Registered number: 03367515 Charity number: 1062507
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 7 |
| Independent Auditors' Report on the Financial Statements | 8 - 10 |
| Statement of Financial Activities | 11 |
| Balance Sheet | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Financial Statements | 14 - 29 |
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021
Trustees Mr D C du Celliee Muller Mr J H Richardson (resigned 16 September 2021) Mr J A B Ottewell Mr A M L Passmore (resigned 21 April 2021) Mr D E Bulger Mr C Crowley Company registered number 03367515 Charity registered number 1062507 Registered office 180 Ashbourne Road Derby DE22 3BH Company secretary Miss H N Radford Independent auditors Bates Weston Audit Ltd Statutory Auditors Chartered Accountants The Mills Canal Street Derby DE1 2RJ Bankers HSBC Bank Plc 1 St Peter's Street Derby DE1 2AE
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ROYAL SCHOOL FOR THE DEAF DERBY (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021
The Trustees present their annual report together with the audited financial statements for the year 1 September 2020 to 31 August 2021. The Trustees confirm that the Annual Report and financial statements of the company comply with current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
OBJECTIVES AND ACTIVITIES
Policies and objectives
The main objective of the charitable company is to promote the relief of children and young people who are deaf or whose hearing or speech is impaired, by furthering their education.
Strategies for achieving objectives
Accordingly, the charitable company is dedicated to the operation of an effective special school for deaf children and young people.
Activities for achieving objectives
Curriculum design which places the progress and experiences of children at the heart of everyday practice.
A clear vision for children and young people to:
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Have confidence in developing their own deaf identity and their sense of belonging;
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Feel safe, happy and cared for in an environment where all children are listened to, can express their views and are understood whatever their preferred communication;
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Be challenged to achieve their best through excellent teaching, a comprehensive curriculum and a wide variety of experiences from Early Years to 16 Plus;
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Work in an environment that encourages lifelong learning, and equips children and young people with the tools and skills to achieve;
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Be tolerant and inclusive, so all children and young people are able to build effective relationships based on empathy, friendship and respect;
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Have access to excellent communication support.
MAIN ACTIVITIES UNDERTAKEN TO FURTHER THE CHARITY'S PURPOSES FOR THE PUBLIC BENEFIT
The trustees confirm that they have paid due regard to the Charity Commission's guidance on public benefit, including the guidance contained in the document 'Public Benefit: Running a Charity (PB2)’.
ACHIEVEMENTS AND PERFORMANCE
Review of activities
The School continues to work towards its ambition to be the best provider of education and care to deaf children and young people. Its reputation in the field of deaf education is secure and endorsed by Ofsted Care. Despite a year complicated by coronavirus restrictions, residential provision was judged outstanding for the second year running in July 2021. Maintaining an outstanding care provision and consolidating the judgment across the entire provision is the next milestone.
A number of restricted and designated funds continue to make significant contributions to ensuring the health, wellbeing and progress of children and young people does not falter. Catch-up funding together with 16 to 19 funding for maths and English enabled every young person, no matter what their age or where they live, to receive the education, opportunities and outcomes they deserve. Efforts focused on measures proven to be
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ROYAL SCHOOL FOR THE DEAF DERBY (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
effective, particularly for those most disadvantaged. An audit of gaps, barriers to learning and trends specific to SEN learning needs directed funds to three main areas. Firstly, reducing any gaps in knowledge because of remote teaching and learning. Secondly, making sure children and young people have positive levels of wellbeing particularly around increased anxieties about friendships, life and death, socialising and school. Thirdly, lowering parental stresses which may lead to increased anxieties in children and young people.
Pupil premium and sports premium bolstered interventions and strategies already in place. Primary department chose to spend their fund on a new log cabin, their very own Forest School base on campus. A review of interventions provided by pupil premium funding demonstrates positive outcomes against all aims including, to encourage motivation, engagement and resilience, as well as support to ’bounce back’ from life’s challenges. All pupils were able to access group therapy and wellbeing as part of the curriculum for an identified amount of time. All pupils accessed group wellbeing sessions delivered by qualified deaf therapists in September with a particular focus on coronavirus. Data demonstrates interventions for reading, phonics and high frequency word development have enabled many CYP to catch up. Reading test data demonstrates improved reading and comprehension ages. Overall, the impact of coronavirus on reading skills is reducing. Further and better detail on the impact of all of the funds can be found under our general information tab here: www.rsdd.org.uk
A number of grants together with hard earned reserves allowed the big repair and renew plan to keep momentum. This summer featured roof repairs, modernising changing room facilities, a new campus wide fire system, a sensory floor and redecoration of some classrooms in secondary. Robust financial planning helped celebrate the school’s cultural capital with repairs to the original painting of Dr Roe founder of the School and outdoor fountain designed by Pope.
