2020-08-31-accounts

Company registration number: 04270330 Charity registration number: 1090757

Parayhouse School

(A company limited by guarantee) Annual Report and Financial Statements

for the Year Ended 31 August 2020

Alpha Accountants (London) Limited 585A Fulham Road Fulham London SW6 5UA

Parayhouse School

Contents

Contents
Reference and Administrative Details	1
Introductory Overview	2
Chair of Trustee Governors’ Statement	3
Message from the Co-Headteachers	4
Trustee Governors’ Report	5 to 15
Statement of Trustee Governors Responsibilities	16
Independent Auditors' Report	17 to 19
Statement of Financial Activities	20
Balance Sheet	22
Statement of Cash Flows	23
Notes to the Financial Statements	24 to 38

Parayhouse School

Reference and Administrative Details

Chair of Trustee Governors	Mr John William Wraith
Vice Chair of Trustee Governors	Ms Daniela Schwartz
Board of Trustee Governors	Full list provided on page 13 of this report
Co-Headteachers	Ms Verity Carnevale
	Ms Holly Bristow
Company Registration Number	04270330
Charity Registration Number	1090757
Registered Office	Hammersmith and Fulham College
	Gliddon Road
	London
	W14 9BL
Auditor	Alpha Accountants (London) Limited
	585A Fulham Road
	Fulham
	London
	SW6 5UA
Bankers	HSBC Bank UK plc
	315 Fulham Road
	Chelsea
	London SE10 9QJ
Solicitors	Veale Wasbrough Vizards LLP
	86 Feather Lane
	London
	EC4A 1AD

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Parayhouse School

Introductory Overview

Parayhouse school is a non-maintained special school for students with significant speech, language and communication needs, moderate/severe learning difficulties and associated social, emotional, behavioural and medical difficulties. The school caters for students from 7-16 years of age.

Parayhouse school is committed to ensuring that each and every student reaches his or her full potential. The school delivers its mission in three essential ways:

• (1) It provides a safe and nurturing environment where students feel secure and are confident and eager to learn;

• (2) It creates a highly specialised and individualised curriculum, with speech and language at its heart, empowering students to learn; and

• (3) It establishes close working relationships between parents, carers, students and staff to support learning and behaviour at home as well as at school.

The school is governed by a registered charity, which takes the school’s name, and is run by a Board of Trustee Governors. Senior leadership of the school and its staff are ultimately accountable to this Board and work closely together to actively manage the risks the school faces and help to deliver the co-Headteachers’ vision and development of the school.

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Parayhouse School

Chair of Trustee Governors’ Statement

“We place the education and prospects of our students front and centre in all that we do. We are fully committed to their wellbeing and that of every member of staff.

“The experiences of 2020 give us full confidence we can rise to any challenge, thanks to the resilience and commitment of all our stakeholders.”

Johnnie Wraith

In my introductory statement to last year’s Parayhouse School Trustees Governors Report, I stated that the school was ‘well equipped to cope with its current circumstances, (and) well insulated against future challenges’. While I had full confidence that was the case, there was no way anyone could have anticipated the extent to which that ability to cope with future challenges would soon be tested. 2020 has of course been completely dominated by the Covid-19 pandemic, and the way in which the co-Heads, Senior Leadership Team, and all members of staff have steered the school through the crisis has been absolutely remarkable.

The online and remote learning provision that was such a significant and sudden challenge for so many schools was made even more difficult for Parayhouse School due to the varied and complex needs of its students, but a combination of dedication to the students and complete commitment and hard work from the staff ensured the best possible outcome for all students throughout the second half of the last school year.

The physical return to school in September was no less challenging, due to the need to provide a completely safe and secure environment for students and staff alike, and entailed a great deal of careful preparation over the summer. Although the whole team needed and richly deserved a rest after the challenges of the first half of the year, they rose to the occasion so diligently that all students were able to return safely at the start of the new school year and their education has been able to continue seamlessly thanks to the thoroughness with which protective measures were put in place.

With optimism now growing that the effects of the pandemic will gradually start to ease over the coming months, we are hopeful that the whole Parayhouse School family will be able to enjoy a return to normality soon, and fully benefit from the bonding experience of recent months. We are optimistic that parents will be able to return to the school in good time to enjoy and share with the staff and students the assemblies, sports days, performances, and other events that are at the heart of our school’s life in normal times.

The school continues to be in a healthy financial situation, and its Board of Trustee Governors remains fully committed to overseeing and protecting both the financial health of the school and every aspect of its mandated responsibilities. It is with confidence that, on behalf of the Board, I can restate this year that Parayhouse School remains well equipped to maximise the students’ educational experience, to ensure the wellbeing of students and staff alike, and to cope with whatever challenges may lie ahead. We approach the future with optimism and a determination to work constantly to make our school the very best educational establishment it has the potential to be.

Johnnie Wraith

Chair of Trustee Governors

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Parayhouse School

Message from the Co-Headteachers

Verity Carnevale & Holly Bristow

As with all educational settings the academic year 2019-20 has been a challenging and unusual time for our school due to the widespread effects of COVID-19. Despite the unprecedented hurdles that we have faced as a school community, we are immensely proud of the strength, resilience and positivity of our staff and students alike.

At the end of March 2020, the school temporarily closed in order to review its health and safety measures and to evaluate our ability to provide a secure environment for all. During that time we continued to offer education and welfare support to families, and ensured that students were able to receive Free School Meals vouchers and had regular contact with their teachers. This was not without its challenges due to the wide range of complex learning needs of our students and we are grateful to our staff for their persistence in offering tailored support despite the circumstances.

