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2020-08-31-accounts

Sussex House School

(A company limited by guarantee and not having share capital)

Report and financial statements

For the year ended 31 August 2020

Company registration number: 02884794 (England and Wales)

Charity registration number: 1035806 (England and Wales)

Sussex House School

Reference and administrative details of the charitable company, its trustees and advisors

Trustees A B Badenoch_deceased_ 26 11 2020
J A Crewe
J M Elias
M A J Goedhuis
N P Kaye
Board of Governors J A Crewe (Chairman)
A B Badenoch_deceased_ 26 11 2020
J M Elias
G R Evans_resigned 12 3 2020_
N M Gayner
M A J Goedhuis_resigned 15 1 2020_
P D Hargreaves
J Gallant_appointed 2 7 2020_
P P A Lagrange_resigned 25 1 2020_
Registered Company 02884794 (England and Wales)
number
Registered Charity 1035806 (England and Wales)
number
Headmaster N P Kaye
Bursar A M Bennett
Independent auditor WMT - Chartered Accountants
Verulam Point
Station Way
St Albans
Hertfordshire
AL1 5HE
Registered Office 68 Cadogan Square
London
SW1X 0EA
Website www.sussexhouseschool.co.uk
Bankers Barclays Bank plc
Level 27
1 Churchill Place
London
E14 5HP

Sussex House School

Contents

Trustees’ report 1
Independent auditor’s report 9 - 11
Statement of financial activities (including income and expenditure account) 12 - 13
Balance sheet 14
Cash flow statement 15
Notes to the financial statements 16 - 27

Sussex House School

Trustees’ report

for the year ended 31 August 2020

The trustees (who are also directors of Sussex House School Limited for the purposes of company law and trustees for the purposes of charity law) present their statutory report, which also represents a directors’ report, for the year ended 31 August 2020 under the Companies Act 2006, together with the audited financial statements for the year, and confirm that the latter comply with the requirements of the Companies Act 2006 and the charitable company's memorandum and articles of association and have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) and the Statement of Recommended Practice (Accounting and Reporting by Charities) (the Charities SORP – Second Edition). The report has been prepared in accordance with Part 8 of the Charities Act 2011.

Reference and administrative information

Sussex House School ("the School") is a registered charitable company founded in 1994, charity number 1035806 and company number 02884794. The liability of the members is limited by guarantee to an amount not exceeding £5.

The School has an official Church of England affiliation under the Designation of Schools having a Religious Character (Independent Schools) (England) Order 2004.

Structure, governance and management

Governing document

The charitable company is governed by its memorandum and articles of association which were last amended on 10 March 1994.

Trustees

The trustees, who are also directors of the charitable company, who have held office for the whole of the year unless otherwise stated, and to the date of this report, are as follows:

A B Badenoch deceased 26 11 2020

J Crewe J M Elias M A J Goedhuis N P Kaye

Trustee appointment and training

New trustees will be appointed in accordance with the Articles of Association following lengthy consultation and consideration by the existing trustees who must be satisfied regarding their eligibility. Existing trustees retire by rotation each year.

Any new trustees will be inducted into the workings of the School, and also of the company as a registered charity by the Headmaster. Prospective trustees will be provided with a memorandum of the legal responsibilities and duties of trustees and are invited to familiarise themselves with CC3 "The Essential trustee: what you need to know, what you need to do" published by the Charity Commission plus copies of the charitable company's financial statements and minutes of previous trustees' meetings.

Page 3

Sussex House School

Trustees’ report

for the year ended 31 August 2020

Structure, governance and management (continued)

Organisational management

The trustees meet six times a year to determine the general policy of the charitable company and review its overall management and control, for which they are legally responsible. When determining policies, the trustees seek input from the Board of Governors which also meets at least three times a year. The day-to-day running of the School is delegated to the Headmaster and the Staff Senior Management Team.

Objects, aims, objectives and principal activities (including public benefit)

The primary objective of the charitable company, as set out in its memorandum and articles of association, is promoting and providing for the advancement of education of children and adults by the provision of one or more schools, tutorial colleges and other establishments.

The Trustees have had regard to the guidance on public benefit published by the Charity Commission, and in particular to its supplementary public benefit guidance on advancing education and on fee charging when exercising their powers and duties, in particular when setting fees charged by the School and identifying the benefits provided by the charitable company in relation to its aims.

Although the School has an entry test, due to the large number of applications for places, the policy is to measure potential as well as a pupil's current performance so that priority is given to children who will benefit from not only the academic programme on offer at the School, but also the specialities of certain areas of creativity, notably Music, Art and Theatre. The School has never restricted entry to a potential pupil because of the pupil's parents' inability to pay the fees. The School has never asked for a pupil to be removed from Sussex House due to a change in parents' financial circumstances. The geographical location of a pupil's home, their ethnicity, race or existence of a disability are quite irrelevant to the School's selection procedure. Although the School has an official Church of England affiliation, a family or child's religious affiliation is not taken into account when places are offered and boys of all religions and denominations or none are welcomed equally.

