Registered number.. 02792166 Charity number= 1018973 BIRKDALE SCHOOL (A company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
BIRKDALE SCHOOL IA company Ilmlted by guarantee) CONTENTS Page Reference and administrative details of the charity. its Governor5 and advisers Governors, Report (including Director5, Report and Strategic Report) Independent auditor's report on the financial statements 10-13 Statement of financlal actlvltles 14 8alance sheet 15-16 Statement of cash flows 17 Notes to the financial statements 18-41
BIRKDALE SCHOOL IA company Ilmlted by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST2022 Governors Mr P R Houghton, Chairman Mr N A Birchenall Mr E BSBowles Professor J F Dawson Mr M O Dennis Mrs E A Hetherington MrsA M Rees Dr R C Richardson (resigned 6 July 20221 Mrs S C Turner Mr S Ushewokunze Mrs K M Walker Company 81Stered number 02792166 Charity registered number 1018973 Reglstered office 4 Oakholme Road Sheffield SIO 3DH Secretary and Bursar Mr R J Wade (appointed I September 20221 Mr D H Taylor Iresigned 31 August 20221 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 SIO 2PD Bankers HSBC Bank PIC Unit 4 Europa Court Sheffield Business Park Sheffield S9 IXE Solicitors Wake Smith LLP No. I Velocity 2 Tenter Street Sheffield SI 4BY Page I
BIRKDALE SCHOOL IA company Ilmlted by guarantee) GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST2022 The Governors present their annual report together with the audited financial statements of the charity for the year I September 2021 to 31 August 2022. 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 Prattice ISORPI 'Accounting and Reporting by Charities" IFRS1021 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 nd tomply with the charitrfs governing dotument, the Charities Att 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charitie5 preparing their accounts IN accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019. Structure. govemunce ond 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 5elf-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 att as such for a period of not more than six month5 following the date when the number fell below ten and provided that there are at least five Governor5. 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 ny standard fee reduction prevailing at the time for which they are eligible, but with the exception of reduction by way of a bursary. c. Or8anisational structure and decision-making policies The Governors meet as a Board at least 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 cornmittee 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 tirne to tirne to addre55 Particular tasks or project5. The School comprises the Senior School and the Prep School. The day to day running of the whole School is deleEated to the Head supported by the Heèd of the Prep School and the Bursar. The Senior School has a Deputy Head (responsible for all pastoral matters) and a Deputy Head (Academic), who report to the Head. The Preparatory School has a Deputy Head, a Deputy Head (Acadernicl and a Head of the Pre Prep Department, who report to the Head of the Preparatory School. The Head, 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 Comrnittee. Page 2
BIRKDALE SCHOOL IA company Ilmlted by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST2022 Structure. 8overnance and mana8ement Icontinuedl d. Recruitment and training of Governors As and when necessary the 8oard of Governors. assisted by the Head 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, following interview, are deemed to have the appropriate qualities and skills. New Governors are inducted by the Chairman and the Head 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 A55OClètion of Governing Bodies of Independent Sthool%. e. Pay policy for senior staff The Head, the Head of the Prep School and the Bursar are paid with reference to the maintained sectorfs 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 perforrnance 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 tsut by the Senior Salaries Committee. Objettives, tsims andprintipolottivities a. Principal Artivity 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 dmitted into the Prep School from September 2021, and due to be admitted into the first year Senior School from September 2024. Pupil numbers were close to those forecast, with 556 in the Senior School and 232 in the Prep School; 788 in total12021.' 7731. b. Objettivès for the Year The School's vision has three key strands.. First, there is a clear and ambitious focus on academic excellence,. Second, a major emphasis is given to a caring, rounded education for each pupil.. and Third, Birkdale is a Christian School that warmly welcomes pupils of all faiths and none. 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 Intendèd Effett The public benefit airn of the School is to develop the full potential of its pupils Wlthin 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 3
BIRKDALE SCHOOL IA company Ilmlted by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST2022 Objective5. aims and principal activitie5 Icontinuedl d. Grant-makinB 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 acce55 to the School. The bursaries are means tested and are up to 100%. The School actively and widely advertise5 the availability of its scholarships and bursaries. During the year, the total fee reductions were £1,414,264 12021.. £1,319,910), with means tested bursaries amounting to £921,306 12021.. £868,388). As reported in the annual census to the Independent Schools Council. 