Last year trustees whole heartedly agreed with the wishes of children to lower the school’s carbon footprint and are now proud to report that all of the electricity used by the school comes from renewable sources. More plans to contribute to net zero are in future developments. In the meantime, trustees remain committed to realising the wishes of children and young people for an environmentally friendly, contemporary space to live and learn in.
FINANCIAL REVIEW
Trustees continue to celebrate the outstanding financial health of the school endorsed by key funding partners. Reserves targets are met in full. This affords further scope and independence to the governing body, senior leadership team, children and young people and wider stakeholders to have their say about longer term aspirations for the school. Financial sustainability and success continue to be driven by prudent spending, improved fee income as trust and confidence in the school flourishes, outstanding results from key regulators, a fairer fee structure and most of all, a qualified, competent, confident staff team with a relentless focus on the quality of provision.
This year the budget included a staffing contingency fund to ensure costs associated with the pandemic did not detract from resources available to teaching and learning and care. The fund was used to employ additional staff needed to implement control measures. It became evident from consultation with staff that additional resource was needed not only to keep staff and children and young people as safe as possible but also to make sure they felt as safe.as possible. Similarly, a contingency emergency health and safety fund buffered the cost of adaptations to the built environment together with child friendly cleaning products and resources.
Prospective pupil visits and assessments from new placing authorities are expanding the scope of the provision, adding to the number of commissioning authorities and, in turn, the diversity of the population of children and young people at the school. Continuous refinement to the assessment of a pupil’s need by a range of in-house experts provides a robust rationale for individualised placement fees, adding transparency to the fee structure and enabling the school to deliver the best outcomes for each learner and value for money.
Fee income and staff expenditure remain the two key financial indicators. Fee income enjoyed a boost with a number of new pupils joining in year. Staff expenditure remained in check due to substantial grants to the rising costs of employment brought about by continual increases in teacher pay and pension contributions. The rise in
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ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
income coupled with the fall in expenditure resulted in a healthy surplus. That said, trustees are mindful of diminishing grants to employment costs and maintain a keen eye on balancing income and expenditure through timely and accurate management reporting.
Essential campus repairs and routine maintenance represent substantial costs. Grants towards the ongoing maintenance of the premises were used effectively to offset planned expenditure.
As an educational charity the school is unable to reclaim VAT input tax on costs as we are exempt for tax purposes. We also pay tax as an employer through the national insurance contributions we make.
GOING CONCERN
After making appropriate enquiries, the trustees reasonably expect the Charity has sufficient resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
PRINCIPAL FUNDING
Pupil fees received from the Education and Skills Funding Agency and Local Authorities represent the largest part of incoming resources. In the year to 31 August 2021 amounting to 99% of total incoming resources.
RESERVES AND INVESTMENT POLICIES
The unrestricted funds shown on the balance sheet at the year end represent the free reserves of the charitable company. Trustees are pleased to see continued growth in the free reserves this year. Current reserves enable the School to respond independently to material fluctuations in its operating commitments.
Last year the school made rapid progress towards a reserves target of £0.9 - £1.3m in readily available reserves. The target is now met. Total reserves are £1,887,452 of which fixed assets are £1,819,699. After deducting fixed assets there is £52,702 of restricted funds remaining.
On 19 October 2021 the RSDD 2016 Property Trust merged with the RSD Derby School Trust adding significant resources. Synergy between the trusts was obvious from their outset. Both have strong governance, robust stewardship of funds, common purposes. Trustees are looking forward to bigger and bolder discussions with children, young people, their families, staff and other stakeholders about their long-term aspirations for the future of Royal School for the Deaf Derby.
Trustees follow a policy of maintaining the investment of the charity in readily realisable, low risk cash products. Investments are held in accordance with the trustees' powers. Investment & reserves policies are reviewed annually in conjunction with the appointed investment managers.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Constitution
The charitable company is a company limited by guarantee, governed by its Memorandum and Articles of Association and a Board of Governors. The Governors operate subject to a Scheme of Delegation approved by Trustees.
The charitable company operates Royal School for the Deaf Derby, a non maintained special school approved for the education of deaf and hearing impaired pupils aged 3 to 19.
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ROYAL SCHOOL FOR THE DEAF DERBY (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
Method of appointment or election of Trustees
The trustees of the charitable company constitute directors for Companies Act purposes. One third of trustees retire by rotation annually and may also be reappointed. The charitable company may otherwise by ordinary resolution appoint a trustee to either fill a casual vacancy or as an additional trustee. Appointment of additional trustees is subject to the unanimous approval of existing trustees who may seek out or advertise for additions to their number in order to enhance the skills and diversity of their Board.
