## **ST ALBANS SCHOOL**
## **REPORT AND FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
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|19|
|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 2022**
The St Albans School Governors present their Annual Report for the year ended 31 August 2022 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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**ST ALBANS SCHOOL**
**ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
## **Aims**
_WE AIM TO DELIVER OUR ETHOS AND VALUES, REALISE OUR VISION AND ACHIEVE OUR GOAL BY:_
- _Providing an education that inspires a love of learning and intellectual enquiry and enables pupils to develop independent, searching minds in fulfilling their academic potential;_
- _Offering a broad, flexible and forward-looking curriculum which prepares pupils for success in academic and professional life and leadership roles, enabling pupils to experience a wide variety of sporting, cultural and other co-curricular activities in order to develop skills, interests, ambitions and potential beyond the classroom and the examined curriculum;_
- _Providing teaching informed by excellent subject knowledge and high expectations, which stimulates and challenges pupils and fosters innovation, imagination, skill, articulacy and flair;_
- _Supporting the development of metacognitive skills to enable pupils to manage and regulate their own learning and reflect on their performance and progress;_
- _Attracting and retaining highly-qualified, talented and well-motivated staff who enjoy the responsibility of inspiring pupils in accordance with the School’s ethos, and investing in their professional training and development;_
- _Providing a safe and welcoming environment underpinned by excellent pastoral care, supporting each pupil to be happy, feel valued as an individual and, with appropriate guidance and responsibilities, develop the selfconfidence to become the adult they wish to be;_
- _Fostering an environment that celebrates diversity and is inclusive of all, irrespective of race, gender, religion, sexuality, disability or background, founded on tolerance and consideration towards others;_
- _Providing expert advice so that pupils are ready to derive the maximum benefit from their continuing education and are able to make informed choices about their future career, and working in partnership with parents to support pupils in their journey from childhood to adulthood, preparing them for their departure into the adult world;_
- _Continuing the evolution of the School’s provision, striving for excellence in all aspects of its operations, instilling the highest standards of behaviour, manners, dress and speech, together with encouragement of pride in self and School to develop courteous, sociable and caring adults, and promoting the embodiment of the School’s values, in particular the importance of the ethos of service to others in living a fulfilling life;_
- _Furthering the tradition and heritage arising from the School’s historic links with the Abbey and the City of St Albans, emphasising the importance to self and others of contributing to the community, both inside and outside the School, and ensuring that the wider community benefits from the work of the School, in particular through partnership projects with state-sector schools and wider outreach work;_
- _Widening entry via means-tested bursaries, where possible, for local children with the potential to benefit from a St Albans School education; and exercising a careful and responsible stewardship of the School’s finances and facilities, ensuring the best-possible educational value._
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**ST ALBANS SCHOOL**
**ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 November 2022 the ISI inspected the School in a full Focused Compliance and Educational Quality Inspection. The School was rated “Excellent” (the highest grade) in both of the two categories:-
- Academic and Other Achievements and
- Pupils’ personal development.
The School also received a “Pass” in Regulatory Compliance (this is not rated, merely being a binary pass or fail). All 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 880 pupils (2021 – 890) in the financial year and opened in September 2022 with 905 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 continued impacts of the Covid-19 pandemic. While in this year there were no complete closures, the effects of the pandemic were still felt, bringing operational and financial consequences for the School and its pupils.
## **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:-
- Bursaries are awarded, in order of merit in the appropriate entrance examination, to those pupils whose parents would otherwise not be able to afford to have their children educated at the School and may also be awarded to existing pupils where the policy is to relieve hardship where the pupil's education would otherwise be at risk. Bursaries range from 10% to 100% of the termly fee but are generally not less than 40%. All bursaries are reviewed annually.
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**ST ALBANS SCHOOL**
## **ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
- Scholarships are awarded following the entrance and scholarship examinations at 11+, 13+ and Sixth Form entry. These awards are made solely on merit without regard to parental income. Where funds are not fully allocated to scholarships, these funds are made available in addition to those already available for means-tested bursaries.
The majority of available funds go towards bursaries.
Scholarships and bursaries valued at £800,428 (2021 - £861,430) were awarded in the year. Of this total, £490,170 (61%) was awarded through means-tested bursaries. A further £32,326 was awarded through the Covid hardship fund. A total of 182 pupils in the School received either a bursary or scholarship during the year (2021: 174) of whom 6 received total remission of fees (2021: 8).
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**
Public examinations in summer 2022 went ahead with some modifications. These included a change to the grading standard which was set at the mid-point between 2019 and 2021, advanced information about topics to be included in the exams, and supporting materials provided in some subjects. Contingency arrangements were in place and these involved teachers setting assessments in exam conditions, standardising, marking and moderating and storing the evidence; thankfully, this evidence was not required. Pupils experienced a relatively normal year and were well supported by teachers with ways to develop efficient and effective Learning to Learn (LTL) strategies.
At A Level in 2022, A* grades account for 44% of all grades (53% in 2021) and A* and A grades are at 77% (83% in 2021). Three pupils achieved 5 A* grades, 15 achieved 4 A* grades and 42 pupils gained at least 3 A*s. 67 gained at least 2 A*s and 104 pupils gained at least 1 A*.
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**ST ALBANS SCHOOL**
## **ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
The School's 2022 GCSE results are similarly impressive. 79% of examinations taken were graded 9-8 (compared with 75% in 2021). 88% (120 of 136) of the year group gained at least five 9/8 grades, with over 83% gaining at least six 9/8 grades. Over half of our candidates (80) gained at least eight 9/8 grades, and 44 pupils achieved an impressive ten 9/8s. 9 students achieved straight 9 grades and a further 39 achieved straight 9s and 8s.
72% of students who applied to university in 2022 secured a place at their first preference university on results day with 14% being offered a place at their second preference university. 75% were offered places at Russell Group universities with 11% confirming places at former 1994 Group universities such as Bath and Loughborough. Eleven students will be enrolling on Medicine or Dentistry courses. Three students will take up Oxbridge places (1 at Oxford and 2 at Cambridge). The most popular destinations for St Albans School alumni this year are Bristol, Nottingham, Leeds, Southampton and Durham.
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, the Music Department sought to reinstitute its Co-Curricular programme postCOVID with a busy programme of concerts and events throughout the year, including Founders’ Day and Carol services. Music continues to form an important part of the School’s wider offering, with pupils achieving very high levels of performance, while encouraging those less talented to enjoy their experiences.
## **Sport**
The academic year 2021-22 enabled a full return to competitive sport and reflected a positive uptake in both competitive and participative sport by the students post pandemic. This meant that participation in after school clubs and activities was higher than ever and regular participation by a large proportion of the students was evident. We provided competitive sport in 17 different sports and 73% of students represented the school in sport at some stage this academic year.