Strategic aim and intended effect

The School's strategic aim is to reach its annual objective which is the attainment of the highest academic levels whilst allowing pupils to benefit from the School's extensive extra-curricular programme. This enables the School to develop its pupils' abilities and academic potential, awaken and develop their wider interests in life and prepare them for the senior school of their own and their parents' choice.

Objectives for the year

The trustees' main objective for the year continued to be to educate all the School's pupils to at least the same high standard achieved by the School in previous years, so that they will fully benefit from their chosen senior school for the completion of their education in due course. The strategy to achieve this is to maintain a high teacher-to-pupil ratio and to tailor the education of each pupil to suit their individual needs. In addition, the trustees aim to continue providing support in respect of the provision of means tested bursaries and to continue to develop links with the local community and other organisations.

Principal activity

The School continues to operate as a day school for 8-13 year-old boys, educating them to a high standard and so enabling them to move on to a suitable senior school for the completion of their education.

Page 4

Sussex House School

Trustees’ report

for the year ended 31 August 2020

Review of achievements and performance for the year (including public benefit)

Operational performance of the School

It has been an outstanding year for the School with members of the sixth form succeeding in gaining entry to the Schools of their choice, with a King’s Scholarship to Eton, and 2 Music Scholarships and a Music Exhibition to top academic schools. The COVID 19 pandemic had an unprecedented impact, with the 23 March 2020 lockdown imposing far-reaching restrictions, but the School rose to the challenge, devising and delivering it’s academic “Virtually Sussex House” online learning programme, which was very well received and hugely successful. Inevitably, the customary volume and variety of literary, drama, art, music and sports, along with many school trips, were significantly impacted during the Summer term, and the termly school fee was reduced by 40% accordingly. Those staff who did not have a role in the delivery of the online learning programme were furloughed.

Bursaries, donations and sponsorships

There were 2 bursaries awarded for 2019-20. The School continues to seek pupils who will benefit from the School's bursary provision, as well as additional sources of bursary funding.

Donations to the Asra Hawariat School Fund, which supports the Asra Hawariat School, Ethiopia arising from funds raised at School events, amounted to £764 (2019: £2,807), and certain parents made donations directly.

Relationships with the Local Community and other organisations

A significant proportion of the School's donations are raised as a result of the efforts of the School's Activities Committee which is managed by the parents of pupils and staff at the School. The two main fundraising activities each year are usually the Christmas Fair and the Summer Auction. Although the latter could not take place this year, due to the COVID 19 pandemic, donations to the school were generous.

The School is a member of IAPS which acts for the promotion and maintenance of preparatory school standards generally.

The School co-operates with various churches, including St Simon Zelotes, Milner Street, and pupils are involved in three concerts a year (two this year) as part of the Music Society Programme of St. Mary Magdalene Church Little Venice, and other local charities and societies. The School is also closely involved with the Asra Hawariat School in Ethiopia to which a proportion of the monies raised from the School Christmas Fair is donated each year.

Sussex House has continued to share our curriculum under an initiative of the Board of Governors for Grenfell Response.

The Malcolm Arnold Preparatory Academy

The School is a strategic partner in the development of the Malcolm Arnold Preparatory Academy (part of the Malcom Arnold Academy), which is committed to reflecting aspects of the educational and creative approach of Sussex House School. The school is based in Northampton. Sussex House has been sharing expertise at many levels and Nicholas Kaye our Headmaster, has been an academic consultant to the school.

Fencing

The School has a considerable tradition of achievement in this sport, having produced a considerable number of national champions over the past 20 years, however, many of the later competitions were cancelled this year due to the pandemic, including the London Youth Games.

Page 5

Sussex House School

Trustees’ report

for the year ended 31 August 2020

Review of achievements and performance for the year (including public benefit) (continued)

Music

The School contributed to the funding of one major event (2019: two events) of the St Mary Magdalene Music Society based at St Mary Magdalene Church, at a cost of £14,947 (2019 : £25,200 ). Members of the public attend and form part of the Chorus and Orchestra in these events and the large audiences contain many members of the public who have no other association with Sussex House. Events this year include the Duruflé Requiem (November 2019), ‘Victorian Voices' evening (March 2020). The customary 'Singers and Soloists' concert which usually takes place in May was not possible this year, due to the COVID 19 pandemic. Sussex House Choir sang carols at a variety of local venues, including local churches and hotels.

Church

Sussex House takes part in various events at its local church, St Simon Zelotes, Milner Street, SW3. The School contributed £2,500 (2019: £2,500) towards the upkeep of the church. The School has also maintained its strong link with St Mary Magdalene Church, Rowington Close, Little Venice, W2.

