## Annual Report and Accounts For the Year Ended 31 August 2020
## **Treloar Trust**
## **Contact**
Powell Drive, Holybourne, Alton, Hampshire GU34 4GL
A company limited by guarantee. Registered in England No. 4466362 Charity number 1092857
T: 01420 547400 E: info@treloar.org.uk W: www.treloar.org.uk
## Contents
|**4 / 5**|**OUR ROYAL PATRON / WELCOME**|
|---|---|
|**6 / 7**|**STUDENT WELCOME / ABOUT TRELOAR'S**|
|**8 / 9**
**10 / 11**
**12 / 13**
**14 / 15**|**OUTSTANDING PROVISION**
**STUDENT ACHIEVEMENTS**
**WORKING THROUGH LOCKDOWN**
**THANKS TO OUR DONORS AND SUPPORTERS**|
|**16 / 17**|**MAKING A DIFFERENCE**|
|**18 / 19**|**TRANSITION TO ADULT LIVING**|
|**20 / 21**|**ENTERPRISE AND EXPERTISE**|
|**22**|**OUTWARD FOCUS**|
|**23**|**THANK YOU TO OUR VOLUNTEERS**|
|**24 / 27**|**STRATEGIC REPORT**|
|**28 / 32**|**KEY POLICIES**|
|**33**|**OFFICERS AND PROFESSIONAL ADVISERS**|
|**34 / 37**|**INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF TRELOAR TRUST**|
|**38**|**STATEMENT OF FINANCIAL ACTIVITIES**|
|**39**|**BALANCE SHEET**|
|**40**|**CASHFLOW STATEMENT**|
|**41 / 57**|**NOTES TO THE FINANCIAL STATEMENTS**|
|**58**|**THANK YOU**|
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Our Royal Patron HRH The Countess of Wessex GCVO
## Welcome
This last year has been extraordinary for everyone. Whilst for many 2020 will be remembered as much for what couldn’t happen as life was put on hold, that was not the case at Treloar’s. The defining ethos at Treloar’s is enablement.
_**I am always so impressed with the work of Treloar’s and never more so than now. You have stepped up and coped with what has been hurled at us all out of the blue. Families must be so pleased and grateful their children are lucky enough to go to Treloar’s. Your COVID-19 response makes me even prouder to be part of Treloar’s.**_
**HRH The Countess of Wessex GCVO**
Our staff and students are used to finding obstacles in their way, but these are never a signal to stop and to turn round, but rather something to overcome or circumvent and COVID-19 was just one such obstacle. However serious it may be, COVID-19 is none-the-less just one more obstacle put in the way of our students that needs our staff’s professionalism, dedication, ingenuity and kindness to overcome.
So in these pages you won’t find excuses for what we couldn’t do, but instead a record of what we have achieved and how we have achieved it in spite of everything. We are proud that we have kept our students safe whilst continuing to function without interruption throughout the crises. For some of our young learners Treloar’s is home anyway, whilst others came in regularly for support and those who couldn’t come in were supported at home in person and/or with on-line education, therapies and other activities. Treloar’s is the most fantastic place where education and learning work alongside world-class therapy and care. The right support can be life changing, each of our students follows a bespoke learning programme with personalised therapy and care. We are enormously grateful to our highly trained staff that help our children and young people make choices and deliver their individual aspirations. For some that will be moving on to independent living settings and for others, that will be progressing to Further Education and employment. We are proud to be one of the best providers in the country with Ofsted “outstanding” ratings in School Education, School Residential and College Education and a CQC “outstanding” for our care and College residential provision.
As a charity we rely on the support of individuals and organisations who generously donate their time and money to enable our students to access the specialist staff, equipment and experience they need to grow in confidence and live a fulfilled life. In today’s disrupted times that support has never been more valued and our services never more in demand. In 2020/21 we will be finishing a new accessible Outdoor Learning Centre, adding a new dining room and starting work on a new key worker accommodation block – thank you to everybody who has helped us raise funds for these much needed facilities and indeed all our other projects. Sadly we can’t yet invite visitors back on to campus, we look forward to seeing you very soon!
**Alistair Mackintosh, Chair of Trustees (right) and Simon Birch, Interim CEO (left)**
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## Student Welcome
Treloar’s is one of the UK’s leading centres of excellence for children and young people with complex physical disabilities.
## Welcome from our Head Girl Sophie, our Head Boy Sherwin and our Student Governor Toby
_For me, Treloar’s is like a home where you learn._
_Everyone understands each other and nobody gets bullied, as we all know how everybody is feeling inside. Treloar’s has given me so many opportunities, such as boccia and singing._ **Sophie (Head Girl)**
_The best thing about Treloar’s is the sense of community. Treloar’s gives me the confidence to just be me. My favourite places are my room and the Tech Hub, where I can use the computers, library, Scalextric track and robotic arm! The teachers here are adaptable and relatable._
_My goal in life is to be remembered for creating great video games like the Japanese designer ‘Hideo Kojima’._ **Sherwin (Head Boy)**
_The things that I like about Treloar’s is that all the staff are very nice and helpful._
_There are lots of activities to do at Treloar’s alongside your learning programme, like boccia and Duke of Edinburgh awards. It is a good place to make friends._
_Since I have been at Treloar’s I have become more independent and got better at looking after myself._ **Toby (Student Governor)**
## **ABOUT TRELOAR'S**
**SPECIALIST ENVIRONMENT**
**COMPLEX DISABILITIES**
We offer outstanding teaching, learning, professional care, therapy, advice and guidance so that every individual can live, learn, achieve and work towards a future that is as independent as possible.
Treloar School and College offers around 170 students, aged 2 to 25 years, a specialist environment where education and learning take place alongside therapy and care.
Having a health centre on site enables our students to access education without needing to take long periods of time out of lessons in order to attend off-site clinics. This holistic approach sees the teachers, support and care staff, therapists, medical staff, dietitians, visual impairment advisers, counsellors, transition staff, assistive technology technicians and engineers working as one team to support young people as they move through education and into adult life.
Our students are physically disabled and most have very complex needs which cannot be met in mainstream settings. Many of the young people we help require support throughout the day and night - over half of our students stay in one of our five residential houses.
- 98% of our students are wheelchair users
- 40% of our students are non-verbal or require support from communication aids
- 18% of our students have a visual impairment
- 8% of our students have a life-limiting condition.
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## Outstanding Provision
Ofsted and the Care Quality Commission (CQC) have confirmed Treloar’s as one of the very best providers in the country with ‘Ofsted Outstanding’ ratings in the School and College, and ‘CQC Outstanding’ ratings for Treloar’s care and residential provision. Nationally, only 4% in 2019 of providers are rated by CQC as ‘Outstanding’.
**JAMIE TABITHA**
_"Children make exceptional progress as a result of spending time in the residential provision. They thrive because of the trusting relationships that they have with staff. They feel understood and cared for by staff who know them well and who are sensitive to their needs."_ **OFSTED Residential inspection 2020**
_"Pupils benefit from well-coordinated support from staff and external agencies. Consequently, they make exceptional progress with communication and learning. Staff involved in pupils’ care, support and education leave no stone unturned to find innovative ways in which pupils can participate."_ **OFSTED Residential inspection 2020**
_**"My child’s progress has been amazing… her independence and ability to choose**_ **Parent** _**has really grown, as has her confidence and interaction with others."**_
_"This is an incredible school. The care my son receives is exceptional and has proved life changing."_ **Parent**
_"I just wanted to say thank you to Treloar for the wonderful support you have given Josh (and our family) through the COVID-19 pandemic. Justine and her staff have been excellent in providing the best support they could during what must have been a difficult time for all staff. I thank my lucky stars every day that Josh is at Treloar's!"_
College School Residential School Healthy College 'Outstanding' 'Outstanding' 'Outstanding' Schools 'Outstanding'
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## Student Achievements
## within and beyond the classroom
**OVERCOMING THE CHALLENGES OF 2019 / 20**
Treloar’s continued to deliver high quality education, therapy and care and to support students and their families throughout the initial phase of the Pandemic.
In March the majority of our students were identified as clinically vulnerable. Most isolated at home, but for a number of students this was not possible and they remained in their residential house at Treloar’s. We quickly established our remote learning package for all students, which required a shift to the online delivery of lessons and therapy. The scope of the provision was astonishing with everything from whole school assemblies to individual counselling sessions and dietetic assessments being delivered remotely.
Drivers toured the country delivering equipment, and in some cases, supplies to students. In many cases, our therapists visited homes to deliver therapy directly to students and where need was greatest, care staff were deployed to homes, including overnight, to ensure that students’ needs were being met.
We also organised regular social events for students to encourage them to keep in touch with their peers.
Despite a challenging year our students have achieved an enormous amount with a mixture of remote and onsite learning, both in the classroom and beyond. Much of their planned learning programmes have been disrupted.
Of the thirteen school (Key Stage 4 & 5) leavers in July 2019 , nine moved on from Treloar School to Treloar College. Of the four who have moved on elsewhere, three moved to residential accommodation at another specialist education college, and another has moved to residential accommodation at a Performing Arts Specialist College (Orpheus). The significant majority of students met or exceeded their expected progress in their IEP Skills domains, linked to their EHCP outcomes.
**OUTCOMES FOR SCHOOL**
- 100% success rate at Entry Level 1, 2 & 3
- 100% success rate at Entry Level 2.
For July 2019 leavers at their 9 month follow up - 70% achieved their planned destination, with a further 9% achieving an appropriate alternative and a further 9% partially achieving their plan – which given the COVID-19 situation is an outstanding success. The significant majority of students met or exceeded their expected progress in their ILP Skills domains, linked to their EHCP outcomes.
**OUTCOMES FOR COLLEGE**
- 93% success rate at Entry 1
- 100% success rate at Entry 2
- 100% success rate at Entry 3
- 89% success rate at Level 1
• 100% success rate at Level 2
- 93% success rate at Level 3.
Four alumni have been successful in gaining employment. One in paid employment and one selling items through a social enterprise set up during her time at Treloar’s. Two more secured paid apprenticeships with the DWP.
## **WORK EXPERIENCE**
Four of our July 2019 leavers are now studying at the following universities – Cardiff, Keele, Chichester and Southampton Solent.
**UNIVERSITY**
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## Working through Lockdown
## sharing memories and stories from lockdown
**EMILY**
**KERRY**
**LEANNE AND NATHAN**
## **Lockdown testimonials from parents.**
_Thank you for all you are doing to keep our vulnerable young adults safe and well. We are extremely grateful. We have recently had very positive and uplifting reports from D’s class teacher telling us how much therapy, exercise and stimulation (including outdoors) he is receiving during this shielding period in Gauvain; …he is really thriving. We cannot thank you and your staff enough._ **Parent of a residential student**
_We have had great support from you all and we want to make sure that we said thank you. The package was up and running quickly and we now have a routine which is working well for (us). Thank you for helping to keep us safe and healthy._ **Parent of students isolating at home**
## **And from some of the students.**
_They have delivered me equipment I needed like my standing frame because I didn’t have one, and my school iPad which I needed for music and orchestra. (My teacher) has been tremendous and has helped an awful lot._ **EW**
_People at Treloar's have helped me by doing video calls to help me with my school work, going back to stay has helped me especially and the lift home which Transport kindly provided. Finally, my Speech and Language Therapist has really helped me by understanding exactly what's going on during the times of COVID-19._ **CH**
Here is Emily painting a birdhouse which she will then put in her garden and record which birds she sees using it.
While some of our students were shielding at home, our fantastic teachers set fun and engaging tasks to aid learning for those students who remained at home with their families.
Kerry, who is 22, attends Treloar College and absolutely loves crafting.
As part of their learning, Leanne and Nathan baked some delicious bread in their residential house to share with their friends and the staff who come in each day to help provide care and education for them.
She used some of her free time during lockdown to be creative and started working on a fabulous quilt design.
These staff include Student Support As well as completing online lessons, Assistants, Therapists, Catering physiotherapy sessions and medical Assistants and the Nursing team – care needs, Kerry and her friends who all rise to the challenge and in Gauvain House also enjoyed lots ensure that our students and their of walks on campus in the sunshine. families’ needs come first.
_It was good being able to see my teacher and therapists on Zoom, helping me to learn. The support has been amazing._ **HB**
Following national guidelines and using our own in-house expertise, we rapidly adopted ways of operating that enabled us to welcome more students back on campus. It was a whole-organisation effort. A huge quantity of PPE was purchased, all staff were trained, the site was made more COVID-19 secure and we risk assessed all our learners, activities and spaces. Although our daily contact and support remotely was thorough and wide-ranging, we recognised that, for many of our young people, the social isolation was potentially damaging to their physical and mental well-being. In May we started to welcome back many more residential students.
By the start of the School and College year in September we had welcomed back the vast majority of our students to campus.
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## Thanks to Our Donors and Supporters
The Countess was welcomed by the Vice-Lord Lieutenant of Hampshire, Rear Admiral Iain Henderson CB CBE who in turn introduced the Chairman of Hampshire County Council, East Hampshire District Council and Alton’s Town Mayor. Her Royal Highness also met with our new Patron, Bob Barrett aka Dr Sasha Levy in BBC One drama series, _Holby City_ together with staff and students who gave The Countess the most amazing welcome.
**ROYAL PATRON, HRH THE COUNTESS OF WESSEX GCVO VISITED TRELOAR’S TO ‘MEET THE STUDENTS’.**
The Royal party enjoyed a tour of Treloar’s School visiting a variety of classrooms including Science, Design & Technology, and PE where The Countess took part in a game of table cricket with the students. After seeing many of the projects and equipment our wonderful supporters funded, She also met some of our younger pupils during a Sensory story session led by Treloar’s in-house Speech & Language, OT and Music Therapy staff.
The National Garden Scheme has generously supported our incredible new Outdoor Learning Centre which will create a myriad of new and exciting learning opportunities to benefit all of our students and the wider disabled community. The new centre is on track to open by the end of the calendar year.
