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2020-08-31-accounts

ST ALBANS SCHOOL

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

Company limited by guarantee Registered in England No. 4400125 Charity No. 1092932

ST ALBANS SCHOOL

CONTENTS

Page
Annual Report of the Governors 2
Independent Auditor’s Report 22
Consolidated Statement of Financial Activities 25
Consolidated Summary Income and Expenditure Account 26
Consolidated and School Balance Sheets 27
Consolidated Cash Flow Statement 28
Notes to the Financial Statements 30-48

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ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

The St Albans School Governors present their Annual Report for the year ended 31 August 2020 under the Charities Act 2011, including the Directors’ and Strategic Reports, under the Companies Act 2006, together with the audited financial statements for the year.

CONSTITUTION AND OBJECTS

St Albans School was founded in AD948 by Abbot Wulsin and is believed to have operated as a school without break since that time.

It was incorporated on 21 March 2002 as a company limited by guarantee and not having a share capital (registered in England, No.4400125). The School is registered with the Charity Commission as a registered educational charity No.1092932. The undertaking comprising the former charitable trust of the same name was transferred to the company with effect from 31 August 2003. The registered office and address of the School is at Abbey Gateway, St Albans, Hertfordshire, AL3 4HB.

The School’s Objects and principal activity, as set out in the Memorandum and Articles, are to advance the education and training, by the provision and conduct, in or near St Albans, of a day school for boys and also for girls in the Sixth Form.

AIMS, OBJECTIVES AND ACTIVITIES

The School is a secondary day school for boys between the ages of 11-18 with girls in the Sixth Form.

In furtherance of the Objects for the public benefit, the School operates premises in St Albans, has established and administers bursaries, grants, awards and other benefactions, and acts as the trustee and manager of property, endowments, bequests and gifts given or established in pursuance of these Objects. The School also maintains its buildings and endowed land, with its Scheduled Ancient Monument and other listed buildings considered of national importance.

The Ethos, Vision, Goal and Aims are set out in the School’s current Strategic Development Plan, which was approved by the Governors in June 2016. These are:

Motto

NON NOBIS NATI (born not for ourselves)

Ethos

Over seventeen hundred years ago Saint Alban, a seeker after truth, lived and died in this place. Today, more than one thousand years since its foundation, this School which bears his name continues to foster scholarship and intellectual enquiry at the heart of an exceptional holistic education. Enriched by inspirational teaching, wideranging academic, cultural and sporting opportunities and strong pastoral care our pupils develop a love of learning together with the values, skills and qualities to enable them to live successful and happy adult lives in an everchanging world, faithful to the altruism of our motto.

Vision

To help each pupil flourish intellectually and personally, developing self-knowledge and self-confidence in order to find meaning and purpose in life.

Goal

To enhance the School’s reputation as one of the UK’s leading institutions for academic excellence at the heart of an exceptional holistic and value-rich education that develops intellectual, personal and interpersonal potential, attractive to pupils, parents and teachers from across the UK and around the world.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

Aims

We aim to deliver our ethos and values, realise our vision and achieve our goal by:

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STRATEGIES TO ACHIEVE THE SCHOOL’S OBJECTIVES

In setting our objectives and planning activities, Governors have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee charging.

During the period of this report, the School maintained excellent results at A level and at GCSE. Sporting standards and participation remain excellent, high quality musical and theatrical performances were maintained and an active programme of tours was achieved, expanding pupils’ horizons. Community and service activities continue to expand; staff training and facility improvements continue.

In October 2014 the School was inspected by the Independent School Inspectorate, whose report records, among other comments that “The achievement of pupils across all ages is exceptional .” and “Pupils strive for excellence in all aspects of their school life.” . Since then, the School has been subject to an ISI Regulatory Compliance Inspection (October 2018), and was found to be compliant. The reports are available on the ISI website and on the School’s website.

Principal activities of the year

The School provides education in St Albans to boys from the age of 11 and girls in the Sixth Form. This year the School averaged at 860 pupils (2019 – 860) throughout the financial year and opened in September 2020 with 891 pupils.

The School population is at an historic high and demand for places remains strong. This means that admission is academically competitive as evidenced by the increasing academic ability of the intakes at 11+ and 13+. This gives us confidence that the School can operate at high capacity for the foreseeable future without compromising its resolve to maintain the high academic standards with which the School has long been identified.

This year brought with it the Covid-19 pandemic. In accordance with Government requirements, the School site was closed from March 2020 to September 2020. During this time, pupils studied remotely, being provided with a full timetable of interactive lessons via electronic platforms. The School and its teachers worked hard to deliver this, which was well received. Public exams were also cancelled, leaving pupils to receive Centre Assessment Grades (estimates made by teachers of the most likely grade that a pupil would have been awarded had the exams proceeded). All of this brought operational and financial consequences for the School which are covered in the relevant sections below.

January 2020 marked the completion and opening of the new Corfield Building. This new building is principally a mathematics teaching facility with ten classrooms and a communal study area. It also has a three-lane rifle range, an armoury for the storage of rifles and ammunition and facilities for the CCF and Duke of Edinburgh. The School is grateful for the major donations, especially from Mr Charles Corfield, which have paid for the entirety of this facility.

Grant-making policy

The Governors regard bursary awards as important in ensuring that children from families who would otherwise not be able to afford the full School fee can access the education the School offers. All pupils who meet the entrance requirements, whose parents meet the financial conditions, may be considered for an award, subject to the availability of funds. These are made solely on the basis of parental means or to relieve hardship where a current pupil’s education may be at risk. In assessing means we take into account family income, savings and family circumstances. However, the School does not have a large endowment and awards are funded mindful that Governors must maintain a balance between possibly hard pressed, fee-paying parents and those benefiting from bursary awards. Bursaries need to make a material difference to the family concerned, bringing life-changing opportunities.

The Governors' aim is to award new, means-tested, bursaries and scholarships to the value of eight full fees each year as follows:-

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The majority of available funds go towards bursaries.

Scholarships and bursaries valued at £882,585 (2019 - £835,459) were awarded in the year. Of this total, £598,337 (68%) was awarded through means-tested bursaries. A total of 178 pupils in the School received either a bursary or scholarship during the year (2019: 151) of whom 9 received total remission of fees (2019: 9).

Available bursary funds were fully and effectively deployed on a means-tested basis during the academic year. Meanstested bursaries, in some cases in combination with scholarships awarded independently on academic merit, were offered to those who qualified in respect of ability and financial need, in strict order of attainment in the relevant selection process. The School’s Bursary Policy is available on the School’s website.

With the Covid pandemic and the consequent lockdown, some £143,896 was raised from parents, governors, staff, OAs and other donors which enabled grants to be made to those parents in financial distress as a result of the impacts of Covid. After appropriate due diligence, significant grants and deferments of fees were made, and some of this was carried forward into 2020/21.

STRATEGIC REPORT

Operational performance of the School

The School is committed to safeguarding and promoting the welfare of pupils and expects all staff and volunteers to share this commitment. The School prides itself on the strong pastoral care provided for all pupils by Form Tutors under the aegis of Heads of Year and Heads of Section.

The School welcomes pupils from all backgrounds. For a candidate to be admitted, the School needs to be satisfied that it will be able to educate and develop them to the best of their potential and in line with the general standards achieved by their peers. Entrance assessments are undertaken to satisfy the School and parents that potential pupils can cope with the pace of learning and benefit from the education provided. These assessments are made without regard to economic status, ethnicity, race, religion or disability.

Academic

The Government announcement in March that the Summer 2020 public examinations were cancelled due to the Covid19 situation came as a significant disappointment to our public examination candidates who were approaching the final stages of their preparations for these important examinations. We shared their frustration but were proud of the dignity and good grace they demonstrated in accepting and adjusting to the particular consequences for them of the unprecedented circumstances .

The School followed carefully and professionally the alternative processes put in place by Ofqual and the examination boards, submitting Centre Assessment Grades and Rank Orders in June in accordance with their requirements. It subsequently emerged that in awarding grades they were placing greater reliance on their statistical modelling. On 17

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August it was announced that the grade awarded would be the higher of the Centre Assessment Grade and the Calculated Grade .

At A Level in 2020, A grades account for 37% of all grades (25% in 2019) and A and A grades are at 72% (59% in 2019). One pupil collected 5 A grades, ten pupils achieved 4 A grades and thirty two pupils gained at least 3 As. Fifty seven candidates (more than one third of our entry) gained at least 2 As and ninety six pupils (over three fifths of our entry) gained at least 1 A*.

The School's 2020 GCSE results once again reinforce the School’s reputation for consistently high achievement. 69% of examinations taken were graded 9-8/A - which represents a school record beating 61% in 2019 - and 88% received 9- 7/A-A grades (82% in 2019). Nearly three quarters of the year group gained at least five 9/8/A grades, with two thirds of the cohort gaining at least six 9/8/A grades. Over half of our candidates gained at least eight 9/8/A grades. Fifteen students achieved straight 9/A grades and thirty three achieved straight 9s, 8s & As. An impressive thirty two pupils achieved at least ten 9/8/As.

