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2023-08-31-accounts

ST ALBANS SCHOOL

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

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 21
Consolidated Statement of Financial Activities 25
Consolidated Summary Income and Expenditure Account 26
Consolidated and School Balance Sheets 27
Consolidated Cash Flow Statement 28
Notes to the Financial Statements 30-49

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ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

The St Albans School Governors present their Annual Report for the year ended 31 August 2023 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.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

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.

Aims

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

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

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:-

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 900 pupils (2022 – 880) in the financial year and opened in September 2023 with 909 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.

Grant-making policy

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

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

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

The majority of available funds go towards bursaries.

Scholarships and bursaries valued at £959,000 (2022 - £800,428) were awarded in the year. Of this total, £590,000 (62%) was awarded through means-tested bursaries. A total of 184 pupils in the School received either a bursary or scholarship during the year (2022: 182) of whom 2 received total remission of fees (2022: 6).

Available bursary funds were fully and effectively deployed on a means-tested basis during the academic year. Means-tested 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

In summer 2023 ‘normal’ public examinations took place for the first time since 2019. The grading standard returned to that of 2019 and no contingency arrangements were required. Pupils experienced a normal year and were well supported by teachers with ways to develop efficient and effective Learning to Learn (LTL) strategies.

At A Level in 2023, A grades accounted for 22.4% of all grades (23.7% in 2019) and A and A grades were at 59.1% (57.8% in 2019). One candidate achieved 5 A grades, 4 candidates achieved at least 4 A grades, 17 achieved 3 A grades, 33 gained at least 2 As and 64 pupils gained at least 1 A*.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

The School's 2023 GCSE results are similarly pleasing. 63.0% of examinations taken were graded 9-8 (compared with 61.3% in 2019). Almost two-thirds of the year group gained at least five grades 9-8, with almost 60% of the cohort gaining at least six grades 9-8. 41% of the year group achieved at least eight 9s and 8s. Almost 30% achieved at least nine 9s and 8s and 30 candidates (almost 20% of the cohort) achieved at least ten 9s and 8s. 31 pupils (about 20% of the year group) achieved straight 9s and 8s. More than half of our candidates gained at least seven grades 9-8.

63% of students who applied to university in 2023 secured a place at their first preference university on results day with 12% being offered a place at their second preference university. 71% were offered places at Russell Group universities with 10% confirming places at former 1994 Group universities such as Bath and Loughborough. Eight 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 Warwick, Bristol, Leeds, Exeter 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 has had 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 2022-2023 encompassed a significant involvement in competitive sport and reflected a positive uptake in participative sport by the students. 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 75% of students represented the school in competitive inter-school sport at some stage this academic year.

The school has participated in the Sport England ‘Active Lives Children and Young People Survey’ three times in past seven years (summary data below) and the trends are positive in terms of increased regularity and quantity of physical activity that our students are engaging in. This is up from 36% 60+ minutes per day in 2017 to 51% in 2022 mirrored by a reduction in the less active % over this time period.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

Active Lives Children and Young People Survey & Study School physical activity data

Survey Year Less Active(%) Less Active(%) Fairly Active(%) Fairly Active(%) Active Every Day (%) Active Every Day (%)
Less than 30 mins a day 30-59 minsper day 60+ minsper day
ALCYPS* School** ALCYPS* School** ALCYPS* School**
2017-18 32 29 23.9 35 43.3 36
2018-19 29 24.2 46.8
2019-20 31.3 23.8 44.9
2020-21 32.4 28 23 31 44.6 41
2021-22 30.1 22.7 47.2
2022-23*** n/a 23 n/a 26 n/a 51

*Active lives children and young people survey data.

** Study school data of active lives survey completed these years.

Podium Analytics is a UK charity that in conjunction with Oxford University is undertaking research using injury data from partnership schools of which St Albans is one of the founding contributors. This helps provide detailed sport injury logging, tracking and analysis and they have also attempted to provided back data injury history for the school to enable comparison and greater insight into the nature, type, and regularity of sports injuries that our students experience that will help inform good practice.

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 yeargroups. Some of the most notable individual accolades are identified below:-

International honours

National honours

Regional

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

Team/Sports Achievements & Firsts:

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.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

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.

