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2021-08-31-accounts

Company Registration No. 3411518 (England and Wales) Charity registration No: 1063738

St John’s School, Northwood

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

Report and financial statements For the year ended 31[st] August 2021

St John’s School Northwood

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

Contents

Pages
Governors and company information 1-2
Governors’ report 3-11
Independent auditors’ report 12-15
Statement of financial activities 16
Balance sheet 17
Statement of cash flows 18
Accounting policies 19-22
Notes to financial statements 23-34

St John’s School Northwood

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

Governors and company information

Governors Lady P A Harding Chairman (resigned 31stAugust 2021)
The Governors of St John’s School Mrs L Cavanagh
are directors of the Charitable Company Mr S Everson
and trustees of the Charity. Mrs E K Fenwick
Mr J C Fowler
Mr P R Henson
Mr P R MacDougall
Mr M A L Robb Chair (1stSeptember 2021)
Mr R A D Sullivan
Mrs N Walker
The Headmaster Mr M S Robinson, BSc
Bursar Mr N E Stone MA
Company secretary Mr N E Stone MA
Registered office Potter Street Hill
Northwood
Middlesex
HA6 3QY
Registered numbers Company registration number: 3411518
Charity registration number: 1063738
Auditors Saffery Champness LLP
71 Queen Victoria Street
London
EC4V 4BE
Bankers Barclays Bank Plc
62-64 High Street
Watford
Herts
WD17 2BT
Solicitors Charles Russell Speechly
5 Fleet Place
London
EC4M 7RD

Page 1

St John’s School Northwood

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

Governors and company information (continued)

Insurance brokers
 Marsh Limited
Capital House
1-5 Perrymount Road
Haywards Heath
West Sussex
RH16 3SY
Investment fund managers Rathbone Brothers Plc
8 Finsbury Circus
London
EC2M 7AZ

Page 2

St John’s School Northwood (A company limited by guarantee and not having a share capital)

Governors’ report

The Governors of St John’s School present their annual report and audited financial statements of the Charity for the year ended 31 August 2021. The financial statements comply with the Companies Act 2006, Charities Act 2011, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102).

The Strategic Report comprises the risk management, charitable objects, review of achievements and performance for the year and the reserves policy on pages 3 to 11.

Reference and administrative information

St John’s School was founded in 1920, purchased by the Merchant Taylors’ Company in 1984 and was registered as a charity under the umbrella of the Merchant Taylors’ Educational Trust charity number 310018.

On 1[st] August 1997 the School was incorporated as a private company limited by guarantee and was registered as a charity in its own right. The School took over the business and assets and liabilities of St John’s School, Northwood from the unincorporated body on 1[st] August 1997 and commenced business in its own right from that date.

Structure, governance and management

Governing document

St John’s School is governed by its revised Articles of Association dated 28[th] June 2018.

Recruitment and training of Governors

The Board of Governors shall consist of not less than six but (unless otherwise determined by Ordinary Resolution of the Company) no more than twenty persons appointed from time to time by Ordinary Resolution of the Company or by notice in writing to the Company signed by a majority of the Members of the Company. All new governors are given a copy of the Articles of Association, a tour of the School and a Trustees’ induction pack outlining trustees’ responsibilities. All Governors have also been provided with a handbook – “Governors’ Guidelines” obtained from the Association of Governing Bodies of Independent Schools (AGBIS). Specific training is also provided by the Merchant Taylors’ Educational Trust.

Organisational Management

The St John’s School Governors, as trustees of the Charity, are legally responsible for the overall conduct and control of the School. The work of monitoring financial performance is carried out by members of the Finance Sub Committee, who meet three times a year where the audited accounts are reviewed prior to being approved by the Governors. The Finance Sub Committee works under the chairmanship of Mr P R Henson. The day to day management of the School is delegated to the Headmaster, assisted by the Bursar and the full Senior Leadership Team. The Senior Leadership Team comprises the positions of: Headmaster, Bursar, Deputy Heads (Pastoral and Academic), Pre Prep and Junior Department Heads, Senior Master, and Head of Communications.

Page 3

St John’s School Northwood (A company limited by guarantee and not having a share capital)

Governors’ report (continued)

Group structure and relationships

St John’s School Northwood is connected through common interests and ‘outsourced’ administration and payroll services to Merchant Taylors’ School, a company limited by guarantee and a separate registered charity. The Merchant Taylors’ School charity can be contacted at Sandy Lodge, Northwood, Middlesex, HA6 2HT. The Merchant Taylors’ Company, a City of London Livery Company, is the landlord of the property from which St John’s School operates.

Risk Management

A Risk Management Sub Committee, chaired by a Governor, meets annually to review the Risk Register and allocate responsibilities. The measurement of a risk is undertaken by calculating a Risk Factor derived from likelihood of the risk occurring and its likely impact. The School has developed systems to monitor and control these risks and to mitigate any impact that they may have on the School’s future.

The Risk Register is then presented to the full Governors’ Committee (Board of Directors) for comment and agreement. Each Governor is provided with a copy of the Risk Register and this is then reviewed at each relevant Sub Committee for assigned ‘actions’ with any amendments and/or new risks reported appropriately and amended/included within the Risk Register. Risk Management is an agenda item for each Sub Committee within the framework of the agreed Governance structure.