Once risk assessments had been created, PPE ordered and relevant procedures put in place, including a robust cleaning schedule, we were delighted to be able to re-open in early June for students with key worker parents and those on Child Protection plans. Later that month we were able to extend this to a 2 days a week provision for all students (split into two groups). Despite restrictions, we were also pleased to be able to host an outside, socially distanced celebration for our school leavers and their families. As well as saying goodbye to students, we were also faced with finding new ways to prepare to welcome 12 new students in the new school year from September 2020, and staff worked hard to find flexible solutions to support families at this time.

Although the pandemic has undoubtedly impacted the progress of a number of our school’s intended activities for this academic year, we have been able to make headway in key areas such as the development of our new Creative Hub. This additional space on the same site as the existing school is an exciting opportunity to provide the students with a light, spacious area in which to undertake art and music lessons and also offers much needed additional outside space. In turn this has freed up space within the main school building for a dedicated area for Occupational Therapy and a larger area for staff PPA, which reduces crowding the classrooms.

In response to the new challenges we have faced, the school has expedited its planned ICT improvements and has been able to ensure all staff are provided with updated equipment, whilst also developing online learning resources for the students. This is something that we will continue to develop over a budgeted 3 year period to raise the quality and effectiveness of the school’s ICT systems, functionality and curriculum.

Over the next year we will also be developing the school’s Mental Health strategy and updating our assessment processes. We aim to also work on further strengthening our relationships with local authorities to ensure that we work as effectively as possible together to maximise the service we provide to students and their families.

We approach this coming academic year with determination to continue tackling and overcoming any challenges presented by the on-going pandemic whilst, as ever, continuing to ensure the best possible outcomes for every child.

Verity Carnevale & Holly Bristow,

Co-Headteachers.

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Parayhouse School

Trustee Governors’ Report

The Trustee Governors (who are also directors of the charity for the purposes of the Companies Act 2006) present their report and accounts for the year ended 31 August 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).

Objectives and activities

Charitable Objects

The object for which the charity is established is to advance education by carrying on in Great Britain a school or schools for the public benefit at which infants, children and students may obtain education and instruction in academic, sporting, musical, cultural, scientific, technical, religious, vocational, social and commercial subjects, activities and crafts of every description. The charity provides a specialist education for students with speech, language and communication needs, moderate and severe learning difficulties and behavioural, emotional & social difficulties.

Aims of the charity

The school's primary aim is to provide a first class education through high quality tuition and by developing sporting, artistic and social/ life skills in all its students. The school intends to provide an environment where each student can develop and fulfil his or her potential, to help build self-confidence, independence and social awareness.

The school focuses its work on preparing students with special needs for the challenges they will meet when leaving school. The school recognises that it is the development of social, language and thinking skills that enable students to express themselves, to understand and to function optimally in the world.

We also believe in the power of collaborative practice. Together, we face challenges, celebrate achievement and aspire to do our very best.

We deliver our mission in three essential ways:

• (1) We provide a safe and nurturing environment where students feel secure and are confident and eager to learn;

• (2) We create a highly specialised and individualised curriculum, with speech and language at its heart, empowering students to learn; and

• (3) We establish close working relationships between parents, carers, students and staff to support learning and behaviour.

Strategies for achieving aims and objectives

• (1) We continue to develop our current premises, which this year has included the setting up of a Creative Hub for art and music therapy in additional premises leased from the College. Our aim is to provide a safe, secure and nurturing learning environment for students and a welcoming and comfortable working environment for staff;

• (2) We continue to develop our leadership structure, with a key focus on proving support to the coHeadteachers from Trustee Governors and our experienced external advisor, to ensure the efficient and effective management of the school. In addition, we are focused on developing leadership opportunities further down the school, to help manage succession planning and to offer staff a route to professional development;

• (3) We continue to develop personalised learning and assessment as a key strategy to maximise the learning opportunities and growth of all students;

• (4) We look to increase the impact of speech and language therapy across the school, with a view to achieving high standards in students’ communication skills; and

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• (5) We aim to build upon the current high level of Trustee Governor and parent/ carer involvement, to ensure that the co-Headteachers and staff are effectively challenged, and that parents remain key to school development.

Compliance with Charity Commission guidance

The Trustee Governors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Staff involvement

One of the keys to the school’s success is the aim to foster an engaged and highly motivated staff. By consulting staff, including more regular use of staff surveys, we endeavour to get feedback on a regular basis, not only in ways we can improve the learning experience for our students, but also to improve the well-being of staff. The senior leadership team aims to be pro-active in making sure staff are kept informed of the school’s progress. We seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the school’s performance.

Employment of disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the charity continues and that the appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other staff.

Grant making policies

The school does not currently have a grant making policy.

Use of volunteers

A number of parents and carers of children attending the school volunteer to provide support for many fundraising activities during the year including raffles, quiz nights and sponsored events for the school. The Trustee Governors would like to take this opportunity to say how much we appreciate their continuing and valuable support for our work.

A regular number of students from within higher education are offered unpaid, temporary work experience placements.

Fundraising

Historically, aside from a short, intensive fundraising project in January 2017 to fit out a sensory room, the school has not had an organised fundraising function. However, over the past year we have taken external advice from a number of experts and have outlined a broad fundraising strategy, split between short- and long-term objectives. While the latter will take some time to flesh out and plan for, we have started on a number of short-term fundraising efforts. At this stage these are focused on applying for various grants to match-fund specific projects and activities.