83% of our students who applied to university in 2020 secured a place at either their first (71%) or second (12%) preference university on results day. 78% were offered places at Russell Group universities with nearly 10% confirming places at former 1994 Group universities. Seven students will be enrolling on Medicine or Dentistry courses. Nine students will take up Oxbridge places (4 at Oxford and 5 at Cambridge). The most popular destinations for St Albans School alumni this year are Nottingham, Durham, Leeds, Bristol and Exeter.

St Albans School believes that a good education is about so much more than examination results and university places. Our pupils have the opportunity to participate in many educational opportunities outside the classroom. These include national academic competitions, and, before the end of the Spring Term, visits to important historical sites and theatre trips.

Music

Alongside its academic curriculum, The Music Department continues to run a busy Co-Curricular Programme. Lunchtime Concerts continue to be a big feature in the day-to-day operations of the department, with some online events continuing during the remote teaching phase of lockdown.

The Joint Schools’ Concert was a huge success with a wonderful evening of Operatic music performed by the Choral Society and Orchestra with professional opera singers in the Cathedral. Despite the enforced cancellation of many events there were still several highlights in the year including performances of Lalo’s Cello Concerto by the orchestra and some exceptional piano playing in the annual Steinway Concert . Several Rock Concerts joined our established programme of events, to great acclaim.

The School choir made some exceptional recordings during lockdown, with this music featuring in the end of year Founders’ Day Service .

Sport - Participation

Sport is part of the mainstream PE timetable with each pupil in Year 7-11 having a scheduled fifty-minute lesson each week. In addition, timetabled Games lessons occur once a week for each age group and involves a two- hour slot for sport. This slot is based on an expanding preference system and allows for greater diversity and choice as the students mature through the School.

We have been restricted this past academic year by the lockdown, but we have continued to focus within our curriculum on engaging the students in our care who have previously not been motivated by their previous experiences. The variation in opportunities extended to after-school Nerf Wars, synchronised swimming, Octopush (underwater hockey)

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and Tchoukball to name some of the novel activities that students can engage in. The participation figures evidence our success in our core activities, but we keep looking to build our opportunities base in the social sports that are not measured in team selections etc but in the number of students previously disengaged who attend.

Our average participation rate in representative School sport was 68% for 2019-20. This is marginally lower than for 2018-19 but when you consider that major sports like cricket, athletics and tennis did not happen then this is encouraging in terms of engagement. Hockey and rugby participation levels were very high at 223 and 323 students, respectively.

The lockdown experience has challenged the physical activity levels of our student body and whilst a positive of this period has been the growth of independent training undertaken by many of our students and the use of technology to support, measure and monitor activity. However, a large number of our student body have reduced their daily activity levels and lost much of the fitness they had established and we will need to work hard to support and encourage our students to regain this fitness and be motivated to be regularly active again. This will be a focus of our return to School as a department to support the physical, social, and emotional well-being of our community.

Sport – Achievements

This academic year has also seen some outstanding individual performances and achievements across the School, including at international, national and regional / county level for their relevant year-groups.

Some of the most notable individual accolades are identified below:

International honours

National honours

Regional

Additionally, numerous other pupils have progressed in various sports pathways at the equivalent of county level in cricket, hockey, rugby, tennis, swimming and athletics.

Team/Sports Achievements & Firsts:

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Drama

The Drama Department continues to prioritise the provision of enriching opportunities for students including trips to the theatre, workshops with visiting professionals and experience both onstage and backstage. Highlights from this year have included:

Other activities

Outside of these core areas, pupils generally have wide opportunities to participate in activities such as:-

All of these activities are proving increasingly popular, showing that St Albans School can combine an exceptional academic achievement with wider personal development. These activities sadly had to be significantly curtailed in 2020 as a result of the Covid pandemic.

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Mental Health and Well-being

The School recognises the pressure that pupils find themselves under and has therefore worked hard to ensure that there is a strong system of pastoral care and well-being. Actions being taken include the following:-

ADDITIONAL COMMUNITY AND PUBLIC BENEFIT

The Governors regard the School’s wider activities as a critical part of its activities; the School must be, and be seen to be, an important part of the local community. Governors have reviewed the guidance from the Charity Commission in respect of public benefit and continue to review this regularly against the policies and objectives of the School. Accordingly, Governors have had due regard to the guidance in reviewing activities in the year.

The Governors see the charitable benefit as being in the following categories:-

  1. The education of the pupils at the School

  2. Widening access through the bursary scheme

  3. The considerable use of its educational and sporting facilities by the local community

  4. The extensive partnerships with local schools

Each is now considered in detail:-

1. The education of the pupils at the School

In pursuing the charitable objects, the School demonstrably provides a first-class education to its pupils. This education is more than academic and social; it concerns itself with linguistic, mathematical, scientific, human, social and physical development and prepares pupils for the wider world in the best possible manner.

By parents choosing to educate their pupils at St Albans School, the taxpayer is saved from paying for their education in state-maintained schools. The Independent Schools Council estimates that this saves the taxpayer some £6,500 per pupil per year (the approximate cost per pupil at an Academy), amounting to some £5.6m per annum for the 860 pupils currently at this School.

2. Widening access through the bursary scheme

The awarding of bursaries for those unable to afford the School’s fees is a measurable means of demonstrating additional public benefit beyond the education of the Charity’s direct beneficiaries.

In maintaining, and where possible expanding, the bursary scheme operated by the School, we are able to select a number of pupils on purely academic criteria with minimal reference to their ability to fund the fees levied by the School. The School supports a total of 9 full fee remissions and a further 169 partial remissions including both Bursaries and Scholarships. This represents 21% of the total School roll. In this way we believe we ensure that the benefit provided by the School is not restricted to those who have the ability to pay for education.

3. The considerable use of its educational and sporting facilities by the local community

In addition to the above, the School provides a wide variety of Community benefits as detailed above and as follows.

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extended by assisting the staff of these schools by running workshops and training courses for Oxbridge and Russell Group admissions.

Much of this use is provided by the School free of charge or at marginal cost.

From March 2020, much of this activity had to be curtailed because of the restrictions arising from the Covid pandemic.

4. The extensive partnerships with local schools

2020 brought some new challenges to the Parentship and Community Link programmes. We began the year as usual with the following activities:

Partnership

The Partnership scheme between St Albans School and local Primary and Special Schools has continued to grow. St Helen’s School in Wheathampstead joined the programme this year; other participating schools are as follows: Abbey Primary, Aboyne Lodge, Alban City, Beech Hyde, Bernard’s Heath, Cunningham Hill, Maple, PraeWood, Redbourn Primary, St Michael’s, St Peter’s and St John Fisher. Over 80 Lower Sixth students partake in the scheme on Friday afternoons. DBS checks are organised by the School for all the students involved and they also attended a safe-guarding workshop before commencing their placements. All these activities are co-ordinated by the Head of Partnership and assisted by other members of staff. The main elements to the Partnership Scheme are:

Swimming lessons

These are organised for four local schools in our school pool on Monday and Friday afternoons. Qualified coaches from local clubs are employed to run each session and Sixth Formers act as lifeguards on Fridays.

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Masterclasses for Primary Schools

On Friday afternoons the School offers masterclasses run by members of our teaching staff assisted by Lower Sixth Form students in IT and Science. These give the primary school pupils the opportunity to come to use our facilities and carry out practical activities that might not be possible in their Primary schools. SAS teachers running these classes endeavour to cover specific parts of the Primary School curriculum as requested by the Partnership schools. We also run popular Art, Drama and Music classes on Friday afternoons led by an SAS teacher and Sixth Form helpers which take place either at SAS or the teacher and students visit the primary school to run the sessions.

The Lower Sixth Form helpers are vital to the running of all these master classes. They get the opportunity to share their passion for these subjects with the younger pupils and through their involvement develop vital life skills, such as communication, organisation and cultivate a sense of responsibility. SAS French, STEM and Maths teachers also visit local schools to offer specialist support to various groups during the week. We also offer specialist Maths classes run by a member of our staff to local gifted and talented mathematicians from a consortium of local primary school. This year the classes took place in our school library for the first time and our teacher provided a minibus service to return the pupils to their primary schools after their weekly lesson.

Imagineering club , run in a lab at SAS, for a group of twelve pupils from Abbey School, is now in its fourth year of the scheme. The children learn and practice engineering skills using simple tools and have fun while making a series of working models. This is run by parent volunteers from Abbey, who are scientists, plus a member of SAS staff, supported by two L6th helpers.

Classroom and Sports Assistants

Many Lower Sixth Form students travel to our Partnership schools on Friday afternoons where they assist in a variety of ways. Our students get involved in an assortment of activities in their Partnership Schools, for example helping individual children reading or doing maths, assisting with sports coaching, craft activities, IT, and doing some administrative work. The Sixth Form students provide valuable support to the teacher in the classroom whilst developing those important skills which they will need as they move on to life outside school. This year we were able to provide a Maths specialist Sixth Former who supported a young gifted and talented mathematician at one of the primary schools.