The Asra Hawariat School, Addis Ababa

Sussex House has established a strong link with this school in Addis Ababa. The Asra Hawariat School exists to provide education for 1,500 Ethiopian children who would not otherwise have the means to attend school. The school is funded by the Asra Hawariat School Fund based in the UK and no children pay to attend. A generous contribution from funds raised at the annual Sussex House Christmas Fair was donated to the Asra Hawariat School Fund and as a result of the link many parents have made generous separate donations to that school.

The trustees have continued to review the School's activities including revenue and financial, human and physical resources as part of their duties to monitor and ensure that the School's charitable objects and the public benefit are achieved most effectively.

Related party transactions

N P Kaye is a trustee of the Asra Hawariat School Addis Ababa, Ethiopia and of the St Mary Magdalene Music Society. Details of transactions with these related parties are set out in note 18 to the financial statements.

Bursary policy

Bursaries are available to those prospective pupils who meet the School's entry requirements, or current pupils, and are made solely on the basis of parental means or to relieve hardship where a pupil's education and future prospects would otherwise be at risk. In assessing means the School takes a number of factors into consideration including family income, investments and savings and family circumstances.

Risk management

The Trustees identify and assess the major risks to which the Charity is exposed, and how these are appropriately managed. This year, the COVID 19 pandemic featured heavily. The major risks identified being an adverse impact on the reputation of the school, changes to the regulatory, legislative and inspection regime, and financial risk. To mitigate these risks, among other actions, the Trustees, with assistance from the Governors and the Staff Senior Management Team, ensure that a high quality education is provided, ensure that a robust set of policies, procedures and risk assessments are maintained, develop financial management, monitor the effectiveness of the system of internal controls and other viable means, including insurance cover where appropriate. Trustee Indemnity insurance is in place.

Page 6

Sussex House School

Trustees’ report

for the year ended 31 August 2020

Financial review and results for the year

The School’s income exceeded expenditure by £387,497 during the year (2019: £144,360), which reflects the ongoing management of income and costs without compromising educational quality. The School received income of £3,925,675 (2019: £4,022,924) during the year as a result of charging for tuition and related activities. In addition, the School received donations to the Technology Fund for the upgrade of IT equipment of £50,000 and donations to the Arts and Sports Fund of £142,361 (2019: £118,006). There were donations of £764 (2019: £2,807) for the Asra Hawariat School fund and unrestricted donations of £22,264 (2019: £28,026).

Expenditure on School operating costs was £3,713,710 (2019: £4,040,234) with a further £43,431 (2019: £31,235) of expenditure incurred in relation to bursaries and donations.

A grand piano was refurbished from Theatre and Music Fund at a cost of £4,750 and the computers in the IT suite were replaced at a cost of £27,546.

The year, a further £5,758 (2019: £16,665) of capital expenditure was incurred, mainly on technology for “Virtually Sussex House”. There continues to be a steady number of registrations for future attendance at the School, and a strong demand for places from high calibre academic candidates, based on entrance test results.

Reserves policy

The School's unrestricted funds at the end of the year were £1,144,068 (2019: £856,298), and restricted funds were £549,532 (2019: £454,835). Total reserves stand at £1,693,600 (2019: £1,311,133). In a normal year, a total reserve level equivalent to one term's customary expenditure would be a level which the trustees would consider practicable and achievable on an ongoing basis to cover the customary risks and uncertainties of operating as an independent educational establishment. However, based on the educational impact and reduction in tuition fees the school has experienced due to the COVID 19 pandemic during the year, and the considerable continuing uncertainty associated with the pandemic, the Trustees consider it prudent to maintain reserves to cover these unprecedented risks, in order that the School is in a position to respond to the developing situation.

Remuneration Policy

The key management personnel of the School are the Headmaster and the Staff Senior Management Team. Their remuneration is set by the Trustees.

Investment policy and objectives

There are no restrictions on the charitable company's absolute powers of investment. The trustees' policy continues to be to put any surplus cash on a special deposit account. Deposit account interest of £3,574 (2019: £4,066) was received during the year.

Future plans

The projects for the forthcoming year are the Technology project, which will upgrade the ICT equipment.

The School's key objectives remain to maintain the number of pupils at the present level and to pursue the same objectives as reported above for this year.

