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2020-08-31-accounts

Charity Registration No. 1076498

Company Registration No. 3779893 (England and Wales)

HURSTPIERPOINT COLLEGE LIMITED

DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

HPPC Accounts YE 310820 Final

HURSTPIERPOINT COLLEGE LIMITED

CONTENTS

Page
Directors’ report:
Company information 1
Reference and Administrative Information 2
Structure, Governance and Management 2
Objectives and Activities 4
Strategies and Policies Supporting the Charitable Objects 5
Strategic Report 7
Review of Achievements and Performance for the Year 7
Public Benefit 15
Financial Review and Results for 2019/20 17
Principal Risks and Uncertainties 19
Going Concern 22
Future Plans 22
Directors’ Responsibilities Statement 24
Independent auditor’s report 25
Statutory financial statements of the Company 28
Notes to the financial statements 33

HURSTPIERPOINT COLLEGE LIMITED

COMPANY INFORMATION YEAR ENDED 31 AUGUST 2020

DIRECTORS AND ADVISORS

Directors A Jarvis [1] (Chairman) Professor J P Bacon [2 ] Dr S Brydie [4] 1 Finance Committee Dr J A Chocqueel-Mangan [1] 2 Education Committee Mrs L J Corbett[2 ] 3 Estate & Operations P M Dillon-Robinson [3] Committee R J Ebdon [1, 3, 5] 4 Safeguarding & Pastoral Dr I S Francis [3] (Appointed 3 March 2020) Committee Mrs F M Hampton [1, 5 ] 5 Governance & Governance & Rev[d] W Kemp Mrs K M Mack [1, 4, 5 ] K S Powell [1 ] Ms L A Rogers (Appointed 3 March 2020 Resigned 26 June 2020) G A Rushton [3, 4 ] Secretary S A Holliday Charity No. 1076498 Company No. 3779893 Principal Address Hurstpierpoint College and College Lane, Hurstpierpoint Registered Office Hassocks BN6 9JS Website www.hppc.co.uk Key Management Personnel Head T J Manly Bursar S A Holliday Head of Prep School I D Pattison Head of Senior School D W Mott Auditors RSM UK Audit LLP Portland, 25 High Street Crawley RH10 1BG Bankers Barclays Bank Plc 1 Churchill Place London E14 5HP Investment Advisers Brewin Dolphin Ltd CCLA 12 Smithfield Street 80 Cheapside London EC1A 9BD London EC2V 6DZ Insurers and Brokers Marsh Limited Capital House, 1-5 Perrymount Road Haywards Heath RH16 3SY Legal Advisors Veale Wasbrough Vizards LLP Moore Barlow LLP Orchard Court, Orchard Lane The Oriel, Sydenham Road Bristol BS1 5WS Guildford GU1 3SR Solicitors Rix & Kay Solicitors LLP 7 The Drive Hove BN3 3JS

Committee Membership:

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DIRECTORS’ REPORT (Continued) YEAR ENDED 31 AUGUST 2020

The directors present their report and financial statements for the year ended 31 August 2020 and confirm they comply with the requirements of the Charities Act 2011, including the Directors’ and Strategic Reports under the Companies Act 2006, and Reporting by Charities Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Report Standard applicable in the UK and Republic of Ireland (FRS 102).

REFERENCE AND ADMINISTRATIVE INFORMATION

The charity Hurstpierpoint College Limited (the ‘College’, ‘Charity’ or ‘Company’) was formed in 1849 and is registered with the Charity Commission as charity number 1076498. It was incorporated in the United Kingdom as a limited liability Company and wholly owned subsidiary of The Woodard Corporation (charity number 1096270) in 1999.

Woodard schools strive for the best all round education of every aspect of each individual; they ensure high standards of religious education; and they see themselves as communities working together for the benefit of all members, and of the Church and the nation. They are strong Christian foundations which adhere to catholic belief as found in the Church, to Christian Worship focused in the Eucharist, and to the care of each individual and the whole school community particularised in the ministry of the Chaplain.

All Directors of the Company are Fellows (members) of The Woodard Corporation, and participate in the election of its board of management and are committed to its charitable objects.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Company is governed by its Articles of Association, adopted by Special Resolution on 20 March 2013 and replacing those dated 6 July 2005 as amended by Special Resolution on 25 January 2006. The Articles permit funds to be managed in such a manner as the directors see fit, provided that such powers are only exercised for the purposes of attaining the objects and in a manner which is legally charitable. They forbid the distribution of any property and funds, which are to be applied solely towards the promotion of the objects of the Company.

Governing Body

The Directors of the Company, who are also the trustees of the Charity, together comprise the governing body of Hurstpierpoint College. Directors determine the general policy of the Company and are responsible for strategic planning and policymaking. They are elected to hold office for five years and are eligible to stand for re-election. The Directors who held office during the year are listed on page 1. None has any beneficial interest in the Company.

Recruitment and Training of Governors

Governors are recruited from a wide range of College contacts and from others in the local community. The governing body looks to ensure a mix of skills, and select new governors on the basis of background, competence, specialist skills and, as Fellows, Christian commitment. Governors are provided with induction training by the Head, Bursar and staff, and a wider programme of training events is organised by The Woodard Corporation. The College also arranges training sessions and encourages governors to attend seminars run by the Association of Governing Bodies of Independent Schools (AGBIS).

Volunteers

Governors are unremunerated volunteers, providing their time to support the governance of the College. The College also relies on a small number of others to undertake volunteer roles, including the management of the College’s equestrian activities and teams.

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Organisational Management

The Directors meet as a Council at least four times each year to determine general policy of the Company and review its overall management and control, for which they are legally responsible. During the year to 31 August 2020 the Council met on twelve occasions as there were a number of additional meetings specifically to consider the impact of the coronavirus pandemic. The work of implementing the majority of the Council’s policies is delegated to a number of committees, membership of which is outlined on page 1.

The Finance Committee has a remit to consider budgets, both revenue and capital, cash flow information and financial reports, including the financial statements. It also considers marketing matters, financial policies and the financial regulations. It makes recommendations to the Council for approval. The Finance Committee met four times during the year.

The Education Committee is responsible for oversight of the academic performance of the College and for educational policy, making recommendations to the Council. It met three times during the year.

The Estate and Operations Committee develops the College’s estates and operational strategy, including capital developments and maintenance of the buildings, and it makes recommendations to the Council. It is also responsible for oversight of the College’s Health and Safety management. It met three times during the year.

The role of the Governance and Nominations Committee is to ensure the Council adheres to the highest standards of internal governance and to consider and propose changes to the membership of the Council. The Committee met twice during the year.

The Safeguarding and Pastoral Committee’s remit is to review and monitor all aspects of pastoral care, including safeguarding, across the College and to provide specific assurance to the Council that the College is fully compliant on child protection matters. The Committee met three times during the year.

The day to day running of the College is the responsibility of the Head and the Bursar, who are both invited to attend governors’ meetings, supported by the Senior Management Team. The day to day administration is undertaken within the policies and procedures approved by the Directors which provide for only significant expenditure decisions and major capital projects to be referred to the Directors for prior approval.

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 school’s success. The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the school remains sensitive to the broader issues of pay and employment conditions elsewhere.

Group Structure and Relationships

The College has three wholly-owned non-charitable subsidiaries – Hurst Facilities Limited, Hurst Transport Limited and Hurst International Limited – the activities and trading of which are described in Note 27 to the accounts, while Note 30 provides details of connected charities.

The College has developed links with a wide range of organisations to ensure the widest possible access to our facilities and schooling. Through membership of the Headmasters' and Headmistresses' Conference, the Independent Association of Prep Schools, the Independent Schools’ Bursars Association, the Boarding Schools Association and the Association of Governing Bodies of Independent Schools and through networking with peer groups we ensure that we are able to attain the highest standards of quality and performance. We encourage our pupils to develop an awareness of the social context of the allround education they receive at the school and they are engaged in a number of activities to enhance their understanding. We have an alumni group, the Old Johnians, who are generous in supporting the work of the College and whose support we greatly appreciate. We also cooperate with many local charities in our ongoing endeavours to widen public access to the schooling we can provide, to optimise the educational use of our cultural and sporting facilities and to awaken in our pupils, in the public interest, an awareness of the social context of the all-round education they receive.

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OBJECTIVES AND ACTIVITIES

Charitable Objects

The Charity’s objects, as set out in the Memorandum of Association, are to promote and extend education in accordance with the doctrines and principles of the Church of England, through the operation of Hurstpierpoint College Limited. Within these Objects, the Charity also has to maintain its heritage endowment, the College with its Grade 2 chapel and listed buildings, and also has various endowed and restricted funds held for special purposes in connection with the development of the College’s facilities as well as for scholarships, bursaries, prizes and other educational purposes.

In setting objectives and planning activities the Directors have given careful consideration to the Charity Commission’s general guidance on charitable purposes and public benefit, and in particular to its supplementary guidance on the advancement of education. Hurstpierpoint College Limited is a charitable trust which seeks to benefit the public through the pursuit of its stated aims. Fees are set at a level to ensure the financial viability of the College and at a level that is consistent with the aim of providing a first-class education to all pupils. The College’s charitable objectives are ‘to promote and extend education’, and these objectives are recognised as benefiting the public when pursued in the context of formal education in a body where all surplus funds are re-invested. The Woodard Corporation Limited and all of the schools it owns are charitable bodies, with no external shareholders and no possibility of making distributions, whether in the form of dividends or otherwise. All surpluses are re-invested in education.

The College welcomes pupils from all backgrounds. To admit a prospective pupil we need to be satisfied that we will be able to educate and develop them to the best of their potential and in line with the general standards achieved by their peers. Entrance interviews and assessments are undertaken to satisfy ourselves and parents that potential pupils can cope with the pace of learning and benefit from the education we provide. An individual’s economic status, gender, ethnicity, race, religion or disability do not form any part of our assessment processes.

The College is an equal opportunity organisation that is committed to a working environment free from any form of discrimination, whether on the grounds of colour, race, ethnicity, religion, sex, sexual orientation, age or disability, and we make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

Charitable Activities

The principal activity of the Charity continues to be the provision of education to pupils ranging from 4 to 18 years of age. It also runs a number of activity sessions during the school holidays which are open to both pupils and non-pupils of the College, and the College facilities are available at other times for use by the local community.

The College comprises three constituent schools. The Senior School is a boarding and day school for pupils aged 13-18, whilst the Preparatory School (which is a day school) is for pupils aged from 7-13. The Pre-Prep is for 4-7 year-olds.

The College provides a very high standard of education and this is validated in review of the academic results, our measurements of added value and through external inspection. It offers a broad curriculum and educates children with a range of abilities. Our aim is to support children in reaching their potential in all areas of their activity at the College. This may be in academic subjects but can just as easily be reflected in success in art, drama, sport, music or dance. We produce well-rounded individuals who make a positive contribution to society.

Grant Making

The College makes a limited number of awards to current pupils to recognise merit and broaden access (see Awards Policy below). It does not make grants to external bodies.

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STRATEGIES AND POLICIES SUPPORTING THE CHARITABLE OBJECTS

Public Benefit Aims and Intended Impact

In order to meet the Charity’s objects, the College aims to create an environment to nurture children, to get the best from them and to allow them to develop and fulfil their full potential. We provide them with a first-class education, independent of the maintained sector, and a wide range of sporting, artistic and extra-curricular opportunities, and our over-arching public benefit aim is that all pupils will have the skills, the confidence and the intention to contribute to the wider community.

In the furtherance of these aims the Directors, as the Charity trustees, have complied with the duty in s.17 of the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act.

Woodard and its schools provide a significant benefit to the public. The College strives to ensure that measures of public benefit are appropriate, and that significant sections of the public are not excluded from the opportunity to benefit from the education and facilities offered due to the need to pay a fee. In addition to significant provision of bursaries and other forms of financial support, the College provides a wide range of opportunities for community benefit and facilities and events are often open to all. Further detail of the public benefit offered is included in the section entitled ‘Review of Achievements and Performance for the Year’ below.

It is a key requirement of evidencing public benefit that any private benefit to individuals or elements of the charity will be incidental to the charity's objectives. An example of private benefit may be the reimbursement of travelling expenses for trustees attending training courses: any private benefit to individuals or elements of The Woodard Corporation Limited are incidental to delivery of the charitable objectives.

Strategic Aims

The College’s over-arching aim is to provide an educational experience which enables every pupil to become an independent, successful, well-grounded individual with excellent self-knowledge and strong values capable of leading worthwhile, happy and rewarding lives and enabling others to do the same. We seek to do this by providing an excellent all-round education with a strong academic core for every pupil in a supportive and understanding culture.

There are four key elements to our strategy:

Academic: Providing an engaging and motivating academic environment with outstanding teachers and coaches operating in the best possible facilities, which thereby enables all our pupils at every level not only to achieve the very best results of which they are capable as they study the most appropriate programmes, but also to develop into confident, skilled and thoughtful learners with effective habits and behaviours.

Co-curricular: Offering a broad and attractive range of co-curricular opportunities accessible to all, delivered by superb staff with excellent facilities, which will thereby enable all our pupils to develop not only the skills, qualities and values necessary for success and happiness in later life, but also the critical quality of self-knowledge.

Pastoral: Creating vibrant, supportive, civilised and civilising communities where pupils can be safe, can feel that they belong and can confidently be themselves in comfortable, high-quality surroundings; supervised, mentored and supported by the best staff possible; thereby enabling them to grow into healthy, well-grounded, balanced, emotionally robust and fully-functioning human beings.

