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2021-08-31-accounts

ST DAVID’S COLLEGE TRUST

ST DAVID’S COLLEGE TRUST

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

Registered Charity number: 1075705 Registered Company number: 01351369

ST DAVID’S COLLEGE TRUST

FINANCIAL STATEMENTS

Year ended 31 August 2021

Contents

Page
Company information 1 – 2
Governors’ Annual Report (incorporating Strategic Report) 3 – 10
Auditor’s Report 11 – 14
Statement of financial activities 15
Statement of financial position 16
Cash flow statement 17
Notes to the financial statements 18 - 35

ST DAVID’S COLLEGE TRUST

COMPANY INFORMATION

Year ended 31 August 2021

Legal Status

St David’s College Trust is a registered charity incorporated as a company limited by guarantee under the Companies Act 2006.

Governors

The Governors of St David’s College Trust who served during the year were:

Rev Dr P Gaskell + “(Chairman and Chair of Finance Committee) R Kenwell (Treasurer) Rt Rev K Sinclair Viscount Chelsea G Wilson * R Leake + (Chair of Education Committee) Miss C Hart Mrs B Hutchinson Smith + Lord Mostyn * P Hadley + Mrs A Seldon “ (Nee Haydon) (Chair of Estates Committee) T Mueller Mrs S Hepworth +

“Members of the Estates Committee

Registered charity number Company number Registered office 1075705 01351369 St David’s College Llandudno LL30 1RD

Operating name

The company operates as St David’s College Trust.

The Headmaster

A Russell B.Sc., P.G.C.E., C.C.M. (SpLD)

The Bursar and Clerk to the Governors

K Baines B.Sc., ACA

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ST DAVID’S COLLEGE TRUST

COMPANY INFORMATION

Year ended 31 August 2021

ADVISERS
Bankers HSBC Bank Plc
60 Mostyn Street
Llandudno
Conwy
LL30 2SF
Solicitors Hill Dickinson LLP
No 1, St Paul’s Square
Liverpool
L3 9SJ
Auditors RSM UK Audit LLP
One City Place
Queens Road
Chester
CH1 3BQ
Investments Brewin Dolphin Limited
1 The Avenue
Spinningfields Square
Manchester
M3 3AP
Property & Estates Mostyn Estates Ltd (Landlord)
Mostyn Court
2 Mostyn Street
Llandudno
LL30 2PS
Insurances Circle Insurance Services PLC
2 John Bradshaw Court
Alexandria Way
Congleton
Cheshire
CX12 1LB

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ST DAVID’S COLLEGE TRUST

GOVERNORS’ ANNUAL REPORT

Year ended 31 August 2021

The Board of Governors, who are also the directors of the charity for the purpose of the Companies Act present their annual report for the year ended 31 August 2021, together with the audited financial statements for the year and confirm that the latter comply with the requirements of the Companies Act 2006, Charities Act 2011 and 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 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2016.

Principal activities and objectives

St David’s College Trust (the College) which operates from St David’s College, Llandudno, LL30 1RD, is established to promote and provide for the advancement of education.

The College is incorporated as a company limited by guarantee registered in England and Wales, No. 01351369, and is registered with the Charities Commission under charity number 1075705. The Governors have obtained the consent of the Registrar of Companies to be exempt from the requirement to use the word ‘Limited’ in its name.

The Governors are also the company’s directors and are shown on page 1.

Auditor

The auditor, RSM UK Audit LLP, has indicated its willingness to continue in office.

Structure, governance and management

Governing document

The College is governed by its Memorandum and Articles of Association, as revised in June 2006.

Governing Body

The company is governed by its Board which consists of no less than 7 and no more than 20 members. The governing body, assisted by the Headmaster, Mr A Russell, and Bursar, Miss K Baines, is responsible for formulating the strategy and policies for the company as a whole.

The Governors are appointed annually by the Board of Governors with a normal retiring age of 65 years which subject to re-election, may be extended to age 70.

Recruitment and training of Governors

Governors are recruited from all walks of life, including the clergy, business, the professions and alumni. Governors must subscribe to the College’s statement of faith. On joining, Governors are inducted into the responsibilities of both directors of the company and trustees of the charity. Through membership of AGBIS, Governors attend appropriate external seminars and workshops; internally, periodic training days are arranged in College.

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ST DAVID’S COLLEGE TRUST

GOVERNORS’ ANNUAL REPORT

Year ended 31 August 2021

Organisational Management

The Governors meet as a Board at least three times a year to determine the general policy of the College and to review its overall management and control, for which they are legally responsible. The work of implementing most of the Board’s policies is carried out by the Finance Committee which has met three times this year. The Education Committee met three times during the year, to discuss academic, pastoral and spiritual issues. The Governors submit a self-evaluation of their work which is incorporated into the College Development Plan. The day to day running of the College is delegated to the Head and Bursar supported by members of the School Leadership Team (SLT). The SLT meets every week and from 1 September 2020 is now comprised of the Headmaster, the Bursar, the Deputy Head, the Chaplain, two Assistant Heads and the SENCO.

Key management remuneration policy

The remuneration of key management personnel is set by the Board, with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly and responsibly for their individual contributions to the Company's success.

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent colleges to ensure that the College remains sensitive to the broader issues of pay and employment conditions elsewhere. We aim to recruit, subject to experience, at the lower to medium point within a band, providing scope for rewarding excellence. Delivery of the College's charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure.

Related Parties

A number of the Governors are directors or officers of external companies and any transactions are disclosed in Note 21 of the accounts.

Investment policy and objectives

The Governors’ investment policy complies with the Trustees Act 2000 and, in conjunction with working capital, is directed at covering the future liability of funds held in the Advanced Fee Payment Scheme (AFPS).