We hosted our first Super sport Saturday with Habs Boys School to provide an opportunity to widen the involvement of non-team sport students to participate in Saturday sport and involved several non-traditional activities engaging pupils from across the first four years of the school.
The revamping of the fitness suite and studio was approved through the year to increase the capacity and to better utilise the spaces. This was undertaken through the summer holidays and has led to an increased usage of this space by students and staff during the school week.
## **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**
- Ben Gostick – England Orienteering.
- Zac Segal – England Athletics, UK School Games 800m & 4 x 400m relay
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## **ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
- Charlie Bracken – selected for England Rugby U18, U19 & U20; Signed contract with Saracens and played in Premiership Cup matches.
- Ryan Smit – GB Climbing
- Max Steele – GB Sailing Squad
- Benedict Godley – ESSKIA ski squad.
## **National honours**
- _ESSA individual Finalists:_ Matthew Cox, Lucas Stubbs and Alex Photiou
- Luca Stubbs, Ben Gostick & Mylo Neale represented Herts at National Cross-country finals.
## **Regional**
- Jack Cullen, Toby Whitehurst, and Charlie Bracken represented Saracens U18 Academy in matches.
- Jack Bracken, Charlie Hodsdon-West, Asa Stewart-Harris Saracens and Tayo Adegbemile (London Irish) were involved in Developing Player Pathways.
- Athletics County Champions: Ethan Oba, Henry Stewart, Zac Segal, Luca Stubbs, Matt Cox.
- Hockey: Elliot Lowe and Lucas Smart part of Junior Regional Performance Centre.
- Cricket: Sam Calladine, in the Northants EPP/Academy, Finley Reid and Aidan Chennells, played for Herts U18,
## **Team/Sports Achievements & Firsts:**
- Cross Country Team – Inters finished 3[rd] at English Schools cross country finals.
- U16 Hockey team finished 3[rd] at England Hockey Tier 3 National finals.
- Swimming – Seniors placed 10[th] in National Relay finals at Aquatic Centre and Inters & Seniors won their leagues in Herts Schools competitions.
- Tennis – ‘School of the Year’ in Herts LTA awards.
## **Other activities**
Outside of these core areas, pupils generally have wide opportunities to participate in activities such as:-
- The Combined Cadet Force (CCF);
- Outdoor education visits, including to the School’s dedicated outdoor education facility at Pen Arthur in the Welsh mountains; and
- The Duke of Edinburgh Award.
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 are making a welcome return after having been 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:-
- Special events and communications for students and pupils about the importance maintenance of mental health as part of their development;
- Training for staff in mental health awareness; and
- The widening of the role of the Designated Safeguarding Lead to encompass Well-being
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**ST ALBANS SCHOOL**
## **ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 £6m per annum for the 905 pupils currently at this School.
## **2. Widening access through the bursary scheme**
The awarding of bursaries for those unable to afford the School’s fees is a measurable means of demonstrating additional public benefit beyond the education of the Charity’s direct beneficiaries.
In maintaining, and where possible expanding, the bursary scheme operated by the School, we are able to select a number of pupils on purely academic criteria with minimal reference to their ability to fund the fees levied by the School. The School supports a total of 9 full fee remissions and a further 169 partial remissions including both Bursaries and Scholarships. This represents 21% of the total School roll. In this way we believe we ensure that the benefit provided by the School is not restricted to those who have the ability to pay for education.
## **3. The considerable use of its educational and sporting facilities by the local community**
In addition to the above, the School provides a wide variety of Community benefits as detailed above and as follows.
- Each year the School organises and hosts a _**conference on Oxford and Cambridge admissions**_ , addressed by admissions tutors and current undergraduates, which is well attended by teachers and pupils from other local schools from both the independent and maintained sectors. The “What’s it Like to Study?” programme, whereby OAs return to the School to give presentations on their experience of university study and applications. As in previous years, the School continued its support of Sandringham School by offering mock interviews and advice to their Oxbridge candidates. This outreach has been extended to include Southgate School and is planned to be extended by assisting the staff of these schools by running workshops and training courses for Oxbridge and Russell Group admissions.
- The School continues to _**support Initial Teacher Training**_ , with the Deputy Head - Staff assisting school staff in organising this. One of our teachers acted as mentor to a School Direct trainee in Mathematics who successfully completed her Second School Placement here. We had three NQTs who successfully completed their IStip induction year, each supported by a teacher mentor.
- We continue to _**host visiting teachers**_ from a range of schools, who visited as part of their Continuing Professional Development, observing lessons and sharing best practice with our staff.
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**ST ALBANS SCHOOL**
**ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
- This year the School once again offered the ‘Experience’ scheme for _**helping possible entrants to the teaching**_ **profession** . We receive a number of approaches requesting volunteering opportunities; whilst these are not as easy to accommodate, each is considered on its merits.
- _**The Sports Hall and Swimming Pool is open to community use**_ by local swimming, triathlon, basketball, netball and dance clubs and daytime use by local primary schools. It is also open to local residents when not being used for School activities.
- _**Other facilities, such as the Hall and the Refectory, are available for community use.**_
- _**The Woollam Playing Fields and its Pavilion continue to provide an important venue for the national as well as the local community**_ . Over recent years, users have included:-
- Saracens training camps, covering ages 6-16;
- Hertfordshire rugby sevens finals;
- Old Albanians Rugby, including their minis and juniors, with some 400-500 under-18s on site on Sundays;
- Harpenden Hockey, including both Juniors and seniors, male and female;
- County and District Cricket, including the ECB Junior Cricket Finals;
- Harpenden Lacrosse;
- Hertfordshire Fire and Rescue football;
- Cricket academies for children 7-16;
- Weekly dance classes;
- A charity tennis tournament;
- Charity bicycle rides; and
- District, County and Regional Rugby as well as Football and Cross-Country of all levels.
- _**The Woollams Pavilion also hosted a national seminar on groundsmanship.**_
Much of this use is provided by the School free of charge or at low cost to cover directly-incurred expenses.