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.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

4. The extensive partnerships with local schools

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.

Fitness and Fun

This year we ran a morning of ‘Fitness and Fun’ for primary schools which was led by the PE Dept up at Woollams. It was attended by over 230 Year 4 pupils and 20 staff from 5 local schools and included a carousel of athletic-based activities and refreshments and transport were provided.

In addition to these Partnership activities, our Sixth Form teamwork with several state Secondary Schools, sharing knowledge and good practice, as well as practical support to students with the UCAS application process, particularly to Russell Group universities, including Oxbridge.

Community Link

Volunteers in the School’s Community Link Programme aided 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

After a break of 3 years due to Covid we were able to recommence our volunteering at Verulam House and Vesta Lodge Care Homes where some of our Sixth Form students assist with the activity programmes on Friday Afternoons. One of our Art teachers also runs Art classes in one of the Care Homes. After a break of several years due to Covid we were able to have our annual Christmas party for the elderly in the community and 80 local residents were treated to an afternoon of Festive food and entertainment.

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.

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.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

Combined Cadet Force Partnership

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

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:-

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

Around half of students travel in by coach, thus reducing car travel. Approximately 25% of pupils commute by car. This proportion 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:-

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.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The School had 900 pupils at the end of the financial year (2022 – 880). The School population from September 2023 was 909 pupils.

Total income of the School (excluding donations) for the year was up by 14.9% 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.

The School's Net Income (excluding donations) was £1,122,000 (2022 - £642,000), some 6.15% 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 £331,000, which was allocated as requested by donors in supporting bursaries, and specific capital projects 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 some 900 pupils provides saving to the taxpayer of around £6.5million, to which needs to be added the approximate amount of UK tax supported by the School of approximately £9.7million. In addition to this relief to the public purse, the School brings substantial benefits to the local community, as a major employer, through the education we offer, our bursary programme and the Community Link and Partnership scheme, which creates a social asset without cost to the Exchequer.

We consider that the key financial performance indicators are those that communicate the financial performance and strength of the School as a whole, those being pupil numbers, academic results for the year, surplus for the period, 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. Taking all of these together, the performance of the School remains excellent. All of these factors give the Governors the confidence that the School is, and will remain, a going concern, and so the accounts have therefore been prepared on the basis that the charity is a going concern.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

Reserves Policy

The total funds of the Charity at 31 August 2023 amounted to £29,780,000 (2022 - £28,424,000) of which £1,091,000 (2022 - £1,131,000) were endowed funds, £1,379,000 restricted and £27,310,000 unrestricted (2022 - £1,241,000 and £26,052,000 respectively). The unrestricted funds include designated funds which represent Bursary, Foundation, Professor Hawking Memorial Fund and Tour funds and amounted to £4,378,000 (2022 –£4,081,000) 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 yearend (non-designated, unrestricted reserves less fixed assets minus loans on such assets) amounted to £4,910,000 (2022 - £4,386,000) 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 2023 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.

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.

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

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

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

The School has a trading subsidiary company Abbey Gateway Enterprises Limited which is included and consolidated into the School’s group accounts in the year ended 31[st] August 2023.

Results for Abbey Gateway Enterprises Limited show a retained loss for the year of £10,107 (2022 – £11,408).

PRINCIPAL RISKS AND UNCERTAINTIES

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

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

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

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

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

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

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

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.

Lt Col MWS Cawthorne RM Retd 4, 5
Mrs F Lightowler 2, 3, 6
Professor J Luzio 1
Mr S Majumdar KC (OA) 4
Mrs C Millington 5, 7
Mr N Moore (OA) 5, 6
Mr C Oglethorpe 1, 4, 7
Mr N Osborn (OA) (Chairman) 4, 7
Ms A Philpott (OA) 1, 2, 7
Mrs C Pomfret 2, 4, 6
Mr M Punt 1
Mr B Walker (OA) 1 Appointed 1 September 2023
Mr A Woodgate (OA) 3, 6

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

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ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

During the year the Board of Governors met formally 3 times to review all matters relating to the School. All Trustees give of their time freely and no remuneration was paid in the year.

