2022-08-31-accounts - The Children's House School

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THE CHILDREN’S HOUSE SCHOOL (A Charitable Company Limited by Guarantee)

TRUSTEES' REPORT

AND

FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

Company Registered No. 5443050 Charity Registered No. 1113285

THE CHILDREN’S HOUSE SCHOOL REPORTS AND FINANCIAL STATEMENT YEAR ENDED 31[st] AUGUST 2022

CONTENTS	Page
Trustees’ Annual Report	1
Independent Auditor’s Report	9
Statement of Financial Activities	12
Balance Sheet	13
Statement of Cash Flows	14
Notes to the Accounts	15

THE CHILDREN’S HOUSE SCHOOL TRUSTEES’ ANNUAL REPORT YEAR ENDED 31[st] AUGUST 2022

The Trustees present their annual report for the year ended 31[st] August 2022 under the Companies Act 2006 and Charities Act 2011, together with the audited financial statements for the year.

REFERENCE & ADMINISTRATIVE INFORMATION

Registered Office and Principal Address

77, Elmore Street, London, N1 3AQ.

Trustees

The Trustees of the Charity, who are also the Directors of the Company, who served during the year and subsequently are:

Dawn Brindle Chair Danielle Dufey Farida El Gammal Emma Kingstone Thomas Levine Sarah Pitcher Appointed 14 January 2023 Adam Zivanic Appointed 14 January 2023 Brody Bibby Resigned 24 June 2022 Company Secretary: Michelle Lester-Swindell Key Management Personnel: Head Teacher Whole School Kate Orange Resigned 31 August 2022 Head Teacher Whole School Ellie Grunewald Appointed 1 September 2022 Assistant Head Upper School Taiba Hussain Head Teacher of Nursery School Salima Keshavjee Resigned 31 December 2022 Assistant Head Nursery School Mihaela Zama Senior School Administrator Sue Garcin Professional Advisors Bankers Barclays Bank Plc 114 Fenchurch Street, London EC3 3HY Solicitors Veale Wasborough Vizards Narrow Quay House, Narrow Quay, Bristol, BS1 4QA Auditor Haysmacintyre LLP 10 Queen Street Place, London EC4R 1BE Website www.childrenshouseschool.co.uk Registered Company Number 5443050 Registered Charity Number 1113285

THE CHILDREN’S HOUSE SCHOOL TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31[st] AUGUST 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The Children’s House School is a company limited by guarantee and a registered charity.

Governing Document

The Company is governed by its Memorandum and Articles of Association, filed at Companies House on 4[th] May 2005 .

Governing Body

The Directors of the Company, known collectively as the Council of Management, in accordance with its governing document, are either nominated by Members or proposed by resolution of the Council of Management. A Director’s appointment is ratified by a majority of Members at the Annual General Meeting. The Directors’ term of office is three years, after which they are eligible for re-election.

Trustee Recruitment and Training

The Council of Management aim to recruit Trustees who have the varied skills necessary to fulfil their duties as Trustees of the School. New trustees are taken on a tour of the School, receive a briefing on how the School is run and are given a handbook containing copies of the School’s policies. Trustees are encouraged to attend appropriate training courses or seminars and are circulated with relevant publications. The School is a member of the Association Governing Bodies of Independent Schools. All Trustees are required to obtain clearance from the Disclosure and Barring Service.

COVID-19

The academic year ending 31 August 2022 was a return to normal for the School in that both sites were open to in-person teaching all year. The impact of the pandemic continued to be felt where pupils and staff were required to self-isolate, however as social distancing restrictions lessened the School was able to extend its provision, by using external facilities and taking the Children on educational trips, and organising our regular fund-raising activities. As ever, the quality of ongoing education for our pupils and the health, safety and wellbeing of our entire School community was our main priority.

The School continues to remain ready to revert to remote provision in the case of insufficient teaching staff due to self-isolation, year group self-isolation or national or local lockdowns for any period of time.

Organisational Management

The Council of Management meets formally at least once a term and more often, where necessary, to provide governance oversight and guidance on strategy of the School after discussion with the Head teacher, the Head of Nursery, and the Administrator and, where appropriate, with the Parent Committee.

The School is run on a day-to-day basis by the Head Teacher, Head of Nursery and Administrator who are responsible to the Council of Management. Technical educational matters are delegated to the Head teacher.

The Parent Committee, whose membership is drawn from the body of current parents at the School, usually meets termly and is consulted on many aspects of the running of the School. The Parent Committee acts in an advisory capacity only.

Ultimate responsibility for the running of the School lies with the Council of Management.

Remuneration

The Council of Management sets the remuneration of key management personnel in June of each year. The level of remuneration is set with reference to changes in roles, performance, level of experience and with regard to rates of pay within the sector.