Page 7

Su¥8•x House School Trustses. report for the year ended 31 August 2020 of ent• Th8 tsu8tee8 Iwho aTe aL80 dir9Ctor8 ol Sussex H¢)u8e School forthe purposes ol campany lawl are re8pon8ible for preparing the Irustee8' rnport and fin8nrial slatemfrnts In accordance wbth aF¢)Ilc4ble law and United ￿'r4dOM Gener811y Aecepled Accounb"ng PradJ'r• (UK GWI. Company law requlres the twsteeB lo prepare flnanci81 ststements foreach financ4al yearvjhith a true and lalrviaw ol th• State of affa1￿ of the ehorilable company and of the incoming re80urc•s 8nd applirAtvn ol resour￿8, Including the income and expendituM, of the charitsbl8 compony for that year. In Pf•paring th•￿ fin¥ncig1 statemants, th8 tru8ts68 are ulred to.. 8elect suitAbl• aCr￿Unting policie8 t￿n aFply them con8i8tanUy, ob88The the m•thodJ and princip￿ in th8 Statement of Rec4Th￿nded Pr•¢ti(>> (Account￿g and Reportlng by Charitl•81 (the charl￿e8 SORPI", make judgem?nts ¥nd e8llrn•t•i tmt ar• reaDOnab￿ ar￿ pnJd•nl'. slate wh8th8r applI￿￿￿e United KSngdom Ac£ounts'ng Standarf8 ho￿ beqn fr410￿1, Bubjecl lo any mat•rfal departurt• disd08ed and axplAin•J in th? financial 8tatsm8nt8'. and pr•para the fin•nci818tatemenli on Ihe 90ing b8818 unltm it Inappropriate to Prn8um8 tht ¢h•ritstsl• company oJnlinue in bu￿ne•1. The trubttts •r• rqsponwble for Ke￿Ifta pr¢¢4r accounth"w racordi t￿1 di￿0￿ wth reasonable •1 ony finanti81 p￿i￿on pl the tharitats￿ cornpany antyble them to enwr8 th8t th finoncial 8tatement8 Djmpiy ￿1￿ th• Compani88 Act 2(￿6. They am aLqo r•bponJible for8afeguarding the a•sel• ol the company and h•ne for t4￿r￿j rea9￿able Ite￿ for the pf8¥•n￿e￿ And detecuon of fraud And alher irrryularil'oB. Eaeh of th• Iru?tee8 ol the eharrtabkp company confi￿• that.. for a• the trii8lee 18 •ware, there18 no rdevanl oudit infonnjtion olwhich the company'$ audllor is unaware., and thè IriiBtee ha8 taken all tm step8 that he ought to h8v• lak¥n •$ a trugtee in orderto rnAke him8gW ware of any relevant audit infom)ats'on #n(1 to e•tabli8h that thè ¢h4rilable company'8 audltor ra 8wor• of that Inlornatkjn. Thi8 ¢onfim)•￿Tr 18 9fvan thoulj ￿ Intslprntod •C¢or¢an￿ wlh the provl8lon8 of S•etlon 418 olthè Companle• Act 2006. Th1& roport ha8 boen Pro￿[￿ in 4¢xordarKe vAth th• pro¥i8ioni appllcabkn to compan￿8 subject lo the 8mall cornpanle8' r8giTh. AForoved by tho trusteeB and •tyJned on th•lr t•h•f by /trp4Y- NPK8ya S•cretary Dats.. lo 2021 Page 8

Independent auditor’s report to the members of Sussex House School for the year ended 31 August 2020

Opinion

We have audited the financial statements of Sussex House School (the ‘charitable company’) for the year ended 31 August 2020 which comprise Statement of Financial Activities, Balance Sheet, Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 UK, including the FRC’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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Page 9

Independent auditor’s report to the members of Sussex House School

for the year ended 31 August 2020

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 the 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 trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement the trustees (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 trustees 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 trustees 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 trustees 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Page 10

Independent auditor’s report to the members of Sussex House School

for the year ended 31 August 2020

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Elizabeth Irvine (Senior Statutory Auditor)

For and on behalf of

WMT – Chartered Accountants and Statutory Auditors

Verulam Point Station Way St Albans Hertfordshire AL1 5HE

Date: 12 February 2021

Page 11

Sussex House School

Statement of financial activities (including income and expenditure account)

For the year ended 31 August 2020

Notes
Unrestricted
funds
2020
£
Income from charitable
activities:
2
School fees
3,675,724
Registration fees
22,800
Income from generated funds:
Donations
22,264
Interest receivable
3,574
Other income
227,151
Total income
3,951,513
Expenditure on charitable
activities:
3
- Teaching costs
2,708,459
- Premises
510,604
- Support costs
372,137
- Depreciation and amortisation
23,926
- Bank charges and bad debts
2,433
- Bursaries
22,659
- Donations
18,495
Total expenditure
3,658,713
Net income
for the year
292,800		 Restricted
funds
2020
£
—
—
193,125
—
—
193,125
26,682

—
69,469
—
—
2,277
98,428
94,697		 Total
funds
2020
£

3,675,724
22,800
215,389
3,574
227,151
4,144,638
2,735,141
510,604
372,137
93,395
2,433
22,659
20,772
3,757,141
387,497		 Unrestricted
funds
2019
£
3,985,172
27,000
28,026
4,066
10,752
4,055,016
2,860,128
608,485
379,854
26,745
20,251
—
28,971
3,924,434
130,582		 Restricted
funds
2019
£
—
—
160,813
—

—		 Total
funds
2019
£
3,985,172
27,000
188,839
4,066
10,752

160,813		 4,215,829
55,599

—
89,172
—
—
2,264		 2,915,727
608,485
379,854
115,917
20,251
—
31,235

147,035		 4,071,469

13,778		 144,360

The notes on pages 16 to 27 form part of the financial statements.