Book Club

This year for the first time we started a Book Club collaboration with Beech Hyde School in Wheathampstead. The aim was to develop character, confidence and communication skills and further the children’s love of reading. Our School Librarian trained 6 of the Partnership pupils to become group leaders and they led sessions with Year 5 and 6 pupils. It was a popular activity and one that we would like to repeat.

In addition to the Partnership Scheme, St Albans School makes other contributions to the community as follows:

School staff serving as Governors at local schools

Their roles include Safeguarding, Resources and Premises, Finance, Child Protection, Special Educational Needs and Disabilities (SEND) and Performance Management, as well as subject responsibilities. State Primary and Junior, SPMLD Special and Independent Schools are all represented.

Community Link

Volunteers in the School’s Community Link Programme support a range of local causes. We have over 30 Sixth Formers participating in the scheme.

Special Schools

Throughout the academic year a group of Lower Sixth students from St Albans School volunteered on Friday afternoons to work as assistants in four local schools for children with special educational needs.

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At Woodfield School the students worked primarily with individual children with severe or profound and multiple learning disabilities. They provide valuable support and assistance to classroom teachers giving IT, drama, art, music and general classroom assistance. We have also had our Partnership Music Group in attendance on a regular basis to work with groups of children and this has been most successful and appreciated by the school and enjoyed by our Sixth Form group.

At Watling View School, which caters for children and young people aged from 2 to 19 with either severe, or profound and multiple learning disabilities, the St Albans School students also work with individual children and as classroom assistants and in addition, they help pupils in the hydrotherapy pool, and with self-expression in speech and with sign language.

At St Luke's in Redbourn, the St Albans School Sixth Formers also assist in the classrooms, working with individuals with complex moderate learning difficulties, autism spectrum disorders and speech, language and communication needs.

At Heathlands School for the Deaf our Sixth Form volunteer helped with IT lessons and learnt some sign languages so that he could communicate better with the pupils he was working with.

Care Homes

Sixth Form Volunteers offered weekly conversation, music, quizzes and general assistance for elderly and often wheelchair-bound residents at Verulam House, Vesta Lodge, Tara’s Retreat and Lyndon House Residential care homes where they also work with dementia patients. The Sixth Formers developed relationships with the elderly residents over the year and enjoyed talking to them and listening to their stories about their own youth. Our Art teacher visited Verulam House on a weekly basis to give some of the residents art lessons.

St Albans Cathedral Volunteering

This year we have had two different volunteering opportunities at St Albans Cathedral. The first was within the Education Centre, which works with children, schools, and youth groups from all over the UK and overseas and two of our Sixth Formers help there every Friday afternoon as part of the Partnership scheme. The second was an exciting opportunity for four of our History A Level student who were asked to be ambassadors at the Anne Frank Exhibition that took place at the Cathedral. They were given mentor training and then carried out tours for the public and school children who attended the exhibition

Centre 33

Centre 33 is a centre for the homeless and disadvantaged in St Albans and is located close to us on Spicer Street. The school community helped provide clothing, sleeping bags and Christmas Gifts for the visitors to the Centre again this year.

The LinkAges Christmas Party

This is a very popular annual event which has now been going on for around 20 years, treating over 80 elderly guests from the local area to an afternoon of food and entertainment provided by the School and Community Link team. Guests enjoyed festive readings from the Lower School, music from the jazz band and sing along carols with the school choir. The School also provided a complimentary return taxi service to all guests. The event is a great opportunity to build on our relationship with local residents and to bridge the gap between generations.

Charity Shops

Sixth Form volunteers continued to help weekly in the Keech House Hospice Charity shop giving general assistance and preparing items to go out onto the shop floor.

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Covid Lockdown

The March 2020 lockdown provided us with the unique challenge of asking our students to model our school motto ‘Non Nobis Nati’ in different ways to usual and we consequently rolled out the #SASWeCare initiative and looked at alternative ways we could support the community:

We were hoping very much that in September we could return to our usual Partnership and Community Link activities. However, this unfortunately has not been the case, but we continue to support the community in other ways and are continuing to maintain links with our Partnership schools.

Combined Cadet Force Partnership

This is a Ministry of Defence-approved partnership between St Albans School CCF and the state-maintained Marlborough Science Academy in St Albans, which involves the training of Year 9 to 11 Cadets from Marlborough Science Academy alongside our own cadets. In addition, staff from Marlborough are trained as Officers. The aim of the partnership is to train both the Cadets and Officers from Marlborough Science Academy, with a view to Marlborough setting up its own CCF in due course, but the linkages that this initiative are providing suggests that a deeper, more longlasting partnership would bring benefits to all.

The Duke of Edinburgh Award

This popular scheme continues to give young people a great deal of opportunity to involve themselves in volunteering for their local community. A normal year would have seen

In 2020, and with the closure of the site from March 2020, most of these activities had to be stopped. Sadly this has meant that pupils have not been able to complete their Awards this year, and the contribution to the wider community through this has been similarly affected.

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Environmental Work

The Environmental Group is a member of the British Trust for Conservation Volunteers (BTCV) and aims to foster an awareness of local conservation issues and to help the community by participating in schemes to improve the local environment.

Charitable Fundraising

This year the School community has again raised considerable sums for charitable causes. It has achieved this through a wide range of activities, including whole-school activities, form group events and individual efforts.

CLIMATE CHANGE

The School, its pupils and its staff recognise the importance of sustainable development and the need to reduce the impact of carbon emissions. In recent years, the School has taken a large number of measures to reduce its environmental impact, including the following:-

The School also carried out a review of transportation. Around half of students travel in by coach, thus reducing car travel. Approximately 25% of pupils commute by car. This is substantially less than the average across all Hertfordshire schools (which is around 40%) and already in line with the County Council’s ambitious targets for all schools.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The School had 860 pupils at the end of the financial year (2019 – 860). The School population from September 2020 was 892 pupils.

Total income of the School (excluding donations) for the year was down by 1.4% on the corresponding period in 2018/19. This level of income is required to finance the ongoing capital expenditure needed to upgrade the School's facilities and support the playing fields, and in order to keep pace with what is expected of the School as a premier educational establishment.

With regard to the Covid pandemic, action was taken across the School to address this. This included:-

The School's Net Income (excluding donations) was £828,789 (2019 - £1,018,884), some 5.4% of net fee income. The surplus was below the medium-term benchmarks that the Board uses but is moving in the right direction. In order to maintain standards and investment, while keeping our costs and therefore our charges to parents, to a minimum, the Governors wish to see continued improvement over the medium term and a plan is in place to do so.

During the year the School Foundation raised a total of £848,271, which was allocated as requested by donors in supporting bursaries, specific capital projects such as the Performing Arts and Science developments and for other capital items where a difference could be made to the School. The bulk of this represents a donation towards the building of a new Mathematics Faculty, for which planning permission was obtained in August 2017. These donations have significantly assisted in our ability to provide funding both for the future and for current needs.

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As a charity, the School gives parents the assurance that all income must be applied for educational purposes. As an educational charity, the School has tax exemption on educational activities, investments and gains applied to our charitable objects. The financial benefits received from these tax exemptions are all applied for educational purposes and indirectly assist our bursary policies and partnership scheme.

However, as an educational charity, we are unable to reclaim input VAT on our costs as we are exempt for VAT purposes. With VAT at 20%, this cost needs to be absorbed by continued attention to efficiency and cost effectiveness.

As noted above, educating 860 pupils provides saving to the taxpayer of around £5.6million, to which needs to be added the approximate amount of UK tax supported by the School of approximately £8.9million. In addition to this relief to the public purse, the School brings substantial benefits to the local community, as a major employer, through the education we offer, our bursary programme and the Community Link and Partnership scheme, which creates a social asset without cost to the Exchequer.

We consider that the key financial performance indicators are those that communicate the financial performance and strength of the School as a whole, those being pupil numbers, academic results for the year, surplus for the period, extracurricular performances and applications for places for the following year. For the period under review, pupil numbers continue to be at historically high levels, academic results are near record, the financial result for the period was acceptable in current circumstances and registrations for future admission have increased on the previous year. Taking all of these together, the performance of the School remains excellent. All of these factors give the Governors the confidence that the School is, and will remain, a going concern, and so the accounts have therefore been prepared on the basis that the charity is a going concern.

Reserves Policy

The total funds of the Charity at 31 August 2020 amounted to £25,084,802 (2019 - £23,440,094) of which £1,108,482 (2019 - £1,137,315) were endowed funds, £989,153 restricted and £22,987,167 unrestricted ( 2019 - £6,668,052 and £15,634,727 respectively). The unrestricted funds include designated funds which represent Bursary, Foundation, Professor Hawking Memorial Fund and Tour funds and amounted to £3,944,537 (2019 – £3,976,911) at the year end.

It is the Governors’ aim to maintain adequate reserves between 5% and 10% of fee income to enable the School to meet unforeseen costs or to cover any shortfall in expected fees or other income. The level of reserves is monitored and reviewed annually by the Governors. Free reserves in the School at the year-end amounted to £2,524,799 (2019 - £1,975,110) which the Governors regard as adequate, but not excessive, having regard to forecast levels of income and expenditure and to the likelihood of contingencies arising that might not be met out of income when they arise. The Strategic Development Plan, approved by the Governors in June 2016, set out how the financial position of the School would continue to improve over the following five years through a carefully-managed balance of a continued, small increase in pupil numbers in line with demand and an ongoing focus on the costs of the School.