THE CHILDREN’S HOUSE SCHOOL TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31[st] AUGUST 2022

Principal Risks and Uncertainties

The Council of Management regards the issue of risk management as a priority. The key risks for the School include:

Reduced revenue from School fees due to reduction in the number of pupils attending the School from both reduced demand for independent education due to COVID, Brexit and increased competition from other schools and nursery providers,
Economic downturn, which may lead to the school running at a deficit due to the combination of affordability of school fees and increased running costs,
Increased rates of pay and pension contributions in the public sector,
Insufficient teaching or administrative staff to run the School due to resignation or illness,
Lack of succession planning, and requirement to broaden the skill set within the Council of Management as the School undergoes expansion,
Decrease in charitable giving demonstrating inadequate public benefit as a charity,
Declining parental involvement in running social and charitable events as a legacy of the pandemic restrictions.

The Council of Management regularly assesses the risks to which the charity is exposed, agrees how best those risks may be mitigated and takes the appropriate action to manage them.

Special responsibility for particular areas of risk, such as child protection and health and safety are allocated to Council of Management members who are given appropriate training. Routine health and safety and risk assessments are regularly undertaken by the School’s staff. In addition, the Children’s House uses an external risk assessor to undertake a thorough health and safety risk assessment of both its sites; the most recent external risk assessment was carried out in December 2022.

THE CHILDREN’S HOUSE SCHOOL TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31[st] AUGUST 2022

OBJECTS, PUBLIC BENEFIT AIMS, OBJECTIVES AND PRINCIPAL ACTIVITIES

Objectives and Activities

The object of the company is the advancement of children aged 16 or under by the operation of schools, educational centres and educational facilities. In order to advance this object, the school aims to provide safe and satisfying educational and play facilities and to encourage the participation of parents in activities which promote their children’s education. In furthering this Object, the Council of Management, as charity trustees, have complied with the duty in s.17(5) of the Charities Act 2011 having due regard to the Charity Commission’s published guidance concerning the operation of the Public Benefit requirement under that Act.

Principal Activities and Income Sources

The principal activity of the company for the period under review was running the Children’s House School on its two sites in Islington. It provides nursery education for children from the age of 2½ to 4 at its Elmore Street building and primary education for children from the age of 4+ at the Upper School in King Henry’s Walk.

During the period, the school had an average of 96 (2021:105) pupils across both sites. The school’s principal source of income is from school fees. Other sources of income are as follows:

Forfeited Fee Deposits and Fees in Lieu of Notice £26,270 (2021: £33,499)
Registration fees £9,800 (2021: £10,900)
Funding from Islington and Hackney Councils to support pupils with special educational needs £NIL (2021: £8,711)
Income from after school clubs and music lessons £38,028 (2021: £8,126)
Fundraising income including the annual auction £19,116 (2021: £2,763)
Insurance claim against loss of income in 2019-2020 £NIL (2021: £100,000)

Grant Making: bursaries and assistance with fees

At any given time a number of children are supported through the school with means tested bursaries, assessed by an independent agency, which, in most cases, are worth 100% of the fees. These are pupils for whom it is judged that the small class sizes and particular environment that the Children’s House provides will enable them to flourish better than in an alternative setting but whose parents would be unable to meet the cost of the fees. In the year ended 31[st] August 2022 3 pupils received bursaries representing 75-100% fees at the nursery, the cost of which amounted to £21,189 representing 2% (2021: £10,225 representing 1%) of gross fee income. The school is looking to continue to provide this benefit to further pupils.

In addition, a hardship fund is available to families within the school should they become unable to meet the fees. In the year ended 31[st] August 2022 no families accessed the hardship fund (2021: £NIL).

Community Links

The COVID-19 pandemic significantly reduced the Community activities the School participated in, however with social distancing restrictions easing throughout the year the School was able to resume some of its Community activities. The Upper School and its nearest neighbour, St Jude’s and St Paul’s Primary School, continued to work together in a number of areas including the collection of food donations for the Hackney Food Bank (Trussell Trust). The Children’s House has links with the adjacent Church, St Jude and St Paul’s. The children visit the Church as one of many visits to places of worship. The Vicar sometimes leads an assembly for our children.

The Children’s House is responsible for two plots in the community garden in King Henry’s Walk which was created with the support of Islington Council. The School’s involvement in this garden results in a number of benefits both to its own pupils and to the wider community. The garden, which is a valuable community resource and is frequently open to the public as well as being used by many other groups, provides an excellent teaching resource for Children’s House pupils who visit it regularly to tend their plot.

The nursery children regularly visit the Almorah Community Centre garden. The School’s payment for this supports the Almorah Community Centre and the School provides financial assistance with the garden’s upkeep as and when necessary.

We support the Islington Adventure playground scheme by hiring their facilities and the School donated a large pirate ship for the enjoyment of all children using the playground.

