SEDBERGH SCHOOL
REPORT AND ACCOUNTS
For the year ended 31 August 2020
Registered charity: 1080672 Company number: 03946280
BERGH
Founded in 1525
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SEDBERGH SCHOOL
REPORT AND ACCOUNTS
for the year ended 31 August 2020
CONTENTS
Page
Chairman’s Statement 1
Trustees’ Annual Report (Governors’ Report)
Background to Sedbergh School 3
Charitable objects 3
Objectives and activities 3
Strategic report 4
Public benefit activities and community support 6
Strategic Plan 2020-25 7
Financial review 10
Policies 12
Environment and sustainability 14
Statement of compliance 14
Post balance sheet events 15
Structure, governance and management 16
Group structure and relationships 17
Reference and administrative details 19
Statement of Governors’ Responsibilities 21
Independent Auditor’s Report 22-23
Consolidated Statement of Financial Activities 24
Balance Sheets (Consolidated and School) 25
Consolidated Cash Flow Statement 26
Notes to the Accounts 27-52
The following pages do not form part of the audited financial statements
Detailed Statement of Financial Activities for Sedbergh School Appendix 1
Schedules to the Detailed Statement of Financial Activities for Sedbergh School Appendices 2-3
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SEDBERGH SCHOOL
CHAIRMAN’S STATEMENT
for the year ended 31 August 2020
Sedbergh is a diverse organisation. In the UK it comprises Sedbergh Senior and Prep Schools, The Mulberry Bush
Nursery, and commercial subsidiaries offering a wide range of short courses and developing schools overseas. It is
supported by the global alumni association, the Old Sedberghian Club, and by the Sedbergh School Foundation.
All share one ethos delivering an outstanding education for boys and girls up to the age of 18. Our Schools are
inclusive of pupils of a wide range of ability and talents and provide a broad selection of academic and extra-curricular
opportunities to match. There is something for everyone here.
Sedbergh School was established in 1525. At the heart of our education lies the pastoral care of our pupils, whether
they be boarding or day pupils. At Sedbergh they will meet exceptional teachers, make friends for life, and become
part of a community from which they may benefit long after they leave.
It is hard to imagine a more inspiring place in which to live, work and learn. The magnificent location means pupils
can enjoy school life in a safe, healthy and dynamic environment. Academic study is central for every pupil and will
always take priority, but the experiences of a Sedberghian are never confined only to the classroom.
The current global pandemic has taught us many things — the importance of family values, fresh air and a healthy
lifestyle, and the ability to adapt. It has also demonstrated the resilience and commitment of staff, pupils and parents.
Alongside the challenges, the change of circumstances has precipitated many new initiatives, foremost amongst
which are the acceleration of independent learning skills and the further adoption of technology in teaching and
learning.
The shift to remote learning was managed with reluctant ease as the infrastructures and skills were already in place
and we had spent three weeks practising with our staff and pupils in anticipation of the shift. One day of schooling
was lost as the community moved home, but the following day began promptly with wake-up calls and morning
assembly. Throughout the period when School attendance was suspended for all but vulnerable children and those
of key workers, both Schools provided daily assemblies, sports, music and drama activities as well as on-line lessons,
h pupils.
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friends enabled us to make a significant donation to the Sedbergh United Charities Trust to administer within the
town and to provide fee support which enabled pupils from 28 families to continue in School.
None of the foregoing would have been achieved without the universal support of so many within the Sedbergh
School community. As Chairman, | wish to take this opportunity to record my deepest thanks to members of the
Senior Leadership Team who have led the Schools on the ground through unprecedented challenges, and to all the
School staff, who have worked tirelessly to ensure the best possible experience for all our pupils. Across the
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SEDBERGH SCHOOL
CHAIRMAN’S STATEMENT
for the year ended 31 August 2020
community, | offer sincere thanks to our parents and pupils for their support and engagement, and to the Old
Sedberghian Club and the wider Sedbergh community for their encouragement and support. | would also like to
thank fellow Board members for their unstinting commitment and support through this difficult period.
Our immediate priorities are continuing to deliver a world class education and to care for our pupils whilst preserving
the financial strength of the School, and renewed growth in pupil numbers to help support new educational
developments. Chief amongst these are the development of a Technology Centre in the Senior School which will
provide innovative curriculum experiences in the fields of advanced design and manufacturing and computer science
with a focus on major global challenges including water poverty, global-warming and transport sustainability. A new
astro-turf pitch is in the planning stage and at Casterton, Sedbergh Prep School development work will focus on major
refurbishment of our music facility and sports hall.
The School is also preparing to celebrate the 20° anniversary of co-education at Sedbergh in 2021, the bicentenary
of the foundation of Casterton School in 2023 and the quincentenary of the foundation of Sedbergh School in 2025.
We are proud of our history and look forward to the future with confidence and ambition.
Richard Gledhill
Chairman
Sedbergh School
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
for the year ended 31 August 2020
The Board of Governors of Sedbergh School presents its report and financial statements for the year ended 31 August
2020 in accordance with the Companies Act 2006 and the Charities Act 2011, together with the audited accounts for
the year, and confirm that the latter comply with the requirements of the Companies Act 2006, the Charities Act 2011
and the Charities SORP (FRS102).
BACKGROUND TO SEDBERGH SCHOOL
Sedbergh School was founded in 1525 and received a Royal Charter from King Edward Vl in 1551. The Senior School
(‘Senior School’) is based in the market town of Sedbergh in the Yorkshire Dales, and the Preparatory School (‘Prep
School’) and nursery (‘The Mulberry Bush’) are located nine miles away in the village of Casterton. Together the
combined ‘School’ provides education to boys and girls between the ages of six months and 18 years. The Senior
School is boarding, with nine boarding houses. The Prep School has a mix of both boarding and day pupils.
CHARITABLE OBJECTS
The object of the School is to advance education by carrying on in Great Britain a school or schools at which infants,
children and pupils may obtain education and instruction in academic, sporting, musical, cultural, scientific, technical,
vocational, social and commercial subjects, activities and crafts of every description.
OBJECTIVES AND ACTIVITIES
The mission of the School is:
To nurture each Sedberghian so that they realise theirfull potential in a unique and rigorous environment of excellence,
characterised by committed endeavour, moral purpose and integrity of contribution.
In particular, the School aims to:
1. Identify and develop the potential of pupils in a variety of areas: academic, artistic, cultural, sporting,
personal, social and spiritual; help them to obtain the best possible qualifications; and prepare them for the
opportunities, responsibilities and experiences of life;
2. Provide a welcoming, friendly and supportive environment which recognises the worth of each individual;
3. Provide a fulfilling working environment for both teaching and support staff, and encourage their
development;
4. Liaise closely with the parents of its pupils and encourage them to share in the life of the School and the
house;
5. Work responsibly within its environment and community;
6. Attract pupils from a wide range of social and financial backgrounds.
Progress in delivering our aims is summarised below in the strategic report.
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
er.
including singers from the town community, performed highlights of Handel’s Messiah in the Hirst Centre. The
Chamber Choir reached the final five of the BBC Young Choir of the Year competition; sadly the final was another
victim of the pandemic. Pupils from across the School received an average distinction grade in their ABRSM exams,
the best results for more than fifteen years, including a Diploma in flute in which the candidate was just two marks
short of perfection.
The programme of voluntary service and conservation was further extended, with 100 pupils from years 10 to 13
participating in a wide range of activities on a weekly basis. These included classroom assistance in local primary
schools, work in centres for adults with learning disabilities, sports coaching at the Prep School, working in charity
shops and on local conservation projects and EcoSedbergh projects, and establishing a new Education for Heroes
programme. This programme gives educational and study support to forces veterans in the north west. The Eco-
Sedbergh group seeks to make significant changes designed to reduce the School’s carbon footprint; the School was
awarded the Eco-Schools Bronze Award for reducing energy consumption by 9%.
The national lockdown to reduce the spread of Covid-19 occurred with one week of the Lent Term remaining. Having
anticipated this as a possibility, the School was well prepared to begin on-line teaching. This allowed a week of on-
line lessons, as a result of which the timetable was amended for the Summer Term to give pupils and staff more time
away from their screens. Alongside teaching, a daily email to pupils, parents and staff set a challenge for the day,
alongside some suggested physical activity or exercise programme. Challenges ranged from cookery to Sudoku
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RS’ REPORT)
020
. Alongside this Housemasters/mistresses
d Chapel services were streamed, as were
Christmas Festival, exeat concerts and Senior School Chapel services. All pupils were involved in charity fundraising,
including a whole-School sponsored walk, fancy dress days and an elf run.
During the national lockdown, all Prep School pupils received live on-line lessons. Pupils in year 3 and below were
provided with an exercise programme to help coordination and improve physical literacy; pupils in year 4 to 8 were
given aerobic, strength and coordination challenges. Instrumental and drama lessons were provided on-line. Weekly
assemblies were uploaded to YouTube. A small number of key worker children remained in School, and the majority
of children enjoyed at least a partial return to the classroom at the end of Summer Term.
The Mulberry Bush Nursery at Casterton continued to provide first class nursery care and education to children aged
six months and above. Numbers varied through the year, averaging 35 per week, and where possible the Nursery
children joined the Prep School in its activities, for example World Book Day. The Nursery remained closed during
the first national lockdown.
There were no inspections at either School during the year.
The impact of the Covid 19 Global pandemic
After a largely normal Michaelmas Term, focus quickly turned to the threat of the Covid-19 outbreak which developed
rapidly in the early months of 2020. This resulted in the UK Government imposing significant travel and transport
restrictions with mandated closures, self-isolation and quarantine restrictions in March of that year. In anticipation
of enforced closure of both campuses the School developed extensive contingency plans to provide the highest
quality of remote learning, extra curricula activities and pastoral care whilst maximising operational cost savings.