As noted above, significant funds were donated for the design and construction of the Corfield Building which was handed over and completed in January 2020. The full build cost of this exciting project was paid for by these generous donations.

Investment policy and objectives

The Governors’ investment powers are governed by the Memorandum and Articles of Association which permit the funds of the School to be invested as may be thought fit subject to such conditions and such consents as may be imposed or required by law.

It is the Governors' policy to aim for a reasonable long-term overall return with the emphasis on income generation whilst maintaining the capital value of the funds in real terms.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

The School continues to diversify its investments to provide a moderate but managed level of risk, commensurate with maintaining a suitable annual income and some element of capital growth. The Finance Committee continues to review investment policy and returns.

FUTURE PLANS

The School’s Strategic Development Plan was approved by the Board in June 2016 and the School is being managed in accordance with that. This plan sets out the development for the School over the following five years, reaffirming the Aims and Objectives as set out in the Aims, Objectives and Activities section above.

Governors are reviewing the Strategic Development Plan in early 2021 such that the new plan will be in place from September 2021.

GROUP STRUCTURE AND RELATIONSHIPS

The School has two connected charities:

(a) Development Trust (Registered Charity No. 311052)

(b) Woollam Playing Field Trust (Registered Charity No. 311020)

The School has a trading subsidiary company Abbey Gateway Enterprises Limited which is included and consolidated into the School’s group accounts in the year ended 31[st] August 2020.

Results for Abbey Gateway Enterprises Limited show a retained profit for the year of £652 (2019 – £11,560).

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ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

PRINCIPAL RISKS AND UNCERTAINTIES

The major risks faced in each of the principal areas of the School’s operations have been examined. The School’s Risk Register is regularly reviewed in detail by the Audit & Risk Committee and the full Board, which receives a formal annual report from the Audit & Risk Committee as well as updates at each meeting.

In the opinion of the Governing Body, the major risks to which the School is exposed, as identified, have been reviewed and processes to manage those risks have been established, which, under normal conditions, should allow these risks to be mitigated to an acceptable level in the School’s day-to-day operations. Risks are also reviewed in the context of the long-term strategic objectives of the school and their likely impact on this plan. Major risks currently identified include:-

The potential impacts of these risks, together with their likelihood of occurrence, are reviewed against the ability of the School to continue to operate at the highest level academically and appropriate control mechanisms have been established. With these risks and uncertainties in mind, the Governing Body is aware that plans for future development of the School may be subject to unforeseen future events outside of the direct control of the School.

The School looks to address the risks above through generic controls (see below) and specific actions such as:-

The generic controls used by the School to minimise risk include:

The Governors regularly review the effectiveness of current plans and strategies for managing all identified major risks for both the School and its subsidiary.

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ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

Governors have considered the ongoing risks and possible consequences on the School of the Covid-19 pandemic, and in particular, the potential long-term impact on fee receipts and pupil numbers. While it is not possible to forecast with any degree of detail what the long-term impacts might be, and following their review, Governors have concluded that the School is, and have reasonable expectations that it will remain for the foreseeable future, a going concern and the accounts have been prepared on that basis.

GOVERNANCE AND MANAGEMENT

Governing Document and Governing Body

The School is governed by its Articles of Association which were fully updated in August 2018. The Governors, who are also the Charity Trustees, are responsible for the overall management and control of St Albans School. The Governors are the Directors, Members and Charity Trustees of the Charitable Company. The Governors of the charitable company during the year were as follows; unless otherwise indicated they served throughout the year.

Miss L Ainsworth 4, 5, 6
P Brown (OA) 3
MWS Cawthorne 5
A Dalwood (OA) 2, 4, 6
D K Foster 5, 6 Resigned 28 August 2020
Sir Roy Gardner (Chairman) 2, 4
Mrs A Hurst 1, 4
RR Lucas 2
Professor J Luzio 1, 6
C McIntyre 6
S Majumdar 4
N Moore (OA) 5
CE Pomfret 2, 6
M Punt 1
A Woodgate (OA) 3

1 - Education Committee, 2 – Finance Committee, 3 – Property Committee, 4 – Nominations Committee, 5 – Audit & Risk Committee, 6 – Covid Committee

During the year the Board of Governors met formally 4 times to review all matters relating to the School. All Trustees give of their time freely and no remuneration was paid in the year.

To help to manage and support the School’s response to the Covid pandemic, a separate Governors’ committee was formed, which met fortnightly during key periods.

The Board’s committees all have clearly defined responsibilities, terms of reference and reporting lines back to the Board of Governors. In addition, individual Governors give time to specific projects to match their skills and experience.

At least one meeting per year is with the full Board of Governors and the Advisory Council to review the previous academic year’s performance. The current Advisory Council is made up as follows:-

The Right Worshipful, the Mayor of the City & District of St Albans

The Very Reverend J P H John, The Dean of the Cathedral and Abbey Church of St Alban The President of the Old Albanian Club

O King

18

ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

C Oglethorpe P Rattle L Sinclair B Walker Judge Wilding

The Mayor and the Dean of St Albans, together with the President of the Old Albanian Club, serve ex-officio for their respective terms of office; all other Governors serve for a term of four years. They may be re-appointed.

Members of the Advisory Council may also attend committees of the Board and bring considerable knowledge and expertise to the School and its governance. They are not Governors, Directors or Members of the Company.

Governors are be appointed for terms of four years. Any retiring Governor who remains qualified shall be eligible for reappointment in accordance with Article 5.3 for up to two further terms of four years but shall not then be eligible for reappointment unless the Governors resolve by a majority of not less than 75% of those voting at the relevant meeting that they should continue in office (Article 5.5).

The Bursar, in his role as Clerk to the Governors, is responsible for co-ordinating the work of the Governing Body and its Committees, circulation of papers and reviewing matters arising.

Recruitment and Training of Governors

Governors are appointed on the recommendations received from Governors concerning eligibility, specialist skills and availability. The Mayor of the City and District of St Albans, the Dean of the Cathedral and Abbey Church and the President of the Old Albanian Club are ex-officio members of the Advisory Council for their term of office.

New Governors are inducted into the workings of the School and its connected charities, including Board policies and procedures. They are also invited to attend, where appropriate, training courses and seminars organised by AGBIS and associated bodies or organisations.

Organisational Management

The day-to-day running of the School is delegated to the Headmaster and Bursar supported by the Senior Management Team. The Headmaster, Bursar, Second Master and Deputy Head Academic attend meetings of the Governing Body and its committees.

Remuneration

Remuneration is set by the Board, with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding fairly and responsibly individual contributions to the School’s success.

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. Delivery of the School’s charitable vision and purpose is primarily dependent on our key management personnel; staff costs are the largest single element of the School’s charitable expenditure.

Employment policy

The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic performance of the School.

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ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

Charity Governance Code

The Board of Governors has reviewed the Charity Governance Code in detail and compared the School’s structures and performance against each key area. This analysis has been presented to, and discussed by, the Board of Governors as a whole. The Governors are satisfied that the School applies the principles of the Code within its current Governance arrangements and is making additional efforts to ensure that the constituents of the Governing Board has a diverse representation which reflects the nature of the Charity’s beneficiaries.

Fundraising

St Albans School Foundation is managed by the staff of the School’s Development Office, led by the Development Director, and does not engage third party fundraisers or commercial participators. The Development Office is overseen by the Headmaster with overall oversight by members of the Governing Body and in particular, the Audit & Risk Committee of the Board. SAS Foundation is a member of the Institute of Development Professionals in Education and subscribes to the Fundraising Preference Service. It has voluntarily registered with the Fundraising Regulator and complies fully with the Code of Fundraising practice. The Development Office has Terms of Reference approved by the Board of Governors.

St Albans School Foundation has not received any complaints about its fundraising activities in this period. It always ensures that due care and attention is given to protect members of the public, and in particular vulnerable people, from any undue pressure or unreasonable intrusion related to fundraising. The Foundation also ensures that our storage and use of personal data used for fundraising is compliant with GDPR.

SENIOR LEADERSHIP

The Headmaster Jonathan Gillespie MA, FRSA Second Master Ms Melody Jones BSc Deputy Head Academic Mark E Davies MA Senior Master Pat Taylor BEd The Bursar & Clerk to the Governors Richard Hepper MA, FCA

PRINCIPAL ADDRESS AND REGISTERED OFFICE

St Albans School, Abbey Gateway, St Albans Hertfordshire AL3 4HB

WEBSITE

www.st-albans.herts.sch.uk

COMPANY SECRETARY R Hepper MA, FCA

BANKERS

Clydesdale Bank Plc - Verulam Point, St Albans AL1 5HE Barclays Bank Plc - Blenheim Gate, 22-24 Upper Marlborough Road, St Albans AL1 3AL

SOLICITORS

Debenhams Ottaway LLP - Ivy House, 107 St Peter’s Street, St Albans AL1 3EW Farrer & Co LLP - 66 Lincoln's Inn Fields, London WC2A 3LH Veale Wasborough Vizards LLP - Barnards Inn, 86 Fetter Lane, London EC4A 1AD

AUDITORS

Crowe UK LLP - 55 Ludgate Hill, London EC4M 7JW

20

ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

The members of the Governing Body (who are also the Directors of St Albans School for the purposes of company law) are responsible for preparing the Annual Report of the Governors, the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the members of the Governing Body to prepare financial statements for each financial year. Under company law the Governing Body members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that period.