The Board of Directors is responsible for the management of the risks faced by the School, and has reviewed the major risks and measures for mitigation as part of an annual process.

Key controls used by the School include:

A Governance structure is in place and reviewed regularly with the Chairman of Governors. This structure involves Governors in specific areas of the School’s governance.

Charitable objects

The Charity’s Objects, as set out in its Articles of Association, are to ‘advance education by providing and maintaining in the UK or elsewhere a boarding or day school or schools for the education of children or young persons’.

In planning School activities for the year to meet St John’s charitable objectives, the Governors have complied with their duties in Section 4 of the Charities Act 2011 and have considered the Charity Commission’s general guidance on public benefit.

Page 4

St John’s School Northwood (A company limited by guarantee and not having a share capital)

Governors’ report (continued)

Aims and intended impact

The St John’s School’s aim is to benefit the public by providing a first class education independent of the State system. St John’s provides this education in a civilised environment and values breadth of achievement as much as success at the highest level.

Of greatest importance is that boys grow to be independent and free-thinking members of a diverse community and that, as they progress through the School, they develop confidence, the essential skills for life at senior school and a set of positive and morally secure values that will provide a base from which to meet the challenges of a changing world.

St John’s intends that pupils at the School are happy, considerate of the needs of others and feel that they are recognised as important and unique members of an exceptional organisation. St John’s provides an environment where each pupil can develop and fulfil his potential. Pupils are supported and encouraged, through the provision of the highest quality of academic tuition and involvement in a wide ranging sports programme, and development of their artistic and social skills to meet this objective.

St John’s welcomes pupils from all backgrounds and admittance is based on an assessment of whether the School will be able to educate and develop a pupil to the best of his potential and to a standard similar to that of his peers. An individual’s economic status, ethnicity, race, religion or disability does not form part of the assessment process.

Objectives for the year

In the financial year under review the focus has been on:

Next year the objectives will be:

Page 5

St John’s School Northwood (A company limited by guarantee and not having a share capital)

Governors’ report (continued)

Strategies to achieve the year’s objectives

St John’s strategy aims to achieve the highest academic performance commensurate with cultivating a well-rounded development of each pupil and to widen public access to the School within the constraints of the funding as an independent education provider. With the provision of the latest computers, the educational benefits and development of technology based teaching will be an important tool. The teaching programme will include a rounded PHSCEE scheme of work to help each child develop as a wellrounded person who can appreciate others and look after themselves. The pastoral system is in place to support each individual. More staff are now trained in mindfulness. All pupils will be given the opportunity to take part in a range of co-curricular activities including music, drama, sport, technology and to participate in charitable activities.

Principal activities in the year

The Company’s principal activity during the year was that of an independent preparatory school for boys. This year the maximum permitted number of pupils was 350 boys. There continues to be excess demand for places at each entry point.

Review of achievements and performance for the year

General review and operational performance of the School

Leavers were able to complete their senior school entrance examinations, mostly taking through online assessments. All twenty-nine Year 8 boys gained places at their choice of school. In September 2021 seventeen will be going to Merchant Taylors’, five to Haberdashers’, three to John Lyon, two to Aldenham, one to Mill Hill and one to St Alban’s. This was an outstanding year with fourteen Year 8 leavers receiving Scholarships. Eleven boys achieved fourteen Academic Scholarships, including four to Merchant Taylors’, five to Haberdashers’ and five to John Lyon. Four boys achieved the following scholarships for Merchant Taylors’: one for Art, two for Design and Technology and one for Sport. These results highlight the allround progress boys make at St John’s. The Year 8 boys’ results in the Merchant Taylors’ School examinations were once again impressive.

For the second time the majority of Year 6 sat the ‘new’ 11+ entry process for Merchant Taylor’s 13+ entry. Twenty-two have received an offer for September 2023. Seven of these boys achieved ten scholarships including nine academic awards and one for music. All Year 6 leavers gained places at selective Grammar, Independent or State Schools.

The impact of the Coronavirus pandemic has been significant. The School has continued to follow the Government Guidelines throughout this period. To enable the children to continue their education during the ‘lockdowns’ an online platform was established taking in to account the amount of screen time for children and staff. Some families were provided with extra IT resources from School. Parents gave positive feedback. Throughout the various ‘lockdown’ periods the School remained open for ‘key worker’ children.

Page 6

St John’s School Northwood (A company limited by guarantee and not having a share capital)

Governors’ report (continued)

The onsite team worked hard to prepare the facilities for their return and ensure that the site was safe. The majority of the 350 pupils attended normal lessons in School ‘bubbles’. The School continued to adjust to and follow the Government guidelines throughout the academic year 2020-21. Activities were restricted and there were a limited number of online concerts, lectures and fixtures. St John’s pupils and staff were still able to visit the Northwood Memorial around Remembrance Sunday.

St John’s recognises that in the modern world focus should remain on acknowledging the huge benefits of establishing reading as a vital component for lifelong learning. As part of the National Curriculum coding is now in place from Reception helping children to develop the computational thinking skills that are transferable to other areas of the curriculum. Participation in a new initiative called ‘Votes for Schools’ has created opportunities for discussion in groups, with each other and with adults. Boys can now access the School woods at playtime and the Centenary Tree House has added to their opportunities and proved helpful in terms of their wellbeing. The Eco-council have raised the profile of global issues and working within the School with the aim of achieving Green Flag status The programme of educational talks for parents has been successful. The focus this year was on the impact of the pandemic on the wellbeing of children. A School Counsellor meets regularly with a boys and staff as required.

