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2021-08-31-accounts

ST ALBANS SCHOOL

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

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 20
Consolidated Statement of Financial Activities 23
Consolidated Summary Income and Expenditure Account 24
Consolidated and School Balance Sheets 25
Consolidated Cash Flow Statement 26
Notes to the Financial Statements 28-47

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ST ALBANS SCHOOL

CONTENTS

Page
Annual Report of the Governors 2
Independent Auditor’s Report 20
Consolidated Statement of Financial Activities 23
Consolidated Summary Income and Expenditure Account 24
Consolidated and School Balance Sheets 25
Consolidated Cash Flow Statement 26
Notes to the Financial Statements 28-47

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ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2021

The St Albans School Governors present their Annual Report for the year ended 31 August 2021 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:

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 play an important role in the local community, fostering scholarship and intellectual enquiry at the heart of an exceptional holistic education. Enriched by inspirational teaching, wide-ranging 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 ever-changing 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, and that is attractive to pupils, parents and staff.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2021

Aims

WE AIM TO DELIVER OUR ETHOS AND VALUES, REALISE OUR VISION AND ACHIEVE OUR GOAL BY:

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2021

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 890 pupils (2020 – 860) throughout the financial year and opened in September 2021 with 882 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 financial year saw the continuation of the Covid-19 pandemic. In accordance with Government requirements, the School site was closed from January 2021 to March 2021. 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 Teacher Assessed Grades based on evidence collected by the School. All of this brought operational and financial consequences for the School which are covered in the relevant sections below.

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 £861,430 (2020 - £882,585) were awarded in the year. Of this total, £563,730 (65%) was awarded through means-tested bursaries. A further £106,275 was awarded through the Covid hardship fund. A total of 174 pupils in the School received either a bursary or scholarship during the year (2020: 178) of whom 8 received total remission of fees (2020: 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, a significant hardship fund 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 all fee COVID-related remissions in the year were covered by this fund. Governors would like to take this opportunity to thank all donors to this fund.

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 announced in January that the Summer 2021 public examinations were cancelled due to the Covid-19 situation. This was very disappointing for our candidates who were keen to have the opportunity to sit these important examinations. After several months of uncertainty, the procedures for awarding grades were published at the end of March. Pupils coped admirably with the difficulties caused by the uncertainty and showed flexibility and resilience in adjusting to the new system.

The School carefully followed the alternative processes put in place by Ofqual and the examination boards, creating a Centre Policy and submitting Teacher Assessment Grades (TAGs) in June in accordance with their requirements. Pupils sat assessments in controlled conditions over the course of three assessment weeks in April and May. These assessments, along with a range of additional assessment from throughout their courses, were included in their ‘evidence basket’; teachers awarded holistic grades on the basis of this evidence according to guidance from the awarding authorities.

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At A Level in 2021, A grades account for 53% of all grades (37% in 2020) and A and A grades are at 83% (72% in 2020). Eight pupils achieved 4 A grades and fifty pupils gained at least 3 As. 93 gained at least 2 As and 128 pupils (over three quarters of our entry) gained at least 1 A.

The School's 2021 GCSE results are similarly impressive. 75% of examinations taken were graded 9-8. 87% (116 of 133) of the year group gained at least five 9/8 grades, with over 80% (108) gaining at least six 9/8 grades. Over half of our candidates (75) gained at least eight 9/8 grades. Nine students achieved straight 9 grades and a further nineteen achieved straight 9s and 8s. An impressive twenty-six pupils achieved ten 9/8s.

79% of students who applied to university in 2021 secured a place at their first preference university on results day with 10% being offered a place at their second preference university. 82% were offered places at Russell Group universities with 11% confirming places at former 1994 Group universities. Thirteen students will be enrolling on Medicine or Dentistry courses. Nine students will take up Oxbridge places (3 at Oxford and 6 at Cambridge). The most popular destinations for St Albans School alumni this year are Bristol, Durham, Exeter, Nottingham and Bath.

St Albans School believes that a good education is about so much more than examination results and university places. Our pupils undertake a Learning to Learn (LTL) programme and develop transferable skills across the curriculum; they leave us with the skills and qualities they will need to be successful in the rest of their lives. The thriving programme of academic enrichment beyond the classroom supports and facilitates curiosity and enables the development of independent thinking and academic excellence. Activities include lecture programmes, the creation of academic magazines and journals, trips, national competitions and a vast array of academic societies.

Music

Alongside its academic curriculum, and despite the restrictions that COVID has place on music-making over the last 18 months, the Music Department continues to run a busy Co-Curricular Programme. Twenty ensembles continued to rehearse each week, culminating in a Virtual Autumn Instrumental Concert in December in addition to several Lunchtime Concerts, solo performances and ensemble events that were streamed both in and out of School.