We are now linked in with the local anti-idling campaign and Clean Air 4 Schools. We are part of the ECO school programme and have appointed a teacher as an ECO co-ordinator who works with children in the ECO committee.

THE CHILDREN’S HOUSE SCHOOL TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31[st] AUGUST 2022

Plans for the Future

In recent years the School has undertaken an extensive survey of present and past parents to help develop its plans for the future. The School has already made changes to the sessions available to nursery pupils in response to this feedback and has expanded the provision of before and after School care for children at both sites. Overwhelmingly, parents indicated their preference to educate their children at The Children’s House School to Year 6, avoiding the need to change School early in the child’s education and the 7+ exam.

We are delighted to be expanding into a full Preparatory School for children up to Year 6. Our first Year 3 cohort started in September 2022 and will expand by one year group each academic year until this cohort reaches Year 6.

We have leased additional space in St Jude and St Paul’s Church and created two new classrooms in the upper hall and a multiuse space in the lower hall. We are planning additional reorganisation and building work where necessary in the existing school building and at the Nursery in Elmore Street. We have redeveloped the playground at King Henry’s Walk creating a multi-use games area and updated play space.

The ultimate aim will be the creation of a dedicated Children’s House Early Years Learning Centre at Elmore Street, accommodating our nursery, pre-reception and Reception children, and a vibrant home for our Children’s House Preparatory School at King Henry’s Walk accommodating Year 1 to Year 6.

THE CHILDREN’S HOUSE SCHOOL TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31[st] AUGUST 2022

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Fundraising performance

The Trustees of The Children’s House have always considered that the School should play a full and responsible part in its local community, striving to pursue its charitable objects both within and beyond the confines of its pupil population. The majority of fundraising is for the benefit of other charitable organisations, with the exception of a proportion of income from the School auction agreed annually by the Parent Committee. Fundraising activities resumed, where possible, after the lifting of the social restrictions in place during the COVID-19 pandemic. The auction, organised by the Parent Committee, took place in March 2022 after a break of 14 months. There is currently no long-term fundraising initiative. There were no complaints regarding fundraising activities during the year.

Auction

The Children’s House Auction has been an annual event held at the school for over twenty-five years and the School was delighted to host it again. The objective is to raise funds for the school and other local charities. The Parent Committee is responsible for organising the occasion and decide annually, in consultation with the Head, on the proportion of proceeds to be given to the school and select the other beneficiaries on the grounds that they complement the objects of the school. The March 2022 Auction raised £3,783 for the Friends of the Rosebowl youth project on the Marquess Estate (2021: £NIL), £3,783 for Urban Hope, a youth and community project in Islington (2021: £NIL) and £1,376 for the DEC Ukraine Appeal (2021: £NIL).

Wheelies

In the summer term the children undertake their main fundraising activity of the year, a sponsored event known as Wheelies. In June 2022 the children raised £1,937 (2021: £2,011. The Council of Managed agreed that the School would match the funds raised bringing the total donation to CPotential to £4,021).

Other

A number of other fundraising activities occur throughout the year including Harvest Festival and Farmers market raising funds for St Stephen’s Church homeless project, and participation in the Comic Relief and Children in Need campaigns.

Fundraising events attended by pupils and parents generated funds which supported the following charities:

	2022	2021
	£	£
Charitable Organisations
Friends of the Rosebowl - Marquess Estate - Auction	3,783	-
Urban Hope – Auction	3,783	-
CPotential – Wheelies	1,937	4,021
DEC Appeal for Ukraine – Auction	1,376	-
St Stephen’s Church, homeless project	1,056	-
Comic Relief	165	215
Children in need	133	-
Summer Fair Outreach	32	538
	---------------	---------------
Total	12,265	4,774
	---------------	---------------

Staff

The Trustees are, as ever, grateful to all the staff at the Children’s House for their hard work and commitment to the continuing success of the School.

Investment performance

In addition to a deposit account, the School holds a number of long-term deposits. The average rate of return was 0.09% (2021: 0.04%).

THE CHILDREN’S HOUSE SCHOOL TRUSTEES’ ANNUAL REPORT (continued) YEAR ENDED 31[st] AUGUST 2022

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

Income for the year totalled £1,506,636 (2021: £1,588,165) and expenditure amounted to £1,558,046 (2021: £1,477,122), resulting in a deficit of £51,410 (2021: Surplus £111,043).

Fee income for the academic year amounted to £1,408,094 (2021: £1,422,622) after deducting the cost of bursaries and assistance with fees of £23,614 (2021: £12,216). Other income was received from a number of sources. Income received from forfeited fee deposits and fees received in lieu was £26,270 (2021: £33,499). The School continued to receive funds from Islington as part of early years education entitlements for 3 and 4 year olds amounting to £182,704 (2021: £207,587). In 2021 the School received an insurance claim of £100,000 for loss of income relating to £2019-2020 which did not recur in the current financial year.