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

The principal objects of the company are set out in its Memorandum of Association. Within these objects the College aims:

Aims and intended impacts

The College is a boarding and day college for up to 280 pupils aged 9-19. The College aims to develop "the whole person", through a broad education founded on Christian principles, a wide choice of interest and activity, and an achievable personal programme for each pupil. The College's expertise in helping dyslexic pupils is recognised internationally.

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ST DAVID’S COLLEGE TRUST

GOVERNORS’ ANNUAL REPORT

Year ended 31 August 2021

Objectives

This academic year has seen the UK navigate its way through the 5 alert levels and the school navigate its way through lockdown and ‘live’ schooling. Teaching has taken the form of face to face, hybrid and fully online lessons, where the timetable has always been taught to its fullest. Virtual challenges have been undertaken and physical education lessons have been taught in place of games and outdoor education. The children have maintained their close pastoral and spiritual connection with their teachers and tutors throughout.

Wellbeing has been the major focus of the leadership for the staff and the children and new initiatives of ambassadorship training for staff and similar posts for prefects have ensured a blanket of care covering each employee and pupil during this time of disconnection and need.

Relationships and communication have increased to ensure that no child or parent is left behind and that there are no resultant holes in learning and development. Online parents’ meetings have ensured that parents remain fully informed of their children’s progress throughout. Staff have been fully aware of the difficulties of parents having to work and teach at home, so the full timetable of lessons from nine to five has been of paramount importance. This ‘lived experience’ of us all remains our connection and as such we have introduced a full-time pastoral support officer to back up the essential work of the Assistant Head (pastoral), the Housemasters, Heads of Years, Tutors and the growing Chaplaincy team.

Marketing has focused more predominantly on the domestic boarding arena and new networks are being developed to include prep school visits and renewed engagement with other senior schools outside of the Principality.

New developments include an extension to the parking lots just outside of the school gates and new safety features for pedestrians withing the campus. Modifications within boarding have increased and levelled the quality of the provision in the main school building and the other four houses and en-suite rooms have been created for new interns within the Chaplaincy team. This increases the number of adults resident on site to 19.

Developments within the curriculum have been numerous and resulted in the recognition of the ISA for our outstanding provision for sport (our teaching methodology is the subject of several studies by universities and also by high performance coaches in the sporting world), an additional ISA shortlisting for the outstanding level of support in SEN and a shortlisting by Independent School Parents magazine for outstanding school initiatives during the Pandemic. The Outdoor Education department is also the subject of a thematic report for Estyn as an example of sector leading practice.

Reverend Tim Hall retired after 50 years of incredible service at St David’s College, taking up the Emeritus role supporting and mentoring the team of two chaplains and three interns of the next year. His commitment over half a century was recognised by all our member affiliated organisations.

This has been a tough year, with lost income from boarding, however we are strong in the day market and there are many year groups where there is limited recruitment or waiting lists for places.

Strategies

The College measures its success in many ways, some of which are easier to quantify than others. Academically we measure success by raw examination results but more accurately by the value-added scores that are calculated annually when comparing the students’ performance in exams with the levels as measured by national baseline testing when they joined the College. Equally important are the essential skills of leadership, teamwork, resilience, etc. These are almost impossible to quantify empirically, but we are proud of our success in ensuring that the majority of our pupils leave us with a strong sense of community, empathy and resilience.

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ST DAVID’S COLLEGE TRUST

GOVERNORS’ ANNUAL REPORT

Year ended 31 August 2021

Public benefit

St David's College Trust remains committed to the aim of providing public benefit in accordance with its founding principles. Charity law has introduced the requirement to demonstrate that public benefit for charitable purposes where it has hitherto been presumed in the absence of evidence to the contrary.

The award of bursaries for the needy is a measurable means of providing public benefit. The Board takes the view that bursaries awarded to those who would not otherwise be able to afford the fees are important, but not to the exclusion of the much wider benefit that the College provides within the community. Those pupils who attend our college and who receive financial support contribute to the college community in a variety of ways. Hence the benefit is not purely to these pupils but to the whole College and, in some cases to the wider community. This year the College awarded scholarships, bursaries and other awards to the value of £630,444 10.45% of gross fees (2020 was £ 592,135, at 10.3% of gross fees) helping 154 children to pursue their education at the College. The Governors will continue to demonstrate public benefit by making awards based on academic ability and financial need. We continue to provide for LEA funded students and 4 students who are partially funded by external Charitable Trust Funds.

The College has offered its facilities to local schools, organising several events including sporting activities. The sports facilities are used by several local cricket teams on a non-profit making basis. Local groups continue to make use of our facilities for meetings and drama clubs. The College opens up its historic buildings to the public as part of an annual Heritage Scheme in the county.

Fundraising performance

Limited face to face teaching time has likewise meant limited opportunities for fundraising, however, the children created shoe bags at Christmas for children in Africa and collected coats for a children’s hospice in Wales. Fundraising will be a focus for us as a community in 2021/22 as children have learned how important it is to value life and our earth. We have 130 trees to plant to protect the environment and we are growing vegetables for our local community.

Investment performance

The Governors’ investment policy complies with the Trustees Act 2000 and, in conjunction with working capital, is directed at covering the future liability of funds held in the Advanced Fee Payment Scheme (AFPS). Funds held in the AFPS are £202,980 (2020: £237,501). The value of investments held is £130,855 (2020: £118,174). Investments have performed very well this year.

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

Review of achievements and performance for the year

The Government announced in January that the Summer exams were to be cancelled and that grades were required to be a reflection of the students’ attainment through teachers’ assessments (TAGs), including amongst other things, coursework and mock exams. Level two and three results were received earlier in August than usual and an appeals process was set up to deal with any issues. The WJEC did not release their results until results day, whereas other boards’ results were announced in advance.

