150
2,415,531
(1,307,966)
(740,661)
11,464,054		 Restricted
funds
2020
£
-
61,159
-
-
61,159
2021
£
2,570,121
(1,322,368)
48,780
1,296,533		 Total
funds
2020
£
11,097,150
2,476,690
(1,307,966)
(740,661)
11,525,213
2020
£
2,415,531
(1,307,966)
56,235
1,163,800

24. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Bank interest
(Profit)/loss on the sale of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities		 2021
£
9,883
402,644
(2,560)
(290)
308,204
21,857
739,738		 2020
£
501,768
405,051
(10,943)
14,844
(211,890)
(240,212)
458,618

Page 39

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

25. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2021
£
2,166,979
2,166,979		 2020
£
1,704,294
1,704,294

26. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
September
2020
£
1,704,294
(56,235)
(740,661)
907,398		 Cash flows
£
462,685
7,455
165,993
636,133		 At 31 August
2021
£
2,166,979
(48,780)
(574,668)
1,543,531

27. Pension commitments

Teachers' Pension Scheme

The charity participates in the Teachers' Pension Scheme (England and Wales) ("the TPS"), for its teaching staff.

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers' Pension Scheme Regulations 2014. Membership is automatic for full-time teachers and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016 and in accordance with the Public Service

Page 40

BIRKDALE SCHOOL

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

27. Pension commitments (continued)

Pensions (Valuations and Employer Cost Cap) Directions 2014 (amended). The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

The TPS valuation for 2012 determined an employer rate of 16.48%, which was payable from September 2015. As a result of the latest valuation based on membership data as at 31 March 2016, TPS employees will pay an increased contribution rate of 23.68% from 1 September 2019 (this includes the administration levy of 0.08%).

The employer’s pension costs paid to TPS in the period amounted to £889,028 (2020: £873,702).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website. The next valuation result is due to be implemented from 1 April 2023.

Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The charity has accounted for its contributions to the scheme as if it were a defined contribution scheme. The charity has set out above the information available on the scheme.

Defined contribution pension scheme

The charity contributes to a defined contribution pension scheme for the benefit of the non-teaching employees. The assets of the scheme are administered by trustees independent of the charitable company. The pension charge for the year includes contributions payable to this scheme of £51,929 (2020: £54,250).

Page 41

(A company limited by guarantee)

BIRKDALE SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

28. Operating lease commitments

At 31 August 2021 the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2021
£
487,516
20,380
25,000
532,896		 2020
£
239,712
7,162
25,250
272,124

29. Related party transactions

Children of three current Governors, Mr N Birchenall, Mr P R Houghton and Mr S Ushewokunze, plus the children of Mr J E Oliver and Mr G R Dunn who resigned during the year, attended the School during the year. Children of Mr G R Dunn and Mr P R Houghton received scholarships and one child received a 3rd child discount. Mr J E Oliver's partner is a member of teaching staff, and their child was in receipt of a staff discount.

Mrs C Harris, Mrs P Burch and Mrs M Oliver, spouses of governors and senior leadership, were employed by the school and their aggregate remuneration was £70,783 (2020: £56,595).

Mr C J Burch and Mr P C H Harris, members of the senior management team, have children who attended the school and were in receipt of a staff discount.

During the prior year the school purchased a property from the Sheffield Diocesan Board of Finance at a cost of £557,399 by way of a sealed bid. The spouse of a governor of the school, Mr I Walker, is Chairman of the Sheffield Diocesan Board of Finance.

30. Indemnity insurance

The charitable company has taken out professional indemnity and Directors' and Officers' Liability insurance.

31. Bank security

The bank loan with HSBC is secured by a debenture with first legal charges over the following properties:

Johnson Memorial Building, 4 Endcliffe Crescent, Sheffield, S10 3ED Birkdale Preparatory School, Clarke House, Clarke Drive, Sheffield, S10 2NS Grayson Building, 3 Endcliffe Crescent and 117 Ashdell Road, Sheffield, S10 3ED Belmayne House, 99 Clarkehouse Road, Sheffield, S10 2LN 9 Endcliffe Crescent, Sheffield, S10 3EB

Page 42