In preparing these financial statements, the Governing Body members are required to:-

The members of the Governing Body are responsible for ensuring that adequate accounting records are kept sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the Charity’s constitution. 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.

Relevant Audit Information

Insofar as each of the Directors, as members of the Governing Body, at the date of approval of this report is aware there is no relevant audit information (information needed by the Company’s auditor in connection with preparing the audit report) of which the Company’s auditor is unaware.

Each member of the Governing Body has taken all the steps that he or she should have taken as a member of the Governing Body in order to make himself or herself aware of the relevant audit information and to establish that the Company’s auditor is aware of that information.

This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of St Albans School on 6[th] March 2021, including in their capacity as company directors approving the Directors’ and Strategic Report therein, and is signed on its behalf by:

Sir Roy Gardner

Director

21

ST ALBANS SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST ALBANS SCHOOL

Independent Auditor’s Report to the Members of St Albans School

Opinion

We have audited the financial statements of St Albans School for the year ended 31 August 2020 which comprise the Group Statement of Financial Activities, the Group and Charity Balance Sheet, the Group 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:

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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our

22

ST ALBANS SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST ALBANS SCHOOL

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 our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report included within the trustees’ 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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 21, 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 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s or 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.

23

ST ALBANS SCHOOL

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST ALBANS SCHOOL

Auditor’s responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. 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.

Tim Redwood Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor

London

Date 11 May 2021

24

ST ALBANS SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020 (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

----- Start of picture text -----
Unrestricted Restricted Endowed
Funds Funds Funds 2020 2019
Notes £ 000's £ 000's £ 000's £ 000's £ 000's
Income and endowments from:
Charitable activities
School fees receivable 2 15,170 - - 15,170 15,041
Other educational income 3 1,199 - - 1,199 1,771
Other trading actvities
Non-ancillary trading income 4 232 - - 232 309
Other activities 4 144 - - 144 133
Investments
Investment income and interest 5 32 26 - 58 75
Donations and legacies
Donations 6 43 807 - 850 1,781
Other Income
Other income 285 285 -
Total income 17,105 833 - 17,938 19,110
Expenditure on: 7
Raising funds
Financing costs 154 - - 154 169
Development office 190 - - 190 208
Non- ancilliary trading 1,033 - - 1,033 898
Investment management costs 16 - 13 29 28
Total deductible costs 1,393 - 13 1,406 1,303
Charitable activities
Education 14,762 89 - 14,851 14,996
Total expenditure 16,155 89 13 16,257 16,299
Net incoming/(outgoing)funds from operations
before transfers and investment gains 950 744 (13) 1,681 2,811
(Losses)/gains on other investments (21) - (15) (36) 221
Transfers between funds 18 6,423 (6,423) - - -
Net income and capital inflow 7,352 (5,679) (28) 1,645 3,032
Fund balances brought forward at 1 September 2019 15,635 6,668 1,137 23,440 20,408
Fund balances carried forward at 31 August 2020 18 22,987 989 1,109 25,085 23,440
----- End of picture text -----

The notes on pages 30 to 48 form part of these financial statements.

25

ST ALBANS SCHOOL

CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2020

----- Start of picture text -----
2020 2019
Notes £000's £000's
Income from:
Charitable activities
School fees 2 15,170 15,041
Other educational income 3 1,199 1,771
Other trading activities
Sub-letting and management charges 4 144 133
Non ancillary trading income 232 309
Investments
Dividends, bank and other interest 5 58 75
Donations and legacies
Grants and donations - Unrestricted 43 355
- Restricted 6 807 1,426
Other income 285 -
Total income 17,938 19,110
Expenditure on: 7
Costs of raising funds
Financing costs 154 169
Development office 190 208
Non ancillary trading 1,033 898
Investment management costs 16 15
1,393 1,290
Charitable activities
Education 14,851 14,996
Total expenditure 16,244 16,286
Net income before investment gains and inter-fund transfers 1,694 2,824
Net investment gains for the year (21) 191
Net income for the year 1,673 3,015
----- End of picture text -----

The above Summary Income and Expenditure Account represents the total unrestricted and restricted income and expenditure as shown in the Statement of Financial Activities on Page 25 and its presentation is required under the Companies Act 2006.

26

ST ALBANS SCHOOL

COMPANY REGISTRATION NUMBER 04400125 CONSOLIDATED AND SCHOOL BALANCE SHEETS AS AT 31 AUGUST 2020

Notes
FIXED ASSETS
Tangible assets
9
Investments
10		 2020
£000's
18,810
9,133
Group		 2019
2020
2019
£000's
£000's
£000's
16,647
18,810
16,647
9,198
9,133
9,198
School
27,943 25,845
27,943
25,845
CURRENT ASSETS
Stock
Debtors
11
Cash and deposits		 62
632
3,616		 51
-
-
614
628
605
6,123
3,579
6,035
CURRENT LIABILITIES
Creditors payable within one year
12		 4,310
(4,268)		 6,788
4,207
6,640
(5,540)
(4,224)
(5,482)
NET CURRENT ASSETS 42 1,248
(17)
1,158
TOTAL ASSETS LESS CURRENT
LIABILITIES
LONG-TERM LIABILITIES
13
Creditors payable after one year
Pension Scheme funding deficit		 27,985
(2,766)
(134)		 27,093
27,926
27,003
(3,488)
(2,766)
(3,456)
(165)
(134)
(165)
NET ASSETS
17		 25,085 23,440
25,026
23,382
REPRESENTED BY
18
PERMANENT ENDOWED FUNDS
EXPENDABLE ENDOWED FUNDS
RESTRICTED FUNDS
UNRESTRICTED FUNDS
20
Designated Reserve- includes revaluation reserve of
£12,085 (2019: £78,726 )
School Reserve
Pension Reserve		 67
1,042
989
3,944
19,206
(163)		 68
67
68
1,069
1,042
1,069
6,668
989
6,668
3,977
3,944
3,977
11,852
19,147
11,794
(194)
(163)
(194)
TOTAL FUNDS 25,085 23,440
25,026
23,382

The net result for the financial year dealt with in the financial statements of the parent charity was a surplus of £1,648,990 (2019 £3,032,908).

These financial statements were authorised for issue and approved by the Board on 6th March 2021 and were signed on its behalf by:

Sir Roy Gardner

Chairman of the Governing Body

The notes on pages 30 to 48 form part of these financial statements.

27

ST ALBANS SCHOOL

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

----- Start of picture text -----
Note 2020 2019
£000's £000's
Net cash inflow from operations
Net cash provided by operating activities (i) 747 3,911
Cashflows from investing activities:
Payments for tangible fixed assets (2,493) (3,302)
Additions to securities investments portfolio (31) (43)
Withdrawals from securities investments portfolio 29 28
Investment income and bank interest received 58 76
Net cash provided by investing activities (2,437) (3,241)
Cashflows from financing activities:
Addition/(repayment) of loans (665) (546)
Finance costs paid (154) (169)
Net cash (used in) financing activities (819) (715)
Change in cash and cash equivalents in the reporting period (2,508) (45)
Cash and cash equivalents at the beginning of the reporting
period 6,123 6,168
Cash and cash equivalents at the end of the
reporting period (ii) 3,614 6,123
----- End of picture text -----

The notes on pages 30 to 48 form part of these financial statements.

28

ST ALBANS SCHOOL

NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

(i) Reconciliation of net income to net cash flow from operating activities

Net income
Elimination of non-operating cashflows:
Investment income
Finance costs
Investment management charges
Depreciation charge
(increase)/decrease in inventory
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
(ii) Analysis of cash and cash equivalents
Cash at bank		 2020
£000's
1,681
(58)
154
29
330
(11)
(18)
(1,360)
747
3,616
3,616		 2019
£000's
2,811
(75)
169
28
237
2
71
668
3,911
6,123
6,123

29

ST ALBANS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Charities SORP (FRS102).

The functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates.

The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investment properties and other investments.

The School has taken advantage of the exemption available to a qualifying entity in FRS102 from the requirement to present a charity only Cash Flow Statement with the consolidated financial statements.

Going Concern

The Governors consider that the key financial performance indicators are those that communicate the financial performance and strength of the School as a whole, those being pupil numbers, academic results for the year, surplus for the period, extra-curricular performances and applications for places for the following year. For the period under review, pupil numbers continue to be at historically high levels, academic results are near record, the financial result for the period was acceptable in current circumstances and registrations for future admission have increased on the previous year.

The Governors have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School's financial viability. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 21.