All teaching and learning activity moved to remote learning, which required a new level of digital teaching capability
for pupils to access education in the UK and across the globe. Both sites were closed for the last week of the Lent
Term and the whole of the Summer Term. However, the Prep School partially opened for most of the Summer Term
to provide support for key workers and vulnerable children.
In response to the closure of the campuses the School implemented a detailed operational plan which included
reducing the School fees to reflect the remote teaching, and a cost reduction plan which included furloughing a large
number of non-teaching positions during this period.
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
for the year ended 31 August 2020
Mitigating the financial impact of Covid-19
The closure of the School alongside the cancellation of both Easter and Summer courses resulted in a significant loss
of income. Additional costs were incurred on reopening, implementing a comprehensive regime of bio-security
measures. The School responded swiftly implementing a range of mitigating cost saving measures including:
e = the utilisation of the furlough scheme
e a10% voluntary pay cut for all staff not on furlough for four months
e frozen operational budgets
e areduction in maintenance, repairs and renewals programme
e =astaff restructuring programme
As the future remained uncertain, the School also secured and drew down a Coronavirus Business Interruption Loan
(CBILs) of £1m to add to existing liquid reserves.
PUBLIC BENEFIT ACTIVITIES AND COMMUNITY SUPPORT
Hardship Fund
Financial hardship as a result of the pandemic threatened the continuity of education of a number of pupils at the
School and also the Sedbergh Community. Throughout the year the School has maintained a regular and extensive
ongoing programme of communication with parents offering support during this difficult period with many parents
experiencing uncertainty in terms of job security and future income. In conjunction with the wider Sedbergh
community and together with the Sedbergh School Foundation, a Hardship Fund was established for the benefit of
pupils, parents and members of our local community.
Community support
For several years the School has provided support within the local community, including a range of community
o give generously of their free time in many quite extraordinary
local and wider community.
nted in response to the pandemic including a local ‘meals on
impaired and clinically vulnerable people, with volunteer staff
to provide assistance to those most affected.
recognised in 2020 by winning the Best Community Work Award
20. The judges were impressed with the scale of our community
rghGivesBack — quoting our entry by saying, “The hashtag
paign but a genuine commitment to helping others”.
access for children from a wide range of social and financial
rovide them with the opportunity to benefit from the full breadth
and scholarship assistance, provided they meet the School’s
minimum entry requirements.
Parents who may not normally be able to afford the full fees are supported with means tested bursary awards within
the funds available from permanent endowment assets and restricted funds. Bursary awards are made on the basis
of parental means or to relieve hardship where a pupil’s education and future prospects would otherwise be at risk.
In assessing means, a number of factors are taken into consideration including family income, investments and assets,
together with family circumstances such as dependant relatives and the number of siblings.
This year, the School provided bursary support to 121 pupils amounting to £0.81m which equates to 4.1% of gross
fee income. Governors review both the School policy and actual awards. The policy, which must fit within the
framework of what the School can sensibly afford, is designed to provide the widest possible access including to those
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SEDBERGH SCHOOL TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2020
who fall within the definition of low income households. Means tested support is reviewed on a periodic basis to
identify any significant change in financial circumstance.
The Michael Robertson Scholarship Fund, a separate charity which does not form part of the group, has continued to provide income to support bursary awards, which totalled £0.22m in 2019/20. The Governors recognise this significant contribution and express their gratitude to the Robertson family and appreciation for the work of the Trustees in generating income for the School. In addition, the Roger Lupton Scholarship scheme, funded by the the Sedbergh School Foundation, provides life changing opportunities to children whose families otherwise could not consider a school such as Sedbergh. In 2019/20 there
In addition, the Roger Lupton Scholarship scheme, funded by the the Sedbergh School Foundation, provides life changing opportunities to children whose families otherwise could not consider a school such as Sedbergh. In 2019/20 there were six Roger Lupton Scholars in the School receiving support to the value of £0.15m.
The School is committed to the provision of equal opportunities and an environment that is free of any form of discrimination. Reasonable adjustments are made to meet the needs of pupils and staff who are, or become, disabled.
STRATEGIC PLAN 2020 -2025
The School’s Strategic Plan is for the period 2020-2025. The key objectives of the Plan are summarised below, together with a summary of progress during the year and future plans.
¢ Employability and education for the future To deliver a programme of study which will equip pupils to use technology safely and creatively, and to solve problems in such a way as to enhance their employment prospects. We will also deliver new curriculum development in both Schools.
sports available to pupils, combined with the provision of outstanding music and drama.
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2020
e Manage actively the wellbeing and mental health of pupils and staff
To ensure there is an ethos and environment which takes the mental health of pupils and staff seriously, and in which it is managed and monitored actively with staff and pupils being developed and supported, alongside investment in the subject in the curriculum. Pupil and staff well-being will continue to be actively promoted and ill-health managed swiftly and appropriately to make the School and all its subsidiaries an attractive place to live, work and learn.
e In the year the role of the School Counsellor has become an integral part of our pastoral provision. A range of new initiatives have been implemented to raise awareness and build resilience in our pupils including mental health awareness, mindfulness, wellbeing, prevention and reporting of bullying, online safety and extensive use of confidential surveys within the pupil body.
e Safeguarding policy and practice remains at the forefront of staff and Governor inset training, with regular assessment and review at all levels of daily operations. This training includes all staff including those working within the trading subsidiaries. Staff welfare remains paramount and work has commenced on a full review of systems and practice to support wellbeing in the workplace with the launch of the staff intranet which includes access to counselling services and a suite of confidential health and wellbeing support services.
e Sustainability
To review every aspect of our operations to ensure that we operate on a sustainable basis including delivering target reductions in energy consumption and carbon emissions. Pupils will be involved in a range of initiatives to deepen their understanding of climate change and other environmental issues.
Investment in energy reduction measures as part of the planned refurbishment work of the campus has commenced and we continue to closely monitor our carbon footprint. Pupils have been engaged in a range of initiatives to raise awareness and involvement in all aspects of sustainability and the environment (further details on page 14).
The School recognises our corporate and social obligations to set clear targets to reduce greenhouse gas emissions with a range of extensive measures and investment planned over the next five years. They include plans for extensive boarding house modernisation.
e Development of land and assets To progress plans for a new teaching facility to support further curriculum development in design and information technology; to modernise elements of the boarding house accommodation and to develop additional sports facilities. The recently constructed Hirst Sports Centre at the Senior School was put to full use in the year, providing the School with an additional double court sports hall and an extensive fitness and conditioning centre which is equipped with the latest technology. It was also widely used for recreational and social activities by both pupils and the local community.
Development of a future vision for an educational journey which places real emphasis on global citizenship and technology skills in the workplace has continued and will provide the basis upon which detailed plans for a new Technology Centre will be finalised. Plans for the new facility have been aligned to a new curriculum development programme and we are in the process of engaging the design team for this exciting project.
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SEDBERGH SCHOOL TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2020
e Overseas schools expansion
To support the development and academic success of Rong Qiao Sedbergh School, Fuzhou and open additional overseas schools under licensing and service agreements
Rong Qiao Sedbergh School, in Fujian Province, China opened in September 2018 with 116 pupils, world-class facilities and a strong and experienced leadership team offering a blended British curriculum and compulsory Chinese curriculum in a bilingual school. The pupil roll is now over 400 and is projected to exceed 700 pupils by September 2021. Sedbergh School International Limited continues to benefit from an outstanding investor partner in the Rong Qiao Group based in Fujian province who continue to seek further opportunities for expansion of their educational division within mainland China.
e Non-fee based revenue generation
To deliver our targets for non-fee based revenue streams through a range of commercial ventures undertaken by our commercial subsidiaries, Sedbergh School International Limited and Sedbergh School Developments Limited. Whilst the pandemic prohibited the majority of the planned fee generation activity for 2020, Sedbergh School Developments Limited was able to deliver successful day courses over the summer and a series of webinars and its outreach activity continued with Schools and clubs.
Looking forward we remain positive, and we aim to: e Berecognised as a centre of excellence in the UK and the centre of excellence in the north of England for high quality coaching courses for children, coaches, parents, clubs and prep schools; e Enhance established and create new partnerships with schools and clubs nationally and internationally, offering bespoke packages via an elite coaching and support team; e Build on the success of the International Summer School to develop a market leading and innovative product range for the overseas market; e Strengthen the collaborative partnership with The Magic Academy, which is a world leading provider of sports coaching, and introduce corporate development packages to forge new links with the business world;
e Generate a sustainable and growing revenue stream for the School from overseas schools; and e Secure a new partner for international school expansion and opening further schools overseas.
e Financial security, including fundraising
To deliver long term financial security through effective commercial risk management, delivery of our medium term financial goals and support of our affiliated organisations including fundraising and alumni development.
The charity monitors financial progress across both Schools and its commercial subsidiaries against a detailed five year rolling financial plan to deliver our long term long financial goals which include:
e generating additional liquid reserves e = funding future capital expenditure e tostrengthen our competitive position in our UK and global markets. Financial performance against defined milestones is subject to termly review by the Executive Committee and Board of Governors.
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SEDBERGH SCHOOL
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TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2020 Dynamic risk assessment measures are in place for each operational unit including the commercial subsidiaries and strategic risks are considered and reviewed by the Strategic Leadership Team on a monthly basis and by the Board of Governors ona termly basis.
Our fundraising activities are carried out through the Foundation which has continued to provide support via a pandemic Hardship Fund, the Roger Lupton Scholarship scheme and supporting ad hoc house-based projects throughout the School. Further details are set out on page 17 of this report, and page 48 of the Accounts. The School also continues to be well supported by its alumni via the Old Sedberghian Club. The Foundation has an ambitious fundraising plan to support the development of both Schools.
## FINANCIAL REVIEW
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The financial year ended 31 August 2020 was dominated by the impact of the pandemic, resulting in the closure of
both School campuses and the move to remote working in the last week of the Lent Term and throughout the Summer
Term, as well as the cancellation of nearly all short courses. This led to a significant loss of income but with careful
cost management and the support of the Coronavirus Job Retention Scheme grant the loss in the year was minimised.