Page 12

Sussex House School

Statement of financial activities (including income and expenditure account)

For the year ended 31 August 2020

Notes
Unrestricted
funds
2020
£
Net income/(expenditure) for the
year
292,800
Depreciation on revaluation of
tangible fixed assets
(5,030)
Net movement in funds
287,770
Fund balances at 1 September
856,298
Fund balances at 31 August
11,12
1,144,068		 Restricted
funds
2020
£
94,697
—
94,697
454,835
549,532		 Total
funds
2020
£

387,497
(5,030)
382,467
1,311,133
1,693,600		 Unrestricted
funds
2019
£
130,582
(5,030)
125,552
730,746
856,298		 Restricted
funds
2019
£
13,778

—		 Total
funds
2019
£
144,360
(5,030)
13,778
441,057		 139,330
1,171,803
454,835 1,311,133

The net incoming resources for the year derive from the continuing operations of the charitable company.

The notes on pages 16 to 27 form part of the financial statements.

Page 13

SuwJ•x school . Charlty rngl•t8rod nurnbgr.. 1036806 IEngland and Wal••l Company rnoi¥t•r•d numbor. 02884794 (England •nd W•l••l Balance sheet for the year ended 31 August 2020 2020 2019 Nole$ Flx•d •••ets'. Tangible 488ets Listsd inve8trnenl8 737,238 124 797,809 124 787,733 737,382 Curr•nt••¥•ts: D8btor8 Ca8h al bank 208.144 1,890A07 1,198￿61 1640,8131 247.193 1,261.Ck35 1,508.258 1709,3581 Cv•dltorn: arnoun¢s f8lllna duè within on• ￿ar N?t ￿rrent 1,2S6,no 798,900 Total a•••l• IM• curr•nt Il•blllUo• 1,993,100 1.596,633 Credltor8. Jmountj fallln9 du6 8ft•rmora than one ywr 10 {299.0001 1285.5001 Total n•t •H•ts 1,093,600 1.311,133 R•prn••nt•d ty: Re•trthd fund8 Unr•gtrKled fvnd• 848132 1,144.061 454.835 8￿,298 12 Totsi fund• 1,693.600 1,311,133 The fin•rK4al 81atementg h8ve been prepared Sn 8CC•rdpn￿ with the SF•￿1 pro¥￿'0n1 ap￿1¢￿ble lo compan108 subject lo the grnall companYd8' regime. Under Compani08 Acl 2006. 8454, on a ¥o￿ntrry ba818 the Tru8tee8 ¢an •m•nd the8e finanaal Ststements Iflh•y 8ubwLntly prove to be d•f•¢tiw. Approved and oulh0ri8ed lor188u• by the trustee8 and 8ign8d on t￿1r behalf by.. NPK Tntse Date. A) r rd . 2021 The ncles on pag88 16 to 27 part olthe financi81 $t•t¢mgnls. Page 14

Sussex House School

Cash flow statement

for the year ended 31 August 2020

Cash flows from operating activities:
Net income for the year
Adjustments for:
Depreciation charges
Interest
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities:
Cash flows from investing activities:
Interest
Purchase of property, furniture and equipment
Net cash used in investing activities:
Change in cash at bank and in hand in the year
Cash at bank and in hand at the beginning of the year
Cash at bank and in hand at the end of the year
Changes in net debt
Cash at bank and in hand		 At
1 September
£
1,261,065		 2020
£
387,497
93,395
(3,574)
41,049
(54,545)		 2019
£
144,360
115,917
(4,066)
(53,156)
43,711
246,766
4,066
(45,691)
(41,625)
205,141
1,055,924
1,261,065
At
31 August
£
1,690,407
463,822
3,574
(38,054)
(34,480)
429,342
1,261,065
1,690,407
Cash
Flows
£
429,342

The notes on pages 16 to 27 form part of the financial statements.

Page 15

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

1 Accounting policies

Basis of preparation

Sussex House School is a public benefit entity under the Financial Reporting Standard 102 (FRS 102). The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold land and buildings, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) – Second Edition and the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) and the Companies Act 2006.

Income

All income is recognised when the charitable company is legally entitled to the income, when it is probable that the income will be received and when the amount receivable can be measured with sufficient reliability.

Fees

Fees consist of charges invoiced for the School year ending August 31 for tuition and registration. Fees received for education to be provided in future years are deferred to future periods.

Job Retention Scheme

Job Retention Scheme income consists of claims made through HMRC for a proportion of the cost of the wages and salaries of those employees who are furloughed during a period of Government-imposed physical school closure related to the COVID 19 pandemic. Amounts claimed are given in note 2.

Expenditure

All expenditure (including irrecoverable VAT) is recognised when a liability is incurred and has been classified under headings that aggregate all costs related to the category.