The Department collaborated with the Drama Department in a Musical Review show featuring singing and playing from Sixth Form musicians. This live event was extremely well-attended by students and also streamed to parents and staff.

With large gatherings not allowed, the School Choir were restricted to recording performances which were used for our streamed School assemblies as well as the Virtual Carol Service and Founders’ Day Service .

We ended the year with live concerts by our Leavers and also by our Senior Music Scholars, and it was a relief to be able to stage these live events once again.

Sport - Participation

The opportunities for competitive sport have been limited in this past academic year due to restrictions on mixing of bubbles from DES guidance and National Governing Bodies adapting their advice in relation to competitive sport. In the first term, up until half term, we ran and organised a very well supported franchise style rugby competition internally within year groups and commenced a mixed lacrosse session for the two sixth form year groups.

The development of more mixed sport was a very positive off shoot of the restrictions and something we will keep trying to develop and encourage moving forwards. All competitive sport was curtailed after half term in November 2020 and did not resume until late May when we began to be able to play inter school fixtures in cricket, tennis, and athletics in a managed way, which was a very positive development for many of our students.

The Co-Curricular sport programme remained well supported throughout the year but the frequency and range of activities we could offer was curtailed by the bubbling of year groups and the limitation of not mixing year groups. This

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impacted provision of transport, changing, facility use, and we had to block off the sports centre each evening for a single use by a year group. Therefore, overall participation data for the academic year saw 62% of pupils engage in school team sport in the summer term or join the franchise programme earlier in the year. A decline of 6% from the previous year but given we missed a whole term of sport in the Spring this is encouraging and a positive reflection of the attitudes of students and staff to be involved and provide opportunities to play sport.

The past year has also seen us re-write the strategic vision for sport in the school and this led to the creation of new responsibilities and roles within the department. The creation of a Head of Performance (Tom Smith) has helped regenerate a focus and support for those students in the school who strive to maximise their potential in their chosen sports. His ideas and plans have been built into the strategic plan and initiatives are being implemented as we start this academic year. A role as Head of Engagement (Jeremy Walmsley) has been created to build on the good work we had started to include and encourage the students in the school who find sport and physical activity less rewarding. This has brought about targeted activities in our Co-Curricular program specifically for this group including Nerf Wars, Octopush, Fit Fun Fridays’.

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

Team/Sports Achievements & Firsts:

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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 and 2021 as a result of the Covid pandemic.

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 £5.7m per annum for the 880 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

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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.

Much of this use is provided by the School free of charge or at low cost to cover out of pocket expenses.

From March 2020 and for much of the financial year covered by this report, this activity had to be curtailed because of the restrictions arising from the Covid pandemic.

4. The extensive partnerships with local schools

COVID brought some new challenges to the Parentship and Community Link programmes.

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The School’s Partnership and Community Link pupils followed a different programme during the last academic year since covid restrictions meant that pupils were not allowed off-site to go to their usual placements and our local Partnership schools were not permitted to visit us onsite.

With over 80 students having chosen Partnership or Community Link and realising that it was not going to be possible to follow our usual activities, new Friday Afternoon activities were developed to offer pupils the chance to develop new life-skills and take part in activities that would be useful to add to UCAS applications, whilst at the same time continuing our outreach activities in the community. We developed a carousel of activities that would be useful and enjoyable for Lower Sixth pupils and utilise the facilities and the skills of the staff that we had available on Friday afternoons.

Activities included: Driving Theory, Self-Defence, Student Finance and Budgeting, Pool Life-saving skills, Public speaking and presentations, Introduction to photography and photoshop etc.

We also included some fun activities and sports as we had the Sports Hall available, and the Lower Sixth pupils expressed their frustration at not having been able to get as much exercise as they would like. These sessions included a mini football tournament, film club, martial arts lessons, footgolf (Westminster Golf Course), swimming stroke improvement sessions (school pool) and advanced tennis skills (Woollams). We were very grateful to the PE Dept and CCF for their flexibility in sharing their spaces and facilities with us and to the teachers who were sometimes being asked to supervise activities out of their comfort zones.

Whilst there was a good deal of choice for the pupils, they all had some compulsory elements of the course. All 80+ pupils completed a First Aid course run by a parent of an ex-pupil, who had recently set up a company teaching first aid to teenagers, and they all gained their First-Aid qualification. All 20+ Community Link pupils did an online course learning BSL (sign language for the deaf), and all the Partnership pupils worked in rotation on Partnership activities including developing Science modules that could be taught once pupils were allowed back on site and making a quiz booklet to send out to the Partnership Pupils at Christmas. They also put together folders of poems, letters and pictures to send to the Care Homes that we had been unable to visit during lock-down.

