LOCHINVER HOUSE SCHOOL (Limited by guar8nte¢) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED31 AUGUST2020 Ch8rity Number: 1091045 Company Number: 04374254
LOCHINVER HOUSE SCHOOL HEADMASTER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2020 HEADMASTER'S REPORT Loehinver House School has adapted wilh atsility and illgenuity to maintain excelleni prnvision to every pupil during ihis unprecedented year. Working in ¢105¢ partnership with pantS an exrIenCed and hitshly qualified staff switched to Ihe remote provision of several live lesson% every day in order to ensure continuity of effective leaming for evely boy aged 4 to 13. In addition, working within guidance from ihe DtE, Lochinver worked with ambslion to ensure thai every boy was able to retUTn for on-site experience of school before the summer vacation cominenced. Mainiaining a high level or sctvice to the pupils and parents through such initiatives as the 13 weekly YouTube assemblies designed to sirciigthen and encourage the comTnunily, broutshi overwhelmin?oly p)sitive responses and great appreciaiion. As a resuli inierest in the School remains high. Lochinver is a genily seleciive school specialising in a well-rounded education for Iws. We provide a Spoke and nurturing journey of challenge for success ai boih I I t and 13. We are grounded- noi grand. and our pupils are respecied for being diverse. dynamic, honest and kind. Sirong values equip our boys wilh adapiable learning power for an onward journey to world class schools. Indeed. at (he close of ihis academic year. all i5 Year 8 pupils gained offers to their cliosen h0O15 and in addition weTe offered I I scholarships,17 academic, J music and on¢ Artl by schools which are truly excellent. This brings the last thr¢e years, total 10 44 scholarships. award5 rnade ihrgugh examination and rivorous 35sessmeDt. Ai 124 and at tlie ¢i)d of their penultiinare year. fifteen boys secured unconditional 13- plx¢s io St Albans School. Lochinver offers a first cla55 edUtIon of both depth and brcadth. Triis is evidenced by achievemenis ekeinplified by the following. five of our 180 insiruinenthl leanr$ were solected io be members of ihL CIiiTI j511 Scl)ools N#iional Orcliestra. Our new RoiTrotlC5 Club attracied sirong interesi aiid Lochinver was the only Prep Scliool enirwir in Ihe Al inter-scliuol Saturday ¢ompeiition at Forfismere School. Our basketball ieam yei again progiressed ro the IAPS Naiional fii)als. Visiring Author Curtis Jobling delighted children aoross ihc school in his varied sessions on World Book Day. Prc-Lockdown, 'Wild Hair day, led by Lo¢hinver's Environtncntal OriTanisation established a live link 10 (In expen iii order to preseiii a dedicated asseinbly in a low carbon way. The pupil-ILd piojeci launched in this asseinbly raised funds io buy 2 1/2 fooiball pitches worth of rainforest under ihe in peTlu11Y au5piccs of the World Land Trust. T1 key pairon of this charity is Sir David Attenl)orough. With privilege COTn¢5 responstbilily and Lochinver pupils are committed to Ihinking globally and acTing locally. Pupil-led charitable initiatives regularly Taise £15000 for i chariiies deJnocra(ically elecied by il)e school coiniiiuniiy each year. The School is blessed by a talented team of highly commilled professionals who ha shown iminense cApacity aiid cour4g¢ ID maintaining an excellent offering 10 the children and families we serye. My heartfeli thanks to everyone. Ben Walker I leddinaster
LOCHINVER HOUSE SCHOOL GOVERNORS, REPORT FOR THE YEAR ENDED31 AUGUST2020 The Dire¢tors pre5¢nt their report and audited financial statem¢nts for the year ended 31 August 2020. Reference and Administrntive Inforrnalion Lochinver House School Wds founded byTntst Deed in 1947. A Company Limited by Guarantee. Lochinver House School. was incorpordted on 14 Febnry 21M12 to own and manage the School. The assets and liabilities of the School were trdnsferred from Lochinver House School Trust to the Limiied Company on l ApTiI 2002 when ir commenced its educational activities. The School 15 a registered charity. number 1091045 and is constituied as a company limited by guarantee. Its objects, power5 and other constituiional matters ate sei out in its Memorandum and Artieles of A550ciation. li is govemed by a Board of Governors which is responsible for setting the 5n11C directions of the School and for establishirtg policy. The financial statements and report comply with the ¢utTeni statutory Metnorandum and Articles of Association and the Statetnent of RQmMended Practice - Attoyniing and Reporting by Charities (SORP 2015), The Charities Act 201 l and the Companie5 Act 2006. Directors The governing body of the company is known as the Board of Governors. The MembeT5 of the Board are also the charity trustees for the purposes of charity law and DirectOTS for ihe purpose ofcompany law. They are also (he company members. Throughout this report they are collectively referred to as the Governors. Those who served during the year and Since the year end were.. W R Moores Chair D A Taylor B Aitken M Collier Vice Chair A English N Gilbert J Gillespie O Jacobs J Le Couilliord JEROram H Philp C A Smith Resign¢d 24 June 2020 J Taylor-cummings They are elected ai a full Governor5, Meeting for a rerni of ihree years. They can be re<lected for up to three further consecutive terms of three years but shall not ihen be eligible for re<leclion without a break of at least twelve calendar months except by $OlutIOn of the Board.