## **4. The extensive partnerships with local schools**
Partnership and Community Link were able to start back in September 2021 with reduced activities going ahead after a break of two years due to Covid. The Partnership scheme between St Albans School and local Primary and Special Schools has continued to grow and now involves 16 local schools. Due to reduced placements this year we had around 65 Lower Sixth students taking part in the schemes on Friday afternoons. DBS checks were organised by the school for all the students involved and they also attended a safe-guarding workshop before commencing their placements. All these activities are co-ordinated by the Head of Partnership and assisted by other members of teaching and non-teaching staff. The main elements are:
## **Swimming lessons**
These are organised for four local schools in our school pool on Monday and Friday afternoons. Swimming on Mondays has been expanded to 3 sessions now to accommodate two classes from Prae Wood school in addition to a class from St Michael’s. Qualified coaches from local clubs are employed to run each session and Sixth Formers act as lifeguards on Fridays and a SAS member of staff supports the Monday sessions with coaching and lifeguarding.
## **Masterclasses for Primary Schools**
On Friday afternoons the School offers masterclasses run by members of our staff assisted by Lower Sixth Form students in IT and Science. These give the primary school pupils the opportunity to come to use our facilities and carry out practical activities that might not be possible in their Primary schools. SAS teachers running these classes endeavour to cover specific parts of the Primary School curriculum as requested by the Partnership schools. We also run popular Art, Drama and Music classes on Friday afternoons led by an SAS teacher and Sixth Form helpers which take place either at SAS or the teacher and students visit the primary school to run the sessions. Book Club has been a new initiative recently and our School Librarian takes a group of 5 English A Level
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**ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
students into schools to run Book Club activities. We have around 100 primary school children visiting the school site each week.
The Lower Sixth Form helpers are vital to the running of the master classes. They get the opportunity to share their passion for these subjects with the younger pupils and through their involvement develop vital life skills, such as communication, organisation and cultivate a sense of responsibility. SAS French, STEM and Maths teachers also visit local schools to offer specialist support to various groups during the week.
Imagineering club is another activity run in a Science lab at SAS, for a group of twelve pupils from Abbey School. The children learn and practice engineering skills using simple tools and have fun while making a series of working models. This is run by parent volunteers from Abbey plus a member of SAS staff, supported by two L6th helpers.
## **Classroom and Sports Assistants**
Lower Sixth Partnership students also travel to local primary schools on Friday afternoons. Our students get involved in an assortment of activities in their Partnership Schools, for example helping individual children reading or doing maths, assisting with sports coaching, craft activities, IT, and doing some administrative work. The Sixth Form students provide valuable support to the teacher in the classroom whilst developing those important skills which they will need as they move on to life outside school. We have introduced ‘Maths Mentors’ recently where some of our A ‘Level Maths students act as Maths assistants and work one to one with children who need extra help or have been identified as gifted and talented in Maths.
In addition, the Partnership and Community Link programmes make other contributions to the community as follows:
## **School staff serving as Governors at local schools**
Their roles include Safeguarding, Resources and Premises, Finance, Child Protection, Special Educational Needs and Disabilities (SEND) and Performance Management, as well as subject responsibilities. State Primary and Junior, SPMLD Special and Independent Schools are all represented.
## **Donating Goods to other local schools**
The Music Department donated surplus drums to Maple School and the Art Department donated boxes of paint to Heathlands School for the Deaf.
## **Community Link**
Volunteers in the School’s Community Link Programme provided assistance to a range of local causes including:
## **Special Schools**
Throughout the academic year a group of Lower Sixth students from St Albans School volunteered on Friday afternoons to work as assistants at Watling View School, which caters for children and young people aged from 2 to 19 with either severe, or profound and multiple learning disabilities. The St Albans School students worked with individual children and as classroom assistants and in addition, they helped pupils with self-expression in speech and with sign language.
## **Care Homes for the Elderly**
Due to Covid restrictions in the Care Homes we were unable to place volunteers in the Care Homes this year. This will recommence in 2022.
## **Charity Shops**
Sixth Form volunteers helped weekly in the Keech House Hospice Charity shop by giving general assistance, working at the tills and preparing items to go out onto the shop floor.
## **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
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**ST ALBANS SCHOOL**
## **ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
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 long-lasting 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. It is very popular with pupils and has started to resume after COVID, with :-
- considerable volunteering and a series of contributions through this to good causes through their placements;
- students also developed new or existing skills and physical activities outside of School time.
- Expeditions taking place all over the British Isles and assisted and assessed by the school’s teaching and support staff.
## **Environmental Work**
The Environmental Group is a member of the British Trust for Conservation Volunteers (BTCV) and aims to foster an awareness of local conservation issues and to help the community by participating in schemes to improve the local environment.
## **Charitable Fundraising**
This year the School community has again raised considerable sums for charitable causes. It has achieved this through a wide range of activities, including whole-school activities, form group events and individual efforts.
## **CLIMATE CHANGE**
The School, its pupils and its staff recognise the importance of sustainable development and the need to reduce the impact of carbon emissions. In recent years, the School has taken a large number of measures to reduce its environmental impact, including the following:-
- The renewal of all the heating boilers on the School’s main site to ensure that these are modern and efficient;
- The switching of almost all of the School’s lighting to LEDs, using a fraction of the power of traditional lighting;
- The installation of electric vehicle charging points;
- The building of additional covered bicycle racks to encourage use of bicycles;
- Significant reduction in single-use plastics;
- Ensuring that all of the School’s waste is sorted for recycling; and
- That new buildings and facilities are built to the highest standards of environmental impact.
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.
Governors have established an Environmental and Social Governance Committee to oversee the strategy and implementation of the School’s plans in this area. The School also has a Green Council, where pupils and staff meet to review progress and consider what further steps might be taken.
## **EQUALITY, DIVERSITY AND INCLUSION**
The School has developed a clear EDI policy and has also reviewed its position using a detailed questionnaire developed by AGBIS in conjunction with Farrer & Co. To quote the policy:-
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**ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
_Our commitment is to an equitable, diverse and inclusive school. St Albans School is committed to promoting equity, diversity and inclusion through the creation of an environment in which individuals have the opportunity to thrive and be valued for what makes them unique._
_The School is committed to work to eradicate discrimination and prejudice, reduce barriers to learning and promote participation for all, responding to and embracing the diversity of our pupils, parents, staff, governors, volunteers, donors and suppliers (hereby known as the “school community”) as well as the local community. The School recognises the benefits of having a diverse and representative school community who value one another and the contributions everyone is able to make._
## **FINANCIAL REVIEW AND RESULTS FOR THE YEAR**
The School had 879 pupils at the end of the financial year (2021 – 890). The School population from September 2022 was 905 pupils.
Total income of the School (excluding donations) for the year was up by 5.29% on the corresponding period in 2020/21. 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:-
- saving as many costs as was possible and being prudent in the period of site closure from January to March 2021; and
- providing fee deferment and bursary assistance to those parents in financial difficulty and raised money from generous donors to help finance this assistance.