Accounts

These accounts, in accordance with a Charity Commission uniting direction, combine the financial statements of the company, St Albans School, and its trusts, the St Albans School Trust, the St Albans School Scholarship and Bursary Trust, the St Albans School John Clough Bursary Trust, George Wishart Prize Fund and the James Baum Prize Fund.

The accounts for the School's wholly owned trading subsidiary, John Insomuch Schoolmaster Printer (1479) Limited, have not been consolidated on the basis that it is dormant and not material to these accounts.

The accounts present the consolidated statement of financial activities (SOFA), the consolidated cash flow statement and the consolidated and School balance sheets on a line by line basis, comprising the consolidation of the School and its wholly owned subsidiary Abbey Gateway Enterprises Ltd.

No separate SOFA has been presented for the School alone as permitted by Section 408 of the Companies Act 2006.

The School is a Public Benefit entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 21 March 2002 (company number 4400125) and registered as a charity on 12 July 2002 (charity number 1092932). The registered office is Abbey Gateway, St Albans, Hertfordshire, AL3 4HB.

Critical accounting judgements and key sources of estimation uncertainty

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

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

30

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 ACCOUNTING POLICIES (continued)

In the view of the Governors, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements.

Fees and other educational income

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions allowed by the School, but include contributions received from bursaries and other trusts.

Investment income

The income derived from investments is accounted for on an accruals basis and is credited to the relevant fund when it is receivable. Income from investment properties is accounted for in the period to which the rental income relates. Rental income (including incentives received or paid) for operating leases on investment property are recognised in the Statement of Financial Activities on a straight line basis over the lease term.

Donations, legacies grants and other voluntary income

Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

Donations received for the general purposes of the School are credited to "designated funds" to distinguish them from direct School income. Donations subject to specific wishes of the donors are carried to the relevant restricted funds or to endowed funds as appropriate.

Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. All costs have been directly attributed to one of the functional categories of expenditure in the SOFA. The irrecoverable element of VAT is included within the item of expense to which it relates.

Governance costs comprise the costs of external audit, any legal advice for the Governors, and all costs of complying with constitutional and statutory requirements, such as preparing statutory accounts and satisfying public accountability. Intragroup sales and charges between the School and its subsidiaries are excluded from trading income and expenditure.

School buildings

The original School buildings erected before 1929 are all listed properties. They are carried at the amount of the original gift together with the cost of other buildings erected subsequently as the Governors consider it is not appropriate to apply a current value to such property. The School is responsible for keeping these properties in fit and useful condition and such costs are written off as incurred.

Depreciation

Depreciation is provided on the original cost of all tangible fixed assets, except freehold land, at rates calculated to write off the cost less estimated residual value based on current market prices of each asset over its expected useful life as follows:

Capitalisation

Items of equipment and fixtures and fittings are capitalised when part of a new project where the total cost of such items exceeds £50,000. Other incidental costs of equipment are charged to the statement of financial activities under appropriate cost headings.

31

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 ACCOUNTING POLICIES (continued)

Investments

Investment properties are valued as individual investments at their market values as at the balance sheet date. Rental income is recognised in the period to which it relates. Purchases and sales of investment properties are recognised on exchange of contracts. The investment properties at Cheapside Farm are stated at market value as at 23 August 2019, as calculated by Bidwells LLP Chartered Surveyors (regulated by RICS). The Governors believe this to be an accurate estimate of the current open market value.

Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund according to the “ownership” of the underlying assets. Investments in subsidiaries are valued at cost less provision for impairment.

Fund accounting
Foundation Maths Fund - Restricted funds
Foundation Bursary Fund - Restricted funds
Covid 19 Hardship Fund - Restricted funds
St Albans School John Clough Bursary Trust - Permanent endowment funds
St Albans School Trust - Permanent endowment funds
St Albans School Scholarship & Bursary Trust - Expendable endowment funds

The unexpended income of the above trusts is restricted.

The School land at Abbey Gateway, St Albans, has been acquired by gift and purchase over more than one hundred years. All of this School land is permanently endowed and is held in the St Albans School Trust.

The School's other funds are unrestricted except that some funds have been designated by the Governors for certain purposes.

Pension scheme

The Teachers’ Pension Scheme - This scheme is a multi-employer pension scheme. It is not possible to identify the School’s share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, accounts for the scheme as if it were a defined contribution scheme. The School’s contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable.

The School offers membership of a defined contributions pension scheme to non-teaching staff. The School's contributions to the pension schemes are charged to the income and expenditure account as they fall due. See note 20.

Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straightline basis over the lease term.

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except fees received in advance (deferred income), social security and other taxes and provisions. Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year end exchange rate.

Advance fee scheme

Amounts received under the school’s Advance Fee Scheme contracts for education not yet utilised to settle school fees are recorded as deferred income and allocated as current liabilities.

Taxation

The School's surpluses are derived from, and are applied towards, the maintenance of charitable activities and as such are not subject to taxation.

32

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2 CHARITABLE ACTIVITIES - FEES RECEIVABLE

2020
2019
£ 000's
£ 000's
£ 000's
(a)
School fees comprise:
Gross fees
16,260
16,081
Less: Bursaries, scholarships, grants and allowances
(1,153)
(1,093)
15,107
Add: Scholarships and bursaries paid for by restricted funds
50
Other scholarships and bursaries paid for by
unrestricted funds:
Foundation funds
13
15,170
(b) The total grants, awards and prizes paid for by restricted funds comprises:
2020
£ 000's
Scholarships
-
Music awards
-
Foundation Bursaries
4
Covid-19 Hardship Fund
46
50		 £ 000's
14,988
33
20
15,041
2019
£ 000's
27
1
5
-
33

(b) The total grants, awards and prizes paid for by restricted funds comprises:

Scholarships and bursaries valued at £882,585 (2019- £835,459) were awarded in the year. Of this total, £598,337 (68%) was awarded through means-tested bursaries. A total of 178 pupils in the School received either a bursary or scholarship during the year (2019: 151) of whom 9 received total remission of fees (2019: 9).

3
CHARITABLE ACTIVITIES - OTHER EDUCATIONAL INCOME
Coaches
Entrance and registration fees
Examinations
Welfare
School Tours and trips
Miscellaneous
4
OTHER TRADING ACTIVITIES
Non ancillary trading income
Abbey Gateway Enterprises Ltd
Other activities
Management charges
Sub-lettings
Miscellaneous		 2020
£ 000's
483
60
69
320
214
53
1,199
2020
£ 000's
232
232
23
117
4
144		 2019
£ 000's
676
76
22
450
444
103
1,771
2019
£ 000's
309
309
7
121
5
133

33

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

5
INVESTMENT INCOME AND INTEREST
Investment income
UK equities
Overseas securities
Bank and other interest
Cash
6
DONATIONS RECEIVABLE
Foundation donations
Other donations
7
ANALYSIS OF EXPENDITURE
a) Total expenditure
Staff
costs
(Note 8)
£ 000's
Charitable expenditure
Education and grant making
Teaching
7,716
Welfare
85
Premises
389
Support costs of schooling and governance
1,305
Grants, awards and prizes
-
Total charitable expenditure
9,495
Costs of raising funds:
Financing costs
-
Development office
138
20
Investment management
-
Total costs of raising funds
158
Total expenditure
9,653
Abbey Gateway Enterprises Ltd		 Other
costs
£ 000's
1,795
456
1,706
997
73
5,026
154
52
1,013
29
1,248
6,275		 Depreciation
(see below)
£ 000's
37
293
-
-
330
-
-
-
-
-
330		 2020
£ 000's
14
39
53
5
58
2020
£ 000's
704
146
850
Total
2020
£ 000's
9,547
541
2,388
2,302
73
14,851
154
190
1,033
29
1,406
16,257		 2019
£ 000's
14
53
67
8
75
2019
£ 000's
1,780
1
1,781
Total
2019
£ 000's
9,311
687
2,527
2,410
61
14,996
169
208
898
28
1,303
16,299

(a) Total expenditure

Depreciation and other costs relating to the Schools endowed fund properties totalling £635 (2019 - £635) have been charged directly to this endowment fund.

34

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

7 ANALYSIS OF EXPENDITURE (continued)

Governance included in support costs:
Auditors' remuneration - audit
- other services
- prior year (over)/under provision
Other governance costs
STAFF COSTS AND RELATED PARTY TRANSACTIONS
Total staff costs comprised:
Salaries and wages
Social Security contributions
Pension contributions		 2020
£ 000's
24
1
-
1
26
2020
£ 000's
7,537
823
1,293
9,653		 2019
£ 000's
28
-
(1)
5
32
2019
£ 000's
7,193
769
927
8,889

The remuneration of the highest paid employees fell within the following bands (excluding pension contributions).

2020 2019
£50,000 - £59,999
£60,001 - £70,000 12 10
£70,001 - £80,000 5 5
£80,001 - £90,000 1 2
£90,001 - £100,000 2 1
£110,000 - £119,999 1 1
£170,001 - £180,000 - 1
£201,000 - £210,000 1 -

The number of higher paid employees for whom retirement benefits are accruing under a money purchase scheme amounted to 2 (2019 - 2) and under a defined benefit scheme 19 (2019 - 18).