Future Prospects : Offering programmes and experiences designed to encourage and guide both pupils and staff to look to their future lives – not only enabling them to make the best possible career choices, but ensuring that every pupil leaves Hurst with a full understanding and possession of the skills and qualities which will ensure their success and happiness in future years, as well as an awareness of life beyond the purely material and a willingness to embrace a spiritual journey.

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Employment and Access Policies

We are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. We will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

We have an Information & Consultation Agreement with our staff that has been in place since 2008 and which sets out the terms under which we consult with and provide information to them. This was revised in 2019, as a result of which a new Staff Forum was constituted to look after the interests of staff across the College.

It is important to us that access to the education we offer is not restricted to those who can afford our fees. A great deal of learning occurs through social interaction, conversation and shared experiences, and we believe our pupils benefit from learning within a diverse community where they are able to develop an understanding of the perspectives of other people that will be vital in their adult lives.

Our various concessions policies, as detailed below, contribute to a widening of access to the education we offer and the facilities we enjoy. These policies are kept under regular review to ensure that able children can accept offers of places at the College regardless of their parental circumstances and means.

Awards Policy

The College is committed to attracting pupils of the highest calibre through scholarships and other awards; and broadening access by offering means-tested financial support in the form of bursaries to eligible parents (or guardians) to assist with the payment of College fees.

Scholarship awards are given for academic potential; for excellence in the fields of music, art, drama, dance and sport; or on the basis of all-round ability. The awards – which are not subject to means testing – involve a fixed remission of fees of between 5% and 25%. Where further assistance is required, scholarship awards can be supplemented by a means-tested bursary. We also offer a limited number of means-tested BN6 and Sussex awards of up to 100% of basic fees for entrance at 11+ and 16+ respectively, which are available to local pupils of scholarship standard in maintained schools.

Bursaries – which are available to all holders of scholarship awards and are made solely on the basis of parental means – are important in helping to ensure that children from families who would otherwise not be able to afford the fees can access the education we offer. Bursary awards are available for up to 100% of basic fees and additional sums may be provided to meet the cost of extra-curricular activities, equipment and school trips. In addition, bursaries are also available to relieve hardship where a current pupil’s education and future prospects would otherwise be at risk – for example, in the case of redundancy. In assessing means we use the methodology promulgated by the Independent Schools’ Bursars Association, which takes a number of factors into consideration including family income, assets and savings, as well as family circumstances – for example, dependant relatives and the number of siblings.

The criteria for Awards and the application process are detailed in our scholarship information booklets which are published annually and available on the website. The availability of scholarship awards and bursaries is advertised widely throughout the year in the local press and details of the schemes are provided to all parents making enquiries about possible entry to the College.

Details of bursary and other awards are included in the Strategic Report below and in note 3 to the accounts.

Other Assistance

To underline the value we place on continuity for families we offer discounts to parents with more than one child at the College; while as part of our emphasis on attracting and retaining high-calibre staff we continue to offer a discount scheme to members of the teaching staff who choose to educate their children with us.

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STRATEGIC REPORT

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Objectives for 2019/20

This year our primary objectives were to:

as well as continuing work to

Pupil Numbers

Pupil numbers at the College during the year were as follows:

2019/2020 2019/2020 2018/2019 2018/2019
Senior School 829 (386 boarders) 821 (407 boarders)
Preparatory School 296 288
Pre-Preparatory School 59 56
_____ _____
Total 1,184 (386 boarders) 1,165 (407 boarders)
_____ _____

The number of boys and girls educated was as follows:

2019/2020 2019/2020 2018/2019 2018/2019
Boys Girls Boys Girls
Senior School 460 369 443 378
Preparatory School 152 144 150 138
Pre-Preparatory School 25 34 28 28
_____ _____ _____ _____
Total 637 547 621 533
_____ _____ _____ _____

Impact of Coronavirus Pandemic

In March 2020 all schools in the UK were ordered to close to all pupils with the exception of the children of ‘Key Workers’. However, as a result of good strategic planning and investment from an IT perspective, the College was able immediately and very successfully to switch to a remote learning model. With the now long established policy of supplying mobile devices to pupils on a one-to-one basis, and having switched all servers and platforms across to Office365 in the previous academic year, both staff and pupils were ideally placed to provide and share resources, and easily communicate in an ‘online’ world, and this flexibility ensured there was minimal disruption to the curriculum, teaching and learning during the summer term.

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Although the College remained closed to the majority of pupils for the entire summer term, we were able to provide contact days for pupils in the Remove and Lower Sixth at the end of June, while pupils in the Pre-prep and Year 6 of the Prep School were able to return for the second half of the term. Overall however, the focus was very much on on-line teaching and we were able to provide pupils in all year groups with a modified but comprehensive diet of academic lessons, exams and cocurricular activities, including sport and music.

As a result of our inability to provide boarding and the slightly reduced curriculum, the decision was taken to charge discounted day fees for the summer term and, as a result, net fee income for the term was £2.5M lower than anticipated. However, by curtailing all discretionary expenditure and furloughing support staff we were able to reduce expenditure by over £1M, and with receipts of some £¾M under the Governments’ Coronavirus Job Retention Scheme we were able to limit successfully the impact on our financial results for the year to 31[st] August 2020.

We also took the decision to support parents in difficulty by offering hardship bursaries and allowing payment of the summer term’s fees to be deferred for up to twelve months. Over 40 parents took advantage of this interest-free deferral arrangement which was repeated for the Michaelmas term. This has had a limited impact on our cashflow, but our bankers have agreed to defer the repayment of our £3M loan until October 2021, while planned capital expenditure has also been lower than anticipated as a result of unfortunate delays to the construction of our new boarding house, and overall our cash position remains strong.

All our pupils returned in September 2020, including an increase number of boarders, and the College has made a number of adaptations to make social distancing possible, to minimise the likelihood and impact of an outbreak, and to ensure the health and safety of our pupils and staff. These include one-way systems, the mandatory wearing of face masks and a new, temporary kitchen and dining facility situated on our Multi-Use Games Area. We are also making further improvements to our technological provision, to ensure that all staff across the College – including those in the Prep School and Pre-prep – have the necessary resources and training to enable them to teach to pupils whether at home or present in the classroom. The cost of these arrangements is considerable and will impact on the financial results for forthcoming years, but both financially and operationally the College is in a strong position to weather these uncertainties.

Achievement of the Year’s Objectives

Fulfilment of the objectives set for 2019/20 was disrupted by the temporary closure of the College in March as a result of the coronavirus pandemic, but nevertheless the objectives for the year were met in part.

Academic Hurst

In academic terms, 2019/20 was a highly successful year despite the effective closure of the campus for the majority of the summer term and in what turned out to be an extraordinary year – both in the classroom and when we switched to remote learning for a term – our A Level and our GCSE results reached new heights in 2020.

At A Level, 64.5% of our grades were A/As and 27.8% were A grades, whilst our points per entry increased again and the great majority of our results were A, A or B grades. There were 115 A grades in total and 62 pupils gained three As or

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better. In addition to their A2 levels, 81 students successfully completed Level 3 Extended Projects (achieving 97.5% A/B grades) and some also finished extra AS levels. Our BTEC Sport students received another excellent set of results with 90.9% D grades.

Our two top performers achieved five A grades each and easily met the conditions of their university offers. One boy starts on a MPhys degree at Wadham College, Oxford, whilst our top girl (who also completed an A Extended Project) will be reading Physics with Theoretical Physics at Imperial College, London. Four other students obtained four A* grades for their CVs. These grades confirmed a place at Warwick University to study Economics for one student, a second will read Physics at Oxford (where he joins Oriel College) and the last two are both going to the University of Birmingham (one to study Chemistry and one to begin a medical degree).

In terms of medical applications, eight additional students succeeded in gaining entry to their courses. One with three As and an A Extended Project is going to the University of Nottingham along with two other medics, one moves on to the Brighton and Sussex Medical School and two others (one of whom also has three A* grades and an A Extended Project) will read medicine at the University of Exeter. Two further leavers will start medical courses at Birmingham and, in addition, two others have chosen to study Veterinary Medicine at the University of Nottingham.

For the Arts, a girl with two A, one A grade and an A Extended Project, will go to Keble College, Oxford where she will read History and, also studying History next year, is a boy who will start at Gonville and Caius College, Cambridge University.

Others with outstanding results include: one with three A grades, an A Extended Project and a place on the St Andrew’s Geography course; one who gained three A grades and will study Dance; one who has three A and one A grade and has a place at Imperial College, London to read Physics and Theoretical Physics; one with three A grades, an A Extended Project and a place to study Biochemistry at Bath; one who has three A grades and one A and will go to study Ship Science at Southampton; one who is moving on to read Natural Sciences at Durham with three As and one A; one with three A, one A grade and an A Extended Project who has the opportunity to read Law at UCL; one who has a place at Durham to read Physics with Astronomy having gained three A, one A and an A Extended Project; one who has three A grades and an A Extended Project and will proceed to Imperial College, London to study Computing; and one who will go to the University of Exeter to study Psychology with Sport and Exercise Science having achieved three A and an A Extended Project.

Eighty-four percent of our A-level leavers secured their places at their first-choice universities and 70 are going on to Russell Group universities such as: Bristol, Cardiff, King’s College (University of London), Leeds, Manchester and York.

The percentage of top grades (9s and 8s) achieved in 2020 was our highest ever as more than 1,100 9-8 grades were awarded at GCSE level. Other score lines were equally pleasing with 90.9% 9-7 and 97.8% 9-6 grades being achieved. In a year group of 161, 92 pupils had only 9-7 grades on their statements of results, 89 of last year’s Fifth Form gained eight or more 9-8 passes, and 107 had nine or more 9-7 graded subjects; nine had nothing but 9s on their GCSE statements of results.

Students in Art & Design, Dance, Classical Greek and Latin had 100% 9 and 8 grades and all the grades in Biology, Chemistry and Physics were 9s, 8s or 7s. Drama, English Language, English Literature and Music all achieved over 90% grades 9-7 and 25 pupils gained 9s in Further Mathematics.

Eight pupils gained 11 9s apiece and close behind them came five others who each collected 10 9s and one 8. Eleven further pupils collected 11 or more 9-8 grades and an additional 23 students collected 11 or more 9-7 grades.

Pupil Welfare

The College continues to make the welfare of its pupils a high priority. In the Pre-Prep and Prep Schools, the tutors and Heads of Year provide the basis of the pastoral support, assisted by the Director of Safeguarding and members of the Senior Management Team as necessary. The Pastoral Intervention Practitioner works with a large number of individuals and small groups.

All pupils in the Senior School have a House Parent who is responsible for their pastoral care and a tutor responsible for their academic development. In addition, pupils have access to professional counsellors who visit the College on four afternoons a week, as well as to medical help in the College’s Medical Centre.

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The Guardian Scheme has continued to work well in both the Prep and Senior School, with the pupils given appropriate training on how to actively support their peers.

Tutors and House-Parents communicate regularly with parents, particularly when there is a concern about a pupil’s welfare. AS Tracking was used for pupils in years 5 – 9 to help identify pupils who were struggling emotionally. This enabled action plans to be put in place to ensure that the pupil felt fully supported. In addition, social events are organised in houses to help pupils integrate, and parents are also invited to attend talks on pastoral issues such as online safety and mental health.

Student Councils are also run throughout the school, allowing pupils to give their feedback on any arising issues.

Despite COVID 19 and the national lockdown, daily communications continued between tutors/Housemasters and Housemistresses and the pupils. There were regular meetings via Teams which enabled the school to identify pupils who were struggling. The Deputy Head Pastoral and Director of Safeguarding met frequently to discuss pupils of concern and ensured that additional communications were in place.

This provision is directed and monitored by the Deputy Head Pastoral and the Director of Safeguarding, who work closely together to ensure that all pupils in the College feel safe and able to flourish .

. Creative Hurst

The 2019-20 Drama season, our second in the New Bury Theatre, was intended to extend our exploration of a broad range of diverse and challenging productions allowing all students in the school an opportunity to engage with theatre making throughout the year under the theme of ‘Trial & Redemption’. As is the case for the College as a whole a significant portion of our programming was either curtailed or very quickly adapted to the remote learning format.

Our link to the Hurst Festival is an important one and this year’s production saw a group of Sixth Form Scholars take on a series of short plays by Samuel Beckett performed in the Players Theatre, Hurstpierpoint to very positive feedback from the local residents and the Festival hierarchy.

The sixth edition of Hurst in Rep was once again dominated by productions directed from within the student body. This part of our Drama season has become a popular forum for Extended Project Qualifications and provides a platform for our students to explore the skills required to both write and direct. Over 100 students auditioned for the six plays and rehearsals began in earnest for the regular performance dates before half term. Sadly, these performances were never to be realised following the tragic death of a member of our Upper Sixth and the period of mourning which followed for the whole community.

During the half term vacation 40 of our students became supporting artists for film shoot based on the campus. The film, entitled ‘Dolapo is fine’ based on the short story by Nigerian author Chibundu Onuzo was produced by Apatan Productions (co-founded by one of our alumni) and included in the cast actress Gina McKee. This was a fantastic opportunity to work on a professional film set with a very talented team as well as looking at the possibilities there might be for using the campus for similar projects in the future. Following the films completion and release it was entered for a number of film festivals around the world and was selected as the Best Short Film at the HBO American Black Film Festival 2020. It is likely that more awards will be forthcoming and fantastic for the College to be linked to such an exciting project.