Staff costs, which are always the School’s most significant expense, amounted to £1,149,983 (2021: £1,139,007) representing 82% (2021: 80%) of net fee income. The School continued to develop its management team structure and recruit high quality staff members.

The deficit made during the year arose due to slightly lower pupil numbers than expected combined with some one-off items of expenditure including Head Teacher recruitment fees and emergency building repair costs.

Management accounts are prepared termly and all variances from the annual budget are investigated and reported to the Council of Management.

Cash at bank and in hand totalled £2,123,609 (2021: £2,219,918) at 31[st] August 2022.

RESERVES POLICY

At 31[st] August 2022 the total reserves of the charity were £2,087,026 (2021: £2,138,436). All reserves are unrestricted and include free reserves of £1,450,905 (2021: £1,718,907), designated funds for fixed assets of £582,676 (2021: £366,084) and bursaries £53,445 (2021: £53,445). The Trustees aim to build a sufficient level of free reserves to repay fee deposits, to cover approximately one term’s expenditure, to undertake maintenance and development of School facilities and to provide the Trustees with sufficient financial flexibility to respond to strategic opportunities as they arise including the planned School expansion project. As such the Trustees consider the current level of reserves to be in line with the requirement.

INVESTMENT POLICY

Investments are cash deposits as, despite the relatively low returns, the Trustees consider this approach currently poses less risk than other forms of investments. This position is reviewed regularly.

THE CHILDREN’S HOUSE SCHOOL TRUSTEES ANNUAL REPORT (continued) YEAR ENDED 31[st] AUGUST 2022

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also the directors of The Children’s House School for the purposes of company law) are responsible for preparing the Trustees’ 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 Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and the application of resources, including the income and expenditure, of the company for that period. In preparing these financial statements, the Trustees are required to:

select the most suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are 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 ensuring their proper application under charity law 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 Council of Management, at the date of the 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 Council of Management has taken all the steps that they should have taken as a member of that body in order to make themselves aware of the relevant audit information and to establish that the Company’s auditor is aware of that information.

Approved by the Board of Directors at its meeting on 13 March 2023 and signed on its behalf by

Dawn Brindle Chair

THE CHILDREN’S HOUSE SCHOOL INDEPENDENT AUDITOR’S REPORT TO MEMBERS AND TRUSTEES YEAR ENDED 31[st] AUGUST 2022

Opinion

We have audited the financial statements of The Children’s House School for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 August 2022 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's 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 Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees’ Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report) has been prepared in accordance with applicable legal requirements.

THE CHILDREN’S HOUSE SCHOOL INDEPENDENT AUDITOR’S REPORT TO MEMBERS AND TRUSTEES YEAR ENDED 31[st] AUGUST 2022

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the charitable company; or
the charitable company financial statements are not in agreement with the accounting records and returns; or
review of minutes of management committee minutes; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and industry, we identified that the principal risks of non-compliance with laws and regulations, company law and charity law applicable in England and Wales, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates. Audit procedures performed by the engagement team included:

Inspection of correspondence with regulators and tax authorities;
Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
Evaluating management’s controls designed to prevent and detect irregularities;
Reviewing minutes of Council of Management meetings;
Identifying and testing journals; and
Challenging assumptions and judgements made by management in their critical accounting estimates.

THE CHILDREN’S HOUSE SCHOOL INDEPENDENT AUDITOR’S REPORT TO MEMBERS AND TRUSTEES YEAR ENDED 31[st] AUGUST 2022

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Weaver (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor 13 March 2023

10 Queen Street Place London EC4R 1BE

THE CHILDREN’S HOUSE SCHOOL STATEMENT OF FINANCIAL ACTIVITIES (Including an Income and Expenditure Account) YEAR ENDED 31[st] AUGUST 2022

EAR ENDED 31st AUGUST 2022
	Notes	2022	2021
		£	£
INCOME FROM:
Charitable Activities
School Fees Receivable	2	1,408,094	1,422,622
Income From Ancillary Trading	3	74,098	61,236
Other Trading Activities
Fundraising Events	4	19,116	2,763
Donations and Legacies
Donations and Grants	5	-	-
Other
Other Income	6	3,417	100,725
Investments
Bank Interest		1,911	819
		-----------------------	-----------------------
Total Income		1,506,636	1,588,165
		-----------------------	----------------------
EXPENDITURE ON:
Raising Funds
Fundraising Costs		2,068	-
Financing Costs		272	297
		_____	_____
		2,340	297
Charitable Activities
School Operating Costs		1,555,706	1,476,825
		----------------------	----------------------
Total Expenditure	9	1,558,046	1,477,122
		----------------------	----------------------
Net Deficit – Movement in funds		(51,410)	111,043
RECONCILIATION OF FUNDS:
Unrestricted funds brought forward at 1st
September 2021		2,138,436	2,027,393
		----------------------	----------------------
Unrestricted funds carried forward at 31st
August 2022	14	2,087,026	2,138,436
		----------------------	----------------------

The Statement of Financial Activities incorporates the Income and Expenditure account. There are no other recognised gains or losses other than those shown above.

