2020-08-31-accounts

Directors				R Shah (1,2)	R Shah (1,2)	(Chair, appointed 6 November 2019,	(Chair, appointed 6 November 2019,	(Chair, appointed 6 November 2019,	(Chair, appointed 6 November 2019,	(Chair, appointed 6 November 2019,
						resigned 24 June 2020)
				E Baines (1,3)
				G Ball		(resigned 18 May 2020)
				N Bottley
				G Carr S Gillingham		(resigned 6 November 2019) (3*)
				N Gower		(resigned 6 November 2019)
				M Heath	(2*)
				A Khawaja
				B Leigh (3)		(appointed	27 July 2020)
				N Masom F O' Sullivan		(appointed 1 February 2021) (resigned 8June 2020)
				J Palmer		(resigned 24 September		2020)
				C Povey
				J Raca MBE
				D Sanders	(1,2,3)(Chair, effective 24 June			2020)
				D Shipley (1*,2)
				C Smale
				TWilkins (3)		(appointed	6 November 2019)
				(1) Member	ofGovernance Committee
				(2) Member	ofAudit & Finance Committee
				(3) Member of Transformation Project Steering Group *Chair of relevant Board sub-committee
Chief Executive Officer			& Principal	J McCall
Executive Leadership		Team		M Ascroft		Director of	Finance & Strategy
				K Duggan		Director of	Service Development
						(appointed	1 January 2021)
				Z Ensor		Director of	Communications		&
						Community	Engagement	(appointed		25
						January 2021)
				N Giles		Director of	People &Workplace
				J McCaffrey		Director of	Care Services
				BWhite		Director of	Education
Address	and Registered		Office	Stanley Road
				Cheadle Hulme
				Cheadle
				Cheshire SK8		6RQ

CHARITY A	DIIINISTR	A	TION
Bankers				Royal Bank of Scotland			pic
				St Ann's Square	Branch, PO Box320
				St Ann Street
				Manchester M60		2SS
				Barclays Bank pic
				Corporate Banking
				Level 11,20 Chapel Street
				Liverpool
				L3 9AG
Auditors				Mazars LLP
				One St Peter's	Square
				Manchester
				M2 3DE
Solicitors				Eversheds Sutherland			LLP
				70 Bridgewater	Street
				Manchester
				M1 5ES
				Veale Wasbrough		Vizards		LLP
				Narrow Quay House
				Narrow Quay
				Bristol
				BS14QA
				Slater Heelis LLP
				Suite 2 Oakland		House
				34Washway Road
				Sale
				Cheshire
				M33 6FS
Investment	Advisers			Castlefield Investment			Partners		LLP
				1 Portland Street
				Manchester
				M1 3BE
Company	Registration		Number	04216714
Charity Registration		Number		1092655

SEASHELL	TRUST
CONTENTS						Page
Directors' report, including Directors' Strategic				Report
Statement of	Directors'	duties	in performance	ofS172(1)Companies	Act	18
Statement of	Directors'	responsibilities				20
Independent	auditor's	report				21
Statement of	financial	activities				24
Balance sheet						25
Statement of	cash flows					26
Notes to the	financial	statements				28

t the end ofthe year, the n	umbers ofstudents and residen	ts on roll were as follows:
		2020	2019
Royal School Manchester Royal College Manchester		47 68	52 70
Childrens Residential Care	Services	17	16
Young Adult Residential Care Services		32	32