The second half of Michaelmas saw the annual Hurst Shakespeare hit a number of firsts. A Midsummer Night’s Dream is a Shakespearean classic, but this production was going to be far from that. The concept and design came from the extraordinary mind of our Head Girl and Drama Scholar, and transferred the Athenian countryside into the world of music festivals and rock bands. This was the first time that a full-scale production has been conceived by a member of the student body, as well as the first use of the thrust configuration of the New Bury Theatre, and was the perfect blend of farce, satire and youthful exuberance which teetered on the brink of risqué at every possible moment without ever going too far. For the second year we added a Schools Matinee with saw four of our feeder Prep Schools attend with incredibly favourable results, but it was the parental response which was perhaps the most rewarding element of this production. To be commended for allowing the students to be brave and express themselves without taking it too far by the people who have chosen to send the children here is the highest accolade one can ask for and ‘Dreamfest’ will live long in the memory as a result.

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For the Senior musical we again took on the challenge of Boubil and Schonberg’s epic ‘Les Misérables’. A total of 95 students auditioned, including a record number of the Upper Sixth, some of whom traded the rugby pitches for the stage in their first, and last, foray in acting before leaving Hurst. There is no doubt that this production took the level of artistic achievement in this College to the highest level it has ever been in all areas of theatre-making. The complexity of technical and design elements a revolving stage and replica guns on stage made this a spectacle on a professional level but what was perhaps more surprising to the 1,000 strong audience members across the run of performances was the level of skill displayed by the cast. Either in the packed Schools Matinee performances or in each of the full houses in the evenings this group of students delivered theatre craft on a spectacular level and, rather like the Gala Opening of the New Bury, a true sense of what Hurst is about was achieved.

The 9[th] Annual Hurst Film Awards were filmed over a six-week period in the Lent Term, once again giving students a platform to write, direct and shot short films of genuine quality. The early stages of lockdown came into place just before the traditional, whole-school screening and awards ceremony, and we very quickly switched to an online live stream which over 1,200 students and their families tuned into. The awards announcements were released later in the Summer term using a similar format.

As well as the Film Awards, the Year 8 musical ‘Beauty and the Beast’ became the first live production to be filmed and the end result included a superb performance of the show, along with backstage footage and interviews with the young cast members. Although not the same as performing live, this was a clear indication that we had the wherewithal to respond very quickly to what was to become a very different way of delivering Drama at Hurst.

With lockdown and remote learning fully in place the Summer term saw us switch to other theatrical genres to take the place of the live theatre we would normally produce. Both the Year 7 play (‘The Lion, the Witch and the Wardrobe’) and the Shell musical (‘Fame’) went into weekly Teams rehearsals, while the art of radio drama was explored by activities groups from Year 7-Remove, and the lower sixth drama scholars produced a piece of online theatre based on the practices of Antonin Artaud and the Theatre of Cruelty.

Across the year we entered six candidates with five gaining places at drama colleges including ALRA and Emil Dale. The college’s LAMDA team continue to help pupils achieve at the highest level and this year saw us reach 100% of the exam candidates achieving merits and distinctions over the course of the year. Hurst now has the largest school LAMDA programme in the South East as well as one of the highest mean scores.

The dance department this year established a creative partnership with renowned professional dance company, James Wilton Dance and, as part of the Hurst Festival in September, students from Remove to Upper Sixth – both boys and girls – collaborated on a curtain-raiser based on the company’s piece, ‘The Storm’.

The annual Dance Showcase was based on choreographer, Jasmin Vardimon’s version of ‘Pinocchio’ and consisted of a 40strong cast (again both male and female) and ranging from Shell to the Upper Sixth. As always, the performances were well attended and reflected the increasing technical ability of the dancers at the College. To further enrich the students’ experience of participating in the Showcase, a dancer from the Jasmin Vardimon company delivered a workshop based on the work, to introduce the students to the unique and quirky dance style.

The new state-of-the-art dance studio opened in January 2020 and is testament to the value Hurst places on dance as an important part of its performing arts offering. Co-curricular clubs continue to range from Royal Academy of Dancing Ballet Examinations, Contemporary, Street Dance and Pilates, while new for this year was the introduction of Tap in both the Senior and Prep School. The year also saw an increase in applications for a dance scholarship from both internal and external candidates which reflects the growing reputation and appeal of dance at Hurst. In addition, the Hurst Dance Instagram account has seen an increase in followers which now totals 310.

One of the first performances to be presented in the new dance studio was the Academic Dance Sharing with two A-Level candidates and six GCSE candidates, along with their dancers from various year groups, celebrating their work with a live audience. The event was well attended, and the quality and originality of the work was outstanding.

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During lockdown students continued to receive a regular dance provision in the form of thrice weekly Pilates and dance technique sessions via Zoom. Students were given the opportunity to continue with developing their alignment, breathing and centring via Pilates as well as improve on their existing contemporary, jazz and street dance technique. During this period the House Dance Competition was also launched based on a Tik Tok routine. The majority of Houses – including the boys’ houses – submitted an entry, and the winners were Pelican House. It is hoped that this competition will gather momentum in subsequent years.

The Shell Creative Arts Project was based on the theme of ‘Climate Change and Environmental Challenges’, suitably adapted to suit remote learning. Drawing upon all four creative disciplines, dance, music, drama and art, the Shell students were asked to create a 1-minute short film that communicated a chosen theme in response to the theme. The level of creativity displayed within the year group was high with well conceptualised, professionally edited and thought-provoking pieces being submitted.

Students accessing dance beyond Hurst include an offer at University of Kingston for BA (Hons) Dance and a place at Emil Dale Academy of Performing Arts (EDA).

2019/20 was another packed year in the Music School. We were pleased to be able to contribute as usual to the Hurst Festival, providing a recital given by the music scholars and an afternoon’s entertainment with tea and cake at College. The House Music competition involved everybody in the Senior School singing with their respective houses and was streamed live to parents on YouTube, this time with live commentary to add to the experience for those watching at home. Recruitment and retention of pupils in the choir was successful and the number of regular members was maintained at over 120. The choir sang a different anthem at every Friday chapel service and again excelled particularly in the candle-lit Advent Procession, the festival of nine lessons and carols, and the Leavers’ Eucharist. The Chamber Choir performed both in its own concert and at a variety of others giving a memorable performance of anthems and other short pieces by John Rutter and Herbert Howells with a professional orchestra and with pupil soloists from within the choir. In addition, our Sixth Form pupils gave a very well-received and polished concert in Holy Trinity Church, Hurstpierpoint, as the colleges regular contribution to the church’s professional concert series, and the choral society of parents and friends gave a performance of John Rutter’s ‘Magnificat’ in the College Chapel, accompanied by a professional orchestra.

As with every year, the Music Department was pleased and privileged to play a large part in the College Musical, Les Misérables which is sung throughout, and once again it was good to see a number of pupils playing in the band alongside professional musicians.

The jazz and rock concert took place again in the New Bury Theatre and this helped to raise the profile of the event at which the standard of performance was very high indeed from a number of bands and soloists from the Shell to the Upper Sixth. The ‘Hurst Unplugged’ acoustic concert was well-attended, and it was good to collaborate with the English department to include poetry readings in this lovely evening in the music school. Jazz and rock music continue to thrive at Hurst and these performance opportunities were all highly successful events – it is good to see them evolving and improving each year. The College Orchestra continues to thrive and, this year played music by Beethoven and Bizet. Many of the orchestra’s instrumentalists also play in the College’s numerous smaller instrumental ensembles, all of which performed in the Michaelmas term.

Individually our pupils achieved success in our own solo music competition. A typically large number of pupils at the college achieved grade 8 on their instrument or voice, with a number playing in the Brighton Youth Orchestra, as well as singing with the National Youth Choir.

Prep school music remained very strong with a full calendar of events throughout the year. In addition to the excellent informal concerts, other highlights included the winter concert showcasing the various orchestras and ensembles, the jazz concert in the Lent term, and the more informal musical showcase in the Michaelmas term.

Our pupils responded to the challenge of remote music through lockdown with impressive zeal. Over the course of the Summer Term, the Music Department put together a virtual choir anthem for our virtual chapel offerings every week – all of which are visible on the College YouTube channel. All of the hymns for our on-line chapel services were recorded on a digital organ and staff sung along to them remotely, to create a remote congregation. Jerusalem for the Leavers' Service

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included over seventy videos of pupils, their families and staff all singing together, while online performances ‘One Day More’ from Les Misérables and ‘Hard Work’ from Fame were produced for inclusion in the College’s remote Speech Day.

Hurst’n’Brie, one of the College's three annual rock concerts, took place virtually and included soloists who recorded themselves and groups similar to the choir mentioned above. Many of the pupils edited their own work together and it was good to see the inventive ways in which they approached this. To put together and hour of remote material was very impressive indeed and all credit to these pupils for their enthusiasm for the project.

There were also a number of smaller projects which took place over the summer term: the orchestra put together two pieces remotely, providing audio tracks that they played along to a click-track; the sax ensemble provided a remote performance of one of their most recent pieces; and the staff took part in various online musical ventures.

Sporting Hurst

At the time of writing, we find ourselves in the middle of a pandemic which has certainly made life challenging. Globally we are all having to come to terms with a new way of living and working, and this has been the case for a significant part of this reporting period. Recreating the classroom for our pupils has been difficult, but to recreate the sporting arena has been even harder. During lockdown and the subsequent period of remote learning the College’s sports department has worked hard to substitute the normal sports diet with one which could be embraced by all our pupils – to from home and, more latterly, at school. The constraints imposed by the various sports’ governing bodies, as well as by central government, have been limiting, but throughout this period the College has tried to deliver a programme which is both engaging and safe. Indeed, our efforts have not gone unrecognised, with positive feedback being received from parents and pupils alike.

If this recognition was not enough then the Independent Schools of the Year 2020 Award for Sporting Achievement, which we received on 8[th] October was confirmation that Hurst continues to be a shining light in the school sporting environment. This award recognised not only the breadth and depth of our sports programme, but also the way the College adapted to the remote learning environment, as well as our provision for the community in terms of key worker children. The following is an extract from our website article on the award which reflects the work done over the course of the year and highlights the industry and commitment of many.

‘During the virtual ceremony, the judges said their decision to present this award to Hurst College was due to its focus on recognising the physical and mental value of sport and sharing the benefits with the wider community, including the children of key workers during lockdown.

Hurst has not only established an enviable reputation for the quality, breadth and inclusivity of its sporting provision, but also for the passion and commitment of its talented hard-working team to ensure each pupil develops a lifelong love of sport and physical activity.

As part of a caring community, equal attention is given to those who simply want to participate as well as the elite performers. With extensive on-site facilities, the ambition is to create an activity diet that engages pupils in an enjoyable, challenging and meaningful way, through traditional team sports, individual sports and outdoor pursuits.

Central to the programme is pupils’ physical and mental wellbeing, demonstrated by the unique player welfare programme, with qualified physiotherapists who triage, monitor injuries and support rehabilitation, in conjunction with strength and conditioning coaches.

Seen as leaders in the community and an example of excellence, others look to Hurst's innovative, outward-looking approach, developed not only with the best interests of our own students at heart, but for the good of sport in the wider area. The creation of the Sussex Independent School Diamond League Athletics Programme is the latest of many initiatives which have proved popular.

The college has forged strong links with maintained schools by hosting development days, as well as being a hub for Surrey Storm Netball South and Sussex County Cricket academies, a feeder for the Harlequins Rugby Development Programme and the base for Sussex Hockey. Hurst also organises and plays host to regional and national competitions and events in a variety of sports.

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One hundred teams across all ages and levels of sporting ability compete throughout the year - the result of a carefully crafted development programme which has delivered sustained success at regional and national competitions, and which has also taught pupils important life skills along the way.

With the unprecedented circumstances surrounding COVID-19, our Sports Department responded to the unique challenge of remote learning by implementing alternative ways of engagement and successfully delivered a comprehensive programme, including on-site options for children of key workers, which received universal praise from students and parents.

This creative and dynamic approach has continued since pupils have returned to the College for the new academic year, with year-group athletics and cross-country events. These have proved extremely popular and a valuable opportunity for students and houses to come together.

Successful collaboration with pupils and parents as well as a constant desire to improve is the driving force behind a high-quality programme of which Hurst is justifiably proud.’

The only frustration we have had with this particular year is that so many of the planned improvements we had wanted to make to our development programme have been stalled. Despite this, our major sports of rugby, hockey, netball and cricket remain strong both in the Senior and the Prep schools and cricket has had a major boost from the completion of our new artificial nets.

As befits a school of our size, the sports programme continues to expand, and interest in and support for a number of other sports is growing. Golf is increasing in popularity; and we have a steady stream of golfers heading to the driving range in Burgess Hill on a weekly basis and planed competitions are becoming more numerous. Tennis and Swimming are now yearround sports and, when competition resumes, we expect to see greater participation and success in both.

Athletics has also had an injection of energy in the past year and the advent of the Diamond League – including a virtual Diamond League in the Summer which was well supported by neighbouring schools – has helped promote the sport both internally and across the county. Further refinements of this initiative are planned.