The St David’s College Summer 2021, Level 2 examination results (both GCSE and BTEC combined) have been excellent across all subject areas. 34.6% of the grades received were at A/7 which was 5.9% above the figures for Wales. Deeper analysis indicates that the GCSE results 35.1% performed above the BTEC 29.2% at the A/7 and above boundary. 97% of the students received the benchmark 5 GCES grade C/4 and above including Maths and English. There were many outstanding departmental results receiving 100% C/4 pass rates with Maths at 100% (47% of the results at A/7 and above) being particularly commendable.

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ST DAVID’S COLLEGE TRUST

GOVERNORS’ ANNUAL REPORT

Year ended 31 August 2021

The results of pupils receiving C/4 grades at Level 2 was 96.9% which compares extremely favourably to the Wales figure of 73.6%. As a non-selective school, we are very proud of these results in particular.

Within the sixth form at Level 3, 51.5% of the grades were at A-A/Distinction- Distinction. A Levels alone accounted for 56.1% of the top grades, while comparably, in Wales it was 48.3%. 41% off the leaving cohort are attending Russell Group Universities studying subjects such as Pharmacy, Architecture, Aerospace Engineering and Accountancy. A gap year is proving a popular choice despite travel restrictions, while 20% of the cohort have gone straight into apprenticeships, others choosing courses that include audio engineering and songwriting.

FINANCIAL REVIEW

Results for the year

The College’s surplus of £122,112 (2020 £149,318 deficit) was above the target budgeted surplus of £12,284. This was due to additional pupils during the year and tight cost control. Operating costs tended to reduce against budget in most areas except for maintenance where we increased spend to continue our plans for improving the facilities. We had excellent collection of debtors during the year and have been able to release £79,797 of our debtor provisions. We also had a substantial gain on investments of £12,681. Academic staffing costs were £2,968,309 (2020: £3,102,103).

Fees increased by 2% on 1st January 2021. The gross fee income increased by £304,517 during the year due to extra pupils and the impact of the fee increase. The School was closed to day pupils for the Spring Term, but we were open for a limited number of boarding pupils from February 2021. During the previous year we shut to all pupils for the entire Summer Term. Bursaries continued to be in demand, with the level awarded being 1.4% of gross fees at £84,120. Bursaries are awarded on a means tested basis. There was an increase in net fees of £266,208.

Pupil numbers rose steadily from 262 to 268 by the year ended 31[st] August 2021 (258 during the year ended 31[st] August 2020). The new pupil intake at September 2020 was at an excellent level of 76. Pupil numbers at September 2021 are 265 and the new pupil intake is a good 53.

Covid has had a minimal impact on the finances for the year with lost income being largely covered by savings in costs and assistance from the furlough scheme. We have maintained a strong balance sheet and cash reserves which have enable us to face the challenges the new year is presenting with the Covid pandemic and rising costs of fuel, energy and food.

Reserves Level and Policy and Financial Viability

The College’s reserve policy is to maintain sufficient unrestricted income reserves to enable it to meet its shortterm financial obligations in the event of an unexpected revenue shortfall and to rely on the readily realisable cash in bank and overdraft facility.

The College’s total reserves are £2,778,452 (2020: £2,656,340) at the year end, of which £3,223,124 (2020: £3,192,974) relate to the fixed assets and investments of the school, leaving £(444,672) (2020: £(536,634)) of free reserves for the College. The Board deem this to be an adequate level of free reserves give the current climate and the availability of the £400,000 overdraft. We intend to build up the free reserves from the current deficit to a surplus over the next 4 years.

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ST DAVID’S COLLEGE TRUST

GOVERNORS’ ANNUAL REPORT

Year ended 31 August 2021

Restricted Funds of £102,611 (2020: £110,610) and Designated Funds of £143 (2020: £179) are held against various restricted activities, being the depreciating value of Tryfan Boarding House, the James Webb fund held for projects relating to the Assistive Technology Programme, the Boat fund which is held for the purchase and upkeep of school boats and the appeal value of Chelsea House. The Charity Commission has advised us that although the fund value of Tryfan must remain restricted, the cash surplus in respect of Chelsea may be used for other development purposes.

PRINICIPAL RISKS AND UNCERTAINTIES

Risk management

The Governors consider that previous years of economic turbulence, as well as the future uncertainties facing the country, could have an impact on our financial security through pupil numbers. Increased costs for manpower and other resources have been supported with an increase in fees. The Governors viewed the increasing costs of the Teachers’ Pension Scheme to be an unacceptable risk and entered a consultation process with teaching staff that concluded with the College exiting the Teachers’ Pension Scheme on 30 April 2021. The new pension scheme offered to teachers maintains the more manageable employers’ contributions of the Teachers Pensions Scheme of 16.48% that applied prior to the increase to 23.7% in September 2020. The Governors have also reviewed the risks faced in the principal areas of College operations, noting the continual risk assessments conducted by staff. The Governors remain of the opinion that the College has established resources and system which, under normal conditions, should allow risks to be mitigated to an acceptable level in the College’s routine operations.

Again, this year, the Governors have monitored the requirements of the Charities Act on the College’s charitable status. As reported under Public Benefit, the College can demonstrate its public benefit; the Governors see no necessity, therefore, to make any financial provision for the Charities Act requirements at this time.

The key controls used by the charity include:

Through the risk management processes established for the College, the Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

The main risks as identified by the Governors are as follows:

Pupil Numbers

The Governing body review regularly the recruitment and retention of pupils. The College is pursuing many new marketing initiatives and has invested in its marketing budget and the appointment of a new Registrar and Marketing Manager with a particular emphasis to grow boarding numbers.

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ST DAVID’S COLLEGE TRUST

GOVERNORS’ ANNUAL REPORT

Year ended 31 August 2021

Credit and Debt recovery Risk

The Governing body monitor the late and/or non-payment of fees and the steps in place to recover these debts, to prevent a detrimental effect on cash flow and income. Persistent debtors are pursued through legal channels to recover the debt. An adequate provision for bad debts that may not be recoverable is set each year to protect against any unpreventable losses.