83 pupils were given a bursary with the verage level of support being 76%. Also during the year the School was pleased to extend 100% bursaries specifically to support 7 Ukranian children who had sought refuge in the UK following the outbreak of war in their home country. Every year the School community (pupils. parents and staff) raises funds for one or more chosen charitable oreanisations or activities, in the UK or overseas, through 3 variety of events and artivities. As in the prior year, national lockdowns hampered the fund-raising effort5. £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'5 aid work in Nepal started in 2000 with raisin8 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. We are looking forward to running thi5 trip again IN March 2023 for the first time since the pandemic. The funds that have been raised have also provided financial and medical support to an orphanage and other charitable operation5 in the area, and have helped to build a church and health centre in the 500 farnily 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 a150 make5 Its assembly and other general facilitie5 available to the public for a wide range of use5, 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 15 to make the fields available to external users. Since acquiring the lease, the School has carried out Sl8nificant 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 vear amounted tts £65,30412021.' £47,950). A well-developed Community Action prograrnme allow5 Sixth Form students to engage with local primary school5, residential homes and other community institutions. The School has developed a partnership with a lotal maintained sector primary school in a disadvantaged area of Sheffield, which 5ee5 around 20 Sixth Form students spending time in the school every Wednesday afternoon. The Head 15 a member of the board of the multi academy trust that oversees the primary school in question. Page 4
BIRKDALE SCHOOL IA company Ilmlted by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST2022 Objective5. aims and principal activitie5 Icontinuedl 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 thi5 rnakes a significant contribution to the local comrnunitv. 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 educationèlly disadvantaged Children. The School also runs an orehestrèl day for local maintained primary schools. The School trains and inducts teachers at no cost to the State and during the year we supported one trainee to complete their PGCE ènd one teacher in the first year of their ECT induction. From September 2022 we are supporting four teachers through their ECT induction two in their first year and two in their second year. Finally, the Governors would like to note that the School, in educating 788 pupils outside the maintained sector. made a significant saving to the national public purse. According to Government data, the Dedicated Schools Grant for secondary schoo15 in Sheffield for 2021/2022 was £5,207 per pupil. On this figure, the School saved the Exchequer £4.08 million. e. Volunteers The Friends of 8irkdale School IFOBSI continue to provide support to the School through fund raising events. Again because of the pandemic, there was little èctivity during the year, and the needs of the School and the Erants made by FOBS were much reduced at £19012021.. £6291. 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 for the School to educate persons of school age with the Specific aim of rnaintaining the School's 'existin8 tradition of Christian education and to continue to provide education based on the evangelical doctrine which emphasises the authority of the Bible in all matters of faith and conduct. Page 5
BIRKDALE SCHOOL IA company Ilmlted by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST2022 Strqteqic report Achievements undperfomiance a. Key financlal performance Indlcators The key financial performance indicators are pupil numbers and the level of the School's net cash generated from operating activities. Both are cornpared to historical and budgeted levels, and forward projections are reviewed by Governors on a termly basis. b. Operatlonal 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 the first year public examination5, the A Level and GCSE results were received with much satisfaction by the Board's Academic Excellence Committee. These were as follows.. Overall pass rates at both A Level & GCSE were lOO% At A Level, the headline grade percentages were.. A: 14%,. A A.. 40%,. A* B.. 70% At GCSE, they were- 9.. 30%,. 9 8.. 48%,. 9 7- 66% The Board's Rounded Education and Christian School Committees continue to be pleased with performance in the year with a post-pandemic return of the School musical and concerts showcasing pupi15' drama and rnusical talent5, and the School being a community where pupils are encouraged to explore the essentials of the Christian faith in an open and tolerant environment. c. Dèvelopment of thè School Additions to the tangible fixed assets of the School during the year amounted to £147,07312021.. £106,462). The bulk of these comprised IT enhancements, both hardware and software. Flnonclol revlew a. Rèsults for the year There was a deficit for the year of £82,18312021= 5urplu5 £9,883). The net cash inflow from operating activities for the vear was £297,63012021.' £739,738) and cash in hand was £2,271,52612021.' £2,166,979). At 31 August 2022 funds totalled £11,452,91312021.. £11,535,096), made up of unrestricted funds of £1,413,74812021.. £1,296,533), designated fund5 of £9,978,11512021.. £10,177,513) and restricted funds of £61,05012021.. £61,050). These include fixed assets of £IO,554,85812021'. £10,800,961). The deficit arose primarily due to increased staff costs, particularly arising from providing sufficient cover while staff were isolating during covid. Page 6
BIRKDALE SCHOOL IA company Ilmlted by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST2022 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 minirnum threshold of free reserves was approximately 5% of total income, namely some £435.000. For future developrnent 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 £1,413,748 and the Governors Consider that this level was appropriate and shtsuld tontinue to build in advance of a forthcoming capital developrnent 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 buildinES is at least the current book value. d. Goin8 concern The Governors are mindful of the current cost of living crisis, which may affect some parents ability to fund their children's independent school education and the ongoing uncertainty arising from high inflation and the significant increases in the cost of energy which increases the operational costs of the school. The Governors have prepared detailed medium term forecasts