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2020-07-31-accounts

THE NORTH LONDON COLLEGIATE SCHOOL (Charity Number 1115843) (Company Number 2818422)

ANNUAL REPORT & ACCOUNTS

YEAR ENDED 31 JULY 2020

THE NORTH LONDON COLLEGIATE SCHOOL ANNUAL REPORT & ACCOUNTS FOR THE YEAR ENDED 31 JULY 2020

CONTENTS PAGE

REPORT OF THE TRUSTEES 3
(INCORPORATING GOVERNORS REPORT AND THE STRATEGIC REPORT)
Including:
GOVERNORS 5
KEY MANAGEMENT TEAM 6
ADVISORS 7
PUBLIC BENEFIT
 9
STRATEGIC REPORT
 12
STATEMENT OF GOVERNORS RESPONSIBILITIES 20
INDEPENDENT AUDITOR’S REPORT 21
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 23
BALANCE SHEETS 24
CASH FLOW STATEMENT 25
NOTES TO THE FINANCIAL STATEMENTS 26 - 43

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THE NORTH LONDON COLLEGIATE SCHOOL REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

The Governors submit their report and the audited financial statements for the year ended 31 July 2020.

STRUCTURE, GOVERNANCE AND MANAGEMENT

THE CHARITY AND ITS STRUCTURE

The School is vested in a company limited by guarantee, incorporated in England (The North London Collegiate School company number 2818422), which is a registered charity (charity number 1115843). The company is constituted by its Memorandum and Articles of Association. The Memorandum sets out the objects and powers of the Company and its constitution and the Articles regulate the governance of the Company and its internal procedures.

The objects (“the objects”) for which the Charity is established are to advance the education of pupils by the provision of a day and/or boarding school (“the School”) in or near the London Borough of Harrow and by ancillary or incidental educational activities and other associated activities for the benefit of the community.

GOVERNORS

Recruitment and succession planning

The School’s Constitution provides for between 11 and 21 Governors who are eligible to serve for a maximum of ten years. There are currently 15 Governors. The Governors are the trustees of the charity and Directors of the company.

The Nominations Committee of Governors considers impending retirements, identifies the skills needed on the Governing Body, seeks suggestions for new candidates, conducts interviews, and makes recommendations to the Governing Body for the election of new Governors.

Elected Governors serve for 5 years before standing for re-election. There is normally a limit of 10 years’ service for all Governors except officers (Chairman, Vice-Chairman, Treasurer and Chairman of Finance & Estates). Officers are elected for terms of 5 years.

Induction

An induction programme is followed for newly appointed Governors during which they will be invited to visit the school and be provided with key information.

The induction will include sufficient information so they can make a reasonable contribution to the school from the start. It should reduce the time spent in the initial learning curve and informs new Governors on what they need to know about in general and also specifically. This includes:

A Governors’ handbook is issued to each new Governor documenting the above.

Training

The ISC produces an excellent guide outlining the good practice for the Governors of Independent Schools, ‘Guidelines for Governors’, which is issued to each new Governor as part of the induction process. Training on Safeguarding and Safer Recruitment is made available to all Governors.

Further support and training is encouraged by:

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REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

THE NORTH LONDON COLLEGIATE SCHOOL

Governance

NLCS is governed by its Articles of Association. The strategic objectives of the School are reviewed annually with the Executive team, and there is an annual full day Governors’ Conference which reviews in depth specific elements of the strategy. The performance of the School against its annual objectives is reviewed at termly Governing Body meetings and Governors’ sub-committees. Additionally, our subsidiary companies also have strong Boards with clear objectives, and clear reporting frameworks into the Governing Body. The School keeps its mix of Governors under constant review to ensure that we have the right skill sets to contribute to the Charity’s identified goals, to provide challenge to the Executive team and to hold them to account. The School meets a substantial portion of the recommended practice in the Charity Commissioners Governance Code dated 13 July 2017. The code has been provided to and reviewed by Governors, which has resulted in a decision by the incoming Chair of Governors to hold a strategic review of Governance in February 2021. In addition, the Committees have also reviewed and updated their terms of reference.

SUBSIDIARIES

The School has a number of wholly owned trading subsidiaries which are incorporated in the UK. The companies donate their taxable profits to the School. Summaries of the results of the trading companies are shown in Note 13

Canons Enterprises Limited operates the Sports Centre and Swimming Pool, and generates external income from gym memberships and swimming lessons.

Canons Transport Limited operates the School minibuses on behalf of the School, and was set up to improve the recovery of VAT incurred in the operation of the minibuses.

NLCS Enterprises Limited operates the franchise relationship with the company that operates the NLCS franchise in Jeju, Korea.

NLCS International Limited was set up to act as a holding company for the franchise companies. It owns the shares of NLCSE Dubai, NLCSE Singapore, NLCSE Thailand and Canons Park Consulting.

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THE NORTH LONDON COLLEGIATE SCHOOL REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

GOVERNORS

Chairman Mr P D Needleman (1) (5) (Acting Chair from 26[th] June 2019 to 30[th] June 2020) Mr R C A Hingley (1) (6) (Appointed 30[th] June 2020) Vice Chairman Mrs S Carter (1) (4) (5) Chairman Finance & Estates Mr P Linthwaite (1) (5) Mrs S Dar (2) (7) (Appointed 30[th] June 2020) Mrs E Davis (2) (4) (5) Prof A Emmanuel (3) Dr A Fox (2) (4) (Resigned 30[th] June 2020) Ms V Godfrey (2) (6) Ms R Herdman-Smith (2) (7) Mr J Herlihy (6) Mr S Jaffe (1) (6) Ms C Marten (3) (7) (Appointed 30[th] June 2020) Dr D Toh (1) (3) Dr A Weller (3) (6 As observer) Professor B Young (3) (7)

The Governors, who were also Trustees of the Charity and Directors of the Company, who served during the year 2019 - 2020, and up to the date the accounts were signed, are shown above.

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THE NORTH LONDON COLLEGIATE SCHOOL REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

SENIOR TEAM

(Key management personnel currently and throughout the year, except where shown)

Headmistress Mrs E S Clark Chief Operating Officer Mr I A Callender Deputy Head (Curriculum) Mr P C Dwyer (Resigned 31[st] August 2020) Ms C A Hitchen (Appointed 1[st] August 2020) Deputy Head (Pastoral) Dr H Bagworth-Mann Head of Junior School Mrs J M Newman Director of Studies and Administration Mr M Burke Director of Development & Communications Ms K M Doyle (Resigned 21st September 2020) Director of Human Resources Mrs H Kuczerska (Appointed 1[st] October 2020)

Registered Office and Principal Office: Canons, Canons Drive, Edgware, Middlesex HA8 7RJ

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THE NORTH LONDON COLLEGIATE SCHOOL REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

ADVISORS

Bankers: Barclays Bank Plc
Barnet & Hampstead Business Banking
PO Box 12820
1250 High Road
Whetstone
London
N20 0WE
Solicitors: Farrer & Co
66 Lincoln’s Inn Fields
London
WC2A 3LH
Veale Wasborough
Orchard Court
Orchard Lane
Bristol
BS1 5DS
Auditor: Crowe U.K. LLP
55 Ludgate Hill
London
EC4M 7JW
Investment Advisers: BlackRock
Drapers’ Gardens
12 Throgmorton Avenue
London
EC2N 2DL
CCLA Investment Management Ltd
Senator House
85 Queen Victoria Street
London
EC4V 4ET

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REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

THE NORTH LONDON COLLEGIATE SCHOOL

OBJECTIVES AND ACTIVITIES

AIMS AND VALUES OF THE SCHOOL

North London Collegiate School has an extraordinary and pioneering history in women’s education. The first academic girls’ day school in the country to offer the same educational opportunities as those offered to boys, welcoming students from all religions and backgrounds. For over 170 years, NLCS has produced generation after generation of positive, articulate, confident and inspirational leaders in the arts, sciences, politics and business; with many alumnae making an important mark on the world.

NLCS has an outward looking, internationalist perspective that is unique in comparison to many other schools; indeed, we were the first leading girls’ day school in the UK to establish an international sister school. Our global family of schools includes branches in Jeju, Dubai and Singapore, (providing outstanding opportunities for staff and students to share ideas and make connections).

Students from NLCS achieve remarkable academic results. We are consistently ranked among the top schools in the country in the UK league tables, and we are among the world’s most successful International Baccalaureate Diploma schools, with an average score of 41 points. Our students gain entry to the world’s top universities, with a growing number choosing to continue their studies at Ivy League and equivalent institutions in the USA.

Our strategic mission is to ‘ provide a pioneering and ambitious academic education to enable every individual student to thrive in a dynamic and rapidly changing world’.

The fundamental aims and values of the School inform and guide everything the School does. They are made explicit for parents in the prospectus and are elaborated in the staff handbook. A review of the School in 1997, 2002, 2008, 2013, 2017 and 2019 inspections as well as parent and pupil surveys have confirmed that these values are widely appreciated and shared by all sections of the School community. Strategies to deliver our aims and values are included in the School’s 5 Year Strategic and Annual Development Plans which are updated annually and approved by the Governors. Our values are timeless and enduring, and they define well the broad and balanced approach to education that is the hallmark of North London Collegiate School. They are as follows:

Our values reflect the principles with which we approach our work:

PRINCIPAL ACTIVITY

The principal activity of the Charity is the provision of an academic education to pupils between the ages of 4 and 18, who come from a range of social backgrounds and for whom entry at the age of 4, 7, 11 and 16 is by competitive examination.

The largest proportion of the fee income is expended on the salaries of well qualified staff; allocation is also made for the upkeep of premises and the provision of the equipment to maintain an environment that promotes good teaching and learning. The Governing Body is responsible for determining the aims and overall conduct of the School. Governors approve strategic plans, set overall objectives (including financial), review their implementation, and are kept informed of other associated planning issues.

Each year Governors review the plans and objectives, and these are published in the School’s ‘Development Plan’. The Development Plan sets out the School’s objectives for the year and how it will determine its success.

The Headmistress with the support of her Senior Team (ST) is responsible for the implementation of the strategic plan and the operational management of the School, offering guidance to the Governors on the issues arising from this responsibility.