Biographical details of all governors can be found on the School’s website.

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, Mrs C Preston, Mr P Rattle, Mr L Sinclair and Mr M Sutton.

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.

17

ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

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.

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.

18

ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

SENIOR LEADERSHIP

The Headmaster Mr Jonathan Gillespie MA (Cantab), FRSA Second Master Ms Melody Jones BSc Deputy Head – Teaching and Learning Mrs Victoria Saunders BA, MEd Deputy Head - Staff Mr Gareth Nichols BA, MEd The Bursar & Clerk to the Governors Mr Richard Hepper MA (Cantab), FCA

In April 2023 the Headmaster, Mr Jonathan Gillespie, announced his retirement effective Summer 2024, after a decade of dedicated service to the School.

In November 2023, the Governors announced that Mr Joe Silvester would replace Mr Gillespie from September 2024.

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 LLP, 71 Queen Victoria Street London EC4V 4BE

19

ST ALBANS SCHOOL

ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

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

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

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

The members of the Governing Body are responsible for ensuring that adequate accounting records are kept sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Relevant Audit Information

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

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

This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of St Albans School on 16 March 2024, 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

20

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 2023 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:

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.

21

ST ALBANS SCHOOL

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

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 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:

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:

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.

22

ST ALBANS SCHOOL

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

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 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 noncompliance 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.

23

ST ALBANS SCHOOL

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

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.

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 LLP Chartered Accountants Statutory Auditors 17 April 2024

71 Queen Victoria Street London EC4V 4BE Date Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

24

ST ALBANS SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

----- Start of picture text -----
Unrestricted Restricted Endowed
Funds Funds Funds 2023 2022
Notes £ 000's £ 000's £ 000's £ 000's £ 000's
Income and endowments from:
Charitable activities
School fees receivable 2 18,240 - - 18,240 16,398
Other educational income 3 2,403 - - 2,403 1,732
Other trading actvities
Non-ancillary trading income 4 270 - - 270 220
Other activities 4 182 - - 182 146
Investments
Investment income and interest 5 141 76 - 217 56
Donations and legacies
Donations 6 246 85 - 331 499
Total income 21,482 161 - 21,643 19,051
Expenditure on: 7
Raising funds
Financing costs 104 - - 104 103
Development office 230 - - 230 225
- -
Non- ancilliary trading 1,160 1,160 1,096
Investment management costs 14 11 - 25 29
Total deductible costs 1,508 11 - 1,519 1,453
Charitable activities
Education 18,602 77 1 18,680 16,468
Total expenditure 20,110 88 1 20,199 17,921
Net incoming/(outgoing) funds from operations
before transfers and investment gains 1,372 73 (1) 1,444 1,130
-
Gains/(losses) on other investments (49) (39) (88) (186)
Transfers between funds 18 (65) 65 - - -
Net income and capital inflow 1,258 138 (40) 1,356 944
Fund balances brought forward at 1 September 2022 26,052 1,241 1,131 28,424 27,480
Fund balances carried forward at 31 August 2023 18 27,310 1,379 1,091 29,780 28,424
----- End of picture text -----

The notes on pages 30 to 49 form part of these financial statements.

25

ST ALBANS SCHOOL

CONSOLIDATED SUMMARY INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2023

----- Start of picture text -----
2023 2022
Notes £000's £000's
Income from:
Charitable activities
School fees 2 18,240 16,398
Other educational income 3 2,403 1,732
Other trading activities
Sub-letting and management charges 4 182 146
Non ancillary trading income 270 220
Investments
Dividends, bank and other interest 5 217 56
Donations and legacies
Grants and donations - Unrestricted 246 368
- Restricted 6 85 131
Total income 21,643 19,051
Expenditure on: 7
Costs of raising funds
Financing costs 104 103
Development office 230 225
Non ancillary trading 1,160 1,096
Investment management costs 25 29
1,519 1,453
Charitable activities
Education 18,680 16,468
Total expenditure 20,199 17,921
Net income before investment gains and inter-fund transfers 1,444 1,131
Net investment gains for the year (49) (103)
Net income for the year 1,395 1,028
----- End of picture text -----