As well as finding different and valuable activities for the 80+ Lower Sixth pupils on Friday afternoons we also realised that was important to continue to focus on community outreach and consequently the School’s Partnership programme adapted to the circumstances and rapidly mobilised to support the local community in various ways, all in line with our motto (‘non nobis nati’) and values. Here are some of the community-based activities that took place during the year: Partnership Sixth Form pupils who were unable to visit their usual partnership placements put together puzzle books and quizzes to send to the partnership primary schools and created folders of poems, letters and pictures which were sent to the local care homes, school alumni and elderly members of the community who were self-isolating.

Remote learning provided us with an opportunity to share school resources, lessons and expertise and our Head of PSHEE who had been very involved in Partnership adapted her remote learning lessons for our Partnership Primary schools and sent out weekly power point lessons to share with the local schools. Alongside this we welcomed over 100 local Sixth Formers to our popular Stephen Hawking Society lectures. The lecture club is aimed at Sixth Form scientists and mathematicians and has been fortunate enough to attract speakers such as Nobel Prize Winner Tim Hunt, Sir Michael Berry, and Professor Stephen Hawking in the 15 years since its formation. As the lectures were taking place remotely, we were able to extend an invitation to Sixth Form students from many schools across Hertfordshire and guest speakers joined us from home and abroad. Another of our co-curricular activities PhysicsBeyond ( developed for year 12 & 13 students with an interest in Physics and Maths and exploring the subject beyond the school syllabus) was also offered to local schools and these pupils joined the sessions remotely via Teams.

More recently a St Albans School parent, along with her GP colleagues, who had been running a large Covid Vaccination Centre for the residents of Hertsmere approached us with a request for some assistance. The medical team had been preparing the Pfizer and AstraZeneca vaccinations in the kitchen and transferring them to the tables in the hall for their group of volunteers to administer. The parent reached out to St Albans School Design and Technology Department to ask for support in designing a container that they could use to transport the vaccines safely. The Department worked with

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the assistance of a group of Fourth Form GCSE pupils, in designing and producing suitable trays, built to the specifications requested and the response of the volunteer vaccinators was very positive. They told us, ‘The containers will totally transform the way we can safely deliver these lifesaving vaccines to our patients,’ and ‘it will allow us to work even faster giving the Covid vaccine.’

Whilst missing out on the opportunity to take part in our usual Partnership activities and interacting with our local primary schools and Care Homes last year, the Sixth Form pupils involved were actively involved and engaged in the alternative activities on site on Friday afternoons and gained some useful knowledge and skills throughout the year.

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.

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:-

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.

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The School also has a Green Council, where pupils and staff meet to review progress and consider what further steps might be taken.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The School had 890 pupils at the end of the financial year (2020 – 860). The School population from September 2021 was 882 pupils.

Total income of the School (excluding donations) for the year was up by 2.8% on the corresponding period in 2019/20. 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 £1,399,524 (2020 - £828,789), some 8.6% 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 £774,661, 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. These donations have significantly assisted in our ability to provide funding both for the future and for current needs.

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 890 pupils provides saving to the taxpayer of around £5.8million, 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.

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Reserves Policy

The total funds of the Charity at 31 August 2021 amounted to £27,436,522 (2020 - £25,084,802) of which £1,212,914 (2020 - £1,108,482) were endowed funds, £1,250,694 restricted and £24,972,914 unrestricted ( 2020 - £989,153 and £22,987,167 respectively). The unrestricted funds include designated funds which represent Bursary, Foundation, Professor Hawking Memorial Fund and Tour funds and amounted to £3,592,901 (2020 – £3,944,537) 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 (non-designated,unrestricted reserves less fixed assets minus loans on such assets) amounted to £3,723,621 (2020 - £2,524,799) 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.

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.

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.

The fund managers aim to preserve the portfolio above the rate of inflation. For the year to 31 August 21 this performance was achieved.

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 such that the new plan will be in place in 2022.

GROUP STRUCTURE AND RELATIONSHIPS

The School has two connected charities:

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

The Trust received monies donated by public appeal and passed those monies to the School as the objects of the appeals were discharged. All work for which appeals were made has been completed and this entity is now inactive. The Trust is currently the lessee of certain land at Cheapside Farm in connection with the development of playing fields by the Old Albanian Sports Association Limited.

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The objects of the Charity, as set out in the Charity Commission Scheme, are:

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 2021.