The School's Net Income (excluding donations) was £642,000(2021 - £1,399,524), some 3.92% 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 £193,000, 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 879 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.
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**ST ALBANS SCHOOL**
## **ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
We consider that the key financial performance indicators are those that communicate the financial performance and strength of the School as a whole, those being pupil numbers, academic results for the year, surplus for the period, extracurricular performances and applications for places for the following year. For the period under review, pupil numbers continue to be at historically high levels, academic results are near record, the financial result for the period was acceptable in current circumstances and registrations for future admission have increased on the previous year. Taking all of these together, the performance of the School remains excellent. All of these factors give the Governors the confidence that the School is, and will remain, a going concern, and so the accounts have therefore been prepared on the basis that the charity is a going concern.
## **Reserves Policy**
The total funds of the Charity at 31 August 2022 amounted to £28,424,000 (2021 - £27,437,000) of which £1,131,000 (2021 - £1,213,000) were endowed funds, £1,241,000 restricted and £26,052,000 unrestricted (2021 - £1,251,000 and £24,973,000 respectively). The unrestricted funds include designated funds which represent Bursary, Foundation, Professor Hawking Memorial Fund and Tour funds and amounted to £4,081,000 (2021 – £3,945,000) 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 £4,386,000 (2021 - £3,724,000) 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 and renewed in November 2022, 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, gradual 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 2022 this performance was not achieved.
## **FUTURE PLANS**
The School’s latest Strategic Development Plan was approved by the Board in November 2022 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 relevant section above.
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**ST ALBANS SCHOOL**
## **ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 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.
- (b) **Woollam Playing Field Trust (Registered Charity No. 311020)**
- The objects of the Charity, as set out in the Charity Commission Scheme, are:
- (1) the provision and maintenance of playing fields and other recreational facilities for the pupils attending St Albans School;
- (2) the maintenance and support of St Albans School; and
- (3) the promotion of education of the pupils attending the St Albans School in such ways as the Trustee thinks fit.
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 2022.
Results for Abbey Gateway Enterprises Limited show a retained loss for the year of £11,408 (2021 – £16,217).
## **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:-
- changes in legislation potentially affecting the charitable status of independent schools and this School in particular, and the potential impact of VAT law being changed to require this School to charge VAT to the parents of its pupils;
- inherent risks within a School environment, and in particular, safeguarding and associated risks such as reputational;
- the general economic environment and the potential financial consequences for the School (see below);
- the increasingly onerous compliance and regulatory background in which the School operates, adding to the operational and administrative costs of the School; and
- the recruitment and retention of staff of the required calibre to maintain the School’s high standards.
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:-
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**ST ALBANS SCHOOL**
**ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
- Keeping a close watching brief on emerging changes to charity and tax legislation;
- Ensuring that the members of the safeguarding team are fully trained and resourced;
- Analysing potential implications for the School of changes in the legislative environment and preparing the School in advance as necessary and where possible; and
- keeping the terms and conditions for the School’s staff under close review, amending as necessary.
The generic controls used by the School to minimise risk include:
- detailed terms of reference together with formal agendas for Committee and Board activity;
- strategic development planning, reviewed annually by the Board;
- comprehensive budgeting and management accounting;
- established organisational structures and lines of reporting;
- formal written policies including clear authorisation and approval levels; and
- vetting procedures as required by law for the protection of the vulnerable.
The Governors regularly review the effectiveness of current plans and strategies for managing all identified major risks for both the School and its subsidiary.
## **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|Resigned 31 August 2022|
|---|---|---|
|Lt Col MWS Cawthorne RM Retd|4, 5||
|A Dalwood (OA)|2, 4|Resigned 10 October 2021|
|Mrs F Lightowler|2, 3, 7||
|Professor J Luzio (Interim Chair May-Sept 2021)|1, 6||
|C McIntyre|4, 6|Resigned 24 June 2022|
|S Majumdar|4, 8||
|C Millington|5, 8|Appointed 3 March 2022|
|N Moore (OA)|5, 7||
|C Oglethorpe|1, 4, 8||
|N Osborn (OA) (Chairman Oct 2021 onwards)|4, 8|Appointed 15 September 2021|
|Ms A Philpott|1, 2, 8||
|Mrs C Pomfret|2, 4, 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, 8 – Environmental and Social Governance Committee
15
**ST ALBANS SCHOOL**
**ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
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 in Spring 2020, which met fortnightly during key periods. This finished in early 2022 and the Committee was disbanded. Thanks are due to those governors who gave generously of their time for this committee.
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 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.
The School has also access to, and is very grateful for, an Advisory Panel of experts who kindly donate their considerable specialist expertise to support governors, principally through their attendance at meetings of the governors’ committees. They are not Governors, Trustees, Directors or Members of the Company. The current Advisory Panel comprises Mr P Brown, Mr O King, Ms B Mehta-Parmar, Mr A Mills-Baker, Mrs C Preston, Mr P Rattle, Mr L Sinclair, Mr M Sutton and Mr B Walker.
## **Recruitment and Training of Governors**
Governors are appointed following careful analysis of a skills matrix and are carefully screened for 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 Leadership Team. The Headmaster, Bursar and Second Master attend meetings of the Governing Body and its committees.
## **Remuneration**
Remuneration is set by the Board, with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding fairly and responsibly individual contributions to the School’s success.
The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. Delivery of the School’s charitable vision and purpose is primarily dependent on our key management personnel; staff costs are the largest single element of the School’s charitable expenditure.
## **Employment policy**
The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic performance of the School.
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**ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 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 relevant data protection legislation.
## **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**
Saffery Champness LLP, 71 Queen Victoria Street London EC4V 4BE
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**ST ALBANS SCHOOL**
## **ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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:-
- select the most suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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 11 March 2023, 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
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**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 ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 August 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Summary Income and Expenditure Account, the Consolidated and School Balance Sheets, the Consolidated Cash Flow Statement and the 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:
- give a true and fair view of the state of the affairs of the group and the parent charitable company as at 31 August 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company 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 trustees’ 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 group or the parent charitable company'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. 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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material
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**ST ALBANS SCHOOL**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST ALBANS SCHOOL**
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.
## **Other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Annual Report of the Governors which includes the Directors’ Report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Annual Report of the Governors which includes the Directors’ Report and the Strategic Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report of the Governors and Strategic Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees’ Responsibilities set out on page 18, the trustees (who are also the directors of the parent 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 the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.
Our objectives are to obtain reasonable assurance about whether the group and parent 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
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**ST ALBANS SCHOOL**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST ALBANS SCHOOL**
could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
## Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sector in which the group and parent charitable company operate.
Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.