## **NATIONAL GARDENS**
Class teacher Katherine said _“It’s so wonderful for the children to get outside and to interact with nature. It adds a valuable and important dimension to their learning and development. You can clearly see the joy on student’s faces which demonstrates how much they love being outdoors. There are so many health and wellbeing benefits too that we like to encourage our students to spend as much time outdoors with nature as possible.”_
**PARTNERING WITH TRELOAR’S**
**CITY OF LONDON VISITORS TO TRELOAR’S**
After the strangest year many of us have ever experienced our wonderful supporters and corporate support donated an amazing £1.8M. Under the circumstances this was incredible and as a result these donations will go on benefitting the young people at Treloar’s for many years to come.
A big heartfelt thank you from all at Treloar’s
We work with companies in many different ways including sponsorship, charity of the year partnerships, volunteering days and gifts in kind. Partnerships can be big or small; either way they are a great way for companies to demonstrate their social responsibility commitment to staff and customers and positively promote their brand and services to the Treloar supporter base, staff, volunteers and the local community.
On talking about why Homes Estate Agents chose to start supporting Treloar’s, Rob Barr, Director said “ _All 40 team members across our local offices were certainly aware of Treloar’s School, but it was only when we were invited for an informal tour around the facility that we fully appreciated the enormity and significance of what Treloar’s actually achieves for its students. Innovation, vision, commitment, dedication and deep compassion is evident throughout the whole Treloar’s organisation and it’s a real privilege to now be supporting them. Estate agents are notoriously_ ” _good at descriptive phrases, but there’s only one word to sum up Treloar’s – incredible!_
We really have received some amazing support from companies throughout the year including our sponsors - BMW Mini Marshall Hampshire, Homes Estate Agents, Savills, Town & Country Couriers and Virgin Media, volunteer teams from Bidfood, Enterprise rent-a-car, Unum, SAP and SunLife Financial of Canada together with many others. We thank you all for your generosity!
On 28th February, Treloar’s students and staff were delighted to welcome The Lord Mayor of the City of London, Alderman William Russell and The Lady Mayoress, Hilary Russell together with Masters and Prime Wardens from 50 Livery Companies. This turned out to be the last major visit to Treloar’s before the COVID-19 lockdown. Treloar’s is honoured to have the Lord Mayor of the City of London visit every year and reflects the enormous respect and affection in which our Founder, William Treloar, and the School and College are held across the City of London. The annual visit always brings students and staff together from all across the campus. The day was topped off with an absolutely magical performance of _Midsummer Night’s Dream_ by the Treloar Sixth Form.
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## Making a Difference
**TRANSFORMING LIVES**
**INDEPENDENCE AND MOBILITY**
**BOURNEMOUTH SYMPHONY ORCHESTRA VISIT**
We are delighted that the generous donations from our supporters have enabled us to fund Therapy, Assistive technology, Dietician and Transition posts as well as supporting our students with their extra curricula activities and as ever to help keep our fabulous facilities appropriate to changing needs.
**TRANSFORMING LIVES**
Our dedicated team fundraises for specialist equipment to support the complex needs of students in the School and College.
Thanks to our donors, we have been able to provide Smart Home technology, revamp our Assistive Technology workshop with new equipment, install hoists in our residential houses, purchase ramps for Boccia, introduce SMART boards to the classrooms and provide switch accessible toys.
**INDEPENDENCE AND MOBILITY**
We have two very important funds at Treloar’s which are generously supported by our donors. The IMPact Fund is offered to students who require new wheelchairs, driving controls and other equipment to enhance their mobility.
The Campbell Sports Fund supports participation in competitive sports, Duke of Edinburgh trips, sport for fun and once in a lifetime trips like power-boating or sailing. Both funds are available to current students and recent alumni.
These grants really do enrich the lives of our young people and simply wouldn’t be possible without the financial support of our donors.
**FACILITIES**
All our superb facilities have been made possible through the generosity of our funders. This year we have added a new outdoor learning centre to the campus. Phase 1 of the new outdoor leaning centre includes a refurbished greenhouse, sensory garden, care facilities and area for small animals. Although the opening was delayed until the autumn because of lockdown, we are expecting the centre to provide enormous horticulture, educational and sensory opportunities to our different groups of students. Another new facility for our students is a flat attached to Brewer house. As our student profile has changed over the years so have their needs. Traditional large boarding houses are no longer suited to every student at Treloars’ and the smaller shared living feel of a five bedded unit suits the needs and future of some of our students better.
_**"Being at Chichester Uni has given me so many new skills that would not have been possible if I had not been at Treloar… Thank you for everything. Being at Treloar inspired me to be the person I have become,”**_ **Former student, Hatty**
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## Transition to Adult Living
After four and a half years, Jeremy left Treloar College in May to move to Rowlands House in Harwich, Essex.
## **JEREMY**
Despite moving at the height of lockdown with no access to community services, Jeremy managed the transition remarkably well and has settled into his new home. This was with support from his team at Treloar's and his new team at Rowlands House. He lives in a two-bedroom bungalow with another young man within a community of 6 other people – three bungalows in total.
Since the end of July, Jeremy has been accessing physiotherapy and is able to use his equipment including his standing frame, trike and walker. Jeremy has recently started music therapy which he is really enjoying, and is looking at further activities he can access within his local community including Colchester Zoo and Clacton Sports Centre. Jeremy really likes going out for a drive in his van and enjoys listening to music. His cheeky sense of humour shines through and as ever he is winning hearts and minds as he usually does!
Campbell Court is a community of seven accessible self-contained ground floor flats located on the Treloar’s Campus. Tenants have the security of knowing that a Personal Assistant is available day or night at a moment’s notice, and that there is someone to help with small tasks.
## **CAMPBELL COURT**
We also support residents to manage their Direct Payments and source their care providers.
The Independent Adult Living Service at Campbell Court is outcome led, with regular tracking and monitoring of progress towards personal goals.
At Treloar’s, we aim to overcome barriers by supporting young people with physical disabilities on their pathway to paid employment. Thank you to all of the employers who work with us.
Katie has now started a paid Supported Apprenticeship as part of a successful pilot project with the Department for Work and Pensions (DWP). This is the first of its kind. The Supported Apprenticeship pilot was devised as a way of increasing the number of physically disabled young people in paid employment. It uses their individual experiences and expert insight to develop the scheme for future participants.
**TRELOAR COLLEGE STUDENT STARTS PAID SUPPORTED APPRENTICESHIP**
Commenting on the success of the scheme, Theresa Wootten, Service Leader at the DWP said: _“I think I've just had one of the best moments in my DWP career, the reaction of Katie when we told her about her apprenticeship opportunity was just amazing.”_
Katie’s positive at ude to employment and sheer determination has helped her gain the 23 month paid Supported Apprenticeship. We are incredibly proud of Katie starting in her new role as a Decision Maker at Bromley Job Centre.
Treloar's is working with the DWP on a new employability project for our interns. We look forward to maintaining the relationship with the DWP to further develop a joint framework to improve the outcomes for young people with physical disabilities.
Last year we helped college students to secure supported internships with external employers, including Enterprise Rent-A-Car, Disability Challengers, QE2 Activity Centre and Vets4Pets.
**SUPPORTED INTERNSHIPS AND WORK EXPERIENCE**
The internship programme enables young people to spend two to three days each week at their chosen placement and our Job Coaches, support them as they settle in and learn new employment skills.
The remaining part of the week is spent taking part in individualised timetables linked to personal aspirations, independence skills and transition planning.
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## Enterprise and Expertise
This year, some of our College students who have been taking part in creative classes started to use their Transition Planning sessions to set up and open their own individual online shops.
Marc is a third year art student who enjoys doodling and drawing new characters. He uses Doodle, Polygon Art and sometimes Maps. Marc’s shop is called ‘Tempest-X-Storm’. You can see his art at **www.redbubble.com**
## **PRINTING ENTERPRISE**
By working at Treloar's Print, students develop skills and knowledge in a real and busy work environment, enabling them to obtain City & Guilds and BTEC qualifications, employability skills and valuable work experience. Our excellent printing enterprise offers high quality traditional print and promotional products. It has grown each year into a thriving business with hundreds of customers.
Building on the success of this thriving enterprise, we plan to grow our model of supported employment, work experience and training to provide an exceptional model for how local businesses could be more inclusive.
Our people are incredibly valuable to us and we recognise the amazing role they play in enabling our children and young people to develop the confidence and skills to achieve their potential.
## **STAFF EXPERTISE**
and Level 4 & 5 in Health & Social Care. We also had staff achieve teaching qualifications such as Level 3 Support Teaching & Learning in Schools, Level 5 Education & Training, PGCE and QTLS. On top of this, 9,803 training courses were completed by our staff this year.
During 2019/20, we employed 906 full and part-time staff, including teachers, nurses, therapists, classroom and care workers, drivers, chefs, fundraisers, housekeepers, support staff and chaplains. The wide variety of professions employed at Treloar’s helps ensure a holistic and integrated approach that can be tailored around each student.
We are recognised by Investors in People with a Gold accreditation which is testament to the proactive work we do to support, recognise and develop our employees. We have also been acknowledged as being a Disability Confident Employer and are committed to supporting the mental health of our staff under the Mindful Employer charter. Our employees go the extra mile and we recognise them with termly Commitment to Excellent Awards as well as annual Staff Awards. This year we added Critical Illness Cover and a number of new discounts to our benefits package to ensure we continue to reward our employees well. All of these achievements have been in the face of one of most difficult years to face the world in recent history. COVID-19 has meant our employees have needed to adapt quickly and try new ways of working to which they have excelled. We will remain proactive and innovative in all areas to deal with what the new year brings us.
We have continued to recruit successfully throughout the UK and Europe to maintain high levels of staffing. Our employees are complemented by a team of dedicated bank staff and devoted volunteers who all give their time and energy for the benefit of our students. Our bank staff worked 7,582 hours this year and our volunteers contributed 11,040 hours of their time. Additionally we offer work experience and clinical placements for university students studying therapy, nursing and education.
We are committed to supporting our staff to develop and gain skills on an on-going basis. This year 29 staff achieved recognised qualifications including Level 2 in Counselling Skills and Equality & Diversity, Level 3 Diplomas in Health & Social Care, Residential Childcare
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## Outward Focus
This year Outreach welcomed inspiring young university students to work alongside our experienced staff to share with the future generation our expertise in physical disability.
There’s no denying the pandemic had a significant impact on our ability to deliver Outreach services beyond 23rd March 2020. However, Therapy services did survive the lockdown as we reverted to online sessions.
We remain positive that 2021 will see the return of our summer residential groups after the disappointment of having to cancel our 2020 summer season due to COVID-19.
## Thank You to Our Volunteers
We are so fortunate to have a group of wonderful people who also run events in aid of Treloar’s. We’d like to thank them for all their hard work, and for making a huge difference to the lives of all the young people who live, laugh and learn at Treloar’s.
## **INTERNATIONAL VOLUNTEERS**
Our fully accessible catered accommodation is available for hire by charitable groups who offer short breaks to physically disabled young people and their families during the school holidays. This testimonial shows why groups return year after year:
_**“We would very much like to return to Treloar’s on a yearly basis."**_
Our International Volunteers have continued to be a great benefit to Treloar’s during the COVID-19 pandemic. In May, the majority of our 2019 – 2020 Volunteers returned to their home countries, however due to travel restrictions, a small number remained at Treloar’s until the summer. These individuals provided valuable support to our team with employee screening (e.g. temperature checking) and also contributed to the Facilities team efforts during this incredibly busy time.
_“I felt so blessed to be a volunteer during this time in Treloar's. I just want to say thank you! Thank you to all the people in Treloar's! I had a good time and I learned a lot in my working time with the students since I arrived there. The students who I worked with taught me a lot in many areas, every one of them has amazing special characteristics and they helped me a lot in the way to see the life.”_
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**Strategic** Strategic Report **Report** (Incorporating the Directors’ Report) (Incorporating the Directors’ Report)
The Charity is a registered charity (No.1092857) and a company limited by guarantee (No. 4466362). Its registered office is shown on the back of this report. The present Trustees and any past Trustees who served during the year are shown on page 33, together with the names of the senior executive staff and the principal external advisers as at the date of the signing of this report. The Trustees review the purpose, aims and activities of the Charity each year. This review looks at the achievements during the previous year explaining the number and nature of beneficiaries assisted and the extent of that assistance. When carrying out the review and planning future activities, the Trustees refer to the guidance contained in the Charity Commission’s general guidance on public benefit. In particular the Trustees consider how planned activities will contribute to the aims and objectives they have set.
## **OVERVIEW OF ACTIVITIES**
**The Trustees of Treloar Trust (‘the Charity’), who are also Directors of the Charity for the purposes of the Companies Act, present their annual report for the year ended 31 August 2020 under the Companies Act 2006 and the Charities Act 2011, together with the audited financial statements for that year.**
The Charity’s purpose, as set out in the objects clause contained in its Articles of Association, is: ‘To promote the relief of persons with disabilities (whether physical or otherwise) (‘Beneficiaries’) and in particular but without limitation by any or all of the following:
**The financial statements comply with the requirements of the Companies Act 2006, the Charity’s Memorandum and Articles of Association and the relevant Statement of Recommended Practice (the Charities SORP (FRS 102) effective 1 January 2019).**
- The promotion, provision and maintenance of schools, colleges and other educational
- establishments;
- The promotion and provision of care, therapy, treatment and counselling to Beneficiaries;
- The promotion of employment of Beneficiaries whether by way of the creation and operation
- of workshops and facilities or otherwise; and
- The improvement of knowledge, understanding and awareness of the public into the conditions
- of life and needs of Beneficiaries and in particular but without limitation by the promotion of research and the publication of the useful results of such research.’
The Charity has four main activities:
- Educating young people with physical disabilities
- Residential Care
- Clinical Services
- Outreach Services.
- **Maintain the School and College as an Outstanding Provider.** An OFSTED Residential inspection carried out in the spring of 2020 again rated the School as Outstanding. The College remains Outstanding.