Cash flow Risk

Cash flow is assessed on a monthly basis and reported to the Governing Body. The average cash balance by this year end was reported to be an adequate £1,074,505 (2020: £1,148,268)

Brexit

The Governing body are monitoring the impact of Brexit on the college in terms of its effect on the recruitment of pupils, supply of goods and services and travel to and from Europe.

Future Plans

The financial performance and positive cash flows, in recent years, has given the College the scope to consider the possibility of investing in more significant capital projects in the next few years.

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ST DAVID’S COLLEGE TRUST

GOVERNORS’ ANNUAL REPORT

Year ended 31 August 2021

Trustees/Governors’ Responsibilities

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

Company law requires the Governors to prepare financial statements for each financial year 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 charitable company for that period.

In preparing these financial statements, the Governors are required to:

  1. select suitable accounting policies and then apply them consistently

  2. observe the methods and principles in the Charities SORP;

  3. make judgements and estimates that are reasonable and prudent

  4. state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements, and

  5. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Governors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time to show and explain the charitable company’s transactions, the financial position of the charitable company and enable them to ensure that the financial statements comply with the provisions applicable under the Companies Act 2006 and the charity’s constitution.

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.

In so far as the Governors are aware:

Small Company Provisions

This report has been prepared in accordance with the provisions applicable for companies entitled to the small companies exemption.

Approved by the Board of Governors of St David’s College Trust on …………………… and signed on its behalf by:

Rev.. Dr. Peter Gaskell, Chairman of Governors

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ST DAVID’S COLLEGE TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ST DAVID’S COLLEGE TRUST

Opinion

We have audited the financial statements of St David’s College Trust (the ‘charitable company’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities (incorporating an income and expenditure account), the Statement of Financial Position, the Cash Flow Statement 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 FRS 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 other information comprises the information included in the Governors’ Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Governors’ 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.

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ST DAVID’S COLLEGE TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ST DAVID’S COLLEGE TRUST (continued)

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of 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 Directors’ Report included within the Governors’ Annual Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 10, 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.

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ST DAVID’S COLLEGE TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ST DAVID’S COLLEGE TRUST (continued)

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

Auditor’s responsibilities for the audit of the financial statements

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

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected noncompliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

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ST DAVID’S COLLEGE TRUST

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

ST DAVID’S COLLEGE TRUST (continued)

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The most significant laws and regulations that have an indirect impact on the financial statements are The Education (Independent School Standards) Regulations 2014, Keeping Children Safe in Education under section 175 of the Education Act 2002, and the UK General Data Protection Regulation (UK GDPR), as well as the Social Services and Well-being (Wales) Act 2014. We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://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.

ANNA SPENCER-GRAY (Senior Statutory Auditor)

For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants

One City Place Queens Road Chester CH1 3BQ Date

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ST DAVID’S COLLEGE TRUST

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 August 2021

Unrestricted
funds
Note
£
INCOME
Income from Charitable
Activities
School fees
2
5,399,923
Other educational income
3a
11,245
Other ancillary income
3b
40,626
Donations
Grant Income
3c
3d
-
105,944
Investment income
4
2,573

Total income
5,560,311
EXPENDITURE
Expenditure on
Charitable Activities
8
5,492,555
Costs of raising funds
8
(49,710)
Total expenditure
8
5,442,845
NET
INCOME/(EXPENDITURE)
AND NET MOVEMENT IN
FUNDS BEFORE GAINS
AND LOSSES ON
INVESTMENTS
117,466
Net gains / (losses) on
Investment
11
12,681
__
NET MOVEMENT IN
FUNDS FOR THE YEAR
130,147
Fund balances as at 1
September
2,545,551
FUND BALANCES AT
31 AUGUST
17
2,675,698		 Designated
funds
£
-
-
-
-
-
-
-
36
-
36
(36)
-
__
(36)
179
143		 Restricted
funds
£
-
-
-
1,200
-
-
1,200
9,199
-
9,199
(7,999)
-
__
(7,999)
110,610
102,611		 Total
2021
£
5,399,923
11,245
40,626
1,200
105,944
2,573

5,561,511

5,501,790
(49,710)

5,452,080

109,431
12,681
__
122,112
2,656,340

2,778,452		 Total
2020
£
5,133,715
5,516
40,628
27,350
217,714
3,130
5,428,053
5,473,931
99,807
5,573,738
(145,685)
(3,633)
(149,318)
2,805,658
2,656,340

All gains and losses recognised in the year are included in the Statement of Financial Activities.

The notes on pages 18 to 35 form part of these financial statements

15

ST DAVID’S COLLEGE TRUST

Company Registration Number 01351369

STATEMENT OF FINANCIAL POSITION

As at 31 August 2021

2021
Note
£
Fixed assets
Tangible assets
10
3,092,269

Investments
11
130,855

Total fixed assets
3,223,124


Current assets
Land held for sale
12
37,227
Stocks
21,136
Debtors due within one year
13
104,038
Cash at bank and in hand
853,241

1,015,642
Creditors:amounts falling due within one year
14
(1,112,828)

Net current assets
(97,186)

Total assets less current liabilities
3,125,938

Creditors:amounts falling due after more than one year
15
(347,486)

Net assets
2,778,452


Funds
Restricted funds
18a
102,611
Designated funds
18b
143
Unrestricted funds
18c
2,675,698


Total funds
2,778,452
 2020
£
3,074,800
118,174
3,192,974
37,227
25,776
102,601
613,190
778,794
(928,463)
(149,669)
3,043,305
(386,965)
2,656,340
110,610
179
2,545,551
2,656,340

The accounts have been prepared in accordance with the provision Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

The financial statements on pages 14 to 34 were approved and authorised for issue by the Board on ………………… and signed on its behalf by:

Rev.. Dr. Peter Gaskell, Chairman of Governors

The notes on pages 18 to 35 form part of these financial statements.

