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2020-08-31-accounts

Company Number 06142007 Registered in England and Wales Charity Number 1119613

ST PAUL’S GIRLS’ SCHOOL

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

ST PAUL’S GIRLS’ SCHOOL

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

CONTENTS Page
Governors, Officers and Advisers 1 - 3
Trustees’ and Strategic Report 4 - 23
Independent Auditor’s Report 24 - 26
Statement of Financial Activities 27
Balance Sheet 28
Statement of Cash Flows 29
Notes to the Financial Statements 30 - 49

ST PAUL’S GIRLS’ SCHOOL GOVERNORS, OFFICERS AND ADVISERS

Governors, Directors and Charity Trustees

The Governors are the charity trustees under charity law and the directors of the charitable company. The Governors serving at the date of this report are as follows:

Ms Justine Archer * § Mrs Zeina Bain, Deputy Chair of Governors * § # Ms Lisa Barclay * Mr Nicholas Buxton * Mr Nicolas Chisholm + # Mr Tim Haywood * § Mrs Clare Hebbes * α (appointed 2 January 2020) Mrs Geeta Khehar + Mrs Gillian Low + Mr Robert Palmer * Prof Jane Ridley + Dr Julia Riley +

Mr Simon Wathen, Chair of Governors + * # § α (appointed 20 September 2019 and became Chair on 1 September 2020)

Members of the Nominations Committee

§ Members of the Investment Sub-Committee α Members of the Client Management Group

Officers

Clerk to Governors

Mr Gerard Hickie

Company Secretary

Mrs Nicki Goodfellow

Officers (key management personnel)

High Mistress

Mrs Sarah Fletcher

Senior Deputy Head and Director of Studies Deputy Head – Director of Pastoral Care

Mr Andrew Ellams

Mrs Elizabeth Beesley (from 1 September 2020) Miss Sandrine Paillasse (to 31 August 2020)

Deputy Head – Director of Co-Curricular Deputy Head – Director of Senior School Deputy Head – Director of Partnerships

Mr Fred Hitchcock

Ms Josephine Lane

Mr Leigh O’Hara

Deputy Head – Director of People and Diversity

Ms Helen Semple

Deputy Head – Director of Strategic Development

Mr Ellis Whitcomb

Bursar

Mr Gerard Hickie

Director of Operations

Ms Barbara Sussex

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ST PAUL’S GIRLS’ SCHOOL GOVERNORS, OFFICERS AND ADVISERS

Registered Office and Advisers

Registered Office

St Paul’s Girls’ School Brook Green London W6 7BS

Charity registered number Company registered number Solicitors

1119613

06142007

Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH

Fieldfisher Riverbank House 2 Swan Lane London EC4R 3TT

Foot Anstey LLP Salt Quay House 4 North East Quay Sutton Harbour Plymouth PL4 0BN Veale Wasbrough Vizards Narrow Quay House Narrow Quay Bristol BS1 4QA Bankers Barclays Corporate Acorn House 36-38 Park Royal Road London NW10 7JA Barclays Private Bank 1 Churchill Place London E14 5HP Lloyds Bank plc 33 Old Broad Street London EC2N 1HZ Auditors Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Investment Managers Rothschild Wealth Management (UK) Ltd New Court St Swithin’s Lane London EC4N 8AL Barclays Private Bank 1 Churchill Place London E14 5HP

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ST PAUL’S GIRLS’ SCHOOL GOVERNORS, OFFICERS AND ADVISERS

Registered Office and Advisers (continued)

Insurance Brokers

Marsh Ltd Capital House 1-5 Perrymount Road Haywards Heath West Sussex RH16 3SY

Actuaries

Barnett Waddingham Cheapside House 138 Cheapside London EC2V 6BW

Punter Southall Ltd 11 Strand

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Governors present their Annual Report for the year ended 31 August 2020 under the Charities Act 2011 and the Companies Act 2006, including the Directors’ Report and Strategic Report under the 2006 Act, the list of Governors, Officers and Advisers on pages 1-3, together with the audited financial statements for the year.

DIRECTORS’ REPORT

CONSTITUTION AND OBJECTS

The school is a charitable company limited by guarantee (company number 06142007, registered charity 1119613) and is governed by its Articles of Association. The member of the charitable company is the Mercers’ Company, the City Livery Company which founded the school in 1904 and retains a keen interest in its activities.

The objects of the school, as stated in its governing document, are to promote in Greater London the education (including social and physical training) of girls and boys and in particular but without prejudice to the generality of the foregoing to conduct and maintain schools in or near to Greater London for girls and boys. The Governors shall pursue the objects of the school by running a girls’ school and may only educate members of the opposite sex with the prior written consent of and subject to any restriction imposed by the Mercers’ Company.

AIMS AND ACTIVITIES

Aims

The school’s values and ethos are prominently outlined on its website. Academically selective on entry at age 11 or 16, the school provides a stimulating, challenging and ambitious programme of study with a rich and diverse co-curricular programme, leading to GCSE/ IGCSE, school directed courses in creative disciplines and A level or Pre-U qualifications. Students are prepared for entry to the leading universities in the UK, with an increasing proportion aiming for the Ivy League universities in the US. Expectations are high and the pace brisk, suiting those girls who enjoy learning and who have a lively intellect and enquiring mind. The school also has a strong commitment to the personal development of each student. The school remains responsive to the everincreasing challenges faced by young people in today’s society, with the pressures of social media, high expectations and a challenging employment market. St Paul’s Girls’ School (SPGS) aims to instil a love of learning for its own sake, giving its students a firm foundation of lasting values as well as the resilience required to live in the real world. The school welcomes students of all faiths and none.

The High Mistress describes the school’s ethos as follows:

As soon as you walk through the door of SPGS you feel its warmth and creative energy.

Founded in 1904, SPGS was one of the first schools to believe in the importance of educating women to fulfil their potential, giving them the skills and confidence to take their place with pride in a modernising and fastmoving world. That tradition remains at our core.

The academic heart of SPGS is enhanced and lightened by the warm relationships between staff and students, the sheer joy they have in learning, and the encouragement everyone is given to dig deeper, to explore ideas, to challenge preconceptions and to develop their own ideas. Learning here is not just about passing exams. It is about a love of academic pursuits, inspiration and imagination.

From its very beginning, and in advance of its time, SPGS embraced a liberal ideology. We believe that true potential can only be unlocked when given the freedom to grow. Our rules are few and relationships are relaxed, yet respectful. We have no uniform and students are encouraged to develop their own passions and interests. Our curriculum is broad with plenty of opportunity for individual research, discussion and debate.

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FOR THE YEAR ENDED 31 AUGUST 2020

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

Aims (continued)

Music and drama are open to all and are performed to a very high standard. The art studio is an oasis of creative energy. Sport is played with verve and distinction, and opportunities of all sorts are magnified many times over in the clubs and societies on offer.

SPGS is a caring and generous community. The students are encouraged to develop a strong spirit of philanthropy, and to engage with those around them who are less privileged than themselves. We now have a strong and thriving programme of service in the Senior School and younger girls are taking part too. The school itself has links with groups at home and abroad who benefit from our support. Our bursary scheme provides us with a wonderful opportunity to offer the full breadth of our education to talented young people whatever their background, and to enrich the school beyond measure with their energy and inspiration. We are now working in partnership with local state and independent schools to share resources and promote best practice in education. The West London Partnership of which we were the founding member, was launched this year.

We are proud of our school, and proud too that over the years our alumnae have contributed significantly on a national and global stage. An education at SPGS is an extraordinary preparation for life.

The Governors, as the Charity trustees, confirm that they have complied with the requirements set out in the Charities Act 2011 to have due regard to the Charity Commission’s published general guidance on public benefit and the relevant sub-sector guidance on fee-charging charities.