Further the Group is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, through significant fine, litigation or restrictions on the Group’s operations. We identified the most significant laws and regulations to be the Independent Schools Standards as found in the Education and Skills Act 2008 and guidance issued by the Department for Education.
## Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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**ST ALBANS SCHOOL**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST ALBANS SCHOOL**
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the parent 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 parent 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 parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Cara Turtington Senior Statutory Auditor For and on behalf of Saffery Champness LLP Chartered Accountants Statutory Auditors
71 Queen Victoria Street London EC4V 4BE Date 21 March 2023 Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
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**ST ALBANS SCHOOL**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022 (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)**
**----- Start of picture text -----**
Unrestricted Restricted Endowed
Funds Funds Funds 2022 2021
Notes £ 000's £ 000's £ 000's £ 000's £ 000's
Income and endowments from:
Charitable activities
School fees receivable 2 16,398 - - 16,398 16,201
Other educational income 3 1,732 - - 1,732 1,048
Other trading actvities
Non-ancillary trading income 4 220 - - 220 104
Other activities 4 146 - - 146 154
Investments
Investment income and interest 5 33 23 - 56 60
Donations and legacies
Donations 6 368 131 - 499 751
Other Income
Other income - - 76
Total income 18,897 154 - 19,051 18,394
Expenditure on: 7
Raising funds
Financing costs 103 - - 103 123
Development office 225 - - 225 214
Non- ancilliary trading 1,096 - - 1,096 938
Investment management costs 16 13 - 29 29
Total deductible costs 1,440 13 - 1,453 1,304
Charitable activities
Education 16,423 44 1 16,468 14,932
Total expenditure 17,863 57 1 17,921 16,236
Net incoming/(outgoing) funds from operations
before transfers and investment gains 1,034 97 (1) 1,130 2,158
Gains/(losses) on other investments (103) - (83) (186) 237
Transfers between funds 18 - - - - -
Net income and capital inflow 931 97 (84) 944 2,395
Fund balances brought forward at 1 September 2021 25,121 1,144 1,215 27,480 25,085
Fund balances carried forward at 31 August 2022 18 26,052 1,241 1,131 28,424 27,480
**----- End of picture text -----**
**The notes on pages 28 to 47 form part of these financial statements.**
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**ST ALBANS SCHOOL**
## **CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2022**
**----- Start of picture text -----**
2022 2021
Notes £000's £000's
Income from:
Charitable activities
School fees 2 16,398 16,201
Other educational income 3 1,732 1,048
Other trading activities
Sub-letting and management charges 4 146 154
Non ancillary trading income 220 104
Investments
Dividends, bank and other interest 5 56 60
Donations and legacies
Grants and donations - Unrestricted 368 697
- Restricted 6 131 54
Other income - 76
Total income 19,051 18,394
Expenditure on: 7
Costs of raising funds
Financing costs 103 123
Development office 225 214
Non ancillary trading 1,096 938
Investment management costs 29 29
1,453 1,304
Charitable activities
Education 16,468 14,932
Total expenditure 17,921 16,236
Net income before investment gains and inter-fund transfers 1,131 2,158
Net investment gains for the year (103) 131
Net income for the year 1,028 2,289
**----- 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 2022**
**----- Start of picture text -----**
Group School
2022 2021 2022 2021
Notes £000's £000's £000's £000's
FIXED ASSETS
Tangible assets 9 19,348 19,574 19,348 19,574
Investments 10 9,126 9,341 9,126 9,341
28,474 28,915 28,474 28,915
CURRENT ASSETS
Stock 64 53 - -
Debtors 11 657 676 647 657
Cash and deposits 5,126 4,572 5,079 4,452
5,847 5,301 5,726 5,109
CURRENT LIABILITIES
Creditors payable within one year 12 (5,672) (6,023) (5,582) (5,876)
NET CURRENT ASSETS 175 (722) 144 (767)
TOTAL ASSETS LESS CURRENT
LIABILITIES 28,649 28,193 28,618 28,148
LONG-TERM LIABILITIES 13
Creditors payable after one year (210) (614) (210) (614)
Pension Scheme funding deficit (15) (99) (15) (99)
NET ASSETS 17 28,424 27,480 28,393 27,435
REPRESENTED BY 18
PERMANENT ENDOWED FUNDS 63 67 63 67
EXPENDABLE ENDOWED FUNDS 1,068 1,148 1,068 1,148
RESTRICTED FUNDS 1,241 1,144 1,241 1,144
UNRESTRICTED FUNDS
Designated Reserve- includes revaluation reserve of
£4,697 (2021: £126,303 ) 4,081 3,698 4,081 3,698
School Reserve 21,997 21,551 21,966 21,506
Pension Reserve 20 (26) (128) (26) (128)
TOTAL FUNDS 28,424 27,480 28,393 27,435
**----- 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 £1,069,000 (2021 £2,411,000).
These financial statements were authorised for issue and approved by the Board on 11 March 2023 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 2022**
**----- Start of picture text -----**
Note 2022 2021
£000's £000's
Net cash inflow from operations
Net cash provided by operating activities (i) 1,244 2,863
Cashflows from investing activities:
Payments for tangible fixed assets (236) (1,131)
Proceeds on sale of tangible fixed assets 22 -
Additions to securities investments portfolio (28) (29)
Withdrawals from securities investments portfolio 29 28
Investment income and bank interest received 56 60
Net cash provided by investing activities (157) (1,072)
Cashflows from financing activities:
Addition/(repayment) of loans (430) (712)
Finance costs paid (103) (123)
Net cash (used in) financing activities (533) (835)
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period 4,572 3,616
Cash and cash equivalents at the end of the reporting period (ii) 5,126 4,572
**----- End of picture text -----**
26
**ST ALBANS SCHOOL**
**NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2022**
## **(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|**2022**
**£000's**
1,130
(56)
103
29
440
(11)
19
(410)
1,244
5,126
5,126|**2021**
**£000's**
2,158
(60)
123
28
367
9
(44)
282
2,863
4,572
4,572|
|---|---|---|
## **(iii) Analysis of net changes in debt**
|Cash
Loans due within one year
Loans due over one year
Total|**At 1**
**September 21**
**£000's**
4,572
(2,129)
(614)
1,829|**Cashflows**
**£000's**
554
430
-
984|**Non-cash**
**changes**
**£000's**
-
(405)
405
-|**At 31**
**August 22**
**£000's**
5,126
(2,104)
(209)
2,813|
|---|---|---|---|---|
27
**ST ALBANS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 2022**
## **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:
- Freehold property Over 50 years - Long Leasehold property Over 50 years - Equipment and vehicles Over 3 to 10 years
## **Capitalisation**
Items of equipment and fixtures and fittings are capitalised when part of a new project where the total cost of such items exceeds £25,000. 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 2022**