The School continued to develop the grounds and buildings with a total of £90k of capital investment. This year’s investment involved the replacement of a boiler in the White House building, conversion of the Science block changing room into a new facility for the pre and after school care. Creation of an additional classroom within the Centenary Sports Hall. A mini bus was also purchased at a cost of £20k. IT equipment required circa £140k of investment to include an upgrade on the wireless capability, and circa 70 laptops.

The School continues to enjoy strong support from the St John’s Association (parent association). Although their events were limited for this year, the Parents’ Association have driven initiatives to support the local food banks and to collect and donate unused computer devices to schools to help children with virtual learning. They organised a Christmas Party for all year groups in December and a Family Quiz Night in March, both online events. Over recent years the St John’s Association have provided two new minibuses at a cost of £50,000 and £20,000 for the Pre Prep Department library refurbishment. They have also committed to provide £15,000 towards the ‘Centenary’ Tree House.

The main charitable effort raised a further £5,470 for ‘Play Skill’, a local charity which runs parent and child groups for pre-school children with special physical needs.

Pupil recruitment operated successfully, with all places being filled at the three entry points, 3+, 4+ and 7+.

During the year ended 31st August 2021, the School’s income from gross fees increased to £5,367,225 (2020: £5,355,528). The planned fee income was impacted by the COVID-19 pandemic and decision by the Board to reduce the summer term 2021 fees at a cost of circa £300,000. Total expenditure was £5,026,847 (2020: £4,992,387) and the School’s operating surplus (net incoming resources before investments) amounted to £192,637 (2020: £59,087).

The School holds investments which are reviewed at each termly Finance Sub Committee meeting. The performance of these investments has broadly been in line with the benchmarks approved by the Finance Sub Committee. It should also be noted that dividends are reinvested back into each portfolio.

The investment policy and strategy agreed by the Governors is for a combination of capital growth and income with elements of both a low and medium risk profile across the portfolios. There are three

Page 7

St John’s School Northwood (A company limited by guarantee and not having a share capital)

Governors’ report (continued)

separate and unrestricted investment portfolios which have been established to contribute towards the School’s capital expenditure projects and fund bursaries.

During the year the School awarded bursaries and discounts to the value of £60,362 (2020: £74,331). In addition the Trustees agreed a reduction in the spring terms fees to assist parents with managing their financial positions and Government instructions to close all Schools. This initiative also reflected the ‘online’ teaching requirements.

Access policy

It is important that the pupils of the school benefit from interacting and learning with a diverse range of people. Access to the education and facilities on offer should not be restricted to the children of parents who can afford the fees.

St John’s wants to be viewed as part of a wider community and the School believe that it is important for pupil development to actively participate within the community where they can do so without detriment to their education.

Bursaries and Scholarship policies

St John’s School does not benefit from any endowment funding and pays a commercial rent for its property. It does not hold the freehold of any land. In reviewing bursary requests it must therefore ensure a balance between the interests of the fee paying parents, many of whom make considerable personal sacrifices to fund their boys’ education and those benefiting from the awards.

Bursary awards are available to those who meet the general entry requirements 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. Discounts are provided to parents who have more than two children at the School and to staff members who choose to educate their children both at St John’s and Merchant Taylors’ School.

Links with local state schools

Due to Government restrictions many of the regular events were cancelled for this academic year. As these were eased in the summer term the following events were able to go ahead. Hillside Infant School held their Sports Day on the St John’s athletic track with 200 children and staff attending. St John’s hosted the Design and Technology Competition for Year 5. Primary School children joined with local Independent Schools to take part in a morning of teamwork, collaboration and challenge which took place virtually. Primary School children took part in the Kwik Cricket Festival for Year 4.

Due to planning conditions imposed on the School, the use of the school’s facilities by outside bodies is restricted. However, St John’s continues to develop further links with local state primary schools, and has made available the following facilities free of charge:

Page 8

St John’s School Northwood (A company limited by guarantee and not having a share capital)

Governors’ report (continued)

Hillside Infant School, a local state school, enjoyed their annual Sports day on the School grounds during July.

The School finalised a Community Use Agreement with the London Borough of Hillingdon following completion of the Centenary Sports Hall.

The School maintains an area of land that is ‘protected’ by the London Borough of Hillingdon (LBH). The conservation report commissioned in 2015 identified particular areas of interest. This has provided disabled and wheelchair access immediately adjacent to the School built bridge. The intention remains to offer the use of this area to local primary and junior schools for their own education activities. This may however require the support of the London Borough of Hillingdon in respect of parking facilities and other logistical considerations.

Links with local charitable institutions

Other charitable activities

The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications on their fundraising activities. The charity does not raise funds directly from the general public and does not actively solicit donations. The funds raised are via donations made by Parents, Staff and / or the St John’s Association (PTA). The charity does not work directly with commercial sponsors. The Trustees have no recorded complaints in respect of fundraising during the year.