Principal Activities

The school is academically selective and educates girls from 11 to 18. In September 2019, there were 769 students on roll with 224 of these in the Senior School (Sixth Form). Retention in the Senior School remained steady, with few leaving for co-educational alternatives and 25 girls joining Year 12 in September.

A broad curriculum stretches across the arts and sciences, with an especially large languages department, spanning the major European and classical languages, as well as Mandarin. SPGS offers GCSE and IGCSE in Year 11 with its own School Directed Courses in art, drama, history of art and music. In the Senior School, ten subjects teach the Pre-U syllabus and fourteen subjects follow the reformed linear A level curriculum.

The school facilitates an extensive co-curricular programme for its pupils with provisions made for girls to pursue a wide range of interests as well as getting involved in charitable activities and services to the community. New clubs and societies may be created on the initiative of the students. Well-established exchange programmes in a number of international destinations provide opportunities to experience the culture and education systems in other countries, although clearly many of the extensive trips and visits have been put on hold under Covid restrictions. Equally, the school undertakes a significant number of community outreach activities ranging from offering school facilities for use by partner schools to specific school-run workshops and events for external pupils as well as charity activities. Charities and service to the community are central aspects of the co-curricular programme, with students being involved in a number of different projects – these are outlined in the section on student community engagement.

The school also collaborates with other independent schools to drive diversity and inclusion through the School’s Inclusion Alliance which it founded in 2018. The Alliance is committed to providing an environment within which all young people and staff can thrive and grow. This is a commitment by the member schools to share best practice, work together and strive to ensure that inclusion is at the heart of their ethos, practice, and values.

The school manages a progressive bursary programme supported by both fee income from the school as well as dedicated fundraising activities.

We have managed to continue these activities despite Covid-19.

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

GOVERNANCE AND MANAGEMENT

Charity Governance Code

Governors are familiar with the Charity Governance Code and the Charity Ethical Principles and apply the recommended practices relating to each of the Charity Governance Code’s seven principles and the Charity Ethical Principles. The Charity and its Governors (Trustees) continue to consider ways in which it can further improve the Charity’s governance standards. Governors, working closely with the Director of People and Diversity, have developed diversity objectives for the Board.

Governing Body Review

The Board conducts regular reviews of its performance in line with the Charity Governance Code. In addition, governors are invited to discuss any issues regarding the governance of the Board with the Chairman at any time. An external evaluation was conducted in 2016.

Stakeholders

The key stakeholders with an interest in the charity’s work are pupils, parents, staff and community. As set out in the Achievements and Performance section of this report SPGS maintains links with local state schools who are invited to take part in events and use the facilities. The school has had particularly close links with Hammersmith Academy since its inception.

Governors

The Governors who served throughout the year, except where otherwise stated on page 1, were Ms Justine Archer, Mrs Zeina Bain, Ms Lisa Barclay, Mr Nicholas Buxton, Mr Nicolas Chisholm, Mr Tim Haywood, Mrs Geeta Khehar, Mrs Gillian Low, Mr Robert Palmer, Prof Jane Ridley and Dr Julia Riley.

Mr Simon Wathen was appointed on 20 September 2019 and Mrs Clare Hebbes was appointed on 2 January 2020. Mrs Dervilla Mitchell retired on 13 December 2019 and The Hon Timothy Palmer retired on 31 August 2020 and are thanked for their contribution to the school.

The Board of Governors meets at least once in each school term. Governors are also invited to open days and school events during the year.

Recruitment, Induction and Training of Governors

Governors are selected by reference to their eligibility, personal competence and specialist skills. The Mercers’ Company can appoint up to 14 Governors and the Board of Governors may appoint two. On appointment Governors are given an induction package, a tour of the school and meetings with key members of staff. Governors also undertake safeguarding, Prevent and GDPR training if they have not already done so and are required to read key safeguarding documents and guidance. During the course of the year there are further training sessions and recommendations are made about suitable courses for Governors to attend. In addition, from time to time, the Mercers’ Company organises training programmes for Governors in conjunction with other schools in which the Mercers’ Company has an interest.

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

Organisational Management

The Governors, as the directors of the company and trustees of the Charity, are responsible for the overall management of the school. Committees, which meet at least three times a year, have been established as follows:

Education Committee:

Finance & Estates Committee:

Nominations and Governance Committee:

Investment Sub-Committee:

Client Management Group (Building Project):

The day to day management is delegated to the High Mistress supported by the Senior Management Team and together this group are the key management personnel. The High Mistress reports once each school term, and on other occasions as required, to the Governors on the activities she has undertaken in managing the school. She attends the Finance & Estates Committee, the Education Committee, the Nominations Committee and Client Management Group meetings.

The school is regulated by DfE and inspected by ISI.

Remuneration Policy

Governors approved a formal Remuneration Policy in March 2016. Ensuring that the school has transparent but flexible reward systems which enable the recruitment and retention of truly excellent staff is essential. The school uses market information for benchmarking purposes. Day to day decisions about pay are made by the High Mistress and Bursar within the scope of the Remuneration Policy.

An annual pay award for all staff is considered by Governors each spring and awarded from the following September. Many teaching staff also receive an annual increment.

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

Insurance

The school has Professional Indemnity insurance in place which includes Directors and Officers insurance to cover the cost of compensation to a third party if a claim is made against one of the school’s directors (or officers) arising from any negligent act, error or omission, committed in good faith. The indemnity limit is £10,000,000. Indemnity insurance is also included for claims made against the school (rather than directed at an individual) with an indemnity limit of £50,000,000. The annual premium for the Professional Indemnity insurance is £5,801 and of this, £1,349 is attributed to the Directors and Officers insurance.

THE SCHOOL’S RESPONSE TO COVID-19

With lockdown from 23 March, the school moved quickly to an online learning platform, with all students being taught remotely by their teachers, all of whom were based at home also.

The school invested significant sums in mobile devices for all staff and software licences which allowed the school to continue to teach the students. Network capacity was also enhanced to cope with the increased demands on the school’s systems.

In common with other schools, and to reflect the lower overall running costs during the lockdown period, parents were given a 10% discount on summer term fees and an undertaking that there would be no fee increase in September 2020.

Covid-19 Risk Management

Throughout summer, preparations were made for a full re-opening of the school in September, ensuring full compliance with Government guidance. The school undertook a comprehensive risk assessment to ensure that re-opening could done safely and that daily operating procedures following the most current official guidance.

The risk assessment was prepared by the school’s Senior Management Team, for review by the Governing Board.

The Government and Public Health England guidance for schools referred to a system of controls that needed to be addressed when assessing the risks and planning for an ‘inherently safer system’.

The controls were:

The school’s response to establish these controls was:

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

Covid-19 Risk Management (continued)

In particular, Governors were kept aware of procedures and any changes to policy by the High Mistress. Government guidance was regularly assessed and the latest version logged with the risk assessment document. Despite the strictures placed upon the school’s normal activities by the constraints of lockdown, the school once more excelled, as described under Achievements and Performance.

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

STRATEGIC REPORT

STRATEGIC PRIORITIES

The school reaffirmed its commitment to seven broad strategic principles, covering all areas of its activity which are expressed as follows:

SP1. To offer an exceptional education for girls, which is both innovative and challenging and which prepares them as individuals to lead successful and fulfilled lives.

SP2. To maintain a supportive and outward-looking community with excellent pastoral care which also acknowledges the particular needs of young people in contemporary society.

SP3. To recruit students of conspicuous potential, irrespective of background including financial means, to achieve an intake which echoes the diversity of London as a capital city.

SP4. To attract and retain staff of the highest calibre, providing excellent continuing professional development.