							Risk Management	Risk Management	Risk Management	Risk Management
The identification			of		risk		is delegated to the Executive Team and the Chief Executive 8 Principal who
report risk	management						to the		Directors for their oversight, review and approval at Board Meetings.
The most the Trust	significant risks identified in the current year and how these risks are managed by are as follows:
Key Risk										How this risk is managed
A serious		safeguarding						incident		The Trust places the greatest ofimportance to its obligations to ensure
occurs or is		reported		which				causes		the safety and well-being of the children and young people under its
significant	reputational					damage			to	care. However, the Directors recognise that the controls and
the Trust,	potentially				impacting				on	procedures that we have in place to monitor and manage this risk, can
the willingness of Local						Authorities				be effective in reducing this risk, but cannot completely eliminate it.
to place children			and		young			people		These key controls and procedures include:
at the Trust.
										~ We have a dedicated Safeguarding Board, including external,
										independent representation;
										~ We have a Trust-wide role of Safeguarding Officer;
										~ The Trust has a well-established safeguarding policy,
										practices and reporting systems which are reviewed
										continually;
										~ Progressive and developmental safeguarding training and
										development for all staff;
										~ Liaison with External Safeguarding bodies for best practice
										initiatives and monitoring;
										~ Procuring appropriate levels of insurance cover to mitigate
										against any financial risk that the Trust could be exposed to in
										the event of any allegations or claims;
										~ External reviews of our safeguarding practices and
										procedures and;
										~ Obtaining expert legal advice and counsel where considered
										appropriate.
Continuing			changes						in	The Trust actively maintains close and positive relationships with the
government		policy,			which			could		education, health and care teams within its principal Local Authorities,
result in reduced			funding					levels,		to understand the drivers impacting on their placement behaviour.
additional regulatory requirements and additional costs, despite underlying demand for the Trust's										We have undertaken a full review of our fee structure which has allowed for greater alignment with the true costs of the service
services increasing.										provision. Following extensive consultation with Local Authorities and funding bodies, this has resulted in a step-change increase in fees
										effective September 2021 with further increases planned for future
										years. This will provide a more secure and viable financial platform for
										the Trust going forward.
										In addition, the Trust has developed strong links nationally with sector
										organisations such as NASS, NATSPEC, CDC and NNPCF as well as
										close working relationships with the Department for Education.

Key Risk	How this risk is managed
The inability to recruit and retain	We have continued to implement our 'People Strategy', which sets out
staff with the requisite skills to	a comprehensive and overarching plan to address issues associated
meet the increasingly complex	with staff recruitment, retention, reward, performance and well-being.
needs of our students. This poses	This has included a number of initiatives such as:
a significant challenge to the Trust, that if not adequately addressed	~ Extending the number and scope of our management training
could result in staffing shortfalls,	programmes;
reductions in the quality of care that the Trust provides, and/ or additional costs in addressing staffing shortfalls by the use of	~ Conducted the Job Evaluation Review, including benchmarking salaries against external data, and began a phased implementation ofthe results of this review;
higher-cost agency workers.	~ Provided additional resourcing to the central recruitment team
	and streamlined recruitment processes and actions to
	increase the effectiveness of recruitment activity;
	~ Continuation of recruitment activities beyond the required
	staffing complement for key roles in order to create a staffing
	"buffer" to mitigate the impact of staff absences and
	resignations.
The Trust is reliant on the delivery	Project Transformation has now moved into its implementation stage
ofthe Site redevelopment in order	following the receipt of planning consent in April 2020.
to continue to provide its on-site based activities in the medium	The Directors closely monitor the progress ofthe various elements of
term. Delays and errors in	the project at each Board Meeting.
delivering the redevelopment will adversely impact the Trust's ability to achieve its aims and objectives.	The day-to-day aspects ofProject Transformation are considered and managed by a new sub-committee of the board the "Transformation Project Steering Group", which comprises a number of Trustees,
	members of the Executive, relevant Heads of Service and Specialist
	Advisors.
	This group meets monthly, with relevant input from appropriate
	professional advisors. This group reports to the Board of Directors at
	each Board Meeting and more frequently when required.