The School has historically raised funds for a number of charitable organisations (see list below). Due to the COVID-19 pandemic, PlaySkill has been the focus charity for the past two academic years Once again the St John’s community have been very generous in their support, raising £6,064 in the 2020/2021 academic year. These funds support disabled children in the local community. Fundraising events, understandably, were curtailed this year. However with the introduction of the Charity website and the use of Just Giving to allow parents to donate without bringing cash onto the school site, money was raised through Sponsored Quizzes, Year 8’s Business Enterprise and Mufti Days, in line with COVID restrictions. St John’s was also able to send £2,294 to The Lynda Jackson Macmillan Centre as a result of the virtual Moor Park Fun Run, £844 to Save the Children from Christmas Jumper Day, £1,389 to Comic Relief with walks in bubbles around the school, £400 to Macmillan Cancer Research as a result of the SJA coffee morning and £439 to the Royal British Legion through the generosity of the parents. The Pre-Prep held their Jeans for Genes day which raised £333 for Action Medical Research and the staff raised £155 for Think Pink’s breast cancer campaign. However, most notably was the extreme generosity that the St John’s community showed during our Emergency Oxygen Appeal for India through the British Asian Trust; from one mufti day we raised £9,398 to send to India to support those who were suffering most from COVID-19.

Page 9

St John’s School Northwood (A company limited by guarantee and not having a share capital)

Governors’ report (continued)

Donations to charities in recent years:

2015 WaterAid £20000
2016 Great Ormond Street Hospital £15000
2017 PHAB (People have ability) £11000
2018 Whizz-kidz £16857
2019 Magic Breakfast £10819
2020 Play Skill £6749
2021 Play Skill £6065

The School plans to continue to raise substantial sums for charity through the efforts of parents, pupils and staff. As a result of Covid-19 the chosen charity for 2021 / 2022 is ‘ A place2be’, a charity working with children and schools to improve mental health, particularly on the back of COVID

Pay and Remuneration

The Remuneration Sub Committee under the Chairmanship of the Chairman of Governors is responsible for agreeing all elements of pay to all staff, Senior Leadership Team, Teaching and Non-Teaching. In setting remuneration levels, the Remuneration Sub-Committee takes into account what the School can afford – based on its most recent financial projections – as well as national pay levels and local market conditions.

Reserves policy

Substantially all of the funds available to the School are unrestricted.

The School’s reserves policy is to maintain sufficient unrestricted reserves to respond to unforeseen events and cover up to three months’ non-discretionary expenditure (estimated to be approximately £1,300,000). On 31 August 2021 free reserves were £3,447,174 (2020: £3,636,186). This policy continues to be monitored by the Finance Sub Committee and reviewed annually by the Governors. Future capital expenditure development plans will be funded by a combination of cash flow, and investments.

Note 13 to the Financial Statements sets out an analysis of the assets attributable to the various funds. The School has restricted funds relating to restricted donations received and a designated fund in relation to amounts received for bursaries. The Governors have considered the Charity Commission definition of free reserves. They have concluded that the designated bursary fund and investment balance should both form part of the free reserves as they could be drawn on at any time to support the operations of the School.

Disability statement

It continues to be the School’s policy to give full and fair consideration to disabled persons applying for employment, having full regard to their particular aptitudes and abilities. Full and fair consideration will be given to the continuing employment and appropriate training of persons who become disabled. The School provides equal opportunities to all staff on the basis of objective criteria and personal merit.

Page 10

St John’s School Northwood (A company limited by guarantee and not having a share capital)

Governors’ report (continued)

Trustees’ responsibilities

The Governors of the School who are directors of the Company and trustees of the charity 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 which 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 charity for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In the case of each of the persons who are directors at the time when this report is approved, the following applies:

Auditors

Saffery Champness LLP, Chartered Accountants, have signified their willingness to continue in office.

By order of the Board

N E Stone MA Company Secretary

M A L Robb Chair

Date: 3rd February 2022

Page 11

St John’s School, Northwood (A company limited by guarantee and not having a share capital)

Independent auditors’ report to the members For the year ended 31[st] August 2021

Opinion

We have audited the financial statements of St John’s School, Northwood for the year ended 31 August 2021 which comprise the statement of financial activities, balance sheet and statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

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 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.

Page 12

St John’s School, Northwood

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

Independent auditors’ report to the members For the year ended 31[st] August 2021

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

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’ Annual Report and Strategic Report.

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

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 11, the trustees (who are also 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

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St John’s School, Northwood (A company limited by guarantee and not having a share capital)

Independent auditors’ report to the members For the year ended 31[st] August 2021

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 to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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

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

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with management, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with management and trustees and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales.