SP5. To develop the existing site, technical infrastructure and management processes to reflect the character and evolving needs of the school.

SP6. To build strong links with the wider community locally, nationally and internationally.

SP7. Working to the highest standards of compliance and regulations, to enhance the reputation of SPGS as the pre-eminent girls’ day school, influencing educational debate and policymaking.

STRATEGIC PRIORITIES PERFORMANCE INDICATORS

Under SP1: Education

Deliver a diverse and high quality curricular and co-curricular education in which there is wide pupil engagement and enjoyment of learning

Continue to foster exceptional academic outcomes which ensure that SPGS remains at the forefront of measures of national performance throughout the period of qualifications reform

Aim to ensure that all girls achieve places at excellent universities in the UK and worldwide as a preparation for rewarding working lives

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

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STRATEGIC PRIORITIES PERFORMANCE INDICATORS (continued)

Under SP2: Wellbeing & Lifestyle

Promote personal fulfilment and wellbeing and an awareness of the needs of others as the foundation of a successful education

Covid-19 has curtailed some of our pastoral activities but we look forward to re-igniting the Peer Education scheme, run by students in Year 12 for the Year 7 pupils, and delivered remotely.

Visiting speakers in the autumn term (lecturing remotely) include Eleanor Marsea on digital awareness and Keon West on Unconscious Bias and Psychology.

Under SP3: Recruitment and Admissions

Attract sufficient strong applicants to maintain robust academic selection criteria

Maintain a total roll of 740+

Under SP4: Human Resources

Managing a healthy average turnover of teaching staff of 6-8%, encouraging promotion where appropriate

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

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STRATEGIC PRIORITIES PERFORMANCE INDICATORS (continued)

Under SP5: Estates and Facilities

Maintain the existing building stock and technical infrastructure to a high standard through a planned preventative maintenance programme

Provide an inspiring, innovative and functional working and learning environment that will support the delivery of all KPIs

Under SP6: Relationships and Communication

Ensure we have active links with 90% of Old Paulinas (OPs) who left in the last decade

Engage in community outreach and partnership activities

Under SP7: Sustainability

Ensure the annual fee rise is linked to the development of an agile bursary programme to protect affordability for all who qualify academically

Aim to achieve an annual unrestricted operating surplus excluding depreciation of 10% of net fee income, raise £1m annually for bursaries and a further £1m over the next three years to fund future developments

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENTS AND PERFORMANCE (INCLUDING PUBLIC BENEFIT)

Review of Achievements and Performance for the Year

The school’s Educational Quality Inspection Report (ISI) October 2019 was fulsome in its praise. “Attitudes to learning are exemplary.” “Pupils are confident and self-assured, yet humble and gracious.” “Pupils embrace the many opportunities to improve the lives of others and make an outstanding contribution to the community within and beyond the school.” The school was rated excellent in the two graded categories – personal development and pupil achievement – and passed all compliance categories with no recommendations for further action.

SPGS has enjoyed another exceptional year for examination results despite all of the furore around awarding in 2020. Examination results are very broadly in line with recent outcomes at all levels. At GCSE/iGCSE, 97.9% of entries attained an A equivalent 8 or 9 grade and 100% achieved an A or A grade. This is the eighth consecutive year that the proportion of entries achieving an A equivalent grades at GCSE has exceeded 90%. Straight A grades were attained by 84 Paulinas. At A level/ Pre-U, 64.6% of entries attained an A grade, 92.4% of entries achieved an A or A grade and 98.4% a B grade or higher.

University destinations continue to impress. 43 girls will take up offers at Oxbridge colleges and 11 girls will be studying in leading American universities.

Music, drama and sport responded incredibly well to the challenges of remote learning and provided a great many opportunities for students to express themselves through our online co-curricular programme. These included weekly virtual platform concerts and performances in music and drama. London Academy of Music and Dramatic Art lessons and individual music lessons continued using Zoom during the period of school closure. PE provision was comprehensively redesigned for the summer term of 2019/20 due to the circumstances. Activities chosen were well suited to the remote learning context and most likely to be feasible and accessible to all students, no matter how much space they had at home in which to engage in physical activity. Morning yoga, mindfulness sessions, 80s aerobics, dance cardio and barre were popular options within the new programme.

The school has recently significantly expanded its computer science and creative technology department as a core part of the Lower School curriculum and is developing new school directed courses in these disciplines during the next academic year to widen the offering in years 10 and 11.

The co-curricular programme remained active despite lockdown. Both students and staff embraced the opportunity to think creatively in response to the pandemic, resulting in many additions and adaptations to the range of activities available during lockdown and upon the school re-opening in September 2020. Among the highlights have been the student-led junior and senior book clubs, creative technologies clubs focusing on AI and graphical coding, virtual ceilidh dancing and a live weekly cook-along. During lockdown, a student-led arts and crafts session provided a lovely way for students of different age groups to come together in a relaxed environment after their remote lessons. Chess players continued to play matches and receive instruction from an International Master using an online platform.

Members of History Society presented a well-considered webinar on ‘The History of Racism in Britain’ amid the Black Lives Matter protests following the death of George Floyd in Minneapolis, and a further discussion of the removal of statues such as Edward Colston’s in Bristol. The new weekly Eco Discussion Group also contributed to the internal discussion on these important issues, considering the links between racial justice and environmental justice. Also related, the Inclusion Alliance grew significantly over the summer and now has a national, as well as global membership. The Alliance provided resources including an Anti-racism Toolkit and webinar for Black History Month, as well as offering advice and guidance to individual schools and GSA and GDST associations. Work is underway on creating a website and organising a national Zoom meet-up for all school inclusion committees.

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Review of Achievements and Performance for the Year (continued)

‘Broadening Horizons’ discussions were a very successful extension of our collaboration with Project Rousseau, a charitable organisation based in the USA which helps students from families living well below the poverty line to aspire towards Higher Education. Students from Year 10 to Year 13 have been participating in conversations on a wide range of topics such as ‘Harlem Renaissance Poetry’, ‘Voluntourism – Where Does Community Service Stop and Tourism Begin?’ and ‘What is Justice? Rawl’s Veil of Ignorance, Plato’s Republic , and more’.

Students in Year 12 have continued to work in teams with students at St Paul’s School in Barnes in the Young Enterprise competition, which became a virtual competition in the summer term of 2019/20. Three SPGS students belonged to a team that won two prizes in the regional round, for Sustainability and STEM.

Debating thrived since the arrival of Covid-19, due to the opportunities offered by online platforms. The Lockdown Debating League, hosted on our Zoom platform, enabled four of our teams to meet weekly for a round of debating with students from Dulwich, Westminster, Eton and Wellington. The SPGS debating teams have entered a variety of external virtual competitions, including the Active Debate junior grand final, the Stand Out Speaking U18 competition and the Gwallia World Schools Debating Competition.

SPEAC (St Paul’s Environmental Action Committee) remained dynamic. The student branch of the London & South East Schools Eco Network was established by SPGS in the spring term of 2019/20, with over a dozen state and independent schools represented. This met weekly via Zoom, with students chairing and agreeing agendas. SPGS is leading the organisation of an Online Schools Eco Summit in autumn 2020 in lieu of the postponed international climate conference (COP26) in Glasgow. This will be an international event aimed at primaries, secondaries, families & staff.

The Friday Lecture series which seeks to provide connectivity to the world beyond school and potential career inspiration was a highlight for Senior School students, and featured distinguished speakers, all leaders in their respective fields. Earlier this year, the school was proud to welcome, amongst others, Professor A.C. Grayling, Master of New College of the Humanities, Philosopher and Author; Clare Balding OBE, Presenter, Broadcaster and Author; Professor Roger Kneebone, Professor of Surgical Education and Engagement Science, Imperial College London and Bronwen Maddox, Director of the Institute for Government and journalist.