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REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT) PUBLIC BENEFIT

THE NORTH LONDON COLLEGIATE SCHOOL

The Governors, in the course of administering the Charity, have paid due regard to the published Charity Commission guidance on the operation of the Public Benefit requirement. “The School is a Public Benefit Entity as defined by FRS102” This is demonstrated by the following activities of the Charity:

Bursaries

The total value of bursaries in the year was £1,337,525 (2019: £1,400,535) representing a total of 8.5% (2019: 8.8%) of the Senior School’s tuition fees, and 6.4% (2019: 6.6%) of the School’s total tuition fee income. 74 pupils (2019: 77) in the Senior School received assistance with fees through means tested bursaries. 58 of these pupils (2019: 53) benefitted from a full remission of fees. The level of awards from the Bursary Fund was assessed on the basis of the parents' financial circumstances. Our medium term target is to award bursaries equivalent to 10% of Senior School tuition fees. A key challenge for us is to attract more bursary applicants from the wider community. To raise awareness of our bursaries available we have joined the London Fee Assistance Consortium.

COVID19 Funds

Due to the lockdown the School had to teach all its pupils online during the summer term. In recognition of this, the School provided a 10% fee discount to all parents on the summer term fees, additionally a further 5% rebate was given in July as a result of further savings being realised. The Governors have also agreed to holding fees flat for the 2020/21 academic year. In addition, Governors approved two COVID funds, a hardship fund of £750,000, to ensure that no student had to leave the School due to their parents running into financial difficulty as a result of the pandemic. At the end of the Summer Term, the School had approved 16 awards, in respect to the summer fees, with a value of £49,994. This hardship fund will stay in place for the duration of the pandemic.

The second fund is a COVID support fund of £1.5 million - the purpose of this fund is to provide general support to parents more broadly in the form of tuition fee rebates as well as to cover unbudgeted costs the school incurs due to COVID – e.g. additional hygiene costs as a result of Government social distancing measures; increased teaching cover; unforeseen transportation costs.

Partnership Activities

NLCS is involved in a range of partnership activities with schools in the maintained sector. The key areas for such activity are outlined below. In the coming years we are hoping to concentrate even further on offering comprehensive support for the development of teaching and learning in local schools.

a) Subject based collaboration and symposia for students:

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THE NORTH LONDON COLLEGIATE SCHOOL

Please note that the events above are specific to the schools mentioned, and are organized alongside staff and students at the given schools by the teaching staff and Senior Team at NLCS. Not listed are the variety of speaker events and conferences to which we invite and host a number of schools in the maintained sector. Such schools include those listed above, as well as the Ark Academy London, Christ the King, Christ College, Fortesmere School, Dr Challoner’s and John Lyon.

b) Tournaments and events

c) Staff Development and Teacher training

Prince’s Teaching Institute, Chartered College of Teaching and other activities

The Prince’s Teaching Institute (PTI) is an independent educational charity created by the Prince of Wales and founded by the late Mrs McCabe (the School’s Headmistress up to 2017). It believes that all children, irrespective of background or ability, deserve a rich subject-based experience at school - both within and beyond the examination curriculum.

Over the last few years we have seen an increase in opportunities for staff involvement in a national education policy debate through contributions to the Government’s National Curriculum Review and in discussion of the development of the Chartered College of Teaching (with a number of staff now members and fellows). Members of NLCS staff, working with counterparts from schools in the maintained sector, were involved in the planning and design of subject courses for the Prince’s Teaching Institute (PTI), representing Geography, Modern Languages, Latin, English, History, Art, Music, Maths and Science. The PTI now runs a specific residential course for Primary State School Head teachers providing mentors and facilitators for specific projects to be run for an academic year in the school such as compiling data to analyse the effect of Read Write Inc on the reading comprehension skills of a pupil cohort. The Head of Junior School at NLCS is a course designer of the Primary Leadership course and this year a number of zoom forums have been held to

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THE NORTH LONDON COLLEGIATE SCHOOL

REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT) share good practice and ideas with leaders and teachers in primary schools across the country.

These courses re-emphasise best practice nationally and the importance of subject enrichment for teachers, and the involvement of NLCS staff has a direct impact on teaching nationally. One colleague is also an Ofqual external expert (in Geography), which further underlines NLCS’ position at the forefront of national education.

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THE NORTH LONDON COLLEGIATE SCHOOL REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

STRATEGIC REPORT: Review of 2019-2020 Academic Year

This Academic Year has presented a series of and in some cases unprecedented challenges to the School, whose impact will carry forward into following years notably the COVID19 pandemic and the Black Lives Matter movements. Despite this the School has continued to flourish during the lockdown benefitting from the adaptability of our staff and students, the support of parents and Governors, and the strength of the School’s deep seated and long-standing educational values.

In December 2019, the School passed a full ISI inspection and was rated ‘Excellent’.

Academic Excellence

This has been another outstanding year for IB with students scoring an average 41.3 points placing us amongst the most successful IB schools in the World. Three students gained a maximum 45 points score, something only 200 pupils out of 160,000 worldwide achieve. At Pre-U and A level our students achieved an excellent 79% A or A, this is in line with our 5 year average. 50% of entries were graded at A (or equivalent).

These results enabled students to gain places at leading universities, and matching recent studies which found North London to be the most successful school in the UK at placing students at highly selective institutions; this year this included 30 students gaining places at Oxford, Cambridge and Ivy League universities.

At GCSE there was an outstanding set of results. 76% of entries were at Grade 9, 96% achieved grades 8/9, and all but one entries were graded 7-9.

Since September 2017, all subjects in the Sixth Form are studied in a linear fashion, culminating in final exams for students after two years. The extension opportunities afforded to students thanks to the lack of external exams in Year 12 allows for a renewed focus on the development of scholarship that will serve them well at university.

In the Lower School, teaching by subject specialists has increased in order to encourage the girls to develop a passion for, and deeper understanding of their subjects, and to prepare them well for the Senior School. Techniques to develop selfassurance as well as perseverance in their learning have been well-received by girls across the Junior School.

Inspiring a love of academic subjects

The School is guided by the desire to inspire pupils with a love of academic subjects in a strong culture of scholarship and high expectations of the potential of every individual. A scholarly and vibrant atmosphere has been created, so that pupils and staff can give their best and flourish, through subject teaching that inspires and stretches, and through a rich programme of activities outside the classroom to encourage pupils to try themselves out in a variety of ways, and in doing so developing a belief in themselves and their ability to achieve their dreams.

The School has a strong commitment to building each girl’s confidence so she feels happy, self-confident and valued as a person. One of the strengths of the environment at North London Collegiate is that it empowers young women to take charge of their destiny and, in the words of a recent educational inspection report to “run their own race”.

The range of subjects offered within the curriculum is broad and challenging, and students have the opportunity to study International Baccalaureate Diploma as an alternative to A levels in the sixth form. All our students are expected to develop independent research skills during their school career, as well as to engage with confidence in academic debate and scholarly discussions among each other and with students from a range of partner schools.

During the course of the year, we appointed a new Director of Engineering & Design, who is modernizing our curriculum in this area, and is working with our Director of STEAM to develop cross-curricula initiatives to prepare students for careers that need individuals who are excellent at problem solving and confident in operating in a multi-disciplinary world.

Outstanding Pastoral Care & Well-being

We have invested in ensuring that we are at the forefront of the well-being and mental health agenda, as well as continuing to maintain a diverse community reflective of the London population. Despite the strength of the school’s pastoral care of the students, the School has to work on the development of resilience and confidence in a few students, enabling them to take the demands of preparing for and sitting examinations in their stride, helping them to see setbacks as a challenge they have the confidence and ability to overcome, and failure as something to learn from.

Extracurricular, Enrichment & Student Experience

Developing students’ oral confidence and critical reasoning skills remain an important focus: Girls are encouraged to learn

to speak succinctly with the minimum of notes, and use technical vocabulary without embarrassment. Our enrichment programme has a scholarly focus, encouraging students to challenge received thinking, explore concepts and theories

beyond the formal curriculum, and to develop skills and attributes that will enhance their understanding or interpretation of intellectual ideas. In addition, our students benefit from an individualised careers programme, offering advice and support in a range of areas; from preparation for UK and US university entrance, to careers fairs and advice on other, more

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REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT) specialised, career pathways.

Attracting and retaining the best teachers

The School is committed to attracting and retaining the most able teachers. The school aims for teaching that inspires a scholarly approach in students and develops their academic confidence and resilience. Teachers have been working to ensure girls are stretched and inspired to excel in knowledge, analysis and argument, offering an education that extends far beyond the functionality inherent in any system of public examinations.

Our teachers utilise their passionate commitment to subject knowledge and academic scholarship to inspire and engage our students and to help them in turn to develop their own interests and intense curiosity. Students are encouraged to challenge preconceived ideas, confront assumptions and fallacious arguments and to test orthodox reasoning in order to develop fresh ideas and new perspectives.

Preparing for a changing world

All schools in the independent sector face issues of affordability. This means expenditure needs to be focused carefully on the essential needs of pupils, but also to directing fundraising and overseas franchising strategies in order to fund a greater number of bursaries.

The latter part of the year has been dominated by the COVID-19 pandemic, which has necessitated the School to adapt its teaching rapidly to a remote online environment. The investment in our IT infrastructure over the last 18 months played a significant part in enabling us to provide a full curriculum, coupled with our staff’s ability to adapt their teaching to the new environment.

The pandemic is compounding the financial pressures on the School in the form of the uncertain impact of Brexit on fee affordability and taxation, the 43% rise in employer contributions into the Teacher’s Pension Scheme and the on-going necessity to adequately manage our staffing resources, whilst investing in the quality and breadth of educational offering at the School. We have also continued to update our policies and documentation in the light of legal, data protection and Inspection demands.

Priorities identified in the 2019-2020 Development Plan:

1. Academic Excellence

Objectives : To teach with ambition and rigor to inspire all students in their pursuit of academic excellence; to ensure all students achieve exceptional results.

Actions

Our focus this year has been on departmental curriculum area reviews to ensure that students perform consistently highly in public examinations. Despite the fact that we scored extremely well in this year’s examination process and ISI rating us as excellent in terms of students’ academic and other achievements, this will remain an ongoing objective. In addition, we have spent a lot of time establishing consistency in terms of the way in which teachers use assessment to inform planning and delivery of lessons. The school adapted swiftly to the online environment during the COVID lockdown and was able to deliver a high standard of interactive lessons through the Microsoft Teams platform, also ensuring that exam years did not lose ground.