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Trustee Governors’ Report

Achievements and performance

Main Achievements

• ➢ Safe negotiation through the pandemic and the continued provision of tailored home learning and family support during lockdown;

• ➢ Student numbers remained strong at 51 secured placements; ➢ New School Business Manager was established successfully in her role and the creation of a Senior Leadership Assistant has provided vital administrative support in key areas;

• ➢ The Creative Hub was secured to add much needed space for music and art lessons. It also provides additional meeting room and outdoor space;

• ➢ Parent engagement and administrative productivity have been improved with the introduction of school communication app “Ping”;

• ➢ Introduction of Google Suites to support students with home learning and improve communication to parents; and

• ➢ ICT infrastructure upgraded to improve functionality to support future developments in hardware and software.

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Trustee Governors’ Report

Financial Review

Review of financial position

The charity generated another significant year-on-year increase in operating surplus £403,810 (2019: £239,741), due in large part to lower operating costs (£133,571 lower YoY), which were impacted by the Covid-19 pandemic (principally lower staff costs and the cancellation of the annual residential trip). This operating surplus bolstered net assets of the charity to £1,266,059 (2019: £862,249), which is split between unrestricted reserves of £1,099,770 (2019: £728,426) and restricted reserves of £166,289 (2019: £133,823).

This total of unrestricted reserves, held as cash/ savings across a number of bank and building society accounts, is now in excess of the minimum reserves policy set by Trustee Governors (see below), but provides a solid buffer against any unforeseen expenditure requirements. Also, these liquid assets are more than sufficient to cover the charity’s current liabilities £49,766 (2019: £76,957)

Restricted reserves increased by £32,466 (2019: £34,540) with the school not having fully spent its PE grant in the year (although this would be expected to be spent during the next financial year).

Another way of thinking about total net assets of £1,266,059 (2019: £862,249) is to consider the charity’s balance sheet, and specifically the difference between its Total assets of £1,317,869, split between:-

• Tangible assets of £130,338 (2019: £140,804) [incl. leasehold improvements of £98,842 (2019: £114,565)]; plus

• Cash balances of £1,156,084 (2019: £799,439) [retained annual net surpluses]; plus

• Stock of uniforms totalling £2,473 (2019: £3,660); plus

• Debtors totalling £28,974 (£3,363);

• Resulting in total assets of £1,317,869 (2019: £947,266)

And its Total liabilities of just £51,810 (2019: £85,017): -

• Creditors: amounts falling due within one year of £49,766 (2019: £76,957); plus

• Creditors: amounts falling due after more than one year of £2,044 (2019: £8,060).

Income generation

During the year under review income totalled £1,717,456 (2019: £1,686,956), representing a small increase on the previous year (1.8% YoY), but was +10.1% above the year’s budget, with higher student fees and EFA DFC grant than was anticipated. Total income is mainly in the form of unrestricted funding of student fees from placing local authorities £972,335 (2019: 1,122,168) and unrestricted funding of EFA student grants and donations £649,559 (2019: £499,391), with the YoY increase due staff pension and salary grants. The remaining unrestricted fund income generated relates to investment income £2,999 (2019: £2,646) and other income £37,603 (2019: £27,892).

Additionally, restricted funds donations and legacies were received totalling £54,960 (£34,859).

Resources expended

The total cost of operation of the school amounted to £1,313,646 (2019: £1,447,215), representing a 9.2% drop on the prior year and 11.2% below budget. This was driven mainly by lower staff costs £995,871 (2019: £1,068,161) [£72,290 lower YoY], with the reduction mainly accruing during the Covid-19 shutdown of the school in April and May. The pandemic also put pay to the school’s annual residential trip, which typically costs around £12,000. Staff costs continue to account for the large bulk of overall costs ~ 75% (2019: ~75%), with the next largest cost items being premises costs £63,056 (2019: £60,000) representing ~ 4.5% (2019: ~ 4.5%) of the total costs. Additionally, a further reduction of the book value of capital equipment due to depreciation £36,642 (2019: £32,789) representing ~ 2.5% of total costs (2019: ~2.5%) and staff courses £33,814 (2019: £36,339) representing ~ 2.5% (2019: ~ 2.5%) of total costs and then a further immaterial reduction to a host of smaller line items.

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Trustee Governors’ Report

Historical 10 year view

£	FY 10-11	FY 11-12	FY 12-13	FY 13-14	FY 14-15	FY 15-16	FY 16-17	FY 17-18	FY 18-19	FY 19-20
Net income	25,001	13,223	59,054	32,667	56,979	129,028	101,640	121,755	239,741	403,810
Fund balances	108,161	121,384	180,439	213,106	270,085	399,113	500,752	622,508	862,249	1,226,059
Restricted	0	0	0	62,839	26,634	81,837	97,569	99,283	133,823	166,289
Unrestricted	108,161	121,384	180,439	150,267	243,451	317,276	403,183	523,225	728,426	1,099,770
Av # students	46	46	46	48	42	48	45	47	56	51
Av # staff	25	27	28	35	32	31	31	33	36	35

Reserves policy

The school needs unrestricted reserves to:

• (1) Meet any contractual liabilities should the school be required to close;

• (2) Meet any unexpected costs such as premises moves, breakdown of machinery or staff cover;

• (3) Replace equipment as it wears out; and

• (4) Ensure the school can maintain a high quality of service.