26

ST ALBANS SCHOOL

COMPANY REGISTRATION NUMBER 04400125 CONSOLIDATED AND SCHOOL BALANCE SHEETS AS AT 31 AUGUST 2023

Notes
FIXED ASSETS
Tangible assets
9
Investments
10		 2023
£000's
19,152
9,016
Group		 2022
2023
2022
£000's
£000's
£000's
19,348
19,152
19,348
9,126
9,016
9,126
School
28,168 28,474
28,168
28,474
CURRENT ASSETS
Stock
Debtors
11
Cash and deposits		 81
909
6,353		 64
-
-
657
900
647
5,126
6,321
5,079
CURRENT LIABILITIES
Creditors payable within one year
12		 7,343
(4,473)		 5,847
7,221
5,726
(5,672)
(4,373)
(5,582)
NET CURRENT ASSETS 2,870 175
2,848
144
TOTAL ASSETS LESS CURRENT
LIABILITIES
LONG-TERM LIABILITIES
13
Creditors payable after one year
Pension Scheme funding deficit		 31,038
(1,258)
-		 28,649
31,016
28,618
(210)
(1,258)
(210)
(15)
-
(15)
NET ASSETS
17		 29,780 28,424
29,758
28,393
REPRESENTED BY
18
PERMANENT ENDOWED FUNDS
EXPENDABLE ENDOWED FUNDS
RESTRICTED FUNDS
UNRESTRICTED FUNDS
20
Designated Reserve- includes revaluation reserve of
(£54,189) (2022: £4,697 )
School Reserve
Pension Reserve		 60
1,031
1,379
4,378
22,947
(15)		 63
60
63
1,068
1,031
1,068
1,241
1,379
1,241
4,081
4,378
4,081
21,997
22,925
21,966
(26)
(15)
(26)
TOTAL FUNDS 29,780 28,424
29,758
28,393

The net result for the financial year dealt with in the financial statements of the parent charity was a surplus of £1,365,000 (2022 £955,000).

These financial statements were authorised for issue and approved by the Board on 16 March 2024 and were signed on its behalf by:

Mr Neil Osborn

Chairman of the Governing Body

The notes on pages 30 to 49 form part of these financial statements.

27

ST ALBANS SCHOOL

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023

----- Start of picture text -----
Note 2023 2022
£000's £000's
Net cash inflow from operations
Net cash provided by operating activities (i) 2,185 1,244
Cashflows from investing activities:
Payments for tangible fixed assets (285) (236)
Proceeds on sale of tangible fixed assets - 22
Additions to securities investments portfolio (28) (28)
Withdrawals from securities investments portfolio 25 29
Investment income and bank interest received 217 56
Net cash provided by investing activities (71) (157)
Cashflows from financing activities:
Addition/(repayment) of loans (783) (430)
Finance costs paid (104) (103)
Net cash (used in) financing activities (887) (533)
Change in cash and cash equivalents in the reporting period 1,227 554
Cash and cash equivalents at the beginning of the reporting
period 5,126 4,572
Cash and cash equivalents at the end of the reporting period
(ii) 6,353 5,126
----- End of picture text -----

28

ST ALBANS SCHOOL

NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023

(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
(iii) Analysis of net changes in debt
Cash
Loans due within one year
Loans due over one year
Total		 At 1
September 22
£000's
5,126
(2,104)
(210)
2,812		 Cashflows
£000's
1,227
783
-
2,010		 2023
£000's
1,444
(217)
104
25
481
(17)
(252)
617
2,185
6,353
6,353
Non-cash
changes
£000's
-
1,048
(1,048)
-		 2022
£000's
1,130
(56)
103
29
440
(11)
19
(410)
1,244
5,126
5,126
At 31
August 23
£000's
6,353
(273)
(1,258)
4,822

29

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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, the financial result for the period was good 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 20.

Accounts

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

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

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

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

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

Critical accounting judgements and key sources of estimation uncertainty

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

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

30

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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. Intra-group sales and charges between the School and its subsidiaries are excluded from trading income and expenditure.

School buildings

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

Depreciation

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

Capitalisation

Items of equipment and fixtures and fittings are capitalised when part of a new project where the total cost of such items exceeds £25,000. Other incidental costs of equipment are charged to the statement of financial activities under appropriate cost headings.