2. Outstanding Pastoral Care and Well-Being

Objectives: To ensure that every student is well-known and cared for, and that everyone matters; to encourage students to have the confidence to aspire, along with an appropriate sense of perspective and resilience when faced with challenges or disappointments; to encourage all students to be self-disciplined, to show courtesy and kindness toward others and become more outward looking

Actions

Pastoral care has continued to be a key focus of our School development this year, and we were delighted that ISI rated us ‘excellent’ in our pastoral provision. We introduced the CPOMS system to enable us to record pastoral incidents more effectively, which has become all the more important as we have helped students navigate the pandemic lockdown and subsequent return to school. Significant emphasis continues to be placed on wellbeing and confidence, with an exciting programme of speakers and events to support themes such as Mindfulness, Kindness, self belief and character building, mental health, and consideration for others, which received notable impetus due to the Black Lives Matter movement. The importance of PE and physical activity to mental and physical health has also been another focus this year, with a wide range of activities on offer and in the Junior School an emphasis on the ‘Daily Mile’. The Pastoral Team also continued its commitment to the individual support of students.

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REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT) 3. Staff Development

Objectives: To recruit and retain the best staff; to ensure staff are committed to extending their academic expertise, and for communicating this in a manner that engages students and ensures achievement at the highest levels.

Actions

Staff Development has been dominated by the extraordinary changes that have been made to the IT provision in the School accelerated by the threat of COVID-19. We have continued to develop our STEAM initiatives in the School and welcomed a new Head of Engineering & Design to re-shape our traditional Design Technology curriculum in the Middle School. A new Senior School Office was developed to provide an improved level of support to teachers.

4. Key future developments

Objectives: Maintain the School’s diversity and accessibility to the brightest pupils. Provide the best resources for the School and the changing demands of the curriculum by investing in our IT architecture, our Site Masterplan and To minimize our carbon footprint and improve our sustainability

Actions

We submitted a planning application for our site masterplan and phase 1 IDEAS hub toward the end of the year, which, if approved, will provide a huge boost to our STEAM and Design Engineering curricula.

A major theme throughout the year has been the investment in our IT infrastructure, which has been a critical enabler to us being able to deliver an effective online teaching experience for our students during lockdown.

We have continued to strengthen the site security with the introduction of door access controls and CCTV upgrades

NLCS’s Marketing and Development department have been working hard to launch the fundraising campaign for our building plans and has continued to push the Bernice McCabe Bursary Fund. A significant effort has been put into marketing bursaries through online media, and as part of the London Schools Consortium Bursary campaign on the tube and in the press.

Applications for places at all levels of the School remain excellent, and our independent testing arrangements at 11+ continue to be successful in attracting high numbers of able applicants. Nevertheless, the School is not complacent about attracting the brightest pupils – we have reviewed our marketing and admissions strategies placing a greater focus on social media and developing new geographical markets.

We have continued to develop our partnerships with key businesses and educational institutions. This includes support from the Bank of America Merrill Lynch for our economics and financial education curriculum, as well as the Nigel and Lucy Wray Foundation for our Elite Athlete Training Programme. This year we have welcomed students from QE Boys’ School, The Michaela School, London Academy of Excellence in Tottenham and The Sacred Heart School, in addition to our partner schools in the independent sector.

NLCS International continues to provide invaluable benefits to the London school both financially, culturally and pedagogically. It is an important cornerstone of our strategy to increase the number of bursaries available at NLCS. Both NLCS Jeju and Dubai have continued to build their school rolls successfully, and NLCS Singapore opened in August 2020.

The investment in “branch” schools in the UK and overseas, culture of fundraising through the School’s development team, and a strong focus on cost competitiveness, underpins the School’s strategy to ensure it can generate the income to sustain its academic strength and the quality of facilities, whilst maintaining the social mix and ensuring an accessibility to those parents who cannot pay the full fees.

5. Review of priorities

The School’s vision and strategy, priorities and action plan are regularly reviewed at Governing Body meetings. A Governors’ Conference is held annually to review specific areas of the long term School strategy. The School provides an evaluation report at the end of each academic year, which assesses progress against our priorities and KPIs. This is reviewed by Governors prior to circulation to the Parent Body. In addition, an annual parents meeting is held to present priorities and other key developments at the School and in order for parents to have a forum in which to question the School’s leadership team and the Chairman of Governors.

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REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

FINANCIAL REVIEW OF THE YEAR

Operating Results

The total income for the year was £25.4m (2019: £25.8m) and expenditure £23.2m (2019: £23.3m) resulting in an operating surplus of £2.2m (2019: £2.5m). Following the impact of COVID we transferred £2.25m from the General Fund to create two designated COVID funds. £750k has been designated as a COVID Hardship fund and £1.5m designated as a COVID support fund.

Pupils

There were 319 pupils in the Junior School (2019: 316) and 790 in the Senior School (2019: 787), which included a Sixth Form of 234 (2019: 237). Entry to the School is by competitive examination at ages 4, 7, 11 and 16, and demand for places at all these ages remained intense.

Fees

The fees for the year were £17,262 (2019: £16,923) in the Junior School and £20,430 (2019: £20.028) in the Senior School. Information on Bursaries is shown in the section above on Public Benefit.

Scholarships

Academic scholarships are held by 28 pupils (2019: 34) totalling £197,490 (2019: £231,323) representing 0.92% (2019: 1.1%) of the School's tuition fees. Of these, 4 (2019: 4) also qualified for bursary support. Additionally, the School offers music scholarships.

RESERVES POLICY

Unrestricted Group Reserves total £30.2m, including the Designated Funds of £8.6m. After deducting group tangible fixed assets with a value of £19.9m, free reserves have been calculated at £1.6m.

The School’s investments and cash total £23.1m. A significant part is held to match the longer term liabilities of the Bursary Fund (£6.8m), the Pension Deficit (£5.3m) and Fees in Advance Scheme (£1.7m). The Governors are comfortable with the remaining balance held which is to cover any future COVID 19 risks and to support future capital plans. The Governors have adopted a policy of allowing short-term deposits as long as the amounts held in instant access accounts are forecast to exceed £1m at all times.

The School’s Designated Bursary Fund of £6.8m is maintained at a level equivalent to the cost of supporting 10% of senior pupils on 100% bursaries over the rest of their time at the School. The Governors review policies on the levels of reserves and realisable assets at least annually, with the Finance & Estates Committee reporting to the main Governing Body.

INVESTMENTS

The School’s funds are currently invested by BlackRock and CCLA in companies or collective funds which satisfy the investment manager’s suitability and ethical screening criteria without applying any restrictions imposed by the School. During the year, The School sold its funds with HSBC and re-invested them with BlackRock.

The investment policy remains one of providing long term growth of both capital and income. In particular, the aim is to invest the School’s assets prudently to ensure adequate income is generated to contribute to the funding of bursaries and to do so by providing capital growth at or above inflation, thereby maintaining the capital base of the investment portfolio where possible. The portfolio continues to hold more equities than bonds and generated a total return of 3.2% (2019:10.2%) during the year. The performance of the funds is monitored by the Investment Committee who meet at least once per term.

SUBSIDIARIES

Full details of the trading performance of the subsidiaries is shown in Note 13.

REMUNERATION POLICY

The School conducts pay surveys on a rolling three year basis for staff, including key management personnel (Page 6). Our desired market pay position, salary structures and annual salary awards are agreed by the Governing Body. Our benchmark group is Greater London independent schools with a pupil roll in excess of 600 with less than 20% boarders.

FUNDRAISING

Fundraising at NLCS makes an important contribution to the operation of the school, comprising up to 5% of the operating budget in a normal year. There is a continuing campaign to raise funds for bursaries, as well as a specific capital campaign planned for launch in the near future. The costs of the fundraising department are met by the school rather than taken from the money donated. There are no professional fundraising organisations used and thus no monitoring processes are required. The school has subscribed to the Fundraising Regulator and adheres to the Code of Fundraising Practice when undertaking fundraising activity. Each year, parents whose daughters are leaving are invited to donate their deposits to the Bursary Fund. There were no complaints received by the School in relation to fundraising activity. The school takes its responsibility to anyone who might be vulnerable very seriously and this will continue to be considered in the School’s approach to fundraising activity.

15

REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

THE NORTH LONDON COLLEGIATE SCHOOL

GOING CONCERN

The Governors are of the opinion that the charity has adequate resources to continue to operate for the foreseeable future, being not less than one year from the date of approval of these financial statements. For this reason, the Governors believe it is appropriate to prepare the financial statements on a going concern basis.

Due to the rapid development of the COVID pandemic the Government announced all schools should close from 20[th] March. This coincided with the end of our Spring term, over the Easter break the teaching staff worked exceptionally hard to provide a comprehensive program of online learning, pastoral support and extra-curricular activities. Attendance and engagement have been very high, and feedback from parents has also been extremely positive.

Following the announcement we acted quickly and the following steps were undertaken:

At the end of the year we provided a further 5% fee rebate against the summer term fees as we had realised the identified savings.

In 2020/21 we have reviewed all budgets and identified £440k of savings mainly through the deferment of routine Estates maintenance deferred until future years, these savings will help to offset any additional COVID costs.

We have also created two COVID funds, a Hardship fund to support parents who have been financially impacted and a Support fund to cover all additional COVID costs.

The biggest risk to our income is pupil numbers - we reviewed our three year forecasts and included scenarios which covered both a 5% and 10% drop in student role. To mitigate this risk we have a £5m overdraft facility in place. To date our pupil role has held up.

In addition to the Group’s cash holding, the School’s investments total £18m, sufficient to meet the obligations of the Bursary Fund, Pensions deficit and Fees in Advance totalling £13.2 million, with the balance available to contribute to future capital needs, if required.

The International Schools have all maintained or grown their rolls throughout the pandemic, which is a testament to their academic results and the work being put into grow admissions. This has enabled us to maintain income for bursaries during the pandemic. The continued strength of the Schools will be significantly influenced by how well economies weather the pandemic in the longer term.