The notes on pages 15 to 22 form an integral part of these financial statements.

THE CHILDREN’S HOUSE SCHOOL BALANCE SHEET AS AT 31[st] AUGUST 2022 COMPANY NUMBER: 5443050

HE CHILDREN’S HOUSE SCHOOL ALANCE SHEET S AT 31st AUGUST 2022 OMPANY NUMBER: 5443050
	Notes	2022	2021
		£	£
FIXED ASSETS
Tangible Assets
School Land, Buildings and Equipment	10	582,676	366,084
		------------------	------------------
Total fixed assets		582,676	366,084
CURRENT ASSETS
Debtors	11	13,578	14,155
Cash at Bank and in Hand		2,123,609	2,219,918
		----------------------	----------------------
Total current assets		2,137,187	2,234,073
LIABILITIES
Creditors: Amounts falling due within one year	12	(464,837)	(317,721)
		----------------------	----------------------
Net current assets		1,672,350	1,916,352
		----------------------	----------------------
Total assets less current liabilities		2,255,026	2,282,436
Creditors: Amounts falling due after more than
one year	13	(168,000)	(144,000)
		----------------------	----------------------
TOTAL NET ASSETS		2,087,026	2,138,436
		----------------------	----------------------
THE FUNDS OF THE CHARITY
General Fund		1,450,905	1,718,907
Designated Funds:
Fixed Assets		582,676	366,084
Bursaries		53,445	53,445
		----------------------	----------------------
TOTAL UNRESTRICTED CHARITY FUNDS	14	2,087,026	2,138,436
		----------------------	----------------------

The financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The financial statements were approved and authorised for issue by the board 13 March 2023 and were signed on their behalf by:

Dawn Brindle Chairman

Danielle Dufey Director

The notes on pages 15 to 22 form an integral part of the financial statements.

THE CHILDREN’S HOUSE SCHOOL STATEMENT OF CASH FLOWS YEAR ENDED 31[st] AUGUST 2022

	Notes	2022	2021
Cash flows from operating activities		£	£
Net cash provided by operating activities		137,463	187,546
		------------------	------------------
Cash flows from investing activities
Interest income		1,911	819
Purchase of tangible fixed assets	10	(235,683)	(89,121)
		------------------	------------------
Net cash used in investing activities		(233,772)	(88,302)
		------------------	------------------
Net decrease in cash and cash equivalents in the	year	(96,309)	99,244
Cash and cash equivalents at 1st September 2021		2,219,918	2,120,674
		------------------------	------------------------
Cash and cash equivalents at 31st August 2022		2,123,609	2,219,918
		------------------------	------------------------
Reconciliation of net movement in funds to net
cash flow from operating activities
Net (deficit) / surplus for the year per SOFA		(51,410)	111,043
Depreciation charge for the year		18,305	22,994
Loss on disposal of fixed asset		786	-
Interest income		(1,911)	(819)
Decrease in debtors		577	27,514
Increase in creditors falling due within one year		147,116	27,814
Increase / (Decrease) in creditors falling due after		24,000	(1,000)
more than one year
		------------------------	------------------------
Net cash provided by operating activities		137,463	187,546
		------------------------	------------------------
Analysis of cash and cash equivalent
Cash in hand		62,963	60,169
Notice deposits		2,060,646	2,159,749
		------------------------	------------------------
Net cash provided by operating activities		2,123,609	2,219,918
		------------------------	------------------------

The notes on pages 15 to 22 form an integral part of the financial statements.

THE CHILDREN’S HOUSE SCHOOL NOTES TO THE ACCOUNTS YEAR ENDED 31[st] AUGUST 2022

1. ACCOUNTING POLICIES

a) Basis of Accounting

The financial statements are prepared under the historical cost convention. The format of the financial statements has been presented to comply with the Companies Act 2006, FRS102 The Financial Reporting Standard applicable in the UK and Ireland and the Statement of Recommended Practice Accounting and Reporting by Charities (“SORP 2015”) (Second Edition, effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS102.