## **UPDATE ON PLANS AND DEVELOPMENTS**
- **Complete work on a long term strategy, including supporting more beneficiaries.** A strategic plan for the years 2020-2030 was approved by the Trustees in September. This strategy seeks to build on the Trust’s reputation for high quality education, therapy and care, focusing on opportunities to reach more young people and on initiatives to support students as they transition on into higher education, independent living and employment.
**In our 2018/19 annual report, we set out our plans for 2019/20 and beyond. These plans, together with an update on progress during the year are described to the right:**
- **Invest in our staffing strategy, including the building of new staff accommodation to attract, develop and retain skilled staff.** In March 2020 planning permission was granted to build new key worker accommodation to house 42 staff. Work on this new building is expected to start in the spring of 2021. We have continued to recruit heavily including through lockdown such that by the end of October we had 677 staff, 46 more than at the start of Academic year 19/20.
- **Create a new accessible Outdoor Learning Centre that will enable our students and other beneficiaries to learn horticulture and animal care skills, as well as gaining work experience.** Phase 1 of the new Outdoor Learning Centre is now complete and students are beginning to benefit from this wonderful new outdoor environment.
- **Work with the Department for Work and Pensions and employers to provide more internships and work experience placements to support our students with their transition in to work.** 4 new paid internships were started in the year and two of our leavers have secured paid apprenticeships with the DWP – the first such apprenticeships the DWP have done and a pilot they wish to replicate more widely.
- **Grow our reputation within the sector by presenting at specialist conferences and providing training to external agencies.** Even by March lockdown, we had exceeded our full year targets for presenting at specialist conferences including in School Education, Counselling and Therapies.
- **Continue to expand our fundraising activities to enable our students and others to access the specialist staff, equipment and experiences they need to grow in confidence and live a fulfilled life.** Prior to the COVID-19 lockdown in March, Fundraising Income had been on track to surpass 2019 with thanks to support from the Band Trust and two other key donors. Even including a slow second half, Fundraising delivered £1.74m (2019: £1.93m) to provide new roles and facilities including a new Outdoor Learning Centre.
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Strategic Report (Incorporating the Directors’ Report)
**With the COVID-19 Crises continuing into 2020/21 our overriding objectives are:**
- to ensure the safety of all our staff and students and
## **PLANS FOR THE FORTHCOMING YEAR**
- to ensure our students receive the fullest and best quality education, therapy and care possible throughout this period.
Beyond these immediate objectives, and in so far as the environment in which we work allows, we plan to:
- Maintain the School and College’s reputation as an Outstanding provider
With School and College numbers for 2020/21 expected to exceed 2019/20 and continuing strong demand for places beyond, this income is relatively secure.
## **IMPACT OF COVID-19 ON GOING CONCERN**
£1.6m of fundraising and outreach income could be more vulnerable to shock, but even a 30% impact on these income streams, coupled with unexpectedly high PPE and utilities costs are small when compared to the Trust’s cash balances and accessible investments.
**The vast majority of Treloar’s income derives from Government and Government bodies committed to funding education.**
- Support more beneficiaries, improving access to our services
- Re-invigorate our efforts to support students as they transition to higher education,
- independent adult living and employment
- Continue to invest in our staffing strategy, including the building of new staff accommodation to attract, develop and retain skilled staff
- Grow our reputation within the sector by presenting at specialist conferences and providing training to external agencies
- Continue to expand our fundraising activities to enable our students and others to access the specialist staff, equipment and experiences they need to grow in confidence and live a fulfilled life.
Total student numbers by the end of the year (excluding Nursery) were slightly lower at 163, with the College down 7 at 83 and School numbers 4 higher at 80. This reduction in student **FINANCIAL REVIEW** numbers relative to July last year reflected the handful of students who couldn’t start in the **2019/20 saw the Trust incur a small** spring due to COVID-19 and whose places were thus deferred to September. In spite of this **net income of £363k (2019: net loss** small reduction in numbers, total income from charitable activities grew by 4.4% to £21.5m **of £238k), before actuarial losses of** (2019: £20.6m), reflecting an increase in complexity of the medical conditions of our students. **£2.27m, (2019: £2.56m) on a turnover** Donations, legacies and grants, at £1.6m (2019: £1.53m), performed respectably in spite of most **of £23.6m (2019: £23.0m)** fundraising activities reducing significantly after the first lockdown in March, and was boosted by a grant of 194k under the government job retention scheme, whilst Event income was substantially lower at £103k (2019: £191k) due to the cancellation of all events in the Spring and Summer, meaning that other fundraising activities fell by 18% to £336k (2019: £409k). Expenditures rose by 3.5% to £24.2m (2019: £23.4m) as direct staffing costs rose above inflation, reflecting the need to support a more complex group of students. There was an actuarial loss on the Defined Benefit Pension Scheme of £2.27m (2019: £2.56m). This loss reflected increased projected liabilities driven by a falling discount rate and a difficult 2020 for investments. The increased deficit on the defined benefit scheme meant that the Trust’s unrestricted funds fell to £12.5m (2019: £14.6m) and total funds reduced to £23.6m (2019: £25.5m). Other balance sheet and cash flow highlights included a decrease in both debtors and creditors falling due within one year, reflecting the fact that in 2020 many Autumn term invoices were sent out after the 31 August year end.
## **GROUP STRUCTURE**
**The Trust has only one subsidiary, Treloar Enterprises Limited (TEL). The subsidiary, which is wholly owned, carries out non charitable activities for the benefit of the Trust.**
## **RESERVES**
**General reserves available for use by the Trust are deemed to be those that are readily realisable, less funds whose use is restricted or designated for particular purposes. Thus the calculation of general reserves excludes property and other fixed assets that continue to be used in the day-to-day operation of the Trust and in particular the buildings used by the School and College.**
During the year to 31 August 2020, TEL made an operating profit of £34k (2019: £93k), which was donated to the Trust. The Trust has taken exemption from the production of consolidated financial statements because the figures for the group (incorporating TEL) would not be materially different to those of the Trust as a single entity and has included in note 9 to these accounts the results of TEL.
The financial statements on the following pages therefore show the assets and operations of the Trust itself rather than the group as a whole.
The Trustees regularly review the value of the reserves required to be held in investments, cash and cash equivalents not restricted to or designated for any particular purpose. Ideally the Trustees believe that a general reserve of 3 to 6 months expenditure is needed to provide adequate working capital, to create a buffer in case of a sudden reduction in student numbers and to allow for fluctuations in investment returns. At 31 August 2020, the General Reserve was £9.33m (2019: £8.98m), equivalent to 4.8 months expenditure. The Trustees consider this level of general reserves to be adequate at this time.
The property and equipment fund represents the net book value of tangible fixed assets, which have been purchased with unrestricted funds. This reserve is locked into the value of the estate and can be released only if all or part of the estate is sold. The value of the fund decreased slightly during the year to £15.6m (2019: £15.8m). Restricted Funds £11.1m (2019: £11.0m) represent monies received for a restricted purpose. The vast majority of these funds relates to specific building and equipment appeals (£8.50m) and to the Rossington Fund (£0.94m) and Billesden Fund (£0.59m) given to help students access education and to help monitor alumni progress respectively.
The historic defined benefit pension scheme fund deficit relates to the excess of liabilities over assets in the defined benefit scheme. In the year total future obligations rose by £1.29m to £45.3m and the value of assets fell by £802k to £32.6m meaning that the net deficit rose to £12.7m.
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## Key Policies
Responsibility for each area rests with an appropriate member of the Leadership team overseen by a Risk and Compliance sub committee of the Trust Board, which regularly reviews the status of each risk and the effectiveness of the management controls. At the highest level, the Trustees receive termly reports in the form of an updated risk management schedule that demonstrates that the appropriate actions have been or are being implemented. Given the challenging regulatory, economic and social environment within which Treloar School, Treloar College and Fundraising operate, risk management is an essential element of the Trust’s management system.
## **RISK MANAGEMENT**
**The Trust’s risk management policy is based around a hierarchy of an overarching risk management schedule which contains all of the key risks that the organisation is, or potentially could be, exposed to, linked with the relevant mitigating actions, together with a practical risk assessment process and the operational tasks that emanate from it.**
## **The key risks that currently face Treloar’s and principal mitigating strategies are:**
- Inability to recruit sufficient students, which is managed by liaising closely with local authorities
- to ensure the relevance and value of our offer, by maintaining the quality of our educational provision, and by focused marketing initiatives.
- Inability to recruit, develop and retain sufficient skilled staff, which is managed by innovative
- approaches to recruitment, offering a high level of training and development opportunities, helping key workers with accommodation and by actively listening to our staff and, where necessary, providing support and/or flexible working patterns.
- Nursing/medical errors, which we manage by maintaining a highly specialised nursing team,
- strict protocols over medication management and close monitoring of performance indicators.
- Safeguarding failure or adverse regulator opinion. The Trust keeps quality at the forefront
- of its strategy. The safeguarding risk is managed through recruitment policies, training, risk assessment, operating policy, incident reporting and a dedicated safeguarding manager.
- Lower than budgeted level of fundraising prevents the Charity investing in value adding
- facilities and opportunities. This risk is managed by undertaking different types of fundraising and the steerage of a dedicated Trust committee.
- Pension fund requires additional support from the Trust. The Pension trustee uses professional
- advisers to ensure that investment strategy is designed to deliver required returns and hedge liabilities.
- Data protection failure, which we manage by following the General Data Protection Regulations
- and ensuring we have appropriate backup and data recovery systems.
- The COVID-19 pandemic adds cost, interrupts supplies and leads to staff absence, whether
- infected, isolating or shielding, impacting upon our ability to provide quality services. The Trust’s budgets have been adjusted to reflect likely costs where grants cannot be secured, we have made contingency plans to respond to supply disruption and we have taken extensive precautions to minimise risks of transmission between staff including use of PPE, distancing, weekly testing, use of bubbles and enhanced cleaning routines.
Treloar’s strives to create a culture where mutual cooperation, respect , dignity and trust are fostered. The Trust will not tolerate unfair or unlawful treatment on the grounds of age, disability, gender, transgender, marital status, race, colour, ethnic origin, socio-economic background, sexual orientation, nationality, trade union membership and activity, philosophical, political or religious beliefs or unbelief, and pregnancy or maternity. Initiatives are headed by a dedicated equality, diversity and inclusion coordinator reporting directly to the Quality and Performance subcommittee of the Governing Body.
## **EQUAL OPPORTUNITIES**
**Respecting diversity is one of Treloar’s key values and we are committed to being an inclusive organisation where diversity is celebrated and valued.**
One key initiative in 2020 relates to race equity. As part of our commitment to race equity we will; communicate our commitments, train leaders, report key indicators, support minority progression and target recruitment (of both students and staff) from areas of diversity. We measure our gender pay gap on the 1st October each year. In 2019 the mean gender pay gap was 2% (2018 -1%) and our median pay gap was -5% (2018 -3%). A negative number means that women are paid more than men. Our full gender pay gap report is available on our website.
This communication includes: a weekly update to all staff, fortnightly communication of key matters from the leadership via the Trust’s intranet, a ‘Staff News’ publication, a half-termly Chief Executive’s report, and an annual briefing on current strategy from the Chief Executive. All teams have staff meetings, and there is a Staff Consultation Group and a Staff Voices Conference. Staff and volunteer questionnaires are used to ensure that communication is genuinely two-way.
## **COMMUNICATING WITH STAFF AND VOLUNTEERS**
**Internal communication is a key driver of engagement and feedback at Treloar’s.**
In addition there are four Trustee committees covering Finance, Investment and Audit; Risk and Compliance; Fundraising; and Nominations and Remuneration. These committees all meet a minimum of three times a year. The Charity follows the seven principles which make up the Charity Governance Code. The pay and contractual terms of senior executives is set by the Nominations and Remunerations committee of the Trustees with reference to market conditions. The key aspects of overseeing the School and College are delegated to the Governing Body, which is a subcommittee of the Board of Trustees. The Chairman of the Governing Body and at least three other members of the Governing Body are Trustees, whilst the majority of Governors are independent (i.e. not otherwise a direct stakeholder in the School or College) and have a wide range of relevant professional and management skills and backgrounds. The Governing Body meets at least four times a year.
## **GOVERNANCE**
**The Charity is governed by its Memorandum and Articles of Association adopted in June 2002 and amended in July 2010, March 2017 and July 2019. The Board of Trustees is responsible for the overall governance of the Charity and meets as a board at least three times a year.**
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## Key Policies
The Trustees look at the blend of experience and skills of all Governors and Trustees to ensure that these meet the needs of the Charity. Where vacancies arise, a formal recruitment process is undertaken. This involves advertising both locally and nationally as well as more informal approaches to individuals who have the relevant skills and experience. Selection is made after a rigorous process including visits to the Charity and interviews by senior staff as well as Trustees and Governors.
## **TRUSTEE SELECTION, INDUCTION AND APPRAISAL**
**The Board of Trustees regularly reviews the composition of itself, the Governing Body and its various subcommittees through the Nominations and Remuneration Committee.**
All new Governors are invited to attend the standard staff induction days held at the start of each term. Governors are expected to visit the School and College regularly outside the normal meetings of the Governing Body and to undertake training on a continuing basis on subjects relevant to the operations of the School and College. The Trustees and Governors undertake skill audits, self-evaluations and appraisals on a regular basis. This enables the Trust to provide training to enhance their understanding and knowledge of the Charity to ensure all Trustees and Governors are able to satisfy themselves of their own performance.
- The Charity is operating efficiently and effectively;
- All assets are safeguarded against unauthorised use or disposition and are properly applied;
## **CORPORATE GOVERNANCE**
- Proper records are maintained and financial information used within the Charity,
- or for publication, is reliable; and
**The Trustees have overall responsibility for ensuring that the Charity has appropriate systems and controls, financial and otherwise to provide assurance that:**
- The Charity complies with relevant laws and regulations.