Results for Abbey Gateway Enterprises Limited show a retained loss for the year of £16,217 (2020 – £652).

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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 2021

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. Governors have also considered the issues of cost pressures, with general inflation being seen across all areas and especially with energy costs. 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.

Ms L Ainsworth 4, 5, 6
P Brown (OA) 3 Resigned 8 February 2021
Lt Col MWS Cawthorne RM Retd 4, 5
A Dalwood (OA) 2, 4, 6 Resigned 10 October 2021
Sir Roy Gardner (Chairman until May 2021) 2, 4 Resigned 8 May 2021
Ms A Hurst 1, 4 Resigned 20 March 2021
Mrs F Lightowler 2,3 Appointed 26 June 2021
RR Lucas 2 Resigned 8 May 2021
Professor J Luzio (Interim Chair May-Sept 2021) 1, 6
C McIntyre 6
S Majumdar 4
N Moore (OA) 5, 7
C Oglethorpe 1, 4 Appointed 26 June 2021
N Osborn (OA) (Chairman Oct 2021 onwards) 4 Appointed 15 September 2021
Ms A Philpott 1 Appointed 26 June 2021
Mrs C Pomfret 2, 6, 7
M Punt 1
A Woodgate (OA) 3, 7

1 - Education Committee, 2 – Finance Committee, 3 – Property Committee, 4 – Nominations, Remuneration and Governance Committee, 5 – Audit & Risk Committee, 6 – Covid Committee, 7 - North St Albans 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.

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

16

ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2021

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.

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

P Brown

O King 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.

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.

Recruitment and Training of Governors

Governors are appointed on the recommendations received from Governors concerning eligibility, specialist skills and availability.

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

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ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2021

made that are likely to affect their interests. Employees are made aware of the financial and economic performance of the School.

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 (Cantab), FRSA Second Master Ms Melody Jones BSc Deputy Head – Teaching and Learning Mrs Victoria Saunders BA, MEd Deputy Head - Staff Gareth Nichols BA, MEd The Bursar & Clerk to the Governors Richard Hepper MA (Cantab), 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 (Cantab), 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 CMS Cameron McKenna Nabarro Olswang LLP – Cannon Place, 78 Cannon street London EC4N 6AF

AUDITORS

Crowe U.K. LLP - 55 Ludgate Hill, London EC4M 7JW

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ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2021

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 5[th] March 2022, including in their capacity as company directors approving the Directors’ and Strategic Report therein, and is signed on its behalf by:

Mr Neil Osborn

Chairman and Director

19

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 (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 August 2021 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheets, the Group Statement of Cash Flows and notes to the financial statements, including 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

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. 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.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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

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ST ALBANS SCHOOL

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ 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, 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

21

ST ALBANS SCHOOL

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

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, employment legislation, health and safety legislation and general data protection legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, performing analytical reviews and testing income for completeness, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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: 14 April 2022

22

ST ALBANS SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021 (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

----- Start of picture text -----
Unrestricted Restricted Endowed
Funds Funds Funds 2021 2020
Notes £ 000's £ 000's £ 000's £ 000's £ 000's
Income and endowments from:
Charitable activities
School fees receivable 2 16,201 - - 16,201 15,170
Other educational income 3 1,048 - - 1,048 1,199
Other trading actvities
Non-ancillary trading income 4 104 - - 104 232
Other activities 4 154 - - 154 144
Investments
Investment income and interest 5 31 29 - 60 58
Donations and legacies
Donations 6 697 54 - 751 850
Other Income
Other income 76 76 285
Total income 18,311 83 - 18,394 17,938
Expenditure on: 7
Raising funds
Financing costs 123 - - 123 154
Development office 214 - - 214 190
Non- ancilliary trading 938 - - 938 1,033
Investment management costs 16 13 - 29 29
Total deductible costs 1,291 13 - 1,304 1,406
Charitable activities
Education 14,764 168 - 14,932 14,851
Total expenditure 16,055 181 - 16,236 16,257
Net incoming/(outgoing) funds from operations
-
before transfers and investment gains 2,256 (98) 2,158 1,681
Gains/(losses) on other investments 131 - 106 237 (36)
Transfers between funds 18 (253) 253 - - -
Net income and capital inflow 2,134 155 106 2,395 1,645
Fund balances brought forward at 1 September 2020 22,987 989 1,109 25,085 23,440
Fund balances carried forward at 31 August 2021 18 25,121 1,144 1,215 27,480 25,085
----- End of picture text -----

The notes on pages 28 to 47 form part of these financial statements.