The charity aims to maintain total unrestricted reserves at a level equivalent to at least six months operating costs based on current annual expenditure whilst also considering the possible need for redundancy costs. The Trustee Governors regularly review the level of unrestricted reserves, and as of 31st August 2020 have determined that based upon expected 2020-21 budgeted levels of expenditure, the amount of unrestricted reserves required is £725,000. Current unrestricted reserves are £1,099,770 (2019: £728,426) and so comfortably exceed this minimum requirement. As this balance of unrestricted reserves is expected to continue to rise, albeit at a slower rate, the Trustee Governors will analyse and debate the potential to ring-fence some of the total for specific reserves to cover expected multi-year expenditure on ICT and on premises (both current and potentially alternative premises in future).

Investment policy

The Trustee Governors have overall responsibility for the investment of the charity’s cash balances and other unrestricted reserves. In turn, this responsibility is delegated to its Finance, Leadership & Management (FLM) sub-committee to monitor on an on-going basis. This sub-committee reports to the Board of Trustee Governors on a periodic basis, including a summary of the various investments, their performance and risks.

The FLM sub-committee’s primary investment objectives are:

• (1) To ensure adequate cash balances are available in an approved bank account to cover day-to-day working capital requirements of the school’s operations, without the account becoming overdrawn; and

• (2) To protect the real long-term capital value of the unrestricted reserves, minimising risks and optimising returns, with due consideration taken of the flexibility and term of investments.

The committee analyses and monitors the various market risks associated with these investments on an on-going basis, with working cash balances and other unrestricted reserves distributed across potentially three main investment types, depending on the total balances at-hand:-

• (1) Bank current/ business accounts;

• (2) Savings accounts and other similar savings vehicles; and

• (3) Investment funds.

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Historically, given the limited unrestricted reserves available and the low risk appetite, the majority has been placed in (1) and (2) above. As/ when these unrestricted reserves grow in value, the FLM sub-committee would expect to explore options within (3) above, albeit with a focus on capital preservation and low risk diversification. At this time external professional advice would be sought as a key input to any decision.

Towards the end of the financial year, the FLM sub-committee analysed the potential to manage its separate bank savings deposits through a savings platform, Flagstone Investment Management, a company endorsed by CAF and used widely by charities. This FCA-regulated entity provides a one-stop shop in terms of setting up and managing cash balances, providing access to a wide range of bank accounts and significantly reducing the administrative burden of previously setting up individual bank and building society savings deposit accounts. Having carried out due diligence, including a meeting with the company to go through our IT and data protection concerns, and proposing that no individual account balance would exceed the FSCS £85,000 insured level, the proposal was ratified by the Board of Trustee Governors in the early part of the FY20-21, with a large part of the excess unrestricted reserves transferred and managed off this platform.

Going concern

After making appropriate enquires, the Trustee Governors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting polices.

Principal funding

The principal funding is from local authorities, with top-up school fees in some instances from parents, plus grants from the central Education and Skills Funding Agency (ESFA).

The Statement of Financial Activities for the year is set out on page 20 of the financial statements. A summary of the financial results and the work by the charity is set out below.

How principal sources of funding support the key objectives of the charity

• Fees from local authorities along with fees charged to parents facilitate the day-to-day running of the school, providing resources to cover staff salaries, teaching resources (incl. books, stationery supplies, computers) and other operating overheads.

• Grants received from the ESFA provide a top-up to fees received from placing local authorities and help subsidise student fees and enable disadvantaged students with parents who would not otherwise be able to afford the school's fees to benefit from the high-quality education provided.

• The Devolved Formula Capital grant enables the purchase of classroom and IT equipment to further learning.

• The Capital Maintenance grant ensures premises is fit for purpose and remains in good repair, and enables improvements for the benefit of the pupils, such as the construction of the all-weather playing surface.

• The Sports and PE grant facilitates the purchase of sports equipment, training and attendance at sporting events to develop the sporting skills of the pupils.

• The Department of Education has set up a Covid-19 grant of £12,000, which will be distributed to the school in the FY20-21.

Material Investments policy

Under the Memorandum and Articles of Association, the charity has the power to make any investment that the Trustee Governors see fit. The Trustee Governors have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

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Trustee Governors’ Report

Risk Review

Risk management

The Trustee Governors are ultimately responsible for the management of the risks faced by the school. This involves identifying the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurrence (based on an in-house scoring model), and identifying means of mitigating risks. A record of these is kept in a risk register, which is formally reviewed at each main Board of Trustee Governor meeting, and by the three separate sub-committees of the main Board on a periodic basis. In addition, a comprehensive list of school policies is regularly reviewed and updated for best practice, including input from an independent, third party HR firm.

As of the balance sheet date, the key risks identified by the Trustee Governors can be split across three main categories as follows:

• (1) Strategic and reputational risks , including, but not limited to:-

• (a) A major safeguarding or health and safety incident;

• (b) Worsening of the Covid-19 outbreak or a new pandemic;

• (c) Competition risk arising from new or re-purposed schools in the area;

• (d) Loss of Chair of Trustee Governors and inability to promote or recruit a replacement;

• (e) A breach of staff code of conduct; and

• (f) A poor Ofsted inspection;

• (2) Operational risks , including, but not limited to:-

• (a) A permanent loss of premises;

• (b) A temporary loss of premises due to fire, flood or other emergency;

• (c) IT capability risk – out-dated/ unsupported systems causing loss of data and/or operational issue;

• (d) Breach of GDPR or e-security; and

• (e) Staffing issues, e.g. loss of multiple staff at one time and/or significant employment law issues;

• (3) Financial risks , including, but not limited to:-

• (a) Financial fraud;

• (b) Loss of student numbers making the school’s financial model unviable;

• (c) Reserves risk – lack of sufficient funds in reserves to allow school to carry on operations for a limited time under stress; and

• (d) Investment policy risk – capital loss by inappropriate investments of the charity’s reserves.