Major movements £'000
Increase Mi Decrease Mf Total
1,000 396
500
; 1,160
(500) (152) (398)
{(1,000) (1,721) 1,030
(1,500)
(2,000) 42
(2,500) (1,185)
p yee” vaalle” aa _ ae it® ae aan pe
aeoa eo a ee one® core ve _ a a
coeoe ° ieene we"a
Total income fell by 9% to £17.9m (£19.7m in 2018/19)
resulting from the reduced fee and loss of short course
INCOME income and offset by £1.03m of funding from the
School fees 86% | alloronavirusin incomeJob was Retention wholly attributable to Scheme (or furlough the pandemic; scheme).pupil The
Tratli , umbers (on a full time equivalent basis) across both schools
rading turnover 3.5% emained in line with the prior year, although below pre-
a Investments 0.3% andemic expectations. Successful retention of pupils during
he pandemic is attributed to the support of both parent
= Donations, legacies & odies, the quality of our remote learning provision and the
prants 8.4% . . .
edication of our teaching staff.
= Other income 1.8%
oncessions as a percentage of gross fee income have
emained at 22% (22% 2018/19) overall. The School policy on
cholarship and bursary awards ensures that significant
mphasis is placed upon providing means tested support.
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
for the year ended 31 August 2020
POLICIES
Principal sources of funding
The principal sources of funding for the School are fees including fees received in advance, commercial income
generated by the subsidiaries, and bank finance including medium term bank borrowings and a bank overdraft facility.
In addition, the School receives support for bursaries and capital programmes from the Foundation and other charities
and donors.
Reserves
The School policy is to invest retained surpluses to support the development of the School, while ensuring that
sufficient reserves are held to meet any contingencies as they arise.
According to the Charities' SORP definition, free reserves should exclude endowment and restricted funds and funds
which can only be realised by disposing of fixed assets held for School use. On this narrow basis, the School has no
free reserves but the Governors are satisfied with the School’s position given the unrestricted cash and unrestricted
investments available, which at the end of the financial period amounted to £5.16m (2019: £4.82m) alongside the
undrawn bank facilities of £2m. In addition, the School benefits from a portfolio of residential property totalling
£5.6m.
The Governors continue to monitor cash, investments and reserves closely to ensure that sufficient reserves are
available to meet potential threats to future income, in particular from a deterioration in the economic climate.
Subject to this, it is the intention of the Board to reinvest operational surpluses generated into School improvements.
With the impact of the pandemic managed proactively, and with the receipt of the CBILs funds of £1m, the School
has maintained its reserves and cash position.
Total funds of the School are £17.7m, which comprise: Endowment funds £1.7m, Restricted Funds £1.1m and General
funds of £14.9m.
Investments
The School’s funds under management were valued at £3.4m as at 31 August 2020. The School has an underlying
investment strategy of long term capital preservation with the objective of delivering positive absolute returns with
low volatility in capital values. The funds are split between the CF Ruffer Total Return Fund and short term cash
deposits. The School investment policy is approved by the Governors and monitored by the Investments Sub-
Committee. In accordance with this policy the funds performed adequately.
Public benefit
In setting objectives for means tested bursaries, community engagement and social inclusion, the Governors have
had regard to the Charity Commission’s guidance on public benefit.
Disabled persons
The School is committed to providing an environment which values and includes all pupils, staff and parents regardless
of their educational, physical, sensory, social, spiritual, emotional and cultural needs. It seeks to challenge attitudes
about disability and accessibility, and to develop a culture of awareness, tolerance and inclusion. The School complies
with all relevant legislation relating to disabled persons.
The School’s policy requires that a disabled job applicant would not be rejected for a reason which relates to his/her
disability; job specifications are always used and selection criteria monitored to ensure that discrimination does not
unwittingly occur; and recruitment and selection procedures are adapted where possible to ensure that they do not
disadvantage disabled job applicants. The School takes steps to try to enable an employee who becomes disabled to
remain in employment. In consultation with the employee, adjustments to facilitate their retention will be
considered. Employees with disabilities are provided with opportunities to develop full and rewarding careers on an
equivalent basis to other employees with similar skills and abilities.
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
for the year ended 31 August 2020
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The Accessibility Plans for both campuses illustrate how the School plans over time to further increase accessibility for pupils, staff and visitors who have disabilities. The School aims to make reasonable adjustments to allow disabled pupils to access the education available, bearing in mind the historic nature of its buildings and widespread campuses. These Plans are reviewed every twelve months.
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Risk management
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|Category|Risk|Principal mitigating actions|
|---|---|---|
|Pandemic|Impact of infection in the School and threat tothe local
community
Inabilityto provide all aspects ofthe Sedbergh education,
including an enforced lockdown resulting in temporary
closure ofthe School and resulting in loss of revenue
Additional costs arisingfromthe pandemic|— Pandemicworking group
established
— Developed policies and procedures
— Cost contingency plan actioned
— Bio security measures
implemented|
|Financial
and
Economic|A failure to generate sufficient cash flowto meet strategic
objectives and minimum cash generation requirements|— Pupil feeforecasts
— Cashflows and reserves policy
— Marketing strategy
— Monthly review offinancial
forecasts
— Loan facility review
— Capex programme review
— Contingency planning|
|Staff|Inability to recruit and retain high calibre staff resulting in
©
staff shortages.
Loss of key staff or senior management team, due to
illness or accident.|©— Review of remuneration packages
— Succession planning.
— Health insurance and health
checks for key staff.|
|Reputation|Reputational damage as a result ofan adverse incident at
the School or in a subsidiary.|— Appropriate policies, procedures
and stafftraining
— Communications plan in place.|
|Political|Possible political, taxation and regulatory changes (suchas
loss of charitable status, imposition ofVAT on school fees,
loss of business rate relief, levy changes, increases in
Teachers’ Pensions contributions, changes in overseas
pupil visas).|— Regular review offorecasts with
sensitivity analysis
— Legal/financial advice
— Advice from sector bodies eg ISC
and ISBA
—
- Contingency plans.|
The School subsidiaries hold their own registers of strategic and operational risks which are in a consistent format to that of the School and are reviewed by their respective boards on a regular basis.
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2020
ENVIRONMENTAL AND SUSTAINABILITY The School recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused.
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol — Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
(kWh) Kg COze Scope 1 Gas Consumption 8,594,562 1,580,282 Transport 1,205,842 290,089 Scope 2 Electricity Consumption 1,791,362 417,638 TOTAL 11,591,766 2,288,009 Intensity ratio Kg COze per pupil 3,165 Intensity measurement The chosen intensity measurement ratio is total gross emissions in metric kilograms COze per pupil, the recommended ratio for the sector.
Improvements in energy efficiency We continue to work on improvements in energy efficiency, in line with the School’s Strategic Plan, including: e increased education and action on recycling and energy use in our physical and remote office environments e reduced energy usage by better efficient products and materials — at the forefront of major repairs & renewals and capital projects including: o lighting upgrades to LED equivalents © upgrade to heating systems and reduction of all boilers by 2°C o insulation upgrade to properties as necessary e continued reduction in reliance on printing e making better use of technology to reduce travel requirements.
STATEMENT OF COMPLIANCE The Governors have complied with their duty in regards to the matters in section 172 (1) (a)-(f) of theCompanies Act 2006 (‘the Act’). The Governors confirm that they have acted in the way they consider, in good faith, would be most likely to promote the success of the School and for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: e the likely consequences of any decision in the long term; e the interests of the School's employees; e the need to foster the School’s business relationships; e the impact of the School's operations on the community and the environment; e the desirability of the School maintaining a reputation for high standards of business conduct; and e the need to act fairly as between members of the School. Relationships The School is influenced by our stakeholders, including our pupils and their families, suppliers, employees, the Government and our strategic partners. Our approach to all these parties is founded on the principle of open and honest dialogue based on a mutual understanding of needs and objectives.
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
for the year ended 31 August 2020
Relationships with parents are managed on an individual basis, through those in close contact with them through the
education journey, as well as key communication forums and the interaction with staff on the school site and at
events.
The School, the Governors and senior employees participate in various education sector associations and groups,
which give access to supplier groups and decision-makers, Government and other regulatory bodies.
The School is a member of the Headmasters’ & Headmistresses’ Conference, the Independent Association of Prep
Schools, the Independent Schools’ Bursars’ Association and the Association of Governing Bodies of Independent
Schools.
Employee engagement
The School continues to place a high emphasis on mutually beneficial relationships with its employees, whom it
regards as essential to the School’s future success.
There is a well-established system for regular communication with staff at all levels in both Schools, including weekly
departmental meetings, regular email updates, and formal and informal staff presentations, as well as a full in-service
training programme and an extensive social diary. In addition, staff join weekly sessions in small groups to discuss
School policies and regulations to check understanding, raise awareness and discuss any concerns or clarification
required. Employees are encouraged to raise any issues or ideas for improvement they may have with their line
manager or through the whistleblowing arrangements.
Staff at all levels are kept advised of the progress of the school in comparison with our strategic objectives and
development plans, including matters that may be pertinent to their immediate interests. The Chairman of Governors
anda staff liaison Governor both attend occasional staff meetings.
During the pandemic staff engagement and communication has been enhanced, although much of [this] [has] [been] [done]
remotely.
The School puts great emphasis on providing equality of opportunity for all employees and ensure that fair selection
and development procedures apply. The aim of the policy is to ensure that no job applicant or employee receives
less favourable treatment on the grounds of age, sex, disability, marital status, colour, religion, race or ethnic origin,
or is disadvantaged by conditions or requirements which cannot be shown to be justifiable. In the event of an
employee becoming disabled whilst in the Schools employment, measures will be taken to ensure that they can
continue in their employment as far as is practical.