General information

The Charity is a company limited by guarantee, incorporated in England and Wales (company number: 5443050) and a charity registered in England and Wales (charity number: 1113285). The Charity’s registered office address is: 77 Elmore Street, London, N1 3AQ

Going concern

Having reviewed the funding facilities available to the Charity together with the expected ongoing demand for places and the Charity’s future projected cash flows, the Trustees have a reasonable expectation that the Charity has adequate resources with which to continue its activities for the foreseeable future and consider that there are no material uncertainties which would cast doubt over the Charity’s ability to continue as a going concern. Accordingly, they continue to adopt a going concern basis in preparing the financial statements as outlined in the Statement of Trustees’ Responsibilities on page 8.

Significant judgments and sources estimation uncertainty

In the application of the accounting policies, Trustees 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.

The only significant judgement and estimate made by the Trustees is deemed to be in relation to the estimated economic useful life of tangible fixed assets which is reflected in the depreciation rates applied and are discussed below in accounting policy h.

The following principal accounting policies have been applied:

b) Income

i. School Fees receivable and similar income are accounted for in the period in which the service is provided. Fees receivable represent fees less bursaries and allowances and other income derived from the School’s continuing activities.
ii. Registration fees are non-refundable and are credited to income when received.
iii. Fee Deposits are included as a liability until refunded or, on ceasing to be refundable, are credited to income. Advance fees are credited to income as and when they fall due.

c) Donations and grants

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

THE CHILDREN’S HOUSE SCHOOL NOTES TO THE ACCOUNTS YEAR ENDED 31[st] AUGUST 2022

d) Income from other trading activities

Fundraising income, including income from the annual auction event, is recognised in the period in which the goods are sold or the services are provided.

e) Investment income

Investment income from bank balances is accounted for on an accruals basis.

f) Expenditure

Expenditure is recognised as soon as the related liability is incurred and has been classified under headings that aggregate all costs relating to that category. Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure. Value added tax (VAT) irrecoverable is included in the relevant costs.

i. Employment benefits, including holiday pay, when applicable, are recognised in the period in which they are earned. Termination benefits, when applicable, are recognised in the period in which the decision is made and communicated to the relevant employee(s).
ii. Expenditure on raising funds comprises fundraising costs and finance costs.
iii. Expenditure on charitable activities comprises expenditure directly related to the provision of education and administrative support costs and costs relating to the governance of the charity.
iv. School support costs comprise the salary cost of administrative staff, other associated overheads and depreciation attributable to these activities.
v. Governance costs include strategic planning for its future development, auditors’ remuneration, certain legal costs and all costs of complying with constitutional and statutory requirements, such as costs of Board meetings and of preparing the statutory accounts.

g) Funds

General funds comprise the accumulated surplus or deficit from the Statement of Financial Activities which is not restricted nor designated funds. They are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Designated funds comprise funds that have been set aside for specific purposes at the discretion of the Trustees. The purpose and use of the designated unrestricted funds are set out in the notes to the accounts.

h) Tangible Assets and Depreciation

i. The freehold property was originally stated at a valuation made on 31 August 1995 within the original charity, The Children’s House School. The incorporated charity has inherited this valuation which, in accordance with then current transitional arrangements under FRS 15, has not been updated. The Charity has not taken advantage of the provisions in FRS 102 to revalue the freehold property.
ii. New buildings and extensions to existing buildings together with any furniture and equipment purchased are included at cost.
iii. Assets with a cost of £500 or more are capitalised
iv. Depreciation is provided on all tangible fixed assets retained for use by the School at rates calculated to spread each asset’s depreciable value evenly over its expected useful economic life as follows:

Depreciation is not provided on capital work in progress until the assets are in use. Freehold land is not depreciated.

THE CHILDREN’S HOUSE SCHOOL NOTES TO THE ACCOUNTS YEAR ENDED 31[st] AUGUST 2022

(h ) Tangible Assets and Depreciation (continued)

v. The carrying values of tangible fixed assets are reviewed for impairment in accordance with the requirements of FRS102.

Freehold Land and Buildings over 100 years on cost of freehold building Property Improvements Over 4-100 years Fixtures & Fittings - Freehold various rates, according to each individual asset Leasehold Property over the period of the lease Leasehold Property Improvements over the remaining period of the lease Fixtures and Fittings – Leasehold over the remaining period of the lease Furniture & Equipment over 4-10 years

i) Financial Instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised with the exception of investments which are held at fair value. Financial assets held 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 social security and other taxes and provisions.

i. Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

ii. Cash at bank and in hand

Cash and cash equivalents includes cash in hand, deposits held at banks and, when applicable, other shortterm highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities.

iii.