Charitable activities costs comprise all operating expenditure incurred to enable the charitable company to fulfil its charitable aims. These include both costs that can be allocated directly, and those of an indirect nature which are necessary to support charitable activities.

Costs of generating funds are those incurred in attracting voluntary donations.

Page 16

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

1 Accounting policies (continued)

Tangible fixed assets

Tangible fixed assets costing £300 or more are capitalised. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Freehold buildings - over 50 years Leasehold property and improvements - over the lease term Furniture and equipment - over 4-10 years

No depreciation is charged on freehold land.

Listed investments

Listed investments are shown at market value.

Financial instruments

The charitable company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as debtors and creditors.

Financial instruments are initially measured at transaction value. They are assessed at the end of each reporting period for objective evidence of impairment, and if found, an impairment loss is recognised.

Cash at bank

Cash at bank comprises cash at bank and in hand.

Debtors

Short term debtors are measured at transaction price, less any impairment losses.

Creditors

Short term creditors are measured at the transaction price.

Deposits

Deposits refundable against final term's fees are treated as a long term liability except to the extent that they are due to be repaid within one year of the balance sheet date in which case they are recorded as a current liability. Forfeited deposits are taken to income.

Pensions

The School contributes to the Teachers' Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the School by the Scheme Administrator. The Scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the Scheme which are attributable to the School. In accordance with FRS 102 the Scheme is accounted for as a defined contribution scheme and contributions are accounted for when advised as due by the Scheme Administrator.

Contributions to the NEST Pension Scheme are at the level required under current workplace pension legislation.

Page 17

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

1 Accounting policies (continued)

Leasing commitments

Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

Fund accounting:

Restricted funds

Restricted funds comprise donations given for a specific purpose and their use is therefore subject to specific restrictions imposed by donors.

Expenditure incurred in fulfilling the objective of each fund is charged against the fund balance and deducted from the expenditure category in the charitable company's Statement of Financial Activities. Where the expenditure relates to a fixed asset, an amount is set aside in restricted funds related to that fixed asset and an annual depreciation charge is made against the restricted fund until such time as that asset is fully depreciated.

Unrestricted funds

Unrestricted funds comprise accumulated surpluses and deficits and are available for use at the discretion of the trustees in furtherance of the general objectives of the charitable company.

Judgements

The preparation of the financial statements requires the Trustees to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year. The nature of estimation means the actual outcomes could differ from those estimates. There are no judgements made that have a significant effect on the amounts recognised in the financial statements.

Going concern

The trustees are not aware of any material uncertainties regarding going concern.

2 Income

Income represent fees charged in respect of tuition, other related activities and registration fees. Donations include those amounts donated to specific restricted funds and unrestricted donations along with any tax refund received under Gift Aid. Incoming resources also includes interest receivable and any gains in value of investments. This year, Other Income includes claims made under the HMRC Job Retention Scheme, comprising claims of £165,731 and £48,930 for wages and salaries of furloughed teaching and support staff respectively.

Page 18

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

2 Income (continued)

The donations received during the year comprised:


Restricted
funds
£
Arts and Sports Fund
142,361
Asra Hawariat School Fund
764
Technology Fund
50,000
Music and Theatre Fund

Other

193,125
3
Expenditure
(a)
This is stated after charging:
Staff costs (note 4)
Governance costs – Auditor’s remuneration
– other governance costs
Depreciation of owned fixed assets
Operating lease rentals – plant and equipment
– land and buildings		 Restricted
funds
£
142,361
764
50,000

 Unrestricted
funds
£




22,264		 2020
Total
£
142,361
764
50,000

**22,264 **		 2019
Total
£
118,006
2,807

40,000
28,026
193,125 22,264 215,389 188,839
2020
£
2,570,780
8,610
187
93,395
2,780
290,127		 2019
£
2,534,173
8,220
186
115,917
2,745
314,213

(b)

Remuneration of trustees

No trustees received any remuneration in respect of their services during the year (2019: £nil). No trustee received any reimbursement of expenses during the year (2019: £nil).

Mr N P Kaye, who is a trustee is also the school’s headmaster and his remuneration (excluding pension contributions) including benefits, was £147,032 (2019: £140,334) and is included in the staff costs. In addition, the School has made employer contributions to the Government's Teachers' Pension Defined Benefits Scheme (note 14) for the benefit of Mr N P Kaye of £29,535 (2019: £20,555).

(c) Indemnity insurance

The School has purchased indemnity insurance to indemnify the School for up to £1,000,000 from loss arising from the neglect or default of its trustees, employees or agents and to indemnify the trustees or other officers against the consequences of any neglect or default on their part at a cost of £187 (2019: £186).