Whilst the dearth of the usual diet of fixtures makes it difficult to comment on competitive sport, there is no question that the College is still well placed to meet with huge success moving forward. As an example, our U15A netball team were due to play two national competition semi -finals just as we went into lockdown, and we had a number of hockey teams who had their seasons curtailed in the same way when they were set to win county competitions. We have strong teams and a real depth of talent in all our major sports, which is reflective both of the high standard of coaching provided as well as the talented pupils we now attract. Although this has been a difficult year for sports, there is a lot of which we can be justifiably proud, and we remain confident that Hurst Sport will be even more successful into the future.

Activity Hurst

Outdoor Education and Pursuits are a regular part of the games programme and an established part of our provision for all year groups across the College as both an alternative and in addition to other sports. Activities available during the year include kayaking, canoeing, surfing, windsurfing, sailing, paddle-boarding, skiing, triathlon, mountain-biking, archery, climbing and bouldering. In competitions we have six ski teams, two triathlon teams, and number of equestrian teams, as well as a mixed surf team.

An increase in participation has led to greater competitive success, with Hurst again (and for the sixth year) taking the majority of medals and joint first place overall at the Independent Schools Ski Championships. In addition, this year the College entered a team in both the National Schoolboys’ and Schoolgirls’ ski races, and won medals at both. Two pupils are now part of the England Squad and four more race for DHO, a national club. In climbing, the College team also entered the 2019 Independent School championships, gaining one gold, two silver and three bronze medals.

This year some 255 pupils were enrolled on the Duke of Edinburgh award scheme. There were 35 Gold enrolments, and 14 students successfully completed the Gold award, with another 6 expected to complete the expedition by the end of the year. The success rate at silver was also impressive, with over three-quarters of participants gaining the award by the end of the

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Lower Sixth. In addition, the College continued to offer training sessions to the county and to local schools in the web-based pupil registration and recording system for DoE award participants. We have also been very happy with the way our DofE candidates and pupils have been able to continue most of their DofE award during lockdown and the subsequent restrictions.

The weekly Duke of Edinburgh service afternoon – and especially the Combined Cadet Force – continues to increase in popularity, allowing pupils to broaden their horizons through volunteering, leadership and self-reliance. During the year there were an increasing number of community service schemes – including recycling, woodland conservation, farming, community service and the College’s in-house crèche – and these projects are now well-established, worthwhile and popular, with over 250 students regularly involved. Most encouragingly, we also now have introduced L6th Skills activities this year and these include CAG, Languages, First Aid, STEM and CREST.

The activity programme for years 9 and 10 – which includes self-defence, farming skills, kayaking, fencing and shooting – adds a further dimension to the rich and rounded education received by all pupils at Hurst, and the annual Shell multi-activity day and the L6th leadership induction day also contribute greatly to the development of pupils’ team building skills and their understanding of leadership and management.

PUBLIC BENEFIT

Bursaries and Scholarships

The College aims to provide opportunities for a wide range of people, particularly those in need, to access benefits from the Charity.

Scholarships are used to ensure that we are able to maintain high standards in all areas at the College. The total value of scholarships awarded in the year was £1.40M. The progress of pupils receiving scholarships is reviewed at least annually to ensure their progress is in line with their abilities. One scholarship was withdrawn in the year for disciplinary reasons.

The College Endowment Fund was established in 2003 in order to build an endowment that will in future be used to provide bursarial support to talented pupils whose family circumstances would otherwise prevent them from attending the College. It is funded by regular donations from existing parents and transfers from unrestricted funds, but also includes a number of substantial legacies from past pupils. At the end of the year the value of the Endowment and associated Funds had increased to £3.6M. The College is extremely grateful to all those who contribute to this cause.

The coronavirus pandemic and nationwide lock-down in the spring caused substantial hardship to a number of our fee-paying parents. As a result, the College introduced a hardship programme, including the opportunity to defer payment of the summer term’s fees for up to twelve months and one-off bursaries to support those whose income had been impacted temporarily. These awards were funded in part by a number of parents who, rather than paying the reduced fees charged by the College in the summer term, paid full fees and donated the discount that they had declined to a special hardship fund, and we are particularly grateful to them.

During the year the College provided scholarships, bursaries and other awards exceeding £3.08M to pupils at the College from unrestricted funds. This included means-tested bursaries with a total value of £853,000 to 120 children both to supplement scholarship awards and in cases of hardship where the pupil’s education and future prospects would otherwise be at risk. The total of 120 included 39 children who received support in the summer term from a special coronavirus hardship fund created to provide temporary support to those families whose income was affected by COVID-19. 8 pupils received assistance (comprising scholarships, external grants and bursaries) for 100% of fees and 13 others received assistance for at least 80% of fees.

In funding our awards from income we have to be mindful that we must ensure a balance between fee-paying parents – many of whom make considerable personal sacrifices to fund their child’s education – and those benefiting from the awards. Overall, the concessions provided by the College represented 12.4% of gross fee income.

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Wider Education

Hurst remains very committed to using its resources – both financial and human – to support and strengthen wider education provision beyond the confines of the College.

At a time of national teacher shortages, we continue to be highly successful in encouraging a significant number of graduates and others into the teaching profession through our three-year teacher training programme, Teach Hurst. This programme, which offers high-quality, fully-funded training, continues to attract an ever-growing cohort of applicants. Over the course of the year, 12 Teach Hurst trainees successfully completed their year as NQTs; 5 were awarded a distinction, 2 a merit and 1 a pass for their PGCE completed through Sussex University; while in-house training and support was provided for a further 12 graduate teachers.

At the end of the summer term, in response to the COVID 19 restrictions, the College offered the use of its facilities and some staffing provision to local primary schools to allow them to have their pupils back in lessons in a safe environment. Albourne C of E Primary school took up this offer and 76 pupils from years 3, 4 and 5 each spent a day here at Hurst. Thus, Albourne school’s pupils and teachers were able to reunite on the College campus for the first time since the lockdown began in March. Activity sessions included street dance, the farm, music and the forest school, plus each year group enjoyed a mini sports day in the afternoon. Feedback from the Head Teacher affirmed the importance of this initiative . ‘We are so grateful to our neighbours at Hurst College for hosting and leading these three days for us. Staff and children had a wonderful time; “The best day ever” I was told by several pupils. We look forward to continuing the partnership next year.’

Over the past year, COVID 19 restrictions curtailed a number of collaborative initiatives that had been set up with the Sir Robert Woodard Academy (SRWA). However, for the duration of the academic year, Hurst funded one of our teachers to successfully work, on a part time basis, in the History department at SRWA filling a staffing need. Our Deputy Head has continued as a governor at SRWA and currently chairs their Curriculum Committee; in this capacity, he has shared his expertise in the leadership and governance of the School. Other teachers from Hurst also play a role in local state schools on the board of Governors. Hurst is also proud to have facilitated mock interview practice for 3 prospective Oxbridge applicants from the Littlehampton Academy. One of our teachers has supported the rugby programme in a local secondary school by offering his services to referee several matches over the course of last season.

Several of our teachers are involved in professional bodies and contribute to the wider field of education debate and research through the publication of articles across a variety of media. Our Head of Drama remains the Chair of The National Association for the Teaching of Drama, running workshops and conferences for Drama Teachers across the country to develop teaching and learning. Over the lockdown period, he presented at 3 conferences guiding teachers through how to teach drama remotely and through blended learning approach. Our Director of Pupil and Staff Well-being continues to share his expertise in articles that have been published online through the TES, and articles for Optimus Education under the broad area of Wellbeing, and he also spoke at the online Optimus Education conference On Wellbeing in May.

Community Hurst

The College is a part of a wider community and we are keen that our staff and pupils participate. In September 2019 we were actively involved again in the local Arts Festival, staging College productions together with events such as Cake at the College (a musical event for local senior citizens) and tours of the College, as well as offering facilities, vehicles and equipment for festival use.

By developing and providing public access to new facilities, the College remains at the heart of the community. Facilities made available to the public include:

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We also run a choral society for parents and members of the local community; and the College and Prep School Jazz Bands, Choirs and other groups regularly perform at charity and fund-raising events across the locality; while numerous arts events at the College – including plays, concerts and dance performances – are open to the public.

Wider Charitable Activity

As well as supporting the local community through community service activities – including conservation, helping in old people’s homes and youth residential centres – the College community takes part in a wide range of sponsored events and other fundraising activities. Unfortunately, the College service day and numerous other charity initiatives did not take place because of the COVID 19 restrictions, but the course of the year through the efforts of pupils, parents and staff, the College raised over £13,900 for various charities.

FINANCIAL REVIEW AND RESULTS FOR 2019/20

In financial terms 2019/20 was another extremely successful year notwithstanding the impact of the coronavirus pandemic which, as already noted, forced the closure of the College just before the end of the Lent term and for much of the summer term for all pupils except for a small number of children of key workers and for limited numbers of children in the Prep School who returned to school in the latter half of the summer term as the lockdown measures were eased. As a result, fees for the summer term were reduced and discounts of between 20% and 50% offered on the College’s usual day fees to reflect the limited educational offering. Using the Key Performance Indicators of the company:

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Our main trading Company, Hurst Facilities Limited, continues to hire out College facilities during vacations and school hours, as well as undertaking commercial activity on behalf of the school and externally (although the main educational letting is undertaken by the charity itself). The Company contributed the sum of £28,900 to the College’s operating surplus in 2019/20.

The parents of our pupils often make significant sacrifices to pay the fees. In doing so they help to relieve the state of the financial burden of educating nearly 1,200 children. This saving to the state is estimated to have a value in the last year of £7.7M.

The Company is unable to recover the VAT on purchases it makes. During the past year, the College has paid an estimated £1.05M in VAT on goods and services.

The College provides a pension to some staff under the terms of the TPT Retirement Solutions Growth Plan. As a result of this pension scheme being under-funded, the College is committed to contributing to a recovery plan. During the course of the year it made contributions to the recovery plan of £32,000 and the recognised liability under the plan fell by £29,000, with this value being recognised in the Statement of Financial Activities (‘SOFA’). Further details can be found in note 26.

Development of the College Estate

Over the year expenditure on improvements to College facilities totalled £6.4M: including

Investment Performance against Objectives

The Company’s Memorandum and Articles of Association permit funds to be invested in such manner as the directors see fit, provided that such powers of investment are only exercised for the purpose of attaining the objects and in a manner that is legally charitable. The governing body’s policy is to preserve the capital value of investments and maximise the long-term return on all investments in order to build a sustainable endowment of sufficient size to provide full bursaries to two pupils in each academic cohort in the Senior School.

Investment activities are managed in line with the requirements of the Trustee Act 2000. In 2019 the Company commenced an external investment programme for its restricted and endowed funds and appointed Brewin Dolphin and CCLA to manage its investment portfolio. To date, some £1.46M has been placed with the investment managers, including the funds previously managed by the Company’s previous fund managers.

The investment managers have discretion about how the investments are managed within the policy parameters set by the governors. The investment targets are to preserve the real value of investments against inflation and to achieve a minimum yield of 3%. Over the course of the year Brewin Dolphin achieved a return of 2.63% on the Company’s investments against their benchmark of -0.42%, while CCLA achieved a return of 3.58% compared with their comparator performance return of -2.94%.

Reserves Level and Policy, and Financial Viability

During the year, total Group funds increased by a further £2.53M to £35.87M, of which less than £3.9M were restricted or endowed funds. Unrestricted funds increased by £2.09M to £31.97M as shown in Note 23c. In common with most independent schools, the Charity’s unrestricted reserves are primarily invested in tangible fixed assets, which are all used for

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its direct charitable activities – see Note 24. This utilisation of funds is essential to ensure that high quality up-to-date facilities are available for the benefit of pupils and in order to meet the increasing expectations of our parents.

The College’s financial viability does not depend on income reserves but in its ability to continue to trade at a surplus on an annual basis and on the substantial portfolio of fixed assets held for operational use. The aim is to budget so as to provide sufficient working capital to meet the present needs and future development requirements of the College without the requirement to have recourse to sales of tangible fixed assets.

The Directors consider that given the strength of the company’s balance sheet, the stable cash flow generated by full student rolls, the ongoing popularity of the College, and the available banking facility that can be called upon if need arises, there is no need to build up a free reserve.

PRINCIPAL RISKS AND UNCERTAINTIES

Coronavirus Pandemic

It should be noted that these financial statements were compiled during the COVID-19 global pandemic and before a vaccine was identified. Like most trustees, the Directors keep under consideration the impact of a catastrophic event on the College’s ability to continue, but that event may come about from any one of a number of causes and being specific about the source is not possible. The consideration of risks in the paragraphs below is therefore reflective of a more stable environment and does not specifically look at the pandemic, or other similar events, but offers a wider view of common events plus a specific risk looking at those events that could impact the continuity of education.

Risk Management

The Directors are responsible for the identification and management of risks, and the major risks to which the charity is exposed have been reviewed and systems or procedures have been established for their management.

A detailed review of the strategic and operational risks to which the charity is exposed is undertaken annually by the governing body, and risk management is delegated to the relevant committee, which reviews the risks assigned to it on a termly basis, works with the Senior Management Team to establish controls and identify actions necessary to mitigate those risks, and reports termly to the Council on the effectiveness of the assurance measures in place.

During the pandemic, and fully cognisant of the additional risks and uncertainties facing the College, the Directors have met on at least once each month to review progress and to approve changes to the College’s Health and Safety and Safeguarding procedures. They have also undertaken a separate analysis of the short- and medium-term risks pertaining to the pandemic and the measures being taken to militate and mitigate against them, and these are currently being reviewed on at least a termly basis by the governing body and its committees.