PRINCIPAL RISKS AND UNCERTAINTIES: RISK ASSESSMENT FOR THE CHARITY AND ITS SUBSIDIARIES

The Board of Governors is responsible for the management of the risks faced by the School. Detailed considerations of risk are delegated to appropriate Governing Body sub committees and a formal review of the charity’s risk management processes are undertaken on an annual basis.

The Headmistress and her Senior Team are responsible to the Governors for the running of the School and provide regular reports to the Governing Body and Sub Committees. This ensures that Governors, through the appropriate sub committees, are well informed on all financial, operational and strategic matters appertaining to the School. This also enables Sub Committees to evaluate the areas of risk for which they are responsible.

The key controls used by the charity include:

The principal risks facing the School are noted in the table below.

16

THE NORTH LONDON COLLEGIATE SCHOOL

REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT) Through the risk management processes established for the School the Governing Body are satisfied that the major risks

identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Specific Risk Consequence In-place controls and actions
Inadequate safeguarding of
pupils
Harm to pupils

Reputational damage

Allegations against staff
Staff receive annual training

All staff vetted with DBS checks

Safeguarding Governor has an annual
review visit

Improve site security
Deteriorating performance
in academic league and
value added tables
Loss of reputation nationally and
internationally

Fewer applications at 11+ and 16+
Focus on accurate tracking of pupil
attainment

Attract & retain high quality teachers

Rigorous staff & curriculum monitoring
Failure of key IT systems
and breaches of data
protection regulations
Loss of confidence by parents. Staff etc. in IT
systems

Loss of sensitive/key data & disruption to
school activities

Legal action

Inabilityto respond to disasters
Strengthened
IT
department
and
investment in systems, backup

Review adherence to GDPR regularly

Disaster recovery plans in place

Network firewalls and filters kept up to
date
An inability to gain approval
for our site masterplan from
the Local Planning Authority
in a timely manner
Loss of donors and parental confidence

An inability to develop site to meet School's
educational needs

Uncompetitive facilities

Loss of income

Projects become unaffordable
Thorough community, partnership, travel
and sustainability plans

Awareness of local LPA & GLA concerns
and policies.

Use of planning consultants to ensure
applications meet all planning criteria
Changes
in
VAT
and
business rate relief and
pensions contributions
School roll impacted

Fees increased to cope

Reduced ability to attract & retain staff
Stress test school finances

Seek costs reductions

Review ongoing TPS membership

Regular Governance review
A recession caused by the
Coronavirus
pandemic
&
BREXIT
Increase in taxation and unsustainable
pressure on fees

Reduced affordability and loss of pupils

Difficulty in getting finance to fund the
masterplan
Stress testing of finances

Tight budget controls

Emphasis on fundraising

Continued
investment
in
overseas
franchising
Failure to recruit suitable
teachers due to supply
Deteriorating academic results

Increased staffing costs impacts fees
Teacher training

Salary and benefits package

Recruitinghighquality graduates
BAME
issues
cause
reputational damage
Impact on pupil attraction and retention

Pressure externally on the School

Lack of diversity in staff body
Maintain diverse community

Emphasis on staff and student training

Student led societies

HRpolicies on recruitment
Revenue
from
our
International
Schools
is
reduced
due
to
partner
financial
difficulties
or
declines in school roll as a
result of the pandemic
Impact on funding for bursaries in the UK
School
Investment funds in place

Governance of overseas schools

Partnership forums

Commercial agreements with partners

Admissions and marketing teams in each
school

17

REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

THE NORTH LONDON COLLEGIATE SCHOOL

SECTION 172 STATEMENT

The Directors confirm that in accordance with Section 172 (1) of the Companies Act they act in a way they consider would be most likely to achieve the purposes of the Company. In making this assessment the Directors have considered the following:

(a) The likely consequences of any decision in the long term

The long-term sustainability of the operating model is considered by the Directors as set out in the going concern section of the Directors’ Report. Specifically, the Directors consider both short- and longer-term financial projections and the key risks that could negatively impact the sustainability of NLCS. The Directors review management information, budgets, forecasts and cashflow projections on a termly basis.

(b) The interests of the company's employees

Frequent communication with staff has been essential, especially during the lockdown when most staff were working remotely. This has been conducted regularly by teams briefings and staff surveys to gauge wellbeing. Staff who have been furloughed have been contacted by their own line managers. Staff have been kept informed about staffing, financial and strategic issues affecting them and the school.

The Governors receive regular reports on staff matters through the Headmistress’ termly report and personnel committee. All Governors conduct visits to school where opportunity is made for direct staff engagement.

The school has a Support Staff and Teachings Staff committee where employee issues are discussed. These committees make recommendations to the senior leadership team and are charged with communicating to employees at large to canvas opinion. A staff survey in 2020 reported high levels of satisfaction. A diverse programme of well-being activities is available to all staff.

The Company has complied with the UK’s Equality Act 2010 Regulations 2017 that require the publication of information on the gender pay gap for UK employees annually. The 2019 report is available on the website.

(c) The need to foster the company's business relationships with suppliers, customers and others

The charity’s beneficiaries (students and parents) are the focus of all the school’s operations.

A robust and consistent selection policy ensures a diverse and thriving student body that is fully supported throughout their education from reception to external examinations results, enabling admission to all universities and preparing pupils for later life beyond NLCS.

Recruitment of the best teachers and valuing of staff supports the stability and high standard of education.

A clear bursary policy consistently applied to support families who may not otherwise be able to access education at the school. Further details can be found on page 9.

The parent contract forms the basis of the relationship with fee payers. This is reviewed regularly to ensure best practice and then applied fairly and consistently. Parental engagement is maintained through weekly correspondence and termly publications.

All suppliers are treated fairly and promptly with business terms adhered to.

Full details are found in pages 9 -10.

The company has completed the Energy Savings Opportunity Scheme (ESOS) reporting requirements and has reported under the Streamlined Energy and Carbon Reporting (SECR), details on page 19.

The Company’s Bribery Policy, that has been approved by the Governing Body, it sets out the responsibilities of staff to report any incidents or suspicion of fraud, bribery or corruption arising in the course of their work and to cooperate fully with related investigations. The School takes a zero tolerance approach towards fraud, bribery and corruption. The Whistle blowing policy supports staff in this approach.

18

THE NORTH LONDON COLLEGIATE SCHOOL REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

(f) The need to act fairly as between members of the company

All governors and senior staff complete an annual Conflict of Interest declaration. There have been no reported incidents of unacceptable relationships.

STREAMLINED ENERGY AND CARBON REPORT

NLCS has made a commitment to become carbon neutral by 2030 and in 2019 undertook a baseline assessment to quantify the school’s carbon footprint and is now registered with the UN’s Carbon Neutral Now accreditation scheme.

The total energy use by the School during the year to 31 July 2020 for Scope 1 - Direct emissions and Scope 2 – Indirect emissions was 4,222,849 kWh - equivalent to 834 tonnes of CO2e. This represents a significant reduction on the comparative 2019 baseline, but is principally due to the School’s closure from the end of March to the start of May, after which only a limited number of Junior School pupils returned until the start of July.

The School’s principal activities to reduce it energy consumption during the period were to replace some of the singleglazed windows in the Richardson Building and to replace boilers and pool plant in the Canons Sports Centre.

19

THE NORTH LONDON COLLEGIATE SCHOOL REPORT OF THE CHARITY TRUSTEES (INCORPORATING THE GOVERNORS’ REPORT AND THE STRATEGIC REPORT)

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Governors are responsible for preparing the Strategic Report, the Report of the Charity Governors and the financial statements in accordance with applicable law and regulations.

Company law requires the Governors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Governors 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 group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that year.

In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

GOVERNORS’ STATEMENT

Each of the Governors has confirmed that so far as they are aware, there is no relevant audit information of which the charitable company’s auditor is unaware, and that they have taken all the steps that they ought to have taken as a Governor in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

AUDITOR

A resolution for the reappointment of Crowe U.K. LLP will be proposed at the annual meeting for the ensuing year.

The report of the Governors incorporating the Strategic Report is approved by the Board of Governors and signed on behalf of the Governors

.............………………..................................Mr P Needleman 17 December 2020

20

THE NORTH LONDON COLLEGIATE SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME AND EXPEDNITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2020

Opinion

We have audited the financial statements of The North London Collegiate School for the year ended 31 July 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity only Balance Sheets, the Consolidated Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

21

THE NORTH LONDON COLLEGIATE SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME AND EXPEDNITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2020

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 20, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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.

Nicola May Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor London Date: 17[th] December 2020

22

THE NORTH LONDON COLLEGIATE SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME AND EXPEDNITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2020

Note
Income from:
Charitable activities
School Fee Income
Scholarships
COVID Support
COVID Hardship
Bursaries
Net Fee Income
Ancillary Trading Income
(catering and coaches)
Other Income from
operation of School
Other activities
Trading Income from
Subsidiaries
13
Donations and Grants:
Bursaries and
Scholarships
9
Donations and Grants:
Other
9
Investment Income
Total Income
Expenditure on:
Charitable activities
Trading by Subsidiaries
Raising funds
Financing Costs
Total Expenditure
3
Operating Surplus
2020 2019
General Funds
Designated
Funds
Restricted
Funds
Restricted
Building
Funds
Endowment
Funds
Total Funds
Prior Year Total
Funds
£
£
£
£
£
£
£
20,984,276
20,984,276
21,175,592
(222,204)
(41,000)
(263,204)
(293,409)
(329,891)
(329,891)
0
(49,994)
(49,994)
0
-
(980,566)
(347,965)
(1,328,531)
(1,400,535)
20,762,072
(1,360,451)
(388,965)
19,012,656
19,481,648
1,424,087
1,424,087
1,889,225
879,498
879,498
749,835
23,065,657
(1,360,451)
(388,965)
21,316,241
22,120,708
2,905,301
2,905,301
2,463,134
-
401,281
401,281
309,290
67,592
68,758
76,469
212,819
324,698
311,172
233,957
9,903
19,553
574,585
627,713
19,481,648
1,889,225
749,835
22,120,708
2,463,134
309,290
324,698
627,713
26,349,722
(1,126,494)
21,214,504
51,009
1,603,560
234,886
48,387		 81,074
86,372
19,553
59,610
-		 25,410,227
21,325,123
1,603,560
234,886
48,387		 25,845,544
21,224,316
1,718,392
276,198
119,291
23,101,337
51,009
3,248,385
(1,177,503)		 59,610
-
-
21,464
86,372
19,553		 23,211,956
2,198,271		 23,338,197
2,507,347
Net gains on investments
6		 4,775 4,775 1,125,988
Net income
Transfers between funds:
Net movement after
transfers		 3,253,160
(1,177,503)
(3,166,951)
3,165,472		 21,464
86,372
19,553
70,429
(49,397)
(19,553)		 2,203,046
-		 3,633,335
86,209
1,987,969		 91,893
36,975
-		 2,203,046 3,633,335
Actuarial gains/(losses)
on defined benefit
pension schemes
10		 (2,097,000) (2,097,000) (712,000)
Net movement in
funds
Reconciliation of funds:
Total funds brought
forward
Total funds carried
forward		 (2,010,791)
1,987,969		 91,893
36,975
-		 106,046 2,921,335
23,555,705
6,684,489
21,544,914
8,672,458		 129,867
333,817
588,665
221,760
370,792
588,665		 31,292,543
31,398,589		 28,371,208
31,292,543

All amounts relate to continuing operations, and all gains and losses recognised in the year are included above. The notes on pages 26 to 43 form part of these financial statements.