16

ST DAVID’S COLLEGE TRUST

STATEMENT OF CASH FLOWS

For the year ended 31 August 2021

2021
Note
£
£
Cash from operating activities
23
469,979
Interest paid
(9,624)

Net cash from operating activities
460,355
Cash from/ (used in) investing activities
Investment income
2,573
Purchase of tangible fixed assets
(188,806)

Cash used in investing activities
(186,233)
Fees in advance scheme
15a
New fees in advance
179,808
Amounts accrued to fees in advance contracts
2,965
Amounts utilised
(216,844)


(34,071)
Increase/(decrease) in cash and cash equivalents in
the year
240,051
Cash and cash equivalents at beginning of the year
613,190
Cash and cash equivalents at end of the year
853,241		 2020
£
£
174,818
(7,881)

166,937
3,130
(632,484)

(629,354)
175,759
2,946
(200,487)

(21,782)
(484,199)
1,097,389
613,190

17

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

1 Accounting policies

Basis of preparation of the financial statements

St David’s College Trust, Llandudno (the College) is an incorporated charitable company which is limited by guarantee, (registered company no. 01351369), (charity no. 1075705), registered in England & Wales. The College’s registered address and principal place of business is St David’s College, Llandudno, LL30 1RD.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value except for certain financial instruments at fair value. The Financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102), the Companies Act 2006 and the Charities Act 2011. The principal accounting policies adopted in the preparation of the accounting policies are set out below.

The College constitutes a public benefit entity as defined by FRS 102.

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

Going concern

The College’s ability to continue operating is aided by the continued support of its bankers and the availability of adequate overdraft facilities, should they be required. The overdraft facility has been renewed up to November 2022. Detailed cash flow forecasts and budgets have been prepared and approved by the Governors to ensure the College can meet its financial commitments when they become due in the coming year and the following year. The College has implemented a strategy focused on pupil recruitment and a programme of cost control to ensure the College can operate within its agreed bank overdraft facilities. On this basis therefore it is appropriate to prepare financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the withdrawal of support from the College’s bankers.

The College has managed its finances very efficiently during the current year with respect to issues caused by Covid 19. Lost income due to lockdowns and partial lockdowns has largely been covered by cost savings and support from the furlough scheme. As with the current year we do not expect Covid 19 to have any significant impact on the College’s finances. Governors have concluded that it is reasonable to expect that the school will generate sufficient resources to continue in operational existence for the foreseeable future and meet all of its financial obligations. For this reason, the Governors have continued to adopt a going concern basis in preparing the School’s financial statements.

Fees and similar income

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the College, but include contributions received from Restricted Funds for Scholarships, Bursaries and other grants. Scholarships are assessed and awarded on a pupil’s merit following an annual Scholarship Day held in the early Spring term. Bursaries are considered on the basis of a declaration of income and liabilities from the parents applying for such an award. Nonrefundable fees received in advance of education to be provided in future years under an Advance Fee Payment Scheme contract are held as interest-bearing liabilities until either taken to income in the term when used or transferred to another school.

18

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

Investment income

Investment income from bank balances and fixed asset investments are accounted for on an accruals basis.

Expenditure

Expenditure is accounted for on an accruals basis. The irrecoverable element of VAT is included with the item of expense to which it relates.

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

Charitable activities include expenditure associated with the running of the school and include both the direct costs and support costs relating to those activities. Governance costs (included within support costs) comprise the costs of running the charity, including strategic planning for its future development, also internal and external audit, any legal advice for the College Governors, and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.

Fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. The capitalisation policy is that purchases of more than £1,000 and with a useful life of over 12 months are considered to be capital purchases.

Land and buildings are classified as fixed assets held primarily for charity use and do not include investment assets. Land deemed as to be put up for sale within 12 months is classified as current assets.

Depreciation is provided so as to write off the cost of the fixed assets less their estimated residual value over their estimated useful lives. The current depreciation rates are as follows:

Leasehold buildings 2% p.a. (2.5% in 2006 and prior years) – straight line
Portable buildings 10% p.a. – reducing balance
Equipment and furnishings 19% to 21% p.a. – reducing balance
Motor vehicles 25% p.a. – reducing balance
Assets in the course of construction No depreciation

Investments

Listed investments are included in the financial statements at market value 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.

Stocks

Stocks are valued at the lower of cost and net realisable value. Stocks comprise of resources purchased during 2020/21, for use in the academic year 2021/22.

19

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

Pension schemes

The College participates in the Teachers’ Pension Scheme (England and Wales) (the TPS), for its teaching staff. This is a multi-employer defined benefits pension scheme and it is not possible or appropriate to consistently identify the liabilities of the TPS which are attributable to the College. The College, in accordance with FRS 102 therefore, the Scheme is accounted for as a Defined Contribution Scheme.

The College also participates in a defined contribution group personal pension scheme for employees who are not eligible for membership of the TPS. The employer contributions start from 8.35% up to a maximum of 12.35% in line with the amount the employee wishes to contribute personally.

Contributions to both schemes are charged in the SOFA as they become payable.

Operating leases

Rentals payable under operating leases are charged to resources expended on a straight-line basis over the period of the lease.

Unrestricted Funds and Designated fund

Funds are retained to cover the fixed assets, provide working capital and repay long-term loans. Funds are designated within Unrestricted Funds when there is a specific project to be undertaken.

The designated fund represents the depreciating value of the furniture and equipment of the Chelsea House along with the surplus in the specific designated bank account.

Restricted fund

The restricted fund represents the depreciating value of the Tryfan Boarding House and the James Webb Assistive Technology Suite.

Funds are restricted when they have been given or raised for a specific purpose.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less.

Financial instruments

The College has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial instruments Issues’ of FRS 102 to all of its financial instruments.