## **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.
|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 2022**
## **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|**2022**
**£ 000's**
17,531
(1,176)|**2021**
**£ 000's**
**£ 000's**
17,372
(1,316)
16,355
43
-
16,398|**£ 000's**
16,055
146
-
16,201|
|---|---|---|---|
## **(b) The total grants, awards and prizes paid for by restricted funds comprises:**
|Scholarships
Music awards
Foundation Bursaries
Covid-19 Hardship Fund|**2022**
**£ 000's**
8
1
2
32
43|**2021**
**£ 000's**
34
1
5
106
146|
|---|---|---|
Scholarships and bursaries valued at £ 800,428 (2021- £861,430) were awarded in the year. Of this total, £490,170 (61%) was awarded through means-tested bursaries. An additional £32,326 of bursaries were awarded from the Covid 19 Hardship fund. A total of 182 pupils in the School received either a bursary or scholarship (including Covid 19 awards) during the year (2021: 178) of whom 6 received total remission of fees (2021: 8).
## **3 CHARITABLE ACTIVITIES - OTHER EDUCATIONAL INCOME**
|**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|**2022**
**£ 000's**
826
76
138
420
185
87
1,732
**2022**
**£ 000's**
220
220
12
123
11
146|**2021**
**£ 000's**
570
92
71
298
8
9
1,048
**2021**
**£ 000's**
104
104
12
130
12
154|
|---|---|---|
31
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
**----- Start of picture text -----**
5 INVESTMENT INCOME AND INTEREST 2022 2021
£ 000's £ 000's
Investment income
UK equities 9 14
Overseas securities 44 40
53 54
Bank and other interest
Cash 3 6
56 60
6 DONATIONS RECEIVABLE 2022 2021
£ 000's £ 000's
Foundation donations 409 651
Other donations 90 100
499 751
7 ANALYSIS OF EXPENDITURE
(a) Total expenditure
Staff Other Depreciation Total
costs costs (see below) 2022
(Note 8)
£ 000's £ 000's £ 000's £ 000's
Charitable expenditure
Education and grant making
Teaching 8,271 1,644 104 10,019
Welfare 99 711 810
Premises 407 2,043 336 2,786
-
Support costs of schooling and governance 1,330 1,468 2,798
Grants, awards and prizes - 55 - 55
Total charitable expenditure 10,107 5,921 440 16,468
Costs of raising funds:
Financing costs - 103 - 103
Development office 136 89 - 225
Abbey Gateway Enterprises Ltd 21 1,075 - 1,096
Investment management - 29 - 29
Total costs of raising funds 157 1,296 - 1,453
Total expenditure 10,264 7,217 440 17,921
**----- End of picture text -----**
Depreciation and other costs relating to the School's endowed fund properties totalling £635 (2021 - £635) have been charged directly to the endowment fund.
32
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **7 ANALYSIS OF EXPENDITURE (continued)**
## **(b) Total expenditure - comparative**
|**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|**Total**
**2021**
**£ 000's**
9,286
616
2,317
2,556
156
14,932
123
214
938
28
1,303
16,236|
|---|---|---|---|---|
Depreciation and other costs relating to the School's endowed fund properties totalling £635 (2020 - £635) have been charged directly to the endowment fund.
|**(c) Governance included in support costs:**
Auditors' remuneration - audit
- other services
Other governance costs|**2022**
**£ 000's**
23
1
40
64|**2021**
**£ 000's**
24
1
76
101|
|---|---|---|
33
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **8 STAFF COSTS AND RELATED PARTY TRANSACTIONS**
**----- Start of picture text -----**
||||
|---|---|---|
|Total staff costs comprised:|2022|2021|
|£ 000's|£ 000's|
|Salaries and wages|8,078|7,763|
|Social Security contributions|914|855|
|Pension contributions|1,344|1,298|
|Pension Trust revaluation|(72)|-|
|10,264|9,916|
**----- End of picture text -----**
- (a) None of the Governors received remuneration from St Albans School. No Governor (2021-0) received reimbursement of travel expenses.
- (b) During the year the School paid £35,113 in respect of directors' and officers' indemnity insurance (2021 - £13,728).
- (c) The average number of employees in the year calculated on a full time equivalent basis was 164 (2021 -158) of which 100 (2021 - 96) were teaching staff. This equated to total average employees of 194 (2021 - 186).
- (d) During the year there were no termination payments. (2021 - £0).
(e ) Aggregate employee benefits of key management personnel was £764,353 (2021 -£842,041).
The remuneration of the highest paid employees fell within the following bands (excluding pension contributions).
**----- Start of picture text -----**
||||
|---|---|---|
|2022|2021|
|£60,001 - £70,000|15|13|
|£70,001 - £80,000|2|4|
|£80,001 - £90,000|1|2|
|£100,001 - £110,000|-|1|
|£110,000 - £119,999|1|1|
|£120,001 - £130,000|1|-|
|£201,000 - £210,000|1|1|
**----- End of picture text -----**
The number of higher paid employees for whom retirement benefits are accruing under a money purchase scheme amounted to 1 (2021 - 2) and under a defined benefit scheme 19 (2021 - 19).