LOCHINVER HOUSE SCHOOL GOVERNORS, REPORT {continued) FOR THE YEAR ENDED 31 AUGUST 2020 Key Executives **d Professional Advisers The Headmaster B C Walker B.A.(Hons), PGCE The Bursarlcompanyseeretary N L Marlow B.A. {Honsl, ACA (to 31 July ?020) J C Smithson B.A. {Hons), FCA (from l August 2020} Address LochinverFloeSChool Heath Road LI1¢ Heath Potter5 Bar Henford5hire EN61LW B8nkers Naiional Westhiinster B£inkCominercial Banking Isr Floor JO Clarendon Road Watford, Hertfordshire WD171GQ Solicitors Veale Wasbroughvixards Oichurdcourt Orchard Lane Bristol BSI 5WS Auditors Ilaysinacintyrc LLP 10 Queen Sireet Place London EC4R IAG
LOCHINVER HOUSE SCHOOL GOVERNORS, REPORT (Continued) FOR THE YEAR ENDED 31 AUGUST2020 Strutture, Governance and Management Governing Document The Company is g0vend by its Articles of Association. The Articles were reviewed and updated in 2015. The objects of the Company a io advance education by the canying on of a preparatory school for boys known as Lochinver House School. Governing Body The Governors are Directors and are elected ai a meeting of the Board of Govemor5. Govemors are clted on the basis of llomination taking regard of special skills and personal qualities io ensure that the Board retains an effe¢tive balance of ¢xperti5e to strengthen the rnanagement of the Charity. Governors a eligible to serve for an initial period of three year5. GovernorTralning New Governors are provided wilh an iTKluction pack containing Board policy and procedures, schemes of governance and inforniarion regarding the work and operaiions of ihe School. Governors are encouraged to attend 5Ultable trainin8 courses which deal wilh their reswnsibilities in relation to th¢ Companies Act, Charity Law and Department for Education requireTnents a5 the need arises and are en¢ournged ¢0 attend new Governor induction Courses. Organisatlonal Man*gement There are nonnally three full Board Meeting5 each year where the Governors meet and review the policies of the Charity for which rhey are responsible. The Finance and Genernl PuTP05es Committee meet to review budgets, ac¢ounis and reports and makes recornmendations io the Board of Governors. The Govemors havea programme of regular visits to the Sch] to wilness and monitor the charitys work in aciion. Day to day running of the School i5 delegated io ihe Head and the Bursar, 5UPPOrted byihe School Senior Leadership Team. The School. through its officers, is represented in a number of organisaiions including the Association of Governing Bodies of Independent Schools (AGBIS). the Indertndent Association of Prep S¢hoo15 (IAPS) and the Independent Schools, Bursar5'Association (ISBAI. Structure Relatioll$bip$ The Headmaster is an active member of IAPS which promotes and Tnainthins 51andards in preparatory schools. The School takes an active part in nuTnerous professional studies fortheevaluation of quality and perforn)ance. Outside of the Covid-19 restrictions. we co-operate with as many local charitie& clubs and associaiions as we Can to widen public access to the education we provide and promote the educational benefits of using our sporting fa¢ilities. We have an aangerent wilh ¥4 local sthte junior s¢hool that Use our science latx)ratorie5 fdch week whi¢h makes a positive contribution to their education. Objeets, Publie BetfIt, Aijos, Objectives and Priocip41 Activities The School's aim is to provide public benefit, in compliance with the duty in Section 17(5) of the Charities Act 2011 to have due regard to the Charity Cornmission's published generdl and relevant suiFsector guidance. and in accordance with its Articles of Association, which 15 to educate boys up to the age ofthirteen.
LOCHINVER HOUSE SCHOOL GOVERNORS, REPORT (eothtinued) FOR THE YEAR ENDED 31 AUGUST 2020 Str#tegie Aim and Intended Effect The Board's strat¢gi¢ airn 15 to reach its annual objective for the public benefit as a charithble Independeni School Ihrough the provision of a high quality education for trM)y5 between the age5 of four and thirteen io allow them io a¢hieY¢ lh¢ high¢st a¢adcmi¢ sndardS in preparation for cntry into thc scnior school of their own and their parenis, clioice. Our wider adfflission policy enablcs us to help boys from lower income or orheti¥ise disadvaniaged fainilic5 to b¢nefJt from our fee based %hooling and to nefit frotn our extra4urricular progt3mine. The School also alin5 lo drdw out all boys, abilities and academic poteiitial and to develop their wider intere$ in life wiihin a secure and srable etivironinent to enable them to participate in society and the community. PrineipalActivity Th¢ School'5 principal a¢iivity ¢Olllinues to the wovision of an excellent stsndard of education for boy5 aged four to thirteen. Objcctives -I'lio Board'5 main objective continues to be to educate all pupils io a high sndard each year, which benefils th¢ir ¢hosen Liiior scliool for the completion of their educarion.'Thc SchcM)I has a ihree year whole %h¢MTrl develo7]eJIt plaii wliich is rL¥yularly reviewed and Updad. The School is con)Iniiied io reviewing it5 a¢ademic syllabu5 and teachii)g tnethods. nie ILILilities are upgraded regularly io provide Inodem lId1111)s and arnenities, which stiinulate the pupils in all areas of their development. The Board's other objective is to develop bursaries wilh a view io funher increasing ih¢ School's intake of boys froni lower incoine fai1[leS and io exiend workiiig arrdn¥peienIS wilh oihercharities and stale schoo15 to provide access to OUT lacilities fgr those who cannot come io Ihe School iiself. We sei aside funds for bursary aivards to help those in need of assisrance with Olhr school fees. Review of Achievemewts and Performance for tht Ytar Aeademie The achievemertis of pupils demonsirare ihe School's coiiiinued success. Lochinver IK)ys a in deinand and in the last 10 year5 we have sent boys to over 20 differeni schools. Our Year 8 EKbys gain successful entry to their cliosen senior schools. In the last three years. our boy5 have been off¢r¢d 44 scholarships. This year we seni boys 10 8 Schools. Aldenhain. Bishop's Sionford College. Haberda5her5' A5ke's, Haileybury, Mill Hill School. Si Albans. St Coluniba's and Westminster. These accomplishments have been tnade possible by the recnjiimeni of the highest quality siaff and by Inaintatnints a l)j*h teacher io pupil ratio which en511res thai teachinti meih(K1s can be suiied to individuol needs. Teaching staff regularly aiiend rrdining courses in order to ¢nhance their [SOnal perfomance and to improve the quality of the curriculum. The School reviews its Hcad¢mi¢ syllabus and teaching methods in order io benchmark standard5 and value- dded criteria. Extra-Curri¢ul&r aetlyltles Alihough limited by ihe Covid-19 restrictions this year. the School has an ¢ducational program1e to provide many extra- curricular aciiviiies for the chhldren. Vhsits have bttn undenaken io iheatye& field 5tlldy ¢entres, Inuseums and various places of worship for differenl religions. Many of these visits have been lirsked to slf1¢ classroom proje¢ts. A number of iheaire and perforniing an5 groups have ¥iven perfomiances io the h0o1 along witli talks by authots aiid storytellers and these have usually been linked with annual Ix)ok wttks when the pupils parti¢ipai¢ in a wide tange of aciivities. Music rcmains very strong at ihe school with a large uptake of participants. Over half of our boys learn an insirumenr witl) half of those learning two or more to progress on a teTmly basi5 through ABRSM grdde exams. Five boys look part in the Naiional Children'5 Orchestra. Our weekly composiiion club which builds on class tnusic lessons and the use of Sibelius software led io a nuTnber of boys hearing their own coinpositions being played by a visitlng professional string quartei. The School continueg to pui oui a tremendous number of sports tearns and we haye competed aE rhe highest level. For the founh year. Lochinver were finalists in the IAPS Baskeiball ¢ompetiiion. We remain the only Prep School io have reached the naiional final of the Independeni Schools Football Aswiation Cup. This was achieved ai Under 13 and Under I I levels. Some boy5 ar¢ contracted to professional clubs.