of income and expenditure and cash flow going beyond the next 2 years 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 expenditure and take ppropriate action as necessary in order to ensure that the charity can continue in operation for the foreseeable future. Therefore the Governor5 are 53tlsfied that it 15 appropriate to prepare these financial statements on the 80ing concern basis. e. Rlsk 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 Governors are rnindful of the current cost of living crisis, including the escalatin8 Costs of energy, which affects the medium-term economic outlook. These are expected to impact both pupil numbers and our parents, ability to pay. The Governors are making plans to be able to support parents, and continue to offer good value in the provision of education to prospective pupils ensuring that the school's finances remain robust. The Governors will continue to monitor the situation carefully and take whatever protective action 15 necessary to safeguard the School. Page 7
BIRKDALE SCHOOL IA company Ilmlted by guarantee) GOVERNORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST2022 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 40 girls12021.'281 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 2022-23 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 sthool environment. Information on fundraising prartices 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 fundraisin& the Governors will look to signing up to a voluntary fundraising code. Statement of governors, re5pon5ibilities The Governors (who are also the trustees and directors of the charity for the purposes of company lawl are responsible for preparing the Governors. report including the Strategic Report and the financial statements in accordance with pplicable law and United Kingdom Atcounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Cornpany law requires the Governor5 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 nd expenditure, for that period. In preparing these financial statements, the Governors are required to.. select suitable accounting policies and then apply them consistently- observe the methods and principles of the Charities SORP 2019 IFRS 1021.. make judgments and accounting estimates that are reasonable and prudent,. state whether applicable UK Accounting Standards IFRS 1021 have been followed. subject to any material departures disclosed and explained in the financial statements,. prepare the financial statements on the going toncern basis unless it is inappropriate to presume that the charity will continue in bu5ine55. The Governor5 are re5pon5ible for keeping adequate accounting records that disc105e, 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 irregularitle5. Disclosure of information to auditor In so far as the Governors are aware.. there is no relevant audit information of which the charitable company's auditor is unaware, and the Governor5 have taken all the Steps that they ought to have taken to make thernselve5 aware of any relevant audit information and to establish that the chafltable company'5 auditor is aware of that infofmation. Page 8
BIRKDALE SCHOOL
(A company limited by guarantee)
GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022
Auditor
The auditor, BHP LLP, has indicated their willingness to continue in office. The Governors will propose a motion reappointing the auditor at a meeting of the Governors.
In approving the Governors' report, we also approve the strategic report included therein, in our capacity as company directors.
Approved by order of the members of the board of Governors and signed on their behalf by:
Paul Houghton (Mar 30, 2023 14:09 GMT +1)
Mr P R Houghton
Date:[Mar 30, 2023]
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BIRKDALE SCHOOL IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF BIRKDALE SCHOOL Opinion We have audited the financial statements of Birkdale School Ithe'charitable company'l for the year ended 31 August 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes. including a 5umrnary of significant accounting policie5. The financial reporting framework that ha5 been applied in their preparation 15 applicable law and United Kingdom Accounting Standard5, 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 finantial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII 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 th8 financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical respon5ibilitie5 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. Conclusion5 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 th8 charitable company's ability to continue a5 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 10
BIRKDALE SCHOOL IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF BIRKDALE SCHOOL ICONTINUEDI 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 staternent5 doe5 not Cover the other inforrnation 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 5Uth material incon5iSteneies or apparent material mi55tatement5, we are required to determine whether thi5 give5 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 nothinE to report in thi5 regard. Opinions on other matter5 prescribed by the Companies Art 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the governors, report lincorporating the strategic report and the directors, report) for the financial year for which the financial staternent5 are prepared is consistent with the financial statement5,' and. the strategic report and the directors, report have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the light of our knowled@e and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified rnaterial mi55tatements in the strategic report and the director5, report. We have nothing to report in respect of the following matters in relation to which Companie5 Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or return5 adequate for our audit have not been received from branches not visited by u5,. or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of directors, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Page 11