The board of governors takes a strategic view of the school's policies and objectives. Progress and achievement in key functional and operational areas are subject to more detailed monitoring and evaluation by governors' committees that meet at least once per academic term. Discrete committees meet in addition to full board meetings and have responsibilities under the following headings: Resources (including Finance, Human Resources, Premises and Health & Safety) Pupil Wellbeing & Attainment
In addition to governor representation at these meetings, the chair of the governing body is invited to attend all trustee meetings. As well as general responsibilities, each governor is expected to have or adopt an area of special interest relevant to the school's operation and new governor recruitment is focused on the specialisms needed. The complement of the governing body is subject to annual ratification by trustees. The governors may co opt additional members to enhance any of the committee's capabilities. New governors benefit from an induction process, are encouraged to access training and support through the Derby City governor programme and development sessions provided by the School’s Improvement Officer tailored to the Governing Body’s strategic plans and the regulatory framework.
Organisational structure and decision making
Responsibility for the day to day organisation, management and control of the school lies with its senior leadership team (SLT) led by the Headteacher and is made up of a Deputy Headteacher Achievement, Deputy Head Care & Guidance and an Assistant Headteacher Early Years Foundation Stage/Primary. Staffing budgets are devolved to members of the SLT as set out in their role specifications. The Headteacher is a member of the SLT and has overall responsibility for managing the team and the running of the school. The performance management of the Headteacher is conducted by a specialist consultant together with the chair of the governing body. The performance management of other members of the leadership team is the responsibility of the Headteacher. Pay for members of the senior leadership team has been set on the advice of an external consultant, having reference to the School Teachers' Pay and Conditions Document England & Wales. The pay of teaching staff is set by reference to the same Document and the pay of non teaching staff ordinarily determined by reference to the Pay Scales and Allowances of the National Joint Council for Local Government Services together with accepted practice in the sector. In all cases pay is tied to performance through performance management activities.
RISK MANAGEMENT
Governors and Trustees review the risks facing the school by taking on the role of critical friends, monitoring the quality of teaching and learning, school self-assessment and development plans, pupil attainment and wellbeing, safeguarding, income and expenditure, movements in restricted funds, cash flow forecasts, key financial indicators, annual budgets. An at a glance overview is provided to trustees via a balanced scorecard. It gives a comprehensive overview of performance across all functions identified in the Scheme of Delegation to determine levels of autonomy in the decision making structure. Individual governors are assigned to scrutinise and report on particular operational risk areas through the Committees listed above.
Health and Safety issues are a permanent feature of the Resources Committee Agenda. The declaration of any conflicts of interest is required before the start of all Trustee, Governor and Committee meetings.
Alleged or suspected material safeguarding issues are a rolling agenda item at all trustee and governing body meetings and initially reviewed in detail by the Pupil Wellbeing and Attainment Committee. There is a
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ROYAL SCHOOL FOR THE DEAF DERBY (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
safeguarding team comprised of qualified and competent members of school staff led by the Deputy Head Care & Guidance who is the Designated Safeguarding Lead line managed by the Headteacher. Safeguarding policy and practice is scrutinised by a dedicated safeguarding governor. Governors ensure that one of their number always acts as Safeguarding Governor and receives appropriate training.
Long term financial health is intimately tied to the maintenance and development of pupil numbers at suitable fee levels. The Headteacher and Finance Committee are required to pay particular attention to this need.
The school is a member of the National Association of Special Schools, a body representing the interests of non maintained and independent special schools. It also works closely with Derby City Council in addressing issues of mutual interest in the arena of the provision and development of special education for deaf learners.
PLANS FOR FUTURE PERIODS
Future developments
The next milestone in the School’s aspiration to be an outstanding provider is to mirror the Ofsted Care judgement at its next Ofsted Education visit. The school plans to showcase its curriculum designed to place the experiences, progress and achievements of children and young people at the heart of everyday practice.
As the population of children and young people at the school becomes increasingly diverse the importance of a broad, deep, rich curriculum grows. The school has tasked itself with developing a curriculum capable of championing its diversity, building “life ready” skill sets and knowledge so every young person leaves with the know-what and know-how to enjoy adult life. Evidence based approaches informed by research and knowledge of individual learners continue to direct school led tutoring and recovery premium grants.
Projects to enhance the experiences of children and young people and add value for money to placement fees at no additional cost to placing partners continue. A whole school move to using LED lights, pro-active roof maintenance and a more efficient heating system are planned for summer 2022. The school’s designated children’s fund is expected to play an increasingly important role in providing essential items such as school uniform, contributing to travel costs and educational trips and visits for children and young people from families who are struggling financially.
The school is excited about the gift of the Roe Memorial fund and its purpose, to support the welfare, social and recreational needs of adult Deaf people. The school community is buzzing with ideas to welcome the wider Deaf community back on campus. Ideas include an RSD Derby show home venue for deaf events led by Post 16 enterprise initiatives, British Sign Language and Deaf Awareness courses and a hub to launch literacy and numeracy delivered by qualified teachers of the Deaf to Deaf people. A significant legacy is anticipated to help realise these ideas once consensus is reached.