LOCHINVER HOUSE SCHOOL GOVERNORS, REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020 Development$ in the School Having completed a three phase building development plan in the summer of 2019 and faced the challenge5 of Covid-19, we are shortly lo cotnmence a review of our sttategic d¢velopment for the next 5 years. There has been significanl IT development withill the School in the lasi few years and ihis continues. All boys in our top years, years 6-8 are provided with an iPad to be used in conjunction with tradilional teaching methods. Our investment in IT has enabled u5 to respond quickly to the demand5 of Covid-19 and we anti¢ipale thai the agility demonstrated during these times will Supercharge our offering in thi5 regard in the future. Publlt Benefrt Bursarie5 The Governors re¢ognise that the independent education fe¢5 are at levels which may exclude many boys from applying for a plaee at the School but they are committed to wdening the access to the education offered. Accordingly, the Governors set a fixed Sum to provide bursaries for those boys whose parents could oiherwise not afford to send thein to our School. The Governors have a fomal Bur52ry Policy and a Governors, Bursary Award Committee a5sesse5 all applications and report to the Board. Details of Bursaries are included on the School websiie. The Governors budgeied £135,000 for bursaries in 201912020 which is reviewed on an annual basis. Emergency funds were made available to assist parents facing unprecedented demands during The Covid-19 Yen¢t10%. In addition, the fees for the Summer terni for all pupi15 were discounted by 20Vo 8$ 4 one-off concession to all parents. In 201912020 the School supporfed fourteen (201812019.. twelve) pupt15 through our Bursary Scheme. rhree of whom were on a fvll bursary. The support which is available on a needs basi5 as deterniined by th¢ Governors. Bursary Award Committee reduced annual income from scale fees by £154,613 (2018119 £119.028). The Governors have currently agreed thirteen bursaries for 202012021 totalling £118,678. including four fijll bursaries. Other Public Benefit The School continues to support various good Use$ via the Head Boys, Charitie5. The donations 5UPPOrt various national and local charities which benefit the community- This year the charilies were Breast Cancer Now. the Brain Tumour Charity & the Childn,$ Tryst. For a small prep school lh¢ S¢hool has great facilities and it Uses these as far as it is able to benefir the local ¢ommunity, although this has been impacted ihis year by the Covtd-19 restriction5. [cal state schoo15 have attended workshop5 and special events. The Scienc¢ latrrt)rntories are made available on a weekly basis for a local junior school to attend an after school club. These aciKvilies rn8ke a positive contribution to their education. During the Closure of all schoo15 belwttn March and May 2020 (in¢luding in the holidays), onsite education was provided to 18 children of keyworkers a5 well as a full remote provision io all of our other boys during term time. The facilities of the S¢hool are made available to outside organisations to benefit the education of children and adults. School links with the ¢ommunity continue with our a$50ciation with the local youih organisations. The School Tnaintains a public benefii register of all activities where the School opens its facilitie5 to the local community. The fInancial benefit to the community via free or reduced charges for use of our facilitics ha5 been assessed to be over £5,940 for 201912020 which was redu¢ed to the Covid-19 restriction5. Charity Fundrglslng The school has not made any furkdraising appeals io ihe general public during the year, and is unlikely to do $0 in the future. There has been no outsourced fund rnising via professional fundrdi5ers or oiher third parties. As a result the charity is n registered with the fundraising r¢gulator and received no fi]ndrdising complaints in the year.
LOCHINVER HOUSE SCHOOL GOVERf40RS' REPORT (continued) FOR THE YEAR ENDED31 AUGUST 2020 Volunteers VoluThteers in the school have been limited since March 2020 by the Covid-19 restrIl0n$. The Parent Teacher Association Ineets regularly to organise and social events to raise funds for the School. The School coniinues 10 enjoy the support of volunteers and parenral helpers in ihe classro(Trm. The level of this voluntary service is invaluable to lh¢ School in providing the excelleni level ofeducation ro which the School is commilted. The Governors would like to thank all thos¢ volunteers foi Iheir valuable support. The School also appre¢iai¢s the number of pan(S wiK) donate their tirne to tpke boys for readingsupport. LOokig ahead The key objective continues to be the provision of a high qualiiy edU10n for t)ys aged b¢tsv¢¢n four and thirteen io allow them to achieve the highe a¢ad¢mic andards. 'rhc School has o thrtt year Development Programme coveringihe curriculum, pr¢mise4 staff irnining. pupil development lind Ihe provision of bursary support. Financil Rtsults JNd RcservesPolity 'I'he results are shown in the accompanyin(p financial sthreinenis on pages l) to 26. During the financial year. Ihe School geiierated income of £4,498,795 (2019.. £4.830.590) from school activilies. The reduciion froin Ihe prior year reflect5 the recognition the Governors made of the impaci rhal the Coronaytnjs pandeinic was likely ro have on ihe School Community which led to a downward adjullmeni to the Summer ierni INalment orth¢ 2019,?O fees. Expenditureof£4,326.900 (?019= £4.292.288) ¥VdS incurred. Additions to fixed asseis iotalled £340,144 (2019.. £579,816) and included £47,763 (2019.. £68,017) for computer equipinent, £248.445 (2019.. £511.7991 on t1]dIng itnprovcments and equipmenL and fixtures & fittiThgs and Tnotor vehicles of £19.792 and £24,144 respecrively. The S¢hool has an objeciive to achieve a SUTplus ea¢h year io ensure that there are sufricient r¢s¢rv¢s to manage the School prndently and io provide fvnds for fututt capital expendiiure. The accumulation of rewr5 to date enables the oiigoing liplementatIon ofihe schI.s tkv¢l(Trptnent Plan. Noies 13 10 16 split ihe reserves between ihose held fora specific Purpose (re5trirted funds) and those available for the day to day requirements of the School (uDr¢5tricted funds). The School's asseis are Sl¢l¢t to meet its obligations. Key management personDel The Governors ha identified the Headinasier and Bursar as key management personnel. The salary of these key tnanageineni personnel is set by ihe Board of Governors after as5e55ing their perfom)ance and reviewing inarket beiiclima]*s. Investment Performan¢¢ TheArticl¢s of A550ciation perniit funds ¢0 be invested in such Investmen se¢witi¢5 and property as may be thoiight fit. At present iTtv¢stment income is generared primarily by placiTrg funds with up io three separate banksto minimise risk. as detemiined by the Bursar. to whom such responsibilities are delegated by the Governors under the TeTmS of Reference of the Treasury Policy.