Further the charitable company is subject to other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, through significant fine, litigation or restrictions on the charitable company’s operations. We identified the most significant laws and regulations to be the Independent School Standards as found in the Education and Skills Act 2008 and guidance issued by the Department for Education.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

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St John’s School, Northwood (A company limited by guarantee and not having a share capital)

Independent auditors’ report to the members For the year ended 31[st] August 2021

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Cara Turtington (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

Chartered Accountants 71 Queen Victoria Street London EC4V 4BE Statutory Auditors

Date: 3 February 2021

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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St John’s School, Northwood (A company limited by guarantee and not having a share capital)

Statement of financial activities For the year ended 31[st] August 2021

Notes
Income from
Charitable activities
School fees receivable
2
Registration/fees insurance discount
3a
Other ancillary income - music
3b
Other trading activities
Other ancillary income – rents/lettings
3c
Other ancillary income
3d
Government Grant
3e
Interest receivable
3f
Investments
3f
Donations from MT Company
3g
Total Income
Expenditure on
Raising funds
Bank interest
5
Investment management
5
Charitable activities
School and grant-making
Total expenditure
5
Net income before investments
Gain/(loss) on investments
Net income/expenditure
Transfer between funds
6
Net movement in funds
Fund balances at 1 September 2020
Fund balances at 31 August 2021		 Unrestricted
funds
£
5,026,875
22,289
140
15,313
18,405
-
260
70,484
30,810
5,184,576
2,695
9,273
11,968
4,979,971
4,991,939
192,637
360,776
553,413
1,250
554,663
7,339,679
7,894,342		 Restricted
funds
£
-
-
-
-
-
34,908
-
-
-
34,908
-
-
-
34,908
34,908
-
-
-
(1,250)
(1,250)
3750
2500		 2021
Total
funds
£
5,026,875
22,289
140
15,313
18,405
34,908
260
70,484
30,810
5,219,484
2,695
9,273
11,968
5,014,879
5,026,847
192,637
360,776
553,413
-
553,413
7,343,429
7,896,842		 2020
Total
funds
£
4,783,424
21,068
160
20,775
6,529
110,068
10,464
76,397
22,589
5,051,474
3,328
11,267
14,595
4,977,792
4,992,387
59,087
(64,707)
(5,620)
-
(5,620)
7,349,049
7,343,429

The notes on pages 19 to 34 form part of these financial statements.

All of the School’s activities are continuing. There were no recognised gains and losses in the year other than the reported above.

Page 16

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Balance sheet As at 31[st] August 2021

Notes
Fixed assets
Investments
7
Tangible fixed assets
8
Current assets
Stocks
9
Debtors
10
Cash
Creditors: due within one
Year
11
Net current assets
Total assets less current
liabilities
Creditors: due after more
than one year
12
Total net assets
13
Restricted funds
13a
Unrestricted funds
Designated and general
funds
13b
Total funds
13		 £
5,287
89,073
1,251,123
1,345,483
416,335		 2021
£
2,646,921
4,447,173
7,094,094
929,148
8,023,242
126,400
7,896,842
2,500
7,894,342
7,896,842		 £
5,399
72,575
2,133,900
2,211,874
913,705		 2020
£
1,974,935
4,199,925
6,174,860
1,298,169
7,473,029
129,600
7,343,429
3,750
7,339,679
7,343,429

Approved by the Governors and signed on their behalf by

Martin Robb Chair 3[rd] February 2022

Company Registration No. 3411518

The notes on pages 19 to 34 form part of these financial statements.

Page 17

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Statement of cash-flow For the year ended 31[st] August 2021

Notes
Net cash flows from
operating activities:
14
Cash flows from investing
activities:
Investment income
Purchase of property, plant
and equipment
Proceeds from sale of
investments
Purchase of investments
Proceeds from sale of assets
Net cash used in investing
activities
Cash flows from financing
activities
Movement in final deposits
Net cash (out)/in financing
activities
Change in cash and cash
equivalents in the reporting
period
Cash and cash equivalents b/f
15
Cash and cash equivalents at
31 August
15		 £
70,744
(715,223)
159,042
(388,101)
-
1,300		 2021
£
81,890
(873,538)
1,300
(790,348)
2,386,005
1,595,657		 £
86,861
(2,521,233)
1,174,222
(191,430)
-
(1,500)		 2020
£
264,351
(1,451,580)
(1,500)
(1,188,729)
3,574,734
2,386,005

The notes on pages 19 to 34 form part of these financial statements.

Page 18

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Accounting policies For the year ended 31[st] August 2021

1.1 Basis of accounting

The accounts have been prepared under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice (“SORP(FRS102) second edition”) and Financial Reporting Standard 102. The accounts are drawn up on the historical cost basis of accounting.

Having reviewed the funding facilities available to the School together with the expected ongoing demand for places, the impact of Covid-19 and the School’s future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 12.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements.

The charity is a public benefit entity.

1.2 Tangible fixed assets

The original land and buildings of the School and the domestic housing on site are not owned by the company. The company is responsible for keeping these properties in a fit and useful condition and these costs are written off as incurred. The cost of any material capital improvements to such land and buildings above £500 is capitalised on completion or purchase.

At each reporting period end date, the School reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.3 Depreciation

Depreciation is provided to write off the cost of all relevant tangible fixed assets less estimated residual value based on current market prices, in equal annual instalments over their estimated useful economic lives as follows:

Building and leasehold improvements over 20 years
Furniture and equipment over 10 years
Machinery and motor vehicles over 4 years
Computer hardware over 4 years

Stock represents goods for resale and is valued at the lower of cost and net realisable value.

Page 19

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Accounting policies For the year ended 31[st] August 2021

1.5 Pension Costs

Retirement benefits to employees of the School are provided through two pension schemes, one defined benefit, and one defined contribution. The pension costs charged to the Statement of Financial Activities are determined as follows:

1.6 Fees

Fees receivable and charges for services and use of the premises, less any allowances, scholarships, bursaries granted by the School against those fees, but including contributions received from restricted funds, are accounted for in the period in which the service is provided.