In so far as the Trustees are aware, there is no relevant audit information of which the Charity’s auditors are unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Internal controls over all forms of commitment and expenditure continue to be refined to improve effectiveness. Processes are in place to ensure that performance is monitored and appropriate management information is prepared and reviewed regularly by both the executive management and the Trustees. The systems of internal controls are designed to provide reasonable but not absolute assurance against material mis-statement or loss.
## They include:
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
**The Trustees are responsible for preparing the Strategic Report, the Annual Report and the Financial Statements in accordance with applicable law and regulations.**
**Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).**
Under company law the Trustees 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 Charity and of the incoming resources and application of those resources, including the income and expenditure, of the Charity for that period.
In preparing these statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Make judgements and accounting estimates that are reasonable and prudent; and
- Prepare the financial statements on a going concern basis unless it is inappropriate
- to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charity’s website is the responsibility of the Trustees. The Trustee’s responsibility also extends to the ongoing integrity of the financial statements contained therein.
## **FUNDRAISING STATEMENT**
**Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities.**
- Annual management plans and annual budgets approved by the Trustees;
- Regular consideration by the Trustees of financial results, variances from budgets, non-financial
- performance indicators and benchmarking reviews;
- Delegation of day-to-day management authority and segregation of duties; and
- Identification and management of risks.
All major decisions are reserved to the Trustees and include appointment and remuneration of key management. Executive remuneration is set in consideration of the nature of the role, its responsibilities and market salaries. The Trustees and Governors all give of their time freely.
The legislation defines fundraising as ‘soliciting or otherwise procuring money or other property for charitable purposes’. Such amounts receivable are presented in our financial statements as ‘donations and legacies’ and as ‘Other fundraising activities’ which includes income from our lottery and events. The day-to-day management of all income generation is delegated to the executive team, who are accountable to the Trustees. The Charity is not bound by any regulatory scheme. However the Charity has voluntarily registered with the Fundraising Regulator and complies with the regulator’s codes of practice. We have received six complaints in the year in relation to fundraising activities all of which have been resolved and reported to the regulatory body. Our terms of employment require staff to behave reasonably at all times.
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## Key Policies
The current investment manager, Ruffer LLP, adopts a total return basis to investment policy whereby both income generation and capital growth are included in calculating the return. Ruffer LLP is targeted to provide a return of RPI plus 4% after fees have been taken into account. In spite of being a difficult year for the markets, our investments performed well with a growth of £733k representing a net return of 10.7%, comfortably above the 4.5% target.
## **INVESTMENT POWERS, POLICY AND PERFORMANCE**
**The Articles of Association of the Charity state that it has the power ‘to deposit or invest funds in any manner as the Trustees shall in their absolute discretion think fit to the intent that the Trustees shall have the same full and unrestricted powers of investing and transposing investments in all respects as if they were beneficially absolute owners…’.**
The Defined Benefit Pension Fund investments are held totally separate from the Trust assets and investments. The funds are managed by professional fund managers appointed by the Independent Pension Scheme Trustee, Link Group. Link Group consults in depth with the Trust before appointing investment managers and determining the asset allocation policies to be followed. The Trustees receive quarterly reports on the performance of its funds and the Investment Sub-Committee meets the investment manager twice a year to monitor their performance with the help of external professionals.
The Annual Report and Accounts, incorporating the Strategic Report, were approved by the Trustees in their capacity as Directors of the Company on 11 December 2020 and signed on their behalf.
Alistair Mackintosh, Chair of Trustees
## Officers and Professional Advisers
## **TRUSTEES**
## **PATRONS CONTINUED**
Alistair Mackintosh BSc MBA (Chairman of Treloar Trust) Cheryl Brewer (appointed 1 January 2020) Michael Chadwick ACA CTAI (Chairman of Governors, Treloar School and College) Jane Cooke (resigned 31 December 2019) Sir Alex Allan KCB MA MSc James Bateson LLB Rhys Iley John Paul Marks
Canon Roger Royle Ben Rushgrove
Admiral Sir Jock Slater GCB LVO DL David Smith MBE Roger Southam Jeff Stelling
Alastair Stewart OBE Sir Richard Stilgoe OBE DL Alan Titchmarsh MBE DL
Brian McNamara BSc MBA (resigned 10 July 2020) David Matthews JP BSc CA Lady Win Normington CBE Dr Victor Olisa QPM (appointed 1 January 2020)
The Right Reverend David Williams, Bishop of Basingstoke Dame Jacqueline Wilson DBE FRSL Tom Yendell
## **SENIOR EXECUTIVES**
Simon Birch BA MBA ACA Interim Chief Executive and Company Secretary (appointed 18 October 2019) Martin Ingram BSc PGCE Principal of Treloar School and College Jon Colville BA DMS DipM Director of Fundraising Kay Guy BSc FCIPD Head of Human Resources Jessica Taplin Chief Executive and Company Secretary (resigned 18 October 2019)
## **HONORARY TRUSTEE**
Rt. Hon. The Lord Mayor of The City of London
## **ROYAL PATRON**
HRH The Countess of Wessex GCVO
## **PATRONS**
Fiona Adler Michael Aspel OBE Bob Barrett Dan Bentley The Reverend Mark Birch Stuart C Boreham Lady Brewer (Tessa) OBE Sir David Brewer KG CMG JP Michael Campbell MBE DL Michael Cassidy CBE BA MBA Lord Chidgey of Hamble-le-Rice Chris Childs Christopher Dadson Damon de Laszlo DL Dan Eley Julie Fernandez
Alan Jordan Interim Finance Director FCA, DChA
## **BANKERS**
Lloyds TSB plc, City Office Branch PO Box 72, Bailey Drive, Gillingham Business Park Gillingham, Kent ME8 0LS
## **INVESTMENT MANAGERS**
Ruffer LLP 80 Victoria Street London SW1E 5JL
## **SOLICITORS**
Stone King LLP
Boundary House, 91 Charterhouse Street London EC1M 6HR
Humphrey Hawksley Suzanna Hext Jane Macnabb Maureen Marden Bruce Powell MA Mike Roberts
## **AUDITORS**
BDO LLP 2 City Place, Beehive Ring Road Gatwick, West Sussex RH6 0PA
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## Independent Auditor's Report To Members of Treloar Trust
## **OPINION**
We have audited the financial statements of Treloar Trust (“the Charitable Company”) for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the balance sheet, the cash flow statement 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 applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the Charitable Company’s affairs as at 31 August 2020 and of its incoming resources and application of resources 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 Charitable Company in accordance with the ethical requirements 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 RELATED TO GOING CONCERN**
## **OTHER INFORMATION**
The other information comprises the information included in the Report and Accounts, other than the financial statements and our auditor’s report thereon. The other information comprises: the annual review and the Strategic Report (incorporating the Directors’ Report). The Trustees are responsible for the other information.
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.
## **OPINIONS 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 Trustees’ Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors’ Report, which are included in the Trustees’ report, have been prepared in accordance with applicable legal requirements.
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 Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charitable Company’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.
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## Independent Auditor's Report
## To Members of Treloar Trust
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustee’s report.
We have nothing to report in respect of the following matters in relation to which 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 Directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees (who are also the directors of the Charitable Company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines 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 Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.
## **AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS**
We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditors responsibilities. This description forms part of our auditor’s report.
## **USE OF OUR REPORT**
This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
James Aston (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Gatwick, West Sussex
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127)
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## STATEMENT OF FINANCIAL ACTIVITIES
## (Including the Income and Expenditure Account) Year Ended 31st August 2020
||**Note**|**2020**
**Unrestricted**
**£000s**|**2020**
**Restricted**
**£000s**|**2020**
**Endowed**
**£000s**|**2020**
**Total**
**£000s**|**2019**
**Unrestricted**
**£000s**|**2019**
**Restricted**
**£000s**|**2019**
**Endowed**
**£000s**|**2019**
**Total**
**£000s**|
|---|---|---|---|---|---|---|---|---|---|
|**Income from:**
**Donatons, legacies and grants**
**Charitable actvites**
Teaching
Medical
Care|2|948
7,792
4,850
8,845|648
-
-
-|-
-
-
-|1,596
7,792
4,850
8,845|
699
7,296
4,675
8,610|826
-
-
-|-
-
-
-|1,525
7,296
4,675
8,610|
|Total income from charitable actvites||21,487|-|-|21,487|
20,581|-|-|20,581|
|**Income from other trading actvites**
Other fundraising actvites
Rent|2
3|299
262|37
-|-
-|336
262|
314
324|95
-|-
-|409
324|
|Total income from other trading actvites||561|37|-|598|
638|95|-|733|
|Investment income|4|90|3|-|93|
194|5|-|199|
|**Total income**||**23,086**|**688**|**-**|**23,774**|
**22,112**|**926**|**-**|**23,038**|
|**Expenditure on:**
**Raising funds**
**Charitable actvites**
Teaching
Medical
Care||938
7,866
4,911
9,855|7
290
109
198|-
-
-
-|945
8,156
5,020
10,053|
1,057
7,448
4,448
9,670|8
366
169
192|-
-
-
-|1,065
7,814
4,617
9,862|
|Total expenditure on charitable actvites||22,632|597|-|23,229|
21,566|727|-|22,293|
|||||||||||
|**Total expenditure**|**5**|**23,570**|**604**|**-**|**24,174**|
**22,623**|**735**|**-**|**23,358**|
|Net gains on investments|7|712|-|51|763|
80|-|2|82|
|**Net income/(expenditure)**||**228**|**84**|**51**|**363**|
**(431)**|**191**|**2**|**(238)**|
|Actuarial loss on defned beneft scheme|15|(2,272)|-|-|(2,272)|(2,557)|-|-|(2,557)|
|**Net movement in funds**||**(2,044)**|**84**|**51**|**(1,909)**|**(2,988)**|**191**|**2**|**(2,795)**|
|Total funds brought forward||14,563|9,506|1,471|25,540|
17,551|9,315|1,469|28,335|
|**TOTAL FUNDS CARRIED FORWARD**||**12,519**|**9,590**|**1,522**|**23,631**|
**14,563**|**9,506**|**1,471**|**25,540**|
There are no gains or losses other than those shown in the Statement of Financial Activities above. All operations were classed as continuing.
The notes on pages 41 to 57 form part of these financial statements.
## BALANCE SHEET
## As at 31st August 2020
||**Note**|**2020**
**£000s**|**2020**
**£000s**|**2019**
**£000s**|**2019**
**£000s**|
|---|---|---|---|---|---|
|**Fixed assets**
Tangible fxed assets
Investments|8
9||24,600
8,202||24,894
7,469|
|Total fxed assets|||32,802||32,363|
|**Current assets**
Stock
Debtors
Investments
Cash at bank and in hand|10
9|10
997
24
5,084||9
4,057
1,421
2,694||
|Total current assets||6,115||8,181||
|**Liabilites**
Creditors: Amounts falling due within one year
**Net current assets**|11|(1,993)|4,122|(4,033)|4,148|
|**Total assets less current liabilites**|||36,924||36,511|
|Provision for liabilites and charges
**Net assets excluding pension scheme liability**
Defned beneft pension scheme liability|12
15||(578)
36,346
(12,715)||(351)
36,160
(10,620)|
|**NET ASSETS**|||**23,631**||**25,540**|
|**The funds of the charity**
Restricted Funds
Endowed Funds
Unrestricted funds held as tangible fxed assets
Designated funds
General reserves
Defned beneft pension scheme fund
Unrestricted funds|13
13
16
16
16
15
16|15,568
332
9,334
(12,715)|9,590
1,522
12,519|15,843
364
8,976
(10,620)|9,506
1,471
14,563|
|**TOTAL FUNDS**|||**23,631**||**25,540**|
Approved by the Board of Trustees on 11 December 2020 and signed on its behalf by
Alistair Mackintosh Chair of Trustees
Michael Chadwick Trustee
**Company registration number: 4466362**
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
38
39
## CASHFLOW STATEMENT
Year Ended 31st August 2020
||**2020**
**£000s**|**2019**
**£000s**|
|---|---|---|
|**Reconciliaton of net income/(expenditure) to net cash fow from operatng actvites**
**Net income / (expenditure) for the reportng period (as per the statement of fnancial actvites)**
**Adjustments for:**
Depreciaton charges
Net gains on investments (including investment property)
Investment income shown in investng actvites
(Increase) in stock
Decrease in debtors
(Decrease) in creditors
Increase in provisions for liabilites and charges
Net (repayments) / charges for defned beneft pension scheme|**363**
1,228
(763)
(93)
(1)
3,061
(2,040)
227
(176)|**(238)**
1,167
(82)
(199)
-
2,584
(2,503)
108
108|
|**Net cash provided by operatng actvites**|**1,806**|**945**|
|**Statement of cash fows**
**Cash fows from operatng actvites**
Net cash provided by operatng actvites
**Cash fows from investng actvites**
Investment income
Purchase of tangible fxed assets
Proceeds of sale of investments (including investment property)
Purchase of investments|**1,806**
93
(934)
4,269
(4,054)|**945**
199
(1,106)
6,132
(6,190)|
|Net cash used in investng actvites|(626)|(965)|
|Change in cash and cash equivalents in the reportng period
Cash and cash equivalents at the beginning of the reportng period
|1,180
4,337|(20)
4,357|
|**Cash and cash equivalents at the end of the reportng period**|**5,517**|**4,337**|
|**Analysis of changes in net debt**|**At 31 Aug-19**
**£000s**|**Cash fows**
**£000s**|**At 31 Aug-20**
**£000s**||
|---|---|---|---|---|
|Cash at bank and in hand
Current asset investments
Cash equivalents held in fxed asset investments|2,694
1,421
222|2,390
(1,397)
187|5,084
24
409||
||**4,337**|**1,180**|**5,517**||
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **1. ACCOUNTING POLICIES**
- The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
- **a) Scope and basis of the financial statements**
- The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments at market value and investment properties as stated in note 9, and are in accordance with the Statement of Recommended Practice: Accounting and reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (the 'SORP 2019'), FRS 102: The Financial Reporting Standard applicable in the UK and Ireland ('FRS 102'), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.