The RSDD 2016 Property Trust decided to merge into Royal School for the Deaf Derby during the year. At the time of writing this report the merge is complete. The strengths of each trust combined enhance resources available to provide the very best preparation for adulthood for deaf children and young people.
Trustees' responsibilities statement
The Trustees (who are also directors of Royal School for the Deaf Derby for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees 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 the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial
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ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and, hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DISCLOSURE OF INFORMATION TO AUDITORS
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.
Approved by order of the members of the board of Trustees on 14 January 2022 and signed on their behalf by:
Mr J A B Ottewell
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ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROYAL SCHOOL FOR THE DEAF DERBY
Opinion
We have audited the financial statements of Royal School for the Deaf Derby (the 'charity') for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
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ROYAL SCHOOL FOR THE DEAF DERBY (A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROYAL SCHOOL FOR THE DEAF DERBY (CONTINUED)
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
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.
Auditors' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is
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ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROYAL SCHOOL FOR THE DEAF DERBY (CONTINUED)
detailed below:
Based on our understanding of the charity and sector in which it operates, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included:
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Enquiry of management around actual and potential litigation and claims;
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
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Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
Wayne Thomas ACA (Senior Statutory Auditor)
for and on behalf of Bates Weston Audit Ltd Statutory Auditors Chartered Accountants The Mills Canal Street Derby DE1 2RJ
8 March 2022
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ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021
| Note Income from: Donations and legacies 2 Charitable activities 3 Other income Total income Expenditure on: Charitable activities 4 Total expenditure Net income Transfers between funds 13 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £ 16,370 4,608,617 5,275 4,630,262 4,162,959 4,162,959 467,303 16,311 483,614 1,037,358 483,614 1,520,972 |
Restricted funds 2021 £ - 327,980 - 327,980 314,964 314,964 13,016 (16,311) (3,295) 394,774 (3,295) 391,479 |
Total funds 2021 £ 16,370 4,936,597 5,275 4,958,242 4,477,923 4,477,923 480,319 - 480,319 1,432,132 480,319 1,912,451 |
Total funds 2020 £ 5,799 4,603,486 7,460 |
|---|---|---|---|---|
| 4,616,745 | ||||
| 4,190,930 | ||||
| 4,190,930 | ||||
| 425,815 - |
||||
| 425,815 | ||||
| 1,006,317 425,815 |
||||
| 1,432,132 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 14 to 29 form part of these financial statements.
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ROYAL SCHOOL FOR THE DEAF DERBY (A Company Limited by Guarantee) REGISTERED NUMBER: 03367515
BALANCE SHEET AS AT 31 AUGUST 2021
| Note Fixed assets Tangible assets 8 Investments 9 Current assets Debtors 10 Investments 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Total net assets Charity funds Restricted funds 13 Unrestricted funds 13 Total funds |
155,401 51,210 265,717 472,328 (379,576) |
2021 £ 564,987 1,254,712 1,819,699 92,752 1,912,451 391,479 1,520,972 1,912,451 |
294,971 201,144 289,075 785,190 (532,677) |
2020 £ 571,921 607,698 |
|---|---|---|---|---|
| 1,179,619 252,513 |
||||
| 1,432,132 | ||||
| 394,774 1,037,358 |
||||
| 1,432,132 |
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Mr J A B Ottewell
Date: 14 January 2022
The notes on pages 14 to 29 form part of these financial statements.
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ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Purchase of tangible fixed assets Net cash (used in)/provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 14 to 29 form part of these financial statements |
2021 £ 497,716 (23,994) (23,994) 473,722 1,097,917 1,571,639 |
2020 £ 146,388 |
|---|---|---|
| - | ||
| - | ||
| 146,388 951,529 |
||
| 1,097,917 | ||
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ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Royal School for the Deaf Derby meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
1.2 Company status
The Charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charity.
1.3 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.
For legacies, entitlement is taken as the earlier of the date on which either: the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the Charity, or the Charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Pupil fee income represents fees invoiced to Local Authorities for educational purposes supplied during the year and recognised in the period to which it relates, together with "core" pupil funding from the Educational and Skills Funding Agency, recognised when it is received.
The charitable company also receives grants for educational purposes resulting from initiatives by the Department for Education and Skills.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the school. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
1.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure on charitable activities includes the cost of education activities undertaken to further the Charity's objectives, as well as any associated support costs.
Page 14
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1. Accounting policies (continued)
1.4 Expenditure (continued)
All expenditure is inclusive of irrecoverable VAT.