## **9 TANGIBLE ASSETS**
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Freehold|Long Leasehold|Equipment|
|Group and School|property|property|& vehicles|Total|
|£ 000's|£ 000's|£ 000's|£ 000's|
|Cost at 1 September 2021|21,272|270|1,270|22,812|
|Additions|-|236|236|
|-|-|
|Disposals|(22)|(22)|
|Cost at 31 August 2022|21,250|270|1,506|23,026|
|Depreciation at 1 September 2021|2,511|68|659|3,238|
|-|-|-|-|
|Disposals|
|Charge for year|325|11|104|440|
|Depreciation at 31 August 2022|2,836|79|763|3,678|
|Net book value at 31 August 2022|18,414|191|743|19,348|
|Net book value at 31 August 2021|18,761|202|611|19,574|
**----- End of picture text -----**
34
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **10 INVESTMENTS**
|**GROUP INVESTMENTS**
Valuation at 1 September 2021
Additions
Disposals at opening market value
Revaluations
**Group valuation at 31 August 2022**|**Unrestricted**
**£ 000's**
6,599
-
-
6,599|**Designated**
**£ 000's**
1,514
374
(405)
(88)
1,395|**Endowed**
**£ 000's**
1,228
303
(328)
(71)
1,132|**2022**
**£ 000's**
9,341
677
(733)
(159)
9,126|**2021**
**£ 000's**
9,133
566
(564)
206
9,341|
|---|---|---|---|---|---|
The split of investments by fund for 2021 is shown in note 17
|**Group Investments comprise:**
Cash
Non-UK investments assets
UK investment assets
Investment properties|**At**
**31/08/2022**
**MV**
**£ 000's**
125
2,049
353
6,599
9,126|**At**
**31/08/2021**
**MV**
**£ 000's**
50
2,140
552
6,599
9,341|
|---|---|---|
|**School Investments comprise:**
Cash
Non-UK investments assets
UK investment assets
Investment properties|**MV**
**Cost**
**£ 000's**
**£ 000's**
125
125
2,049
1,932
353
503
6,599
5,859
9,126
8,419
At
**31/08/2022**|**MV**
**Cost**
**£ 000's**
**£ 000's**
50
50
2,140
1,932
552
503
6,599
5,859
9,341
8,344
At
**31/08/2021**|
|---|---|---|
|Valuation at 1 September 2021
Additions
Disposals at opening market value
Revaluations
Valuation at 31 August 2022|**Investment**
**equities and**
**other holdings**
**£ 000's**
2,742
677
(733)
(159)
2,527|**Investment**
**Properties**
**£ 000's**
6,599
-
-
-
6,599|**Total**
**£ 000's**
9,341
677
(733)
(159)
9,126|
|---|---|---|---|
The investment properties were valued in August 2019 by Bidwells LLP Chartered Surveyors (regulated by RICS).
35
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **10 INVESTMENTS (continued)**
## **Other Investments**
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).
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 so have not been consolidated into these accounts
## **11 DEBTORS**
|**Due within one year**
Fees
Income tax recoverable
Sundry debtors
Prepayments|**Group**
**2022**
**£ 000's**
83
16
56
502
657|**Group**
**2021**
**£ 000's**
143
19
29
485
676|**School**
**2022**
**£ 000's**
83
16
46
502
647|**School**
**2021**
**£ 000's**
143
19
24
471
657|
|---|---|---|---|---|
## **12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Bank loans and overdrafts
Fees and deposits received in advance
Trade creditors
Other creditors
Advance fee scheme deferred income
Accruals and deferred income|**Group**
**2022**
**£ 000's**
2,104
1,522
374
237
1,102
333
5,672|**Group**
**2021**
**£ 000's**
2,129
1,407
830
88
1,187
382
6,023|**School**
**2022**
**£ 000's**
2,104
1,522
292
236
1,102
326
5,582|**School**
**2021**
**£ 000's**
2,129
1,407
690
88
1,187
375
5,876|
|---|---|---|---|---|
Pupil Fees Deposits – the total amount held in relation to fee deposits of £773,100 is included above. In the normal course of business the expected repayment of these amounts will be £277,500 (2021: £244,200) within one year and £495,600 (2021: £424,300) 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 2022 have been included within current liabilities.
36
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **13 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
|Bank loans
Pension provision - Pensions Trust|**Group**
**2022**
**£ 000's**
210
15
225|**Group**
**2021**
**£ 000's**
614
99
713|**School**
**2022**
**£ 000's**
210
15
225|**School**
**2021**
**£ 000's**
614
99
713|
|---|---|---|---|---|
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 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 was repayable by instalments over 15 years from June 2019 with an interest rate of 3.51% fixed until June 2022. This is now being serviced as an overdraft facility until a new loan agreement is signed.
## **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
Secured|**2022**
**£ 000's**
2,104
210
-
2,314|**2021**
**£ 000's**
2,129
381
234
2,744|
|---|---|---|
37
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **15 LEASES**
The future minimum lease payments under non-cancellable operating leases are :
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Land and buildings|Other|
|2022|2021|2022|2021|
|£ 000's|£ 000's|£ 000's|£ 000's|
|Less than 1 year|-|-|64|121|
|Between 1 and 5 years|-|-|-|64|
**----- End of picture text -----**
During the year, operating lease payments of £139,066 were expensed through the Statement of Financial Activities.
## **16 CAPITAL COMMITMENTS**
At the year end the School had no capital commitments (2021-£nil).
## **17 ALLOCATION OF THE CHARITY NET ASSETS**
**----- Start of picture text -----**
|||||||
|---|---|---|---|---|---|
|Net|2022|
|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|12|-|51|-|63|
|-|-|
|Expendable endowed funds|1,131|(63)|1,068|
|Restricted funds|-|-|1,241|-|1,241|
|Unrestricted funds:|
|-|-|
|Designated|1,397|2,684|4,081|
|School reserves|19,336|6,598|(3,727)|(210)|21,997|
|Pension reserve|-|-|(11)|(15)|(26)|
|19,348|9,126|175|(225)|28,424|
|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|
**----- End of picture text -----**
38
**ST ALBANS SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **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|**Balance**
**b/fwd**
**2021**
**£ 000's**
21,551
(128)
21,423
3,319
15
364
3,698
25,121
-
-
109
1,035
-
1,144
54
13
67
1,148
1,215
27,480|**Income**
**£ 000's**
18,453
18,453
32
49
363
444
18,897
20
3
-
84
47
154
-
-
-
-
-
19,051|**Funds**
**spent**
**£ 000's**
(17,877)
102
(17,775)
(16)
(37)
(35)
(88)
(17,863)
(20)
(2)
(1)
(2)
(32)
(57)
-
(1)
(1)
-
(1)
(17,921)|**Transfers**
**£ 000's**
(130)
-
(130)
256
7
(133)
130
-
-
-
-
-
-
-
-
-
-
-
-
-|**Net**
**Gains/**
**income/**
**(Losses)**
**(expenditure)**
**£ 000's**
**£ 000's**
446
102
-
548
-
272
(103)
19
-
195
-
486
(103)
1,034
(103)
-
-
1
-
(1)
-
82
-
15
-
97
-
-
(3)
(1)
-
(1)
(3)
-
(80)
(1)
(83)
1,130
(186)|**Balance**
**c/fwd**
**2022**
**£ 000's**
21,997
(26)
21,971
3,488
34
559
4,081
26,052
-
1
108
1,117
15
1,241
51
12
63
1,068
1,131
28,424|
|---|---|---|---|---|---|---|
* Others comprise: The George Wishart Prize Fund (£500) and the James Baum Prize Fund (£100).
Transfers are made from the School to the Bursary Funds termly based on pupil numbers so as to fund designated expenditure, which amounted to £1,026,324. Bursaries and Scholarships of £770,087 were funded from the Bursary Fund.
Transfers from the Foundation Fund to the School Fund are £130,855 for fixed assets.