- The financial statements have been prepared on a going concern basis. The Trustees consider that the Charity is able to continue to operate as a going concern and thus it is appropriate to prepare the financial statements on a going concern basis.
- Treloar Trust is a private company limited by guarantee, incorporated in England and Wales, and constitutes a public benefit entity as defined by FRS102. The Trustees confirm that they have complied with the requirements and duty in Section 17 of the Charities Act 2011 to have regard to the Charity Commission's general guidance on public benefit; Charities and Public Benefit, and that the activities of the Charity, particularly in the areas of education and disability services, are for the public benefit.
The preparation of the financial statements in accordance with FRS102 requires the trustees to make judgements, estimates and assumptions that affect the application of policies and reported amounts in the financial statements. The areas where assumptions or estimates were significant to the financial statements are disclosed in note 22.
- **b) Exemption from consolidation**
- Consolidated financial statements have not been prepared because the figures for the group, incorporating Treloar Enterprises Limited, the Trust’s only subsidiary, would not be materially different to those of the Trust as a single entity. The Trustees have included in note 9 to these accounts the results of Treloar Enterprises Limited for its accounting year to 31 August 2020. The accounts therefore show the results, cash flows, assets and liabilities of the Trust itself rather than the group as a whole.
- **c) Fee income**
- All income is accounted for in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Where income is received in advance of providing services, it is deferred until the Trust becomes entitled to that income. Fee income from charitable activities is split between teaching, medical and care based on breakdowns of each area provided to purchasers.
- **d) Fundraising income including events and lottery** i) Donations, event and lottery income are recognised when received or when the Trust is entitled to the income and receipt is probable and measurable. Where income tax is reclaimable such income is included at the gross amount.
- ii) Legacies are recognised when received or when the legacy has become accurately quantifiable and has been notified to the Trust as receivable. iii) Gifts in kind (representing donations of equipment or vehicles) in excess of £250 are treated as income. The value of such donations is the fair value of the gift, usually the cost to the donor.
- **e) Grant income**
- Grant income is credited to the Statement of Financial Activities on an accruals basis where applicable.
- **f) Investment income**
- Investment income is credited to the Statement of Financial Activities on an accruals basis and is inclusive of the income tax recoverable, where applicable.
- **g) Rental income**
- Rental income is accounted for in the period for which the rent has been charged.
The notes on pages 41 to 57 form part of these financial statements.
- **h) Expenditure**
- Revenue and capital expenditure is recognised on an accruals basis inclusive of irrecoverable VAT, where applicable. The Trust directly attributes expenditure in so far as is possible between teaching, medical and care. Support costs are those which provide indirect support to the Trust and School and College e.g. finance, human resources, facilities, governance costs and IT. Support costs not attributable to a single activity like these have been allocated on a basis consistent with identified cost drivers for that cost category such as staff numbers.
- **i) Operating leases**
Rentals payable are charged on a time basis over the term of the lease.
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
40
41
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **1. ACCOUNTING POLICIES (Continued)**
- **j) Tangible fixed assets**
The cost of tangible fixed assets includes those costs which are directly attributable to purchasing the assets and bringing them into working condition. The Trust does not capitalise interest as part of the cost of tangible fixed assets. The Trust capitalises refurbishment costs and any associated capital expenditure where such work extends the economic useful life of the building or provides new facilities. Normal repairs and maintenance costs are expensed as incurred. The Trust's capitalisation policy is to transfer to the balance sheet only capital assets with a cost in excess of £5,000.
Depreciation is provided at the following rates to write off the cost of the Trust’s fixed assets over their estimated useful economic lives:
Buildings are depreciated on a straight-line basis over forty years from date of first use.
## Freehold buildings for use
by School and College Transport and motor vehicles Transport and motor vehicles are depreciated on a straight-line basis between four and seven years from date of acquisition.
Furniture, fixtures and equipment Furniture, fixtures and equipment are depreciated on a straight-line basis between three and ten years from date of acquisition.
Computer equipment Computers and other IT equipment are depreciated on a straight-line basis between two and four years from date of acquisition.
Assets under construction Costs incurred on assets not completed as at the year end are shown as assets under construction and are not depreciated until such time as completed and transferred to the relevant class of asset.
## **k) Investment assets**
Freehold investment property Freehold investment property is reflected at market value where this is deemed materially different from cost. Listed investments Listed investments are reflected at market value at the balance sheet date. Unlisted investments Unlisted investments are reflected in the balance sheet at cost less provision for any permanent diminution in value or impairment.
Both realised and unrealised profits and losses on investments are reflected in the Statement of Financial Activities.
**l) Stocks**
Stocks are stated at the lower of cost and net realisable value. Allowance is therefore made for damaged and obsolete goods.
## **m) Pensions**
The Trust operates Defined Contribution Pension Schemes for which contributions are charged to the Statement of Financial Activities as they are incurred.
The Trust also contributes to the Teachers Pension Scheme (England and Wales) at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multi employer scheme and as such it is not possible to identify the assets and liabilities which are attributable to the Trust. Therefore, in accordance with FRS 102, the scheme is accounted for as a defined contribution scheme. The Trust also operates a Defined Benefit Pension Scheme, which was closed to future service accrual on 31 December 2007. The contributions are paid at rates agreed with the Scheme Actuary and, together with actuarial gains and losses, are charged to the Statement of Financial Activities.
## **n) Reserve funds**
Restricted funds are donated for a particular purpose the use of which is restricted for that purpose. Our policy is not to recognise the expense against Restricted income until the item is completed. Endowment funds are held as capital funds from which the income generated may be spent on the specific purposes provided upon the creation of the endowed fund.
The policy of the Trustees is to maintain in a designated fund such sums as they deem prudent for the future refurbishment and development of those assets used for the primary purpose of the Trust.
The Trustees have also established a Property and Equipment Fund for Assets tied up in the campus at Holybourne and thus not readily realisable.
The Trustees have also established a general reserve to provide working capital to create a buffer in case there is a sudden reduction in student numbers and to allow for fluctuations in investment returns. The Trustees’ policy is to seek to retain a buffer equal to three to six months of normal operating expenditure.
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **1. ACCOUNTING POLICIES (Continued)**
## **o) Cash and cash equivalents**
The policy for the management of cash and cash equivalents is defined by the financial commitments of the Trust. The Trust aims to keep funds on deposit until such time as they are needed to pay for designated projects, as highlighted within the notes to the accounts. Cash held on deposit with a maturity of three months or less are considered as cash equivalents.
## **p) Provisions**
- A provision is made in the accounts where the Trust has a legal or constructive financial obligation, that can be reliably estimated and for which there is an expectation that payment will be made.
## **q) Financial instruments**
The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade debtors, prepayments, creditors and provisions are initially recognised at transaction value and subsequently measured at their settlement value.
**2 DONATIONS, LEGACIES, GRANTS AND OTHER FUNDRAISING INCOME**
||**2020**
**Income**
**£000s**|**2020 Direct**
**Expenditure**
**£000s**|**2020**
**Support Costs**
**£000s**|**2019**
**Income**
**£000s**|**2019 Direct**
**Expenditure**
**£000s**|**2019**
**Support Costs**
**£000s**|
|---|---|---|---|---|---|---|
|Gifs and legacies
Unrestricted
Restricted
Endowed
Grants - Coronavirus Job Retenton Scheme|754
648
-
194|-
-
-
-|
-
-
-
-|
699
826
-
-|
-
-
-
-|-
-
-
-|
|Total|1,596|345|71|
1,525|483|89|
|Events
Lotery
Marketng|103
233
-|87
108
206|18
23
24|
191
218
-|124
186
124|21
24
13|
|Total|1,932|746|136|
1,934|917|148|
|**3**
**RENT**|||||||
||||||**2020**
**£000s**|**2019**
**£000s**|
|Letngs income
Estate rents and wayleaves|||||4
258|82
242|
||||||262|324|
|All items relate to unrestricted actvites.|||||||
|**4**
**INVESTMENT INCOME**|**4**
**INVESTMENT INCOME**|**4**
**INVESTMENT INCOME**|**4**
**INVESTMENT INCOME**|**4**
**INVESTMENT INCOME**|**4**
**INVESTMENT INCOME**|**4**
**INVESTMENT INCOME**|
|---|---|---|---|---|---|---|
||**Unrestricted**
**Funds**
**£000s**|**Restricted**
**Funds**
**£000s**|**Total**
**2020**
**£000s**|**Unrestricted**
**Funds**
**£000s**|**Restricted**
**Funds**
**£000s**|**Total**
**2019**
**£000s**|
|Income from trading subsidiary
Income from listed investments
Interest on fxed term deposits
Interest receivable|34
38
3
15|-
-
3
-|34
38
6
15|
102
65
11
16|-
-
5
-|102
65
16
16|
||90|3|93|
194|5|199|
A pension reserve is included within unrestricted funds to reflect the pension deficit on the Defined Benefit Pension Scheme.
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
42
43
NOTES TO THE FINANCIAL STATEMENTS
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **5 EXPENDITURE**
|||||**2020**
**Direct**
**Staf Costs**
**£000s**|**2020**
**Direct**
**Staf Costs**
**£000s**|
**2020**
**Other**
**Costs**
**£000s**|
**2020**
**Other**
**Costs**
**£000s**|**2020**
**Support**
**Costs**
**£000s**|**2020**
**Support**
**Costs**
**£000s**|**2020**
**Total**
**£000s**|**2020**
**Total**
**£000s**|**2019**
**Direct**
**Staf Costs**
**£000s**|**2019**
**Direct**
**Staf Costs**
**£000s**|**2019**
**Other**
**Costs**
**£000s**|**2019**
**Other**
**Costs**
**£000s**|**2019**
**Support**
**Costs**
**£000s**|**2019**
**Support**
**Costs**
**£000s**|**2019**
**Total**
**£000s**|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**Raising funds**
**Charitable actvites**
Teaching
Medical
Care
**Total charitable actvites**||||**480**
5,411
3,446
6,139
**14,996**||
**328**
375
368
243
**986**||**137**
2,370
1,206
3,671
**7,247**||**945**
8,156
5,020
10,053
**23,229**||**432**
5,002
3,345
5,987
**14,334**||
**485**
472
183
217
**872**||**148**
2,340
1,089
3,658
**7,087**||**1,065**
7,814
4,617
9,862
**22,293**|
|**TOTAL EXPENDITURE**||||**15,476**||
**1,314**||**7,384**||**24,174**||**14,766**||
**1,357**||**7,235**||**23,358**|
|The support costs can be analysed as follows;|||||||||||||||||||
||**2020 Raising**
**Funds**
**£000s**|
**2020**
**Teaching**
**£000s**|**2020**
**Medical**
**£000s**||**2020**
**Care**
**£000s**||**2020**
**Total**
**£000s**||**2019 Raising**
**Funds**
**£000s**||**2019**
**Teaching**
**£000s**||**2019**
**Medical**
**£000s**||**2019**
**Care**
**£000s**||**2019**
**Total**
**£000s**||
|Facilites
Depreciaton
Finance and Payroll
HR and Training
IT
Transport
Governance
Misc|47
23
7
16
16
4
17
7|
821
394
123
281
282
75
269
125|418
201
63
143
144
38
136
63||
1,272
610
190
437
438
116
415
193||
2,558
1,228
383
877
880
233
837
388||
54
24
7
18
12
4
15
14||851
378
104
284
202
67
234
220||396
176
48
132
94
31
109
103||1,330
590
163
445
315
104
365
346||2,631
1,168
322
879
623
206
723
683||
||**137**|
**2,370**|**1,206**||
**3,671**||
**7,384**||
**148**||**2,340**||**1,089**||**3,658**||**7,235**||
All support costs are divided between the four main headings using the full time equivalent staff numbers employed within those four sections each year. Included in the above figure is insurance at a cost of £5,704 (2019: £4,967) which was taken out over the year to cover Trustees, Governors and Officers of the Trust against legal liability arising from acts of neglect, error or omission.
||**2020**
**£000s**|**2019**
**£000s**|
|---|---|---|
|Total auditor's remuneraton is made up as follows:
Audit
Other services|27
4|23
4|
||**31**|**27**|
## For the Year Ended 31st August 2020
**6 STAFF COSTS AND TRUSTEE EXPENSES (continued)**
||**2020**
**£000s**|**2019**
**£000s**|
|---|---|---|
|Employer's pension costs comprise the following:
Teachers pension scheme (Note 15)
Employer contributon to Treloar group p ersonal pension scheme (Note 15)
Defned beneft pension scheme
Expected interest cost less expected return (Note 15)|399
928
365|239
844
648|
||**1,692**|**1,731**|
The average number of paid persons employed by the Trust during the year was as follows:
|||**Full Time Equivalents**|**Full Time Equivalents**|||
|---|---|---|---|---|---|
|||**2020**||**2019**||
|Teaching||173||173||
|Medical||88||83||
|Care (inc catering)||268||268||
|Facilites and ancillary||75||74||
|Fundraising||10||10||
|Marketng||2||1||
|Outreach projects||1||1||
|||617||610||
|Total average employees by headcount.||819||820||
|The following numbers of staf received remuneraton in excess of £60,000 in the year:||||||
|||**2020**||**2019**||
|£60,001 to £70,000||3||2||
|£80,001 to £90,000||1||1||
|£100,001 to £110,000||-||1||
|£110,001 to £120,000||-||1||
|£120,001 to £130,000||2||-||
|The total amount of employee benefts received by key management personnel for their services during the year is £492,034||||||
|(2019: £448,188). Key management is deemed to be the CEO, Principal and FD.||||||
Four of the above members of staff accrued benefits under the Treloar group personal pension scheme and £32,283 (2019: £31,604 - four) was paid by the Trust to the scheme in respect of these members.
The Trustees received no remuneration for their services as Trustees during the period (2019: Nil). One Trustee was reimbursed £77 during the period for travel and other costs incurred in connection with the work of the charity (2019: one trustee - £96).