Principal Risks Facing the Charity

The Director consider the economic turbulence of recent years and the affordability of fees by parents across the independent sector to be the principal risk faced by the College. The College is currently full, but there is no room for complacency. The governing body, therefore, decided several years ago to limit the annual increase in fees to the wage inflation rate and for the past 9 years fee increases have been limited to 3%, which has often been lower that the increases imposed by many of our competitor schools. This year, in the light of the financial challenges affecting many of our parents, the decision was taken to freeze fees at their previous level for the 2020-21 academic year.

Health and Safety is always a significant area for risk management. The risks range from fire and infrastructure to personal risks (most notably when away from the campus on trips and expeditions). Hurst is committed to the health, safety and welfare of all of its pupils and employees, and we review our policies and procedures on a frequent basis. The level and breadth of activity at the College is impressive and the risks associated with all activities are minimised by thorough careful planning and risk assessment. During the year a number of additional measures have been taken to enhance our Health and

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Safety procedures and management, including major improvements to our fire protection systems, as we strive to achieve best-practice on all Health and Safety matters across the College.

Otherwise, the principal risks to which the College is exposed include those affecting protection of pupils and security and preservation of charitable assets both now and in the future. Significant risk areas include:

Finally, and not least, the independent school sector as a whole is subject to various financial and political pressures and uncertainties and the College is not immune from these. These include threats to our independent and charitable status; threats which could have a material impact on costs and income, such as the possible imposition of VAT on school fees and the removal of charitable business rate relief; and general cost pressures, including the recent substantial increase in employer contributions to the Teachers’ Pension Scheme. In the light of these uncertainties the Directors and senior managers in the College strive to keep abreast of issues, identify trends, develop plans to mitigate financial risks, and contain costs wherever possible.

Statement on Brexit

Following the outcome of the UK referendum on European Union membership, the UK left the European Union on 31[st] January 2020. In preparation for this date, and in anticipation of the transition period, the school reviewed operations to understand and plan for the initial impact from Brexit. Guidance was also available from a number of sources including the Independent Schools Bursars Association. At this stage it is not possible to implement comprehensive policies for all possible changes as the future trade, visa and travel agreements are not yet in place. The College will continue to work with relevant authorities, staff, parents and suppliers to fully understand the impact in all areas including particularly visa requirements, the supply chain and data handling and protection, in order to minimise risk and potential disruption.

How the Board Complies with its Section 172 Duty

Section 172 (1) of the Companies Act 2006 (Statement of Director’s Duties to Stakeholders) requires directors to act in good faith to promote the success of the charity for the benefit of its members, and in doing so have regard (amongst other matters) to:

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DIRECTORS’ REPORT (Continued) YEAR ENDED 31 AUGUST 2020

The Directors welcome the new reporting requirement as an opportunity to explain how dialogue with stakeholders has informed and helped to shape its decisions in promoting the success of the Schools to achieve its charitable purposes.

As set out on page 3 within ‘Group Structure and Relationships’ the College has developed links with a wide range of organisations to ensure the widest possible access tour facilities and education. Through membership of HMC, IAPS, AGBIS and ISBA and through networking with peer groups we ensure that we are able to attain the highest standards of quality and performance.

Details of how the College has engaged with employees and had regard to employee interests can be found within the employment policy on page 6, and details of volunteer engagement can be found on page 2.

The Directors can demonstrate the promotion and success of the charity for the benefit of the stakeholders through the review or achievements and performance for the year, included within this Strategic Report and, for example, the College continued to provide access to high quality academic education and to pastoral and social support throughout the period of the school closure during the summer term. The College also plays an important role in providing activities for local community groups and access to its facilities.

The Directors are responsible for strategic planning and policymaking at the College and, accordingly, all key decisions, the current performance and future longer-term plans of the Charity and stakeholders are referred to and taken by the governing body. The organisational management and corporate governance arrangements of the College are detailed on page 3.

As set out in the Strategic report, our culture, and our staff, volunteer and pupil welfare and wellbeing throughout the COVID-19 period have been fundamental to the College’s continued success. Further information can be found in our Strategic Report and the detailed review of achievements and performance for the year.

Energy and Carbon Reporting

The company has taken advantage of the exemption to comply with the Energy and Carbon Report Regulations 2018 as a subsidiary of the Woodard Corporation Limited.

Key Controls

The key controls used by the College include:

To this end, the College has had a qualified, full-time Health and Safety Manager in post since 2010 and engages external consultants to undertake an annual audit of Health and Safety procedures. In addition, it also has had a Director of Safeguarding who is responsible for all child protection matters at the College – including providing pupil support, liaison with the statutory authorities, and staff and governor training – since 2016, while a Director of Wellbeing was appointed in 2017.

21

HURSTPIERPOINT COLLEGE LIMITED

DIRECTORS’ REPORT (Continued) YEAR ENDED 31 AUGUST 2020

Financial Risk Management

The Company uses financial instruments other than derivatives (comprising loans, cash and other liquid resources), as well as various other items such as trade debtors, creditors and asset finance arrangements that arise directly from operations. The main purpose of these financial instruments is to provide working capital to finance the group’s operations.

The principal issues arising from the group’s financial instruments are liquidity risk and interest rate risk. The Directors adopt policies for managing each of the risks as summarised below:

GOING CONCERN

The governing body has reviewed the impact of the global pandemic on College operations and finances.

In the summer term of 2019-20 the financial impact was mitigated by curtailing all non-essential expenditure and through use of the support provided by the Government under the Coronavirus Job Retention Scheme. The governing body recognise that the financial implications in 2019-20 brought about as a result of the pandemic will continue into 2020-21 and, possibly, beyond, and continues to review and rework plans for the coming year, to ensure that the financial impact on the College remains mitigated in the most appropriate way.

Having considered the all factors and reviewing the available evidence, the Directors have a reasonable expectation that the group will be able to continue operating for the foreseeable future and the financial statements have been prepared on a going concern basis. Further details related to the adoption of the going concern basis can be found in the accounting policies on page 33.

FUTURE PLANS

Strategic Objectives

The Board’s strategic development plan is reviewed on an annual basis and was approved in September 2020.

The College’s over-arching objectives are:

Objectives for 2020/21

During 2020/21, the College’s principle challenge is to operate normally notwithstanding the difficulties likely to be imposed by the continuing coronavirus pandemic. As such it aims:

22

HURSTPIERPOINT COLLEGE LIMITED

DIRECTORS’ REPORT (Continued) YEAR ENDED 31 AUGUST 2020

AUDITOR

RSM UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the company receives notice under section 488(1) of the Companies Act 2006.

23

HURSTPIERPOINT COLLEGE LIMITED

DIRECTORS’ REPORT (Continued) YEAR ENDED 31 AUGUST 2020

DIRECTORS’ RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the directors’ report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s and group’s transactions and disclose with reasonable accuracy at any time the financial position of the company and group 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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to the Auditor

The directors who were in place at the date of approval of these financial statements confirm that:

Approved by the Board of Directors of Hurstpierpoint College Limited on 26 November 2020 (including, in their capacity as company directors, approving the Directors’ and Strategic Reports contained therein) and signed on its behalf by:

----- Start of picture text -----
Mee
A Jarvis
Chairman
----- End of picture text -----

24

HURSTPIERPOINT COLLEGE LIMITED Company Registration No. 3779893 (England and Wales) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HURSTPIERPOINT COLLEGE LIMITED YEAR ENDED 31 AUGUST 2020

Opinion

We have audited the financial statements of Hurstpierpoint College Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2020 which comprise the Consolidated and Charity Statements of Financial Activities, the Consolidated and Charity Balance Sheets and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Other information

The Directors are responsible for the other information. The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

25

HURSTPIERPOINT COLLEGE LIMITED Company Registration No. 3779893 (England and Wales) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HURSTPIERPOINT COLLEGE LIMITED YEAR ENDED 31 AUGUST 2020

Opinion 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 group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report and the incorporated Strategic 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 Directors’ responsibilities set out on page 20, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the group’s and parent 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 group or parent 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.

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

26

HURSTPIERPOINT COLLEGE LIMITED Company Registration No. 3779893 (England and Wales) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HURSTPIERPOINT COLLEGE LIMITED YEAR ENDED 3! AUGUST 2020

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.

Pst ah Ae?

Zoé Longstaff-Tyrrell

Senior Statutory Auditor

for and on behalf of

RSM UK Audit LLP, Statutory Auditor Chartered Accountants Portland, 25 High Street Crawley RH!0 I1BG

| Decomtee’ 2020.

HURSTPIERPOINT COLLEGE LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) YEAR ENDED 31 AUGUST 2020

Notes
Income and endowments from:
Charitable Activities
School fees receivables
3
Ancillary trading income
4
Other trading activities
Non-ancillary trading income
5
Investments
Bank and other interest
6
Other - Grants and donations
Grants and donations
7
Other incoming resources
TOTAL INCOME
Expenditure on:
Raising funds
Non-ancillary trading
8
Financing costs
9
Fundraising and Development
8
TOTAL RAISING FUNDS
8a)
Charitable Activities
Education and grant making
8a)
TOTAL EXPENDITURE
Unrealised gains on investment assets
14
Net income/(expenditure)
Transfers between funds
23
Net Movement in funds for the year
Fund balances at 1 September
FUND BALANCES AS AT 31 AUGUST		 Unrestricted
Funds
£’000
21,800
1,244
42
40
699
136
23,961
605
241
74
920
20,726
21,646
-
2,315
(228)
2,087
29,880
31,967		 Restricted
Funds
£’000
-
-
-
-
183
-
183
-
-
-
-
-
-
-
183
228
411
3,201
3,612		 Endowed
£’000
-
-
-
-
-
-		 2020
2019
£’000
£’000
21,800
23,541
1,244
1,440
42
453
40
35
882
429
136
47
24,144
25,945
605
712
241
101
74
64
920
877
20,726
22,436
21,646
23,313
35
98
2,533
2,730
-
-
2,533
2,730
33,332
30,602
35,865
33,332
-
-
-
-
-
-
-
35
35
-
35
251
286

Note:

The notes on pages 33 to 57 form part of these financial statements.

28

HURSTPIERPOINT COLLEGE LIMITED

CHARITY STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) YEAR ENDED 31 AUGUST 2020

Notes
Income and endowments from:
Charitable Activities
School fees receivables
3
Ancillary trading income
4
Other trading activities
Non-ancillary trading income
5
Investments
Bank and other interest
6
Other - Grants and donations
Grants and donations
7
Other incoming resources
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Financing costs
9
Fundraising and Development
8
TOTAL RAISING FUNDS
8b)
Charitable Activities
Education and grant making
8b)
TOTAL EXPENDITURE
Unrealised gains on investment assets
14
Net income/(expenditure)
Transfers between funds
23
Net Movement in funds for the year
Fund balances at 1 September
FUND BALANCES AS AT 31 AUGUST		 Unrestricted
Funds
£’000
21,800
1,244
8
39
728
47
23,866
234
74
308
21,272
21,580
-
2,286
(228)
2,058
29,769
31,827		 Restricted
Funds
£’000
-
-
-
-
183
-
183
-
-
-
-
-
-
183
228
411
3,201
3,612		 Endowed
£’000
-
-
-
-
-
-
-
-
-
-
-
-
35
35
-
35
251
286		 2020
2019
£’000
£’000
21,800
23,541
1,244
1,440
8
354
39
37
911
475
47
45
24,049
25,892
234
92
74
64
308
156
21,272
23,140
21,580
23,296
35
100
2,504
2,696
-
-
2,504
2,696
33,221
30,525
35,725
33,221

Note:

All recognised gains and losses in the current and prior year are included in the statement of financial activities. The notes on pages 33 to 57 form part of these financial statements.

29

HURSTPIERPOINT COLLEGE LIMITED

CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 AUGUST 2020

Group Charity
2020 2019 2020 2019
Notes £’000 £’000 £’000 £’000
FIXED ASSETS
Tangible assets 13 43,654
38,340		 38,340 43,459
38,085		 38,085
Securities Investments 14
1,581		 1,581 1,431 1,581 1,431
45,235
39,771		 39,771 45,040
39,516		 39,516
CURRENT ASSETS
Stock 11 12 11 12
Debtors 15 664 709 736 759
Cash at bank and in hand 3,621 3,621 7,189 3,519 7,138
4,296 4,296 7,910 4,266 7,909
CURRENT LIABILITIES
Creditors payable within one year 16 (6,450) (8,722) (6,381) (8,642)
NET CURRENT LIABILITIES (2,154) (812) (2,115) (733)
TOTAL ASSETS LESS CURRENT
43,081
38,959		 38,959 42,925
38,783		 38,783
LIABILITIES
LONG TERM LIABILITIES
Creditors payable after one year 17 (7,067) (5,449) (7,051) (5,384)
TOTAL NET ASSETS EXCLUDING
36,014
33,510		 33,510 35,874
33,399		 33,399
PENSION LIABILITY
Net pension liability 26 (149) (178) (149) (178)
NET ASSETS 35,865
33,332		 33,332 35,725
33,221		 33,221
REPRESENTED BY:
CALLED UP SHARE CAPITAL 22 - - - -
ENDOWED FUNDS 23 286 251 286 251
RESTRICTED FUNDS 23
3,612		 3,612 3,201 3,612 3,201
UNRESTRICTED FUNDS
General reserve 23 31,967
29,880		 29,880 31,827
29,769		 29,769
35,865
33,332		 33,332 35,725
33,221		 33,221

The financial statements were approved and authorised for issue by the Board on 26 November 2020 and signed on its behalf by:

Nie A Jarvis

A Jarvis Chairman

Company registration number 3779893 (England and Wales)

Note:

The notes on pages 33 to 57 form part of these financial statements.