23

THE NORTH LONDON COLLEGIATE SCHOOL CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2020

Note Group 2020 Charity 2020 Group 2019 Charity 2019
£ £ £
FIXED ASSETS
Fixed Assets 5 19,982,788 19,905,854 17,380,747 17,265,847
Investments 6 18,233,472 18,233,674 18,228,697 18,228,900
38,216,260 38,139,528 35,609,444 35,494,747
CURRENT ASSETS
Debtors 7 1,421,212 2,743,926 1,022,558 1,470,873
Cash at Bank and in hand 4,912,572 3,369,025 6,693,819 5,804,675
Current Assets 6,333,784 6,112,951 7,716,377 7,275,548
Creditors
Creditors: Amounts falling due within one year 8 (6,957,770) (6,661,007) (7,448,645) (6,893,920)
NET CURRENT ASSETS (623,986) (548,056) 267,732 381,629
Total Assets less current liabilities 37,592,274 37,591,472 35,877,175 35,876,375
Creditors
Amounts falling due after more than one year 8 (887,685) (887,685) (1,369,633) (1,369,633)
NET ASSETS excluding Pension Liability 36,704,589 36,703,787 34,507,543 34,506,743
Defined Benefit Pension Scheme liability 10 (5,306,000) (5,306,000) (3,215,000) (3,215,000)
NET ASSETS 31,398,589 31,397,787 31,292,543 31,291,743
FUNDS 9
Unrestricted General Funds 23,641,914 23,641,112 24,267,705 24,266,905
Unrestricted Pension Funds (2,097,000) (2,097,000) (712,000) (712,000)
Unrestricted Designated Funds 8,672,458 8,672,458 6,684,490 6,684,490
30,217,372 30,216,570 30,240,195 30,239,394
Endowment Funds 588,665 588,665 588,665 588,665
Restricted Building Funds 370,792 370,792 333,817 333,817
Other Restricted Funds 221,760 221,760 129,867 129,867
TOTAL FUNDS 31,398,589 31,397,787 31,292,543 31,291,743

The notes on pages 26 to 43 form part of these financial statements. The parent charity result for the year ended 31 July 2020 was a surplus of £2,202,387 (2019: £2,589,402) (before gains on investments and actuarial gain/loss).

Approved by the Governors and authorised for issue on 17 December 2020 and signed on their behalf

Director Director P Needleman P Linthwaite

24

THE NORTH LONDON COLLEGIATE SCHOOL STATEMENT OF CASH FLOWS FOR YEAR ENDED 31 JULY 2020

Cash flows from operating activities:
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Income from investments
Movement in Defined Benefit Pension Liability
(Increase)/decrease in debtors
(Increase)/decrease in Intercompany
Increase/(decrease) in creditors
Net cash provided by operating activities
Cash flows from investing activities:
Income from investments
Purchase of property, plant and equipment
Proceeds from sale of plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Movement in Fees in Advance
Net cash provided by (used in) financing activities
Cash and cash equivalents
Cash in hand at the start of the reporting period
Cash in hand at the end of the reporting period
Change in cash and cash equivalents in the reporting period
Change in cash and cash equivalents in the reporting period
Net income for the reporting period (as per the Statement of
Financial Activities)		 2020
2019
£
£
2,203,046
3,633,335
1,209,083
984,303
(4,775)
(1,125,988)
(570,872)
(622,560)
(6,000)
68,000
(398,656)
(176,900)
-
-
(490,875)
182,413
1,940,951
2,942,603
570,872
622,560
(3,811,123)
(1,832,466)
-
-
-
6,813,531
-
(6,788,328)
(3,240,251)
(1,184,703)
(481,947)
(295,247)
(481,947)
(295,247)
(1,781,247)
1,462,653
6,693,819
5,231,166
4,912,572
6,693,819
(1,781,247)
1,462,653

25

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

The School is vested in a company limited by guarantee (The North London Collegiate School company number 2818422), which is a registered charity (charity number 1115843). The company is constituted by its Memorandum and Articles of Association. The Memorandum sets out the objects and powers of the Company and its constitution and the Articles regulate the governance of the Company and its internal procedures.

1 ACCOUNTING POLICIES

The following accounting policies have been used consistently in dealing with items which are considered material to the Group’s affairs.

The financial statements have been prepared under the historical cost convention, as modified by the inclusion of listed investments at market value, and in accordance with applicable accounting standards. The School meets the definition of a public benefit entity under the guidance issued by the Charity Commission. The financial statements have been prepared to comply with FRS102 and conform with the requirements of the Statement of Recommended Practice, “Accounting and Reporting by Charities” issued by the Charity Commissioners for England and Wales in 2015 (Charities SORP – FRS102) and the Companies Act 2006.

The consolidated financial statements include the results of the School and all its subsidiaries. All activities are consolidated on a line by line basis in the Statement of Financial Activities and the Balance Sheet. Accordingly, the Consolidated Statement of Financial Activities reflects the incoming resources and resources expended of the Group and not the School as an individual entity. The results of the subsidiaries are shown in Note 13.

The COVID-19 pandemic has been felt globally. The impact of the pandemic on the School and all its subsidiaries has been assessed. The Governors review actual financial results on a termly basis and compare the performance against budgets and forecasts. Following the announcement of the closure of schools, immediate steps were taken to realise in year cost savings and the deferral of routine estates expenditure where appropriate.

The savings and deferment of expenditure were used to support the parents by providing an immediate 10% fee discount against the summer term fee bill and a further 5% fee rebate at the end of the summer term.

The largest risk to our income is pupil roll numbers, the role has not been impacted by the pandemic and we continue to maintain our income levels. In addition the International Schools have all maintained or grown their rolls throughout the pandemic.

Long range forecasts have been prepared for the School and all its subsidiaries and the impact of a drop in roll has been modelled. To mitigate this risk we have a £5m overdraft facility in place.

The company has adequate resources to continue its future activities through its cash and investment holdings.

Accordingly the Governors have continued to prepare the financial statement on the going concern basis.

(c) Income

All income is included on an accruals basis with the exception of donations and gifts which are included when received. Grants are recognised in the year of the agreement to the extent that there is a contractual commitment from the donor, there is evidence of entitlement, receipt is probable and the amount can be measured reliably. Donations which are provided in kind are not recognised in the accounts unless they are material.

Legacies are included within the Statement of Financial Activities when the School has been notified of its entitlements to income and the value and timing of receipt of the probable legacy can be measured with sufficient reliability.

School fees are credited to income in the period for which they are receivable. Net fees receivable are stated after deducting bursaries and scholarships. Fees that are receivable in advance of the academic year to which they relate are treated as creditors and released in the year to which they relate.

Government grants are recognised on the performance model, when the School has complied with any conditions attaching to the grant and the grant will be received. The grant in connection to the job retention scheme has been recognised in the period to which the underlying furloughed staff costs relate to.

Income received in respect of set-up costs from franchising partners is recognised in line with activity of work completed. Income from royalties and charges for additional services to our franchising partners is recognised in respect of fee income for the academic year.

26

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

(d) Resources expended

Expenditure is recognised when there is a legal and constructive obligation. In accordance with the Charities SORP expenditure has been analysed between charitable activities, financing costs and the cost of raising funds. The principal activity of the organisation is the operation of the North London Collegiate School. Governance costs reflect the costs of administration and other costs necessary for the operation of the charity. Support costs comprise general management, governance, accounting and financing.

In accordance with FRS 102 the amounts charged in resources expended are the costs of providing pension benefits earned by employees in the period. The expected return on pension scheme assets less the interest on pension scheme liabilities is included as part of this charge. Actuarial gains and losses arising in the period from the difference between actual and expected returns on pension scheme assets, experience gains and losses on pension scheme liabilities and the effects of changes in demographics and actuarial assumptions are included in the statement of financial activities within other recognised gains and losses. The accumulated pension scheme deficit is recognised in full and included within the balance sheet.

Costs in respect of the Teachers Superannuation Scheme, which is a multi-employer scheme where the assets and liabilities attributable to the School cannot be identified, are charged to the Statement of Financial Activities based on the employers’ contributions payable.

The School is registered for Value Added Tax. Expenditure shown in the Statement of Financial Activities is inclusive of irrecoverable Value Added Tax as the School is unable to reclaim VAT on the majority of its expenses.

(g) Taxation

The company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly the company is potentially exempt from taxation in respect of income or capital gains tax within categories covered by Chapter 3 of Part 11 of the Corporation Tax 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge arose in the period.

The subsidiary companies make qualifying donations of all taxable profit to The North London Collegiate School. No corporation tax liability on the subsidiaries arises in the accounts.

(h) Fixed Assets

Land and buildings existing at the date of the scheme setting up the charity as a separate entity in 1993 are included at their original cost less accumulated depreciation. Additions to land and buildings since that date and fixed plant are capitalised in the balance sheet. All furniture items are treated as expense items. Items bought individually which are less than £5,000 are not capitalised.