SPGS has held a Wellbeing Week every year since 2017. The activities were designed by pupils to promote positive mental health amongst the school community.

Unfortunately, the school’s programme of residential trips and exchange programmes is currently on hold, due to the Covid-19 guidance from the DfE. Departments have been finding ways to maintain these links and to continue offering students the opportunities to interact with overseas partner schools, such as using Spellian to arrange online conversations for students of Spanish and Italian.

Partnership and Community Outreach

Sharing Facilities

The school makes its sports facilities available to local schools, clubs and charities either free or for significantly discounted rates to benefit the community. Four primary schools have the use of the swimming pool for weekly sessions in normal times.

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Sharing Staff Expertise

Our staff regularly engage with pupils in maintained schools across a variety of activities as part of our focus on partnership. Our staff provided support with interviews and post-offer support to more than 100 pupils from maintained schools through our Higher Education programme. Over 50 pupils received direct tuition from our staff in maths and science until March. We have a strong link with Hammersmith Academy as well as many other local schools. Our expert talks are open to other schools and we saw a marked increase in attendance when these moved online. We were able to reach many more pupils than usual by sharing our streamed events in Science, Religious, Psychology and Philosophy Societies with schools near and far with over 160 students attending. Much of our usual activity for the latter part of the year was cancelled including the National Citizenship Scheme, Summer School and Music Junction.

Local Community Outreach

During lockdown the school raised funds to provide over 60 laptops and internet access to pupils in local primary and secondary schools. As part of our food project in the summer term, we provided almost 5000 meals to primary school pupils in Fulham. Groups of students provided entertainment using Zoom to residents of Nazareth House care home in Hammersmith.

We raised funds to support two secondary schools in providing food for pupil premium students. Our ECO Partnerships continued strongly throughout the year enabling CPD and support for other schools, as well as learning from others, to create something meaningful that will make a difference.

Pupil Community Outreach

With many of our larger projects usually taking place later in the year, there were fewer opportunities for students to get involved with partnerships projects. Nevertheless, the West London Schools ECO Partnership, now merged into the London and South-East Schools Eco Network, continued to allow pupils from across the school to work with a range of organisations and schools. Long-established projects continued in the earlier part of the year such as Minimus (Classics) and Living Library. Over 50 Paulinas worked with almost 100 primary school pupils in these projects. Primary school children were assisted with homework and secondary school students were mentored with university preparation through Into University. Support for local partner schools was provided for children with special needs and disabilities, e.g. helping to run clubs, providing extra support in lessons (currently on hold due to Covid-19). 30 students in Year 13 volunteered to be ‘buddies’ with students from partner schools, offering support in subjects, statement writing and interviewing skills. 105 students from around London signed up for this.

Our pupils also regularly engage with partner schools and indeed lockdown expanded our school community beyond the physical bricks and mortar, making our pupils accessible to communities far beyond the Borough and our usual network of schools. Some examples:

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ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

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Pupil Community Outreach (continued)

School Best Practice Sharing

The High Mistress founded and became the first chair of the West London Partnership in which staff offer support and share good practice with other schools on an ad hoc basis. Heads of department details have now been shared across the schools in the partnership.

Pupil Charitable and Volunteering Activities

The school raised money for several charitable causes. Over £25,000 was raised in the year, of which around £14,000 was split between this year’s student-chosen domestic charity, The Royal Marsden Cancer Charity, and the international charity, City Harvest. This fundraising activity has included a Year 7 sponsored swim and charity fair, numerous charity bake sales, a teachers’ version of University Challenge, and more. Additionally, students put together a concert in support of Amnesty International and organised other one-off fundraising activities in aid of charities such as the Stephen Lawrence Charitable Trust, African Science Academy in Ghana, Young Minds and Breast Cancer Now.

Pupils are involved in a wide range of volunteering activities. Those organised by the school include:

Bursaries

While remembering that SPGS is highly academically selective, providing bursary places for academically gifted pupils whose families cannot afford the fees remains a key goal and the school is working steadily to increase these. During the 2019-20 academic year, 90 girls received means-tested financial support (11.7% of the school roll), of whom 50 received full fee remission. Strategies to reach bursary candidates have included enrichment days for gifted and talented girls in the primary state sector, our annual summer school for gifted and talented primary school children, regular primary school visits and advertising through the London fee remission consortium.

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FOR THE YEAR ENDED 31 AUGUST 2020

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

Bursaries (continued)

The school encourages applications from all candidates of academic potential regardless of the family’s ability to pay fees. All applicants sit the same admissions process. Bursaries are awarded on the basis of detailed means-testing taking into account the family’s income, realisable assets and other relevant circumstances. A home visit forms part of the initial assessment and the awards are re-assessed annually. Governors review the policy to ensure that it remains appropriate and continues to support the objective of widening access to the school. The percentage reduction offered is up to 100% of the tuition fee. The total cost of means-tested bursaries in the year to 31 August 2020 was £2.1m.

The endowment fund’s investment portfolio was valued at £10,860,000 at the end of the year and the earnings of the endowment funded the equivalent of 14 full places. The school funded the equivalent of 27 full places from its operating income, and donations from generous supporters participating in the syndicates and the revenue-based bursary programme funded the remaining equivalent of 38 full places.

Fundraising

The school seeks to raise funds in support of its charitable objectives from the school community. The school’s charitable objects include the promotion of education of girls in Greater London and to conduct and maintain schools in or near Greater London. The school primarily seeks funding for means tested bursaries to widen access. This is achieved through regular donations, major donor fundraising, a legacy programme and class gifts. The school welcomed pledges and donations across all of our restricted and endowed funds of £1,107,000 in the year to 31 August 2020 thanks to many generous donors. During the year our priority was to raise monies to fund an endowed bursary for a student living in the Borough of Hammersmith & Fulham. The target sum was £750,000.

Our most significant fundraiser was a Gala Dinner and Auction attended by 283 guests in St Paul’s Church, Hammersmith, just before lockdown. Thanks to generous sponsors and donations of auction items, we were able to raise a total of £220,000 from ticket sales, successful auction bids and donations towards the endowment. We are grateful to our OP guest speaker Emily Mortimer and our OP auctioneer, Helena Newman of Sotheby’s who donated their time and expertise. A voluntary Gala committee worked hard to make the event a success.

Donations of £95,000 made by those wishing to name a leaf on the bronze Fide et Literis wreath were also raised for the endowment. The annual Pembroke Lodge fundraising event secured a further £91,000 for the endowment bringing the total pledged and raised for the endowment during the year to £406,000. The school still hopes to achieve its £750,000 endowed bursary target in 2020/21.

The 2020 Leavers Bursary faced considerable challenges due to social distancing, financial uncertainty caused by Covid-19 and electronic data regulations preventing all remote fundraising by electronic media or telephone without specific consent. Despite these obstacles, a total of £117,000 was raised thanks to generous support from leaving families to fund 56% of a seven-year bursary for a Year 7 student.

Following lock-down the school offered a 10% discount from the summer term school fees. Some families kindly donated the discount and additional sums to the school to support our community projects or to the school’s hardship bursary fund. A total of £25,000 was raised. A grant of £10,000 from Kusuma Trust UK, which had been intended for the 2020 Summer School, was kindly redesignated by their Trustees to support technology for remote learning in our partner schools. A donation of £10,000 was gratefully received by the school for rowing.