LOCHINVER HOUSE SCHOOL GOVERNORS, REPORT (continued) FOR THE YEAR ENDED31 AUGiJST 2020 Resources The School's unrestricted funds represent Iwo teS of fund. The designated "School Buildings" of £5,233.968 (2019.. £5.114.135) represents unrestricted fvnds rethined to finance th¢ freehold property of the School. The balance of the unrestricted funds of £J.783,119 (2019.. £3,7J8.184) represents genernl reserves to cover normal fluctuations in working capital. io finance rhe continuing development of ihe Sch(1 and to help fund provision forbursaries. Principal Risks & Uneertalntles The Governor5 cary out regular remews of the School's activities and operations. As part of that process a Risk Management Committee annually reviews the action taken. or proposed to be taken, by the School to identify and rnanage the main risks to which the School is exposed. Through the reports and recommendations of th¢ Risk Management Committee, the Governors monitor the effertiveness of the School'5 internal policies and procedures for the management of such risk& includino the adequa¢y of the School's insurance ¢over. The Schcmll has identified the following as the principal risk$ it fac¢s' Maintaining pupil numbers in the current challenging economic climat¢ and the abiliry of existing parents to fund fees. particularly wilh the uncertain ¢conomic conditions once th¢ global health emerg¢n¢y lifts. Strategies for managing this risk include the Director of Admissions and Marketing working io strengthen links with local nursery schools and developing a markeling Strategy to support pupil retention. A new web51te was launched and a social media agency engaged. A robust Bursary Policy and application procedure is in place. The capacity ofth¢ School to adapi Pfdciically and efficiently to rhe increasingly onerous regulatory ond legislative requirements that schools face. Siraiegies for managing Ihis risk include having a dedicated HR & Compliance Manager aThd compliance is addressed as a Standing item of the main Governors agenda at every meeting. Recruitment and reiention of sialT of the required calibre to maintain the hioh siendards of the School, this is increasingly challenging and 15 ing managed by building links with ining ¢olleges and enhancing our recruitment process. CPD is actively encournged and supported. SignifIcaDt political change which wll inevitsbly be detrimental to the charitable siatU5 of independent schools. Risks Tllay include the potential loss of business rdte relief and the introduction of VAT on School fees resulting in a fall in pupil nurnbers due to fees being unaffordable for many parents. The Schi)ol work5 Wlth the ISC and other representative bodies to defend the chariiable staius of independent schools and i5 constantly seeking ways Io Teduce costs and generate additional income (o mitigate the impact of these possible changes. The Board recognises thai systems Cannot Provide absolute a5surJn¢e ihat all possible risks have l*en identified and managed, but strives to ensure straiegie5. syslems and plans are in pl¥¢e to mitigate these ri5k5.
LOCHINVER HOUSE SCHOOL GOVERNORS, REPORT (continued) FOR THE YEAR ENDED31 AUGUST 2020 STATEMENTOF DIRECTORS, RESPONSIBILITIES The Governors (who are also Directors of Lochinver House Sch(1 for the purrmises of company law) are responsible for preparing the Governors. Repon and the financial alcTnen1S in accordance with applicable law and Unit¢d Kingdom Accounting Standards (Uniied Kingdom Generally A¢ttpted Accouniing Prnciice). Coinwdny law requires th¢ Gov¢rnor5 to prepare fi¥Lancial statements for each financial year which give a true and fair view of rhe stale of affairs of the charitabl¢ ¢OTnpany and of the incoming resources and applicalion of resources. including Ihe ii)come and expenditure, of the charity for that year. In preparing these financial sraiement5, the trusle¢s ar¢ r¢quId to.. Select suitable accouniing policic5 and then apply them conslstently. Observe rhe methods and principles in the Charities SORP; Make judgemenis and estimates that are reasonable and PTU(knt- Stare wheiher applicable UK Accouniing swidards have be¢n followed. subjeci to any Inaterial departiire5 disclosed and explained in the financial siaieinents. Prepare the financial statements on the goinii ¢oncem basis unless li is inappropriate io presume that the charitable company will continue in business. The Governor5 are responsible for keeping proper accounting records that are sufficieni to show and explain the School's transactions, disclose with reasoiiable accuracy ai any iiine the financial position of the charitable company and enable tl)em to ensure thai ihe financial siaiemenis coinply with the Companie5 Act 2006. They are also responsible for safeguarding the È5sets of ihe charitable company and hence for iaking rea50ble steps for the prevention and deieciion of fraud and other irregularities. So far &5 ¢aeh of the Governors is awd¥e ai the lime ihe report is apFwoved: Ihere 15 no relevant audit infomiaiion of ivhich the co]npanS alitorS are vnaware., aThl Ihe Govemors hav¢ tak¢n all st¢ps ihat they ought to have iaken io Inake dKin5elves awdre of any relevant audil inforn)alion and to e¥ablish thai the audiiors are aware of that infoniialioii. AUDITOR Messrs Hay5macintyre LLP have expressed their willingnes$ to cofttinue in office as auditors and a resolution proposing their re-aptK)intment will be submiiied ai the Annual Generdl Meetin In approving this GovernorslTrustees ReporL ihe Board also approving the Straiegic Report includ¢d herein iheir capacity as company directors. Approved bythe Bojrd of Directors at itsmeetingon IIL and signed on itsbehalfby: W R Moores Chair 10
INDEPENDEpff AUDITOR'S REPORT TO THE MEMBERS OF LOCHINVER HOUSE SCHOOL Opinio We have auditcd the finan¢ial 5tat¢rnents of Lochinver House School for the year ended 31 August 2020 which comprise the Stat¢rnent of Financial Activities, the Balance Sheet. the Cash Flow Statrmenr and the related not¢s to the financial statements, including a summary of significant accounting policies. The financial rep)rting framework that has beert applied in their prepardtion is applicable law and United Kingdom Accouniing S(andards. including Financial Reporting Standard 102 The Financial Reporiingsiondordopplicoble in ihe UK andRepublic oflr¢land(United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial Siaternents.. give a tru¢ and fair view of the stste of the charitsble ¢ompony's affairs as at 31 Auglrst 2020 and of the charitable ornpany'5 net movement in funds. including the income and expendirure. for the year ihen ended: have been properly prepared in accordanc¢ with Uniied Kingdom G¢nerdlly Accepted Accounting Practice. and have been prepared in a¢cordance with the requirements of the Companies Act 2006. Ba5ig for opinion We conducted our audil in accordance with International Stsndard5 on Auditing (UK) (ISAS (UK)) and applicable law. Our r¢sponsibilities under those siandards are fijrtherdescribed in the Audiior's responsibilitie5 forthe audii of the financial statement5 section of our repon. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial ststements in the UK. including the FRC'S Eihical Standard. and we have fulfilled our other ¢thi¢al responsibilities in accordance with these requiremenis. We believe that ihe audit evidence we have obtained 15 sufficient and appropriate io provide a b8Sis for our opinion. Responsibililies of tru5tee5 for the finanelgl stgtemeNI$ As explained more fully in the twstees. resw)nsibiliiies siatelnent set outon page 12. the trustees (who are also the directors of the charitable ¢ompany for the purposes of company law) are re5pon5ible for the pr¢parntion of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the tsvstee5 determine is necessary to enable ihe prepardtion of financial statements thai are free from maierial missiat¢m¢nL whether due to fraud or error. In preparing the financial sta(emenis. Ihe trustees are responsible for assessing the charitable company's ability to continue as a going ¢oncem. disclosin& as applicabl¢, matters related to tsoing ¢oncern and using the going concem basis of a¢counting unless ihe trustees either intend to liquidate ihe charitable ¢ornpany or to cease operations, or have no realistic aliernative but to do 50. Audltor's responsibilities for the audit of the fiNancil sttements Our objectives are to obtain re250nable assurance about whether the financial sr8iements a$ a whole are free from material misstatement. whetherdue to fraud or error. and ro issue an auditor's rewrt thai includes our opinion. Reasonable assurance is a high level of assuranee, but is nol a guaranitt thai an audit conducted in accordance with ISA5 (UK) will always detect a material misstatement when it ex1$. Misstatements can arise from fraud or error and are considered material if. individually or in the aggrewe. they could re&8onably be ¢xpected io influence the e¢onomK decisions of users taken on Ihe basis of these financial statemenis. A further d¢rIptIon of our responsibilities for the audit of the financial siatements is located on the Financial Reporting Council's w¢b5ite al.. www.frc.or itorsres sibilities. This description forTll5 part of our audÈtor's report. Conclusions relatlng to going concern We have nothing to report in respeci of the following mallers in relation to which the ISAS (UK) require us to report to you where.. the irnsi¢¢s' use of the going concern basis of a¢rounting in the Preparation of the financial ststements is not appropriate,. or the trustees have noi disclosed in ihe financial 5taiements any identified material uncertainties that may cast significanr doubl about the charilable company's ability to ¢ontinueto adopt the going concern basis of accounting for a period of at Iwi twelve month5 from the date when the financial ststements are authoTi5ed for issue.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOCHINVER HOUSE SCHOOL Other inforrna¢ion The trustee5 are rponSIble for the other infom)aiion. The oiher inforn7atton comprises the information ineluded in the Trustees, Annual Report. Our opinion on the financial Matemenis doe5 not cover the other information and, except io the extent otherwise explicitly stated in our report. we do noi express any form of a55urJnc¢ con¢lusion thereon. In connection with our audil of the financial sraiem¢nts, our r¢5ponsibility is io read ihe oiher inforn)ation and. in doing so, consider whether the other infomiaiion is materially inconsistent with the fillaneial statemenis or our knowledge obiained in the audit or orherwise appears io be MaDaIlY tnissiaied. If we id¢ntify such mat¢rial inconsisiencies orapparent maierial misstaieinents. we are required to dei¢Tmine whether there is a material misstaiement in the financial srateinenr5 or a material misstatement of ihe other information. If, based on the work we have performed, we conclude thai rhere is material misstaiemenr of thi5 Other information, we are required to report thai fact. We have noihingto repon in ihis regard. OpiDlOllS Oll Other mattern prescribed by the Companies Act 21M)6 In our opinion. based on the wod( undertaken in the course of th¢ aLMlit'. the infoTll)ation given in the Tnle¢S. Annual Report (which includes the strdtegic report and the dircciors. rcpon prepared for the purposes of company law) for the financial year for which the financial statemenis are prepared is consistent with the financial slat¢ments- and Ihe strategic report and the direciors. repon irKluded within the TnLStees' Annual Report have been pPAred in accordance with applicable legal Tequirements. MJtl¢rs on which we Are required to report by exeeptio Iii Il)e lighi of th¢ kiiowledge and understanding of the charitable ¢oinpany and its environment obwined in the course of Ilie audiL we have noi ideniified material rnisstatements in the Trustees. Annual Report (which incorporates ihe strategic ieport and the direcEors' repon). We have norhing io report in respect of the following malteT5 in relation to which ihe Companies Act 2006 r¢quire5 U5 to report io you if. in our opinion.. adequatr accounring records have noi beeji k¢pt by thc charitzbk company. or Ewurns adequate for our audii have not been received from branches not visiied by us: or lh¢ charitable company financial siaiemenis are in aL>rceinent with the accouiiting record5 and retums: or ertatn dis¢105ui'e5 of trusiees, reinuneraiion 5pecificd by law are not mad¢. or we have received all ihe infortnation and explanalions we require for our audil. Use of our report This I'epon is made wlely to ihe chariiable Compan9 memts. as a body. in accordance with ChaNer 3 of Part 16 of the Companies Aci 2006. Our audit work has been undenaken so Ihai we mighi suie w the ¢haritabl¢ ¢oinpany'5 rneinbers those Jnai*r5 w¢ ar¢ required [0 State to them in an Auditor's rekKtrrtond for no other puw. To the fullest extent perniitted by law, we do not Kcept or assume resw)nsibiliiy io anyone otherthan lh¢ charithbl¢ c¢Mnpany and the charitable coinpany's Inember5 as a body, for our audit wr)rK for this report. or for the opinions we have formed. .u 'Thoma5 Wilson Senior Statutory Audltor For and on behalf of HaysmaelThtyre LLP Statutory Auditors 10 Queen Street Place London EC4R IAG Dare.. 9 December 2020 12
LOCHINVER HOUSE SCHOOL STATEMENT OF FINANCIAL ACTIVITIES (In¢orporat•ng incom¢ and expenditure account) FOR THE YEAR ENDED 31 AUGUST2020 Re5trieted Unrestrieted Fund Fund Tot81 2020 Total 2019 Note INCOME FROM: Charitable aetivltles School Fee5 receivable Regi5tTation fees and other income 4ulO,6)1 107,384 4,310,6i I 107.384 4,640,609 143.438 Donatlons 7.127 56.018 63,145 20,128 Other trading actLVlties Rents and lettings Investment income 6,409 11,226 6.409 11,226 8,989 13,838 Other 3,588 Total income 7.127 4.491.668 4.498.795 4,830,590 EXPENDITURE ON: Charitable Activities School Operating costs 4.326,91)0 4.326.9(KJ 4292,288 Total eypenditurt 4.326.900 4.)26,900 4,292,288 Net income 7,127 164.768 171.895 538.302 Transfers between funds Net rnovement in fund5 7.127 164.768 171,895 538,J02 Balances brought fonvard 5.630 8.852.319 ,852,949 8,319,647 Balances gt ¢4rri¢d forw*rd 13 12.757 9,017.087 9.029.844 8,857,949 There were no acquisitions or discontinued activities during the yw. There were no oih¢r recognised gains or losses during th¢ year. The accompanying notes forni part of these accounts. 13
LOCHINVER HOUSE SCHOOL Comp*ny f4th 04374254 BALAf4CE SHEET AS AT 31 AUGUST2020 2020 2019 Notes FIXED ASSETS T8ngible assets Scliool land. buildings and equipment 5,659,066 5,523.69 CURRENT ASSETS Debtors Cash at bank and in hand 10 164.521 3.943.345 127,779 4,tN)1,672 4.107.866 4.129,451 CREDITORS: amounts falling due within one year (584.587) (646.191) NET CURRENT ASSETS i.52i279 3,483,260 TOTAL ASSETS LESS CURIiENT LIABILITIES 9,182.345 9.006,950 CREDITORS: amounts fallingdue afier one year (152.501) {149,001) TOTAL NET ASSETS 9,029,844 .857,949 CAPITAL AND RESERVES Unresiricted funds Designated.. School Buildings General funds 13 5,23i.968 3,78i.119 5.114.135 3,738.184 15 9,017,087 8.852,319 Restricted funds 16 12,757 5.630 9.029.844 8,857.949 Approved by the Board of Director5 at its meding on and s]ed below on its behalf by.. W R Moores Director 14