In the table above, one employee’s remuneration structure was changed with regard to pension arrangements, which results in the movement of that employee to a significantly higher band on 2020 because of the way the table has to be calculated. The cost to the School of this employee did not rise as a result of this restructuring.

35

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

9 TANGIBLE ASSETS

Group and School
Cost at 1 September 2019
Additions
Disposals
Cost at 31 August 2020
Depreciation at 1 September 2019
Disposals
Charge for year
Depreciation at 31 August 2020
Net book value at 31 August 2020
Net book value at 31 August 2019
10 INVESTMENTS
GROUP INVESTMENTS
Valuation at 1 September 2019
Additions
Disposals at opening market value
Revaluations
Group valuation at 31 August 2020
Group Investments comprise:
Cash
Non-UK investments assets
UK investment assets
Investment properties
School Investments comprise:
Cash
Non-UK investments assets
UK investment assets
Investment properties		 Freehold
Long Leasehold
property
property
£ 000's
£ 000's
18,158
270
2,435
-
-
-
20,593
270
1,889
63
-
-
288
5
2,177
68
18,416
202
16,269
207
Unrestricted
Designated
£ 000's
£ 000's
6,599
1,434
-
310
-
(326)
-
(19)
6,599
1,399
MV
Cost
£ 000's
£ 000's
247
247
2,165
2,102
122
133
6,599
6,599
9,133
9,081
At
31/08/2020		 Equipment
& vehicles
Total
£ 000's
£ 000's
789
19,217
58
2,493
(29)
(29)
818
21,681
618
2,570
(29)
(29)
37
330
626
2,871
192
18,810
171
16,647
Endowed
Total
£ 000's
£ 000's
1,165
9,198
249
559
(264)
(590)
(15)
(34)
1,135
9,133
At
At
31/08/2020
31/08/2019
MV
MV
£ 000's
£ 000's
247
154
2,165
2,114
122
331
6,599
6,599
9,133
9,198
MV
Cost
£ 000's
£ 000's
154
154
2,114
1,942
331
237
6,599
5,859
9,198
8,192
At
31/08/2019

The investment properties were valued in August 2019 by Bidwells LLP Chartered Surveyors (regulated by RICS).

36

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

10 INVESTMENTS (continued)

Other Investments

Three Ordinary £1 shares in John Insomuch Schoolmaster Printer (1479) Limited are held by the directors of the company on behalf of St Albans School. The company is a wholly owned dormant subsidiary. The net assets are insignificant.

Six ordinary £1 shares in Abbey Gateway Enterprises are held by St Albans School. The company is a wholly owned subsidiary. The results have been consolidated with the School accounts (see note 22).

11
DEBTORS
Due within one year
Fees
Income tax recoverable
Sundry debtors
Prepayments		 Group
2020
£ 000's
141
20
26
445
632		 Group
2019
£ 000's
30
27
72
485
614		 School
2020
£ 000's
141
20
25
442
628		 School
2019
£ 000's
30
27
65
483
605

12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts
Foundation loan
Fees and deposits received in advance
Trade creditors
Other taxation and social security
Other creditors
Advance fee scheme deferred income
Accruals and deferred income		 Group
2020
£ 000's
690
-
1,445
497
205
215
840
376
4,268		 Group
2019
£ 000's
665
350
1,789
942
228
220
900
446
5,540		 School
2020
£ 000's
690
-
1,445
468
202
215
840
364
4,224		 School
2019
£ 000's
665
350
1,789
942
207
169
900
460
5,482

Pupil Fees Deposits – the total amount held in relation to fee deposits of £735,800 is included above. In the normal course of business the expected repayment of these amounts will be £267,200 (2019: £264,600) within one year and £468,600 (2019: £446,500) after more than one year. The Governors have reviewed the contract terms under which Pupil fee deposits are held by the School. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the School, pupils can leave at earlier dates. The School does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2020 have been included within current liabilities.

37

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans
Other taxation and social security
Pension provision - Pensions Trust		 Group
2020
£ 000's
2,766
-
134
2,900		 Group
2019
£ 000's
3,456
32
165
3,653		 School
2020
£ 000's
2,766
-
134
2,900		 School
2019
£ 000's
3,456
-
165
3,621

Barclays Bank Plc has a first legal charge over the freehold property 2 Romeland Hill, St Albans. The mortgage is repayable by instalments over 20 years from December 2003 with a variable interest rate of 1.35% over Barclays base rate.

Clydesdale Bank has a first legal charge over the freehold property 31 Fishpool Street. The loan is repayable by instalments over 10 years from September 2011 with a fixed interest rate of 4.35%.

Clydesdale Bank has a first legal charge over the freehold property 25 Fishpool Street, St Albans. The mortgage is repayable by instalments over 10 years from June 2013 with an interest rate of 2% over LIBOR.

Clydesdale Bank has a first legal charge over two trust titles at Cheapside Farm and a second legal charge over a further two titles. The loan is repayable by instalments over 10 years from August 2014 with a fixed interest rate of 5.46%.

A further Clydesdale Bank loan is repayable by instalments over 5 years from June 2019 with an interest rate of 3.51% fixed until June 2022.

14 MATURITY OF DEBT ANALYSIS

Amount falling due:
In one year or less or on demand
In more than one year but not more than two years
In more than two years but not more than five years
In more than five years
Secured		 2020
£ 000's
690
2,153
613
-
3,456		 2019
£ 000's
665
690
2,766
-
4,121

38

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

15 LEASES

The future minimum lease payments under non-cancellable operating leases are :

----- Start of picture text -----
|||||| |---|---|---|---|---| |Land and buildings|Other| |2020|2019|2020|2019| |£ 000's|£ 000's|£ 000's|£ 000's| |Less than 1 year|-|-|175|418| |Between 1 and 5 years|-|-|290|460| |-|-|-|-| |Greater than 5 years|

----- End of picture text -----

During the year, operating lease payments of £465,233 were expensed through the Statement of Financial Activities.

16 CAPITAL COMMITMENTS

At the year end the School had no capital commitments (2019-£2,186,823).

17 ALLOCATION OF THE CHARITY NET ASSETS

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Net|2020| |Tangible|current assets|Long term|Total| |assets|Investments|/(liabilities)|liabilities|net assets| |£ 000's|£ 000's|£ 000's|£ 000's|£ 000's| |Permanent endowed funds|15|-|52|-|67| |-|-| |Expendable endowed funds|1,136|(94)|1,042| |Restricted funds|-|-|989|-|989| |Unrestricted funds:| |-|-| |Designated|1,401|2,543|3,944| |School reserves|18,795|6,596|(3,419)|(2,766)|19,207| |Pension reserve|-|-|(29)|(134)|(163)| |18,810|9,133|43|(2,900)|25,085| |Net|2019| |Tangible|current assets|Long term|Total| |assets|Investments|/(liabilities)|liabilities|net assets| |£ 000's|£ 000's|£ 000's|£ 000's|£ 000's| |Permanent endowed funds|15|-|53|-|68| |-|-| |Expendable endowed funds|1,164|(95)|1,069| |Restricted funds|3,935|-|2,733|-|6,668| |Unrestricted funds:| |-|-| |Designated|1,438|2,539|3,977| |School reserves|12,697|6,596|(3,953)|(3,488)|11,852| |Pension reserve|-|-|(29)|(165)|(194)| |16,647|9,198|1,248|(3,653)|23,440|

----- End of picture text -----

39

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18 SUMMARY OF MOVEMENTS ON MAJOR FUNDS

SCHOOL
School Reserve
Pension Reserve
DESIGNATED FUNDS
Bursary Fund
School Tours Fund
School Foundation Fund
UNRESTRICTED FUNDS
RESTRICTED FUNDS
Scholarship & Bursary Trust
John Clough Bursary Trust
Foundation Maths Fund
Foundation Bursary Fund
ENDOWED FUNDS
Permanent endowed funds
John Clough Bursary Trust
St Albans School Trust
Expendable endowed funds
Scholarship and Bursary Trust
& others
TOTAL RESERVES*
Covid-19 Hardship Fund
Stephen Hawking Memorial Fund		 Balance
b/fwd
2019
£ 000's
11,852
(194)
11,658
2,809
83
585
500
3,977
15,635
-
-
5,964
704
-
6,668
54
14
68
1,069
1,137
23,440		 Income
£ 000's
16,983
16,983
29
49
44
-
122
17,105
22
1
630
37
143
833
-
-
-
-
-
17,938		 Funds
spent
£ 000's
(15,864)
31
(15,833)
(16)
(117)
(128)
(61)
(322)
(16,155)
-
-
(40)
(3)
(46)
(89)
-
(1)
(1)
(12)
(13)
(16,257)		 Transfers
£ 000's
6,235
-
6,235
188
-
-
-
188
6,423
-
-
(6,423)
-
-
(6,423)
-
-
-
-
-
-		 Net
Gains/
income/
(Losses)
(expenditure)
£ 000's
£ 000's
7,354
-
31
-
7,385
-
201
(21)
(68)
-
(84)
-
(61)
-
(12)
(21)
7,373
(21)
22
-
1
-
(5,833)
-
33
-
97
-
(5,679)
-
-
(1)
-
(1)
-
(12)
(15)
(13)
(15)
1,681
(36)		 Balance
c/fwd
2020
£ 000's
19,206
(163)
19,043
2,989
15
501
439
3,944
22,987
22
1
131
738
97
989
54
13
67
1,042
1,109
25,085

Transfers are made from the School to the Bursary Funds termly based on pupil numbers so as to fund designated expenditure, which amounted to £1,006,190. Bursaries and Scholarships of £818,293 were funded from the Bursary Fund.