30

HURSTPIERPOINT COLLEGE LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 AUGUST 2020

Statement of cash flow

Cash flows from operating activities:
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayments of borrowing
Cash inflows from new borrowing
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Reconciliation of net income/(expenditure) to net cash flow from operating
Net income/(expenditure) for the reporting period (as per the statement of
financial activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Impairment of asset
Loss/(profit) on the sale of fixed assets
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by (used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Cash flows from operating activities:
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayments of borrowing
Cash inflows from new borrowing
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Reconciliation of net income/(expenditure) to net cash flow from operating
Net income/(expenditure) for the reporting period (as per the statement of
financial activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Impairment of asset
Loss/(profit) on the sale of fixed assets
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by (used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2020
2019
£'000
£'000
1,069
5,463
8
5
(6,467)
(2,724)
226
(115)
(1,331)
(6,574)
(3,824)
(63)
(107)
2,000
1,937
(107)
(3,568)
1,532
7,189
5,657
3,621
7,189
activities
2020
2019
£'000
£'000
2,533
2,730
1,153
1,222
(35)
(100)
581
(8)
5
1
45
(115)
(2,620)
1,140
1,069
5,463
3,621
7,189
3,621
7,189

31

HURSTPIERPOINT COLLEGE LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 AUGUST 2020

Analysis of changes in net debt

Cash and cash equivalents
Cash
Borrowings
Debt due within one year
Debt due after one year
Total		 At 1 Sept 2019
£'000
7,189
7,189
(3,000)
(3,000)
4,189		 Cash flows
£'000
(3,568)
(3,568)
(100)
(2,000)
(2,100)
(5,668)		 Other non-
cash
changes
At 31 Aug 2020
£'000
£'000
3,621
3,621
(100)
(5,000)
(5,100)
(1,479)

32

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

1. COMPANY INFORMATION

Hurstpierpoint College Limited is a private limited liability company incorporated in England and Wales and a Registered Charity. The address of the Registered Office is Hurstpierpoint College Limited, College Lane, Hurstpierpoint, Hassocks, BN6 9JS. The Company’s registered number is 3779893. Its charity registration number is 1076498.

2. ACCOUNTING POLICIES

The principal accounting policies, all of which have been applied consistently throughout the year and in the preceding year are:

Basis of Accounting

The accounts of the group have been prepared under the Companies Act 2006 and in accordance with the Statement of Recommended Practice for Charities (‘SORP (FRS102)’) and with applicable UK Accounting Standards. They are drawn up on the historical cost accounting basis except that share investments held as fixed assets are carried at fair value.

Hurstpierpoint College Limited meets the definition of a public benefit entity under Financial Reporting Standard (FRS) 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Further details are provided in note 32, and in the accounting policies for depreciation of fixed assets, for pensions and for bad debts. These financial statements are presented in sterling (£) and the functional currency is sterling (£).

Going Concern

The accounts have been prepared on a going concern basis. The Directors review the financial information for the company and the group and consider whether the group and company are a going concern for a period of at least 12 months from the date of approval of the accounts.

The financial information, which is updated at least termly, includes detailed budgets and forecasts for the current financial year and the year ahead, and a rolling five-year forecast based upon best estimates of pupil numbers, boarding numbers, fee concessions and anticipated operating costs.

Notwithstanding the uncertainties resulting from the current global pandemic, having considered all the factors and reviewing the available evidence, the Directors have a reasonable expectation that the group and Company has adequate resources to continue in operational existence at least the next twelve months from the date of approval of the financial statements..

Group Accounts

The financial statements consolidate the financial statements of Hurstpierpoint College Limited and all its subsidiary companies, charitable trusts and funds with all inter-company balances being eliminated. Entities are consolidated where the Hurstpierpoint College exercises overall control either through ownership of shares, or through having common trustees with a common objective. Accounting policies are consistently applied between group companies.

School Fees Receivable and Similar Income

Fees receivable and other educational income are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions by the school, but include contributions received from restricted funds for scholarships, bursaries and other grants. Fees in Advance Scheme Contracts are those fees received in advance of education to be provided in future years under a specific contract. The fees are held within the unrestricted reserves of the school until taken to income to match liabilities in the term when used, or refunded. Any surplus of assets over liabilities is held within the fund as a buffer. Debts are provided for if not recovered within one term. Estimating amounts to provide against recovery of debts is a matter of judgement.

33

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (Continued)

Ancillary and Non-Ancillary Trading Income

Ancillary trading income represents amounts from activities to generate funds within the charitable objects for example, school shop sales, coaches to and from school and school trips. Non-ancillary trading income represents amounts from activities not directly related to the charitable objects, for example lettings of school facilities out of term time and rental from spare school buildings. Income from these activities is recognised in the SOFA when the goods are sold, or services provided.

Voluntary sources, Grants and Donations

Voluntary incoming resources are accounted for as and when entitlement arises, the amount can reliably be quantified, and the economic benefit is considered probable.

Voluntary income for 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 and incoming endowments are accounted for as permanent trust capital or expendable trust capital, according to whether the donor intends retention to be permanent or not. Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption, or at the value to the school in case of donated services or facilities.

Acceptance Deposits

Acceptance deposits are paid to the school to secure a place for the child at the school. Deposits held form part of the general funds of the school until the child leaves the school at which point, they are credited without interest to the final payment of the fees or other sums due to the school.

Deposits are held as creditors on the balance sheet and are classified as owing within one year and over one year based on when they are expected to be credited against income.

Expenditure

Expenditure is accrued as soon as there is a contractual obligation or a liability is considered probable, discounted to present value for longer term liabilities. Expenditure is allocated to expense headings either on a direct cost basis or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates. Bad debts are provided for in accordance with the group bad debt policy. The cost of refurbishing and converting existing buildings is written-off in the year in which it is incurred except where the useful life has been extended.

Finance and Other Costs

Other costs include amounts accrued in accordance with the terms of Fees in Advance Scheme Contracts.

Pension Costs

The College participates in the Teachers’ Pensions scheme, which is an unfunded government scheme, and the TPT Retirement Solutions scheme, both of which provide benefits based on final pensionable pay. The funds of the schemes are separate from the company, although the College’s share of the schemes cannot be identified as the schemes are multi-employer schemes, and so the pension costs are accounted for as defined contribution schemes. The companies also contribute to other defined contribution pension schemes for non-teaching staff.

The College offers membership of the TPT Retirement Solutions Growth Plan to employees other than the full-time academic staff. The TPT Retirement Solutions Growth Plan is a multi-employer pension scheme where the scheme assets are pooled for investment purposes and cannot be attributed to individual employers. Benefits are paid from the total scheme assets. It is in most respects a money purchase arrangement, but has some guarantees. As a result it is not possible or appropriate to identify the assets and liabilities of the scheme which are attributable to the company, though, due to the guarantees inherent in the scheme, the companies remain potentially liable for a debt on withdrawal from the scheme. In accordance with Financial Reporting Standard (FRS) 102 (section 28) therefore, the scheme is accounted for in a fashion which is similar to a defined contribution scheme.

The College must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the SOFA i.e. the unwinding of the discount rate as a finance cost in the period in which it arises. More detail is given in note 26.

34

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (Continued)

Tangible Fixed Assets and Depreciation

In accordance with Section 35.10 (d) of FRS102, the Company has elected to use the carrying value of any of the above freehold land and buildings previously carried at a valuation, as their deemed cost at the date of transition to FRS102, 1 September 2014.

Tangible fixed assets are stated at cost less depreciation. Individual capital items, or projects, with a value greater than £10,000 are capitalised. Assets in the course of construction are stated at cost less any provision for impairment. They are transferred to completed assets when substantially all of the activities necessary to get the asset ready for use are complete. Where appropriate cost includes our own labour costs in relation to construction, and directly attributable overheads.

Where tangible fixed assets have been acquired with the aid of specific grants they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund (in the statement of financial activities and carried forward in the balance sheet). The depreciation on such assets is charged in the statement of financial activities over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.

Depreciation is provided at rates calculated to write off the cost, less estimated residual value of each asset based on current market prices, over its expected useful life, as follows:

Depreciation is provided at rates calculated to write off the cost, less estimated residual value of each asset based on
current market prices, over its expected useful life, as follows:		 Depreciation is provided at rates calculated to write off the cost, less estimated residual value of each asset based on
current market prices, over its expected useful life, as follows:
Freehold land and assets under construction are not depreciated
Freehold Buildings: Variable according to the building and written off over the expected useful life
(see paragraph below)
Freehold improvements Over the useful economic life of the improvement
Computer equipment 25% on cost
Plant & Equipment between 4% and 25% on cost
Fixtures and fittings 25% on cost
Motor vehicles 25% on cost

The Company has reviewed its tangible assets, which comprise land, buildings and initial fixtures and fittings. The Company undertakes an annual review of all buildings assessing their useful economic life. In some cases, the useful economic life of a building is anticipated to be of considerable length, often in excess of 100 years. The buildings are capitalised in the financial statements at historic cost. Where the calculated depreciation charge is a material figure, it is charged in these financial statements but, where the carrying value is not more than the estimated recoverable amount and the depreciation on the building is not material to these financial statements, it has been assessed, but not charged on the basis that it is not material. The Directors will continue to carry out annual assessments of the recoverable amount and the estimated useful life of all buildings and where the depreciation is a material value, it will be charged. The review is based on the Directors’ assessments of the market value and the future economic benefit derived from an asset versus its carrying value in the financial statements.

When the Company undertakes a significant refurbishment project that will have an economic benefit, the cost of the refurbishment is capitalised, recorded separately under ‘Freehold Improvements’, its useful life is estimated, and it is depreciated over that useful life.

The Company exercises judgement in selection of appropriate rates for depreciation of fixed assets, and for matters of impairment.

Financial Instruments

The College 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.

Securities and Fees in Advance Investments

Securities and Fees in Advance investments are carried at fair value, which is deemed to be market value as at the balance sheet date.

35

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (Continued)

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. Realised gains and losses are the difference between sales proceeds and opening market value where the investment was held at the beginning of the year, or sales proceeds less cost of purchase where the investment was acquired in the year. The revaluation reserve reflects the accumulated total of unrealised gains and losses. Uninvested cash is the balance of liquid cash, held as an investment, which has not been invested in securities.

Stocks

Stocks comprise consumable stores and goods held for resale: they are valued at the lower of cost and net realisable value.

Leasing Commitments

Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives or the period of the lease whichever is the shorter. The interest element of the obligations is charged to the SOFA over the period of the lease. Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the SOFA on a straight-line basis over the lease term. Lease incentives are accounted for over the lease term on a straight-line basis.

Fee deposits

Refundable fee deposits are currently classified between long term and short term in the financial statements. These deposits are refundable in the event that the pupils leave a school on one term's notice and as such the deposit would be refunded to the parents at that point. However, the financial statements are prepared on a going concern basis and it is assumed that the majority of children will remain in school for their full years of education and therefore the deposit will be refunded to them when they leave the College.

Short term deposits reflect those pupils that will be leaving the College within one year, and the longer-term element reflects those pupils that will be leaving the College after 12 months from the balance sheet date.

Fund Accounts

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. Endowment funds are further sub-divided into permanent and expendable, where required by the terms of the trust.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Designated funds comprise funds which have been set aside at the discretion of the directors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Taxation

Hurstpierpoint College Ltd is a registered charity and as such is exempt from income tax and corporation tax under the provisions of Section 478 of the Corporation Tax Act 2010. There is no similar exemption for VAT, which is included in expenditure or in the cost of assets as appropriate.

The College has subsidiary companies that are subject to taxes including corporation tax and VAT in the same way as any commercial organisation. The tax charged to the profit and loss account is based on the subsidiary company’s profit for the year and takes into account tax arising because of timing differences between the treatments of certain items for tax and accounting purposes. The subsidiary companies distribute over the majority of its profits to Hurstpierpoint College Limited under Gift Aid and tax liabilities are kept to a minimum.

36

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

3. CHARITABLE ACTIVITIES – SCHOOL FEES RECEIVABLE

The school fees income comprises:
Gross fees
Less: Total scholarships, bursaries, etc.
Add back: Scholarships, Grants etc. paid for by Restricted Funds		 2020
2019
£’000
£’000
24,882
26,736
(3,082)
(3,195)
21,800
23,541
-
-
21,800
23,541

Scholarships, bursaries and other awards were paid to 846 pupils (2019: 830 pupils). Within this, means-tested bursaries totalling £853,000 were paid to 120 pupils (2019: £842,000 to 73 pupils).