Mitigating actions are regularly reviewed, assessed for appropriateness and updated where necessary, and with the proviso that some are a work-in-progress given the scale involved. Key strategies implemented to help mitigate some of these risks include, but are not limited to:-

• (i) Maintenance of a comprehensive set of reference policy documents;

• (ii) Continuous offering of staff and Trustee Governor training across all risk categories, as well as regular skills-gap audits;

• (iii) Access to independent, third-party specialist advice, e.g. in HR, IT, data protection (and cyber risk evaluation), insurance and property management;

• (iv) Continuing development of senior management of the school and succession planning, where relevant, and including a review of recruitment and staff retention;

• (v) Maintenance of a strong working relationship with the school’s current property landlord (Hammersmith & West London College);

• (vi) Creation of a business continuity plan, including search for alternative settings required in an emergency;

• (vii) Development of a coherent and realistic fundraising strategy to help broaden the charity’s resources and expand the school’s offering;

• (viii) A regular review of reserves and investment policies, with strict oversight and schemes of delegation, and ultimate approval/ ratification by the main Board of Trustee Governors;

• (ix) Consistent control and forecasting of student numbers, frequent review of management accounts and budgets by an appointed school finance officer; and

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• (x) Monitor and evaluate student achievement on a termly basis, provide regular training to staff and create a staff culture where peer observation, feedback and discussion about learning are commonplace.

Through the risk management process outlined above, the Trustee Governors are satisfied that the major risks identified will be adequately mitigated where necessary. It is recognised the systems can only provide reasonable, but not absolute, assurance that the major risks have been adequately managed.

The Trustee Governors have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are broadly satisfied that systems and procedures are in place to mitigate our exposure to these major risks. Nevertheless, the Trustee Governors are acutely aware of the need to continually review and, where necessary, evolve these risk mitigants to enhance overall risk management. This includes working closely with the school’s senior leadership team, which takes ownership of many of these mitigating actions on a day-to-day basis, as well as helping it to shape and attain key strategies on its School Improvement Plan an to draw up a longer-term vision for the school.

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Structure, governance and management

Constitution

The company is a charitable company limited by guarantee and was set up by constitution in 2001. It is constituted under a Memorandum and Articles of Association dated 2001 (updated 2018) and is a registered charity (charity number 1090757). The principal objective of the company is to provide education to children. During the year 2019-20 the school averaged 51 pupils and 35 staff.

Governance structure

Trustee Governor Membership & Committees

		Appointed	Trustee	Main Board	Committees*	Committees*	Committees*
			Governor		FLM	PDBW	TLA
			Type
	Trustee Governors Johnnie Wraith (Chair) Dec-14 Parent ■ Daniela Schwartz (Vice-Chair) Jul-14 Community ■ Hala Ensari Nov-18 Parent ■ Beatriz Exposito Nov-19 Staff ■ Anna De Freitas Nov-19 Parent ■ Michael Gallagher Sep-19 Community ■ Steve Hussey Jun-17 Parent ■ Robert Linton Jan-13 Community ■ Arabella Pembroke (to November 2019) Sep-16 Staff ■ Helen de La Rochefoucauld Sep-19 Community ■ Rosanna Saffell (to November 2019) Sep-14 Community ■ Associate members Nick Herrtage (Real Estate Advisor) - External Wendy Coombes (Advisor) - External Verity Carnevale (co-Head) - Staff Holly Bristow (co-Head) - Staff Phoebe Buret - Staff Steve Williams (Finance Officer) - Staff Lorraine Morgan (Business Manager) Staff Number of meetings 4				■ X ■ ■ ■ ■ X X ■ ■ ■ Eo Eo Eo Eo Eo Eo Eo IoA IoA 6 4 4

X Chair/ ■ Member/ Eo Ex-officio/ IoA Invited to attend

*FLM=Finance, Leadership & Management/ PDBW=Personal Development, Behaviour & Welfare/ TLA=Teaching, Learning & Assessment. [N.B. The previous separate Finance and the Leadership & Management committees were combined to form the FLM committee in January 2019.]

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Management structure

The Board of Trustee Governors administers the charity. The Trustee Governors of the charity are legally responsible for the overall management and control of the school. The main Board of Trustee Governors is convened four times a year, with separate sub-committees held more often across the year.

The work of implementing their policies is carried out by the Co-Headteachers and their staff. The CoHeadteachers attend all the regular meetings of the Board of Trustee Governors (ex-officio) and its subcommittees.

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Method of appointment or election of Trustee Governors

The management of the company is the responsibility of the Trustee Governors who are elected and co-opted under the terms of the Articles of Association.

None of the Trustee Governors has any beneficial interest in the company. All of the Trustee Governors are members of the company and guarantee to contribute £10 in the event of a winding up.

Polices adopted for the induction and training of Trustee Governors

New Trustee Governors are included into the workings of the charity and the school, including Board policy and procedures, by attending a meeting as an observer and interviewing with the Co-Headteachers and separately the Chair of Trustee Governors. Training is provided for existing members to ensure that they remain fully conversant with relevant current legislation, policy and procedures. Governing documentation states that the time limit for serving on the Board of Trustee Governors is 4 years (although can be re-elected to serve a second term).