Key	risk	risk					How this risk is managed
The	Covid19 pandemic				continues		Since the emergence ofCovid19 in early 2020 the		Trust	has	operated
for	a	lengthy	period		of	time,	a robust framework to manage the multiple	risks	that	the pandemic
resulting		in continued		requirement			presents. Two extraordinary Board Meetings	have been held				during
for changes in working					practices		the year to specifically review and assess the	Trust's response				to the
and	curtailment			of	services		pandemic and this remains an item that is reviewed at			each ordinary
provided		by the Trust.					Board Meeting.
							A "Health Business Continuity Group" consisting of all members					ofthe
							Executive Leadership Team, the Lead Nurse	and	relevant		Heads of
							Service has been formed and meets at least	weekly (initially			daily) to
							develop and review the Trust's response	and	latest	Government
							guidance and requirements.
							Key elements of this response includes:
							~ implementation of robust infection control	measures		across		Site;
							~ Regular communications to all stakeholders		(staff,		families,
							placing authorities, public health);
							~ Redeployment ofstaff across services;
							~ Individualised Covid risk assessments for	each	student;
							~ Minimising on-site activities and movement;
							~ Engagement with sector bodies to ensure	our	response		is	in line
							with that of similar organisations;
							~ Obtaining expert legal, health and insurance advice			and	counsel
							where considered appropriate;
							~ Continual review and update of financial forecasts.

					Un-		Endow-
					Restricted	Restricted	ment	2020	2019
					Funds	Funds	Funds	Total	Total
				Note	2'000	F'000	F'000	E'000	2'000
INCOME FROM:
Donations and legacies					358	71		429	822
Charitable activities					15,138	292		15,430	14,853
Other trading activities					154			154	385
Investments					10			10	26
Other income —profit		on
disposal of endowment			land	4			3,087	3,087
Total Income					15,660	363	3,087	19,110	16,086
EXPENDITURE ON:
Raising funds					(412)			(412)	(466)
Charitable activities					(16,280)	(302)		(16,582)	(16,655)
Other					(70)			(70)	(98)
Total Expenditure					(16,762)	(302)		(17,064)	(17,219)
Net (losses) on investments					(22)			(22)	(18)
Net (expenditure)l	income			4	(1,124)	61	3,087	2,024	(1,151)
Transfers between		funds			1,239	(84)	(1,115)
Net movement in	funds				115	(23)	1,932	2,024	(1,151)
Balances brought	forward				2,436	852	14,464	17,752	18,903
Balances carried	forward				2,551	829	16,396	19,776	17,752

							2020	2019
						Note	P'000	E'000
Fixed assets
Tangible fixed assets							14,139	14,922
Investments							249	987
							14,388	15,909
Current assets
Debtors							3,148	3,934
Cash at bank		and	in	hand			4,683	844
							7,831	4,778
Creditors:	amounts			falling due within	one year		(2,443)	(2,935)
Net current	assets						5,388	1,843
Total assets		less	current liabilities		and net
assets							19,776	17,752
Endowment		funds					16,396	14,464
Restricted	funds					12	829	852
Unrestricted		funds
Designated	funds					13	550	550
Unrestricted	funds					13	2,001	1,886
Total funds							19,776	17,752

or the year ended 31Au	gust 2020
		2020	2019
		E'000	E'000
Cash flow from operating	activities
Net income/(expenditure)		2,024	(1,151)
Depreciation		920	841
Losses on investments		22	18
Investment income		(7)	(19)
Gain on sale offixed assets		(3,088)	(3)
Decrease/(increase) in debtors		779	(2,005)
(Decrease)/increase in creditors		(322)	1,617
Net cash inflow/(outflow)	from operating
activities		328	(702)
Cashflows from investing	activities
Purchase of buildings and	other fixed assets	(484)	(1,666)
Proceeds on sale offixed	assets	3,268	3
Purchase of investments			(64)
Proceeds from sale of investments		717	767
Investment income received		7	19
Bank interest received		3	8
		3,511	(933)
Net increase/(decrease)	in cash before
financing		3,839	(1,635)
Net increase/(decrease)	in cash &cash
equivalents		3,839	(1,635)
Cash at bank and in hand
Balance at beginning ofyear		844	2,479
Balance at end ofyear		4,683	844
Increase/(decrease) in cash in the year		3,839	(1,635)