4. CHARITABLE ACTIVITIES – ANCILLARY TRADING INCOME

Extras
Entrance fees and registration fees
Pupil transport
Rent receivable and other sales
Commissions and other income
Sundry other income		 2020
2019
£’000
£’000
455
460
56
64
249
293
38
41
12
25
434
557
1,244
1,440

5. OTHER TRADING ACTIVITIES

Non-ancillary trading income
Lettings income
Interest receivable – pupil bills
Company
Hurst Facilities Limited – Letting income (note 27)
Group		 2020
2019
£’000
£’000
-
347
8
7
8
354
34
99
42
453

37

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

6. INVESTMENTS - BANK AND OTHER INTEREST RECEIVABLE

Bank interest
Other interest
Group
Other interest
Company		 Unrestricted
£’000
22
18
40
(1)
39		 Restricted
£’000
-
-
-
-
-		 Endowed
£’000
-
-
-
-
-		 Total
Total
2020
2019
£’000
£’000
22
29
18
6
40
35
(1)
2
39
37

7. OTHER – GRANTS AND DONATIONS

Endowment Fund donations
General donations
Government grants CJRS
Group
Gift aid donation: Hurst
Facilities Limited
Company		 Unrestricted
£’000
-
-
699
699
29
728		 Restricted
£’000
183
-
-
183
-
183		 Endowed
£’000
-
-
-
-
-
-		 Total
Total
2020
2019
£’000
£’000
183
97
-
332
699
-
882
429
29
46
911
475

The Coronavirus Job Retention Scheme (CJRS) grant relates to government funding received to cover a percentage of furloughed staff wages plus employer National Insurance and pension contributions. £699,000 of the unrestricted income in the current year (2019: £nil) and costs relate to the CJRS grant. No CJRS grants were claimed relating to government funded contracts where work and government funding has continued.

There are no unfulfilled conditions and other contingencies attaching to grants that have been recognised in income. There are no other forms of government assistance from which the charity has directly benefited.

38

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

8. ANALYSIS OF EXPENDITURE

a) Group - Total expenditure

Costs of Raising funds
Non ancillary trading
Financing cost (note 9)
Fundraising and development
Total cost of raising funds
Charitable expenditure
Teaching
Welfare
Premises
School administration
Movement in pension deficit
Governance costs
Education and grant making
Total Expenditure
b) Company – Total expenditure
Costs of Raising funds
Financing cost (note 9)
Fundraising and development
Total cost of raising funds
Charitable expenditure
Teaching
Welfare
Premises
School administration
Movement in pension deficit
Governance costs
Education and grant making
Total Expenditure		 Staff costs
(note 10)
£’000
314
-
-
314
11,035
332
1,350
1,128
-
-
13,845
14,159
Staff costs
(note 10)
£’000
-
-
-
11,035
332
1,350
1,128
-
-
13,845
13,845		 Support
Costs
£’000
177
241
74
492
1,394
1,449
2,266
704
(29)
58
5,842
6,334
Support
Costs
£’000
234
74
308
1,941
1,449
2,266
704
(29)
57
6,388
6,696		 Depreciation
(note 13)
£’000
114
-
-
114
283
51
705
-
-
-
1,039
1,153
Depreciation
(note 13)
£’000
-
-
-
283
51
705
-
-
-
1,039
1,039		 2020
2019
£’000
£’000
605
712
241
101
74
64
920
877
12,712
12,387
1,832
2,423
4,321
5,626
1,832
2,023
(29)
(62)
58
39
20,726
22,436
21,646
23,313
2020
2019
£’000
£’000
234
92
74
64
308
156
13,259
13,092
1,832
2,423
4,321
5,626
1,832
2,023
(29)
(62)
57
38
21,272
23,140
21,580
23,296

39

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

8. ANALYSIS OF EXPENDITURE (Continued)

c) Grants, awards and prizes

The College did not make any grants during the year (2019: Nil) .

d) Total resources expended include:

Hurstpierpoint College reimburses governors for out of pocket expenses including travel subsistence and

accommodation, where a claim is made. Three trustees were reimbursed during the year.

Remuneration paid to auditor for audit services
Reimbursement of personal expenses to governors
Other governance costs		 2020
2019
£’000
£’000
24
15
1
3
33
21
58
39

9. FINANCING COSTS

Bank and other interest payable
Bank charges
Provision for bad and doubtful debts		 Group
2020
£’000
70
58
113
241		 2019
£’000
76
29
(4)
101		 Company
2020
2019
£’000
£’000
65
67
56
29
113
(4)
234
92

40

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

10. STAFF COSTS

The aggregate payroll costs for the year were:
Wages and salaries
Social security costs
Other pension costs
Private medical insurance		 2020
2019
£’000
£’000
11,257
11,207
1,076
1,083
1,817
1,306
9
10
14,159
13,606

Included in staff costs are redundancy or termination payments totalling £56,000 (2019: £nil) . No amounts were outstanding at the year-end (2019: £nil) .

The Head, Bursar and Heads of School are classed by the college as being the Key Management Personnel.

None of the governors received remuneration or other benefits from Hurstpierpoint College or from any connected body.

ody.
2020 2019
£’000 £’000
Aggregate employee benefits of key management personnel 633 630

The number of higher paid employees whose annual emoluments were £60,000 or more was:

2020 2019
No No
£60,001 - £70,000 6 8
£70,001 - £80,000 6 3
£80,001 - £90,000 1 1
£90,001 - £100,000 - 1
£100,001 - £110,000 1 -
£110,001 - £120,000 1 -
£120,001 - £130,000 - 1
£240,001 - £250,000 - -
£250,001 - £260,000 1 1
The number with retirement benefits accruing:
in Defined Contribution schemes was 1 1
of which the contributions amounted to £6,450_(2019: £6,300)_
in Defined Benefit schemes was 13 12
of which the contributions amounted to £202,524_(2019: £130,694)_

For 2020 there are 2 employees (2019: 3) earning over £60,000 per year that have chosen not to participate in

a pension scheme.

The average number of employees within group and charity during the year calculated on a headcount basis was 434 (2019: 412)

Teaching staff
Other		 2020
2019
No
No
232
214
202
198
434
412

41

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

11. DIRECTORS

None of the directors received any remuneration or other benefits during the year from Hurstpierpoint College or from any connected body. However, remuneration totalling £87,311 (2019: £94,570) was paid to three related parties connected to the directors who are employed at the college on standard employment terms.

Scholarships totalling £7,800 were awarded to children of directors attending the school on standard published terms (2019: £7,800) .

12. TAXATION

The company is a registered charity and therefore no liability to taxation arises on its charitable activities.

13. TANGIBLE ASSETS

a) Group

Freehold Freehold Under Computer Plant & Fixtures
Motor
Land & Improve- Con- Equip- Equip- & Total
Vehicles
Buildings ments struction ment ment Fittings
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Cost
At 1 September 2019 36,806 1,178 1,455 1,565 1,959 1,308 677 44,948
Additions 115 - 6,161 68 23 46 54 6,467
Disposals - - - (836) (80) - - (916)
Transfers (6) - 6 - - - - -
At 31 August 2020 36,915 1,178 7,622 797 1,902 1,354 731 50,499
Depreciation
At 1 September 2019 2,555 40 - 939 1,485 1,167 422 6,608
Charge for the year 576 25 - 270 112 56 114 1,153
Disposals - - - (836) (80) - - (916)
At 31 August 2020 3,131 65 - 373 1,517 1,223 536 6,845
Net book value at 31
August 2020 33,784 1,113 7,622 424 385 131 195 43,654
Net book value at 31 August
2019 34,251 1,138 1,455 626 474 141 255 38,340

All assets are used for charitable purposes.

Finance leases and hire purchase contracts

Included in motor vehicles are assets held under finance leases which has a net book value of £64,708 (2019: £126,445) Depreciation of £61,737 (2019: £116,652) was charged during the year.

42

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

b) Company

Cost
At 1 September 2019
Additions
Disposals
Transfers
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
Disposals
At 31 August 2020
Net book value at 31 August
2020
Net book value at 31 August 2019		 Freehold
Land &
Buildings
£’000
36,806
115
-
(6)
36,915
2,555
576
-
3,131
33,784
34,251		 Freehold
Improve-
ments
£’000
1,178
-
-
-
1,178
40
25
-
65
1,113
1,138		 Under
Con-
struction
£’000
1,455
6,161
-
6
7,622
-
-
-
-
7,622
1,455		 Computer
Equip-
ment
£’000
1,565
68
(836)
-
797
939
270
(836)
373
424
626		 Plant &
Equip-
ment
£’000
1,959
23
(80)
-
1,902
1,485
112
(80)
1,517
385
474		 Fixtures
&
Fittings
£’000
1,308
46
-
-
1,354
1,167
56
-
1,223
131
141		 Motor
Vehicles
Total
£’000
£’000
30
44,301
-
6,413
-
(916)
-
-
30
49,798
30
6,216
-
1,039
-
(916)
30
6,339
-
43,459
-
38,085

43

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

14. SECURITIES INVESTMENTS

Group investments
At 1 September 2019
Investment
Amounts extracted
Unrealised gains/(losses) on investments
Group investments at 31 August 2020
Investment in subsidiaries
Company investments at 31 August 2020
Investments comprise:
Listed investments
Equities
Group investments at 31 August 2020
Investment in subsidiaries
Company investments at 31 August 2020		 2020
2019
£’000
£’000
1,431
226
115
1,331
-
(226)
35
100
1,581
1,431
-
-
1,581
1,431
1,581
1,431
1,581
1,431
-
-
1,581
1,431

Hurstpierpoint College Limited owns all of the share capital of Hurst Transport Limited, Hurst Facilities Limited and Hurst International Limited, all companies are incorporated in England and Wales. Further details are provided in note 27.

In addition to the above investments, cash balances within the Fees in Advance Scheme are included in current assets as cash deposits.

The main Securities Investments deposits are managed for Hurstpierpoint College Limited by Brewin Dolphin and CCLA Wealth Management. All investments are managed and held in the UK.

15. DEBTORS

School fees receivable
Trade debtors
Other debtors
Prepayments and accrued income
Amounts due from subsidiary company
Amounts due from parent company		 2020
2019
£’000
£’000
317
244
-
11
61
91
286
358
-
-
-
5
664
709
Group		 2020
2019
£’000
£’000
317
244
-
-
43
81
268
339
108
90
-
5
736
759
Company

44

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

16. CREDITORS: amounts falling due within one year

Group
2020
£’000
Bank loan (Note 18)
100
Net obligations under finance leases (Note 20)
49
Deposits from parents
439
Fees received from parents in advance of term
3,133
Trade creditors
605
Taxation and social security
255
Other creditors
62
Pension
216
Fees in Advance Scheme (Note 19)
1,104
Accruals
487
Amounts due to parent company
-
6,450		 2019
£’000
-
63
306
5,340
1,064
261
148
169
1,098
272
1
8,722		 Company
2020
2019
£’000
£’000
100
-
-
-
439
306
3,133
5,340
596
1,061
255
261
62
148
216
169
1,104
1,098
476
258
-
1
6,381
8,642

17. CREDITORS: amounts falling due after one year

Group
2020
£’000
Bank loan (Note 18)
4,900
Net obligations under finance leases (Note 20)
16
Deposits from parents
1,614
Fees in Advance Scheme (Note 19)
537
7,067		 2019
£’000
3,000
65
1,536
848
5,449		 Company
2020
2019
£’000
£’000
4,900
3,000
-
-
1,614
1,536
537
848
7,051
5,384

Hurstpierpoint College Limited has bank loans from Barclays Bank Plc, as follows:

Both loans are secured by a first legal charge over the Company’s freehold land and buildings.

Parents pay to the College a deposit of £2,000 in advance of which £1,000 is returned when the pupil joins the College. The remainder may be returned subject to specific conditions on the receipt of one term’s notice. Assuming pupils all remain in the College (which the vast majority do based on historical information), refundable deposits will be applied as follows:

45

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

17 . CREDITORS: amounts falling due after one year (continued)

Over 5 years
Within 2 to 5 years
Within 1 to 2 years
Deposits from parents
Within 1 year
BANK LOAN
The bank loan is repayable in instalments
Due after 5 years
Due within 2 to 5 years
Due after more than one year
Due within 1 year		 2020
2019
£’000
£’000
349
604
1,102
623
163
309
1,614
1,536
439
306
2,053
1,842
2020
2019
£’000
£’000
300
600
4,600
2,400
4,900
3,000
100
-
5,000
3,000

18. BANK LOAN

19. FEES IN ADVANCE SCHEME

Parents may enter into a contract to pay school fees in advance. Assuming pupils will remain in the school, Advance Fee Contracts will be applied as follows:

Due after 5 years
Within 2 to 5 years
Within 1 to 2 years
Due after more than one year
Within 1 year
Summary of movements in liability
Balance at 1 September 2018
New contracts
Repayments
Amounts used to pay fees
Balance at 31 August 2019		 2020
2019
£’000
£’000
11
10
206
383
320
455
537
848
1,104
1,098
1,641
1,946
1,946
1,048
1,076
1,737
(219)
(38)
(1,162)
(801)
1,641
1,946

46

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

20. FINANCE LEASE OBLIGATIONS

Amounts falling due:
Within 2 to 5 years
Within 1 to 2 years
Due after more than one year
Within 1 year		 2020
2019
£’000
£’000
-
16
16
49
16
65
49
63
65
128

21. COMMITMENTS UNDER OPERATING LEASES

The future minimum commitments under non-cancellable operating leases are:

Within 1 year
Within 1 to 5 years		 2020
2019
£’000
£’000
30
30
59
89
89
119

22. SHARE CAPITAL

SHARE CAPITAL
2020 2019
Authorised £ £
100 Ordinary Shares of £1 each 100 100
Allotted, called up and fully paid
100 Ordinary Shares of £1 each 100 100
Ordinary Share Rights

The company ordinary shares, which carry no right to fixed income, each carry the right to on vote at general meetings of the company.