POST BALANCE SHEET EVENTS
The pandemic has continued to impact the School in the period following the financial year ended 31 August 2020.
As was the case in the Summer Term of 2020, and again in the latter half of Michaelmas Term and early Lent Term
2021, the remote learning provision was implemented, and fees adjusted to reflect this. Costs were reduced, staff
furloughed and budgets frozen to minimise the impact on our reserves.
As we approve the financial statements the continuing impact of the pandemic, in particular on the economy, remains
uncertain. We are continuing to follow the latest guidance provided by the Government, Independent Schools
Council, Independent Schools’ Bursars’ Association and National Institute of Health Protection. Whilst we cannot be
certain, we are hopeful that the Schools’ main campuses will reopen for the Summer Term, although it is unlikely our
Easter courses will be able to take place.
Following the recent government announcement we plan to reopen the Schools and welcome back pupils to Sedbergh
and Casterton on 8 March 2021, and we plan to host limited Easter courses.
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
for the year ended 31 August 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
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The day to day running of both Schools is delegated to: the Principal, the Chief Operating Officer, the Headmaster:
Sedbergh, the Headmaster: Casterton, Sedbergh Prep School and the senior management teams at the Senior and
Prep Schools. The Principal and the Chief Operating Officer are responsible to the Board for the delivery of the
strategic objectives set out in the strategic plan and attend the Governors’ Board and relevant Sub-Committee
meetings as appropriate.
The Board delegates authority through formal terms of reference to a range of committees and sub-committees
including the Executive Committee, and the Audit & Compliance, Investments, Education and Nominations Sub-
Committees. The commercial subsidiaries are separate limited companies who report to their own independent
boards.
Arrangements for setting pay and remuneration of key management personnel
Remuneration for senior management positions is determined by the Remuneration Sub-Committee of the Executive
Committee. The Sub-Committee reviews the terms and conditions of the senior office holders on an annual basis.
Due consideration is given to national benchmarking reports, including periodic surveys by independent authorities
such as AGBIS and Baines Cutler (an independent schools consultancy business), to ensure that their remuneration is
commensurate with similar roles within the sector.
Indemnity insurance
Third party indemnity insurance was in place for the benefit of Governors during the period.
Appointment of new Governors
Members of the Governing Body are recruited by invitation to ensure that the right mix of skills, talent, expertise and
experience is achieved to deliver effective governance and achievement of the strategic goals of the School. The
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
for the year ended 31 August 2020
diversity of age, gender and ethnicity is also considered. A Nominations Sub-Committee meets regularly to consider
new Governor appointments.
On appointment, new Governors receive induction training which takes into account their existing professional
qualifications or area of expertise. An ongoing programme of Governor training is in place.
The appointment of a Chairman was overseen by a senior Governor who sought nominations from amongst Board
members and consulted with each Governor and the members of the SLT. The conclusion of this process saw Richard
Gledhill elected as Chairman from July 2020.
GROUP STRUCTURE AND RELATIONSHIPS
The Charity has two wholly owned subsidiaries and an associated company; in addition it has close relationships with
the Old Sedberghian Club and with two other unconnected separate charities, as follows:
Subsidiaries
Sedbergh School Developments Limited
Sedbergh School Developments Limited was incorporated on 11 April 1996. Its principal activities continue to be the
provision of courses and other commercial trading ventures.
Sedbergh School International Limited
Sedbergh School International Limited was incorporated on 7 October 2015 in order to facilitate the provision of
educational activities outside of the United Kingdom.
Associate
Sedbergh Hotel Enterprises Limited
Sedbergh Hotel Enterprises Limited is an associated company, set up to procure, refurbish and run The Black Bull in
Sedbergh. Sedbergh School Developments Limited holds 36% of the shares of Sedbergh Hotel Enterprises Limited.
Other
The Sedbergh School Foundation (the Foundation)
The Foundation is a separate charity, whose purpose is to raise funds and support current and future investment in
facilities, amenities and activities undertaken by the School. There is a close relationship between the Foundation and
the School, with a number of Governors sitting on the Board of the Foundation.
The Old Sedberghian Club (‘OS’ Club)
The OS Club is a separate society which provides the School alumni with an extensive programme of events, activities
and support. The School benefits from the generosity of a thriving network of Old Sedberghians whose close support
is greatly appreciated and gladly acknowledged.
The Michael Robertson Scholarship Fund
The Michael Robertson Scholarship Fund is an independent restricted fund, not part of the group, which kindly
provides income on an annual basis to support bursary awards at the School.
Fundraising and the Foundation
The Foundation is an independent charity that provides financial support to the School. The Foundation made
restricted grants to the School during the year totalling £0.20m providing additional scholarships and bursary support
alongside several house based fundraising initiatives. The School did not carry out any direct fundraising activity on
its own behalf and did not engage third party fundraisers.
As discussed in the Chairman’s Statement, a Hardship Fund appeal was launched at the start of the pandemic, via the
Foundation. The purposes of the Fund were to support the local community, provide fee support for pupils whose
families suffered financially as a result of the pandemic, and to support staff in need. The remarkable sum of £105k
was raised, all of which has been used to fulfil the purposes of the Fund.
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
for the year ended 31 August 2020
As the School looks forward to the next five years, the Foundation Trustees and the Governors have developed an
ambitious plan to celebrate the bicentenary of the foundation of Casterton School in 2023 which marks 200 years of
the education of girls at Casterton; and the quincentenary of the foundation of Sedbergh School. Both anniversaries
will be celebrated by drawing on the histories of the Schools and celebrating with alumni, pupils and parents.
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SEDBERGH SCHOOL TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT) for the year ended 31 August 2020
REFERENCE AND ADMINISTRATIVE DETAILS
Governing body Chairman: - HM Blair CPFA [retired 4 July 2020]
- RJ Gledhill, MA (Cantab), ACA *# [appointed 4 July 2020] Ex-Officio: - The Lord Archbishop of York, represented by the Venerable N J W Barker MA (Oxon) # - Her Majesty’s Lord-Lieutenant of Cumbria, Mrs C T Hensman BA (LSE) Representative: - DrEJLWaring PhD, MA (Cantab), LLM (Harvard), St John’s College, Cambridge Co-optive: - Mrs L Bates BA (Liverpool John Moores)* - AJN Bedford BA (North Carolina) - HM Blair CPFA [retired 4 July 2020] - JD Campbell OBE FRSA* - |W Durrans BA (Oxon), ACA*# - Sir Roger Gifford MA (Oxon) - RJ Gledhill, MA (Cantab), ACA *# - Lt Gen Sir Andrew Gregory KBE, CB, MA (Cantab) - RN Papworth BA (Oxon) *# - MR Piercy MA (Leicester) - JHBWarburton-Lee
* Members of the Executive Committee at 31 August 2020
# Members of the Audit and Compliance Committee as at 31 August 2020
Principal AAP Fleck BSc (Nottingham), MA (Sussex)
Headmasters Senior School: Prep School:
DJ Harrison MA (Cantab) W R Newman BEd (Exeter), MA (Victoria)
Chief Operating Officer, Company Secretary and Clerk to the Governors P S Marshall TD
Registered address Sedbergh School Malim Lodge Sedbergh LA10 5RY ~~www.sedberghschool.org~~
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SEDBERGH SCHOOL
TRUSTEES’ ANNUAL REPORT (GOVERNORS’ REPORT)
for the year ended 31 August 2020
Bankers Investment managers
clays Bank Plc Ruffer LLP
1 Floor, 3 Hardman Street 31 Charlotte Square
Spinningfields Edinburgh
Manchester M3 3HF EH2 4ET
Auditor Insurance brokers
Haysmacintyre LLP Marsh Brokers Ltd
10 Queen Street Place Capital House
London 1-5 Perrymount Road
EC4R 1AG Haywards Heath RH16 3SY
Solicitors
Veale Wasbrough Vizards Muckle LLP
Narrow Quay House Time Central
Narrow Quay 32 Gallowgate
Bristol BS14QA Newcastle upon Tyne NE1 4BF
Farrer & Co
66 Lincoln’s Inn Fields
London
WC2A 3LH
STATEMENT OF DISCLOSURE OF INFORMATION TO AUDITOR
The Governors who were in office on the date of approval of these financial statements have confirmed, as far as
they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Governors
has confirmed that they have taken all the steps that they ought to have taken as directors in order to make
themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
AUDITOR
The auditor, Haysmacintyre LLP has indicated a willingness to continue in office. A resolution to reappoint
Haysmacintyre LLP as auditor will be put to the members at the AGM.
20
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e select suitable accounting policies and then apply them consistently; e observe the methods and principles in the Charities SORP (FRS102); e make judgements and accounting estimates that are reasonable and prudent; e state whether the applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Sedbergh School Governors are responsible for keeping adequate accounting records which disclose with sufficient accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Governors are aware:
e there is no relevant audit information of which the charitable company’s auditor is unaware; and e the Governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
This report, which incorporates the Strategic Report, was approved by the Governors on 13th March 2021 and signed on their behalf by:
(B ati; A }A y;td[AAA][Var]
R J Gledhill
Chairman
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SEDBERGH SCHOOL
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SEDBERGH SCHOOL
Opinion
We audited the financial statements of Sedbergh School for the year ended 31 August 2020 which comprise the
Co ated Statement of Financial Activities; the Group and School Balance Sheets, the Consolidated Statement of Cash
Flo d notes to the financial statements, including a summary of significant accounting policies. The financial reporting
fra rk that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including
Fin | Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United
Kin Generally Accepted Accounting Practice).