The school would like to thank St Paul’s Schools’ Foundation, Mercers’ Charitable Foundation and a number of trusts for their continuing support including John Lyon’s Charity, The Mary Bernays Scholarship Fund, The Hayden Foundation, The Staples Trust, The Aitken Family Charitable Trust, Kusuma Trust UK as well as to those who took advantage of corporate matched giving programmes at Barclays Investment Bank, Capital Group, Credit Suisse, Deutsche Bank and Rothesay Life.

Page 17

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Fundraising (continued)

The school conducts its own fundraising and does not employ professional fundraisers. The school is registered with the Fundraising Regulator and paid the voluntary levy. The school does all it can to conform to recognised standards. The school has not been made aware of any fundraising complaints. The school does not seek to raise funds from the wider general public and does not adopt unreasonably intrusive or persistent fundraising approaches, or place undue pressure on potential donors including vulnerable people.

Alumnae Activities

The alumnae relations programme at SPGS consists of a range of events and publications, enabling the school to keep in touch with alumnae (Old Paulinas, OPs) and foster goodwill throughout the alumnae community.

The Review magazine is a biannual printed publication, with a central theme, and focuses on alumnae news, fundraising projects and school updates. It works together with the e-bulletin, a less formal monthly electronic publication, to keep Old Paulinas informed of alumnae events and other OP updates. The school also promotes the use of social media for alumnae, using LinkedIn to manage a growing members-only group, and using Facebook and Twitter as an outward communication tool to promote alumnae events, highlight news and engage with Old Paulinas. In particular the e-bulletin and social media channels have been used to highlight projects OPs are involved with in relation to Covid-19 initiatives. The new OP Connect platform was successfully launched in October with over 1000 active users registered and 400 of these signed up to be a mentor. This new online space for alumnae allows the OPs to easily interact, post news items, and digitally connect within the community. The mentoring programme will continue, allowing OPs and students in Year 12 and 13 to connect with each other, enabling senior girls to seek university guidance or careers advice from those working in their field of interest. The mentoring programme has expanded with the new alumnae platform, with the aim of recruiting as many Old Paulinas as possible to become careers mentors for senior girls.

In addition to communications, the events calendar for 2019-20 engaged OPs of all ages and professions, as outlined below:

In the new upcoming academic year plans are already set for more online career focussed events with OP and student engagement, reunions and cultural based events.

Page 18

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

FINANCIAL REVIEW

Results for the Year

The financial results of the group are presented on page 27 of this report. The group generated total net income from operations of £1,575,000 of which £1,506,000 is unrestricted (before transfers between funds and investment gains and losses). The unrestricted surplus (before transfers and investment losses) represents 7.4% of total unrestricted income compared with 7.4% in the previous year.

The total income for the year ended 31 August 2020 was £22,093,000 (2019: £21,468,000) of which £18,479,000 (2019: £18,128,000) was fee income.

The total expenditure was £20,518,000 (2019: £19,713,000), the most significant expense being staff costs which represent 64% of the total expenditure. Capital expenditure in the year was £3,440,000 (2019: £1,091,000).

Having assessed the charity’s financial position, its plans for the foreseeable future, the risks to which it is exposed and the detailed cash projections the Trustees are satisfied that it remains appropriate to prepare the statements on a going concern basis.

Reserves Level and Policy

The total reserves of the school at 31 August 2020 were £47,983,000 of which unrestricted funds were £33,822,000, the pension scheme reserve deficit was £2,093,000, restricted funds were £5,422,000 and endowed funds were £10,832,000. Free reserves at 31 August 2020 were £6,740,000 (unrestricted funds less intangible fixed assets, tangible fixed assets and the pension scheme liability). Of this £5,000,000 has been designated to go towards the school’s major building redevelopment. The Rowan Trust funds within restricted funds were £849,000 at 31 August 2020.

The Governors consider that holding unrestricted cash balances of £4,500,000 during the building programme is an appropriate minimum cash reserves policy. It is proposed that the cash reserves held at 31 August 2020 in excess of this policy and will go towards funding future capital projects, including investment in the school’s estate to meet its future educational needs.

The defined benefit pension scheme for the non-teaching staff is in deficit amounting to £2,093,000 (2019: £1,364,000) which impacts on the unrestricted reserves of the school. The school has made additional contributions totalling £283,000 (2019: £283,000) in the year.

Investment Policy, Objectives and Performance

Rothschild Wealth Management has been given discretionary power to manage the restricted and endowed investment portfolio, reporting to the Investment Sub-Committee. They have been instructed to adopt a medium risk/balanced investment strategy, that the timescale for performance of the portfolio is long term (over 10 years), and that they should aim for a balance of capital growth and income exclusively in Qualifying Investments. The Investment Sub-Committee regularly reviews the performance of the Manager.

The Rothschild investment portfolio performed satisfactorily over the year to 31 August 2020, generating a total return of 5.7% ending at a valuation of £13,906,000, which includes both endowed and restricted funds, with a yield of 1.4% over the period. Since inception Rothschild has outperformed the target of CPI plus 4%.

The fee composition scheme’s assets are invested in fixed interest treasury stocks which are a low risk fixed rate of return investment. The fee composition scheme continues to be managed by Barclays Private Bank. Fixed term deposits are held at Lloyds Bank Plc.

Page 19

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

FUTURE PLANS

Targets for 2020-21

The Building Plan

The key objectives to be supported by the proposed programme of capital works within the school’s site masterplan are:

Design for the future phases of works has progressed in consultation with the school community and public consultation events were held prior to the submission of a planning application in May. Planning permission was granted in September 2020. The projects include a Centre for Design and Innovation and a new Forum building which will allow for consolidated staff work areas. Works are also proposed to the reception area and front entrance to improve safeguarding, security and accessibility, and new pastoral and wellbeing spaces will be created in the Main Building. The works to the music wing were completed in the summer.

Page 20

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

OVERSEAS SCHOOLS

The school has been investigating the feasibility of establishing schools overseas to support long-term bursary provision at SPGS and partnership activities in the local Hammersmith community.

In October 2019 SPGS International entered a joint venture with Herald Education (Hong Kong) Ltd to establish a number of SPGS International schools in China.

After visiting potential school sites, the team selected Nanshan in Shenzhen and Chengdu in Sichuan as locations for its first schools. Following a competitive bidding process, Herald Education Hong Kong Limited was selected as the preferred partner for an international school project in the High-Tech District of Chengdu.

School construction began in October 2019 and, despite a three month delay due to Covid-19, the Chengdu school will open in January 2021, a delay of one term. The primary school will open in the Spring term 2021 with children aged 3 to 5 years teaching a bespoke curriculum based on the UK early years curriculum. A British Head was appointed in January 2020 and several British and Chinese teachers have been recruited.

The second SPGS International School is scheduled to open in Shenzhen in August 2021. This will be a bilingual co-educational senior school for children aged 12 to 18. A former Deputy Head at SPGS has been appointed as Founding Head and will relocate to China as soon as travel restrictions ease.

Beyond China, the SPGS International team is exploring other overseas opportunities. In 2019, the International Director participated in a Department of International Trade schools’ mission to Vietnam and Cambodia to meet potential partners and visit schools. Other territories are also being considered.

2020/2021 objectives

RISK MANAGEMENT

Governors have ultimate responsibility for identifying the major risks that the school is exposed to and for ensuring that the senior management of the school has systems and processes in place to manage those risks. Identified risks are recorded in the school’s risk register and risks are assessed by calculating impact and likelihood scores giving a total net score after mitigating activities. Risk management principles are agreed based on the category of the risk (low, medium or high). The school’s risk register is reviewed each term by the Finance & Estates Committee and reported formally to the Board each autumn. Apart from Covid-19 risks and mitigation steps referred to above, the potential risks that are identified on the risk register, with mitigating actions, include:

Page 21

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

RISK MANAGEMENT (continued)

These risks are subject to regular review by the school’s Senior Management Team and are mitigated by the following measures:

The Governors are satisfied that there are systems in place to mitigate the major risks identified on the school’s risk register to an acceptable level. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Page 22

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Report, incorporating a strategic report and the directors’ report and financial statements in accordance with applicable law and regulations.