Rental income is accounted for on a receivable basis.

1.8 Donations and legacies

Voluntary income for the School’s general purposes is accounted for as unrestricted and is credited to the General Reserve. Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fund.

Page 20

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Accounting policies For the year ended 31[st] August 2021

1.9 Investment income

Investment income from dividends, bank balances and fixed interest securities is accounted for on an accruals basis.

1.10 Investments

Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund according to the “ownership” of the underlying assets.

1.11 Expenditure

Expenditure is accrued as soon as a liability is considered probable and can be reliably measured. Expenditure attributable to more than one cost category in the Statement of Financial Activities is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. Irrecoverable VAT is included with the item of expenditure to which it relates.

Grants awarded are expenses as soon as they become legal or operational commitments.

Governance costs comprise the costs of complying with constitutional and statutory requirements and are included as a component of support costs for schooling.

1.12 Fund accounting

The charitable funds of the School are accounted for as unrestricted or restricted income, in accordance with the terms of trust imposed by the donors or any appeal to which they may have responded.

Unrestricted income belongs to the School’s unrestricted fund, spendable at the discretion of the Governors either to further the School’s Objects or to benefit the School itself. Where the Governors decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by transfer to the appropriate designated fund.

Restricted income comprises gifts and grants where there is no capital retention obligation or power but only a trust law restriction to some specific purpose intended by the donor.

1.13 Operating leases

Rentals payable are charged on a time basis over the lease term.

Page 21

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Accounting policies For the year ended 31[st] August 2021

1.14 Taxation

The School is a registered charity and its income is not liable to taxation as it is applied to wholly charitable purposes.

1.15 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

1.16 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.17 Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. The School has elected to apply the provision of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘ Other Financial Instruments Issues’ of FRS102 to all of its financial instruments.

1.18 Critical accounting judgement and estimates

The preparation of the financial statements in accordance with FRS 102 requires the Governors to make estimates and assumptions concerning the future. The estimates and assumptions that could have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include accruals, depreciation and revenue recognition. The accounting in these areas of the accounts requires management to use judgement.

In relation to accruals this is with regards to a best estimate of costs that will be incurred based on contractual requirements.

For depreciation these estimates are driven by the useful economic life of the associated assets.

For revenue recognition management apply judgements in concluding on the point at which revenue should be recognised.

Page 22

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts For the year ended 31[st] August 2021

2.
School fees
The school’s fee income comprised:
Gross fees
Less: Spring Term Discounts
Less: Total bursaries, grants and allowances
3.
Other income
a.
Other educational charitable activities
Registration fees
Fees insurance discount
Other ancillary income
b.
Music income
c.
Rent and lettings
d.
Deposits forfeited and other miscellaneous income
e.
Government grant
Interest receivable
f.
Bank interest receivable
Interest on late fees
Investment income
g.
Company Income		 2021
£
5,367,225
(253,495)
(86,855)
5,026,875
2021
£
14,400
7,889
22,289
140
15,313
18,405
34,908
68,766
260
-
70,484
70,744
30,810		 2020
£
5,355,528
(483,249)
(88,855)
4,783,424
2020
£
12,300
8,768
21,068
160
20,775
6,529
110,068
137,532
10,344
120
76,397
86,861
22,589

Page 23

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

4. Expenditure

Charitable activity expenditure includes:
a.
Interest payable
Support costs includes:
b.
Auditors’ remuneration for audit services
Total staff costs comprised:
Wages and salaries
Social security costs
Pension contributions
Termination Costs
The number of higher paid employees was:
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£120,001 - £130,000
£130,001 - £140,000		 2021
£
2,695
8,040
2,711,675
278,045
534,747
-
3,524,466
2
3
1
-
1		 2020
£
3,328
8,500
2,688,682
279,777
531,626
28,333
3,528,418
3
3
1
1
-

Governors’ remuneration

Governors’ expenses in the year ended 31 August 2021 totalled £nil (2020: £547). Governors are not included in the number of persons employed given above.

Employees: full time equivalent
Teaching – full time
Teaching – part time
Administration, technicians, estate and maintenance
Staff – full time
Staff – part time		 Number
30
3
24
8
65		 Number
29
4
22
10
65

The average number of staff in 2021 was 80 (2020: 80).

Page 24

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

5.
Analysis of expenditure
Staff
costs
£
Costs of raising funds
Investment management fees
-
Bank interest charges
-
-
Charitable activities
Teaching
2,901,139
Welfare
126,835
Premises
276,939
Support costs of schooling
254,462
3,559,375
Total resources expended
3,559,375
Analysis of expenditure – previous year
Staff
costs
£
Costs of raising funds
Investment management fees
-
Bank interest charges
-
-
Charitable activities
Teaching
2,989,676
Welfare
111,033
Premises
256,945
Support costs of schooling
170,764
School’s operating costs
3,528,418
Total resources expended
3,528,418		 Other
Depreciation
costs
£
£
9,273
-
2,695
-
11,968
-
284,319
-
69,888
-
451,456
316,701
181,866
151,274
987,529
467,975
999,497
467,975
Other
Depreciation
costs
£
£
11,267
-
3,328
-
14,595
-
252,825
-
83,652
-
436,782
153,065
358,736
164,314
1,131,995
317,379
1,146,590
317,379		 Total
2021
£
9,273
2,695
11,968
3,185,458
196,723
1,045,096
587,602
5,014,879
5,026,847
Total
2020
£
11,267
3,328
14,595
3,242,501
194,685
846,792
693,814
4,977,792
4,992,387