Financial assets are recognised in the College's balance sheet when the school becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

Basic financial assets, which include trade and other receivables (but not prepayments) not measured at amortised cost, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method.

20

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in Statement of Financial Activities.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement as, either, financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Critical accounting estimates and assumptions

The College makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Pension scheme valuation assumptions

Assumptions have been made by the actuary in calculating the valuation of the defined benefit pension scheme at the year end. Details of the assumptions made are included within the pension note.

Bad debt provision

Fee debtors are reviewed, annually, when the governors consider the requirement to write off any bad debts over 12 months old or those which are found to be non-recoverable. All fee debts, which are outstanding at the end of the financial year, less any amounts expected during the following financial year, will be covered by a bad debt provision, unless those fees are believed to be payable within the next 3 months.

Depreciation rates

Depreciation policies are applied to each asset category in order to reflect the useful economic life of the assets.

2 Income from charitable activities

School fees Unrestricted Unrestricted
2021 2020
(a) The School’s fee income comprised: £ £
Gross fees 6,030,367 5,725,850
Less: Bursaries and awards (223,679) (249,738)
Fee discounts (406,765) (342,397)
5,399,923 5,133,715

21

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

3
Other income
(a)
Other educational charitable activities
Lettings
(b)
Other ancillary activities
Other income
Bus income
(c)
Donations - Restricted
(d)
Grant income - Unrestricted		 Unrestricted
2021
2020
£
£
11,245
5,516
11,245
5,516
Unrestricted
2021
2020
£
£
2,665
5,715
37,961
34,913
40,626
40,628
Restricted
2021
2020
£
£
1,200
27,350
1,200
27,350
Unrestricted
2021
2020
£
£
105,944
217,714
105,944
217,714

22

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

4 Investment income

Investment income Unrestricted
£
2,573
2,573		 Restricted
£
-
-		 2021
Total
£
2,573
,
2,573		 2020
Total
£
3,130
,
3,130

The total income in 2020 was attributable to unrestricted funds.

5 Total staff costs comprised

Wages and salaries
Social security costs
Pension contributions		 2021
£
3,224,250
281,734
480,097
3,986,081		 2020
£
3,096,622
290,184
537,036
3,923,842

The average full-time equivalent number of employees employed by the School during the year was:

Teaching
Welfare
Premises
Support
The average number of employees on the payroll was		 2021
57
26
7
8
98
139		 2020
59
17
7
8
91
127

None of the Board members received remuneration in the year.

Governor travel and training expenses of £296 (2020: £2,210) – paid to Governors during the year to reimburse out of pocket expenses relating to travel.

An ex-gratia payment of £2,500 was paid during the previous year. The payment was in relation to a termination of employment settlement agreement.

23

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

5 Total staff costs comprised (continued)

The number of employees whose emoluments exceeded £60,000 was:

2021 2020
£60,000- £70,000 2 2
£90,000- £100,000 1 1
£100,000-£110,000 - 1

Contributions by the school for the higher-paid employee shown above amounting to £19,808 (2020 £13,514) were made to the Teachers’ Pension Fund, a defined benefit scheme.

Aggregate employee benefits of:
Key management personnel		 2021
280,429
 2020
379,084

The key management personnel are the Headmaster, the Bursar, the Deputy Head, the Chaplain and the Registrar and Director of Strategic Development (left 31 August 2020)

6
Analysis of Governance expenditure included within support costs
Auditors’ remuneration including VAT:
for audit services
Governors travel expenses
7
Net income/(expenditure) for the year
Operating leases:
- Land & buildings
- Motor
- Equipment
Depreciation		 2021
£
21,864
296

22,160

2021
£
35,700
37,553
20,560
167,385
 2020
£
18,000
2,210
20,210
2020
£
35,700
43,224
21,368
159,953

24

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

8 Expenditure

Staff costs
£
Costs of raising funds:
Financing costs
-
Bank interest and charges
-
Bad debts write off
-
-

Charitable activities
Teaching
2,968,309
Welfare
450,050
Premises
216,691
Support costs of schooling
351,031
School’s operating costs
3,986,081
Total expenditure
3,986,081
 Other
costs
Depreciation
£
£
2,743
-
6,881
-
(59,334)
-
(49,710)
-

283,759
46,368

157,164
42,659
650,999
74,648
256,402
3,710
1,348,324
167,385

1,298,614
167,385

 2021
Total
£
2,743
6,881
(59,334)

(49,710)

3,298,436
649,873
942,338
611,143
5,501,790
5,452,080
 2020
Total
£
4,903
2,978
91,926
99,807

3,404293
486,121
915,454
668,063
5,473,931
5,573,738

Total expenditure was £5,452,080 (2020: £5,573,931) of which £7,999 (2020: £20,999) was restricted and £36 (2020: £45) was designated. Total remaining funds were unrestricted.

The credit on the bad debt write off arose due to collection of some older historic debts which has enabled us to release bad debt provisions, and excellent collection of the current year’s fees.


Support costs of schooling
Salaries
PR & Marketing
Agents Commission
Legal and professional
Postage and stationery
Telephones

Depreciation		 Staff costs
£
351,031
-
-
-
-
-
-
351,031
 Other
Costs
Depreciation
£
£
-
-
75,951
-
62,544
62,184
-
-
28,498
-
27,225
-
-
3,710
256,402
3,710
 2021
Total
£
351,031
75.951
62,544
62,184
28,498
27,225
3,710

611,143
 2020
Total
£
312,436
139,852
64,248
84,272
33,619
30,091
3,545
668,063

25

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

9 Taxation

The charity is exempt from tax on income and gains falling within Part 11 of the Corporation Taxes Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

10 Tangible fixed assets

Assets
in the
course of
construction
£
Cost
At 1 September 2020
635,260
Additions
-
Disposals
Transfer
-
(635,260)