1.5 Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
1.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Leasehold property includes the cost of any building improvements to leased land.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
| Leasehold property | - 50 years |
|---|---|
| Motor vehicles | - 4 years |
| Fixtures and fittings | - 5 years |
1.7 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.
1.8 Operating leases
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.
Page 15
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1. Accounting policies (continued)
1.9 Pensions
The School participates in a multi employer defined benefits pension scheme, "The Teachers' Pension Scheme (England and Wales)", for its teachers. As a result it is not possible or appropriate to identify the assets and liabilities of the Scheme which are attributable to the School. In accordance with Financial Reporting Standard 102 therefore, the Scheme is accounted for as a defined contribution scheme. The Scheme is managed by the Department of Education.
The charity operates a defined contributions arrangement for its non-teaching staff in terms of group personal pension plans.
Contributions to both schemes are charged in the Statement of financial activities (incorporating income and expenditure account) as they become payable in accordance with the rules of the Scheme.
1.10 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
2. Income from donations and legacies
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2021 | 2021 | 2020 | |
| £ | £ | £ | |
| Donations | 16,370 | 16,370 | 5,799 |
Page 16
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
3. Income from charitable activities
| Unrestricted funds 2021 £ Pupil fee income 3,169,696 Grants - Government grants 1,438,921 Total 2021 4,608,617 Total 2020 4,485,364 |
Restricted funds 2021 £ - 65,687 262,293 327,980 118,122 |
Total funds 2021 £ 3,169,696 65,687 1,701,214 4,936,597 4,603,486 |
Total funds 2020 £ 3,094,067 153,310 1,356,109 |
|---|---|---|---|
| 4,603,486 | |||
Government grants received support the provision of education to pupils.
4. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2021 £ Staffing costs 3,049,976 Education and pupil support costs 372,166 Campus and property costs 499,226 Administration costs 189,799 Governance costs 51,792 4,162,959 Total 2020 4,077,236 |
Restricted funds 2021 £ 43,554 - 271,410 - - 314,964 113,694 |
Total funds 2021 £ 3,093,530 372,166 770,636 189,799 51,792 4,477,923 4,190,930 |
Total funds 2020 £ 2,992,530 384,912 546,053 211,258 56,177 |
|---|---|---|---|
| 4,190,930 | |||
Page 17
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
4. Analysis of expenditure on charitable activities (continued)
Summary by expenditure type
| Staffing costs Education and pupil support costs Campus and property costs Administration costs Governance costs Total 2020 |
Staff costs 2021 Depreciation 2021 £ £ 2,990,516 - - - - 27,197 - - - - 2,990,516 27,197 2,903,126 30,791 |
Other costs 2021 £ 103,014 372,166 743,439 189,799 51,792 1,460,210 1,257,013 |
Total funds 2021 £ 3,093,530 372,166 770,636 189,799 51,792 4,477,923 4,190,930 |
Total funds 2020 £ 2,992,530 384,912 546,053 211,258 56,177 |
|---|---|---|---|---|
| 4,190,930 | ||||
5. Auditors' remuneration
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Auditors' remuneration | 8,700 | 8,500 |
| Fees payable to the Charity's auditor in respect of: | ||
| Non-audit services | 6,600 | 8,000 |
6. Staff costs
| Wages and salaries Social security costs Other pension costs |
2021 £ 2,499,772 213,544 277,200 2,990,516 |
2020 £ 2,436,665 202,854 263,607 |
|---|---|---|
| 2,903,126 |
Page 18
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
6. Staff costs (continued)
The average number of persons employed by the Charity during the year was as follows:
| Academic Residential care Learning support Corporate & technical services |
2021 26 11 46 29 112 |
2020 27 12 48 31 |
|---|---|---|
| 118 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2021 | 2020 | ||
|---|---|---|---|
| No. | No. | ||
| In the band £70,001 | - £80,000 | 1 | 1 |
Key management personnel during the year comprised the Senior Leadership Team who received total remuneration and benefits of £275,739 (2020 - £267,757).
7. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .
During the year ended 31 August 2021, no Trustee expenses have been incurred (2020 - £NIL) .