## **6 STAFF COSTS AND TRUSTEE EXPENSES**
|**Total staf costs for the year were as follows:**|**2020**
**£000s**|**2019**
**£000s**|
|---|---|---|
|Wages and salaries
Terminaton payments
Employer's NIC
Employer's pension costs|15,992
22
1,207
1,692|15,334
10
1,131
1,731|
||**18,913**|**18,206**|
Not included in the above are benefits in kind amounting to £8,219 (2019: £9,459), which were received by staff during the year. Termination payments are in the form of a redundancy payment made on the reorganisation of one department during the year.
|**7**
**GAINS AND LOSSES ON INVESTMENTS**
**2020**
**2020**
**2020**
**2020**
**2019**
**2019**
**2019**
**2019**
**Unrestricted**
**Restricted**
**Endowed**
**Total Unrestricted**
**Restricted**
**Endowed**
**Total**
**Funds £000s Funds £000s Funds £000s**
**£000s Funds £000s Funds £000s Funds £000s**
**£000s**
Listed investments
178
-
14
192
416
-
33
449
Unrealised gains on investment property
-
-
-
-
46
-
-
46
Unrealised gains/(losses) on
listed investments
534
-
37
571
(382)
-
(31)
(413)
712
-
51
763
80
-
2
82|**7**
**GAINS AND LOSSES ON INVESTMENTS**
**2020**
**2020**
**2020**
**2020**
**2019**
**2019**
**2019**
**2019**
**Unrestricted**
**Restricted**
**Endowed**
**Total Unrestricted**
**Restricted**
**Endowed**
**Total**
**Funds £000s Funds £000s Funds £000s**
**£000s Funds £000s Funds £000s Funds £000s**
**£000s**
Listed investments
178
-
14
192
416
-
33
449
Unrealised gains on investment property
-
-
-
-
46
-
-
46
Unrealised gains/(losses) on
listed investments
534
-
37
571
(382)
-
(31)
(413)
712
-
51
763
80
-
2
82|**7**
**GAINS AND LOSSES ON INVESTMENTS**
**2020**
**2020**
**2020**
**2020**
**2019**
**2019**
**2019**
**2019**
**Unrestricted**
**Restricted**
**Endowed**
**Total Unrestricted**
**Restricted**
**Endowed**
**Total**
**Funds £000s Funds £000s Funds £000s**
**£000s Funds £000s Funds £000s Funds £000s**
**£000s**
Listed investments
178
-
14
192
416
-
33
449
Unrealised gains on investment property
-
-
-
-
46
-
-
46
Unrealised gains/(losses) on
listed investments
534
-
37
571
(382)
-
(31)
(413)
712
-
51
763
80
-
2
82|**7**
**GAINS AND LOSSES ON INVESTMENTS**
**2020**
**2020**
**2020**
**2020**
**2019**
**2019**
**2019**
**2019**
**Unrestricted**
**Restricted**
**Endowed**
**Total Unrestricted**
**Restricted**
**Endowed**
**Total**
**Funds £000s Funds £000s Funds £000s**
**£000s Funds £000s Funds £000s Funds £000s**
**£000s**
Listed investments
178
-
14
192
416
-
33
449
Unrealised gains on investment property
-
-
-
-
46
-
-
46
Unrealised gains/(losses) on
listed investments
534
-
37
571
(382)
-
(31)
(413)
712
-
51
763
80
-
2
82|**7**
**GAINS AND LOSSES ON INVESTMENTS**
**2020**
**2020**
**2020**
**2020**
**2019**
**2019**
**2019**
**2019**
**Unrestricted**
**Restricted**
**Endowed**
**Total Unrestricted**
**Restricted**
**Endowed**
**Total**
**Funds £000s Funds £000s Funds £000s**
**£000s Funds £000s Funds £000s Funds £000s**
**£000s**
Listed investments
178
-
14
192
416
-
33
449
Unrealised gains on investment property
-
-
-
-
46
-
-
46
Unrealised gains/(losses) on
listed investments
534
-
37
571
(382)
-
(31)
(413)
712
-
51
763
80
-
2
82|**7**
**GAINS AND LOSSES ON INVESTMENTS**
**2020**
**2020**
**2020**
**2020**
**2019**
**2019**
**2019**
**2019**
**Unrestricted**
**Restricted**
**Endowed**
**Total Unrestricted**
**Restricted**
**Endowed**
**Total**
**Funds £000s Funds £000s Funds £000s**
**£000s Funds £000s Funds £000s Funds £000s**
**£000s**
Listed investments
178
-
14
192
416
-
33
449
Unrealised gains on investment property
-
-
-
-
46
-
-
46
Unrealised gains/(losses) on
listed investments
534
-
37
571
(382)
-
(31)
(413)
712
-
51
763
80
-
2
82|**7**
**GAINS AND LOSSES ON INVESTMENTS**
**2020**
**2020**
**2020**
**2020**
**2019**
**2019**
**2019**
**2019**
**Unrestricted**
**Restricted**
**Endowed**
**Total Unrestricted**
**Restricted**
**Endowed**
**Total**
**Funds £000s Funds £000s Funds £000s**
**£000s Funds £000s Funds £000s Funds £000s**
**£000s**
Listed investments
178
-
14
192
416
-
33
449
Unrealised gains on investment property
-
-
-
-
46
-
-
46
Unrealised gains/(losses) on
listed investments
534
-
37
571
(382)
-
(31)
(413)
712
-
51
763
80
-
2
82|**7**
**GAINS AND LOSSES ON INVESTMENTS**
**2020**
**2020**
**2020**
**2020**
**2019**
**2019**
**2019**
**2019**
**Unrestricted**
**Restricted**
**Endowed**
**Total Unrestricted**
**Restricted**
**Endowed**
**Total**
**Funds £000s Funds £000s Funds £000s**
**£000s Funds £000s Funds £000s Funds £000s**
**£000s**
Listed investments
178
-
14
192
416
-
33
449
Unrealised gains on investment property
-
-
-
-
46
-
-
46
Unrealised gains/(losses) on
listed investments
534
-
37
571
(382)
-
(31)
(413)
712
-
51
763
80
-
2
82|**7**
**GAINS AND LOSSES ON INVESTMENTS**
**2020**
**2020**
**2020**
**2020**
**2019**
**2019**
**2019**
**2019**
**Unrestricted**
**Restricted**
**Endowed**
**Total Unrestricted**
**Restricted**
**Endowed**
**Total**
**Funds £000s Funds £000s Funds £000s**
**£000s Funds £000s Funds £000s Funds £000s**
**£000s**
Listed investments
178
-
14
192
416
-
33
449
Unrealised gains on investment property
-
-
-
-
46
-
-
46
Unrealised gains/(losses) on
listed investments
534
-
37
571
(382)
-
(31)
(413)
712
-
51
763
80
-
2
82|
|---|---|---|---|---|---|---|---|---|
||**2020**
**Unrestricted**
**Funds £000s**|**2020**
**Restricted**
**Funds £000s**|**2020**
**Endowed**
**Funds £000s**|**2020**
**Total**
**£000s**|**2019**
**Unrestricted**
**Funds £000s**|
**2019**
**Restricted**
**Funds £000s**|**2019**
**Endowed**
**Funds £000s**|**2019**
**Total**
**£000s**|
|Listed investments
Unrealised gains on investment property
Unrealised gains/(losses) on
listed investments|178
-
534|-
-
-|14
-
37|192
-
571|416
46
(382)|-
-
-|33
-
(31)|449
46
(413)|
||712|-|51|763|80|-|2|82|
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
44
45
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **8 TANGIBLE FIXED ASSETS**
|**Cost**|**Opening Balance**
**£000s**|**Additons / transfers**
**£000s**|**Closing Balance**
**£000s**|
|---|---|---|---|
|Freehold land and buildings
Plant, machinery and motor vehicles
Assets under constructon|34,694
4,308
288|267
392
275|34,961
4,700
563|
||39,290|934|40,224|
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **9 INVESTMENTS (continued)**
## **Current asset investments**
||**2020**
**Total**
**£000s**|**2019**
**Total**
**£000s**|
|---|---|---|
||||
|UK Investments - Deposits|24|1,421|
## **Listed investments**
|**Depreciaton**|**Opening Balance**
**£000s**|**Charge for Year**
**£000s**|**Closing Balance**
**£000s**|
|---|---|---|---|
|Freehold land and buildings
Plant, machinery and motor vehicles
Assets under constructon|(11,236)
(3,160)
-|(876)
(352)
-|(12,112)
(3,512)
-|
||(14,396)|(1,228)|(15,624)|
|**Net Book Value**|**Opening Balance**
**£000s**|**Additons less charges**
**£000s**|**Closing Balance**
**£000s**|
|---|---|---|---|
|Freehold land and buildings
Plant, machinery and motor vehicles
Assets under constructon|23,458
1,148
288|(609)
40
275|22,849
1,188
563|
||24,894|(294)|24,600|
## **9 INVESTMENTS**
## **Fixed asset investments**
||**2020**
**Total**
**£000s**|**2019**
**Total**
**£000s**|
|---|---|---|
|Listed investments - UK
Listed investments - non-UK
Investment propertes
Subsidiaries and associated undertakings
Unlisted investments
Bank deposits|4,759
2,422
570
25
19
407|3,777
2,856
570
25
19
222|
||8,202|7,469|
||**2020**
**Total**
**£000s**|**2019**
**Total**
**£000s**|
|---|---|---|
|Market value of assets as at 1 September
Additons
Disposal proceeds
Net unrealised investment gains/(losses)
Net realised investment gains|6,633
4,054
(4,269)
571
192|6,540
6,190
(6,132)
(414)
449|
|Market value of assets as at 31 August|7,181|6,633|
||||
|Historical cost as at 31 August|6,624|6,648|
## **Investment Properties (all UK)**
||**2020**
**Total**
**£000s**|**2019**
**Total**
**£000s**|
|---|---|---|
|Valuaton at 1 September
Revaluaton|570
-|524
46|
|Valuaton at 31 August|570|570|
||||
|Historical cost as at 31 August|126|126|
The Trustees have revalued Howards Farm at £456,500, based on the long term yield value of the property. The Trustees have revalued The Vale, Shirley at £113,000, based on the long term yield value of the property. All valuations will be continuously monitored to ensure material market valuations are reflected in the balance sheet.
## **Unlisted investments**
||**2020**
**Total**
**£000s**|**2019**
**Total**
**£000s**|
|---|---|---|
||||
|Cost and valuaton at 31 August|19|19|
|
The Trustees consider that the market value of the above investments is not signifcantly diferent from their cost.|||
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
46
47
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **9 INVESTMENTS (continued)**
## **Trading Subsidiary**
The Trust owns all the issued share capital of Treloar Enterprises Limited which shares its registered office with the Trust. Its principal activities are the lettings of facilities and the retail presence of the Trust both physically and online. The trading subsidiary gift aids its profit to the Trust. Its trading results for the year ended 31st August were:
||**2020**
**Total**
**£000s**|**2019**
**Total**
**£000s**|
|---|---|---|
|Turnover
Cost of sales|141
(100)|215
(117)|
|Gross proft|41|98|
|Administraton expenses
Proft on ordinary actvites before taxaton and interest
Taxaton
Proft on ordinary actvites afer taxaton
Gif aided payment - qualifying charitable donaton
Retained proft for the year
Retained proft brought forward
Retained proft carried forward|(7)
34
-
34
(34)
-
3
3|(5)
93
-
93
(93)
-
3
3|
|Net assets (all equity interests)|28|28|
## **10 DEBTORS**
||**2020**
**£000s**|**2019**
**£000s**|
|---|---|---|
|Fees billed in advance
Trade debtors
Other debtors
Prepayments|22
322
251
402|2,538
631
605
283|
||997|4,057|
All amounts shown under debtors are due for payment within one year.
## **11 CREDITORS: Amounts falling due within one year**
|**11 CREDITORS: Amounts falling due within one year**||||
|---|---|---|---|
||**2020**
**£000s**|**2019**
**£000s**||
|Trade creditors
Income in advance
Taxes & social security costs
Other creditors
Accruals
Amounts due to group undertaking|572
498
371
58
488
6|440
2,967
386
48
188
4||
||1,993|4,033||
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **12 PROVISIONS**
||**Fees**
**£000's**|**Other**
**£000's**|**Total**
**£000's**|
|---|---|---|---|
|At 1 September 2019
Increases in provision|120
197|231
30|351
227|
|At 31 August 2020|317|261|578|
|Amounts are expected to be incurred; - within one year|-|-|-|
Provisions include trade debtors, provision for untaken holiday, sickness provision and for employment disputes and where, due to extenuating circumstances queries maybe raised over services provided.