Page 25

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

6. Transfers between funds

An amount equivalent to the depreciation charge on assets donated to the School has been transferred from the restricted fund as under:

Pre-preparatory refurbishment
ixed asset investments
At 1 September
Additions at cost
Disposals
Unrealised gains and losses
At 31 August
Add cash
Historical cost of investments
Quoted investments are made up as follows
UK equities
UK bonds
Overseas bonds
Overseas equities
Actively managed
Other overseas
Cash		 201
2020
1,250
1,250
1,250
1,250
Investments
2021
2020
£
£
1,722,830
2,768,669
388,101
191,430
(159,042)
(1,174,222)
350,498
(63,047)
2,302,387
1,722,830
344,534
252,105
2,646,921
1,974,935
2,023,362
1,703,770
1,110,885
821,380
195,411
228,819
69,057
44,120
645,923
612,236
-
16,275
281,111
-
344,534
252,105
2,646,921
1,974,935		 201
2020
1,250
1,250
1,250
1,250
Investments
2021
2020
£
£
1,722,830
2,768,669
388,101
191,430
(159,042)
(1,174,222)
350,498
(63,047)
2,302,387
1,722,830
344,534
252,105
2,646,921
1,974,935
2,023,362
1,703,770
1,110,885
821,380
195,411
228,819
69,057
44,120
645,923
612,236
-
16,275
281,111
-
344,534
252,105
2,646,921
1,974,935
1,722,830
252,105
1,974,935
1,703,770
821,380
228,819
44,120
612,236
16,275
-
252,105
1,974,935

7. Fixed asset investments

Page 26

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

8. Tangible fixed assets

9.

10.

Buildings and
leasehold
improvements
£
Costs or revaluation
1 September 2020
4,999,443
Additions
506,019
Disposals
-
Transfers
2,808,552
31 August 2021
8,314,014
Depreciation
1 September 2020
3,901,356
Charge for year
316,701
Disposals
-
31 August 2021
4,218,057
Net book value
31 August 2021
4,097,957
31 August 2020
1,098,087
Stock
Consumables
Goods for resale
Debtors
Trade debtors
Prepayments and accrued income
Related party debtors
Other debtors		 Assets under
construction
£
2,808,552
-
-
(2,808,552)
-
-
-
-
-
-
2,808,552		 Plant and
motor
vehicles
£
226,283
19,500
-
-


Furniture
and
equipment
£

2,016,257
189,704
-
-
2,205,961
1,728,145
148,555
-
1,876,700
329,261
288,112
2021
£
2,097
3,190
5,287
2021
£
6,222
49,236
8,550
25,065
89,073		 Total
2021
£
10,050,535
715,223
-
-
245,783 10,765,758
221,109
2,719
-		 5,850,610
467,975
-
223,828 6,318,585
21,955 4,447,173
5,174 4,199,925
2020
£
1,809
3,590
5,399
2020
£
-
61,025
-
11,550
72,575

Page 27

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

11. Creditors: due within one year

Final term deposits
Related party
Trade creditors
School fees in advance
Accruals and deferred income
Other creditors
12.
Creditors: due after more than one year
Final term deposits:
Within 1 to 2 years
Within 2 to 5 years
After 5 years
Final term deposits:
Within 1 year
13.
Net assets of the fund
Fixed
assets
£
Restricted funds
2,500
Unrestricted and
designated funds
7,091,594
7,094,094		 Net current
assets
£
-
929,148
929,148		 2021
£
14,400
240
13,993
207,316
39,649
140,737
416,335
2021
£
29,200
44,400
52,800
126,400
14,400
140,800
Long term
liabilities
£
-
(126,400)		 2020
£
13,100
1,070
-
159,289
59,915
680,331
913,705
2020
£
27,600
49,200
52,800
129,600
13,100
142,700
Total
2021
£
2,500
7,894,342
7,896,842


(126,400)

Page 28

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

Net assets of the fund (continued) – previous year

Restricted funds
Unrestricted and
designated funds		 Fixed
assets
£
3,750
5,674,678
5,678,428		 Net current
assets
£
-
1,794,601
1,794,601		 Long-term
liabilities
£
-
(129,600)
(129,600)		 Total
2020
£
3,750
7,339,679
7,339,679

13 a Restricted funds: movements in the years

Government Grant
Pre-preparatory
refurbishment		 Balance
1 Sep-
2020
£
-
3,750
3,750		 Net
Incoming
resources
£
34,908
-
34,908		 Resources
expended
£
(34,908)
-
(34,908)		 Transfers
between
funds
£
-
(1,250)
(1,250)		 Balance
31-Aug-
2021
£
-
2,500
2,500

The restricted funds comprise:

Donations to the School from parents or outside bodies for the provision of specific assets. This year the School received a government grant (Coronavirus Job Retention Scheme) from HMRC to help with costs of placing staff on furlough.