23

ST ALBANS SCHOOL

CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

----- Start of picture text -----
2021 2020
Notes £000's £000's
Income from:
Charitable activities
School fees 2 16,201 15,170
Other educational income 3 1,048 1,199
Other trading activities
Sub-letting and management charges 4 154 144
Non ancillary trading income 104 232
Investments
Dividends, bank and other interest 5 60 58
Donations and legacies
Grants and donations - Unrestricted 697 43
- Restricted 6 54 807
Other income 76 285
Total income 18,394 17,938
Expenditure on: 7
Costs of raising funds
Financing costs 123 154
Development office 214 190
Non ancillary trading 938 1,033
Investment management costs 29 16
1,304 1,393
Charitable activities
Education 14,932 14,851
Total expenditure 16,236 16,244
Net income before investment gains and inter-fund transfers 2,158 1,694
Net investment gains for the year 131 (21)
Net income for the year 2,289 1,673
----- 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 23 and its presentation is required under the Companies Act 2006.

24

ST ALBANS SCHOOL

COMPANY REGISTRATION NUMBER 04400125 CONSOLIDATED AND SCHOOL BALANCE SHEETS AS AT 31 AUGUST 2021

----- Start of picture text -----
Group School
2021 2020 2021 2020
Notes £000's £000's £000's £000's
FIXED ASSETS
Tangible assets 9 19,574 18,810 19,574 18,810
Investments 10 9,341 9,133 9,341 9,133
28,915 27,943 28,915 27,942
CURRENT ASSETS
Stock 53 62 - -
Debtors 11 676 632 657 628
Cash and deposits 4,572 3,616 4,452 3,579
5,301 4,310 5,109 4,207
CURRENT LIABILITIES
Creditors payable within one year 12 (6,023) (4,268) (5,876) (4,224)
NET CURRENT ASSETS (722) 42 (767) (17)
TOTAL ASSETS LESS CURRENT
LIABILITIES 28,193 27,985 28,148 27,926
LONG-TERM LIABILITIES 13
Creditors payable after one year (614) (2,766) (614) (2,766)
Pension Scheme funding deficit (99) (134) (99) (134)
NET ASSETS 17 27,480 25,085 27,435 25,026
REPRESENTED BY 18
PERMANENT ENDOWED FUNDS 67 67 67 67
EXPENDABLE ENDOWED FUNDS 1,148 1,042 1,148 1,042
RESTRICTED FUNDS 1,144 989 1,144 989
UNRESTRICTED FUNDS
Designated Reserve- includes revaluation reserve of
£126,303 (2020: £12,085 ) 3,698 3,944 3,698 3,944
School Reserve 21,551 19,206 21,505 19,147
Pension Reserve 20 (128) (163) (128) (163)
TOTAL FUNDS 27,480 25,085 27,434 25,026
----- End of picture text -----

The net result for the financial year dealt with in the financial statements of the parent charity was a surplus of £2,410,707 (2020 £1,648,990).

These financial statements were authorised for issue and approved by the Board on 5th March 2022 and were signed on its behalf by:

Mr Neil Osborn

Chairman of the Governing Body

The notes on pages 28 to 47 form part of these financial statements.

25

ST ALBANS SCHOOL

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

----- Start of picture text -----
Note 2021 2020
£000's £000's
Net cash inflow from operations
Net cash provided by operating activities (i) 2,863 747
Cashflows from investing activities:
Payments for tangible fixed assets (1,131) (2,493)
Additions to securities investments portfolio (29) (28)
Withdrawals from securities investments portfolio 28 28
Investment income and bank interest received 60 58
Net cash provided by investing activities (1,072) (2,435)
Cashflows from financing activities:
Addition/(repayment) of loans (712) (665)
Finance costs paid (123) (154)
Net cash (used in) financing activities (835) (819)
Change in cash and cash equivalents in the reporting period 956 (2,507)
Cash and cash equivalents at the beginning of the reporting
period 3,616 6,123
Cash and cash equivalents at the end of the
reporting period (ii) 4,572 3,616
----- End of picture text -----

26

ST ALBANS SCHOOL

NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

(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		 2021
£000's
2,158
(60)
123
28
367
9
(44)
282
2,863
4,572
4,572		 2020
£000's
1,681
(58)
154
29
330
(11)
(18)
(1,360)
747
3,616
3,616

27

ST ALBANS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 19.

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.

28

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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.

29

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 a reasonable 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 (The Pensions Trust Growth Plan) to non-teaching staff. The School's contributions to the pension schemes are charged to the income and expenditure account as they fall due. Some staff hold funds in Growth Plan Series I to III; although no contributions were made after 30th September 2013. This is a multi-employer scheme where it is not possible to identify separately the assets and liabilities. A liability is recognised for the present value of agreed additional contributions payable to fund a deficit in the scheme related to past service. 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 straight-line 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 Fees in Advance 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.