31

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1 ACCOUNTING POLICIES (continued)

Investments

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

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

Fund accounting

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

The unexpended income of the above trusts is restricted.

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

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

Pension scheme

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

The School offers membership of a defined contributions pension scheme (The Pensions Trust Growth Plan) to nonteaching 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.

32

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

2
CHARITABLE ACTIVITIES - FEES RECEIVABLE
2023
£ 000's
(a)
School fees comprise:
Gross fees
19,328
Less: Bursaries, scholarships, grants and allowances
(1,153)
Add: Scholarships and bursaries paid for by restricted funds
Other scholarships and bursaries paid for by
unrestricted funds:
Foundation funds		 2022
£ 000's
£ 000's
17,531
(1,176)
18,175
63
2
18,240		 £ 000's
16,355
43
-
16,398

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

Scholarships
Music awards
Foundation Bursaries
Covid-19 Hardship Fund		 2023
£ 000's
21
1
41
-
63		 2022
£ 000's
8
1
2
32
43

Scholarships and bursaries valued at £959,000 (2022- £800,428) were awarded in the year. Of this total, £590,000 (62%) was awarded through means-tested bursaries. A total of 184 pupils in the School received either a bursary or scholarship during the year (2022: 182) of whom 2 received total remission of fees (2022: 6).

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		 2023
£ 000's
879
68
174
428
638
216
2,403
2023
£ 000's
270
12
162
8
182		 2022
£ 000's
826
76
138
420
185
87
1,732
2022
£ 000's
220
12
123
11
146

33

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

----- Start of picture text -----
5 INVESTMENT INCOME AND INTEREST 2023 2022
£ 000's £ 000's
Investment income
UK equities 9 9
Overseas securities 75 44
84 53
Bank and other interest
Cash 133 3
217 56
6 DONATIONS RECEIVABLE 2023 2022
£ 000's £ 000's
Foundation donations 244 409
Other donations 87 90
331 499
7 ANALYSIS OF EXPENDITURE
(a) Total expenditure
Staff Other Depreciation Total
costs costs (see below) 2023
(Note 8)
£ 000's £ 000's £ 000's £ 000's
Charitable expenditure
Education and grant making
Teaching 8,903 2,254 146 11,303
Welfare 109 759 868
Premises 476 2,471 335 3,282
-
Support costs of schooling and governance 1,554 1,596 3,150
Grants, awards and prizes - 77 - 77
Total charitable expenditure 11,042 7,157 481 18,680
Costs of raising funds:
Financing costs - 104 - 104
Development office 169 61 - 230
Abbey Gateway Enterprises Ltd 22 1,138 - 1,160
Investment management - 25 - 25
Total expenditure 11,233 8,485 481 20,199
----- End of picture text -----

Depreciation and other costs relating to the School's endowed fund properties totalling £635 (2022 - £635) have been charged directly to the endowment fund.

34

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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
8,271
99
407
1,330
-
10,107
-
136
21
-
157
10,264		 Other
costs
£ 000's
1,644
711
2,043
1,468
55
5,921
103
89
1,075
29
1,296
7,217		 Depreciation
(see below)
£ 000's
104
336
-
-
440
-
-
-
-
-
440		 Total
2022
£ 000's
10,019
810
2,786
2,798
55
16,468
103
225
1,096
29
1,453
17,921

Depreciation and other costs relating to the School's endowed fund properties totalling £635 (2021 - £635) have been charged directly to the endowment fund.