In inion, the financial statements:
give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 August
2020 and of the group’s and parent charitable company’s net movement in funds, including the income and
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## SEDBERGH SCHOOL
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account) for the year ended 31 August 2020
||||||Total||Total|
|---|---|---|---|---|---|---|---|
|||Unrestricted|Restricted|Endowed|2020|||2019|
||Note|£’000|£’000|£’000|£’000|}|£’000|
|Incomefrom:||||||H||
|Charitable Activities:|||||||||
|- School fee income|2|15,389|-|-|15,389|||17,110|
|- Other educational income|3|169|-|-|169|i|104|
|- Otherancillary income|3|124|-|-|124|H|155|
|Othertrading activities:|||||||||
|- Trading income|4|630|-|-|630||1,815|
|Investmentincome|5|34|19|-|53|||46|
|Donations, legacies & grants|6|1,033|469|-|1,502||498|
|Other income:||||||||
|- Loss on sale offixed assets||(3)|-|-|(3)|i|(14)|
|- Sundry income||34|-|-|34||18|
|TotalIncome||17,410|488|-|17,898|||19,732|
|Expenditure on:||||||||
|Charitable Activities||16,739|473|6|17,218|i|17,338|
|Raising Funds:||||||i||
|- Trading costs||896|-|-|896||1,467|
|- Financing costs||182|-|-|182|||201|
|TotalExpenditure|8|17,817|473|6|18,296|||19,006|
|Net (Expenditure)/Income||(407)|15|(6)|(398)||726|
|Other Recognised (Losses)/Gains||||||||
|Gains on investments|9|61|34|63|158||11|
|Actuarial lossesondefined benefit
pension scheme|20|(14)|-|-|(14)||
i|(105)|
|NetMovement in Funds||(360)|49|57|(254)|||632|
|TotalFundsBroughtForward||15,242|1,036|1,704|17,982|||17,350|
|TotalFundsCarriedForward|17|14,882|1,085|1,761|17,728||17,982|
All activities are classed as continuing. The notes on pages 27 to 52 form part of these accounts.
24
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SEDBERGH SCHOOL
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BALANCE SHEETS
At 31 August 2020 Company number: 03946280
Consolidated School
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Note
Fixed Assets
Tangible fixed assets 10 22,304 22,463 22,304 22,463
Investments 11 3,421 3,280 2,794 2,679
25,725 25,743 25,098 25,142
Current Assets
Stocks 12 233 304 226 297
Debtors 13 1,237 1,729 1,458 1,577
Cash at bank and in hand 3,891 3,601 3,648 3,339
5,361 5,634 5,332 5,213
Creditors: amounts falling due within one year 14 (6,252) (7,280) (6,137) (7,145)
Net Current Liabilities (891) (1,646) (805) (1,932)
Total Assets Less Current Liabilities 24,834 24,097 24,293 23,210
Creditors: amounts falling due after more than one
year 15 (7,106) (6,115) (7,106) (6,115)
Total Net Assets Excluding Defined Benefit Pension
Sch Asset 17,728 17,982 17,187 17,095
Def Benefit Pension Scheme Asset 20 - - - -
Tot t Assets 17,728 17,982 17,187 17,095
Fun
Unr ted funds
General reserve 18c 11,016 11,376 11,102 11,090
Revaluation reserve 18c 3,866 3,866 3,866 3,866
Pension reserve 18c - - - -
18c 14,882 15,242 14,968 14,956
End ent funds 18a 1,761 1,704 1,761 1,704
Res d funds 18b 1,085 1,036 458 435
Tot ds 17,728 17,982 17,187 17,095
The School’s net expenditure for the year was £23,000 (2019: net income £521,000) and the net movement in funds was
£92,000 (2019: £433,000).
The financial statements were approved, authorised for issue and signed on behalf of the Board of Governors on 13 March
2021.
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/) L, —_
Chairman
25
SEDBERGH SCHOOL
CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 August 2020
Operating Activities Net (costs)/income Depreciation charge Investment income Interest paid Investment management fee Loss on sale of fixed assets
Defined benefit pension scheme Decrease in stocks Decrease/(increase) in debtors (Decrease)/increase in creditors
Net cash provided by Operating Activities
Investing Activities Investment income Costs from sale of fixed assets Purchase of tangible fixed assets Proceeds from the sale of assets held for resale Proceeds from sale of investments Purchase of investments
Net cash used in Investing Activities
Financing Activities Interest paid Receipts from loans Payments on loans Finance lease rentals
Net cash provided by Financing Activities Change in cash and cash equivalents in the period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Represented by: Cash at bank and in hand
2020 2019 £’000 £’000 £’000 £’000 (398) 726 873 831 (53) (46) 182 201 18 28 3 14 (14) (50) 71 34 492 (599) (676) 1,265 498 2,404 53 46 - (14) (717) (725) - 660 886 3,513 (887) (3,514) (665) (34) (182) (201) 1,000 564 (344) (86) (17) (26) 457 251 290 2,621 3,601 980 3,891 3,601 3,891 3,601
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SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS
31 August 2020
1 Accounting policies
Legal status
Sedbergh School is an incorporated (private company limited by guarantee) charity (charity no. 1080672, company
no. 03946280), registered in England. The School’s address is Sedbergh School, Malim Lodge, Sedbergh, LA10 5RY.
Sedbergh School was founded in 1525 and received a Royal Charter from King Edward VI in 1551. The object of
Sedbergh School is to advance education by carrying on in Great Britain a school or schools at which infants,
children and pup
technical, vocation
meets the definiti
Basis of accountin
The accounts are
convention as mo
dwellings and pro
Generally Accepte
in the UK and Rep
SORP (FRS 102)(se
Monetary amount
indicated. The fina
Basis of consolida
The School’s indiv
Sedbergh School Scholarship Fund (charity no. 1080672-2), Rosalie Mary Forster Bursary Fund (charity no.
1080672-3) and Casterton School Scholarship Fund (charity no. 1080672-4).
The consolidated accounts include the School, the Appeal Fund, the Education Fund, the School’s trading
subsidiary, Sedbergh School Developments Limited (company no. 03184583) and Sedbergh School International
Limited (company no 9814021) together with the share of the results of its associate Sedbergh Hotel Enterprises
Limited (company no 10598631), in which Sedbergh School Developments Limited has a 36% shareholding.
All financial statements are made up to 31 August 2020 except for Sedbergh Hotel Enterprises Limited which has
a financial year end of 30 June 2020. The following accounting policies have been applied consistently in dealing
with items that are considered material to the School’s financial statements.
The charity has from presenting its unconsolidated income and expenditure account under
section 408 of 6.
Reduced disclo
In accordance ool has taken advantage of the exemptions from the following disclosure
requirement in | statements of Sedbergh School:
e §=Sectio Flows’ — Presentation of a Statement of Cash Flows and related notes and
disclo
e = Sectio struments’— Carrying amounts, interest income/expense and net gains/losses
for ea ial instrument; basis of determining fair values; details of collateral, loan
defau
e = Sectio closures’ — Compensation for key management personnel.
27
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SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued)
31 August 2020
Going concern
The School has net current liabilities at 31 August of 2020 of £0.81m (2019: £1.65m) which is primarily due to fees
received in advance of future financial years from parents who have taken advantage of early payment/incentive
schemes £3.05m (2019: £3.91m) and included in creditors.
The COVID-19 pandemic has impacted income during 2020, in particular a reduction in boarding fees and course
income due to the closure of these facilities in the Summer term and holidays. This has been mitigated by a
programme of cost savings. Whilst the future results may be affected from this pandemic, the Governors have
considered the current cash position and future forecasts including sensitivity analysis. Therefore, the Governors
remain confident in its cash flow forecast and its ability to meet its ongoing obligations as they arise for the next
twelve months from the date of approval of the financial statements. As a result, the financial statements are
prepared on a going concern basis.
The Governors consider that there are no material uncertainties that could cast significant doubt on the School’s
ability to continue as a going concern.
Income
Income from School fees represents fees earned in respect of tuition given during the year. Fees received in
respect of tuition to be given after the year end are included in creditors as fees received in advance. Fees
receivable are stated after deducting allowances for scholarships and bursaries granted by the School, but include
contributions received from restricted funds for scholarships, bursaries and other grants.
Income from trading activities represents the invoiced value, net of Value Added Tax, of goods sold and services
provided to customers during the period. Turnover is recognised when substantially all the risks and rewards of
ownership have been transferred.
Donations received for the general purposes of the School are recognised where there is entitlement, the receipt
is probable, and the amount can be measured with sufficient reliability. Donations subject to specific wishes of the
donors are carried to relevant restricted funds, or to endowment funds where the amount is required to be held
as permanent capital.
Other income, including investment income, is accounted for on an accruals basis.
Grant income, including income from the Coronavirus Job Retention Scheme, is recognised and accrued, in the
period to which the relevant costs relate.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third
party, it is probable that a transfer of economic benefit will be required in settlement and the amount of the
obligation can be measured reliably. Amounts are discounted to present value for longer-term liabilities.
Expenditure is summarised under functional headings on a direct costs basis.
Expenditure on raising funds are those costs incurred in attracting voluntary income and those incurred in trading
activities that raise funds.
Charitable activities include expenditure associated with the objects of the School and both the direct costs and
support costs relating to this activity. Grants awarded are expensed as soon as they become legal or operational
commitments. Management and administration costs include governance costs incurred in the governance of the
School and its assets and are primarily associated with constitutional and statutory requirements.
Taxation
The School is a registered charity and therefore it is exempt from income and corporation tax on income and gains
falling within chapter 3 Part 11 Corporation Tax Act 2010 or S256 of the Taxation of Chargeable Gains Act 1992 to
the extent that these are applied to its charitable objects.
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SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued)
31 August 2020
Taxation (continued)
The subsidiary undertakings, Sedbergh School Developments Limited and Sedbergh School International Limited
are liable to income and corporation tax on their income and gains. Gift aid payments paid to the Charity will
reduce the taxable income and gains. The subsidiaries are eligible to make gift aid payments to their holding
company, the School. Details of Sedbergh School Developments Limited and Sedbergh School International Limited
policies on gift aid can be found within their financial statements.