8. Tangible fixed assets
| Cost At 1 September 2020 Additions At 31 August 2021 |
Long-term leasehold property £ 609,195 - 609,195 |
Motor vehicles £ 79,150 - 79,150 |
Fixtures and fittings £ 1,538,879 23,994 1,562,873 |
Total £ 2,227,224 23,994 |
|---|---|---|---|---|
| 2,251,218 |
Page 19
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
8. Tangible fixed assets (continued)
| Depreciation At 1 September 2020 Charge for the year At 31 August 2021 Net book value At 31 August 2021 At 31 August 2020 9. Fixed asset investments Valuation At 1 September 2020 Additions At 31 August 2021 |
Long-term leasehold property £ 98,801 12,184 110,985 498,210 510,394 |
Motor vehicles £ 79,150 - 79,150 - - |
Fixtures and fittings Total £ £ 1,477,352 1,655,303 18,744 30,928 1,496,096 1,686,231 66,777 564,987 61,527 571,921 Cash held on long-term deposits £ 607,698 647,014 1,254,712 |
Total £ 1,655,303 30,928 |
|---|---|---|---|---|
| 1,686,231 | ||||
| 564,987 | ||||
| 571,921 | ||||
| 1,254,712 |
Page 20
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
10. Debtors
| Trade debtors Due from connected charity Other debtors Prepayments and accrued income |
2021 £ 31,575 33,670 - 90,156 155,401 |
2020 £ 180,418 36,874 81 77,598 |
|---|---|---|
| 294,971 |
11. Current asset investments
| Cash on deposit Creditors: Amounts falling due within one year Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 September 2020 Resources deferred during the year Amounts released from previous periods Deferred income as at 31 August 2020 |
2021 £ 51,210 2021 £ 45,644 48,266 20,548 265,118 379,576 2021 £ 161,709 184,216 (161,709) 184,216 |
2020 £ 201,144 |
|---|---|---|
| 2020 £ 235,114 46,211 9,665 241,687 |
||
| 532,677 | ||
| 2020 £ 230,775 161,709 (230,775) |
||
| 161,709 |
12. Creditors: Amounts falling due within one year
Deferred income includes fees charged for pupils of £83,470, ESFA grant funding totaling £98,467 and other income of £2,279.
Page 21
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
13. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds Children's Fund Fundraising Tuck Shop General funds General funds Total Unrestricted funds Restricted funds Leasehold Building Funds Greggs Devolved Capital Grant NMSS Maintenance Grant Pupil Premium Receipts Sports Premium Grant Greggs Hamper Fund Roe Memorial European Visits Fund Careers Local Covid Catch Up Funding Moscow Bilingual Sponsorship 5 aside Free School Meals Bursary 17-18 Foundation Derbyshire Duke of Edinburgh 2016 RSDD Property Trust |
Balance at 1 September 2020 £ 5,016 2,375 326 7,717 1,029,641 1,037,358 338,298 1,250 22,332 - 12,760 6,864 - - 6,716 - - - 5,430 - - 1,124 - - |
Income £ - 10,350 784 11,134 4,619,128 4,630,262 - 1,000 21,527 127,405 60,405 16,300 3,000 34,687 1,250 4,500 27,600 - - 1,761 2,795 - 750 25,000 |
Expenditure £ (627) (11,075) (684) (12,386) (4,150,573) (4,162,959) (8,454) (1,433) (34,926) (127,405) (72,165) (5,859) (3,000) - (93) (4,500) (27,600) - - - (2,795) (1,124) (610) (25,000) |
Transfers in/out £ - (1,650) - (1,650) 17,961 16,311 - - - - - (16,200) - - - - - 1,650 - (1,761) - - - - |
Balance at 31 August 2021 £ 4,389 - 426 |
|---|---|---|---|---|---|
| 4,815 | |||||
| 1,516,157 | |||||
| 1,520,972 | |||||
| 329,844 817 8,933 - 1,000 1,105 - 34,687 7,873 - - 1,650 5,430 - - - 140 - |
Page 22
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
13. Statement of funds (continued)
Statement of funds - current year (continued)
| Balance at 1 | Balance at | |||||
|---|---|---|---|---|---|---|
| September | Transfers | 31 August | ||||
| 2020 | Income | Expenditure | in/out | 2021 | ||
| £ | £ | £ | £ | £ | ||
| 394,774 | 327,980 | (314,964) | (16,311) | 391,479 | ||
| Total of funds | 1,432,132 | 4,958,242 | (4,477,923) | - | 1,912,451 | |
| Statement of funds - prior | year | |||||
| Balance at | Balance at | |||||
| 1 September | Transfers | 31 August | ||||
| 2019 | Income | Expenditure | in/out | 2020 | ||
| £ | £ | £ | £ | £ | ||
| Unrestricted funds | ||||||
| Designated funds | ||||||
| Children's Fund | 5,016 | - | - | - | 5,016 | |
| Fundraising | 369 | 2,555 | (549) | - | 2,375 | |
| Tuck Shop | 266 | 919 | (859) | - | 326 | |
| 5,651 | 3,474 | (1,408) | - | 7,717 | ||
| General funds | ||||||
| General funds | 609,701 | 4,385,228 | (3,965,907) | 619 | 1,029,641 | |
| Total Unrestricted funds | 615,352 | - | (3,967,315) | 619 | 1,037,358 | |
| Restricted funds | ||||||
| Leasehold Building Funds | 346,752 | - | (8,454) | - | 338,298 | |
| Greggs | - | 1,250 | - | - | 1,250 | |
| Devolved Capital Grant | 20,862 | 8,016 | (6,546) | - | 22,332 | |
| NMSS Maintenance Grant | - | 42,271 | (42,271) | - | - | |
| Pupil Premium Receipts | 6,385 | 45,314 | (38,939) | - | 12,760 | |
| Sports Premium Grant | 2,008 | 16,320 | (11,464) | - | 6,864 |
Page 23
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
13. Statement of funds (continued)
Statement of funds - prior year (continued)
| European Visits Fund Sponsorship 5 aside Free School Meals Bursary 17-18 Foundation Derbyshire Total of funds |
Balance at 1 September 2019 £ 7,960 5,430 - - 1,568 390,965 1,006,317 |
Income £ 1,900 - 619 2,432 - 118,122 118,122 |
Expenditure £ (3,144) - - (2,432) (444) (113,694) (4,081,009) |
Transfers in/out £ - - (619) - - (619) - |
Balance at 31 August 2020 £ 6,716 5,430 - - 1,124 |
|---|---|---|---|---|---|
| 394,774 | |||||
| 1,432,132 |
The designated Children's Fund arises from individual unrestricted donations received by the charitable company that are used in the support of pupils in situations of hardship and for the provision of items for residential pupils not normally funded through local authority fees.