Creditors and provisions

Creditors and provisions are recognised where the School has a present legal or constructive obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

j)

Pension Schemes

Prior to the commencement of auto enrolment on 1[st] November 2015, the charity offered a defined contribution, stakeholder pension scheme to eligible staff. The assets of this scheme are held separately from those of the charity. Following the introduction of auto enrolment this scheme is now a closed scheme to new members and staff who joined after this date have been enrolled into the People’s Pension Scheme, also a defined contribution scheme. Pensions costs charged in the Statement of Financial Activities represent the contributions payable into both schemes by the Charity during the year.

k)

Operating Leases

Rentals paid under operating leases are charged to income on a straight line basis over the lease term. Where applicable, benefits received and receivables as an incentive to sign an operating lease are similarly on a straight line basis over the lease term.

THE CHILDREN’S HOUSE SCHOOL NOTES TO THE ACCOUNTS YEAR ENDED 31[st] AUGUST 2022

2.	SCHOOL FEES RECEIVABLE
		2022	2021
		£	£
	Gross fees receivable	1,431,708	1,434,838
	Less:
	Bursaries and other awards	(23,614)	(12,216)
		----------------------	----------------------
	Net School fees receivable	1,408,094	1,422,622
		----------------------	----------------------
3.	INCOME FROM ANCILLARY TRADING
		2022	2021
		£	£
	Forfeited Fee Deposits and Fees in Lieu of Notice	26,270	33,499
	Registration fees	9,800	10,900
	SEN funding from Islington and Hackney	-	8,711
	After school clubs and music lessons	38,028	8,126
		---------------	---------------
		74,098	61,236
		---------------	---------------
4.	FUNDRAISING INCOME
		2022	2021
		£	£
	Annual Auction	15,825	-
	Income From Other Fundraising Events	3,291	2,763
		---------------	---------------
		19,116	2,763
		---------------	---------------

5. GRANTS AND DONATIONS

The Children’s House School had a holiday from Business rates at 77 Elmore Street from 1 April 2020 to 31 August 2021.

6. OTHER INCOME

HER INCOME
		2022	2021
		£	£
Insurance claim against loss of income	2019-2020	-	100,000
Other		3,417	725
		---------------	---------------
		3,417	100,725
		---------------	---------------

7. TRANSACTIONS WITH RELATED PARTIES

Trustee Remuneration, Expenses and Benefits

No Trustee received any remuneration, expenses or benefits during the period (2021: £NIL).

Related Party Transactions

During the year, the School made a donation to The Friends of Rose Bowl of £3,783 (2021: £NIL) of which Dawn Brindle, a Trustee of The Children’s House School, is a Trustee.

There were no other related party transactions in the year or prior year.

THE CHILDREN’S HOUSE SCHOOL NOTES TO THE ACCOUNTS YEAR ENDED 31[st] AUGUST 2022

8. STAFF COSTS

. STAFF COSTS
	2022	2021
	£	£
Salaries and wages	995,529	992,073
Social security costs	90,354	84,934
Employer’s pension contributions	43,841	43,974
Other	20,259	18,026
	----------------------	----------------------
	1,149,983	1,139,007
	----------------------	----------------------
Average number of employees on a headcount basis during the year:	No.	No.
Teaching	27	31
Administration	4	4
Domestic	2	2
	------	------
	33	37
	------	------
	2022	2021
	£	£
Aggregate employee benefits for key management personnel (page 1)	308,328	293,201
	----------------------	----------------------

Two employees had gross remuneration excluding pension contributions in the range of £60,000 - £69,999 (2021: One in the range of £60,000 - £69,999).

9. EXPENDITURE

EXPENDITURE
	Staff Costs	Other	Depreciation	2022 Total
	£	£	£	£
Charitable Activities:
School operating costs:
Teaching costs	957,014	110,924	7,460	1,075,398
Welfare costs	-	9,163	-	9,163
Premises	19,852	171,471	10,513	201,836
Support costs (Governance Costs)	-	15,728	-	15,728
School support costs	173,117	80,132	332	253,581
	----------------------	----------------------	----------------------	----------------------
	1,149,983	387,418	18,305	1,555,706
Cost of Generating Funds
Fundraising for current voluntary	-	2,068	-	2,068
income
Bank charges	-	272	-	272
	----------------------	--------------------	---------------------	--------------------
	-	2,340	-	2,340
	----------------------	--------------------	---------------------	--------------------
	1,149,983	389,758	18,305	1,558,046
	----------------------	---------------------	----------------------	----------------------

All expenditure was met from unrestricted reserves.