## **13 RESTRICTED & ENDOWED FUNDS**
||**Balance**
**31-Aug-19**
**£000s**|**Income**
**£000s**|**Expenditure**
**£000s**|**Transfers**
**in/(out)**
**£000s**|**Gains on**
**Investments**
**£000s**|**Balance**
**31-Aug-20**
**£000s**|
|---|---|---|---|---|---|---|
|**Endowed Funds**
Billesden Fund
Rossington Bursary Fund|536
935|-
-|-
-|-
-|51
-|587
935|
|**Total Endowed funds**|**1,471**|**-**|**-**|**-**|**51**|**1,522**|
|**Specifc appeals fund**
Specifc equipment appeals
Specifc building appeals|464
8,301|-
-|(108)
(290)|170
-|-
-|526
8,011|
|Total specifc appeals fund|8,765|-|(398)|170|-|8,537|
|**Other restricted funds**
Billesden fund
Campbell sports fund
IMPact
Assistve technology
Transiton
Motor Vehicles
Pushing the boundaries
Dietcian
AAC, AT, Physio and other Equipment
Outdoor learning
Outdoor Learning Centre
Key Worker Accommodaton
Rossington restricted legacy
Acoustc Monitoring
Other|18
29
25
-
-
150
12
-
47
27
218
71
6
7
131
741|20
10
5
2
90
8
2
30
98
-
131
32
3
203
54
688|(19)
(8)
(10)
(2)
(90)
-
-
(30)
(12)
(1)
-
-
-
-
(34)
(206)|-
-
-
-
-
(21)
-
-
(34)
-
-
-
-
(115)
-
(170)|-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|19
31
20
-
-
137
14
-
99
26
349
103
9
95
151
1,053|
|**Total Restricted Funds**|**9,506**|**688**|**(604)**|**-**|**-**|**9,590**|
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
48
49
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
**13 RESTRICTED & ENDOWED FUNDS (continued)**
||**Balance**
**31-Aug-18**
**£000s**|**Income**
**£000s**|**Expenditure**
**£000s**|**Transfers**
**in/(out)**
**£000s**|**Gains on**
**Investments**
**£000s**|**Balance**
**31-Aug-19**
**£000s**|
|---|---|---|---|---|---|---|
|**Endowed Funds**
Billesden Fund
Rossington Bursary Fund|534
935|-
-|-
-|-
-|2
-|536
935|
|Total Endowed funds|1,469|-|-|-|2|1,471|
|**Specifc appeals fund**
Specifc equipment appeals
Specifc building appeals|431
8,443|-
-|(95)
(285)|128
143|-
-|464
8,301|
|Total specifc appeals fund|8,874|-|(380)|271|-|8,765|
|Other restricted funds
Billesden fund
Campbell sports fund
IMPact
Assistve technology
Transiton
Motor Vehicles
Pushing the boundaries
Dietcian
AAC, AT, Physio and other Equipment
Outdoor learning
Outdoor Learning Centre
Key Worker Accommodaton
Campbell Court project
Rossington restricted legacy
Robotc arm
Other|20
29
29
-
1
101
24
-
64
24
-
-
56
1
8
84|13
16
14
30
101
55
11
33
143
5
218
71
69
5
30
107|(15)
(16)
(18)
(30)
(102)
(6)
(23)
(33)
(57)
(2)
-
-
-
-
-
(48)|-
-
-
-
-
-
-
-
(103)
-
-
-
(125)
-
(38)
(5)|-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|18
29
25
-
-
150
12
-
47
27
218
71
-
6
-
138|
||441|921|(350)|(271)|-|741|
||||||||
|Total Restricted Funds|9,315|921|(730)|-|-|9,506|
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **13 RESTRICTED & ENDOWED FUNDS (continued)**
## **ENDOWED FUNDS**
Where donations are received and are to be invested in a fund and the use of that fund is restricted to the income generated from it, a permanent endowment is created and disclosed as such.
was established in 1984 by the Merchant Taylors’ and Skinners’ Companies to provide assistance with the aftercare and vocational training of students, includes the Billesden officer post which is a research post which provides data on Treloar leavers in order to inform the priorities and direction of the transition strategy.
**The Billesden Fund Rossington Bursary Fund**
this was created from a legacy which states that the income from the investment of the fund shall be used to provide access to education for an 'older' age group of young disabled students who are socially disadvantaged.
## **RESTRICTED FUNDS**
Where donations are received for particular items of expenditure, such amounts are credited to the Trust’s restricted funds. If an operational area of the Trust discharges such expenditure out of its unrestricted funds, the amount is transferred out of the restricted funds to re-imburse the expenditure. Other expenditure is paid directly out of the restricted funds.
**Specific appeals fund** capital funds from appeals for new buildings and specific equipment including the new Vision Treloar's buildings, Brewer House hall of residence, Evans House hall of residence, minibus, Treloar’s Direct assets and other special equipment. **The Billesden fund** income from the endowment above and donations from the Merchant Taylors’ and Skinners’ Companies is used to provide assistance with the aftercare and vocational training of students, including the Billesden officer post which is a research post which provides data on Treloar leavers in order to inform the priorities and direction of the transition strategy. **Campbell Sports fund** enables students to participate in sailing and other sporting activities. **The Independent Mobility Project (IMPact)** provides the most appropriate wheelchair for every student in need at the College and the School, to give them optimum independence. **Assistive Technology fund** supports assistive technology work carried out in the Trust. **Transition** providing support to students to prepare them for the transition from Treloar's back into the community, supporting independence and helping them realise their full potential. **Motor Vehicles** funds raised for the acquisition of motor vehicles including coach, minibus and adapted vehicles. **Pushing the boundaries** has been established to raise funds to allow students to experience activities not normally associated as being available to people with disabilities such as abseiling and rock climbing. **Dietician** supports the work of an on site dietician. **AAC, Assistive technology and physio equipment** support the equipment purchases of the speech & language therapists (alternative & augmentative communications equipment), the physiotherapists and the assistive technology engineers respectively. **Outdoor learning** enriching the outdoor areas of our campus to provide an interactive learning environment for our students. **Outdoor Learning Centre** set up to raise funds for the new Centre to be built on campus to expand provision for students and external visitors. **Key Worker Accommodation** set up to raise funds to build a new staff living quarters on site. **Campbell Court project** funds raised for the capital project being completed at our Independent Adult Living project. **Rossington Income Fund** income from the endowment above to be used to provide access to education for an 'older' age group of young disabled students who are socially disadvantaged. **Acoustic Monitoring** funds raised to pay for the installation of new nurse call systems in the houses. **Robotic Arm** initial funds raised for the purchase of a robotic arm for the Assistive Technology department in 2018/19.
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
50
51
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **14 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
||**2020**
**Unrestricted**
**Funds**
**£000s**|**2020**
**Restricted**
**Funds**
**£000s**|**2020**
**Endowed**
**Funds**
**£000s**|**2020**
**Total**
**£000s**|**2019**
**Unrestricted**
**Funds**
**£000s**|**2019**
**Restricted**
**Funds**
**£000s**|**2019**
**Endowed**
**Funds**
**£000s**|**2019**
**Total**
**£000s**|
|---|---|---|---|---|---|---|---|---|
|Tangible fxed assets
Investments
Net current assets|16,063
7,658
2,091|8,537
-
1,053|-
544
978|24,600
8,202
4,122|
16,129
6,994
2,411|8,765
-
741|-
475
996|24,894
7,469
4,148|
|Total assets less current liabilites|25,812|9,590|1,522|36,924|
25,534|9,506|1,471|36,511|
|Provisions
Pension scheme liability|(578)
(12,715)|-
-|-
-|(578)
(12,715)|
(351)
(10,620)|-
-|-
-|(351)
(10,620)|
|**TOTAL NET ASSETS**|**12,519**|**9,590**|**1,522**|**23,631**|
**14,563**|**9,506**|**1,471**|**25,540**|
## **15 PENSIONS**
The total pension cost charged to the Statement of Financial Activities for the Year, excluding the movement on actuarial gains and losses, for all the schemes was £1,691,928 (2019: £1,730,946).
## **Teachers Pension Scheme (England and Wales)**
Under the definitions set out in Financial Reporting Standard 102, the Teacher's Pension Scheme (TPS) is a multi-employer pension scheme. As the TPS is underwritten by central government and the Trust has no future obligation to make contributions to the scheme, this is effectively a defined contribution scheme in so far as it affects the Trust. Contributions by the Trust during the period totalled £398,625 (2019: £238,612).
As at 31 August 2020 contributions were being made into the scheme on behalf of 46 (2019: 40) members of staff. The last actuarial valuation dated March 2018 showed that the Teachers Pension Scheme (England and Wales) is in deficit. Under current accounting regulations there is no requirement for any employer to account for its share of the deficit.
## **Treloar Group Personal Pension Scheme**
The Trust operates a defined contribution scheme to provide retirement benefits for its employees who are not members of the Teachers Superannuation Scheme. Because the Trust makes contributions of at least 1.5% of participating salaries to the Group Personal Pension Scheme, it does not have to offer a Stakeholder Plan. Contributions by the Trust during the period totalled £928,303 (2019: £844,334). At 31 August 2020 contributions were being made into the Scheme on behalf of 792 (2019: 671) members of staff.
**Treloar Defined Benefit Pension Scheme**
The Trust operates the Federated Pension Scheme for Treloar Trust (the Scheme), a UK registered trust based pension scheme that provides defined benefits. Pension benefits are linked to the members' final pensionable salaries and service at their retirement (or date of leaving if earlier). The Pension Scheme Trustee is responsible for running the Scheme in accordance with the Scheme's Trust Deed and Rules, which sets out their powers. The Pension Scheme Trustee is required to act in the best interests of the beneficiaries of the Scheme. There are two categories of pension scheme members: deferred members; current and former employees of the Trust who are not yet in receipt of pension, and Pensioner members: in receipt of pension (some of whom are insured with Aviva and LV).
The Pension Scheme Trustee is required to carry out an actuarial valuation every 3 years, The actuarial valuation of the Scheme was performed by the Scheme Actuary for the Pension Scheme Trustees as at 31 March 2018. This valuation revealed a funding shortfall of £9.1 million. In respect of the deficit in the Scheme as at 31 March 2018, the Trust has agreed to pay £540,000 pa for 19 years. This contribution will increase at 2.7%pa at each 1 July with the first increase due on 1 July 2020. The Trust therefore expects to pay £557,000 to the Scheme during the accounting year beginning 1 September 2020.
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **15 PENSIONS (continued)**
|**PRINCIPAL ASSUMPTIONS**
**31-Aug-20**
**31-Aug-19**
**% pa**
**% pa**
Discount rate
1.5
1.7
Retail Prices Index (RPI) Infaton
2.9
3.1
Consumer Prices Index (CPI) Infaton
2.2
2.1
Rate of increase to pensions in payment:
Pre 88 GMP
0.0%
0.0%
Post 88 GMP
2.0%
1.9%
Pre 97 XS
0.0%
0.0%
97-06 pension
2.9%
3.0%
Post 06 pension
2.2%
2.2%
Revaluaton of deferred pensions in excess of GMP
2.2%
2.1%
Underpin to revaluaton of scale pension (including GMP)
3.0%
3.0%
Retrement age and applicaton of retrement factor adjustment
Assume retre at 60 with retrement
Assume retre at 60 with retrement
factor adjustment applied for
factor adjustment applied for
members stll in service and under
members stll in service and under
age 60 on 1 October 2007
age 60 on 1 October 2007
Mortality before and afer retrement
100% SP3PMA_Middle/100%
102% (males)/110% (females) of
S3PFA_Middle CMI 2019 [1.25%]
S3PA CMI_2018_M/F [1.25%]
**31-Aug-20**
**31-Aug-19**
**Age**
**Age**
Life expectancy of male aged 60 at balance sheet date
85.8
86.3
Life expectancy of male aged 60 in 20 years from balance sheet date
87.4
87.7
Life expectancy of female aged 60 at balance sheet date
88.5
88.2
Life expectancy of female aged 60 in 20 years from balance sheet date
90.0
89.7
**Asset breakdown**
The fair value of the assets of the Scheme was:
**31-Aug-20**
**31-Aug-19**
**£000's**
**£000's**
Newton Managed Targeted Return Fund
8,736
11,773
Standard Life Global Absolute Return Strategies
-
2,584
BNY Mellon Global Dynamic Bond Fund
2,683
6,253
Standard Life Liability Aware Absolute Return Real
8,719
11,087
Standard Life Deposit and Treasury Series 9
1,281
-
M&G Total Return Credit Fund
1,360
-
Baillie Giford Mult Asset Growth Fund
1,352
-
BNY Mellon Sustainable Global Dynamic Bond Fund
3,618
-
Partners Fund
3,100
-
Annuites
1,451
1,506
Trustee bank account/NCA
283
182
**Total**
**32,583**
**33,385**|**PRINCIPAL ASSUMPTIONS**
**31-Aug-20**
**31-Aug-19**
**% pa**
**% pa**
Discount rate
1.5
1.7
Retail Prices Index (RPI) Infaton
2.9
3.1
Consumer Prices Index (CPI) Infaton
2.2
2.1
Rate of increase to pensions in payment:
Pre 88 GMP
0.0%
0.0%
Post 88 GMP
2.0%
1.9%
Pre 97 XS
0.0%
0.0%
97-06 pension
2.9%
3.0%
Post 06 pension
2.2%
2.2%
Revaluaton of deferred pensions in excess of GMP
2.2%
2.1%
Underpin to revaluaton of scale pension (including GMP)
3.0%
3.0%
Retrement age and applicaton of retrement factor adjustment
Assume retre at 60 with retrement
Assume retre at 60 with retrement
factor adjustment applied for
factor adjustment applied for
members stll in service and under
members stll in service and under
age 60 on 1 October 2007
age 60 on 1 October 2007
Mortality before and afer retrement
100% SP3PMA_Middle/100%
102% (males)/110% (females) of
S3PFA_Middle CMI 2019 [1.25%]
S3PA CMI_2018_M/F [1.25%]
**31-Aug-20**
**31-Aug-19**
**Age**
**Age**
Life expectancy of male aged 60 at balance sheet date
85.8
86.3
Life expectancy of male aged 60 in 20 years from balance sheet date
87.4
87.7
Life expectancy of female aged 60 at balance sheet date
88.5
88.2
Life expectancy of female aged 60 in 20 years from balance sheet date
90.0
89.7
**Asset breakdown**
The fair value of the assets of the Scheme was:
**31-Aug-20**
**31-Aug-19**
**£000's**
**£000's**
Newton Managed Targeted Return Fund
8,736
11,773