At 31 August 2021
-

Depreciation
At 1 September 2020
-
Charge for year
Disposals
-
-

At 31 August 2021
-

Net Book Value
At 31 August 2021
-

At 31 August 2020
635,260
 Short
Leasehold
Land and
Buildings
£
3,401,681
141,485
-
635,260
4,178,426
1,270,062
93,636
-
1,363,698
2,814,728

2,131,619
 Portable
Buildings
£
29,756
-
-
-
29,756
25,211
454
-
25,665
4,091

4,545
 Motor
Vehicles
£
44,955
-
-
-
44,955
28,878
4,027
-
32,905
12,050

16,077
 Equipment
&
Furnishings
£
2,450,621
47,321
(1,073,631)
-

1,424,311

2,163,322
69,268
(1,069,679)

1,162,911

261,400

287,299
 Total
£
6,562,273
188,806
(1,073,631)
-
5,677,448
3,487,473
167,385
(1,069,679)
2,585,179
3,092,269

3,074,800

26

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

11 Investments

Investments at market value at 1 September 2020
Additions
Disposals
Increase/ (Decrease) in Cash
Revaluation surplus/(loss)
Fees
Investments at market value at 31 August 2021
Historical Cost of investments
Listed investment assets in the UK
Unrestricted
Funds
£
Listed investments
Quoted fixed interest securities
Other investments
44,541
79,657
Other investments
UK cash held as part of portfolio
6,657
130,855
Restricted
Funds
£
-
-
-
-		 2021
£
118,174
40,430
(44,236)
2,606
12,681
1,200

130,855

114,462

Total
Funds
2021
£
44,541
79,657
6,657

130,855		 2020
£
121,807
22,942
(25,815)
1,673
(3,633)
1,200
118,174
113,710
Total
Funds
2020
£
62,924
51,199
4,051
118,174

All investments are primarily held to provide an investment return. All investments are carried at their fair value. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objects.

At the year-end the College’s long-term investments totalled £130,855. The overall total investment return was an increase of £15,254 which is a very satisfactory result given the economic climate and growth. Investments are made up of UK bonds, UK and overseas equities and a Sterling Capital Account.

12 Land held for sale

Land held for sale 2021
£
37,227
37,227		 2020
£
37,227
37,227

School fees which were previously secured by a Voluntary Legal Charge were realised during 2012/13 and the School took possession of land included at £37,227 the value of the outstanding debt.

27

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

13 Debtors

Fees and extras in arrears
Other debtors
Prepayments		 2021
£
31,418
6,060
66,560
104,038		 2020
£
36,854
1,871
63,876
102,601

Debts which have been written off during the year amounted to £17,920 (2020: £19,190). The provision for doubtful debts has decreased by £79,797 in the year.

14 Creditors: Amounts falling due within one year

Trade creditors
Accruals
Other creditors
School fees in advance
Deposits against recoveries
Tax and Social Security
Pension contributions		 2021
£
74,897
89,704
70,054
769,209
39,248
65,192
4,524
1,112,828		 2020
£
20,478
134,782
62,519
533,699
47,100
66,487
63,398
___

928,463

School fees in advance include £202,980 (2020 £237,051) relating to the Advance Fee Payments Scheme, see note 15a for details. The remainder are for Autumn term 2021.

School fees in advance (excluding advance fee payment schemes)
At 1 September 2020
Released from previous year
Resources deferred in the year
Deferred income at 31 August 2021		 2021
£
382,615
(382,615)
615,965
615,965		 2020
£
347,481
(347,481)
382,615
382,615

Bank overdraft

The bank overdraft is secured by a first mortgage dated 13 November 2000 over the College’s leasehold property known as St David’s College, Gloddaeth Hall and Cottages, Llandudno, LL30 1RP and the following debentures dated 7 December 2000 and 20 July 1999.

Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future, and First Floating Charge over all assets and undertaking both present and future dated 7 December 2000.

28

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

15 Creditors: Amounts falling due after more than one year

School fees received in advance (see note 15a)
Deposits against recoveries		 2021
£
49,736
297,750

347,486
 2020
£
85,968
300,997
386,965

The deposits are from parents and are disclosed as partly repayable after more than one year because they are repayable when the pupil leaves and it is reasonable to assume that many pupils will not be leaving within one year.

15a Advance fee payments

Parents may pay to the College up to the equivalent of 7 years tuition fees in advance. Ownership of the funds passes to the College on receipt, but advance payments can be repaid if a pupil does not come to St David’s or leaves the College earlier than had been anticipated.

Assuming pupils will remain in the College, advance fees will be applied as follows:

Within 1 year
Within 2-5 years		 2021
£
153,244
49,736
202,980		 2020
£
151,083
85,968
237,051

The balance included in creditors represents the accrued liability under the contracts. The capital movements during the year were:

Balance at 1 September 2020
New scheme in year
Amounts accrued to contracts as debt financing costs
Amounts utilised in payment of fees
Balance at 31 August 2021		 2021
2020
237,051
258,833
179,808
175,759
2,965
2,946
(216,844)
(200,487)
202,980
237,051

29

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

16

(continued)

Financial instruments

Carrying amount of financial assets
Financial assets measured at fair value
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost		 2021
£
2020
£
168,082
155,401
31,418
36,854
(641,369)
(695,762)

17 Allocation of the charity net assets

The net assets are held for the various funds as follows:

31 August 2021
Restricted funds
Unrestricted funds:
Unrestricted funds
Advance fees
Unrestricted
funds:
Designated
31 August 2020
Restricted funds
Unrestricted funds:
Unrestricted funds
Advance fees
Unrestricted
funds:
Designated		 Fixed
Assets
£
100,853
2,991,273
-
143
3,092,269
Fixed
Assets
£
108,852
2,965,769
-
179
3,074,800		 30
Investments
£
-
130,855
-
-
130,855
Investments
£
-
118,174
-
-
118,174		 Net
Current
Assets
£
1,758
54,300
(153,244)
-
(97,186)
Net
Current
Assets
£
1,758
(344)
(151,083)
-
(149,669)		 Long
Term
Liabilities
£
-
(297,750)
(49,736)
-
(347,486)
Long
Term
Liabilities
£
-
(300,997)
(85,968)
-
(386,965)		 Total
£
102,611
2,878,678
(202,980)
143
2,778,452
Total
£
110,610
2,782,602
(237,051)
179
2,656,340