47

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

23. FUNDS

a. ENDOWED FUNDS

The endowed funds of the company include a number of individual trust and prize funds set up by donors as permanent capital. The income generated is restricted to funding scholarships, bursaries, grants and prizes.

Group and Company

Special Endowment Fund
Group and Company
Special Endowment Fund		 Balance at
1 Sep 19
£’000
251
251
Balance at
1 Sep 18
£’000
153
153		 Income
Investment
Gains
Transfers
Balance at
31 Aug 20
£’000
£’000
£’000
£’000
-
35
-
286
-
35
-
286
Income
Investment
Gains
Transfers
Balance at
31 Aug 19
£’000
£’000
£’000
£’000
-
98
-
251
-
98
-
251
Movements in funds
Movements in funds

48

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

23. FUNDS (Continued)

b. RESTRICTED FUNDS

The income funds of the company include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes.

Group and Company

Endowment Fund
Special Endowment Fund
Woodard Bursary Funds
Iva Lancelot Harison Bursary Fund		 Balance at
1 Sep 19
£’000
2,572
46
302
281		 Income /
Investment
Gains
£’000
183
-
-
-
183		 Expenditure
£’000
-
-
-
-		 Transfers
Balance at
31 Aug 20
£’000
£’000
215
2,970
-
46
-
302
13
294
228
3,612
3,201 -

The Endowment Fund was established with donations from parents. The purpose is to accumulate a fund that will be used to provide financial support to talented pupils whose family circumstances would otherwise prevent them from attending the school. The Special Endowment Fund represents undistributed income arising from Endowed Funds. The Iva Lancelot Harison Bursary Fund was donated to provide bursarial assistance to local pupils requiring financial support. The Woodard Bursary Funds represent funds received following the winding up of The Woodard (Southern Division) Benefit Fund.

Group and Company

Group and Company
Balance at
1 Sep 18
Income /
Investment
Gains
£’000
£’000
Endowment Fund
2,298
97
Special Endowment Fund
46
-
Woodard Bursary Funds
-
302
Piano Fund
-
30
Iva Lancelot Harison Bursary Fund
268
-
2,612
429
Transfers:-
Notional bank interest on Endowment Fund balances
Transfer of unused bad debt provision to Endowment Fund
Transfer of unsued bursary budget
Notional bank interest on Iva Lancelot Harison Bursary Fund
Transfer of used Piano Funds		 Expenditure
£’000
-
-
-
-
-		 Transfers
Balance at
31 Aug 19
£’000
£’000
177
2,572
-
46
-
302
(30)
13
281
160
3,201
2020
2019
£’000
£’000
150
143
-
34
65
-
13
13
-
(30)
228
160
-

49

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

23. FUNDS (Continued)

c. UNRESTRICTED FUNDS

Group
General reserves
Company
General reserves
Group
General reserves
Company
General reserves		 Balance at
1 Sep 19
£’000
29,880		 Incoming
Resources
Resources
Expended
Transfers
Balance at
31 Aug 20
£’000
£’000
£’000
£’000
23,961
(21,646)
(228)
31,967
23,866
(21,580)
(228)
31,827
Incoming
Resources
Resources
Expended
Transfers
Balance at
31 Aug 19
£’000
£’000
£’000
£’000
25,516
(23,313)
(160)
29,880
25,465
(23,296)
(160)
29,769

Movements in funds
Movements in funds
29,769
Balance at
1 Sep 18
£’000
27,837
27,760

CJRS: During the year the company received £699,000 income from the HMRC Coronavirus Job Retention Scheme which was fully utilised to pay staff on Furlough due to the COVID-19 induced lockdown.

50

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

24. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Group

Tangible fixed assets
Securities investments
Net current (liabilities)/assets
Long term liabilities		 Unrestricted
£’000
43,654
-
(4,471)
(7,216)
31,967		 Restricted
£’000
-
-
3,612
-
3,612		 Endowed
£’000
-
1,581
(1,295)
-
286		 2020
2019
Total
Total
£’000
£’000
43,654
38,340
1,581
1,431
(2,154)
(812)
(7,216)
(5,627)
35,865
33,332

Company

Tangible fixed assets
Securities investments
Net current (liabilities)/assets
Long term liabilities		 Unrestricted
£’000
43,459
-
(4,432)
(7,200)
31,827		 Restricted
£’000
-
-
3,612
-
3,612		 Endowed
£’000
-
1,581
(1,295)
-
286		 2020
2019
Total
Total
£’000
£’000
43,459
38,085
1,581
1,431
(2,115)
(733)
(7,200)
(5,562)
35,725
33,221

25. CAPITAL COMMITMENTS

At 31 August 2020, the charity and group had capital commitments as follows:

Expenditure contracted for but not provided in the accounts

2020 2019
£’000 £’000
1,230 960

51

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

26. PENSION SCHEMES

Teachers’ Pension Scheme

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 £1,516,325 (2019: £1,020,475) and at the year-end £128,924 (2019 - £86,416) 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. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020..

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

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

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

TPT Retirement Solutions Growth Plan

The Company participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the Company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the Company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

:

52

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

26. PENSION SCHEMES (Continued)

Growth Plan Deficit Contributions

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows

From 1 April 2019 to 31 January 2025:

£11,243,000 per annum (payable monthly and increasing by 3% each on 1st April)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

From 1 April 2019 to 30 September 2025: £12,945,440 per annum (payable monthly and increasing by 3% each on 1st April)

From 1 April 2016 to 30 September 2028: £54,560 per annum (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present Values of Provision
Present value of provision
Income and expenditure impact
Reconciliation of opening and closing provisions
Interest expense
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at 31 August 2020
Provision at 1 September 2019
Unwinding of the discount factor
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule		 2020
£’000		 2019
£’000
178
2020
£’000
178
2
(32)
1
-
149
2020
£’000
2
1
-		 2018
£’000
240
2019
£’000
240
4
(32)
3
(37)
149
178
2019
£’000
4
3
(37)

53

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

26. PENSION SCHEMES (Continued)

Assumptions 2020 2019 2018
% per annum % per annum % per annum
Rate of discount 0.55 0.97 1.68

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

Deficit Contributions Schedule

The following schedule shows the deficit contributions agreed between the company and the scheme at each year end period:

Year 1
Year 2
Year 3
Year 4
Year 5
Year 6		 2020
£’000
32
33
34
35

15
-
149		 2019
£’000
32

32

33
34
35
15
181

The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive the company’s balance sheet liability.

The current valuation does not reflect the expected increase in benefits and therefore liability as a result of Guaranteed Minimum Pension (‘GMP’) equalisation between men and women which is required as a result of the removal of the Additional State Pension. Methodologies for a long-term solution are still being investigated by the Government as set out in the published (January 2018) outcome of the Government Consultation ‘Indexation and Equalisation of GMP in Public Sector Pensions Schemes’ and therefore the expected impact cannot be reliably estimated and consequently no provision/liability has been recognised.

54

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

27. SUBSIDIARIES

The Company owns all of the share capital of Hurst Facilities Limited (Company Registration No. 1320729 incorporated in England and Wales). This company carries out trading activity on behalf of the College including that of letting the premises and facilities of Hurstpierpoint College Limited. Hurst Facilities Limited had a turnover of £34,377 (2019: £99,138), gross profit of £32,754 (2019: £48,491), and a profit before tax and gift aid of £28,914 in the year ended 31 August 2020 (2019: £45,680). At 31 August 2020 the company had shareholder’s funds of £200 (2019: £200).

The Company owns all of the share capital of Hurst Transport Limited (Company Registration No. 7914424 incorporated in England and Wales). This principal activity of the company is the supply of school transport services solely to Hurstpierpoint College Limited. Hurst Transport Limited recharged Hurstpierpoint College Limited £560,620 (2019: £704,472), gross profit of £43,654 (2019: £63,114), and a profit before tax of £28,033 in the year ended 31 August 2020 (2019: £33,546). During the year Hurstpierpoint College Limited recharged Hurst Transport £238981 (2019: £293,065). At 31 August 2020 the company had shareholder’s funds of £136,616 (2019: £108,583).

The Company owns all of the share capital of Hurst International Limited (Company Registration No. 09425343 incorporated in England and Wales). The company is dormant and has not traded. As at 31 August 2020 the company had shareholder’s funds of £100 (2019: £100).

The address of the Registered Office of all three subsidiaries is Hurstpierpoint College Limited, College Lane, Hurstpierpoint, Hassocks, BN6 9JS.

55

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

28. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES: COMPARATIVE FIGURES BY FUND TYPE

Income and endowments from:
Charitable Activities
School fees receivables
Ancillary trading income
Other trading activities
Non-ancillary trading income
Investments
Bank and other interest
Other - Grants and donations
Grants and donations
Other incoming resources
TOTAL INCOME
Expenditure on:
Raising funds
Financing costs
Fundraising and Development
TOTAL RAISING FUNDS
Charitable Activities
Education and grant making
TOTAL EXPENDITURE
Unrealised gains on investment assets
Net income/(expenditure)
Transfers between funds
NET Movement in funds for the year
Fund balances at 1 September
FUND BALANCES AS AT 31 AUGUST
Year Ended 31 August 2019		 £’000
23,541
1,440
354
37
46
45
25,463
92
64
156
23,140
23,296
2
2,169
(160)
2,009
27,760
29,769
Un-
restricted		 Restricted
£’000
-
-
-
-
429
-
429
-
-
-
-
-
-
429
160
589
2,612
3,201		 Endowed
Total
£’000
£’000
-
23,541
-
1,440
-
354
-
37
-
475
-
45
-
25,892
-
92
-
64
-
156
-
23,140
-
23,296
98
100
98
2,696
-
-
98
2,696
153
30,525
251
33,221

29. CONTINGENT LIABILITIES

The Company has been notified by TPT Retirement Solutions of the estimated employer debt on withdrawal from the Plan based on the financial position of the Plan as at 30 September 2019 (see note 26). As of this date the estimated employer debt for the Company was £433,763 (September 2018: £471,450), including Series 3 liabilities.

56

HURSTPIERPOINT COLLEGE LIMITED

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

30. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is The Woodard Corporation Limited (‘Woodard’), a registered charity number 1096270, which is incorporated in England and Wales (company registration number 04659710). Woodard, an educational charity, is the Holding Company of a group of incorporated schools and sponsored academies. Copies of the financial statements of Woodard can be obtained from High Street, Abbots Bromley, Rugeley, Staffordshire, WS15 3BW and are also available on the Charity Commission website https://www.gov.uk/government/organisations/charity-commission. The accounts of Hurstpierpoint College Limited are included within the consolidated financial statements of Woodard.

31. RELATED PARTIES

As stated at note 30 the Company is a wholly owned subsidiary of The Woodard Corporation Limited. An amount of £113,616 (2019: £158,021) was paid during the year to the Corporation by way of a levy to meet Corporation running costs. At the year-end there was an amount outstanding due from the parent company of £320 (2019: £3,959 due from the parent company).

The Company also controls subsidiary trading companies, Hurst Facilities Limited, Hurst International Limited and Hurst Transport Limited, the results of which are detailed in Note 27.

As stated in note 11, remuneration totalling £87,311 (2019: £94,570) was paid to four related parties connected to the directors who are employed at the college on standard employment terms, and scholarships totalling £7,040were awarded to children of trustees attending the school on standard published terms (2019: £7,800).

Last year the Company received £302,000 from The Woodard Schools (Southern Division) Benefit Fund for the purposes described. The Woodard Schools (Southern Division) Benefit Fund was dissolved on 2 July 2019 and was previously jointly controlled by the Head of the College.

A partnership under the common control of Mr K S Powell, Knill James, performed tax compliance services and finance reviews totalling £3,090 (2019: £3,262). All fees were agreed at arm’s length and charged at market value.

32. ACCOUNTING ESTIMATES AND JUDGEMENTS

In preparing the financial statements, the directors are required to make estimates and judgements. The matters detailed below are considered to be the most important in understanding the judgements that are involved in preparing the financial statements and the uncertainties that could impact the amounts reported in the results of operations, financial position and cash flows. Accounting policies are shown at note 2 to the financial statements.

Pension scheme deficit reduction payments

As stated at note 26, there is a deficit reduction plan in place in respect of Hurstpierpoint College’s membership of the TPT Retirement Solutions’ Growth Plan. FRS 102 requires a liability to be recognised in respect of the present value of future contributions payable under the terms of the deficit recovery plan. The incorporation of this liability in the financial statements involves the exercise of judgement in a number of areas, including the selection of an appropriate discount rate.

Pension scheme contingent liability

As stated at note 29, there is a contingent liability in the event that Hurstpierpoint College were to withdraw its membership of the Pension Trust’s Growth Plan. The independent qualified actuaries advising the TPT Retirement Solutions in respect of the contingent withdrawal liability exercise significant judgement in determining the amount of that liability. Judgement is exercised in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appropriate discount rates.

Provision for bad debts

Debts are provided for if not recovered within one term. Estimating amounts to provide against recovery of debts is a matter of judgement.

Depreciation, impairment and residual values of fixed assets

Judgement is exercised in estimating the residual values of fixed assets, the selection of appropriate rates for depreciation, and for matters of impairment

57