BIRKDALE SCHOOL IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF BIRKDALE SCHOOL ICONTINUEDI Responsibilities of Governor5 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 lawl 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 35 the governor5 determine 15 necessary to enable the preparation of financial staternents 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, disc105ing, a5 applicable, matters related to going concern and using the going concern basi5 of accounting unless the governor5 either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Audltor's responslbllltles for the audlt of the flnanclal statements Our objectives are to obtain reasonable a55urante about whether the financial statements a5 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 IUKI 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 user5 taken on the basi5 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 extent to which our protedure5 are tapable of detecting irregularities, including fraud 15 detailed below.. the engagement partner ensured that the engagement team collectively had the appropriate competence. capabilities and skills to identify or rectsgnise non-compliance with applicable laws and regulations,. we identified the laws and regulatitsns applicable to the charitable cornpany through discussions with management and governor5, and from our knowledge and experiences of the independent schools, sector; we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company. including the Charities Act 2011. Companies Act 2006, data protection, safeguarding, ernployment, health and safety legislation and Independent Schools Inspectorate guidance,. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.. identified laws and regulation5 were cornmunicated within the audit team regularly and the teèm remained alert to instances of non-corrpliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud rnight occur, by- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliante with13ws and regulation5. Page 12
BIRKDALE SCHOOL IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF BIRKDALE SCHOOL ICONTINUEDI To address the risks of fraud through management bias and override controls, we.. performed analytical procedures to identify any unusual or unexpected relationships.. tested journal entrie5 to identify unusual tran5actions,' asse55ed whether judgernents and assumption5 rnade IN determining the accountin8 e5timate5 set out in note 3 were indicative of potential bias,. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and Non-compliance with law5 and re8ulation5, we designed procedures which included, but were not limited to- agreeing financial statement disclosures to underlying supporting documentatitsn,. reading the minutes of meetings of those charged with governance., enquiring of management as to actual and potential litigation and claims. 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 rnisstatement in the financial statements or non-compliance with regulation. This risk iNcrease5 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 irregulaiitie5 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: www.frc.or .uk auditorsres onsibilities. 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. 6HPk Jane Mcif5hall (Mar 3Q. 2D23 15.'13 GMT411 Jane Marshall (Senlor statutory audltorl for and on behalf of BHP LLP Statutory Auditor 2 Rutland Park Sheffield 510 2PD Date.- Mar 30, 2023 Page 13
BIRKDALE SCHOOL IA company Ilmlted by guarantee) STATEMENT OF FINANCIALACtIVlTIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 AUGUST2022 Unrestrleted funds 2022 Restrleted funds 2022 Total funds 2022 Total funds 2021 Note Income from: Donations and legacies Charitable activities 855 8.941,463 186,527 8.941,463 186,527 8,455,745 115.567 other trading activities Investrnents 695 695 2,560 142.679 other income Total Income 9.128,685 9.128,685 8,717.406 Expenditure on: Raising funds Charitable activities 120,860 9,090,008 120,860 9,090,008 77.841 8,629,682 io Total expenditure 9,210,868 9,210,868 8,707,523 Net movèmènt in funds 182,1831 182,1831 9,883 Rècontiliation of funds.. Total funds brought forward Net movement in fund5 11.474,046 182,1831 61,050 11.535,096 182,1831 11,525,213 9,883 Total funds tarried forward 11,391,863 61,050 11,452,913 11,535,096 All income and expenditure derives from continuing activities. The Statement of financial activitie5 complies with th8 requirements for an income and expendituie account under the Cornpanies Act 2006 and includes all gains and losses recogni5ed in the year. Page 14
BIRKDALE SCHOOL IA company Ilmlted by guarantee) REGISTERED NUMBER.. 02792166 BALANCE SHEET AS A T31 AUGUST2022 2022 2021 Note Fixed assets Tangible assets 16 10.554,858 10,800.961 10.554,858 10,800,961 Currènt assets Debtors 17 601.288 2,271,526 464,192 2,166,979 Cash at bank and in hand 2,872.814 2,631,171 Creditors.. amounts falling due within one year 18 11,446.1111 11,322,368) Net current assets 1.426,703 1,308,803 Total assets less current liabilities 11,981,561 12,109,764 Creditors.. amounts falling due after more than one year 19 1528,6481 1574,6681 Total net assets 11,452,913 11,535,096 Charlty funds Restricted funds 20 61,050 61,050 Unrestricted funds Designated funds (including revaluation reserve.. 2022 £720,98612021- £735,51511 General funds 20 9,978.115 1,413.748 10,177,513 1,296,533 20 Unrestricted funds 20 11,391,863 11,474,046 Total funds 11.452,913 11,535.096 Page 15
BIRKDALE SCHOOL
(A company limited by guarantee)
REGISTERED NUMBER: 02792166
BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2022
The governors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the governors and signed on their behalf by:
Paul Houghton {Mar 30, 2023 14:09 GMT +1)
Mr P R Houghton
Chairman Date: Mar 30, 2023
The notes on pages 18 to 41 form part of these financial statements.
Page 16