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

18a Restricted funds

31 August 2021
Tryfan
James Webb
Boat fund
Donations
31 August 2020
Tryfan
James Webb
Boat fund
Donations		 Balance at
1 September
2020
£
105,128
3,724
1,758
-
110,610
Balance at
1 September
2019
£
110,816
6,035
1,758
-
118,609		 Incoming
Resources
£
-
-
-
1,200
1,200
Incoming
Resources
£
-
-
-
12,900
12,900		 Resources
Expended
£
(5,688)
(2,311)
-
(1,200)		 Transfer
£
-
-
-
-
-
Transfer
£
-
-
-
-
-		 Balance at
31 August
2021
£
99,440
1,413
1,758
-
(9,199)
Resources
Expended
£
(5.688)
(2,311)
-
(12,900)		 102,611
Balance at
31 August
2020
£
105,128
3,724
1,758
-
(20,899) 110,610

Tryfan: The balance represents the depreciating value of the Boarding House. James Webb Fund: The fund was set up to provide an assistive technology suite. Boat Fund: Donations received towards the purchase and upkeep of boats.

31

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

18b Unrestricted funds: Designated

31 August 2021
Development
Appeal
31 August 2020
Development
Appeal		 Balance at
1 September
2020
Incoming
Resources
Resources
Expended
£
£
£
179
-
(36)
Balance at
1 September
2020
Incoming
Resources
Resources
Expended
£
£
£
224
-
(45)		 Transfer
Balance at
31 August
2021
£
£
-
143
Transfer
Balance at
31 August
2020
£
£
-
179

Development Appeal: The balance represents the depreciating value of the Chelsea House furniture and equipment, which may now be used for other development purposes.

18c Unrestricted funds

31 August 2021 Balance at Balance at
1 September Incoming Resources Gains/ 31 August
2020 Resources Expended (Losses) 2021
£ £ £ £ £
General reserve
2,545,551		 5,560,311 (5,442,845) 12,681 2,675,698
31 August 2020 Balance at Balance at
1 Incoming Resources Gains/ 31 August
September Resources Expended (Losses) 2020
2019
£ £ £ £ £
General reserve 2,686,825 5,428,053 (5,565,694) (3,633) 2,545,551

32

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

19 Contracts and commitments

There is a capital commitment for nil at 31 August 2021 (2020: £16,030). The prior year amount was to build a 17 bedroom extension to the Augusta girl’s boarding house. The work was done by Best Construction Limited.

20 Operating lease

The lease, covering the school buildings and the grounds, granted by Mostyn Estates expires in 2060.

Total Future minimum lease payments:

Under 1 year
1 – 5 years
After 5 years		 2021
£
85,133
274,944
1,178,100

_1,538,177
2020
£
93,829
302,757
1,213,500
1,610,086

The leases relate to land and buildings, minibuses and equipment.

21 Related party transactions

Charlotte Hart (Governor) is an Associate at Hill Dickinson LLP. Hill Dickinson LLP provided legal services of £13,200 (2020: £10,445) during the year. This provision is in accordance with the College’s governing document. There was a balance of £nil (2020: £288) outstanding at the end of the year.

P Gaskell (Governor) is a member of the Titus Trust who, during the previous years has conducted a summer camp at the College. There was no balance outstanding at the year end. The summer camp was cancelled in the current year and the previous year due to Covid.

Lord Mostyn (Governor) is a director of Mostyn Estates Limited from whom the School leases its property under a lease which expires in 2060. The charge for the year was £35,700 (2020: £35,700). Mostyn Estates also charges the School buildings insurance which was £22,949 for the year (2020: £21,268). There is no balance outstanding at the year end.

33

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

22 Pension costs

Teachers’ Pension Scheme

The College participated in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff up to 30 April 2021 when it exited the scheme. The pension charge for the year includes contributions payable to the TPS for 8 months of £316,721 (2020: £494,830) and at the year-end nil (2020 - £55,873) 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 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.

34

ST DAVID’S COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2021

(continued)

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.

Legal and General Pension Scheme

From 1 May 2021 the College participated in a Legal and General Pension Scheme for all eligible teachers.. The employer contributions being 16.48%. The costs for the year represent the College’s contributions to that schemes for the 4 months of £105,133 (2020: £nil) with a balance unpaid at the year-end of nil (2020: nil).

Group personal pension scheme

The College also participates in two defined contribution group personal pension schemes for employees who are not eligible for membership of the TPS or the Legal and General Pension Scheme. The costs for the year represent the College’s contributions to those schemes of £50,571 (2020: £42,206) with a balance unpaid at the year-end of £4,524 (2020: £6,737).

23 Cash generated from operations

Net surplus (deficit)/ income for the year
Eliminations of non-operating cash flows:
Investment income
Finance costs
Depreciation of tangible fixed assets
Profit on disposal of tangible fixed assets
Proceeds from the disposal of fixed assets
Operating cash flows before movements in
working capital
Decrease/(Increase) in stocks
Increase/(Decrease) in debtors
Increase in creditors (excluding fees in advance
scheme)
Cash generated from operations		 2021
£
109,431
(2,573)
9,624
167,385
3,952
-
287,819
4,640
(1,437)
178,957
___
469,979
 2020
£
(145,685)
(3,130)
7,881
159,953
(2,946)
4,029
20,102
(2,982)
141,529
16,169
___
174,818

35