30

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2 CHARITABLE ACTIVITIES - FEES RECEIVABLE

(a)
School fees comprise:
Gross fees
Less: Bursaries, scholarships, grants and allowances
Add: Scholarships and bursaries paid for by restricted funds
Other scholarships and bursaries paid for by
unrestricted funds:
Foundation funds		 2021
£ 000's
17,372
(1,316)		 2020
£ 000's
£ 000's
16,260
(1,153)
16,055
146
-
16,201		 £ 000's
15,107
50
13
15,170

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

Scholarships
Music awards
Foundation Bursaries
Covid-19 Hardship Fund		 2021
£ 000's
34
1
5
106
146		 2020
£ 000's
-
-
4
46
50

Scholarships and bursaries valued at £ 861,430 (2020- £882,585) were awarded in the year. Of this total, £563,730 (65%) was awarded through means-tested bursaries. An additional £106,275 of bursaries were awarded from the Covid 19 Hardship fund. A total of 178 pupils in the School received either a bursary or scholarship (including Covid 19 awards) during the year (2020: 178) of whom 8 received total remission of fees (2020: 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		 2021
£ 000's
570
92
71
298
8
9
1,048
2021
£ 000's
104
104
12
130
12
154		 2020
£ 000's
483
60
69
320
214
53
1,199
2020
£ 000's
232
232
23
117
4
144

31

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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
Charitable expenditure
Education and grant making
Teaching
Welfare
Premises
Support costs of schooling and governance
Grants, awards and prizes
Total charitable expenditure
Costs of raising funds:
Financing costs
Development office
Investment management
Total costs of raising funds
Total expenditure
Abbey Gateway Enterprises Ltd		 Staff
costs
(Note 8)
£ 000's
7,969
95
399
1,289
-
9,752
-
144
20
-
164
9,916		 Other
costs
£ 000's
1,285
521
1,584
1,267
156
4,813
123
71
918
28
1,140
5,953		 Depreciation
(see below)
£ 000's
33
334
-
-
367
-
-
-
-
-
367		 2021
£ 000's
14
40
54
6
60
2021
£ 000's
651
100
751
Total
2021
£ 000's
9,287
616
2,317
2,556
156
14,932
123
214
938
28
1,304
16,236		 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

Depreciation and other costs relating to the School's endowed fund properties totalling £635 (2020 - £635) have been charged directly to the endowment fund.

32

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

7 ANALYSIS OF EXPENDITURE (continued)

Governance included in support costs:
Auditors' remuneration - audit
- other services
- prior year (over)/under provision
Reimbursement of expenses to no (2020 - 0) Governors - travel costs
Other governance costs		 2021
£ 000's
24
1
-
-
76
101		 2020
£ 000's
24
1
-
-
1
26

Total staff costs comprised:

Total staff costs comprised:
Salaries and wages
Social Security contributions
Pension contributions		 2021
£ 000's
7,763
855
1,298
9,916		 2020
£ 000's
7,537
823
1,293
9,653

(a) None of the Governors received remuneration from St Albans School. No Governor (2020-0) received reimbursement of travel expenses.

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

2021 2020
£60,001 - £70,000 13 12
£70,001 - £80,000 4 5
£80,001 - £90,000 2 1
£90,001 - £100,000 - 2
£100,001 - £110,000 1 -
£110,000 - £119,999 1 1
£201,000 - £210,000 1 1

The number of higher paid employees for whom retirement benefits are accruing under a money purchase scheme amounted to 2 (2020 - 2) and under a defined benefit scheme 19 (2020 - 19).

33

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9 TANGIBLE ASSETS

Group and School
Cost at 1 September 2020
Additions
Disposals
Cost at 31 August 2021
Depreciation at 1 September 2020
Disposals
Charge for year
Depreciation at 31 August 2021
Net book value at 31 August 2021
Net book value at 31 August 2020
10 INVESTMENTS
GROUP INVESTMENTS
Valuation at 1 September 2020
Additions
Disposals at opening market value
Revaluations
Group valuation at 31 August 2021
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
20,593
270
679
-
-
-
21,272
270
2,177
68
-
-
334
-
2,511
68
18,761
202
18,416
202
Unrestricted
Designated
£ 000's
£ 000's
6,599
1,399
-
313
-
(312)
-
114
6,599
1,514
MV
Cost
£ 000's
£ 000's
50
50
2,140
1,932
552
503
6,599
6,599
9,341
9,084
At
31/08/2021		 Equipment
& vehicles
Total
£ 000's
£ 000's
818
21,681
452
1,131
-
-
1,270
22,812
626
2,871
-
-
33
367
659
3,238
611
19,574
192
18,810
Endowed
Total
£ 000's
£ 000's
1,135
9,133
253
566
(252)
(564)
92
206
1,228
9,341
At
At
31/08/2021
31/08/2020
MV
MV
£ 000's
£ 000's
50
247
2,140
2,165
552
122
6,599
6,599
9,341
9,133
MV
Cost
£ 000's
£ 000's
247
154
2,165
2,114
122
331
6,599
6,599
9,133
9,198
At
31/08/2020