(i) Investments Investments are included at market value at bid-price. Realised gains or losses on disposals of investments and unrealised gains and losses on revaluation of investments at the year end are reflected in the Statement of Financial Activities. The investment in the subsidiaries, which is included in the Charity’s balance sheet, is included at cost.

Instalments under operating lease agreements are charged to the Statement of Financial Activities in the year in which they are incurred.

27

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

General Funds are the accumulated surplus on the School income and expenditure account which is available for use at the discretion of the Governors in furtherance of the general objectives of the charity.

Designated Funds comprise funds which have been set aside at the discretion of the Governors for specific purposes.

purpose.

Further details are shown in Note 9.

The provision for bad debts is based on a case-by-case review of amounts outstanding in respect of pupils. All other judgements or estimates which materially affect the amounts recognised in the accounts have been disclosed in these accounts. These include the treatment and calculation of depreciation, multi-year grants, the allocation of support costs, and the calculation of pension liabilities. The Charity recognises its liability to its defined benefit scheme which involves a number of estimations as disclosed in Note 10.

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 debtors except prepayments. 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 bank accounts (with less than six months notice) and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, provisions and deferred income. Investments are held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure. Investments in subsidiary undertakings are held at cost less impairment.

28

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

2 COMPARATIVE SOFA

School Fee Income is shown on the Statement of Financial Activities. Details of Scholarships and Bursaries are shown in the Trustees Report. Other income includes Registration fees, trip income and rental income from staff accommodation.


accommodation.
2019 2018
Income from:
Charitable activities
School Fee Income
Scholarships		 General Funds
Designated
Funds
R
£
£
21,175,592
(252,609)		 estricted
Funds
Restricted
Building
Funds
Endowment
Funds
T
£
£
£
(40,800)		 otal Funds
Pri
£
21,175,592
(293,409)		 or Year Total
Funds
£
20,642,370
(358,012)
Bursaries
Net Fee Income		 0
20,922,983		 (1,082,495)
(1,082,495)		 (318,040)
(358,840)		 (1,400,535)
19,481,648		 (1,239,173)
19,045,186
Ancillary Trading Income
(catering and coaches)
Other Income from
operation of School
Other activities
Trading Income from
Subsidiaries
Donations and Grants:
Bursaries and
Scholarships
Donations and Grants:
Other		 1,889,225
749,835
23,562,043
2,463,134
0
103,824		 (1,082,495) (358,840)
309,290
156,003
64,872		 1,889,225
749,835
22,120,708
2,463,134
309,290
324,698		 1,716,690
729,500
21,491,376
2,139,069
343,059
352,340
Investment Income
Total Income
Expenditure on:
Charitable activities
Trading by Subsidiaries
Raising funds
Financing Costs
Total Expenditure
Operating Surplus		 368,610 229,354 10,197
19,553		 627,713 393,718
26,497,610
21,067,942
1,718,392
276,198
119,291		 (853,141) 106,453
75,068
19,553
131,373
25,000		 25,845,544
21,224,316
1,718,392
276,198
119,291		 24,719,561
20,615,358
1,294,017
279,065
143,493
23,181,823
3,315,787		 0
(853,141)		 131,373
25,000
0
(24,920)
50,068
19,553		 23,338,197
2,507,347		 22,331,933
2,387,628
Net gains on investments
1,125,988		 1,125,988 673,936
Net income
4,441,775
Transfers between fund
(977,083)
Net movement after
transfers
3,464,692		 (853,141)
984,672		 (24,920)
50,068
19,553
19,553
(7,589)
(19,553)		 3,633,335
0		 3,061,564
3,464,692 131,530 (5,367)
42,480
0		 3,633,335 3,061,564
Actuarial gains/(losses)
on defined benefit
pension schemes		 (712,000) (712,000) 1,326,000
Net movement in
funds
Reconciliation of funds:
Total funds brought
forward
Total funds carried
forward		 2,752,692 131,530 (5,367)
42,480
0		 2,921,335 4,387,564
20,803,013
23,555,705		 6,552,959
6,684,489		 135,234
291,337
588,665
129,867
333,817
588,665		 28,371,208
31,292,543		 23,983,644
28,371,208

All amounts relate to continuing operations, and all gains and losses recognised in the year are included above. The notes on pages 22 to 38 form part of these financial statements.

29

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

3 ANALYSIS OF TOTAL EXPENDITURE

Teaching
Catering & Coaches
Premises
Governance Costs		 Staff Costs
Other Costs
Depreciation
Group 2020
Total
Group 2019
Total
12,487,616
580,739
13,068,355
12,505,743
20,358
1,775,757
1,796,115
2,020,272
317,764
1,542,411
1,148,656
3,008,831
3,299,189
141,545
39,606
181,151
158,937
Other Support Costs
Total Charitable Activities
Raising Funds
Financing Costs
Investment Management
Cost of Subsidiaries
Total Other Activities
Total Expenditure		 1,963,407
1,307,264
3,270,671
3,240,175
14,930,690
5,245,777
1,148,656
21,325,123
20,615,358
187,099
47,787
234,886
276,198
48,387
48,387
93,312
-
-
25,979
1,034,093
509,040
60,427
1,603,560
1,718,392
1,221,192
605,214
60,427
1,886,833
2,113,881
16,151,882
5,850,991
1,209,083
23,211,956
23,338,197

Governance Costs include Audit fees, 10% of Professional Fees and 10% of Clerical & Administrative staff costs

30

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

4a EXPENDITURE

Staff costs charged to General Fund were
Wages and salaries
Social security costs
Other pension costs
Other costs of employing staff		 2020
£
11,752,353
1,271,829
2,645,389
482,311
16,151,882		 2019
£
10,927,511
1,183,903
2,084,198
435,190
14,630,802

Termination payments, including redundancy, and ex gratia payments totalled £nil in the year (2019: £2,452). These are included in the total for staff costs above. Termination benefits are payable when employment is terminated by the School or whenever an employee accepts voluntary redundancy in exchange for these benefits. The School recognises termination benefits when a fully signed settlement agreement is in place, or when the cost has otherwise been confirmed and committed to. There were no amounts outstanding at 31st July 2020 or 2019 for any termination payments.

Remuneration and benefits for key management personnel (consisting of the Senior Team, as set out above on page 6) totalled £1,080,807 in the year (2019: £958,019).

The number of staff who received remuneration (including taxable benefits in kind but excluding employer pension costs) in excess of £60,000 were as follows:

£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
£100,000 - £109,999
£110,000 - £119,999
£130,000 - £139,999
£150,000 - £159,999
£160,000 - £169,999		 2020
27
15
4
2
2
-
1
-
3
54		 2019
28
12
1
3
1
1
-
2
2
48

All except two of the higher paid staff shown above were accumulating benefits under the various pension schemes. This amounted to £836k (2019: 564k).

The average number of staff employed by the group during the year was as follows. The calculation of Full-time equivalent staff for Support Staff is based on the staffing complement, calculated on 40 hours per week and 52 weeks per year.

2020
Full-time
equivalent
2020
Average
Headcount
Teaching
128.6
157.7
School Support Staff
65.7
123.7
Employed by Subsidiaries (Canons Enterprises)
8.3
59.25
Total
202.6
340.7
4b Auditors’ remuneration
- for audit services
- for subsidiary audit services
- for tax advisory services		 2019
Full-time
equivalent
2019
Average
Headcount
130.0
158
67.8
124
8.3
43
206.1
325
2020
2019
£
£
25,200
23,760
28,950
25,275
10,800
8,770

31

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

5 TANGIBLE FIXED ASSETS

Group
Cost
At 1 August 2019
Additions
At 31 July 2020		 Freehold
Land and
buildings
£
23,269,514
2,209,547		 Assets
Under
Construction
£
-
1,032,195		 Fixed plant
£
1,540,544
20,786		 Equipment
£
1,123,066
526,134		 Vehicles
Total
£
£
267,756
26,200,880
22,461
3,811,123
25,479,061 1,032,195 1,561,330 1,649,200 290,217
30,012,003
Depreciation
At 1 August 2019
Charge for the period
At 31 July 2020
Net book values
At 31 July 2020
At 31 July 2019
Charity
Cost
At 1 August 2019
Additions
At 31 July 2020
Depreciation
At 1 August 2019
Charge for the period
At 31 July 2020
Net book values
At 31 July 2020
At 31 July 2019		 7,061,652
730,970		 854,470
81,535		 767,313
342,891		 136,697
8,820,132
53,687
1,209,083
7,792,622 - 936,005 1,110,204 190,384
10,029,215
17,686,439
16,207,861
Freehold
Land and
buildings
£
23,269,514
2,209,547		 1,032,195
-
Assets
Under
Construction
-
1,032,195		 625,325
686,074
Fixed plant
£
1,540,544
20,786		 538,996
355,753
Equipment
£
1,054,575
526,134		 99,833
19,982,788
131,059
17,380,748
Vehicles
Total
£
£
34,229
25,898,862
3,788,662
25,479,061 1,032,195 1,561,330 1,580,709 34,229
29,687,524
7,061,652
730,970		 854,470
81,535		 710,452
331,261		 6,440
8,633,014
4,890
1,148,656
7,792,622 - 936,005 1,041,713 11,330
9,781,670
17,686,439
16,207,861		 1,032,195
-		 625,325
686,074		 538,996
344,123		 22,899
19,905,854
27,789
17,265,847

At 31 July 2020 the Group had capital commitments of £602,983 (2018: £168,000) £423,391 relating to the Site Masterplan and £179,592 for the Junior School project. Assets under construction relate to the Ideas Hub, Phase 1 of the Site Masterplan.

32

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

6 INVESTMENTS

Investment in Canons Enterprises Limited, at cost
Investment in Canons Transport Limited, at cost
Investment in NLCS Enterprises Limited at cost
Investment in NLCS International Limited at cost		 2020
2
1
100
100		 2019
2
1
100
100

Further details of the subsidiaries are shown in Note 13.