Company law requires the Trustees 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 Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for ensuring that adequate accounting records are maintained that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the group 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 charitable company and the group and ensuring their proper application in accordance with charity law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISCLOSURE OF INFORMATION TO AUDITOR

The following statements have been affirmed by each of the Trustees of the charitable company:

AUDITOR

Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor.

This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Governors of St Paul’s Girls’ School on 8 December 2020, including in their capacity as company directors approving the Strategic Report contained therein, and is signed as authorised on its behalf by:

Mr S Wathen Chair of Governors

Page 23

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Independent Auditor’s Report to the Members of St Paul’s Girls’ School

Opinion

We have audited the financial statements of St Paul’s Girls’ School for the year ended 31 August 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolidated Statement of Cash Flows 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 United Kingdom, including the Financial Reporting Council'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.

Page 24

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement on page 23, 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 the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Page 25

ST PAUL’S GIRLS’ SCHOOL TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Tina Allison Senior statutory auditor

For and on behalf of

Crowe U.K. LLP

Statutory Auditor

London

15 December 2020

Page 26

ST PAUL’S GIRLS’ SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING

INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
Restricted
Endowment
Notes
Funds
Funds
Funds
£’000
£’000
£’000
Income and endowments from:
Charitable activities
School fees
2
18,479
-
-
Other educational income
1,031
-
-
Voluntary sources
Grants and donations
3
337
928
562
Trading activities
Non-ancillary trading income
27
-
-
International schools
453
-
-
Investments
Investment income
110
166
-
Total income and endowments
20,437
1,094
562
Expenditure on:
Raising funds
495
80
-
Charitable activities
18,436
1,507
-
Total expenditure
4
18,931
1,587
-
Net income before investment
gains/(losses)
1,506
(493)
562
Net gains/(losses) on investments
9
(7)
162
445
Net income before transfers
1,499
(331)
1,007
Transfers between funds
16
29
258
(287)
Net income before other
recognised gains and losses
1,528
(73)
720
Pension scheme actuarial loss
18
(938)
-
-
Gains/(losses) on foreign exchange
movements
9
-
42
151
Net movement in funds
590
(31)
871
Reconciliation of funds:
Total funds brought forward
31,139
5,453
9,961
Total funds carried forward
16
31,729
5,422
10,832		 Total
Funds
2020
£’000
18,479
1,031
1,827
27
453
276
22,093
575
19,943
20,518
1,575
600
2,175
-
2,175
(938)
193
1,430
46,553
47,983		 Total
Funds
2019
£’000
18,128
1,253
1,794
44
-
249
21,468
287
19,426
19,713
1,755
614
2,369
-
2,369
(635)
(162)
1,572
44,981
46,553

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

Page 27

ST PAUL’S GIRLS’ SCHOOL

CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 AUGUST 2020

Notes
FIXED ASSETS
Tangible fixed assets
7
Intangible fixed assets
8
Investments
9
CURRENT ASSETS
Stocks
Debtors
10
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: amounts falling due
within one year
11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
LONG-TERM LIABILITIES
Creditors: amounts falling due after
more than one year
12
NET ASSETS EXCLUDING
PENSION LIABILITY
Pension scheme liability
18
NET ASSETS INCLUDING
PENSION LIABILITY
ENDOWMENT FUNDS
15 & 16
RESTRICTED FUNDS
15 & 16
UNRESTRICTED FUNDS
Designated funds
15 & 16
General funds
15 & 16
TOTAL FUNDS		 Group
2020
2019
£’000
£’000
24,989
23,012
-
10
17,677
18,702
42,666
41,724
15
132
804
621
12,622
14,910
13,441
15,663
(5,693)
(9,191)
7,748
6,472
50,414
48,196
(338)
(279)
50,076
47,917
(2,093)
(1,364)
47,983
46,553
10,832
9,961
5,422
5,453
29,989
29,512
1,740
1,627
47,983
46,553		 Charity
2020
2019
£’000
£’000
24,989
23,012
-
10
17,677
18,702
42,666
41,724
15
132
911
621
12,402
14,910
13,328
15,663
(5,693)
(9,191)
7,635
6,472
50,301
48,196
(338)
(279)
49,963
47,917
(2,093)
(1,364)
47,870
46,553
10,832
9,961
5,422
5,453
29,989
29,512
1,627
1,627
47,870
46,553		 Charity
2020
2019
£’000
£’000
24,989
23,012
-
10
17,677
18,702
42,666
41,724
15
132
911
621
12,402
14,910
13,328
15,663
(5,693)
(9,191)
7,635
6,472
50,301
48,196
(338)
(279)
49,963
47,917
(2,093)
(1,364)
47,870
46,553
10,832
9,961
5,422
5,453
29,989
29,512
1,627
1,627
47,870
46,553
41,724
132
621
14,910
15,663
(9,191)
6,472
48,196
(279)
47,917
(1,364)
46,553
9,961
5,453
29,512
1,627
46,553

The school has taken the exemption from presenting its unconsolidated statement of financial activities under section 408 of the Companies Act 2006. The net income of the school in 2020 was £2,062,000 (2019: £2,369,000).

Approved by the Board of Governors of St Paul’s Girls’ School on 8 December 2020 and authorised for issue and signed on its behalf by:

Mr S Wathen Mrs Z Bain Chair of Governors

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

Page 28

ST PAUL’S GIRLS’ SCHOOL CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Notes
NET CASH FLOWS FROM OPERATIONS
Net cash used by operating activities
19
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income and bank interest received
Investment management charges
Purchase of tangible fixed assets
Withdrawals from investments portfolio
Proceeds from the sale of tangible fixed assets
Purchase of investments
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Receipt of endowment
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
20		 2020
£’000
£’000
(1,453)
302
(79)
(3,440)
4,342
2
(2,524)
(1,397)
562
562
(2,288)
14,910
12,622		 2019
£’000
7,133
238
(79)
(1,091)
2,783
2
(3,146)
(1,293)
231
231
6,071
8,839
14,910

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

Page 29

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

St Paul's Girls' School is a Public Benefit Entity registered as a charity in England and Wales (charity number: 1119613) and a company limited by guarantee (company number: 06142007). Its registered office is St Paul’s Girls’ School, Brook Green, London W6 7BS.

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

St Paul's Girls' School meets the definition of a Public Benefit Entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The school has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement with the consolidated financial statements.

The functional currency of the school is considered to be GBP because that is the currency of the primary economic environment in which the school operates.

1.2 Going concern

As highlighted in the Trustees’ report, having assessed the charity’s financial positon, its plans for the foreseeable future, the risks to which it is exposed and the detailed cash projections the Trustees are satisfied that it remains appropriate to prepare the financial statements on a going concern basis.

1.3

Critical accounting judgements and key sources of estimation uncertainty

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

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

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:

Pension liabilities – The charity recognises its liability to its defined benefit pension scheme which involves a number of estimations as disclosed in note 18.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the school’s financial statements.

1.4 Basis of Consolidation

The consolidated financial statements incorporate the financial statements of the Charity and its 100% owned subsidiary, SPGS International Limited (Company number 12094047) which was incorporated on 9 July 2019 to contract with third parties to establish SPGS International schools overseas.

Page 30

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

1.5 Fees and similar income

Fees receivable and charges for services and use of premises are accounted for in the year in which services are provided.