Remuneration Policy

Posts for staff are advertised in the relevant arena. Pay is based on set pay-scales, where they exist, and the experience of the candidate. Similar posts are scrutinised to ensure fair and relevant salary levels.

Group structure

The charity does not have any non-charitable subsidiary, and is not engaged in any form of trading.

Funds held as custodian

No funds are held as custodian.

Significant events after the year-end

None

The Trustee Governors report was approved by the Board of Trustee Governors.

Johnnie Wraith Johnnie Wraith (Aug 3, 2021 18:03 GMT+1) Mr J Wraith Trustee Governor Dated: 27[th] July 2021

Steve Hussey Steve Hussey (Aug 3, 2021 19:30 GMT+1)

Mr S Hussey Trustee Governor Dated: 27[th] July 2021

15

Parayhouse School

Statement of Trustee Governors Responsibilities

The Trustee Governors (who are also the directors of Parayhouse School for the purposes of company law) are responsible for preparing the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the Trustee Governors to prepare financial statements for each financial year. Under company law the Trustee Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustee Governors are required to:

• select suitable accounting policies and apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The Trustee Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

16

Parayhouse School

Independent Auditor's Report to the Members of Parayhouse School

Opinion

We have audited the financial statements of Parayhouse School (the 'charity') for the year ended 31 August 2020, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charity's affairs as at 31 August 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

• the Trustee Governors use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Trustee Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

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

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

We have nothing to report in this regard.

17

Parayhouse School

Independent Auditor's Report to the Members of Parayhouse School

Opinion on other matters prescribed by the Companies Act 2006

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

• the information given in the for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the .

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustee Governors remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustee Governors

As explained more fully in the Statement of Trustee Governors Responsibilities (set out on page 2), the Trustee Governors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustee Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustee Governors.

18

Parayhouse School

Independent Auditor's Report to the Members of Parayhouse School

• Conclude on the appropriateness of the Trustee Governors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the charity to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the charity audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

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

...................................... Haralambos Hambi (Senior Statutory Auditor) For and on behalf of Alpha Accountants (London) Limited, Statutory Auditor

585A Fulham Road Fulham London SW6 5UA

19

Parayhouse School

Statement of Financial Activities for the Year Ended 31 August 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

		Unrestricted		Total
		funds	Restricted funds	2020
	Note	£	£	£
Income and Endowments from:
Donations and legacies	3	649,559	54,960	704,519
Charitable activities	4	972,335	-	972,335
Investment income	5	2,999	-	2,999
Other income	6	37,603	-	37,603
Total income		1,662,496	54,960	1,717,456
Expenditure on:
Charitable activities	7	(844,815)	(22,494)	(867,309)
Other expenditure	8	(446,337)	-	(446,337)
Total expenditure		(1,291,152)	(22,494)	(1,313,646)
Net income		371,344	32,466	403,810
Net movement in funds		371,344	32,466	403,810
Reconciliation of funds
Total funds brought forward		728,426	133,823	862,249
Total funds carried forward	21	1,099,770	166,289	1,266,059
		Unrestricted		Total
		funds Restricted funds		2019
	Note	£	£	£
Income and Endowments from:
Donations and legacies	3	499,391	34,859	534,250
Charitable activities	4	1,122,168	-	1,122,168
Investment income	5	2,646	-	2,646
Other income	6	27,892	-	27,892
Total income		1,652,097	34,859	1,686,956
Expenditure on:
Charitable activities	7	(1,044,185)	(25,142)	(1,069,327)
Other expenditure	8	(377,888)	-	(377,888)
Total expenditure		(1,422,073)	(25,142)	(1,447,215)
Net income		230,024	9,717	239,741
Transfers between funds		(24,823)	24,823	-
Net movement in funds		205,201	34,540	239,741
Reconciliation of funds
Total funds brought forward		523,225	99,283	622,508
Total funds carried forward	21	728,426	133,823	862,249

20

Parayhouse School

Statement of Financial Activities for the Year Ended 31 August 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

All of the charity's activities derive from continuing operations during the above two periods.

The funds breakdown for 2020 is shown in note 21. Additionally, there was no transfer from unrestricted funds to restricted funds in 2020 (2019: £24,823). The movement in the prior year relates to the reallocation of depreciation charges between funds.

The statement of financial activities also complies with the requirements for an income an expenditure account under the Companies Act 206.

21

Parayhouse School

(Registration number: 04270330) Balance Sheet as at 31 August 2020

	2020 £ 2019 £ 130,338 140,804 2,473 3,660 28,974 3,363 1,156,084 799,439 1,187,531 806,462 (49,766) (76,957) 1,137,765 729,505 1,268,103 870,309 (2,044) (8,060) 1,266,059 862,249 166,289 133,823 1,099,770 728,426 1,266,059 862,249
Note
Fixed assets
Tangible assets 14
Current assets
Stocks 15
Debtors 16
Cash at bank and in hand 17
Creditors: Amounts falling due within oneyear 18
Net currentassets
Total assets less current liabilities
Creditors: Amounts falling due after more than oneyear 19
Netassets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds 21

22

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31[st] August 2020, although an audit has been carried out under section 144 of the Charities Act 2011. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements under the requirements of the Companies Act 2006.

The Trustees responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and applications of resources including its income and expenditure for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The accounts were approved by the Trustees (Finance) on 27[th] July 2021.