					2020		2019
					E'000		F'000
Reconciliation of		net cash flow to
movements	in net funds
Increase/(decrease)			in cash in the year		3,839		(1,635)
Movement	in net	funds		in the year	3,839		(1,635)
Balance at	beginning		of year		844		2,479
Net funds	at end	ofyear			4,683		844
Analysis of net funds
Cash at bank and		in	hand		4,683		844
Total					4,683		844
Analysis of	net debt
						Increase
					As at1	in Cash	As at 31
					September	in the	August
					2019	year	2020
					F'000	2'0000	E'0000
Cash at bank and		in	hand		844	3,839	4,683
Total					844	3,839	4,683

. Analysis of P	rior Year	Statemen	t of Financial	Activities
			Un-		Endow-
			Restricted	Restricted	ment	2019
			Funds	Funds	Funds	Total
		Note	f'000	E'000	E'000	E'000
INCOME FROM:
Donations and legacies			701	121		822
Charitable activities			14,353	500		14,853
Other trading activities			385			385
Investments			26			26
Total Income			15,465	621		16,086
EXPENDITURE ON:
Raising funds			(466)			(466)
Charitable activities			(16,229)	(426)		(16,655)
Other			(98)			(98)
Total Expenditure			(16,793)	(426)		(17,219)
Net gains on investments			(18)			(18)
Net (expenditure)l	income	4	(1,346)	195		(1,151)
Transfers between	funds		(715)	(334)	1,049
Net movement in	funds		(2,061)	(139)	1,049	(1,151)
Balances brought	forward		4,497	991	13,415	18,903
Balances carried	forward		2,436	852	14,464	17,752

For the year ended 31August 2020	For the year ended 31August 2020	For the year ended 31August 2020
3. ANALYSIS OF EXPENDITURE
(a)	Analysis	oftotal expenditure:
					Other
			Staff	Support	direct	2020	2019
			costs	costs	costs	Total	Total
			E'000	E'000	E'000	E'000	E'000
Unrestricted funds
Expenditure	on raising funds		268	92	52	412	466
Expenditure	on Charitable
activities			12,335	1,675	2,270	16,280	16,229
Other expenditure					70	70	98
Total unrestricted
expenditure			12,603	1,767	2,392	16,762	16,793
Restricted	funds
Charitable	activities				254	302	426
Total restricted expenditure			48		254	302	426
Total expenditure			12,651	1,767	2,646	17,064	17,219

NO For	TES TO THE FINANCIAL STATEIIEN the year ended 31August 2020	TES TO THE FINANCIAL STATEIIEN the year ended 31August 2020	TS
5.	EMPLOYMENT COSTS
			2020	2019
			E'000	E'000
	Wages	and salaries	11,135	11,410
	Social security costs		881	885
	Pension	contributions	635	518
			12,651	12,813

2020	2019
Number	Number

. FIXEDASSETS
		Sports
		pitch,
		Sports hall,			Assets under
	Freehold	Hydro 8			Construction
	land 8	Swimming	Motor	Fixtures 8
	buildings	pool	vehicles	equipment		Total
	E'000	E'000	E'000	E'000	E'000	E'000
Cost
At 1 September
2019	14,757	2,151	350	2,635	2,992	22,885
Additions		23	114	29	152	318
Disposals	(1)		(14)		(180)	(195)
Transfers
At 31 August 2020	14,756	2,174	450	2,664	2,964	23,008
Depreciation
At 1 September
2019	4,373	1,065	305	2,220		7,963
Charge for the year	514	92	60	254		920
Disposals			(14)			(14)
At 31 August 2020	4,887	1,157	351	2,474		8,869
Net book value
At 31 August 2020	9,869	1,017	99	190	2,964	14,139
At 31 August 2019	10,384	1,086	45	415	2,992	14,922

		Listed
		investments
		E'000
At 1 September 2019		987
Additions
Disposal proceeds		(717)
Revaluation	gains - realised	103
Revaluation	gains —unrealised	(124)
At 31 August	2020	249
Historic cost		245

					Market
				Units	Value
					E'000
Castlefield	Managed	Multi-asset	Fund	108,150	249