The Leasehold buildings fund represents the grant funding received towards the cost of two campus buildings (the Beddoes Science Lab and the Karten Building) less apportioned accumulated depreciation to date. During the year ended 31 August 2016 the cost of the Karten Building was transferred to the charitable company from Derby College for the Deaf People together with the remaining balance of associated restricted funding and liabilities.
The minibus sponsors represent donations from the Variety Club and Lords Taverners Funds towards the cost of two new school minibuses purchased during the year ended 31 August 2016, less depreciation charged.
The closing balance on the DfE Devolved Capital Grant represents the cost of qualifying additions to buildings and equipment less depreciation charges to date.
The NMSS Maintenance Grant is received from the DfE as a contribution towards the upkeep of the premises on non-maintained special schools.
Pupil Premium funding is received from local authorities to be applied towards the educational benefit of named disadvantaged learners.
The Sport Premium Fund is the unexpired portion of an ESFA Grant received for the benefit of sporting activities in the school's Primary Department.
The Careers local grant allowed young people to access a range of extra curricular opportunities to enhance their life choices and ensure the best possible transition into employment, further education or training programmes.
Page 24
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
The balance of the European Educational Visits Fund is the unused portion of British Council funding for European pupil exchange visits, carried forward to future
National Lottery was a grant towards ongoing celebrations of the school’s 125th anniversary and the shared language, culture, heritage and experiences of Deaf children and adults in the wider community
The MUGA was a successful application to Sports England for an Exchequer Award of £25,832 together with funding from a number of grants namely the Garfield Weston Foundation, the Beatrice Laing Foundation, Healthy Pupils grant and the Peter Harrison Foundation enabled the School to match the Exchequer Award and build an outside all weather Multi Use Games Area (MUGA) to be enjoyed by children and young people of all ages across the school. The facility can also be shared with the wider community including other schools and groups.
The Free School Meals Grant has been used to mitigate the cost of providing food for appropriately aged pupils in the school's Primary Department.
The Bursary Fund is received from the ESFA to assist needy Post 16 learners with their course expenses and is distributed at the school's discretion.
The UPS fund is where the School successfully bid for a grant to modernise the common room and kitchen enjoyed by young people in the Post 16 department.
The RSDD Property Trust was a generous donation towards the repair and upgrade of the School’s IT infrastructure to allow further improvements to IT literacy and teaching and learning in all subject areas for all children and young people.
The Greggs Hamper Fund provides festive food hampers to support families over the Christmas holidays.
The Roe Memorial Fund supports the welfare, social and recreational needs of adult deaf people.
The COVID Catch-up Premium fund supports children and young people to catch up on missing learning caused the coronavirus (COVID-19). This is especially important for the most vulnerable pupils and pupils from disadvantaged backgrounds who we know have been most affected.
The Moscow Bilingual fund supports families of deaf children to develop sign language skills.
The Sponsorship five-a-side Fund is the provision of five-a-side facilities and tutoring for the community.
The Universal Infant Free School Meals Fund is the provision of free school meals in reception, year 1 and year 2.
The 16-19 Bursary Fund is to support eligible young people with costs associated with their chosen course of study for example, clothing, books, equipment and transport.
The Foundation Derbyshire Fund is the provision of school wide mental health initiatives and workshops.
The Duke of Edinburgh's Award Sylvia Waddilove Foundation Fund is to support children and young people in gaining their Duke of Edinburgh's medals through the provision of outdoor equipment and expedition costs.