BIRKDALE SCHOOL IA company Ilmlted by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST2022 2022 2021 Note Cash flows from operatlng actlvltles Net cash provided by operating activities 23 297.630 739,738 Cash flows from investing activities Bank interest 695 2,560 297 Proceeds from the sale of tangible fixed assets Purchase of tangible fixed 3S5ets 1147,0731 1106,4621 Net cash used In Investlng artlvltles 1146.3781 1103,6051 Cash flows from financlng actlvltles Repayments of borrowing 146.7051 1173,4481 Net cash used in financing activities 146.7051 1173,4481 Change in cash and cash equivalents in the year 104.547 462,685 Cash and cash equivalent5 at the beginning of the year 2,166,979 1,704,294 Cash and cash equlvalents at the end of the year 24 2,271.526 2,166.979 Page 17
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 General information The charity is a company limited by guarantee in England and Wales. The members of the company are the Eovernors named on paee l. In the event of the charity being wound up. the liability in respect Of the guarantee is limited to £1 per mernber of the Charity. The address of the registered office is given in the tharity information on page l of these financial statements. Accountlng pollcles 2.1 Bas15 of prep¢7rotion olfinonci¢71stotements 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 IFRS 1021 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 IFRS 1021 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011. the Companies Act 2006 and UK Generally Accepted Accounting Practice. The financial staternent5 are prepared under the historical cost convention, unle55 OthenNise 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 contern The Governor5 are mindful of the current C05t of living crisis, which may affect some parent5 ability to fund their children's independent school education and the ongoing uncertainty arising from high inflation and the significant increases in the cost of energy which increases the operational costs of the school. The Governors have prepared detailed medium term forecasts of income and expenditure and cash flow going beyond the next 2 year5 and subjected these forecast5 to reasonable Sensitivity analy515 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 expenditure 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 ba515. Page 18
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 Accountin8 policies Icontinuedl 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 recogni5ed 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 condition5 15 within the control of the charity and it 15 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 ha5 occurred. Interest income is recognised as the charity's right to receive payment is established. Other income includes grant intome received from the Government to tover the salarie5 of furloughed employees through the Coronaviru5 Job Retention Scheme. Thi5 is included on a receivable basis. 2.4 Expendlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it 15 probable that a transfer of econornic benefits will be required in Settlement and the amount of the obligation can be rneasured reliably. support costs are those costs incurred directly in support of expenditure on the objects of the charity. Cost5 of raising funds are cost5 incurred direttly in attratting 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 All expenditure is inclusive of irrecoverable VAT. 2.5 Interest recelvable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity,. this is norrnally upon notification of the interest paid or payable by the institution with whom the funds are deposited. Page 19
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 Accountin8 policies Icontinuedl 2.6 Tanglblelixed ossets anddepreclatlon Tangible fixed assets costine £2.(XJO or more are capitalised and recognised when future economic benefits are probable and the c05t or value of the asset can be measured reliably. Amounts les5 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 a55et into its intended working condition should be included in the measurement of c05t. 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 carryinE value of fixed assets and their recoverable amount5 are recognised a5 impairment5. Impairment 1055e5 are recognised in the Statement of financial activitie5 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 ba5es'. Freehold buildings LonE-term leasehold buildings Motor vehicle5 Fixtures and fittin8S Equipment ICT equipment 50 years straight line 50 years straight line 3 5 year5 Straight line 10- 25 years straight line 5 years straight line 5 years straight line A5 permitted under FRS102, the charity has elected not to adopt a policy of revaluation of tangible fixed aS5et5. 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 exces5 of the annual depreciatitsn charge on revalued assets over the notional historical c05t depreciation charge ON those assets, is transferred annually from the revaluation reserve to the income and expenditure reserve. 2.7 Refurblshment oApmperty In line with relevant accounting standards, where the governor5 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 15 Used. Consequently, refurbishment C05ts 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 20
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 Accountin8 policies Icontinuedl 2.8 Operotlng 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 Debtor5 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 Cush ut bank und in hund Cash at bank and in hand includes cash and short-term highly liquid investments Wlth a short rnaturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.11 Llabllltles undprovlslons Liabilitie5 are recognised when there 15 an tsbligation at the balance sheet date a% a result of 3 past event, it 15 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 ha5 received a5 advanced payment5 for the good5 or service5 it must provide. Provisions are measured at the best estirnate 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 15 recogni5ed in the Staterment of financial activitie5 a5 a finance cost. 2.12 Fingnciol 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 loan5 which are 5ub5equently rneasured at amort15ed c05t usin8 the effective interest method. Page21