Fees receivable are stated after deducting bursaries, scholarships and other remissions allowed by the school, but include contributions received from restricted bursary funds and third parties.

Registration fees are non-refundable and are credited to income when received.

Deposits are included as a liability until refunded or, on ceasing to be refundable, are credited to income. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The school does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held is included within current liabilities.

Advance fees are treated as deferred income and are credited to income as and when they fall due.

1.6 Income

Rents are stated gross and are included on an accruals basis. Interest is included on an accruals basis. Dividends from investment funds are included as receivable on the due dates.

1.7 Donations

Donations are accounted for in the financial year in which they are received. Donations received for the general purposes of the school are credited to unrestricted funds. Donations subject to specific wishes of the donors are credited to the relevant restricted fund or to endowment funds where the amount is held as expendable capital. Donations and legacies are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the school is considered probable.

1.8 Government Grants

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.

1.9 Expenditure

All expenditure is included on an accruals basis and is allocated to activities on a direct basis. Support costs mainly represent office administration. Irrecoverable VAT is charged to the Statement of Financial Activities as incurred. Governance costs comprise the costs of running the school, including strategic planning for its future development, external audit, legal advice and all the costs of complying with constitutional and statutory requirements.

Grants payable are charged in the year when the offer is conveyed to the recipient in cases where the offer is conditional, such grants being recognised as expenditure when the conditions have been fulfilled. Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

Page 31

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

1.10 Intangible fixed assets and amortisation

Intangible assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment.

Intangible assets comprise software costs which are amortised on a straight line basis over 4 years.

1.11 Tangible fixed assets and depreciation

All assets purchased are included at their purchase price, together with any incidental expenses of acquisition. Assets with a cost below £5,000 are not capitalised.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Charitable properties - 20 - 50 years Furniture, fittings and equipment - 4 - 10 years IT equipment - 3 - 4 years

Assets held under construction are not depreciated until they are brought into use.

1.12 Investments

Investments are stated at market value.

Unrealised gains and losses for the year reflect the movement in market values. Realised gains and losses represent the difference between proceeds on disposal and the market value brought forward. All gains and losses are shown net in the Statement of Financial Activities.

Cash held by investment managers, not expected to be utilised by the school other than for investing activity, is also classified as investments.

1.13 Operating leases

Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.

1.14 Stocks

Stock represents books and kitchen supplies and is stated at the lower of cost and estimated realisable value. All stock is finished goods and goods for resale.

1.15 Debtors

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

1.16 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a maturity of six months or less from the date of acquisition or opening of the deposit or similar account.

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ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

1.17 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the school anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.18 Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand and debtors, excluding prepayments. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand comprises cash held in instant access bank accounts and used as working capital and short term deposit accounts. Financial liabilities held at amortised cost comprise all creditors except deferred income, including fees in advance, social security and other taxes and provisions.

1.19 Pensions

The school contributes to the Teachers' Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multi- employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the school. In accordance with FRS 102 therefore, the scheme is accounted for as a defined contribution scheme.

The school also contributes to the St Paul's Schools' Non-Teaching Staff Pension Fund. The school has fully adopted the requirements of FRS 102. Following the closure of the non-teaching staff defined benefits scheme to new members, certain non-teaching members of staff contribute into a separate defined contribution scheme. Costs associated with this scheme are charged to the Statement of Financial Activities when incurred.

1.20 Fund accounting

The school has three types of funds:

Endowment - where the capital is held in perpetuity to generate distributable income;

Restricted - where the purposes for which the funds may be used have been restricted by donors;

Unrestricted - where the fund is not restricted as to use other than in furthering the objects of the school. These include designated funds, where the funds are unrestricted but the Trustees have designated them for a specific purpose.

1.21 The Rowan Education Trust

The Charity Commission for England and Wales under the power given in the Charities Act 2011 appointed St Paul’s Girls’ School as sole corporate trustee of the Rowan Education Trust (Charity number 280158) as of 6 April 2018.

Page 33

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. SCHOOL FEES

SCHOOL FEES
The school’s fee income comprised_:_
Gross fees
Less: total bursaries, scholarships and allowances
Add: bursaries and other awards paid for by restricted funds		 Group
2020
£’000
19,288
(2,218)
17,070
1,409
18,479
2019
£’000
18,990
(2,342)
16,648
1,480
18,128

3. GRANTS AND DONATIONS

Grants and donations includes:
Donations
Legacies
Trusts and Foundations
Corporate donations
Government Job Retention Scheme grant		 Group
2020
2019
£’000
£’000
1,165
1,236
10
250
303
276
26
32
323
-
1,827
1,794		 Group
2020
2019
£’000
£’000
1,165
1,236
10
250
303
276
26
32
323
-
1,827
1,794
1,794

Page 34

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

4. ANALYSIS OF GROUP EXPENDITURE

Raising funds:
Financing
Fundraising
Non-ancillary trading
Investment management
International schools
Charitable activities:
Education
Welfare
Premises
Support costs and governance
Grants, awards and prizes
Ancillary trading costs
Total Group expenditure		 Staff
costs
Amortisation and
Depreciation
Other costs
£’000
£’000
£’000
-
-
30
162
-
20
-
-
-
-
-
79
208
-
76
370
-
205
9,841
88
1,881
663
-
357
797
1,385
1,473
1,451
-
340
-
-
1,410
24
-
233
12,776
1,473
5,694
13,146
1,473
5,899		 Total
2020
£’000
30
182
-
79
284
575
11,810
1,020
3,655
1,791
1,410
257
19,943
20,518		 Total
2019
£’000
30
175
3
79
-
287
11,007
1,024
3,786
1,839
1,500
270
19,426
19,713

Support costs include governance costs of £104,000 (2019: £94,000).

2019 ANALYSIS OF GROUP EXPENDITURE

Raising funds:
Financing
Fundraising
Non-ancillary trading
Investment management
Charitable activities:
Education
Welfare
Premises
Support costs and governance
Grants, awards and prizes
Ancillary trading costs
Total Group expenditure		 Staff
costs
Amortisation and
Depreciation
Other costs
£’000
£’000
£’000
-
-
30
159
-
16
-
-
3
-
-
79
159
-
128
8,968
86
1,953
601
-
423
752
1,285
1,749
1,453
-
386
-
-
1,500
27
-
243
11,801
1,371
6,254
11,960
1,371
6,382		 Total
2019
£’000
30
175
3
79
287
11,007
1,024
3,786
1,839
1,500
270
19,426
19,713

Page 35

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

5. AUDITOR’S REMUNERATION

Fees payable (excluding irrecoverable VAT) to the group’s auditor and its
associates in respect of:
The auditing of accounts of the group
All other non-audit services not included above
6. STAFF COSTS AND GOVERNOR COSTS
Staff costs for the group were as follows:
Wages and salaries
Social security costs
Pension contributions
Peripatetic costs
Medical insurance		 2020
£’000
25
26
2020
£’000
9,888
1,125
1,858
223
52
13,146		 2019
£’000
23
19
2019
£’000
9,203
1,051
1,426
230
50
11,960

During the year there were redundancy or termination payments made totalling £164,000 (2019: £nil). There was £nil (2019: £nil) outstanding at the year-end in respect of these payments.

The average number of employees in the year was 249 (2019: 239) of which 126 (2019: 119) were teaching staff.

The number of employees whose emoluments exceeded £60,000 were:

2020 2019
£ 60,000 - £69,999 32 36
£ 70,000 - £79,999 13 10
£ 80,000 - £89,999 2 6
£ 90,000 - £99,999 4 2
£100,000 - £109,999 2 2
£130,000 - £139,999 - 1
£150,000 - £159,999 1 -
£210,000 - £219,999 - 1
£240,000 - £249,999 1 -

Contributions of £797,000 (2019: £599,000) were made to the Teachers’ Pension defined benefits scheme for 48 of the higher paid employees (2019: 51 employees). Contributions were made to a defined contribution scheme for 7 of the higher paid employees of £76,000 (2019: 7 employees - £78,000).