LOCHINVER HOUSE SCHOOL CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020 2020 2019 Cash Ilows from operating activities: Ivel crtsli provided by operaling aciivill 270,591 756,983 Cash fiows from investing activities: Interesi re¢¢ived Payments for tangible fixed assets Proceeds from disposal of fixed asseis 11.226 (340.144) 13.838 (579.816) 2,178 Nel iised In liives¢inz 4Tclivilies (328.918) (563,800) Change in cash the reporting year {58,327) 193,183 Cash At the beginning of the reporting year 4.001,672 3,808.489 Cash at the end of the reporting yegr 3.943.i45 4.001,672 Reeoneillation of net income to net cash flow from operating adivitie5 2020 2019 Ne¢ in¢oJne for the reporting year (as per the $tslement of finanelal activiti) Adjustments for: Depreciation ¢harges Interest received Profit on sale of fixed assets {Increase)/decrease in delmors {Decrease} in creditors 171,895 538,302 204.768 {11,2261 205,145 (13,838) (2.178) 68.575 (39,023) (36,742) (58.104) Net Cash provided by operating getlvities 270,591 756,983 Analysis ofcash and ¢ash equivalents 2020 2019 Cash at bank 3,943,345 4,001,672 Total cash And eash equivalents 3,943,345 4,001,672 15
LOCHINVER HOUSE SCHOOL NOTES TO THE FINAIYCIAL STATEMENTS FOR THE YEAR ENDED31 AUGUST 2020 ACCOUNTING POLICIES The financial siatements have been prewdred ID accordanee with Accounting and Reporting by Charities.. Statement of RecoTnTnended Practice applicable to charili¢s preparing their accounts in accordan¢e with the Financial Reporting Siandard applicable in rhe UK and R¢public of Ireland (FRS1021 (Chariiies SORP 2015 (Second Edition. effcclive l January 2019)). the Financial Reponing Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The functional currency of the sch¢x)l is nSIdered to GBP because ihat is the ¢urreY of the primary econoinic environment in which ihe school operates. The school is a Public Benefii Entity registered as a charity in England and Wales and a company liinited by guardntee (company numr.. 04374254 and chaiity number: 1091045). 8) Basis of Preparthtion The accounis are prepared under the historical COA convention. b) Going concern Having review¢d the funding facilities available io ihe school together with the expected ongoing deimand for places and the school's future projected cash flows. Ihe Governor5 have an expectation ihai ihc school lia5 od¢quat¢ resourees io coniinue lis activities for the foreseeablc fuliirc and coiisider that there weTe no maierial uiicenainties over the hool's financial viabiliiy. Accordingly. Ihcy also continuc to adopt thegoingconcern basis in prcpari118 the financial stateinents as outlined in the Siatemenr of AccountingD aTrd Reporting Respon%ibiliiies on page 12. e) Criile#l Accounting judgement5 key 50urcu 01¢12t10 uncertainty In ihe applicarion of th¢ accounting licIeS. Govcmors are required to make judgcincnt. cstimates, and assumptions about the canying value of asse¢s and liabhlilies ihat are not readily apparent from orher souree5. The estimates and underlying assuinptions are based on historical expcrience and other faciors that are con5ider¢d io be relevani. Aciual results may differ from these esiimaies. The estiinate5 and underlying assumpiions art reviewed on an ongoing basis. Revisions to accounting esrimares are recognised in the year in which rhe estimate is revised if t1 revision affect5 only that year. or in ihe year of the rev15ion and future years if the revision affected curreni and future year5. JudgeEnents made by the Governo in the application of ihvA accounting Frfjlicies thai have significant effect on the rinancial statements and estima1 with a significant risk of marerial adjustment in the next year are deemed to be in relation to the depreciation rares of tsngible fixed assers and are di%ussed below. In the view of ihe Governors, r40 assumpiions concerning ihe futllre or estimaiion uncenainty aff¢¢ting assets or liabilities ai the balan¢¢ sheet dale 41re likely io resuli in a Jnaieiial adjuslinent to their canying amount5 in the next rinancial year. d) Fec5 and Similar Income Fees receivable and other fees are accounied for in the year in which the service is provided. Fees receivable represent fees less bursaries aiid allowances and other incoine derived from Ihe S¢hool's continuing actLVlties. e) Investment income 5nveslin¢nt income from bank balances and flxed interest securiiies is %eounted for on an accnwls basis. 16
LOCHINVER HOUSE SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 ACCOUNTING POLICIES (eontlnued) Q Don#tion& legaci4 grnnts *nd other voluntary intome Voluntary income is accounted for as and when entitlement arises. the amount can be reliably quantified and the economic benefit to the School is considered probable. g) Expenditure Expenditure is atcountcd for on an accruals basis and are allocated to expense headings on a direct e051 basis. The irrecoverdble V AT is included with the item of expense to which il relates. Governance costs comprise costs incuTred in meeting statutory and constitutional requirements of the School. h) Tangible Fixed Assets No depreciation is provided on freehold la1. For all other asset& depreciaiion is calculated to WTite off the cosi of the item overthe anticipated usefitl lifeas follows.. Freehold buildings Fixtures. fittings andequipment Long-lerm fiKtures, fittings and equipment Computer equipment Moior Yehicles 2•A straight line basis 250h slraighi line b&8iS 4Yo siraighi line basis 25%ti siraight line b&%is 25% reducing balance basi5 Iterns Co1n8 less than £1,000 are WTiiten off as an expense as a¢quired. Items are depreciatedonly for six months in the year ofacquisition. i) Pension contributions The company Gontrtbutes to the Teachers. Pension S¢heTDe at rdtes sei by Ihe scheme actuary. It is part of a multi- employer s¢heme and it is not Possible io attribute a value to the scheme assets and liabiliiies which would be appropriate to the company. In accordance with FRS 102 ihe scheme is accounted for as if it were a d¢fined ontribution scheme. The assets of the s¢heme are held separd(ely from those of the company. The pension cost charge represents the amouni of the Contributions payable 10 ihe scheme in respect of the year. Th¢ company also ontributes to personal pension schemes for non-teaching 51aff and these contribution5 are charged to the profit and loss account in the year in which they are incurred. J) Unre$tricted Fund5 Unrestricted Funds are funds applied at ihe discretion of the Governor5 in funhernnce of the objects of ihe school. k) Restricteil funds This presents ihe monies received for s[lf1¢ purposes as disc105ed in noie 16. l) Finaneixl instruments Basic fJnan¢ial instntments are initially recognised at trdnsaction value and subsequenily measured at amortised with the ¢x¢¢ption of invesimenrs which are held at fair value. Financial assets held amonised cost comprise cash at bank and in hand, together with trade and other debtors. A specifie provision is made for debts for which recoverability is in doubr. Cash ai bank and in hand is defined as all cash held in instant access bank account5 and used 8$ working capital. Financial liabilities held at amonised cost comprise all creditors except social 5¢curity and other taxes and provision5. ) Debtors Trnde and other debiors are recognis¢d at the settlemenr amount du¢ after any trade discount offered. Prepayments re valued at ihe amount prepaid nei of any trade discounts due. 17