EBTORS
	2020	2019
	F'000	f'000
Fees	2,716	3,419
Accrued income	265	282
Other debtors and prepayments	167	233
	3,148	3,934

REDITO	RS: amounts falling due within on	e year
		2020	2019
		E'000	2'000
Trade creditors		269	485
Taxation	and Social Security	209	231
Deferred	income	1,526	1,527
Other creditors and accruals		439	692
		2,443	2,935
		2020	2019
Deferred	income:	E'000	E'000
Balance	at 1 September	1,527	173
Amount	released to income	(1,527)	(173)
Amount	deferred in year	1,526	1,527
Balance	at 31 August	1,526	1,527

		Tangible		Net
		fixed		current
As at31 August 2020		assets	Investments	assets	Total
		2'000	F'000	E'000	E'000
Endowment	funds	13,850		2,546	16,396
Restricted	funds			829	829
Unrestricted	funds	289	249	1,463	2,001
Unrestricted	designated			550	550
Total net assets		14,139	249	5,388	19,776
		Tangible		Net
		fixed		current
As at 31August 2019		assets	Investments	assets	Total
		E'000	2'000	2'000	2'000
Endowment	funds	14,464			14,464
Restricted	funds			852	852
Unrestricted	funds	458	987	441	1,886
Unrestricted	designated			550	550
Total net assets		14,922	987	1,843	17,752

				Balance at 1				Balance at
				September				31 August
				2019	Income	Expense	Transfers	2020
				f'000	E'000	E'000	E'000	E'000
Royal	Schools	for	the
Deaf
Endowment				14,464	3,087		(1,155)	16,396
				14,464	3,087		(1,155)	16,396
				Balance at 1				Balance at
				September				31 August
				2018	Income	Expense	Transfers	2019
				E'000	E'000	E'000	E'000	E'000
Royal	Schools	for	the
Deaf
Endowment				13,415			1,049	14,464
				13,415			1,049	14,464

				At 1				At 31
				September				August
				2019	Income	Expenditure	Transfers	2020
				E'000	E'000	E'000	f'000	E'000
CADS™					88	(62)		26
Care —Christmas			and		35	(33)		2
holiday
New Mini Bus				54			(54)
Stay 8	Play			14		(2)		12
Tele-Practice		Project		33		(18)		15
Transforming		Lives
Appeal	Phase	2		494				494
Sundry	Funds			257	240	(187)	(30)	280
				852	363	(302)	(84)	829

		At 1				At 31
		September				August
		2018	Income	Expenditure	Transfers	2019
		E'000	2'000	2'000	2'000	E'000
CADS™		51	45	(104)	8
New Mini Bus			54			54
Stay 8 Play				(9)		14
Stoller CT Short
Breaks		9		(9)
Summer House		17		(31)	14
Tele-Practice	Project	48		(15)		33
Transforming	Lives
Appeal Phase	2	638	236	(32)	(348)	494
Sundry Funds		205	286	(226)	(8)	257
		991	621	(426)	(334)	852

13. UNRESTRI	CTED FUNDS
	Balance at					Balance
	1				Investment	at
	September				(losses)	31 August
	2019	Income	Expenditure	Transfers	gains	2020
	E'000	E'000	E'000	E'000	f.'000	E'000
Designated
Strategy
Development	550					550
Unrestricted
funds	1,886	15,660	(16,762)	1,239	(22)	2,001
	2,436	15,660	(16,762)	1,239	(22)	2,551
	Balance at					Balance
	1					at
	September				Investment	31 August
	2018	Income	Expenditure	Transfers	gains	2019
	E'000	E'000	E'000	E'000	E'000	E'000
Designated
Strategy
Development	'l,9'I7	550		(1,917)		550
Unrestricted
funds	2,580	14,915	(16,793)	1,202	(18)	1,886
	4,497	15,465	(16,793)	(715)	(18)	2,436

31 August	2020,	total commitments under non-	cancellable operating leases are as	follows:
			Other
Amounts	payable	within	2020	2019
			E'000	E'000
Less than	1 year		15	15
Two to five years			33	48