Other investments, all of which are listed, at market
value
At 1 August 2019
Disposals (HSBC)
Additions (CCLA)
Additions (Black Rock)
Investment Manager Fees
Investment gains/(losses)
At 31 July 2020
Cost of other investments
At 31 July 2020
7
DEBTORS
Group
2020
£
Fee debtors
54,523
Amounts owing by Franchise Partners
1,114,836
Amounts due from Subsidiaries
-
Prepayments and accrued income
251,853
1,421,212		 Other investments, all of which are listed, at market
value
At 1 August 2019
Disposals (HSBC)
Additions (CCLA)
Additions (Black Rock)
Investment Manager Fees
Investment gains/(losses)
At 31 July 2020
Cost of other investments
At 31 July 2020
7
DEBTORS
Group
2020
£
Fee debtors
54,523
Amounts owing by Franchise Partners
1,114,836
Amounts due from Subsidiaries
-
Prepayments and accrued income
251,853
1,421,212		 Group& Charity Group& Charity Group& Charity
Charity
2020
£
54,523
-
2,437,550
251,853
2,743,926		 Group
2019
£
38,230
653,327
-
331,001
1,022,558
1,421,212 1,470,873

33

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

8 CREDITORS
Group
Charity
2020
2020
£
£
Amounts falling due within one year:
Fee deposits
3,140,769
3,140,769
Trade creditors
556,766
551,172
Tax and social security
337,284
337,001
Accrued Holiday Pay
908,716
908,716
Accruals and deferred income
1,116,388
825,502
Receipts in respect of Autumn Fees
198,973
198,973
Deferred Income: Fees in advance
scheme
698,874
698,874
6,957,770
6,661,007
Amounts falling due after more than one year:
Group & Charity
2020
Fees in Advance Scheme
Between 2 and 5 years
789,313
Over 5 years
98,372
887,685
Movements in Fees in Advance Scheme
At start of year
2,173,286
New Contracts
242,304
Repayments
-
Amounts used to pay fees
(855,349)
Debt Financing Cost
26,318
Balance at end of year
1,586,559		 Group
Charity
2019
2019
£
£
3,386,346
3,386,346
633,784
630,988
548,016
545,083
831,474
831,474
967,422
418,426
277,950
277,950
803,653
803,653
7,448,645
6,893,920
Group & Charity
2019
1,271,261
98,372
1,369,633
2,744,668
586,958
(66,644)
(1,130,091)
38,395
2,173,286		 Charity
2019
£
3,386,346
630,988
545,083
831,474
418,426
277,950
803,653
6,893,920

9 FUNDS - GROUP

(a) Net assets are held for the various funds as follows:

Tangible Fixed Assets
Investments
Net Current assets
Long Term Creditors
Pension Deficit
At 31stJuly 2020
Tangible Fixed Assets
Investments
Net Current assets
Long Term Creditors
Pension Deficit
At 31stJuly 2019		 General Funds
Designated
Funds
Restricted
Funds
Restricted
Building
Funds
Endowment
Funds
Total Funds
19,952,788
30,000
19,982,788
8,631,557
8,672,458
370,792
558,665
18,233,472
(845,746)
221,760
0
(623,986)
(887,685)
(887,685)
(5,306,000)
(5,306,000)
21,544,914
8,672,458
221,760
370,792
588,665
31,398,589
17,350,748
30,000
17,380,748
10,651,726
6,684,489
333,817
558,665
18,228,697
137,865
129,867
0
267,732
(1,369,634)
(1,369,634)
(3,215,000)
(3,215,000)
23,555,705
6,684,489
129,867
333,817
588,665
31,292,543

34

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

9 2020 Movements in Designated and Restricted Funds

Restricted Endowment Funds
Endowment Fund: Land owned by the School
Prize/Exhibitions & Scholarship Fund
Eleanor Lyndon Trust Fund
Sharland Sixth Form Bursary
Sharland Sixth Form Prize Fund
Restricted Building Funds
Performing Arts Centre
New Building (2014)
Capital Building Appeal (2016)
Other Restricted Funds
Prize/Exhibitions & Scholarship Fund Income
Eleanor Lyndon Trust Fund Income
Bernice McCabe Bursary Appeal Fund
Sharland Prizes
The Doris Gregory Trust
Frank Levett Memorial Prize
Parents Guild
Frances Mary Buss Scholarship Trust
Kay Nicholson Physics Prize
Kay Nicholson Economics Prize
Ennis Brandenburger
Drama Staging
Annual Fund
Emerald Ball
Foxton Fund - History Speakers
Tomsett - STEM
STEM - Revenue Donations
Bursary Review Fund
Nigel Wray Sports Fund		 Balance at 1st
August 2019
Donations
Investment
income
Charitable
Expenditure
Transfers of
Net Income
Transfers
to/from
General
Funds
Balance at 31st
July 2020
30,000
30,000
284,369
9,953
(9,953)
284,369
14,296
500
(500)
14,296
250,000
8,750
(8,750)
250,000
10,000
350
(350)
10,000		 Balance at 1st
August 2019
Donations
Investment
income
Charitable
Expenditure
Transfers of
Net Income
Transfers
to/from
General
Funds
Balance at 31st
July 2020
30,000
30,000
284,369
9,953
(9,953)
284,369
14,296
500
(500)
14,296
250,000
8,750
(8,750)
250,000
10,000
350
(350)
10,000
588,665
0
19,553
0
(19,553)
0
588,665
0
300
(300)
0
0
1
(1)
0
333,817
76,168
11,684
0
(50,877)
370,792
333,817
76,469
11,684
0
(50,877)
(301)
370,792
22,012
(325)
9,953
31,640
1,148
0
500
1,648
0
339,215
(347,965)
8,750
0
745
0
350
1,095
(0)
72,863
(72,863)
(0)
10,341
(100)
10,241
0
0
0
0
15,310
0
15,310
330
0
330
470
0
470
1,972
0
1,972
0
0
0
(0)
0
0
(0)
8,361
0
0
8,361
326
0
326
52,350
(5,546)
46,804
0
52,855
0
50,877
103,732
0
5,106
(5,106)
0
16,502
0
(16,671)
(169)
129,867
470,039
0
(448,576)
70,430
0
221,760
Designated Funds
Bernice McCabe Bursary Fund
COVID Hardship Fund
COVID Support Fund
Grand Total		 6,684,489
0
0
233,957
(930,572)
853,406
6,841,280

62,066
(49,994)
750,000
762,072

(430,894)
1,500,000
1,069,106
7,736,838
608,574
265,194
(1,860,036)
0
3,103,105
9,853,675

Investment income is credited at a notional rate on the opening balance to Endowment Funds, the 2016 Capital Campaign and to the Designated Bursary Fund For 2019/20 this rate is 3.5%

35

THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

9 2019 Movements in Designated and Restricted Funds

Restricted Endowment Funds
Endowment Fund: Land owned by the School
Prize/Exhibitions & Scholarship Fund
Eleanor Lyndon Trust Fund
Sharland Sixth Form Bursary
Sharland Sixth Form Prize Fund
Restricted Building Funds
Performing Arts Centre
New Building (2014)
Capital Building Appeal (2016)
Other Restricted Funds
Prize/Exhibitions & Scholarship Fund Income
Eleanor Lyndon Trust Fund Income
Bernice McCabe Bursary Appeal Fund
Sharland Prizes
The Doris Gregory Trust
Frank Levett Memorial Prize
Parents Guild
Frances Mary Buss Scholarship Trust
Kay Nicholson Physics Prize
Kay Nicholson Economics Prize
Ennis Brandenburger
Drama Staging
Annual Fund
Emerald Ball
Foxton Fund - History Speakers
Tomsett - STEM
Nigel Wray Sports Fund
Designated Funds
Bernice McCabe Bursary Fund
Grand Total		 Balance at 1st
August 2018
Donations
Investment
income
Charitable
Expenditure
Transfers of
Net Income
Transfers
to/from
General
Funds
Balance at 31st
July 2019
30,000
30,000
284,369
9,953
(9,953)
284,369
14,296
500
(500)
14,296
250,000
8,750
(8,750)
250,000
10,000
350
(350)
10,000
588,665
0
19,553
0
(19,553)
0
588,665
0
302
(302)
0
0
7,287
(7,287)
0
291,337
57,283
10,197
(25,000)
333,817
291,337
64,872
10,197
(25,000)
0
(7,589)
333,817
13,802
(1,743)
9,953
22,012
647
0
500
1,148
0
309,290
(318,040)
8,750
0
430
(35)
350
745
0
114,444
(114,444)
(0)
10,341
0
10,341
0
16,137
(16,137)
0
15,310
0
15,310
355
(25)
330
470
470
1,972
0
1,972
64
(64)
0
960
400
(1,360)
(0)
8,361
0
0
8,361
567
(241)
326
62,350
(10,000)
52,350
19,603
25,022
(28,124)
16,502
135,234
465,293
0
(490,214)
19,553
0
129,867
6,552,959
229,354
(1,082,495)
984,672
6,684,489
7,568,195
530,165
259,104
(1,597,708)
0
977,083
7,736,838

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THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

9 Details of Restricted & Designated Funds:

Endowment Funds where only the net income is available to the School. The original capital sum is shown here and any income, expense and charitable expenditure are shown in the respective restricted fund.

Building Funds comprise donations which are intended for the purchase of capital assets. A release is made to the General Fund when the expenditure is incurred, or, if the expenditure has already been incurred, in the year that the donation is received.