(c)
Governance included in support costs:
Auditors' remuneration - audit
- other services
- prior year (over)/under provision
Other governance costs		 2023
£ 000's
27
2
(2)
12
39		 2022
£ 000's
23
1
-
40
64

35

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

8 STAFF COSTS AND RELATED PARTY TRANSACTIONS

----- Start of picture text -----
|||| |---|---|---| |Total staff costs comprised:|2023|2022| |£ 000's|£ 000's| |Salaries and wages|8,729|8,078| |Social Security contributions|994|914| |Pension contributions|1,510|1,344| |Pension Trust revaluation|(72)| |11,233|10,264|

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

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

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£60,001 - £70,000|23|15| |£70,001 - £80,000|7|2| |£80,001 - £90,000|-|1| |£90,001 - £100,000|1|-| |£100,001 - £110,000|1|-| |£110,000 - £119,999|-|1| |£120,001 - £130,000|1|1| |£201,000 - £210,000|-|1| |£220,001 - £230,000|1|-|

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

The number of higher paid employees for whom retirement benefits are accruing under a money purchase scheme amounted to 6 (2022 -1) and under a defined benefit scheme 28 (2022 - 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 2022|21,250|270|1,506|23,026| |Additions|-|-|285|285| |-|-| |Disposals|(133)|(133)| |Cost at 31 August 2023|21,250|270|1,658|23,178| |Depreciation at 1 September 2022|2,836|79|763|3,238| |-|-| |Disposals|(133)|(133)| |Charge for year|330|5|146|481| |Depreciation at 31 August 2023|3,166|84|776|4,026| |Net book value at 31 August 2023|18,084|186|882|19,152| |Net book value at 31 August 2022|18,414|191|743|19,348|

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

36

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

10 INVESTMENTS

GROUP INVESTMENTS
Valuation at 1 September 2022
Additions
Disposals at opening market value
Revaluations
Group valuation at 31 August 2023		 Unrestricted
£ 000's
6,599
-
-
6,599		 Designated
£ 000's
1,395
308
(326)
(44)
1,333		 Endowed
£ 000's
1,132
251
(263)
(36)
1,084		 2023
£ 000's
9,126
559
(589)
(80)
9,016		 2022
£ 000's
9,341
677
(733)
(159)
9,126

The split of investments by fund for 2023 is shown in note 17

Group Investments comprise:
Cash
Non-UK investments assets
UK investment assets
Investment properties		 At
31/08/2023
MV
£ 000's
94
1,683
640
6,599
9,016		 At
31/08/2022
MV
£ 000's
125
2,049
353
6,599
9,126
School Investments comprise:
Cash
Non-UK investments assets
UK investment assets
Investment properties		 MV
Cost
£ 000's
£ 000's
94
94
1,683
1,932
640
503
6,599
5,859
9,016
8,388
At
31/08/2023		 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
Valuation at 1 September 2022
Additions
Disposals at opening market value
Revaluations
Valuation at 31 August 2023		 Investment
equities and
other
holdings
£ 000's
2,527
559
(589)
(80)
2,417		 Investment
Properties
£ 000's
6,599
-
-
-
6,599		 Total
£ 000's
9,126
559
(589)
(80)
9,016

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

37

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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
2023
£ 000's
57
13
59
780
909		 Group
2022
£ 000's
83
16
56
502
657		 School
2023
£ 000's
57
13
50
780
900		 School
2022
£ 000's
83
16
46
502
647

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
2023
£ 000's
273
1,435
715
318
1,335
397
4,473		 Group
2022
£ 000's
2,104
1,522
374
237
1,102
333
5,672		 School
2023
£ 000's
273
1,435
626
314
1,335
390
4,373		 School
2022
£ 000's
2,104
1,522
292
236
1,102
326
5,582

Pupil Fees Deposits – the total amount held in relation to fee deposits of £765,685 is included above. In the normal course of business the expected repayment of these amounts will be £276,100 (2022: £277,500) within one year and £489,585 (2022: £495,600) after more than one year. The Governors have reviewed the contract terms under which Pupil fee deposits are held by the School. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the School, pupils can leave at earlier dates. The School does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2023 have been included within current liabilities.

38

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

13 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans
Pension provision - Pensions Trust		 Group
2023
£ 000's
1,258
-
1,258		 Group
2022
£ 000's
210
15
225		 School
2023
£ 000's
1,258
-
1,258		 School
2022
£ 000's
210
15
225

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

A further Clydesdale Bank loan is repayable by instalments over 5 years from November 2022 with an interest rate of 2.5% over base rate.