LOCHINVER HOUSE SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2020 ACCOUNTING POLICIES Icontinued) n) Cash at bank and in hand Cash at bank and c&sh in hand includes cash and shon temi highly liquid investments. o) Creditors and provis10113 Creditors and pmvisions are recOliSed where ihe School has a preseni obligalion resulting from a past ¢v¢nt that will probably result in ihe transfer of funds io a third party and ihe amouni due to settle the obligation can b¢ measured or estimated reliably. Creditors and provisions are norn1]Y recognised at iheir settlemeni ainouiit after allowing for any trade discounts due. 18
LOCHINVER HOUSE SCHOOL NOTES TO THE FINANCIALSTATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST2020 FEES RECEIVABLE Unrestricted funds 2020 Unrestrieted funds 2019 Gross fees Less.. total bursaries and staff concessions 4,486.769 (176,138) 4,784.618 (144.009) Fees Receivable 4,310.631 4,640,609 REGISTRATION FEES AND OTHER INCOME Unrestri¢ted funds 2020 Unrestriet¢d funds 2019 Registration and other fees including initial deposits forfeiled Sundry income Before & After S¢hool clubs and music tuiiion 22.975 28.701 55,708 29,513 33.677 80,248 107,384 143.438 ST AFF COSTS 2020 2019 Staff costs incurred were a5follows= Wages and salaries Social Security costs Other pension costs Other costs 2,554.i71 257,308 444,536 30,766 2,531,217 251,965 338,688 31,531 3,286.981 3.153.401 The average number of employees during the year within each caiegory of persons was: Number Number Teaching Welfare and premises Administration 68 15 69 89 91 The TrUee% received no remuneration. No Irustees We reimbursed expenses durin8 the year (2019: £nil). Aggregate employee benefits of key management personnel 237262 237,967 19
LOCHINVER HOUSE SCHOOL NOTES TO THE FINANCIAL STATEMENfs {coDtinUtd) FOR THE YEAR ENDED31 AUGUST 2020 STAFF COSTS (continued) The number of higher paid employees (including taxable benefits bui excluding employers. pension contributions) to i l August 2020 was-. 2020 Number 2019 Number £60.001- £70,000 £70,001- £80,0 £80,000- £90.000 £90.001- £100,000 £ioo.(101-£i 10.000 The School panicipaie5 in the Teachers, Pension Scheme (-Ihe TPS-) for its teaching staff. The pension charge for the year includes coniriburions payable to the TPS of £336.978 (2019= £266,977) 8]yJ at the year•eiid £Nil (2019 - £Nil) was accrned in resp¢d of ¢Onlbul70nS to this scheme. The TPS is an unfunded multi*mployer defjned nefIts pension scheme governed by The Teachers. Pensions R¢gulaiions 2010 (as amended) and The Teachers. Pension Scheme Regulation5 2014 (as amendcdl. Meinbei onlribute on a "pay as you go" basis with conlributiorts from Inembers and the employer beino crcdited to the Exchequer. R¢tiremeni and other pension benefils art paid by public funds provided by Parliament. The employer contribuiion rale is Sci by ihe Srtrciary of Sthte following scheine valuation5 undertakcn by the Government Aeiuary's DepatThieni. Inosi rccenl aciuarial valuatioD of the TPS was prepared as at J l March 2016 and the Valuation RewL which was published in Marrh 2019, confirmed Iliat the employer coniribuiiimi ratc for the TPS would incrvdse from 16.4•/'O 10 ?i.6y• from I Sepiember 2019. EinployeTS are also required to pay a s¢hem¢ administration levy of 0.080/0 giving a iotsl employer coniribution rdtc of 2i.68Q The 31 March 2016 ValuatioD R¢port wa5 prepared in accordance with the benefils sei OLII ill the scheme regulations and under the approach specifjed in the DitECtions, as they applied at 5 March 2019. However, the a55umptitsns were considered and sei by the Departtnent for Educaiion prior w the n]ling in the 'McCloudlSargeant Case . This case has required the Courts to consider cases regarding the implementation of the 2015 refom15 to Public Service Pensions including the Teachers, Pension5. On 27 Julie 2019 tlie Suprciiie Court denied ilic ¥ovcri)Inent pennission to appeal the Court of Appeal'5 judginenr thai iransiiional provi5Lons introduced io the reformed pension schemes in 2015 gave rise io unlawful age discrimination. The government is respecting ihe Court's decision and ha5 said it will entsage fully wirh the Employmeni Tribunal as well as employer and meimber representaiives to ag¢ how the discriminaiions will be remedied. A consultation was launched by the government on 16 July 2020 and closed io Ttsponses on I l October 2020. The TPS is subject to a cosi cap mechanisin which was put in place to protect taxpayers againsr unforeseen changes in scheme cost5. The Chief Secmary ro the Treasury. having in 2018 announced that there would be a review of Ihis cosi ¢ap mechanism. in January 2019 announced a pause io ihe cost cap mechanism following the Court of Appeal's ruling in the Mccloudlsargeant case and until there is cerrainry about ihe value of pensions TO employe¢5 from April 2015 onwards. The pause was lifted in July 2020 and the govemment is preparing to ¢onipl¢t¢ th¢ cosi conirol el¢tnent of the 2016 valuations, which is expected ro be cornpl¢ted in 2021. In view of the above ruling5 and decisions ihe assumpiions used in the 31 March 2016 Actuarial Valuation may become inappropria(e. In ihis scenario, a Valuation prepared in ac¢ordatLce with revised benefits and suitably revised assumptions would yield differeni results ihan those contained in the Aciuarial Valuation. Until the consultation and the cost tap mechanism review are completed it is not PQS5ible to conclude on any financial impact or fviure changes io the coniribution raies of ihe TPS. Accordingly. no w>vision for any addiiional past benefit pension costs 15 included in ihese financial Statements. 20
LOCHINVER HOUSE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (eontlnu¢d) FOR THE YEAR ENDED 31 AUGUST 2020 EXPENDITURE 2020 2019 Direct charitable expenditure includes: Depreciation 204.768 205,145 Governance costs includ¢= Auditors, remurteration audit non audit Directors liability insurance 10,530 900 2,315 9.585 1,050 2,203 INVESTMENTS INCOME UThre5tri¢ted fund5 2020 Unrestricted funds 2019 Bank interest 11226 13,838
LOCHINVER HOUSE SCHOOL NOTES TO THE FINANCIAL STATEMENTS (eontittued) FOR THE YEAR ENDED 31 AUGUST 2020 ANALYSIS OFTOTAL EXPENDITURE Staff Costs Tot41 2020 Other Deprttiatio Charitable activiti School Operating C05ts'. Teaching W¢lfare Premises and equipment Support and governance costs Head Boys, charitable donaiioJL% 2.730,082 96.567 118,960 341.372 217.999 81,422 390,688 145,042 2.948.081 177.989 714.416 486.414 204,768 3286.981 835.151 204,768 4.326.900 ANALYSIS OFTOTAL EXPENDITURE (Prior Year) Ye&r-endtd Totsl 2019 Stgff osls Other Depreciation Charitable aetivities S¢hool Operating Costs- Teaching Welfare Premises and equipment Support and gov¢mance costs Head Boys. clroTiiabl¢ donations ?.622.611 97.454 103.576 329.760 277,607 90,574 384.048 166.575 14,9)8 2,900,218 188,028 692.769 496.335 14,938 205,145 3.15i.401 933.742 205,145 4,292.288 PENSION COMMITMEKrs Staff costs include payttLen15 by the company to the Teachers. Pensions Scheme of 3&9?8 (2019- £266,977) and to an individual defined coniribuiion scheme on behalf of certain employees of £71,710 {2019: £71,584). The amount ouisianding at the y¢or-¢nd w&$ £Nil (2019: £Nil).