Fixed assets
The School buildings, boarding houses and land owned by the School at Sedbergh are included on the balance
sheet at the historical cost.
Private dwellings (“residential properties”) and property held for sale are held at valuation. All movements in value
arising from a change in value of private dwellings, in excess of their original cost, are shown in the Statement of
Financial Activities as revaluation gains or losses, with movements being credited/charged to the revaluation
reserve. Any diminution in value below original cost is charged to the Statement of Financial Activities as an
impairment. No subsequent depreciation has been charged as the estimated residual values of the properties are
not materially different from their carrying values at 31 August 2020.
All other fixed assets are measured at their cost or values at the time of acquisition, net of depreciation and any
impairment losses. Capital items costing less than £1,000 are written off as an expense as acquired.
Depreciation
Depreciation is provided on tangible fixed assets at rates and bases calculated to write off the cost less estimated
residual value, based on current market prices, of each asset over its expected useful life as follows:
School buildings - 50 years
Fixtures and fittings - 5-20 years
Computer equipment - 3 years
All weather pitch - 20 years
Motor vehicles - Ayears
Leasehold improvements - over the life of the lease
Land is not depreciated and assets under construction are only depreciated once they come into use.
Impairment of fixed assets
An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired
or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the School
estimates the recoverable amount of the asset.
Investments
Investments are stated in the balance sheet at their market value as at the balance sheet date. All movements in
value arising from investment changes or revaluation are shown in the Statement of Financial Activities and are
allocated to the appropriate fund according to the allocation of the underlying asset.
Investments in associates are recognised initially in the consolidated balance sheet at the transaction price and
subsequently adjusted to reflect the group's share of total income and equity of the associate, less any impairment.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the
School has a legal obligation to make good the losses.
Investments in associates are accounted for at cost less impairment in the individual financial statements.
Stock
Stock is valued at the lower of cost (based on purchase price) and fair value.
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29
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SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued)
31 August 2020
Pension schemes
Retirement benefits for the School’s teaching staff are provided by the Teachers’ Pension Scheme (TPS). This is a
defined benefit scheme which is externally funded and contracted out of the State Earnings Related Pension
Scheme. This scheme is a multi-employer pension scheme. It is not possible to identify the School's share of the
underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and
therefore, as required by FRS 102, the School accounts for the scheme as if it were a defined contribution scheme.
The School's contributions, which are in accordance with the recommendations of the Government Actuary, are
charged in the period in which the salaries to which they relate are payable.
The School contributes to a separate defined benefit scheme for non-teaching staff. This is an occupational defined
benefit scheme. The defined benefit pension scheme current service costs are charged to the Statement of
Financial Activities within staff costs. Net interest on the net defined benefit asset is recognised in the Statement
of Financial Activities. The scheme actuarial gains and losses are recognised immediately as other recognised gains
and losses. The defined benefit scheme assets are measured at fair value at the balance sheet date. Scheme
liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and
discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term
to the scheme liabilities. The School only recognises an asset in respect of a surplus on the scheme valuation to
the extent that the asset is recoverable through reduced future contributions or through a reimbursement from
the Scheme.
The School also contributes to a group money purchase scheme for non-teaching staff. Contributions are charged
to the Statement of Financial Activities in the period in which the salaries to which they relate are payable. Defined
contribution pension costs are allocated to unrestricted funds.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense. The best estimate of the
expenditure required to settle an obligation for termination benefits is recognised immediately as an expense
when the School is demonstrably committed to terminate the employment of an employee or to provide
termination benefits.
Fund accounting
The School has various types of funds for which it is responsible and which require separate disclosure. These are
as follows:
Unrestricted funds Funds which are expendable at the discretion of the Governors in furtherance of the
objects of the School. In addition to expenditure on the School’s operations, such
funds may be held in order to finance capital investment and working capital.
Restricted funds Donations or legacies received which are earmarked by the donor for specific
purposes. Such purposes are within the overall aims of the School.
Endowment funds Funds given to the School where the income may be used in furtherance of the
objects, but the capital must be retained.
Designated funds The School may at its discretion set aside funds for specific purposes which would
otherwise form part of the general reserves of the School.
Financial instruments
The School has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other
Financial Instruments Issues’ of FRS 102 in full to all its financial instruments.
Trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at
their settlement value. Bank loans and other loans are initially recognised at their transaction value and
subsequently measured at amortised cost using the effective interest rate method. Interest expense is recognised
on the basis of the effective interest method and is included in interest payable and other similar charges.
Investments are initially measured at transaction price and subsequently measured at fair value through net
income or expenditure.
30
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d
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SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020 fee income 2020 2020 2019 2019 £’000 £’000 £’000 £’000 fees 19,695 21,998 956 1,022 and Exhibitions 1,610 1,906 supplementary grants 2,154 2,354 4,720 5,282 funded by: Education Fund (restricted) (4) (7) Appeal Fund (restricted) (2) (3) Robertson Trust (restricted) (218) (220) Scholarship and Prize Funds (restricted) (11) (12) Sedbergh School Foundation (restricted) (177) (150) Casterton School Scholarship Fund (restricted) (2) (2) (414) (394) 4,306 «4,888 15,389 17,110 income from charitable activities 2020 2019 £’000 £’000 educational income 33 38 1 - lieu of notice 118 54 interest on late fees 17 12 169 104
2 School fee income
Gross fees
Bursaries Scholarships and Exhibitions Gross supplementary grants
Less: funded by:
Net fees
3 Other income from charitable activities
Other educational income Bookroom Sundry Fees in lieu of notice Surcharge interest on late fees
Other educational income is generated by the School only and is credited to unrestricted funds.
32
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SEDBERGH SCHOOL
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NOTES TO THE ACCOUNTS (continued) 31 August 2020
3 Other income from charitable activities (continued)
2020 2019 £’000 £’000 118 139 6 9 - 2 - 5 124 155 2020 2019 £’000 £’000 32 989 232 267 19 103 347 456 630 1,815 2020 2019 £’000 £’000 20 9 33 37 53 46
Other ancillary income Rent Commissions Queens Hall Insurance
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Other ancillary income is generated by the School only and is credited to unrestricted funds.
4 Trading income
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Short courses School uniform Facilities and lettings Royalty and service fee income
5 Investment income
Bank interest received Dividends received from fixed asset investments
2020 £19,000 (2019: £22,000) of investment income was credited directly to restricted funds.
33
SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2020 6 Income from donations, legacies and grants 2020 2019 £’000 £’000 Donations (unrestricted) 2 12 Donations (restricted) 74 116 Income from Sedbergh School Foundation (restricted) 177 150 Income from Robertson Trust (restricted) 218 220 Coronavirus Job Retention Scheme grant (unrestricted) 1,031 - 1,502 498 7 Expenditure 2020 2019 £’000 £’000 Charitable expenditure includes: Depreciation — owned assets 867 821 Depreciation — assets under finance leases 6 10 Operating lease cost 89 104 Other expenditure (exc VAT) includes: Auditor’s remuneration: Statutory audit of parent company and group accounts 26 26 Audit of subsidiaries where such services are provided by the group auditor 7 7 Total audit 33 33 Other services 15 1 48 34 Financing costs 2020 2019 £’000 £’000 Interest on bank loans and overdrafts 182 200 Finance lease interest cost - 1 182 201
34
SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020
7 Expenditure (continued)
Staff costs
Wages and salaries Social security costs Pension costs Redundancy costs
2020 2019 £’000 £’000 9,297 9,344 794 801 1,219 921 152 - ~—Ss«*11,066
11,462
The average number of staff employed by the School during the year:
2020 2019 No. No.
Full time Part time Full time Part time
Teaching staff 107 61 109 55 Premises and grounds staff 24 4 23 4 Administration and clerical staff 30 26 32 19 Catering, boarding house and medical staff 68 134 66 130 229 225 230 208
Neither the Governors nor persons connected with them received any remuneration or other benefits from the School or any connected organisation. Details of expenses paid to Governors are provided in note 19.
The number of employees whose emoluments, including benefits in kind, exceeded £60,000 was:
2020 2019 No. No. £60,001 - £70,000 - 1 £70,001 - £80,000 3 3 £90,000 - £100,000 1 - £100,001- £110,000 - 1 £120,000- £130,000 1 1 £190,000 - £200,000 1 - £200,001 - £210,000 - 1
£100,001- £110,000
£120,000- £130,000
£190,000 - £200,000
£200,001 - £210,000
Included in the above higher paid employees were 4 (2019: 5) accruing benefits under defined benefit schemes. Contributions in respect of these individuals totalled £67,543 (2019: £58,057).
Key management personnel
The School considered its key management personnel during the year to comprise the Principal, Chief Operating Officer and two headmasters, at the Senior School and the Prep School. The total employment benefits including employer pension contributions of the key management personnel were £0.65m (2019: £0.66m).