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 Accountin8 policies Icontinuedl 2.13 Employee beneAits Termlnatlon beneflts Termination benefits are employee benefits payable a5 a result of the charity'5 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 FRSIO2. Deflned benefit pension scheme The charity participates in the Teacher5, Pension Scheme (England and Wales) I the TPS'I, ftsr it5 teaching Staff. This 15 a multi-employer defined benefit5 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 FRSIO2, the charity accounts for this scheme as if it were a defined contribution scheme and therefore the pension cost5 charged in the Statement of financial activities are the contribution5 payable to the scheme in respect of the accounting period. 2.14 Fund occountlng General funds are unrestricted funds which are available for use at the discretion of the governors in furtherance of the general objective5 of the charity and which have not been designated for other purpose5. 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 cost5 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 note5 to the financial statements. Page 22
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 Crltlcal accountlng estimates and areas of lud8ment 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 accountin8 estimate5 and as5umptions'. 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 area5 of judgment.. The annual depreciation charge for tan8ible assets 15 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. Income from donations and le8acies Unrestrlcted funds 2022 Restrleted funds 2022 Total funds 2022 Total funds 2021 Donations 8S5 Total 2021 226 629 855 Income from charitable activities Unrèstricted funds 2022 Total funds 2022 Total funds 2021 Fee income 10,261,177 10,261.177 9,668,957 11,414,264) 11,414,264) 11,319,910) 94,550 94.5SO 106,698 Discounts, bursaries & scholarships Other ancillary fees Tot¢712022 8,941,463 8,941.463 8,455,745 Total 2021 8,455,745 8,455,745 Page 23
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 Income from other tradlng actlvltles Unrestricted funds 2022 Total funds 2022 Total funds 2021 Rent received 65.304 65.304 47.950 Sundry income Breakfast club 10,339 12.540 10.339 12.540 10,883 7.384 After school club 23,176 75.168 23.176 75.168 17,386 31.964 School bus services 186.527 186.527 115.567 Total 2021 115,567 115,567 Imiestment income Unrestricted funds 2022 Total funds 2022 Total funds 2021 Interest receivable 695 695 2,560 Total 2021 2,560 2,560 Page 24
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 other Income Unrestricted funds 2022 Total funds 2022 Total funds 2021 Coronavirus Job Retentic>n Scheme income 142,679 Total 2021 142,679 142,679 Expenditure on raising funds Unrèstricted funds 2022 Total funds 2022 Total funds 2021 Bus service 102,156 18,704 102.IS6 18,704 64,229 13,612 Other expenditure 120,860 120,860 77,841 Total 2021 77,841 77,841 Page 25
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 io. Analysls of expendlture on charftable actlvltSes Summary byAund type Unrestrlcted funds 2022 Restrlcted funds 2022 Total 2022 Total 2021 Teaching costs Welfare costs 6,595,742 945,517 710,197 734,208 18,224 13,948 72,172 6,595,742 945.517 710,197 734.208 18,224 13.948 72,172 6,425,134 761,771 678,338 657,159 17,100 11,295 78,885 Premises Support costs Inote 111 Interest Governance costs (note 121 Cost of generating ancillary fees 9,090,008 9,090,008 8,629,682 Total 2021 8,628,944 738 8,629,682 Summary by expendlture type Staff cost5 2022 Other costs 2022 Total 2022 Total 2021 Teaching costs Welfare costs 5,852,928 115,192 742,814 830,325 6,595.742 945,517 710.197 734,208 18.224 6,425,134 761,771 Premises 710,197 130,084 678,338 657,159 Support costs Inote 111 Interest 604,124 18,224 17,100 Governance costs (note 121 Cost of generating ancillary fees 13,948 13,948 72.172 11,295 72,172 78,885 6,572,244 2,517,764 9,090.008 8,629,682 Total 2021 6,529,088 2,100,594 8,629,682 Page 26
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 ii. Analysls of expendlture by actlvltles Total funds 2022 Total funds 2021 Dlrect costs Support costs 2022 2022 Teaching costs Welfare costs 6.595,742 6,595.742 6,425.134 945,517 710,197 945.517 710.197 761,771 678.338 Premises Support cost5 Interest 734,208 734.208 18.224 657,159 17.100 18,224 Governance costs (note 121 Cost of generating ancillary fees 13,948 13.948 72.172 11,295 78.885 72,172 8,341,852 748.156 9,090.008 8,629.682 Total 2021 7.961,228 668,454 8.629,682 Analysls of support costs Total funds 2022 Total funds 2021 Support COSts 2022 Other costs 2022 Staff costs 604,124 604.124 13,948 82.694 536,924 11,295 66,045 Governance costs (note 121 Office costs 13,948 82,694 Other 47,390 47,39] 54,190 734,208 13,948 748,156 668,454 Total 2021 657,159 11,295 668,454 Page 27
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 12. Governance costs 2022 2021 Auditor's remuneration 13,948 11,295 13. Corporatlon Tax The charitable company is considered to pass the tests set out in Sch. 6. para. l of the Finance Act 2010 and therefore it meet5 the definition of a charitable company for UK corporation t3x purposes. Accordingly, the charitable company 15 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 incomellexpenditurel 2022 2021 This 15 Statedofterchorging.. Depreciation of tangible fixed assets.. owned by the charity Auditor's rernuneration 393.037 13,948 1,139.028 139 402,644 11,295 749,342 12901 Operating lease rentals IProfitl1105S 011 S31e of fixed assets 15. Staff costs 2022 2021 Wages and salaries Social 5ecuritV Costs Contribution to defined contribution pension schemes 5,081.783 527.613 962.848 5,069.700 518,431 940.957 6,572.244 6,529,088 Agency and a550Clated c05t5 of £32,99812021 £nill are included in wage5 and 5alarie5 above. Page 28
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 15. Staff costs Icontinuedl The average number of persons employed by the charity during the year was as follows.. 2022 No. 2021 No. Teaching staff Non teaching staff 95 99 73 83 182 The average headcount expressed as full-time equivalents was.. 2022 No. 2021 No. Teaching staff Non- teaching staff 85 88 47 129 135 The number of employees whose employee benefits (excludin8 ernployer pension costs) exceeded £60,000 was.. 2022 2021 In the band £60,001- £70.000 In the band £70,001 - £80,000 In the band £80,001- £90.000 In the band £IIO,001- £120,000 In the band £130,001- £140.000 The total amount of employee benefits reteived by key management personnel, including employer's pension and employer's national insurance, is £343,40212021.. £374,966). The school considers its key management personnel to comprise of the two Heads and the bursar, detailed on page l. Total termination payment5 amounted to £nil12021.. £24,604). The governors neither received nor waived any remuneration during the year12021'. Enill. £nil expenses have been reimbursed in the year, or during the prior year. Page 29