LOCHINVER HOUSE SCHOOL NOTES TO THE FINANCIAL sTATEMET5 (eontinued) FOR THE YEAR ENDED 31 AUGUST 2020 TANGIBLE FIXED ASSETS Fixture5 Fittings & Equipment Freehold Land Frtthold Buildings Computer Equipment Motor Vehicle5 Total Cost Ai I September 2019 Additions Disposals 425,806 6.182.145 248.445 413,494 19,792 (4,449) 404,272 47.763 (1,898) 99,971 24,144 7,525.688 340.144 16,347) At 31 August 202 425.806 6.430,5 428.837 450,137 124.115 7,859,485 Depreciation At I September 2019 Charge for the year Disposals 1,493,816 128,612 148,596 35,4(Xl (4,449) 282,030 29,IlS (1.898) 77.556 11.641 2,001.998 204,768 (6,347) At 31 August 2020 1.622.428 179,547 309.247 89,197 2.200.419 Nel Book Value At 31 August 2020 425.806 4,808.162 249290 140,890 34.918 5.659,066 At31 August2019 425,806 4.688,329 264.898 122242 22,415 5,523,690 The above assets include those acquired from Lochinver House S¢hool TTUSI on J l March 2002 for £2.985,449 being rhe net book value to the Trust at the date of transfer. The land and buildings were originally acquired by that Trust in 1957 when the School wa5 founded by Trus¢ Deed and sirKe that dale. various improvements and extensions had beert made to the buildings. The remainder of the a55ets have been acquired sin¢e ihe company was incorporated and are stated at Cost les5 depreciation. 10. DEBTORS 2020 2019 Fees receivable Other debtors and prepayments 10.040 154,481 21.203 106,576 164,521 127.779 I I. CREDITORS: amounts falling due wlthln one year 2020 2019 Fees in advance and initial deposits Trade creditors Other creditors and accruals 365,253 78,915 140.419 459,046 68,213 118.932 584.587 646,191 12. CREDITORS: aTnounts falling du¢ *fttr more than one ye8r 2020 2019 Long term d¢poslt5 held 152,501 149.001 23
LOCHIIYVER HOUSE SCHOOL NOTES TO THE FINANCIAL sfATEMENTS (eontinued) FOR THE YEAR ENDED31 AUGUST21120 13. MOVEMENT IN FUNDS Balance at I SeptembeT 2019 Balance at 31 August 2020 Trnnsfer tol (from) fund Intome ExpendItre Unre5trieted funds S¢hool Buildings fund Othcr reserves 5,114,135 3.738,184 119,833 (119,8331 5.233,968 3.783,119 4,491,668 (4.326,900) 8.852.)19 4.491.668 (4.326,900) 9,017,087 Restricted funds 7,127 12.757 MOVEMENT IN FUNDS (Prior Ye3r) B4lan¢e at I September 2017 Ba]ance at 31 August 2019 Transfer tol (from) fund Income Expenditur¢ Unrestricted funds School Buildings fund Other reserves 4.850.323 3.465.794 263,812 (259,506) 5.114.135 3,7i8,184 4,809.052 (4,277,156) 8.316.117 4,809,052 (4.277,156) 4,i06 8.852.319 Restricted fund5 3.530 21.538 (15,132) (4.306) 5,630 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS 20211 Total Unresirided Restricted Fixed assets Debiors Cash a( bank and in hand Creditors 5.659,066 164,521 3.930,588 1737,088) 5,659,066 164.521 3.943.345 (737.0881 12,757 9,017.087 12.757 9,029,844 ANALYSIS OF NET ASSETS BETWEEN FUNDS (Prior Yearl 2019 Total Unrestricted RLStricted Fixedasseis Debiors Cash ai bank and in hand Creditors 5.523.69) 127.779 3,996.042 (795.192) 5,523,69) 127.779 4,(K)1,672 (795,192) 5.630 ,852.319 5,630 8,857,949 24
LOCHINVER HOUSE SCHOOL r40TES TO THE FINANCIAL STATEMENTS (contlDued) VOR THE YEAR Ef4DED 31 AUGUST 2020 15. UNRESTRICTED FUNDS The company's unresiricted funds represent iwo iypes of fund. The designated -school Building5" of £5,23),96812019- £5.114,1 J5} represents unrestricted fund5 retained to finance the freehold property of the School. The balance of the general funds of £i.78i.119 (2019.. £).7)8.184) represents free reserves of £3,358.02] (2019: kn,328.629) to cover nomial fluetuaiions in working capital and to finance the continuing development of the School and the remaining £425,09812019= £409,555) represents the value of other fixed a55eis. 16. RESTRICTED FUNDS Th¢ r¢stricted funds of £12.757 (2019: £5.6)0) relaie to monies held by ihe School on behalf of pupils for external charitable PUTposes and the ski fund. Transfers from Tes¢ricied funds have been made to reflect the assets funded frotn restricted donations becoming unresiri¢ted upon purchase. 17. CAPITAL COMMITMENTS The Headmaster, together wilh the Directors. continues to implemeni the Development Plan for the School. The Direthors have authorised expenditure of £Nil (2019.. £91 k) in respect of information technology and £Nil {2019= £645k) primarily in respeci of alterati0115 to the S¢hool's buildings. I& FINANCIALCOMMITMENTS At 31 August 2020 the tharity no annual commitments under non<ancellable operating leases. 19. TRANSAcfioNS WITH RELATED PARTIES During the yearthe company paid forihe Director5, liabiliry insurdnce. The ¢ost ofthe premium is included withtii Ihe io(al ¢051 of insurance and amounted 10 £2,315 (2019.. £2.303). There were no oiher reloied party transxtions during the year. 20. LIABILITY OF MEMBERS The company is limited by guaraniee and as such each member has guaranteed io conrribuie a sum not exceeding £1 O io the assets of the company in the event of it being wound up and unable to pay its debts. 25
LOCHINVER HOUSE SCHOOL NOTES TO THE FINANCIAL STATEMENfs (continued) FOR THE YEAR ENDED31 AUGUST 2020 21. FIP4ANCIAL INSTRUMENTS 2020 2019 Fin8n¢ial assets measured at amortised costs (a) 10.040 28,028 Cash held (b) 3,943,345 4,001,672 Financial liabilities ai amortised costs (c) 737,088 795,192 (a) Financi81 assets in¢lude trod¢ debtors fee debto]5 and her debroJ3. Ib) Cash held (¢) Financial liabilities include deposits. fees in advance. trade creditor& accruals and other creditors 26