Page 25
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
14. Summary of funds
Summary of funds - current year
| Designated funds General funds Restricted funds |
Balance at 1 September 2020 £ 7,717 1,029,641 394,774 1,432,132 Balance at 1 September 2019 £ 5,651 609,701 390,965 1,006,317 |
Income £ 11,134 4,619,128 327,980 4,958,242 Income £ 3,474 4,385,228 118,122 4,506,824 |
Expenditure £ (12,386) (4,150,573) (314,964) (4,477,923) Expenditure £ (1,408) (3,965,907) (113,694) (4,081,009) |
Transfers in/out £ (1,650) 17,961 (16,311) - Transfers in/out £ - 619 (619) - |
Balance at 31 August 2021 £ 4,815 1,516,157 391,479 |
|---|---|---|---|---|---|
| 1,912,451 | |||||
| Balance at 31 August 2020 £ 7,717 1,029,641 394,774 |
|||||
| Summary of funds - prior year | |||||
| Designated funds General funds Restricted funds |
|||||
| 1,432,132 |
15. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2021 £ Tangible fixed assets 226,210 Fixed asset investments 1,254,712 Current assets 404,714 Creditors due within one year (364,664) Total 1,520,972 |
Restricted funds 2021 £ 338,777 - 67,614 (14,912) 391,479 |
Total funds 2021 £ 564,987 1,254,712 472,328 (379,576) |
|---|---|---|
| 1,912,451 |
Page 26
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
15. Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
| Unrestricted funds 2020 Restricted funds 2020 £ £ Tangible fixed assets 223,533 348,388 Fixed asset investments 607,698 - Current assets 723,123 62,067 Creditors due within one year (516,996) (15,681) Total 1,037,358 394,774 16. Reconciliation of net movement in funds to net cash flow from operating activities 2021 £ Net income for the year (as per Statement of Financial Activities) 480,319 Adjustments for: Depreciation charges 30,928 Movement in debtors 164,570 Movement in creditors (153,101) Net cash provided by operating activities 522,716 17. Analysis of cash and cash equivalents 2021 £ Cash in hand 265,717 Investments 1,305,922 Total cash and cash equivalents 1,571,639 |
Total funds 2020 £ 571,921 607,698 785,190 (532,677) 1,432,132 2020 £ 425,815 34,522 (170,164) (143,785) 146,388 2020 £ 289,075 808,842 1,097,917 |
|---|---|
Page 27
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
18. Analysis of changes in net debt
| Cash at bank and in hand Cash held on long-term deposits Cash equivalents |
At 1 September 2020 £ 289,075 607,698 201,144 1,097,917 |
Cash flows At 31 August 2021 £ £ (23,358) 265,717 647,014 1,254,712 (149,934) 51,210 473,722 1,571,639 |
Cash flows At 31 August 2021 £ £ (23,358) 265,717 647,014 1,254,712 (149,934) 51,210 473,722 1,571,639 |
|---|---|---|---|
| 1,571,639 |
19. Pension commitments
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers' Pension Scheme Regulations 2014. Membership is automatic for full-time teachers and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.
The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The pension charge for the year includes contributions payable to the TPS of £221,910 (2020 - £209,596). At the year-end £20,206 (2020 - £9,665) was accrued in respect of contributions to this scheme. The Charity also runs a scheme for its non-teaching staff under which defined contributions are paid into a group personal pension arrangement. The cost for the year represents the School's contributions to that Scheme of £55,290 (2020 - £54,011).
VALUATION OF THE TEACHERS' PENSION SCHEME
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:
-
employer contribution rates set at 23.68% of pensionable pay, including a 0.08% employer administration charge
-
total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million giving a notional past service deficit of £22,000 million;
-
an employer cost cap of 10.9% of pensionable pay will be applied to future valuations; and
Page 28
ROYAL SCHOOL FOR THE DEAF DERBY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
19. Pension commitments (continued)
- the assumed real rate of return is 2.8% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return is 4.45%.
The TPS valuation for 2016 determined an employer rate of 23.68%, which was payable from 1 September 2019.
A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.
Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has set out above the information available on the scheme.
20. Operating lease commitments
At 31 August 2021 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years |
2021 £ 15,937 7,895 23,832 |
2020 £ 15,563 15,696 |
|---|---|---|
| 31,259 |
21. Related party transactions
Mr D C du Celliee Muller and Mr J H Richardson were also trustees of RSDD 2016 Property Trust during the year. £25,000 was granted to the School during the year and is included within debtors as due from the connected charity.
22. Post balance sheet events
On 19 October 2021, the School merged with the connected charity, RSDD 2016 Property Trust (Charity Number: 1166083). The transfer of the connected charity's assets and liabilities will be reflected in the financial year ended 31 August 2022. There is no impact on the financial statements of the School for the year ended 31 August 2021.
23. Controlling party
The Trustees consider there to be no ultimate controlling party.
Page 29