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

34

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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
2021
£ 000's
143
19
29
485
676		 Group
2020
£ 000's
141
20
26
445
632		 School
2021
£ 000's
143
19
24
471
657		 School
2020
£ 000's
141
20
25
442
628

12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts
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
2021
£ 000's
2,129
1,407
830
-
88
1,187
382
6,023		 Group
2020
£ 000's
690
1,445
497
205
215
840
376
4,268		 School
2021
£ 000's
2,129
1,407
690
-
88
1,187
375
5,876		 School
2020
£ 000's
690
1,445
468
202
215
840
364
4,224

Pupil Fees Deposits – the total amount held in relation to fee deposits of £728,500 is included above. In the normal course of business the expected repayment of these amounts will be £244,200 (2020: £267,200) within one year and £484,300 (2020: £468,600) 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 2021 have been included within current liabilities.

35

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

13 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans
Pension provision - Pensions Trust		 Group
2021
£ 000's
614
99
713		 Group
2020
£ 000's
2,766
134
2,900		 School
2021
£ 000's
614
99
713		 School
2020
£ 000's
2,766
134
2,900

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 March 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		 2021
£ 000's
2,129
381
234
-
2,744		 2020
£ 000's
690
2,153
613
-
3,456

36

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15 LEASES

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

----- Start of picture text -----
|||||| |---|---|---|---|---| |Land and buildings|Other| |2021|2020|2021|2020| |£ 000's|£ 000's|£ 000's|£ 000's| |Less than 1 year|-|-|139|175| |Between 1 and 5 years|-|-|184|290| |-|-|-|-| |Greater than 5 years|

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

During the year, operating lease payments of £175,044 were expensed through the Statement of Financial Activities.

16 CAPITAL COMMITMENTS

At the year end the School had no capital commitments (2020-£nil).

17 ALLOCATION OF THE CHARITY NET ASSETS

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Net|2021| |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|14|-|53|-|67| |-|-| |Expendable endowed funds|1,229|(81)|1,148| |Restricted funds|-|-|1,144|-|1,144| |Unrestricted funds:| |-|-| |Designated|1,516|2,182|3,698| |School reserves|19,560|6,596|(3,991)|(614)|21,551| |Pension reserve|-|-|(29)|(99)|(128)| |19,574|9,341|(722)|(713)|27,480| |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|

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

37

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

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
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		 Income
£ 000's
17,585
17,585
32
-
644
50
726
18,311
24
1
-
52
6
83
-
-
-
-
-
18,394		 Funds
spent
£ 000's
(16,058)
35
(16,023)
(17)
-
(15)
-
(32)
(16,055)
(46)
(2)
(22)
(5)
(106)
(181)
-
-
-
-
-
(16,236)		 Transfers
£ 000's
818
-
818
184
-
(766)
(489)
(1,071)
(253)
-
-
-
250
3
253
-
-
-
-
-
-		 Net
Gains/
income/
(Losses)
(expenditure)
£ 000's
£ 000's
2,345
-
35
-
2,380
-
199
131
-
-
(137)
-
(439)
-
(377)
131
2,003
131
(22)
-
(1)
-
(22)
-
297
-
(97)
-
155
-
-
-
-
-
-
-
106
-
106
2,158
237		 Balance
c/fwd
2021
£ 000's
21,551
(128)
21,423
3,319
15
364
-
3,698
25,121
(0)
-
109
1,035
-
1,144
54
13
67
1,148
1,215
27,480

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 £821,889 were funded from the Bursary Fund.

Transfers from the Foundation Fund to the School Fund are £762,992 for fixed assets and from the Foundation Fund to the Covid 19 Hardship Fund (£2,722)

£250,000 was transferred from the Stephen Hawking Memorial Fund to the Foundation Bursary Fund and £239,258 for fixed assets.