35
SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020
8 Analysis of expenditure
Staff costs Other Depreciation Total 2020 £’000 £’000 £’000 £’000 Charitable activities Teaching costs 6,323 372 - 6,695 Boarding houses, staff and medical 2,079 1,137 - 3,216 provision Premises costs 1,027 1,850 873 3,750 Management and administration 1,207 1,164 - 2,371 Grants, awards and prizes - 474 - 474 Publicity 375 337 - 712 11,011 5,334 873 17,218 Raising funds Trading 451 445 - 896 Interest on bank loans and - 182 - 182 overdrafts 451 627 - 1,078 11,462 5,961 873 18,296 Governance costs (included within management and administration costs) Governors’ meeting costs - 18 - 18 Audit and accountancy (exc VAT) - 48 - 48
36
SEDBERGH SCHOOL
NOTE THE ACCOUNTS (continued) 31 August 2020
8 Analysis of expenditure (continue
9
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Staff costs Other Depreciation Total 2019
£’000 £’000 £’000 £’000
Charitable activities
Teaching costs 5,907 590 - 6,497
Boarding houses, staff and medical
provision 1,974 1,426 - 3,400
Premises costs 1,067 2,302 831 4,200
Management and administration 1,060 951 - 2,011
Grants, awards and prizes - 458 - 458
Publicity 353 419 - 772
10,361 6,146 831 17,338
Raising funds
Trading 705 762 - 1,467
Share in net losses of associates - 201 - 201
Interest on bank loans and
overdrafts
705 963 - 1,668
11,066 7,109 831 19,006
Governance costs (included within
management and administration costs)
Governors’ meeting costs - 23 - 23
Audit and accountancy - 34 - 34
expenditure is charged to the unrestricted fund, with the exception of £0.44m £0.44m (2019: £0.45m) of grants,
and prizes and £37,000 (2019: £45,000) of management costs that are charged to the restricted
£6,000 (2019: £12,000) of management costs that are charged to endowed funds.
value gains and losses
2020 2019
£’000 £’000
Fair value gains and losses on financial assets:
Gain on fixed asset investments 158 11
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All expenditure is charged to the unrestricted fund, with the exception of £0.44m £0.44m (2019: £0.45m) of grants, awards and prizes and £37,000 (2019: £45,000) of management costs that are charged to the restricted fund and £6,000 (2019: £12,000) of management costs that are charged to endowed funds.
Fair value gains and losses
37
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SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2020
11 Investments
Consolidated At market value:
Balance at 1 Sept 2019 Additions Disposal proceeds Increase in market value Management fee
Balance at 31 August 2020
Total £’000 3,280 887 (886) 158 (18) 3,421
School At market value: Balance at 1 Sept 2019 Additions Disposals proceeds Increase in market value Management fee
Total £’000 2,679 718 (717) 129 (15)
Balance at 31 August 2020
2,794
Subsidiary undertakings The School controls 100% of Sedbergh School Developments Limited (company no. 03184583; with the same registered address as the School, detailed on page 19), which runs sporting and educational courses making use of the School’s facilities. Its trading results and summary balance sheet, extracted from its audited accounts for the year ended 31 August 2020 were:
Turnover Cost of sales
Gross profit/(loss) Administration costs Net profit
Trading income is credited to unrestricted funds.
Total assets
Total liabilities Total reserves
2020 2019 £’000 £’000 51 1,091 (140) (637) (89) 454 (234) (391) (323) 63 2020 2019 £’000 £’000 78 356 (324) (278) (246) 78
39
## SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020
11 Investments (continued)
The School also controls 100% of Sedbergh School International Limited (company no. 9814021; with the same registered address as the School, detailed on page 19) which was formed to facilitate opening of an overseas school. Its trading results and summary balance sheet, extracted from its audited accounts for the year ended 31 August 2020 were:
Turnover
Cost of sales
Gross profit Administration costs
Net profit
2020 2019 £’000 £’000 347 456 (42) (63) 305 393 (207) (209) 98 184
Trading income is credited to unrestricted funds.
Total assets
Total liabilities
Total reserves
2020 2019 £’000 £’000 201 233 (41) (50) 160 183
Associated Undertakings
Sedbergh School Developments Limited holds 36% of the shares of Sedbergh Hotel Enterprises Limited (company no. 10598631), set up to procure, refurbish and run The Black Bull in Sedbergh.
At 1 Sept 2019
Investment during the period Share of losses
At 31 August 2020
2020 2019 £’000 £’000 - - - - - - - -
Type of shares held Proportion Country of Registered Office held (%) —_ incorporation
Sedbergh Hotel Enterprises Limited
44 Main Street, A ordinary shares 36% UK Sedbergh, LA10 5BL
40
SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020
11 Investments (continued)
The audited results of Sedbergh Hotel Enterprises Limited for their year ended 30 June 2020 are as follows;
2020 2019* £’000 £’000 Aggregate amount of capital and reserves (1,132) (918)
Loss for the period
Loss for the period (214) (900) Updated for audited figures, previously unaudited figures were disclosed. Stocks Consolidated School 2020 2019 2020 2019 £’000 £’000 £’000 £’000 Consumables 218 287 211 280 Bookroom stationery 15 17 15 17 233 304 226 297 Debtors Consolidated School 2020 2019 2020 2019 £’000 £’000 £’000 £’000 Debtors for School fees and extras 560 1,378 560 1,087 Prepayments and accrued income 489 152 475 123 Other debtors 117 195 117 195 Amounts due from related undertakings 71 4 306 172 1,237 1,729 1,458 1,577
* Updated for audited figures, previously unaudited figures were disclosed.
12 Stocks
13 Debtors
Debtors for School fees and extras Prepayments and accrued income Other debtors Amounts due from related undertakings
41
SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020
14 Creditors: amounts falling due within one year
Consolidated School 2020 2019 2020 2019 £’000 £’000 £’000 £’000 Trade creditors 631 506 617 478 Accruals and deferred income 1,084 1,024 1,027 917 Parental deposits 700 1,076 700 1,076 Fees received in advance 3,053 3,907 3,053 3,907 Taxation and social security 243 221 199 221 Finance lease creditor 8 17 8 17 Other creditors 533 186 533 186 Bank loans - 343 - 343 2 7,280 6,137 7,145
funded when the pupil leaves the School.
ars’ fees in advance. Fees are apportioned over the t to specific conditions on the receipt of one term’s
lied as follows:
Within 1 year
Within 1 to 2 years
Within 2 to 3 years Greater than 3 years
Consolidated and School 2020 2019 £’000 £’000 2,189 2,963 449 447 281 314 134 183 3,053 3,907
The movements during the year were as follows:
As at 1 Sept 2019
New Contracts Amounts utilised in payment of fees to the School
As at 31 August 2020
Consolidated and School 2020 2019 £’000 £’000 3,907 3,250 2,161 2,974 (3,015) (2,317) 3,053 3,907
42
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SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued)
31 August 2020
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15 Creditors: amounts falling due after one year
Consolidated and School 2020 2019 £’000 £’000 nk loans 7,098 6,099 nance lease creditor 8 16 7,106 6,115
k loans
ing 2020 a new £1m loan facility was arranged under the Coronavirus Business Interruption Loan Scheme ILS) at an interest rate of 2.44% above base. The loan is repayable by way of 20 quarterly instalments of 05m starting in Sept 2021. ing 2018 a £6.5m loan facility was arranged at an interest rate of 2.25% plus Libor, which will be repaid by of 15 quarterly instalments of £86,000 with a final repayment after 5 years. A capital repayment holiday has n agreed for twelve months.
bank loans fall due as follows:
Amounts falling due within 1 year (note 14) Amounts falling due within 1 to 2 years Amounts falling due within 2 to 5 years
Consolidated and School Bank Loans 2020 2019 £’000 £’000 - 343 344 344 6,754 5,755 7,098 6,442
The bank loans, with an outstanding balance at 31 August 2020 of £7.10m (2019: £6.44m), are secured by way of legal charges over certain properties and a fixed and floating debenture over the School’s assets. The finance lease creditors of £16,000 (2019: £33,000) are secured against the assets to which they relate.
43
SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020
16 Analysis of changes in net debt
Cash at bank and in hand
Sub-total
Loans falling due within one year
Loans falling due after more than one year Finance lease obligations
Net funds/(debt)
At 1 September Cash flows At 31 August 2019 2020 £’000 £’000 £’000 3,601 290 3,891 3,601 290 3,891 (343) 343 - (6,099) (999) (7,098) (33) 17 (16) (2,874) (349) (3,223)
17 Allocation of the charity net assets The net assets are held for the various funds as follows:
As at 31 August 2020 Fixed assets Net current Long term assets/ (liabilities) liabilities Total Consolidated £’000 £’000 £’000 £’000 Endowment (18a) 1,376 385 - 1,761 Restricted (18b) 1,032 53 - 1,085 Unrestricted funds (18c) 23,317 (1,329) (7,106) 14,882 25,725 (891) (7,106) 17,728 School Endowment (18a) 1,376 385 - 1,761 Restricted (18b) 405 53 - 458 Unrestricted funds (18c) 23,317 (1,243) (7,106) 14,968 25,098 (805) (7,106) 17,187
44
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SEDBER CHOOL
NOTES TO THE AC NTS (continued)
31 Au 2020
17 Allocation of the charity net assets (continue
As at 31 August 2019 Fixed Net current Long term
assets assets/(liabilities) liabilities Total
Consolidated £’000 £’000 £’000 £’000
Endowment (18a) 1,320 384 - 1,704
Restricted (18b) 983 53 - 1,036
Unrestricted funds (18c) 3,440 (2,083) (6,115) 15,242
5,743 (1,646) (6,115) 17,982
School
Endowment (18a) 1,320 384 - 1,704
Restricted (18b) 382 53 - 435
Unrestricted funds (18c) 23,440 (2,369) (6,115) 14,956
25,142 (1,932) (6,115) 17,095
18a Endowment funds
Balance at Revaluation Balance at 31 Aug
1 Sept 2019 Income Expenditure gains/(losses) 2020
Consolidated and School £’000 £’000 £’000 £’000 £’000
Collingwood and Baynes 452 - 3 455
Foundation
Scholarship and Prize Fund 1,069 - (5) 51 1,115
Casterton School Scholarship 183 - (1) 9 191
Fund
1,704 - (6) 63 1,761
Balance at Revaluation Balance at 31 Aug
1 Aug 2018 Income Expenditure gains/(losses) 2019
Consolidated and School £’000 £’000 £’000 £’000 £’000
Collingwood and Baynes 452 - - - 452
Foundation
Scholarship and Prize Fund 1,075 - (10) 4 1,069
Casterton School Scholarship 184 - (2) 1 183
Fund
1,711 - (12) 5 1,704
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The Collingwood & Baynes Foundation and the Scholarship and Prize Funds form part of the School’s permanent endowment and were set up to provide scholarships and prizes to pupils attending the School.