Restricted funds: movements - previous year

Government
Grant
Pre-
preparatory
refurbishment		 Balance
1-Sep-
2020
-
5,000
5,000		 Net
incoming
resources
110,068
-
-		 Resources
expended
(110,068)
-
-		 Transfers
between
funds
-
(1,250)
(1,250)		 Balance
31-Aug-
2021
-
3,750
3,750

Page 29

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

13b Unrestricted funds: movements in the year

Designated -
Bursary fund
General reserve		 Balance
1-Sep-2020
£
816,404
6,523,275
7,339,679		 Incoming
resources
£
40,888
5,143,688
5,184,576		 Resources
expended
£
(3,787)
(4,988,152)
(4,991,939)		 Other gains
Transfers
Balance
and losses between funds
31-Aug-2021
£
£
£
172,529
120
1,026,154
188,247
1,130
6,868,188
360,776
1,250
7,894,342		 Other gains
Transfers
Balance
and losses between funds
31-Aug-2021
£
£
£
172,529
120
1,026,154
188,247
1,130
6,868,188
360,776
1,250
7,894,342
7,894,342

Included within general reserves is a revaluation reserve totalling £621,142 (2020: £271,147) in relation to fixed asset investments.

The designated bursary fund relates to funds help for the purpose of awarding bursaries to students.ns

Unrestricted funds: movements – previous year

Designated -
Bursary fund
General reserve		 Balance
1-Sep-2019
£
801,240
6,542,809
7,344,049		 Incoming
resources
£
28,859
4,912,547
4,941,406		 Resources
expended
£
(3,318)
(4,879,001)
(4,882,319)		 Other gains
Transfers
Balance
and losses between funds
31-Aug-2020
£
£
£
(10,224)
(153)
816,404
(54,483)
1,403
6,523,275
(64,707)
1,250
7,339,679		 Other gains
Transfers
Balance
and losses between funds
31-Aug-2020
£
£
£
(10,224)
(153)
816,404
(54,483)
1,403
6,523,275
(64,707)
1,250
7,339,679
7,339,679

14 Reconciliation of changes in resources to net cash inflows from operating activities

Net incoming resources
Depreciation
Loss on disposal
Investment Income
Gain on investments
Increase in operating creditors and accruals
(Increase)/decrease in debtors
Decrease in stocks		 2021
£
553,413
467,975
-
(70,744)
(350,498)
(501,870)
(16,498)
112
81,890		 2020
£
(5,620)
317,379
-
(86,861)
63,048
14,204
(38,062)
263
264,351

Page 30

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

15. Net debt reconciliation

Cash and cash
equivalents
Cash
Cash equivalents
Total		 At 1 September
2020

2,133,900
252,105
2,386,005		 Cash
Flows

(882,777)
92,429
(790,348)		 Other non cash
changes

-
-
-		 At 31 August
2021
1,251,123
344,534
1,595,657

16. Pension costs

Teaching Staff

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £432,774 (2020: £430,324) and at the year-end £nil (2019 £nil) 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 most recent actuarial valuation of the TPS was prepared as 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

Page 31

St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

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. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

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 a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

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.

Until the cost cap mechanism revision is 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..

Support staff

The company contributes to a money purchase scheme available to support staff at the rate of 14% of basic salary. This will increase to 15% with effect from January 2022

Contributions to both above schemes are charged direct to charitable expenditure so as to spread the cost of pensions over the employees' working lives with the company. The total amount of pension contribution charged to direct charitable expenditure for the year was £101,973 (2020: £101,301).

17. Capital commitments

Capital expenditure contracted for but not provided in the financial statements for the company was £nil (2020: £477,568).

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St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

18. Other financial commitments

At 31 August 2021, the company was committed to making the following annual payments under non-cancellable operating leases:

Land and buildings:

and and buildings:
Operating leases which expire:
In less than 1 year
Two to five years
In more than 5 years		 2021
£
234,000
936,000
429,000
1,599,000		 2020
£
234,000
936,000
663,000
1,833,000

19. Related parties

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St John’s School (Northwood) Limited (A company limited by guarantee and not having a share capital)

Notes to the accounts (continued) For the year ended 31[st] August 2021

20. Comparative information

Income from
Charitable activities
School fees receivable
Registration/fees insurance discount
Other ancillary income - music
Other trading activities
Other ancillary income – rents/lettings
Other ancillary income
Government Grant
Interest receivable
Investments
Donations from MT Company
Total Income
Expenditure on
Raising funds
Bank interest
Investment management
Charitable activities
School and grant-making
Total expenditure
Net income before investments
Gain/(loss) on investments
Net income/expenditure
Transfer between funds
Net movement in funds
Fund balances at 1 September 2019
Fund balances at 31 August 2020		 Unrestricted
funds
£
4,783,424
21,068
160
20,775
6,529
10,464
76,397
22,589
4,941,406
3,328
11,267
14,595
4,867,724
4,882,319
59,087
(64,707)
(5,620)
1,250
(4,370)
7,344,049
7,339,679		 Restricted
funds
£
-
-
-
-
-
110,068
-
-
-
110,068
-
-
-
110,068
110,068
-
-
-
(1,250)
(1,250)
5,000
3,750		 2020
Total
funds
£
4,783,424
21,068
160
20,775
6,529
110,068
10,464
76,397
22,589
5,051,474
3,328
11,267
14,595
4,977,792
4,992,387
59,087
(64,707)
(5,620)
-
(5,620)
7,349,049
7,343,429

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