The transfer from the Foundation Fund to the School Fund are in respect of the value of the new maths block, which is no longer restricted as the project is complete.

40

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

18 (Continued)
SUMMARY OF MOVEMENTS ON MAJOR FUNDS - 2019 COMPARATIVE
Balance
Income
Funds
Transfers
b/fwd
spent
2018
£ 000's
£ 000's
£ 000's
£ 000's
SCHOOL
School reserve
10,875
17,121
(16,134)
(163)
Pension reserve
(228)
34
-
10,647
17,121
(16,100)
(163)
DESIGNATED FUNDS
Bursary fund
2,591
33
(16)
163
School tours fund
24
136
(77)
-
School foundation fund
284
361
(60)
-
Stephen Hawking Memorial Fund
500
-
-
-
3,399
530
(153)
163
UNRESTRICTED FUNDS
14,045
17,651
(16,253)
-
RESTRICTED FUNDS
Scholarship & Bursary Trust
-
27
(27)
-
John Clough Bursary Trust
-
1
(1)
-
Foundation Maths Fund
4,630
1,334
-
-
Foundation Bursary Fund
612
97
(5)
-
5,242
1,459
(33)
-
ENDOWED FUNDS
Permanent endowed funds
John Clough Bursary Trust
53
-
-
-
St Albans School Trust
15
-
(1)
-
68
-
(1)
-
Expendable endowed funds
Scholarship and Bursary
1,052
-
(12)
-
Trust & others
1,120
-
(13)
-
TOTAL RESERVES*
20,408
19,110
(16,299)
-		 Net
Gains/
income/
(Losses)
(expenditure)
£ 000's
£ 000's
824
153
34
-
858
153
180
38
59
-
301
-
-
-
540
38
1,398
191
-
-
-
-
1,334
-
92
-
1,426
-
-
1
(1)
-
(1)
1
(12)
29
(13)
30
2,811
221		 Balance
c/fwd
2019
£ 000's
11,852
(194)
11,658
2,809
83
584
500
3,977
15,635
-
-
5,964
704
6,668
54
14
68
1,069
1,137
23,440

Transfers are made from the School to the Bursary Funds termly based on pupil numbers so as to fund designated expenditure, which amounted to £948,668. Bursaries and Scholarships of £786,215 were funded from the Bursary Fund.

41

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

19 PURPOSE OF FUNDS

(a) Designated:

(b) Restricted:

Expendable endowment:

Permanent endowment:

42

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

20 PENSION SCHEMES Teaching staff

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,132,960 (2019: £763,638 ) and at the year-end £nil (2019 - £nil) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Non-teaching staff

Non-teaching staff are offered membership of defined contribution schemes offered by The Pension Trust. The employer's contributions are charged in the Statement of financial Activities in the period in which the salaries to which they relate are due. During the accounting period, The School paid contributions to non- teaching staff pensions totalling £158,781

43

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

PENSION SCHEMES (continued)

Some staff continue to hold funds in Growth Plan Series I to III, although no contributions were made after 30th September 2013. This is a multi-employer scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the School has agreed to a deficit funding arrangement the School recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

PRESENT VALUES OF PROVISION

PRESENT VALUES OF PROVISION
31 Aug 31 Aug 31 Aug
2020 2019 2018
(£000's) (£000's) (£000's)
Present value of provision 163 194 228
PRESENT VALUES OF PROVISION PRESENT VALUES OF PROVISION PRESENT VALUES OF PROVISION PRESENT VALUES OF PROVISION
31 Aug
2020
31 Aug
2019
31 Aug
2018
(£000's)
(£000's)
(£000's)
Present value of provision
163
194
228
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at end of period		 Period
Ending
31 Aug
2020
(£000's)
194
2
(34)
1
-
163		 Period
Ending
31 Aug
2019
(£000's)
228
4
(32)
4
(10)
194

44

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

PENSION SCHEMES (continued)

INCOME AND EXPENDITURE IMPACT

INCOME AND EXPENDITURE IMPACT
Period Period
Ending Ending
31 Aug 31 Aug
2020 2019
(£000's) (£000's)
Interest expense 2 4
Remeasurements – impact of any change in assumptions 1 4
Remeasurements – amendments to the contribution schedule - (10)
ASSUMPTIONS
31 Aug 31 Aug 31 Aug
2020 2019 2018
% per % per % per
annum annum annum
Rate of discount 0.55 0.97 1.68

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

The following schedule details the deficit contributions agreed between the School and the scheme at each year end period:

DEFICIT CONTRIBUTIONS SCHEDULE

Year ending 31 Aug
2020		 31 Aug
2019		 31 Aug
2018
(£000's) (£000's) (£000's)
Year 1 35 34 31
Year 2 36 35 32
Year 3 37 37 33
Year 4 39 38 34
Year 5 16 39 35
Year 6 - 16 36
Year 7 - - 37
Year 8 - - 3
Year 9 - - -
Year 10 - - -

The School must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive the School's balance sheet liability.

45

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

21 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES - COMPARATIVE FIGURES BY FUND-TYPE

Notes
Income and endowments from:
Charitable activities
School fees receivable
2
Other educational income
3
Other trading actvities
Non- ancillary trading income
4
Other activities
4
Investments
Investment income and interest
5
Donations and legacies
Donations
6
Total income
Expenditure on:
7
Raising funds
Financing costs
Development office
Investment management costs
Total deductible costs
Charitable activities
Education
Net incoming/(outgoing)funds from operations
before transfers and investment gains
Gains/(losses) on other investments
Net movement in funds for the year
Fund balances brought forward at 1 September 2018
Fund balances carried forward at 31 August 2019
18
Non ancilliary trading
Total expenditure		 Unrestricted Restricted
Endowed
Funds
Funds
Funds
2019
£ 000's
£ 000's
£ 000's
£ 000's
15,041
-
-
15,041
1,771
-
-
1,771
309
-
-
309
133
-
-
133
42
33
-
75
355
1,426
-
1,781
17,651
1,459
-
19,110
169
-
-
169
208
-
-
208
898
-
-
898
15
-
13
28
1,290
-
13
1,303
14,963
33
-
14,996
16,253
33
13
16,299
1,398
1,426
(13)
2,811
191
-
30
221
1,589
1,426
17
3,032
14,046
5,242
1,120
20,408
15,635
6,668
1,137
23,440

46

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

22 ABBEY GATEWAY ENTERPRISES LTD FINANCIAL STATEMENTS

Stock
Debtors
Cash at bank and in hand
CURRENT LIABILITIES
NET CURRENT ASSETS
CREDITORS FALLING DUE AFTER ONE YEAR
TOTAL NET ASSETS
CAPITAL AND RESERVES
Called up share capital
Capital redemption reserve
Profit and loss account
PROFIT AND LOSS ACCOUNT
Turnover
Operating costs
GROSS PROFIT
Administrative expenses
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
Tax expense
RETAINED PROFIT FOR THE YEAR
BALANCE SHEET
CURRENT ASSETS		 2020
£
61,827
3,407
36,477
101,711
(43,225)
58,486
-
58,486
6
1
58,479
58,486
1,056,578
(1,003,355)
53,223
(52,571)
652
-
652		 2019
£
51,594
8,085
88,451
148,130
(58,007)
90,123
(32,289)
57,834
6
1
57,827
57,834
970,678
(864,640)
106,038
(94,478)
11,560
-
11,560

Abbey Gateway Enterprises Limited (registered company number - 03451049) results are consolidated with the Charity. The company became a fully owned subsidiary of St Albans School on 1 September 2016.

47

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

23 RELATED PARTY TRANSACTIONS

St Albans School charged Abbey Gateway Enterprises Ltd management fees of £5,900 in the year to 31 August 2019 and no amounts were outstanding at the year end. Abbey Gateway Enterprises Ltd received income amounting to £824,500 (2019 - £661,317) from St Albans School which included the licence fee for the use of sports facilities and sales to the School of sports kit. No amounts were outstanding at the year end. The position of the single entity is shown in note 22.

Woollam Playing Field Trust charged Abbey Gateway Enterprises Ltd licence fees, for the use of sports facilities, of £944,500 (2019 -£788,160) in the year to 31 August 2019 and no amounts were outstanding at the year end. Woollam Playing Field Trust charged St Albans School licence fees, for the use of sports facilities, of £250,000 and St Albans School charged Woollam Playing Field Trust management charges of £5,000. No amounts were outstanding at the year end.

48