39
**ST ALBANS SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
## **18 (Continued)**
## **SUMMARY OF MOVEMENTS ON MAJOR FUNDS - 2021 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**
**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
-
-
109
1,035
(0)
1,144
54
13
67
1,148
1,215
27,480|
|---|---|---|---|---|---|---|
* Others comprise: The George Wishart Prize Fund (£500) and the James Baum Prize Fund (£100).
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.
40
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **19 PURPOSE OF FUNDS**
## **(a) Designated:**
- (i) The Bursary Fund exists to fund bursaries for pupils of the School. The balance available is reviewed annually.
- (ii) School Tours fund exists to account for monies received and expended on school tours and sports tours.
- (iii) School Foundation fund exists to account for and hold unrestricted donations received by the St Albans School Foundation either through regular giving, specific donations or legacy donations (except for donations to bursaries (see below). The details of the expenditure of the donations are published annually in the Foundation Annual Report.
- (iv) The Professor Hawking Memorial Fund is a designated fund which aims to raise funds to finance a range of St Albans School initiatives to further the legacy of Professor Hawking.
## **(b) Restricted:**
- (i) The Foundation Bursary Fund receives donations made to the Foundation where donors request monies to be applied towards bursaries.
- (ii) The Foundation Maths Fund is a restricted fund for the purpose of developing a new maths centre at the school. It is funded to date by specific donations.
- (ii) The Covid-19 Hardship Fund is a restricted fund established with the purpose of assisting with a bursary, those affected financially by the current Coronavirus pandemic and unable to pay fees. Donations have been received to date from current and former pupils, parents, staff and Governors.
- **(c)** Endowed as to capital and Restricted as to income arising from that capital:
## **Expendable endowment:**
- (i) The Scholarship & Bursary Trust exists to fund scholarships of up to half of a full fee, which are awarded following competitive examination to pupils entering the School at age 11, 13 and 16. Scholarships are awarded in art and music in addition to academic excellence.
## **Permanent endowment:**
- (ii) The John Clough Bursary Trust, established in memory of a former Head of Music at the School, exists to help defray the cost of additional music tuition. Bursaries are awarded for two years, following competitive performance on the recommendation of distinguished independent adjudicators.
- (iii) The St Albans School Trust was founded with the object of providing and conducting, in or near St Albans, in the County of Hertfordshire, a day school for boys and also for girls in the Sixth Form. On 31 August 2003 the unrestricted and restricted activities of the trust were transferred to the company, St Albans School. The Trust holds the permanently endowed property of the School.
41
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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.
42
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme (see provision below)
Note that the scheme’s previous valuation was carried out with an effective date of 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 asked the participating employers to pay additional contributions to the scheme (see provision below)
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.
Where the scheme is in deficit and where the School has agreed to a deficit funding arrangement the School recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
## **PRESENT VALUES OF PROVISION**
|**PRESENT VALUES OF PROVISION**|||||
|---|---|---|---|---|
||**31 Aug**||**31 Aug**|**31 Aug**|
||**2022**||**2021**|**2020**|
||(£000's)||(£000's)|(£000's)|
|Present value of provision||26|128|163|
43
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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**
**2022**
(£000's)
128
1
(31)
(1)
(71)
26|**Period**
**Ending**
**31 Aug**
**2021**
(£000's)
163
-
(35)
-
-
128|
|---|---|---|
## **INCOME AND EXPENDITURE IMPACT**
|Interest expense
Remeasurements – impact of any change in assumptions
Remeasurements – amendments to the contribution schedule
**ASSUMPTIONS**
**31 Aug**
**2022**
% per
annum
Rate of discount
4.46|**Period**
**Ending**
**31 Aug**
**2022**
(£000's)
1
(1)
(71)
**31 Aug**
**2021**
% per
annum
0.63|**Period**
**Ending**
**31 Aug**
**2021**
(£000's)
-
-
-
**31 Aug**
**2020**
% per
annum
0.55|
|---|---|---|
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The following schedule details the deficit contributions agreed between the School and the scheme at each year end period:
## **DEFICIT CONTRIBUTIONS SCHEDULE**
|Year ending
Due within one year
Due after one year|**31 Aug**
**2022**
(£000's)
11
15|**31 Aug**
**2021**
(£000's)
36
92|**31 Aug**
**2020**
(£000's)
35
128|
|---|---|---|---|
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 2022**
## **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 2020**
**Fund balances carried forward at 31 August 2021**
**18**
Non ancilliary trading
**Total expenditure**|**Unrestricted Restricted**
**Endowed**
**Funds**
**Funds**
**Funds**
**2021**
**£ 000's**
**£ 000's**
**£ 000's**
**£ 000's**
16,201
-
-
16,201
1,048
-
-
1,048
104
-
-
104
154
-
-
154
31
29
-
60
697
54
-
751
76
76
18,311
83
-
18,394
123
-
-
123
214
-
-
214
938
-
-
938
16
13
-
29
1,291
13
-
1,304
14,764
168
-
14,932
16,055
181
-
16,236
2,256
(98)
-
2,158
131
-
106
237
(253)
253
-
-
2,134
155
106
2,395
22,987
989
1,109
25,085
25,121
1,144
1,215
27,480|
|---|---|
45
**ST ALBANS SCHOOL**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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**|**2022**
**£**
64,342
10,064
47,273
121,679
(90,816)
30,863
-
30,863
6
1
30,856
30,863
1,087,978
(1,054,237)
33,741
(38,010)
(7,139)
(11,408)
-
(11,408)|**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)|
|---|---|---|
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 2022**
## **23 RELATED PARTY TRANSACTIONS**
St Albans School charged Abbey Gateway Enterprises Ltd management fees of £6,000 in the year to 31 August 2022 and no amounts were outstanding at the year end. Abbey Gateway Enterprises Ltd received income amounting to £868,375 (2021 - £841,402) 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. At 31 August 2022, the Bursar of St Albans School was the sole director of Abbey Gateway Enterprises Ltd.
St Albans School Woollam Trust charged Abbey Gateway Enterprises Ltd licence fees, for the use of sports facilities, of £996,124 (2021 - £1,006,020) in the year to 31 August 2022 and £ 83,010 was outstanding at the year end (2021 £140,000). 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 £6,000. No amounts were outstanding at the year end.
St Albans School Woollam Trustee Company is the Corporate Trustee of St Albans School Woollam Trust, Neither the School or its subsidiary made any transactions in the year with St Albans School Woollam Trustee company. At the year end, Two Trustees of St Albans School were also Directors of St Albans School Woolllam Trustee Company (Mrs F Lightowler, A Woodgate).
47