Standard Life Global Absolute Return Strategies
-
2,584
BNY Mellon Global Dynamic Bond Fund
2,683
6,253
Standard Life Liability Aware Absolute Return Real
8,719
11,087
Standard Life Deposit and Treasury Series 9
1,281
-
M&G Total Return Credit Fund
1,360
-
Baillie Giford Mult Asset Growth Fund
1,352
-
BNY Mellon Sustainable Global Dynamic Bond Fund
3,618
-
Partners Fund
3,100
-
Annuites
1,451
1,506
Trustee bank account/NCA
283
182
**Total**
**32,583**
**33,385**|**PRINCIPAL ASSUMPTIONS**
**31-Aug-20**
**31-Aug-19**
**% pa**
**% pa**
Discount rate
1.5
1.7
Retail Prices Index (RPI) Infaton
2.9
3.1
Consumer Prices Index (CPI) Infaton
2.2
2.1
Rate of increase to pensions in payment:
Pre 88 GMP
0.0%
0.0%
Post 88 GMP
2.0%
1.9%
Pre 97 XS
0.0%
0.0%
97-06 pension
2.9%
3.0%
Post 06 pension
2.2%
2.2%
Revaluaton of deferred pensions in excess of GMP
2.2%
2.1%
Underpin to revaluaton of scale pension (including GMP)
3.0%
3.0%
Retrement age and applicaton of retrement factor adjustment
Assume retre at 60 with retrement
Assume retre at 60 with retrement
factor adjustment applied for
factor adjustment applied for
members stll in service and under
members stll in service and under
age 60 on 1 October 2007
age 60 on 1 October 2007
Mortality before and afer retrement
100% SP3PMA_Middle/100%
102% (males)/110% (females) of
S3PFA_Middle CMI 2019 [1.25%]
S3PA CMI_2018_M/F [1.25%]
**31-Aug-20**
**31-Aug-19**
**Age**
**Age**
Life expectancy of male aged 60 at balance sheet date
85.8
86.3
Life expectancy of male aged 60 in 20 years from balance sheet date
87.4
87.7
Life expectancy of female aged 60 at balance sheet date
88.5
88.2
Life expectancy of female aged 60 in 20 years from balance sheet date
90.0
89.7
**Asset breakdown**
The fair value of the assets of the Scheme was:
**31-Aug-20**
**31-Aug-19**
**£000's**
**£000's**
Newton Managed Targeted Return Fund
8,736
11,773
Standard Life Global Absolute Return Strategies
-
2,584
BNY Mellon Global Dynamic Bond Fund
2,683
6,253
Standard Life Liability Aware Absolute Return Real
8,719
11,087
Standard Life Deposit and Treasury Series 9
1,281
-
M&G Total Return Credit Fund
1,360
-
Baillie Giford Mult Asset Growth Fund
1,352
-
BNY Mellon Sustainable Global Dynamic Bond Fund
3,618
-
Partners Fund
3,100
-
Annuites
1,451
1,506
Trustee bank account/NCA
283
182
**Total**
**32,583**
**33,385**|
|---|---|---|
||**31-Aug-20**
**% pa**|**31-Aug-19**
**% pa**|
|Discount rate
Retail Prices Index (RPI) Infaton
Consumer Prices Index (CPI) Infaton
Rate of increase to pensions in payment:
Pre 88 GMP
Post 88 GMP
Pre 97 XS
97-06 pension
Post 06 pension
Revaluaton of deferred pensions in excess of GMP
Underpin to revaluaton of scale pension (including GMP)
Retrement age and applicaton of retrement factor adjustment
Mortality before and afer retrement|1.5
2.9
2.2
0.0%
2.0%
0.0%
2.9%
2.2%
2.2%
3.0%
Assume retre at 60 with retrement
factor adjustment applied for
members stll in service and under
age 60 on 1 October 2007
100% SP3PMA_Middle/100%
S3PFA_Middle CMI 2019 [1.25%]|1.7
3.1
2.1
0.0%
1.9%
0.0%
3.0%
2.2%
2.1%
3.0%
Assume retre at 60 with retrement
factor adjustment applied for
members stll in service and under
age 60 on 1 October 2007
102% (males)/110% (females) of
S3PA CMI_2018_M/F [1.25%]|
||**31-Aug-20**
**Age**|**31-Aug-19**
**Age**|
|Life expectancy of male aged 60 at balance sheet date
Life expectancy of male aged 60 in 20 years from balance sheet date
Life expectancy of female aged 60 at balance sheet date
Life expectancy of female aged 60 in 20 years from balance sheet date
**Asset breakdown**|85.8
87.4
88.5
90.0|86.3
87.7
88.2
89.7|
|The fair value of the assets of the Scheme was:|**31-Aug-20**
**£000's**|**31-Aug-19**
**£000's**|
|Newton Managed Targeted Return Fund
Standard Life Global Absolute Return Strategies
BNY Mellon Global Dynamic Bond Fund
Standard Life Liability Aware Absolute Return Real
Standard Life Deposit and Treasury Series 9
M&G Total Return Credit Fund
Baillie Giford Mult Asset Growth Fund
BNY Mellon Sustainable Global Dynamic Bond Fund
Partners Fund
Annuites
Trustee bank account/NCA|8,736
-
2,683
8,719
1,281
1,360
1,352
3,618
3,100
1,451
283|11,773
2,584
6,253
11,087
-
-
-
-
-
1,506
182|
|**Total**|**32,583**|**33,385**|
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
52
53
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **15 PENSIONS (continued)**
**Net defined benefit asset (liability)**
||**31-Aug-20**
**£000s**|**31-Aug-19**
**£000s**|
|---|---|---|
|Fair value of Scheme assets
Present value of defned beneft obligaton|32,583
(45,298)|33,385
(44,005)|
|**Defned beneft (liability) recognised in the balance sheet**|**(12,715)**|**(10,620)**|
**Total expense recognised in Statement of Financial Activities**
||**31-Aug-20**
**£000s**|**31-Aug-19**
**£000s**|
|---|---|---|
|Administraton expenses
Past Service Cost
Net interest on the net defned beneft liability
|187
-
178|250
195
203|
|**Total recognised in the Statement of Financial Actvites**|**365**|**648**|
**Total amounts taken to Other Comprehensive Income**
||**31-Aug-20**
**£000s**|**31-Aug-19**
**£000s**|
|---|---|---|
|Actuarial (loss) / return on scheme assets less interest
Remeasurement (losses) - actuarial (losses)|(356)
(1,916)|3,388
(5,945)|
|**Remeasurement (loss) recognised in**
**Other Comprehensive Income**|**(2,272)**|**(2,557)**|
**The return on assets was:**
||**31-Aug-20**
**£000s**|**31-Aug-19**
**£000s**|
|---|---|---|
|Interest income
Return on assets less interest income|559
(356)|772
3,388|
|**Total return on assets**|203|4,160|
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **15 PENSIONS (continued)**
|**15 PENSIONS (contnued)**|**15 PENSIONS (contnued)**|**15 PENSIONS (contnued)**|
|---|---|---|
|**Reconciliaton to the Statement of Financial Positon**|||
||**31-Aug-20**
**£000s**|**31-Aug-19**
**£000s**|
|Market value of assets
Present value of defned beneft obligaton
Funded status|32,583
(45,298)
(12,715)|
33,385
(44,005)
(10,620)|
|**Pension (liability) recognised in the**
**Financial Statements**|(12,715)|(10,620)|
|**Changes in the present value of the defned beneft obligaton**|||
||**31-Aug-20**
**£000s**|**31-Aug-19**
**£000s**|
|Present value of defned beneft obligaton at beginning of period
Benefts paid including expenses
Past Service Cost
Interest cost
Remeasurement losses - assumptons actuarial losses
Remeasurement losses - experience actuarial losses|44,005
(1,359)
-
737
1,909
6|38,080
(1,190)
195
975
4,908
1,037|
|**Present value of defned beneft obligaton at end of period**|**45,298**|**44,005**|
|**Changes in the fair value of assets**|||
||**31-Aug-20**
**£000s**|**31-Aug-19**
**£000s**|
|Fair value of Scheme assets at the beginning of period
Interest income
Remeasurement (losses) and gains - Return on scheme assets excluding interest income
Contributons by Employer
Administraton expenses
Benefts paid including expenses|33,385
559
(356)
541
(187)
(1,359)|30,125
772
3,388
540
(250)
(1,190)|
|**Fair value of Scheme assets at the end of period**|**32,583**|**33,385**|
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
54
55
NOTES TO THE FINANCIAL STATEMENTS
## NOTES TO THE FINANCIAL STATEMENTS
## For the Year Ended 31st August 2020
## **16 MOVEMENT ON UNRESTRICTED RESERVES**
||**Balance**
**01-Sep-19**
**£000s**|**Net**
**income**
**£000s**|**Transfers**
**£000s**|**Gains and**
**losses**
**£000s**|**Balance**
**31-Aug-20**
**£000s**|
|---|---|---|---|---|---|
|Unrestricted Fund held as Tangible Fixed Assets:
– Property and Equipment Fund
Designated Fund: Repairs and Improvement Fund
General reserves
Defned beneft pension scheme fund|15,843
364
8,976
(10,620)|-
-
51
177|(275)
(32)
307
-|-
-
-
(2,272)|15,568
332
9,334
(12,715)|
||14,563|228|-|(2,272)|12,519|
## For the Year Ended 31st August 2020
## **19 TAXATION STATUS**
Treloar Trust is a registered charity and no tax is payable on its charitable income. The Trust is not registered for VAT and expenditure is shown inclusive of VAT where incurred.
## **20 SHARE CAPITAL**
The Trust has no share capital and is limited by guarantee. The liability of each member in the event of a winding up, as stated in the Articles of Association, is limited to £1.
## **21 RELATED PARTY DISCLOSURE**
The balance due at 31 August 2020 to Treloar Enterprises Limited (TEL), the Trust’s trading subsidiary, by the Trust was £5,796 (2019: £4,400). Transactions between the Trust and TEL comprised £94,364 (2019: £163,442), including a donation of profits of £33,844 (2019: £93,467).
The Trust granted to TEL the head lease over flats at Campbell Court. In the year ended 31 August 2020 the Trust was due £60,480 (2019: £60,480) in rent and service charges for these flats.
## **22 ACCOUNTING ESTIMATES AND JUDGEMENTS**
||**Balance**
**01-Sep-18**
**£000s**|**Net**
**income**
**£000s**|**Transfers**
**£000s**|**Gains and**
**losses**
**£000s**|**Balance**
**31-Aug-19**
**£000s**|
|---|---|---|---|---|---|
|Unrestricted Fund held as Tangible Fixed Assets:
– Property and Equipment Fund
Designated Fund: Repairs and Improvement Fund
General reserves
Defned beneft pension scheme fund|16,083
396
9,027
(7,955)|-
-
(323)
(108)|(240)
(32)
272
-|-
-
-
(2,557)|15,843
364
8,976
(10,620)|
||17,551|(431)|-|(2,557)|14,563|
The property and equipment fund represents the net book value of the tangible fixed assets held for charitable purposes less the amount financed by restricted funds. Since this fund represents existing fixed assets (mainly buildings) it cannot be converted easily into cash and therefore cannot be used to fund other activities. It does not include assets under construction as these are not construed as being relevant for this reserve calculation as incomplete.
In preparing the financial statements, the trustees are required to make estimates and judgements. The matters considered below are considered to be the most important in understanding the judgements that are involved in preparing the financial statements and the uncertainties that could impact amounts reported in the results of operations, financial position and cashflows. Accounting policies are shown in note 1 to the financial statements.
## **Defined Benefit Pension Scheme**
## Actuarial assumptions in respect of defined benefit pension scheme:
The application of actuarial assumptions relating to the defined benefit pension scheme is incorporated in the financial statements in accordance with FRS102. In applying FRS102, advice is taken from an independent qualified actuary. In this context, significant judgement is exercised in a number of areas, including future changes in inflation, mortality rates and the selection of appropriate discount rates.
## Pension scheme deficit reduction payments:
As explained in note 15, there is a deficit reduction plan in place in respect of the defined benefit pension scheme. FRS102 requires a liability to be recognised in respect of the present value of future contributions payable under the terms of the deficit recovery plan. The incorporation of this liability in the financial statements involves the exercise of judgement in a number of areas, including the selection of an appropriate discount rate.
## **Bad debt provision**
The repairs and improvement fund represents money set aside by the Trustees towards the finance of special maintenance work and planned major improvements to facilities. We expect to pay £166,000 of these within the next twelve months and all within two years.
The Trustees have also established free reserves to provide working capital to create a buffer in case there is a sudden reduction in student numbers and to allow for fluctuations in investment returns. The Trustees’ policy is to seek to retain a buffer equal to three-six months of normal operating expenditure.
Consideration is given to debtors which are past their due date as at the balance sheet date and a provision is made against these debts based on both specific information and experience.
## **Investment Properties**
Values of investment properties are constantly monitored to ensure that material fair values are reflected within the financial statements. These include judgements on the correct basis of valuation to apply, yield values of these properties where this basis is used and assessment of the most appropriate yield basis. All of these matters include some form of uncertainty around these judgements.
## **17 ENTITLEMENT TO LEGACIES**
The Trust is aware of possible future receipts from legacies, arising on deaths prior to 31 August 2020 where the exact sums are not quantifiable and these are believed to be in the order of £23,865 (2019: £20,540).
## **18 CAPITAL COMMITMENTS**
As at 31 August 2020, the Trust had contracted to purchase a modular building at a cost of £136,751 (2019 - nil).
Treloar Trust | Financial Statements
Treloar Trust | Financial Statements
56
57
## Thank you!
We’d like to say ‘Thank you’ to all our staff, volunteers, students, families, donors, and patrons, who have all pulled together, worked hard and ensured that Treloar’s continues to thrive throughout a challenging year for all of us.
At the end of the summer term Our Royal Patron, HRH The Countess of Wessex GCVO, took the time to join a video call with members of staff to thank them for their hard work and kindness shown during the pandemic adding _“I am always so impressed with the work of Treloar’s and this just shows that you have stepped up and coped with what has been hurled at us all out of the blue. The families must be so pleased that their children are lucky enough to go to Treloar’s and so grateful. This makes me even prouder to be part of Treloar’s. Thank you so much.”_
Treloar Trust | Financial Statements
58
_“It is truly a magical place. Well done to everyone who is involved in making Treloar’s such a unique and special place.”_ Treloar’s supporter
## **Treloar Trust**
Powell Drive, Holybourne, Alton, Hampshire GU34 4GL
Treloar School and College
@Treloars
**----- Start of picture text -----**
@Treloars
**----- End of picture text -----**
A company limited by guarantee. Registered in England No. 4466362 Charity number 1092857
Treloarschoolandcollege
## **Contact**
T: 01420 547400 E: info@treloar.org.uk W: www.treloar.org.uk