Page 19

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

3 Expenditure (continued)

(d) Support Costs

4

Wages and salaries
Computer costs
Insurance (non-buildings)
Other support costs
Staff costs
Wages and salaries
Social security costs
Other pension costs (note 14)		 2020
£
253,837
73,519
19,282
25,499		 2019
£
248,310
68,052
21,110
42,382
372,137 379,854
2020
£
2,058,151
223,988
288,641		 2019
£
2,088,233
227,730
218,210
2,570,780 2,534,173

Of the above £2,316,943 (2019: £2,285,863) is included in teaching costs and £253,837 (2019: £248,310) is included in support costs in the Statement of Financial Activities.

The average monthly number of employees during the year was as follows:

2020 2020 2019 2019
FTE No. FTE No.
Teaching staff 37 46 37 48
Administration 5 5 5 5
42 51 42 53

Ex-gratia payments totalling £5,385 (2019: £33,536) were paid to staff leaving during the year.

The total of key management personnel compensation was £858,667 (2019: £728,724).

The number of employees whose remuneration exceeded £60,000 and to whom retirement benefits are accruing under defined benefit schemes (note 14) are set out below:

2020 2019
No No
£60,001 - £70,000 4 2
£70,001 - £80,000 2 6
£80,001 - £90,000 2 —
£90,001 - £100,000 1 —
£140,001 - £150,000 1 1

Page 20

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

5 Taxation

The School is a registered charity and therefore is not liable to income tax or corporation tax or income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

6 Tangible fixed assets

Cost/valuation:
At 1 September 2019
Additions
Disposals
At 31 August 2020
Depreciation:
At 1 September 2019
Provided during the year
Disposals
At 31 August 2020
Net book value:
At 31 August 2020
At 1 September 2019		 Freehold land
and buildings
£
936,628
—
—		 Leasehold
improvements
£
449,546
—
—		 Furniture &
equipment
£
806,602
38,054
—		 Total
£
2,192,776
38,054
—
936,628 449,546 844,656 2,230,830
359,831
22,324
—		 319,892
32,384
—		 715,444
43,717
—		 1,395,167
98,425
—
382,155 352,276 759,161 1,493,592
554,473 97,270 85,495 737,238
576,797 129,654 91,158 797,609

All fixed assets owned are used for direct charitable purposes.

The charitable company has adopted a policy of not revaluing its tangible fixed assets. The book value of freehold land and buildings is based on a valuation by Gerald Eve, Chartered Surveyors on November 26 1999 at open market value in accordance with The Royal Institution of Chartered Surveyors' Appraisal and Valuation Manual. This valuation of £700,000 has been incorporated in these financial statements with subsequent additions being included at cost.

The historical cost of freehold land and buildings included above at a valuation of £936,628 was £685,106 and the aggregate depreciation thereon would be £293,422.

7 Listed investments

The charitable company holds 372 shares in Lloyds Banking Group plc (2019: 372 shares) which is recorded at its market value of £124 on August 31 2020 (2019: £124).

Page 21

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

8 Debtors

Debtors
Fees receivable
Prepayments and accrued income
Other debtors		 2020
£
18,938
184,254
2,952		 2019
£
76,351
164,276
6,566
206,144 247,193

9 Creditors: amounts falling due within one year

Deposits refundable within one year
Payments for school fees received on account
Expense creditors
Taxation and social security costs
Other creditors
Accruals		 2020
£
56,500
353,272
109,345
57,359
34,868
29,469
640,813		 2019
£
51,500
463,880
93,897
49,907
27,546
22,628
709,358

Other creditors includes an amount of £34,868 (2019: £27,546) in respect of contributions due to pension schemes.

10 Creditors: Amounts falling due after more than one year

School fee deposits 2020
£
299,500		 2019
£
285,500

Page 22

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

11 Restricted funds

(a) The income funds of the School include restricted funds comprising the following balances:

At 1 September 2019
Incoming resources:
Donations received
Resources expended:
Capital expenditure
Depreciation
School activities
Asra Hawariat School
Transfers
At 31 August 2020		 Capital
Expenditure
fund
£
199,257

33,555
(69,469)


 Arts and
Sports fund
£
233,030
142,361
(1,259)

(26,682)

 Asra
Hawariat
School fund
£
2,277
764



(2,277)
 Music and
Theatre
fund
£
15,271

(4,750)



 Technology
Fund
£

50,000
(27,546)



 Art Display
Fund
£
5,000





 Total
£
454,835
193,125
—
(69,469)
(26,682)
(2,277)
163,343 347,450 764 10,521 22,454 5,000 549,532
At 1 September 2018
Incoming resources:
Donations received
Resources expended:
Capital expenditure
Depreciation
School activities
Asra Hawariat School
Transfers
At 31 August 2019		 Capital
Expenditure
fund
£
259,403

29,026
(89,172)


 Arts and
Sports fund
£
161,920
118,006


(55,599)

8,703		 Asra
Hawariat
School fund
£
1,734
2,807



(2,264)
 Music and
Theatre
fund
£

40,000
(24,729)



 Sports
Funds
£
13,000

(4,297)



(8,703)		 Art Display
fund
£
5,000





 Total
£
441,057
160,813
—
(89,172)
(55,599)
(2,264)
199,257 233,030 2,277 15,271 5,000 454,835

Page 23

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

11 Restricted funds continued

b) The Capital Expenditure Fund represents amounts used to purchase fixed assets for the School, from funds raised specifically for such a purpose, and also the annual depreciation charge each year on those assets.