Casterton School Scholarship Fund relates to funds transferred on the merger of Casterton and Sedbergh School. Charity Commission approval was obtained for these to be transferred from Casterton School to Sedbergh School.
45
SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020
18b Restricted funds
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Balance at Revaluation Balance at
1 Sept 2019 Income Expenditure gains/(losses) 31 Aug 2020
£’000 £’000 £’000 £’000 £’000
General Funds 291 468 (450) - 309
Rosalie Mary Forster Bursary
Fund 86 1 (1) 5 91
Casterton School Scholarship
Fund 5 - - - 5
Casterton Old Girls Association 53 - - - 53
Scholarship and Prize Fund . 11 (11) . .
Casterton School Scholarship
Fund - 2 (2) - -
School Funds 435 482 (464) 5 458
Education Fund 366 4 (6) 18 382
Appeal Fund 235 2 (3) 11 245
Consolidated Funds 1,036 488 (473) 34 1,085
Balance at Revaluation Balance at
1 Aug 2018 Income Expenditure gains/(losses) 31 Aug 2019
£’000 £’000 £’000 £’000 £’000
General Funds 275 483 (467) - 291
Rosalie Mary Forster Bursary
Fund 86 1 (1) - 86
Casterton School Scholarship
Fund 5 - - - 5
Casterton Old Girls Association 53 - - - 53
Scholarship and Prize Fund _ 12 (12) . _
Casterton School Scholarship
Fund - 2 (2) - -
School Funds 419 498 (482) - 435
Education Fund 369 7 (10) - 366
Appeal Fund 236 3 (5) 1 235
Consolidated Funds 1,024 508 (497) 1 1,036
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The Education Fund was set up to provide funds to assist the sons of Old Sedberghians (“OSs”) killed in the wars. It has since been widened to support primarily children of OSs without the means to attend Sedbergh, or indeed other pupils who are in need of financial support to attend the School.
The Appeal Fund was set up by the Governors in 1996 to fund various projects, including the raising of funds for Scholarships and Bursaries to pupils attending the School.
Casterton School restricted funds, including the Rosalie Mary Forster Bursary Fund, Casterton School Scholarship Fund and Casterton Old Girls Association, relate to funds transferred on the merger of Casterton and Sedbergh School. Charity Commission approval was obtained for these to be transferred from Casterton School to Sedbergh School. The Rosalie Mary Forster Bursary Fund remains a linked charity.
46
SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2020 Unrestricted funds Balance at Income Expenditure — Transfers Revaluation Other Balance at 1 Sept 2019 gains/(losses) _ gains/(losses) 31 Aug 2020 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Revaluation 3,866 - - - - - 3,866 Reserve Pension Reserve - - 2 12 - (14) - General Funds 10,608 17,003 (17,041) (6) 36 - 10,600 Bursary Fund — 477 5 (3) (5) 24 - 498 designated Local Young 25 3 (5) - 1 - 24 People’s Fund Collingwood and (20) 1 - (1) - - (20) Baynes Foundation School Funds 14,956 17,012 (17,047) - 61 (14) 14,968 Trading Company 286 398 (770) - - - (86) Consolidated Funds 15,242 17,410 (17,817) - 61 (14) 14,882 Balance at Income Expenditure — Transfers Revaluation Other Balance at 1 Aug 2018 gains/(losses) _ gains/(losses) 31 Aug 2019 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Revaluation 3,866 - - - - - 3,866 Reserve Pension Reserve 55 2 - 48 - (105) - General Funds 10,125 17,820 (17,296) (43) 2 - 10,608 Bursary Fund — 480 5 (4) (5) 1 - 477 designated Local Young 26 3 (6) - 2 - 25 People’s Fund Collingwood and (20) - - - - - (20) Baynes Foundation School Funds 14,532 17,830 (17,306) - 5 (105) 14,956 Trading Company 83 1,548 (1,345) - - - 286 Consolidated Funds 14,615 19,378 (18,651) - 5 (105) 15,242 The Bursary Fund — designated, represents funds for Bursaries to pupils attending the School, not falling into the other funds.
18c Unrestricted funds
Local Young Peoples’ Fund is a fund to provide grants to local children pursuing educational goals.
47
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SEDBERGH SCHOOL
S TO THE ACCOUNTS (continued)
31 August 2020
ren attending the School during the year:
Number of children
at the School
1
2
Total expenses of £4,800 (2019: £11,000) were paid to 9 (2019: 9) Governors. These were in respect of travel and
subsistence.
b) Transactions with subsidiaries and associate
Transactions with Sedbergh School Developments Limited (a 100% owned trading subsidiary of Sedbergh School)
included expenditure of £0.1m (2019: £0.25m). As at 31 August 2020, Sedbergh School Developments Limited
owed Sedbergh School £0.08m (2019: £0.15m). Amounts gift aided to Sedbergh School amounted to £nil (2019:
£0.15m).
In addition during the year, Sedbergh School Developments Limited was in receipt of a loan from the School
amounting to £0.3m of which £0.15m was drawn down as at 31 August 2020. Interest is charged on the loan at a
rate of 3% and it is repayable within 5 years.
Transactions with Sedbergh School International Limited (a 100% owned trading subsidiary of Sedbergh School)
(2019: £0.17m). As at 31 August 2020, Sedbergh School International Limited
(2019: £0.02m). Amounts gift aided to Sedbergh School amounted to £0.12m
Enterprises Limited (an associate undertaking of Sedbergh School Developments
£0.004m (2019: £nil). As at 31 August 2020 fnil (2019: £nil) was due between
to promote or improve the education given at Sedbergh School, or the facilities
f, or the well-being of the pupils educated there, in relation to their education
her place of education, after leaving the School.
dation as at 31 August 2020 was £0.075m (2019: £0.002m). Grants
019: £0.29m).
undation for the rental of Guldrey Lodge, at a current rate of £52,000
f Financial Activities during the year. The rent is reviewed annually
eement.
is a trustee of the Michael Robertson Scholarship Fund (“MRSF”), a
jective of the Fund is to further the education of children attending
in its latest published accounts as at 31 December 2019. These are
totalling £0.22m (2019: £0.22m) which have been included within
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financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional
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which £0.85m (2019: £0.66m) related
s accrued in respect of contributions
scheme for its non-teaching staff.
ployee’s salary. Contributions by the
anding with the scheme was £35,000
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SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020
20 Pension schemes (continued)
Sedbergh School Pension Fund The School also operates a defined benefit scheme in the UK for certain non-teaching staff. The last full actuarial valuation was carried out as at 31 August 2018. The initial results of that valuation have been projected to 31 August 2020 by a qualified independent actuary. The major assumptions used by the actuary were:
2020 2019 % % Rate of increase of pensions in payment 0.00 0.00 Discount rate 1.65 1.80 Inflation assumption RPI 3.05 3.25 Inflation assumption CPI 2.05 2.25
The mortality assumptions adopted at 31 August 2020, imply the following life expectancies:
2020 2019
Male retiring at age 65 at year end 88.1 88.0 Female retiring at age 65 at year end 89.6 89.5 Male retiring at age 65 in 20 years 89.8 89.7 Female retiring at age 65 in 20 years 90.8 90.8
Analysis of amount debited/(credited) to the Statement of Financial Activities:
Service cost Net interest (credit)/expense Remeasurements of the net asset Return of fund assets (excluding amount included in net interest) Actuarial losses/(gains) Surplus on scheme not recognised Total defined benefit cost/ (credit)
2020 2019 £’000 £’000 (2) (2) (2) (2)
(11) (58) 9 57 16 106 14 105
12 103
Cumulative actuarial losses amounted to fnil at 31 August 2020 (2019: £nil).
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SEDBERGH SCHOOL
NOTES TO THE ACCOUNTS (continued) 31 August 2020
20 Pension schemes (continued) Changes in the fair value of plan assets and changes in present value of defined benefit obligation: 2020 2020 2020 Assets _ Liabilities Total £’000 £’000 £’000 Fair value of scheme assets/present value of (liabilities) at beginning of period 461 (355) 106 Contributions by employer 12 - 12 Benefits paid (8) 8 - Interest income/(cost) 8 (6) 2 Return on scheme assets (excluding amount included in net interest expense) 11 - 11 Actuarial (losses)/gains - (9) (9) Fair value of scheme assets/present value of (liabilities) at end of period 484 (362) 122 Surplus on scheme not recognised (122) - (122) 362 (362) - Changes in the fair value of plan assets and changes in present value of defined benefit obligation: 2019 2019 2019 Assets _Liabilities Total £’000 £’000 £’000 Fair value of scheme assets/present value of (liabilities) at beginning of period 345 (290) 55 Contributions by employer 48 - 48 Interest income/(cost) 10 (8) 2 Return on scheme assets (excluding amount included in net interest expense) 58 - 58 Actuarial (losses)/gains - (57) (57) Fair value of scheme assets/present value of (liabilities) at end of 461 (355) 106 period Surplus on scheme not recognised (106) - (106) ~~355~~ The return on plan assets was: 2020 2019 £’000 £’000 Interest income 8 10 Return on plan assets (excluding amount included in net interest expense) 11 58 Total return on plan assets 19 68
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SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2020
20 Pension schemes (continued) The fair values of assets of the scheme were:
Corporates Gilts Current liability Cash
Total market value of assets
2020 2019 £’000 £’000 63 68 325 393 (1) - 97 - 484 461
The Fund has no investments in the School or in property occupied by the School.
Contributions of £nil are expected for the year to 31 August 2021.
21 Capital commitments At 31 August 2020 the School had capital commitments of £24,000 (2019: fnil). 22 Commitments under operating leases The total future minimum lease payments under non-cancellable operating leases are as follows:
Amounts due: Within one year Between one and five years
2020 2019 £’000 £’000 97 95 183 192 280 287
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