38

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

18 (Continued)

SUMMARY OF MOVEMENTS ON MAJOR FUNDS - 2020 COMPARATIVE

SCHOOL
School reserve
Pension reserve
DESIGNATED FUNDS
Bursary fund
School tours fund
School foundation fund
Stephen Hawking Memorial Fund
UNRESTRICTED FUNDS
RESTRICTED FUNDS
Scholarship & Bursary Trust
John Clough Bursary Trust
Foundation Maths Fund
Foundation Bursary Fund
Covid-19 Hardship Fund
ENDOWED FUNDS
Permanent endowed funds
John Clough Bursary Trust
St Albans School Trust
Expendable endowed funds
Scholarship and Bursary
Trust & others
TOTAL RESERVES*		 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
55
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 £948,668. Bursaries and Scholarships of £786,215 were funded from the Bursary Fund.

39

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

19 PURPOSE OF FUNDS

(a) Designated:

(b) Restricted:

Expendable endowment:

Permanent endowment:

40

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 £1,132,912 (2020: £1,132,960 ) and at the year-end £nil (2020 - £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. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

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 a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

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 cost cap mechanism revision is 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.

41

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

PENSION SCHEMES (continued)

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 £164,093

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 950 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
31 Aug 31 Aug 31 Aug
2021 2020 2019
(£000's) (£000's) (£000's)
Present value of provision 128 163 194

42

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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
2021
(£000's)
163
-
(35)
-
-
128		 Period
Ending
31 Aug
2020
(£000's)
194
2
(34)
1
-
163

INCOME AND EXPENDITURE IMPACT

Period Period
Ending Ending
31 Aug 31 Aug
2021 2020
(£000's) (£000's)
Interest expense - 2
Remeasurements – impact of any change in assumptions - 1
Remeasurements – amendments to the contribution schedule - -
ASSUMPTIONS
31 Aug 31 Aug 31 Aug
2021 2020 2019
% per % per % per
annum annum annum
Rate of discount 0.63 0.55 0.97

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

43

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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
2021		 31 Aug
2020		 31 Aug
2019
(£000's) (£000's) (£000's)
Year 1 36 35 34
Year 2 37 36 35
Year 3 39 37 37
Year 4 16 39 38
Year 5 16 39
Year 6 - 16
Year 7 - -
Year 8 - -
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.

44

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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
Other Income
Other income
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
Transfers between funds
20
Net income and capital inflow
Fund balances brought forward at 1 September 2019
Fund balances carried forward at 31 August 2020
18
Non ancilliary trading
Total expenditure		 Unrestricted Restricted
Endowed
Funds
Funds
Funds
2020
£ 000's
£ 000's
£ 000's
£ 000's
15,170
-
-
15,170
1,199
-
-
1,199
232
-
-
232
144
-
-
144
32
26
-
58
43
807
-
850
285
285
17,105
833
-
17,938
154
-
-
154
190
-
-
190
1,033
-
-
1,033
16
-
13
29
1,393
-
13
1,406
14,762
89
-
14,851
16,155
89
13
16,257
950
744
(13)
1,681
(21)
-
(15)
(36)
6,423
(6,423)
-
-
7,352
(5,679)
(28)
1,645
15,635
6,668
1,137
23,440
22,987
989
1,109
25,085

45

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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
SHAREHOLDERS FUNDS
PROFIT AND LOSS ACCOUNT
Turnover
Operating costs
GROSS PROFIT
Administrative expenses
Gift aid
(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
Tax expense
RETAINED (LOSS)/PROFIT FOR THE YEAR
BALANCE SHEET
CURRENT ASSETS		 2021
£
52,702
17,964
119,627
190,293
(148,022)
42,271
-
42,271
6
1
42,264
42,271
945,264
(902,807)
42,457
(35,318)
(23,354)
(16,215)
-
(16,215)		 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
(29,869)
(22,702)
652
-
652

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.

46

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

23 RELATED PARTY TRANSACTIONS

St Albans School charged Abbey Gateway Enterprises Ltd management fees of £6,000 in the year to 31 August 2021 and no amounts were outstanding at the year end. Abbey Gateway Enterprises Ltd received income amounting to £841,402 (2020 - £824,500) 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.

St Albans School Woollam Trust charged Abbey Gateway Enterprises Ltd licence fees, for the use of sports facilities, of £1,006,020 (2020 -£944,500) in the year to 31 August 2021 and £ 140,000 was outstanding at the year end (2020 £ nil). St Albans School Woollam Trust charged St Albans School licence fees, for the use of sports facilities, of £250,000 and St Albans School charged St Albans School Woollam Trust management charges of £5,000. No amounts were outstanding at the year end.

47