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 16. Tangible fixed asset5 Long-term leasehold property Freehold propertv Fixtures and fittings Other fixed assets Total Cost or valuatlon At I September 2021 Additions 12,232,568 2,578,697 1,052,629 1076,008 147,073 122,3841 17,739,902 147,073 122,3841 Di5P05als At 31 August 2022 12.232,568 2.578.697 1,052.629 2.000,697 17.864,591 Depreciotion At 15eptember 2021 Charge for the year On disptssals 3.756,385 876,081 609.568 1.696,907 6.938,941 206,397 51.717 56.332 78,591 122,2451 393,037 122,2451 At 31 August 2022 3.962,782 927.798 665.91XI 1.753,253 7.309,733 Net book value At 31 August 2022 8,269,786 1,650,899 386,729 247,444 10,554,858 At 31 August 2021 8,476,183 1,702,616 443,061 179,101 10,800,961 The land and buildings were valued at £3,375,000 based on open market values (except for Heeley Hall, whith w35 assessed on the ba515 of depreciated replacement C05tl on l April 1993 by Mark lenkinson & 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 land and buildin85 as at 31 August 2022 is as follows.. Land and buildings At cost 14.090,279 720,986 At revaluation, at l April 1993 14,811,265 Page 30
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 16. Tangible fixed assets Icontinuedl If the freehold land and buildings had not been included at valuation they would have been included under the historical cost convention as follows.. 2022 2021 Cost 11,084,816 11,084,187 13,536.0161 13,344,148) Accumulated depreciation 7,548.81XJ 7,740,039 17. Debtors 2022 2021 Trade debtors 361.428 239,383 Other debtors 19,200 220.660 17,444 207,365 Prepayments and accrued income 601.288 464,192 Page31
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 18. Creditors.. Amounts falllng due wlthln one year 2022 2021 Bank loans 48,095 35.363 129,950 339.445 48,780 134,752 120,473 218,489 Trade creditors Taxation and social seturitv Other creditors Accruals and deferred income 893,258 799,874 1,446.111 1,322.368 2022 2021 Deferred incorne at I Septernber Resources deferred during the year Amounts released from previou5 periods 625.963 728.891 1625.9631 662,745 625.963 1662,7451 Deferred incorne at 31 August 728,891 625,963 Deferred income represents fees received in advance. Page 32
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 19. Creditors.. Amounts falllng due after more than one year 2022 2021 Bank loans 528,648 574,668 Included within the above are amounts falling due as follows.. 2022 2021 Between one and two yeors Bank loans 49.806 50,065 Between two undfive ye17rs Bank loans 160.3thJ 158.235 Overflve years Bank loan5 318,542 366,368 The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is= 2022 2021 Repayable by instalments 318.542 366,368 318,542 366,368 There is now one bank loan. which incurs interest at 3.5% and is repayable over 15 years. See note 30 for details of loan 5ecuritv. Page 33
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 20. Statement of funds Statement of funds- current year Balance at i September 2021 Transfer5 inlout Balance at 31 August 2022 Income Expenditure Unrestrictedfvnds Deslgnatedfunds Designated fixed asset fund 10.177,513 1199.3981 9.978,115 Generolfunds Income & expenditure reserve 1.296,533 9,128.685 19.210,8681 199.398 1.413,748 Tot¢71 Unrestrictedfvnd5 11.474,046 9,128.685 19.210,8681 11.391,863 Restrlctedfunds Rudston School fund 60,000 60,000 Gillespie Gap Year Sanderson Keyboard Prize fund 750 750 300 300 61,050 61,050 Total ofAunds 11.535,096 9,128,685 19,210,868) 11.452,913 Page 34
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 20. Statement of funds Icontinuedl statement of funds- prlor year Balance at I September 2020 Balance at 31 August 2021 Transfer5 in/out Income Expenditure Unrestrlctedfvnds De5igngtedfunds Designated fixed asset fund 10,300,2S4 1122,7411 10,177,513 GeneralAunds Income & expenditure reserve 1,163,800 8,716,777 18,706,785) 122,741 1,296,533 Totul Unrestrlctedfvnds 11,464,054 8,716,777 18,706,785) 11,474,046 Restrittedfunds Rudston School fund 60.000 750 60.000 750 Gille5pie Gap Year Sanderson Keyboard Prize fund Friends of Birkdale School 300 300 109 629 17381 61,159 629 17381 61,050 Totul offunds 11,525,213 8.717,406 18,707,523) 11,535,096 Page 35
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 20. Statement of funds Icontinuedl Desl8nated funds The designated fixed asset fund arise5 from the transfer of the as5et5 of the forrner charitable trust to the charitable company upon its incorporation in 1993, less the balance on the mortga8e5 held on these propertie5. Transfers The fund movements represent the movement% on the fixed assets and the mortgage during the year from the general incorne and expenditure reserve to the designated fixed asset fund. Restrlcted funds Rudston School fund. This is to aS5iSt children located in Rotherham to have acces5 to attend Birkdale School. At the year end the fund balance is £60,00012021- £60,000). The Gille5pie Gap Year Trust Fund provides bur53ries for sutcessful applitants for their gap year projects. The fund balances now stand at £75012021.. £7501. Sanderson Keyboard Prize Fund. This is a music prize fund to be distributed to students. At the year end the fund balance 15 £30012021.. £3001. 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. 21. Summary offunds Summary of funds- current year Balance at i September 2021 Transfer5 inlout Balance at 31 Aueust 2022 Income Expenditure Designated funds General funds 10,177,513 1.296,533 61,050 1199,3981 199.398 9,978,115 1.413,748 61,050 9,128.685 19.210,8681 Restricted funds 11,535,096 9,128,685 19,210,868) 11,452,913 Page 36