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		 2023
£ 000's
273
67
1,191
1,531		 2022
£ 000's
2,104
210
-
2,314

39

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

15 LEASES

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

----- Start of picture text -----
|||||| |---|---|---|---|---| |Land and buildings|Other| |2023|2022|2023|2022| |£ 000's|£ 000's|£ 000's|£ 000's| |Less than 1 year|-|-|-|79| |-|-|-|-| |Between 1 and 5 years|

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

During the year, operating lease payments of £79,000 were expensed through the Statement of Financial Activities.

16 CAPITAL COMMITMENTS

At the year end the School had no capital commitments (2022-£nil).

17 ALLOCATION OF THE CHARITY NET ASSETS

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Net|2023| |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|11|-|49|-|60| |-|-| |Expendable endowed funds|1,083|(52)|1,031| |Restricted funds|-|-|1,379|-|1,379| |Unrestricted funds:| |-|-| |Designated|1,335|3,043|4,378| |School reserves|19,141|6,598|(1,534)|(1,258)|22,947| |Pension reserve|-|-|(15)|-|(15)| |19,152|9,016|2,870|(1,258)|29,780| |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|

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

40

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

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
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		 Income
£ 000's
20,902
20,902
41
284
255
580
21,482
32
3
-
126
-
161
-
-
-
-
-
21,643		 Funds
spent
£ 000's
(19,771)
11
(19,760)
(14)
(307)
(29)
(350)
(20,110)
(32)
(1)
(14)
(41)
-
(88)
-
(1)
(1)
-
(1)
(20,199)		 Transfers
£ 000's
(181)
-
(181)
235
-
(119)
116
(65)
-
-
(74)
154
(15)
65
-
-
-
-
-
-		 Net
Gains/
income/
(Losses)
(expenditure)
£ 000's
£ 000's
950
11
-
961
-
262
(49)
(23)
-
107
-
346
(49)
1,307
(49)
-
-
2
-
(88)
-
239
-
(15)
-
138
-
-
(2)
(1)
-
(1)
(2)
-
(37)
(1)
(39)
1,444
(88)		 Balance
c/fwd
2023
£ 000's
22,947
(15)
22,932
3,701
11
666
4,378
27,310
-
3
20
1,356
-
1,379
49
11
60
1,031
1,091
29,780

Transfers are made from the School to the Bursary Funds termly based on pupil numbers so as to fund designated expenditure, which amounted to £1,127,763. Bursaries and Scholarships of £892,599 were funded from the Bursary Fund.

Transfers from the Foundation Maths Fund, Foundation Fund and Covid-19 Hardship Fund to the Foundation Bursary Fund are in accordance with the donors' wishes.

41

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

18
(Continued)
SUMMARY OF MOVEMENTS ON MAJOR FUNDS - 2022 COMPARATIVE
Balance
Income
Funds
b/fwd
spent
2021
£ 000's
£ 000's
£ 000's
SCHOOL
School reserve
21,551
18,453
(17,877)
Pension reserve
(128)
102
21,423
18,453
(17,775)
DESIGNATED FUNDS
Bursary fund
3,319
32
(16)
School tours fund
15
49
(37)
School foundation fund
364
363
(35)
3,698
444
(88)
UNRESTRICTED FUNDS
25,121
18,897
(17,863)
RESTRICTED FUNDS
Scholarship & Bursary Trust
-
20
(20)
John Clough Bursary Trust
-
3
(2)
Foundation Maths Fund
109
-
(1)
Foundation Bursary Fund
1,035
84
(2)
Covid-19 Hardship Fund
-
47
(32)
1,144
154
(57)
ENDOWED FUNDS
Permanent endowed funds
John Clough Bursary Trust
54
-
-
St Albans School Trust
13
-
(1)
67
-
(1)
Expendable endowed funds
Scholarship and Bursary
1,148
-
-
Trust & others
1,215
-
(1)
TOTAL RESERVES*
27,480
19,051
(17,921)		 Transfers
Net
Gains/
income/
(Losses)
(expenditure)
£ 000's
£ 000's
£ 000's
(130)
446
-
-
102
-
(130)
548
-
256
272
(103)
7
19
-
(133)
195
-
130
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

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.