Johnnie Wraith

......................................... Johnnie Wraith (Aug 3, 2021 18:03 GMT+1) .........................................Steve Hussey Mr John William Wraith Mr Steven Hussey Chair of Trustee Governors Trustee Governor

Company Registration No .04270330

23

Parayhouse School

Statement of Cash Flows for the Year Ended 31 August 2020

	2020 £ 2019 £ 403,810 239,740 36,642 32,789 (2,999) (2,646) 437,453 269,883 1,187 41 (25,611) 349,928 (10,945) 14,925 - (347,123) 402,084 287,654 2,999 2,646 (10,692) (28,028) 331 1,997 (7,362) (23,385) (38,077) (37,447) 356,645 226,822 799,439 572,617 1,156,084 799,439
Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation 8
Investment income 5
Working capital adjustments
Decrease in stocks 15
(Increase)/decrease in debtors 16
(Decrease)/increase in creditors 18
Decrease in deferred income 19
Net cash flows from operatingactivities
Cash flows from investing activities
Interest receivable and similar income 5
Purchase of tangible fixed assets 14
Sale of tangible fixed assets
Net cash flows from investing activities
Cash flows from financing activities
Repayment of capital element of lease obligations 20
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August

All of the cash flows are derived from continuing operations during the above two periods.

24

Parayhouse School

Notes to the Financial Statements for the Year Ended 31 August 2020

1 Charity status

The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the Trustee Governors is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Hammersmith and Fulham College Gliddon Road London W14 9BL

These financial statements were authorised for issue by the Trustee Governors on 31[st] July 2021.

Charity information

Parayhouse School is a Non -Maintained Special School for children with learning disabilities:

1.1 Accounting convention

The accounts have been prepared in accordance with the charity’s governing document. the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention, modified to Include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the accounts, the Trustee Governors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustee Governors continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustee Governors in furtherance or their charitable objectives unless the fund have been designated for other purposes.

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

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met. the amounts can be measured reliably, and it is probable that income will be received.

25

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. ·

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal courseof business. net of discounts, VAT an_d other sales related taxes.

1.5 Resources expended

Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to activities, they have been allocated on a basis consistent with the use of the resources.

Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at the School Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements 10% straight line Plant and machinery 25 % Straight line Fixtures, fittings & equipment 25% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset. and is recognised in net income/(expenditure) the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine tt1e extent of tt1e impairment loss (if any).

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labor costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

26

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks. other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

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

Financial instruments are recognised in the charity's ·balance sheet when the charity becomes party to the contractual provisions of the instrument. ··

Financial assets and liabilities are offset with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realize the asset and,settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where tile transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets Classified as receivable within one year are not arr1ortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value. of the future payments discounted at a market rate of interest. Financial liabilities as payable within one year are not amortised·.

Debt instruments are subsequently carried at amortised cost. using the effective interest rate method

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities. if payment is due within one year or less. If not, they are presented as non-current liabilities trade creditors are recognised initially at transaction price and subsequently· measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. ·

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognized immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ·

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

27

l Accounting policies

1.13 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(Expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability. ·

2 Critical accounting estimates and judgements

In the application of the.charity's accounting policies, the Trustee Governors are required to make judgements estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future Period.

28

Parayhouse School

Notes to the Financial Statements for the Year Ended 31 August 2020

3 Income from donations and legacies

		Unrestricted Restricted Total Total
		funds funds 2020 2019
		£ £ £ £
Donations and legacies;
Donations from individuals		6,515 - 6,515 14,058
Grants, including capital grants;
Governmentgrants		643,044 54,960 698,004 520,192
		649,559 54,960 704,519 534,250

4 Income from charitable activities

	Unrestricted Total Total
	funds 2020 2019
	£ £ £
School feesreceivable	972,335 972,335 1,122,168
5 Investment income
	Unrestricted Total Total
	funds 2020 2019
	£ £ £
Interest receivable and similar income;
Interest receivable on bank deposits	2,999 2,999 2,646
6 Other income
	Unrestricted Total Total
	funds 2020 2019
	£ £ £
Other income	20,550 20,550 581
Lunch money	15,560 15,560 23,352
Excursion money	315 315 1,937
Uniform income	1,178 1,178 2,022
	37,603 37,603 27,892

Included within other income is £20,000 (2019: £nil) relating to the recharge of 1:1 support from the local authority.

29

Parayhouse School

Notes to the Financial Statements for the Year Ended 31 August 2020

7 Expenditure on charitable activities

		Unrestricted	Total Total
		funds Restricted funds 2020 2019
	Note	£ £ £ £
Staff costs	11	790,641 - 790,681 894,344
Depreciation		- 20,811 20,811 20,935
Courses		33,814 - 33,814 36,339
Education materials		4,116 - 4,116 9,129
Sport costs		1,043 1,446 2,489 -
Functions and outgoings		5,926 - 5,296 14,761
Other expenditure		9,276 237 9.513 30,729
		844,815 22,494 867,309 1,006,237

8 Expenditure on support costs

		Unrestricted Total Total
		funds 2020 2019
	Note	£ £ £
Staff costs	11	68,154 68,154 56,590
Depreciation		15,831 15,831 11,854
School lunches		20,028 20,028 33,809
School uniform costs		2,473 2,473 3,113
Insurance		13,629 13,629 13,710
Caretaking costs		3,331 3,331 702
Hire of equipment		4,105 4,105 6,504
Motor costs		1,325 1,325 1,865
Rent and rates		63,056 63,056 60,000
Other resources expended		105,241 105,241 123,886
		297,173 297,173 312,033

9 Governance costs

		Unrestricted Total Total
		funds 2020 2019
	Note	£ £ £
Staff costs	11	137,076 137,076 117,226
Audit fees		7,200 7,200 7,200
Accountancyfees		4,888 4,888 4,519
		149,164 149,164 128,945

30

Parayhouse School

Notes to the Financial Statements for the Year Ended 31 August 2020

10 Trustee Governors remuneration and expenses

No Trustee Governors, nor any persons connected with them, have received any remuneration from the charity during the year. Additionally, no Trustee Governors have received any reimbursed expenses or any other benefits from the charity during the year.