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 21. Summary of funds Icontinuedl Summary of funds- prlor year Balance at I September 2020 Balance at 31 August 2021 Transfers inlout Income Expenditure Designated fund5 General funds 10,300,254 1,163.800 1122,7411 122,741 10,177,513 1,296.533 8.716,777 18,706.7851 17381 Restricted funds 61,159 629 61,050 11,525,213 8,717,406 18,707,523) 11,535,096 22. Analysis of net assets between funds Analysls of net assets between funds- current year Unrèstrieted fund5 2022 Restrictèd funds 2022 Total funds 2022 Tangible fixed assets Current assets 10,554.858 10,554,858 2,811,764 11,446.1111 1528,6481 61,050 2.872,814 11,446,111) 1528,6481 Creditors due within one year Creditors due in more than one year Totol 11,391,863 61,050 11.4S2,913 Page 37
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 22. Analysis of net assets between funds Icontinuedl Analysls of net assets between funds- prlor year Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Tangible fixed assets Current assets 10,800.961 10,800.961 2,570,121 11,322.3681 1574,6681 61,050 2,631,171 11,322.3681 1574,6681 Creditors due within one year Creditors due in more than one year Tot¢71 11,474,046 61,050 11,535,096 2022 2021 Free resernes Current assets- unrestricted 2,811.764 2,570.121 11,446,111) 11,322,368) 48.095 48.780 Les5 current liabilitie5 Add back current liabilities re fixed assets 1,413.748 1,296,533 23. Reconciliation of net movement in funds to net cash flow from operating activities 2022 2021 Net lexpenditurellincome for the year las per Statement of Financial Aetivitiesl 182.1831 9,883 AdjustmentsAor." Depreciation charges Bank interest 393.037 16951 139 402,644 12.5601 12901 308,204 Lossllprofitl on the sale of fixed assets Ilncreasel/decrease in debtors Increase in creditors 1137,0961 124.428 21,857 Net cosh providedbyopen7ting qctivities 297.630 739,738 Page 38
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 24. Analysls of cash and cash equlvalents 2022 2021 Cash in hand 2,271,526 2,166,979 Totul cash ondcosh equlvalents 2,271.526 2,166.979 25. Analysis of changes in net debt Atl September 2021 At 31 August 2022 Cash flows Cash at bank and in hand 2,166,979 148,7801 1574,6681 104,547 685 2,271,526 148,0951 1528,6481 Debt due within I year Debt due after l year 46,020 1,543,531 151,252 1,694,783 26. Penslon commltments Teachers, Pension Scheme The charity participates in the Teachers, Pension Scheme (England and Wales) I'the TPS'I, for its teaching staff. The Teachers. Pension Scheme ITPSI is a statutory, contributory, defined benefit scheme. governed by the Teachers, Pensions Regulations 2014. Mernbership 15 automatic for full-time teachers and, from l January 2007, automatic for teachers in part-time employment following appointrnent or a change of contract, although they are able to opt out. The TPS 15 an unfunded scheme to which both the mernber and employer fflake5 contribution5, a5 3 percentage of salary - these contributions 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 Capl Oirections 2014 published by HM Treasury every 4 year5. The airn of the review 15 to specify the level of future contributions. Actuari315cherne valuations are dependent on assumption5 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. The valuation report was Page 39
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 26. Pension commitment5 Icontinuedl published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are.. employer contribution rate5 set at 23.68% of pensionable pay, (including a 0.08% administration levyl total scheme liabilities Ipensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million, and notional a55et5 (estimated future contribution5 together with the notional inve5tment5 held at the valuation datel of £196,100 million giving a notional past service deficit of £22,000 million the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI. assumed real rate of return is 2.4% in exces5 of prices and 2% in exce55 of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%. 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 I September 2019 (this includes the administration levy of 0.08%). The employerf5 pension costs paid to TPS in the period amounted to £907,30312021.. £889,028). A copy of the valuation report and supporting documentation is on the Teachers. Pensions website. The next valuation result 15 due to be implemented frorn l 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. Defineil contrlbutlon penslon scheme The Charity contributes to a defined tontribution pension scheme for the benefit of the non-teaehing employees. The a55ets of the scheme are administered by trustees independent of the charitable company. The pension char8e for the year includes contributions payable to this scheme Df £55,54512021'. £51,9291. Page 40
BIRKDALE SCHOOL IA company Ilmlted by guarantee) NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2022 27. Operating lease commitments At 31 August 2022 the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows: 2022 2021 Not later than I year Later than I year and not later than 5 years Later than 5 years 337,138 5.691 487,516 20,380 25,OCNJ 25,000 367.829 532.896 28. Rèlated party transadions Children of three current Governor5, Mr N Birchenall, Mr P R Houghton and Mr S U5hewokunze, attended the School during the year. The children of Mr N Birchenall and Mr P R Houghton received scholarships. Mrs C Harris and Mrs P Burch, spouses of senior leadership, were employed by the school and their aggregate remuneration was £20,73012021.. £70,783). Mr C l 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. 29. Indemnity insurance The charitable company ha5 taken out professional indemnity and Director5, and Officer5, Liability insurance. Bank securitv The bank loan with HSBC is secured by a debenture with first legal charges over the following properties.. Johnson Mernorial Building, 4 Endcliffe Crescent, Sheffield, SIO 3ED Birkdale Preparatory School, Clarke House, Clarke Drive, Sheffield, 510 2NS Grayson Building, 3 Endcliffe Crescent and 117 Ashdell Road, Sheffield, SIO 3ED Belmayne House, 99 Clarkehouse Road, Sheffield, SIO 2LN 9 Endcliffe Crescent, Sheffield, 510 3EB Page 41