Other Restricted Funds

Designated Funds

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THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

10 PENSION COSTS

London Borough of Harrow Superannuation Fund

The School contributes to the London Borough of Harrow Superannuation Fund which is a multi employer defined benefit scheme, the assets and liabilities of which can be disaggregated. This scheme is now closed to new entrants. The pension cost for the London Borough of Harrow Superannuation Fund is assessed in accordance with the advice of a qualified actuary on the basis of triennial valuations. The pension charge for the scheme was £608,000 (2019: £659,000) which were the contributions due for the year. A formal valuation of the Scheme was carried out as at 31 March 2013 by a qualified independent actuary. This statement has been updated to 31 July 2020 by the actuary for the purpose of the disclosures required by Financial Reporting Standard 102 based on that valuation, using the following major assumptions:

31 July
31 July
31 July
2020
2019
2018
Pension increase rate
2.2%
2.4%
2.4%
Salary increases
2.9%
2.7%
2.7%
Expected return on assets
1.4%
2.1%
2.8%
Discount rate
1.6%
2.1%
2.8%		 2017
2.5%
2.8%
2.7%
2.7%

The mortality assumptions adopted at 31 July 2020 imply the following life expectancies at age 65:


Current pensioners
22.0
Future pensioners
23.1		 Male
Female
years
24.3 years
years
26.3 years

The major categories of School’s share of the plan assets are as follows:

Equities
Bonds
Property
Cash
Total		 % at 31stJuly 2020
% at 31stJuly 2019
74
80
15
13
8
7
3
-
100
100

The approximate fair values of assets and liabilities, and the net pension liability attributable to the School at 31 July 2020 was:

Fair value of
assets
Present value
of liabilities		 31July
2020
£000’s
11,394
(16,700)
(5,306)		 31July
2019
£000’s
11,563
(14,778)
(3,215)		 31July
31 July
2018
2017
£000’s
£000’s
10,045
8,400
(12,480)
(12,045)
(2,435)
(3,645)

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THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

10 PENSION COSTS (continued)

Changes in the Defined Benefit Obligation
Opening defined benefit obligation
Current service cost
Past service cost
Interest cost on defined benefit obligation
Contributions by members
Changes in
Changes in financial assumptions
Losses on Curtailments
Other experience
Benefits Paid
Closing Defined Benefit Obligation
Changes in fair value of plan assets
Opening fair value of plan assets
Return on assets
Contributions by members
Contributions by the employer
Interest income
Estimated benefits paid
Closing fair value of employer assets		 2020
£000’s
14,778
608
316
108
648
1,629
-
(1,131)
(256)
16,700
2020
£000’s
11,563
(951)
108
681
249
(256)
11,394		 2019
£000’s
12,480
619
40
357
120
(791)
2,152
-
(199)
14,778
2019
£000’s
10,045
649
120
659
289
(199)
11,563

The total cost for this Scheme recognised in the Statement of Financial Activities is £675k (2019: £727k).

Amounts for the current and previous accounting periods

2020 2019 2018 2017
£000’s £000’s £000’s £000’s
Fair value of employers assets 11,394 11,563 10,045 8,400
Present value of defined benefit
obligation		 (16,700) (14,778) (12,480) (12,045)
Surplus/(Deficit) (5,306) (3,215) (2,435) (3,645)
Experience gains/ (losses) on
assets		 - - - -
Experience gains/ (losses) on
liabilities		 - - - 881

Contributions for the year to 31 July 2021 will be approximately £689,000 (2020: £662,000).

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THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

10 PENSION COSTS (Continued)

Teachers’ Superannuation Scheme

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 £1,857,596 (2019: £1,269,853) and at the year-end £nil (2019: £176,634) 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 2020, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2020. 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 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.

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 a remedy to the discrimination conclusion has been determined by the Employment Tribunal 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.

Defined Contribution Scheme

The School has offered a Defined Contribution Scheme with Standard Life for Non-Teaching Staff who joined after 1[st] August 2016. The total costs in the year of £68,448 (2019: £61,248) have been allocated to activities in unrestricted funds, on the same basis as the respective employees salaries.

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THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

11 RELATED PARTY TRANSACTIONS

None of the Governors received remuneration or had any interest in transactions during the period other than as disclosed in this note. The School has purchased indemnity insurance for the Governors, which cost £1,468 (2019: £1,468).

No Governors were reimbursed for travel and other expenses in the period (2019: £nil).

Mrs Elaine Davis, a Governor of the School, is the Director of The 10 Group, a limited company registered in England and Wales. During the year ended 31 July 2020, the School paid a sum of £nil (2019: £7,440) for filming services provided by The 10 Group. In addition, NLCS Enterprises paid £nil (2019: £30,000) for filming services provided by The 10 Group to the franchising subsidiaries.

Ms R Herdman-Smith is a Governor of NLCS, is a partner of Mishcon De Reya LLP. During the year ended 31 July 2020, the School paid a sum of £7,326 (2019:£nil) for legal advice.

Mr J Herlihy is a Governor of NLCS, a director of NLCS Enterprises and a Governor of NLCS-Jeju School. He received an honorarium of £nil (2019: £10,000) from NLCS-Jeju for serving as a Governor of NLCSJeju School.

Ms H Stone is Chair of Governors for NLCS Jeju. She received an honorarium of £5,000 for serving as Chair of Governors.

Trustees made donations totalling £5,200 in the year (2019: £4,650) of which £1,200 (2019: £1,200) was in kind.

Details of the School’s transactions with its subsidiaries are shown in Note 13.

12 FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS
Group 2020 Charity 2020 Group 2019 Charity 2019
Financial Assets
measured at fair value		 18,233,472 18,233,674 18,228,697 18,228,900

Financial assets held at fair value comprise assets held as investments.

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THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

13 Trading Companies

----- Start of picture text -----
Canons Park Consulting Limited 11187224 385,054 (204,093) 180,961 - 180,961 (180,961) (0) - - - 251 - - - 155,583 - - (155,833) 1 1 - 1
NLCS Limited 9982315 69,249 (69,249) - - - - - - - - - 215,462 - - - 11,720 - - (227,082) 100 100 - 100
Enterprises (Singapore)
NLCS Enterprises (Thailand) Limited 11187640 29,603 (111,658) (82,055) - (82,055) 186,869 (104,814) 0 - - - - - - 4,499 - - (4,498) 1 1 0 1
NLCS (Dubai) Limited 09506840 260,575 (69,860) 190,715 960 191,675 (5,908) (185,767) - - - 65,252 151 (185,767) 14,777 124,092 - - - (18,405) 100 100 - 100
Enterprises
- - - - - - - -
2019
NLCS Limited 6832562 1,239,599 (528,818) 710,781 3,388 714,170 (714,170) 62,025 422,016 (714,170) 266,341 (36,111) 100 100 100
Enterprises
- - - - 202 450,912 - - - - - - 100 100 - 100
NLCS (155,121) (295,894)
l Limited 09921328
Internationa -
Canons Transport Limited 10868243 322,670 (292,524) 30,146 30,146 (30,146) - - 103,269 55,630 8,090 (30,146) (134,313) - - - (2,530) - 1 1 - 1
Canons Limited 2713749 479,054 (442,191) 36,863 806 37,669 (37,669) 800 800 11,631 255,074 7,608 (37,669) (125,575) - - (2,935) (265) (107,067) 802 2 800 802
Enterprises
Canons Park Consulting Limited 11187224 495,677 (63,851) 431,826 431,826 (431,826) - - - 852 146,514 (431,826) - 434,721 - - - (150,260) 1 1 (0) 1
222,707 112,709 112,709 - - - - 87,678 - 29,681 - - - (4,550) 100 100 (0) 100
NLCS Limited 9982315 (109,998) (112,709) (112,709)
Enterprises (Singapore)
(8,701) (8,701) (8,701) 8,701 - (0) - - - - - 8,701 (4,150) - - (4,550) 1 1 0 1
NLCS Enterprises (Thailand) Limited 11187640
NLCS (Dubai) Limited 09506840 355,441 (44,120) 311,321 311,321 (8,701) (302,620) - 0 - 34,430 378,789 (302,620) (43,669) - (14,509) - - (52,320) 100 100 0 100
Enterprises
2020 - 0 - - - - 0
NLCS Limited 6832562 1,198,455 (722,811) 475,644 2,837 478,480 (19,776) (458,704) 572,138 473,461 (458,704) (540,992) (15,226) (30,577) 100 100 100
Enterprises
- - - - - - 202 780,646 - - - - - - 100 100 - 100
NLCS (321,753) (458,994)
l Limited 09921328
Internationa
Canons Transport Limited 10868243 249,833 (282,465) (32,632) (32,632) 32,632 - 0 76,933 31,482 7,501 - (141,812) 32,632 - - (2,185) (4,550) 1 (1) 0 (1)
Canons Limited 2713749 383,189 (371,209) 11,980 876 12,856 (12,856) 800 800 - 124,001 20,894 - (83,465) - (12,856) (282) (3,410) (44,080) 802 2 800 802
Enterprises
Company Reg Numbers Turnover Operating expenses Operating profit Interest receivable Profit for the year Group Tax relief Gift aid Brought Forward Retained in subsidiary Fixed Assets Cash at Bank Other Assets Gift Aid Liability Due to Parent Due from Intercompany Due to Intercompany Tax and Social Security Trade Creditors Accruals & Deferred Income Net Assets Share Capital Retained Funds Shareholders Funds
----- End of picture text -----

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THE NORTH LONDON COLLEGIATE SCHOOL NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2020

14 Related Party Transactions between the School and Subsidiaries

Canons Enterprises Ltd (CEL)

The School shares the running costs of the Sports Centre with CEL, which is used by the School for School purposes and used by CEL to generate revenue from third parties when it is not used by the School. In addition, the School makes a charge for accounting functions performed by School Staff. The Sports Centre was closed due to COVID between 21 March through to 31 July 2020, as only eight months were reharged.

were reharged.
2020 2019
£ £
Recharges of running costs paid by the School 76,667 115,000
Accounting functions 5,000 5,000

International Franchising Subsidiaries

The School maintains the payroll for all staff who work for the International Franchising subsidiaries, the costs of which are fully reflected in the subsidiaries' accounts. In addition, the School makes a charge for accounting functions performed by School Staff, and for the office space occupied by these companies. As part of the service provided to overseas franchise schools, the School also charges the subsidiaries for teaching staff provided to assist with monitoring and inspection visits, the cost of which is recovered from the franchise schools.

NLCSE Dubai Thailand Singapore CPC
2020 2020 2020 2020 2020
£ £ £ £ £
Salaries paid by the School 324,579 33,939 - 95,269 55,451
Office facilities and insurance 26,370
Accounting functions 21,000
Teaching Staff reimbursed by overseas franchise 2,217 5,125 - 10,176 -
2019 2019 2019 2019 2019
£ £ £ £ £
Salaries paid by the School 307,113 47,066 26,136 57,177 113,101
Office facilities and insurance 23,575
Accounting functions 21,000
Teaching Staff reimbursed by overseas franchise 17,269 20,085 3,467 4,559 29,833

Canons Transport Ltd (CTL)

Canons Transport Ltd operates minibuses on behalf of the School to provide passenger transport services for the School's pupils. Charges are made by the School for accounting services and for interest on a loan to CTL.

2020 2019
£ £
Charges made by CTL to the School 249,832 322,670
Charges made by the School to CTL
Accounting functions 5,000 5,000
Interest on loan 3,000 3,000

All related party transactions have been carried out at arms length.

43