The Arts and Sports Fund has been used partly to fund fixed assets in the past but is also to maintain and develop the School’s creative, musical, theatrical and sporting activities, with the majority of its funds being generated by the School’s Christmas Fair and Summer Auction.

Further music and art resources will be funded from Music and Theatre Fund and the Art Display Fund, and the main current focus is the upgrading of Technology, in the ICT room and classrooms.

The School also operates funds to support Asra Hawariat School.

12 Unrestricted funds

Unrestricted funds
These funds comprise:
Revaluation reserve
Accumulated surplus		 2020
£
162,784
981,284		 2019
£
167,824
688,474
1,144,068 856,298

The revaluation reserve arose on the revaluation of the freehold land and buildings in 1999, less the depreciation released to the Statement of financial activities.

The remaining unrestricted resources arise principally from the School’s day-to-day operations.

13 Analysis of net assets between funds

The fund balances at 31 August 2020 are represented by:

Fixed assets
Current assets
Current liabilities
Creditors: Amounts falling due after one year
Total net assets
Unrealised gains included above:
Unrealised gains at 1 September 2019
Realised in the year
Unrealised gains at 31 August 2020		 Restricted
funds
£
163,343
386,189
—
—		 Unrestricted
funds
£
574,019
1,510,362
(640,813)
(299,500)
1,144,068
Unrestricted
funds
£
167,824
(5,030)
162,784		 Total
£
737,362
1,896,551
(640,813)
(299,500)
549,532 1,693,600
Restricted
funds
£

 Total
£
167,824
(5,030)
162,784

Page 24

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

14 Pensions

Teachers’ Pensions

The School participates in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £265,587 (2019: £203,839) and at the year end £32,655 (2019: £25,606) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pensions Regulations 2010 (as amended) and the Teachers' Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The latest valuation report in respect of the TPS was prepared at 31 March 2016 and the valuation report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Page 25

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

14 Pensions (continued)

Teachers’ Pensions (continued)

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Under the definitions set out in section 17 of Financial Reporting Standard 102, the TPS is a multi-employer pension scheme. The charitable company is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, it has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The charitable company has set out above the information available on the scheme.

Other Pensions

Pension contributions are also paid to a contributory pension scheme for the benefit of non-teaching staff. In May 2015 the School started its auto-enrolment pension scheme with NEST for the benefit of all non-teaching staff. The assets of this scheme are held separately from those of the School in independently administered funds.

All pension contribution costs are recognised in the statement of financial activities as they become payable. The pension charge for the year includes contributions payable to NEST of £19,761 (2019: £14,371) and at the year end the amount due to the scheme was £2,012 (2019: £1,740). The statutory minimum contribution level increased in April 2019.

15 Capital commitments

There were capital commitments for items contracted for but not provided in the financial statements amounting to £nil (2019: £nil).

16 Other financial commitments

The future minimum lease payments due to the end of the relevant leases are as follows:

Operating leases payments due:
Within one year
Between 2 and 5 years
Greater than 5 years		 Plant and
Equipment
2020
£
2,494
1,554
—
4,048		 Plant and
Equipment
2019
£
2,493
4,024
—
6,517		 Land and
buildings
2020
£
267,768
455,000
—
722,768		 Land and
buildings
2019
£
266,886
715,000
—
981,886

Page 26

Sussex House School

Notes to the financial statements

for the year ended 31 August 2020

17 Financial Instruments

Financial assets that are debt instruments
Financial liabilities		 2020
£
2019
£
62,110
90,407
521,072
473,071

Financial assets measured at amortised cost comprise fees receivable, accrued income and other debtors.

Financial liabilities measured at amortised cost comprise deposits, expense creditors, pension contributions and expense accruals.

18 Related party transactions

N P Kaye is a trustee of the St Mary Magdalene Music Society which organises an annual series of recitals and concerts at St Mary Magdalene Church, Rowington Close, Little Venice, London W2. The School's pupils, parents and staff usually participate in three concerts a year (but just two this year due to the COVID 19 pandemic) which are sponsored by the charitable company but are also open to the general public. During the year the charitable company incurred expenditure on events at St Mary Magdalene Church of £23,975 (2019: £36,251) and received contributions of £8,000 (2019: £10,000) from the St Mary Magdalene Music Society towards this expenditure.

There were no donations to the charitable company from the Trustees.

19 Limitation of liability

The members of the charitable company guarantee to contribute an amount not exceeding £5 to the assets of the charitable company in the event of a winding up.

Page 27