11 Staff costs

The aggregate payroll costs were as follows:

11 Staff costs The aggregate payroll costs were as follows:
	2020 2019
	£ £
Staff costs during the year were:
Wages and salaries	891,880 955,066
Social security costs	77,846 86,854
Pension costs	26,145 26,241
	995,871 1,068,161

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:

year expressed as full time equivalents was as follows:
	2020 2019
	No No
Average employees in year	35 36

Contributions to the employee pension schemes for the year totalled £26,145 (2019 - £26,241).

The number of employees whose emoluments fell within the following bands was:

	2020 2019
	No No
£60,001 - £70,000	1 -

The total remuneration of the key management personnel of the charity were £164,849 (2019 - £183,963).

The Co-headteacher, as the highest paid member of staff, received remuneration totalling £65,411 (2019 - £48,667).

12 Auditors' remuneration

12 Auditors' remuneration
	2020 2019
	£ £
Audit of the financial statements
	7,200 7,200
Other fees to auditors
All other non-audit services	4,888 4,519

31

Parayhouse School

Notes to the Financial Statements for the Year Ended 31 August 2020

13 Taxation

The charity is a registered charity and is therefore exempt from taxation.

14 Tangible fixed assets

	Leasehold improvements £ Furniture and equipment £ Motor vehicles £ Total £ 158,143 113,255 30,172 301,570 (15,815) 26,507 - 10,692 - (441) - (441) 142,328 139,321 30,172 311,821 43,487 99,176 18,103 160,766 - 14,793 6,035 20,828 - (110) - (110) 43,487 113,859 24,138 181,484 98,841 25,462 6,034 130,338 114,656 14,079 12,069 140,804 2020 £ 2019 £ 2,473 3,660 2020 £ 2019 £ 22,239 - 3,764 2,882 486 - 2,485 481 28,974 3,363
Cost
At 1 September 2019
Additions
Disposals
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
Eliminated on disposals
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019
15 Stock
School uniforms
16 Debtors
Trade debtors
Prepayments
Accrued income
Other debtors

32

Parayhouse School

Notes to the Financial Statements for the Year Ended 31 August 2020

17 Cash and cash equivalents
	2020 2019
	£ £
Cash at bank	1,156,084 799,439
18 Creditors: amounts falling due within one year
	2020 2019
	£ £
Trade creditors	- 3,877
Hire purchase and finance leases	6,016 22,264
Other taxation and social security	23,562 27,786
Other creditors	7,520 1,239
Accruals	12,668 21,794
	49,766 76,960
19 Creditors: amounts falling due after one year
	2020 2019
	£ £
Hirepurchase and finance leases	2,044 8,060
20 Obligations under finance leases
The total value of future minimum finance lease payments was as follows:
	2020 2019
	£ £
Within one year	6,016 23,881
In two to fiveyears	2,044 8,176
	8,060 32,057
Less finance charges allocated to futureperiods
	(116) (1,733)
	7,944 30,324

33

Parayhouse School

Notes to the Financial Statements for the Year Ended 31 August 2020

21 Funds

		Balance at 1 Incoming Resources	Balance at 1 Incoming Resources	Balance at 31 August 2020 £
		September 2019 resources expended
		£ £ £
Unrestricted funds		728,426 1,662,496 (1,291,152) 1,099,770 133,823 54,960 (22,494) 166,289 862,249 1,717,456 (1,313,646) 1,266,059
Restricted funds
Total funds
		862,249 1,717,456 (1,313,646)
Balance at 1 September 2018 Incoming resources Resources expended
£ £ £
Unrestricted funds 523,225 1,652,097 (1,422,073)			(24,823) 728,426 24,823 133,823 - 862,249
Restricted funds 99,283 34,859 (25,142)
Total funds 622,508 1,686,956 (1,447,215)
22	Analysis of net assets between funds

22 Analysis of net assets between funds

	Unrestricted
	funds	Restricted funds	Total funds
	£	£	£
Tangible fixed assets	5,958	124,380	130,338
Current assets	1,145,622	41,909	1,187,531
Current liabilities	(49,766)	-	(49,766)
Creditors over 1year	(2,044)	-	(2,044)
Total net assets	1,099,770	166,289	1,266,059

	Unrestricted funds £ Restricted funds £ Total funds £ 38,186 102,618 140,804 775,257 31,205 806,462 (76,957) - (76,957) (8,060) - (8,060) 728,426 133,823 862,249
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1year
Total net assets

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Parayhouse School

Notes to the Financial Statements for the Year Ended 31 August 2020

23 Analysis of net funds
	At 1 September Financing cash At 31 August
	2019 flows 2020
	£ £ £
Cash at bank and in hand	779,439 356,645 1,136,084
Finance leases and hirepurchase contracts	(30,324) 38,077 7,753
Net debt
	749,115 394,722 1,143,837
	At 1 September Financing cash At 31 August
	2018 flows 2019
	£ £ £
Cash at bank and in hand	529,344 226,822 756,166
Finance leases and hirepurchase contracts	(67,770) 37,447 (30,323)
Net debt
	461,574 264,269 725,843

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