42

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

19 PURPOSE OF FUNDS

(a) Designated:

(b) Restricted:

Expendable endowment:

Permanent endowment:

43

ST ALBANS SCHOOL

FOR THE YEAR ENDED 31 AUGUST 2023

NOTES TO THE FINANCIAL STATEMENTS

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 £1,301,195 (2022: £1,171,093 ) and at the year-end £nil (2022 - £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.

44

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

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 £201,500

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 value of provision		 31 Aug
2023
£000's
15		 31 Aug
2022
£000's
26		 31 Aug
2021
£000's
128

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ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

RECONCILIATION OF OPENING AND CLOSING PROVISIONS

----- Start of picture text -----
|||| |---|---|---| |Period|Period| |Ending|Ending| |31 Aug|31 Aug| |2023|2022| |£000's|£000's| |Provision at start of period|26|128| |Unwinding of the discount factor (interest expense)|1|1| |Deficit contribution paid|(11)|(31)| |Remeasurements - impact of any change in assumptions|(1)|(1)| |Remeasurements - amendments to the contribution schedule| |-| |(71)| |Provision at end of period|15|26|

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

INCOME AND EXPENDITURE IMPACT

----- Start of picture text -----
|||| |---|---|---| |Period|Period| |Ending|Ending| |31 Aug|31 Aug| |2023|2022| |£000's|£000's| |Interest expense|1|1| |Remeasurements – impact of any change in assumptions|(1)|(1)| |-| |Remeasurements – amendments to the contribution schedule|(71)|

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

ASSUMPTIONS

----- Start of picture text -----
||||| |---|---|---|---| |31 Aug|31 Aug|31 Aug| |2023|2022|2021| |% per|% per|% per| |annum|annum|annum| |Rate of discount|6.04|4.46|0.63|

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

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

----- Start of picture text -----
||||| |---|---|---|---| |31 Aug|31 Aug|31 Aug| |Year ending| |2023|2022|2021| |£000's|£000's|£000's| |Due within one year|11|11|36| |Due after one year|4|15|92|

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

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.

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ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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

Notes
Income and endowments from:
Charitable activities
School fees receivable
2
Other educational income
3
Other trading actvities
Non- ancillary trading income
4
Other activities
4
Investments
Investment income and interest
5
Donations and legacies
Donations
6
Total income
Expenditure on:
7
Raising funds
Financing costs
Development office
Investment management costs
Total deductible costs
Charitable activities
Education
Net incoming/(outgoing)funds from operations
before transfers and investment gains
Gains/(losses) on other investments
Transfers between funds
20
Net income and capital inflow
Fund balances brought forward at 1 September 2021
Fund balances carried forward at 31 August 2022
18
Non ancilliary trading
Total expenditure		 Unrestricted Restricted
Endowed
Funds
Funds
Funds
2022
£ 000's
£ 000's
£ 000's
£ 000's
16,398
-
-
16,398
1,732
-
-
1,732
220
-
-
220
146
-
-
146
33
23
-
56
368
131
-
499
18,897
154
-
19,051
103
-
-
103
225
-
-
225
1,096
-
-
1,096
16
13
-
29
1,440
13
-
1,453
16,423
44
1
16,468
17,863
57
1
17,921
1,034
97
(1)
1,130
(103)
-
(83)
(186)
-
-
-
-
931
97
(84)
944
25,121
1,144
1,215
27,480
26,052
1,241
1,131
28,424

47

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

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		 2023
£
78,860
9,201
32,162
120,223
(99,467)
20,756
-
20,756
6
1
20,749
20,756
1,150,160
(1,122,370)
27,790
(37,897)
(10,107)
-
(10,107)		 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)

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.

48

ST ALBANS SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

23 RELATED PARTY TRANSACTIONS

St Albans School charged Abbey Gateway Enterprises Ltd management fees of £6,000 in the year to 31 August 2023 and no amounts were outstanding at the year end. Abbey Gateway Enterprises Ltd received income amounting to £880,623 (2022 -£868,375) 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 2023, 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 £1,040,946 (2022 - £996,124) in the year to 31 August 2023 and £86,610 was outstanding at the year end (2022 £83,010). St Albans School Woollam Trust charged St Albans School licence fees, for the use of sports facilities, of £510,000 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).

49