Other Disclosures


Other Disclosures	2022	2021
	£	£
Governance Costs include:
Auditor’s remuneration - Audit Fee	12,300	11,100
	------------	-------------

THE CHILDREN’S HOUSE SCHOOL NOTES TO THE ACCOUNTS YEAR ENDED 31[st] AUGUST 2022

9a. EXPENDITURE COMPARATIVE

		Staff Costs	Other	Depreciation	2021 Total
		£	£	£	£
Charitable Activities:
School operating costs:
Teaching costs		990,925	55,226	7,904	1,054,055
Welfare costs		-	6,868	-	6,868
Premises		20,511	160,489	14,679	195,679
Support costs (Governance Costs)		-	28,559	-	28,559
School support costs		127,571	63,682	411	191,664
		----------------------	----------------------	----------------------	----------------------
		1,139,007	314,824	22,994	1,476,825
Cost of Generating Funds
Fundraising for current voluntary		-	-	-	-
income
Bank charges		-	297	-	297
		----------------------	--------------------	---------------------	--------------------
		-	297	-	297
		----------------------	--------------------	---------------------	--------------------
		1,139,007	315,121	22,994	1,477,122
		----------------------	---------------------	----------------------	----------------------
10. TANGIBLE FIXED ASSETS				Assets
	Freehold	Leasehold	Furniture and	under
	Property	Property	Equipment	Construction	Total
	£	£	£	£	£
COST/VALUATION
At 1 September 2021	429,876	365,184	150,931	81,939	1,027,930
Additions	-	28,850	21,839	184,994	235,683
Disposals		(9,186)		(786)	(9,972)
	------------------	-----------------	----------------	----------------	-----------------
At 31 August 2022	429,876	384,848	172,770	266,147	1,253,641
	------------------	----------------	----------------	----------------	-----------------
DEPRECIATION
At 1 September 2021	170,073	361,034	130,739	-	661,846
Charge for the year	8,479	1,419	8,407	-	18,305
Disposals		(9,186)			(9,186)
	------------------	-----------------	----------------	----------------	-----------------
At 31 August 2022	178,552	353,267	139,146	-	670,965
	-----------------	----------------	----------------	----------------	-----------------
NET BOOK VALUE
At 31 August 2022	251,324	31,581	33,624	266,147	582,676
	------------------	------------------	---------------	---------------	------------------
At 31 August 2021	259,803	4,150	20,192	81,939	366,084
	------------------	------------------	---------------	---------------	------------------

THE CHILDREN’S HOUSE SCHOOL NOTES TO THE ACCOUNTS YEAR ENDED 31[st] AUGUST 2022

11. DEBTORS		2022	2021
		£	£
Fee debtors		2,230	-
Prepayments and accrued income		11,348	14,155
		----------------	----------------
		13,578	14,155
		----------------	----------------
12. CREDITORS amounts falling due within one year		2022	2021
		£	£
Fees in advance		337,883	203,040
Fee deposits		34,000	42,000
Other taxation and social security costs		23,983	24,262
Professional fees		11,655	14,700
Sundry creditors and accruals		57,316	33,719
		------------------	------------------
		464,837	317,721
		------------------	------------------
13. CREDITORS amounts falling due after more than	one year	2022	2021
		£	£
Refundable fee deposits		168,000	144,000
		------------------	------------------
14. UNRESTRICTED FUNDS	At		At
	1 September	Net	31 August
	2021	Movement	2022
	£	£	£
General Fund (Free	1,718,907	(268,002)	1,450,905
Reserves)
Designated Funds:
Fixed assets	366,084	216,592	582,676
Bursaries	53,445	-	53,445
	----------------------	------------------	----------------------
	2,138,436	(51,410)	2,087,026
	----------------------	------------------	----------------------
14a. UNRESTRICTED FUNDS COMPARATIVE	At		At
	1 September	Net	31 August
	2020	Movement	2021
	£	£	£
General Fund (Free	1,673,991	44,916	1,718,907
Reserves)
Designated Funds:
Fixed assets	299,957	66,127	366,084
Bursaries	53,445	-	53,445
	----------------------	------------------	----------------------
	2,027,393	111,043	2,138,436
	----------------------	------------------	----------------------

The designated fixed asset fund reflects the charity’s assets which are invested in the fixed assets of the School. The Trustees have also set aside funds from free reserves for the funding of in-year bursaries for families within the School experiencing hardship, where the need arises. The Trustees may alter the amounts allocated to various funds at their discretion in accordance with their custodial duties.

THE CHILDREN’S HOUSE SCHOOL NOTES TO THE ACCOUNTS YEAR ENDED 31[st] AUGUST 2022

15. CORPORATION TAXATION

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to extent that these are applied to its charitable objects.

16. CAPITAL AND OTHER COMMITMENTS

The School had capital commitments of £264,731 at 31[st] August 2022 (2021: £NIL).

The School had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:

	2022	2021
Rental of Upper School Premises	£	£
Under one year	100,000	75,000
Later than one year and not later than five years	201,083	218,750
	------------------	------------------
	301,083	293,750
	------------------	------------------
Other operating leases
Under one year	16,435	-
Later than one year and not later than five years	54,999	-
	------------------	------------------
	71,434	-
	------------------	------------------

17. MEMBERS’ LIABILITY

The liability of Members, in the event of a winding up, is £1 each.