Aggregate employee benefits of key management personnel 2020
2019
£’000
£’000
1,385
1,200

The Governors have not received any emoluments during the year (2019: £nil). Two Governors (2019: three) incurred travel and subsistence expenses of £1,528 (2019: £3,650) which were reimbursed or paid for directly by the school. Governors received gifts worth £323 (2019: £265).

Page 36

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

7. TANGIBLE FIXED ASSETS

Group and Charity
Assets
Charitable
under
Properties Construction
£’000
£’000
Cost
At 1 September 2019
27,593
258
Additions
1,427
1,230
Disposals
-
-
At 31 August 2020
29,020
1,488
Depreciation
At 1 September 2019
5,812
-
Charge for the year
1,003
-
Disposals
-
-
At 31 August 2020
6,815
-
Net book value
At 31 August 2020
22,205
1,488
At 31 August 2019
21,781
258
8.
INTANGIBLE FIXED ASSETS
Group and Charity
Cost
At 1 September 2019 and 31 August 2020
Amortisation
At 1 September 2019
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Furniture
Fittings and
IT
Equipment
Equipment
Total
£’000
£’000
£’000
3,153
1,209
32,213
142
641
3,440
(59)
(149)
(208)
3,236
1,701
35,445
2,632
757
9,201
165
295
1,463
(59)
(149)
(208)
2,738
903
10,456
498
798
24,989
521
452
23,012
Computer
Software
£’000
37
27
10
37
-
10

Page 37

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

9. INVESTMENTS

Group and Charity

Group and Charity
Listed
Investments
£’000
Valuation at 1 September 2019
13,332
Additions
2,456
Disposal proceeds
(2,802)
Gains on foreign exchange movements
-
Gains on investments
600
At 31 August 2020
13,586
Historical cost of investments
10,610
The breakdown of listed investments is as follows:
UK equities
Overseas equities
Fixed interest - UK
Alternative investments - UK
Alternative investments - overseas
At 31 August 2020		 Cash
£’000
5,370
68
(1,540)
193
-
4,091
4,091
2020
£’000
2,788
6,921
2,979
822
76
13,586		 Total
2020
£’000
18,702
2,524
(4,342)
193
600
17,677
14,701
2019
£’000
2,762
6,105
3,651
814
-
13,332

The total amount of UK investments is £6,589,000 (2019: £7,227,000) and the total amount of overseas investments is £6,997,000 (2019: £6,105,000).

Investments in subsidiaries
DEBTORS
Fees debtors
Loans to staff
Sundry debtors
Amounts owed by group undertakings
Prepayments and accrued income		 Group
2020
2019
£
£
-
-
Group
2020
2019
£’000
£’000
61
13
34
57
404
218
-
-
305
333
804
621		 Charity
2020
2019
£
£
1
-
Charity
2020
2019
£’000
£’000
61
13
34
57
181
218
363
-
272
333
911
621

10. DEBTORS

The loans to staff mainly represent housing loans to teaching employees of the school. The loans are repayable over periods of one to five years and are interest free while employees remain at the school.

Page 38

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

11. CREDITORS: amounts due within one year

CREDITORS: amounts due within one year
Trade creditors
Social security and other taxation
Fees received in advance
Refundable deposits (note 13)
Advanced fees scheme (note 13)
Other creditors
Accruals		 Group and Charity
2020
2019
£’000
£’000
837
893
277
263
777
4,680
2,746
2,574
85
105
280
61
691
615
5,693
9,191
9,191

12. CREDITORS: amounts due after more than one year

Fees received in advance
Advanced fees scheme (note 13)
Accruals		 Group and Charity
2020
2019
£’000
£’000
155
54
140
225
43
-
338
279		 Group and Charity
2020
2019
£’000
£’000
155
54
140
225
43
-
338
279
279

Page 39

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13. REFUNDABLE DEPOSITS AND ADVANCED FEES SCHEME

Refundable Deposits

Deposits are placed when pupils join the school and credited against fees and disbursements for their last term. The Governors have reviewed the contract terms under which pupil fee deposits are held by the school. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The school does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2020 have been included within current liabilities. The prior year pupil fee deposits balance has been similarly represented.

The total amount held in relation to fee deposits of £2,746,000 is included in note 11 above. In the normal course of business the expected repayment of these amounts will be £356,000 within one year and £2,390,000 after more than one year.

Advanced fees scheme

Parents may enter into a contract to pay to the school up to the equivalent of seven years’ fees in advance. The money may be returned subject to specific conditions on the receipt of one term’s notice. Assuming pupils will remain in the school, the contractual liability of the school is shown below.

Within one year
After more than one year:
Between one and two years
Between two and five years
Over five years
Total		 Group and Charity
2020
2019
£’000
£‘000
85
105
57
85
83
112
-
28
225
330		 Group and Charity
2020
2019
£’000
£‘000
85
105
57
85
83
112
-
28
225
330
330

Advanced fees represent the accrued liability under the contracts; appropriate investments are held so that on maturity the proceeds will match these liabilities. The movements during the year were:

At 1 September 2019
Amounts accrued to contracts
New contracts
Amounts utilised in payment of fees
At 31 August 2020		 Group and Charity
2020
2019
£’000
£’000
330
41
1
1
-
347
(106)
(59)
225
330		 Group and Charity
2020
2019
£’000
£’000
330
41
1
1
-
347
(106)
(59)
225
330
330

Page 40

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14. GROUP FINANCIAL INSTRUMENTS

GROUP FINANCIAL INSTRUMENTS
2020 2019
£’000 £’000
Financial assets measured at amortised cost (a) 13,090 15,121
Financial assets measured at fair value (b) 17,677 18,702
Financial liabilities measured at amortised cost (c) (4,791) (4,527)

(a) Financial assets include cash, trade and fee debtors, sundry debtors and accrued income.

(b) Financial assets measured at fair value include assets held as investments.

Income received in the year from financial assets measured at amortised cost totalled £107,000 (2019: £113,000). During the year, total gains in relation to financial assets held at fair value totalled £793,000 (2019: £452,000) and income received totalled £169,000 (2019: £136,000).

15. ANALYSIS OF NET ASSETS

The group’s net assets are held for various funds and advance fees as follows:

Tangible fixed assets
Investments
Net current assets/(liabilities)
Long term liabilities and pension deficit		 Unrestricted
funds
£’000
24,989
3,771
5,400
(2,431)
31,729		 Restricted
funds
Endowment
funds
£’000
£’000
-
-
3,046
10,860
2,376
(28)
-
-
5,422
10,832		 Total
funds
£’000
24,989
17,677
7,748
(2,431)
47,983
Analysis of net assets between funds - prior year
Unrestricted
funds
£’000
Intangible fixed assets
10
Tangible fixed assets
23,012
Investments
5,415
Net current assets/(liabilities)
4,345
Long term liabilities and pension deficit
(1,643)
31,139		 Restricted
funds
£’000
-
-
3,197
2,256
-
5,453		 Endowment
funds
£’000
-
-
10,090
(129)
-
9,961		 Total
funds
£’000
10
23,012
18,702
6,472
(1,643)
46,553

Page 41

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. GROUP STATEMENT OF FUNDS

Statement of funds – current year

At 1
September
2019
£’000
Endowed funds
Bursary funds
9,953
Prize funds
8
9,961
Restricted funds
Foundation bursary funds
4,410
Rowan Trust fund
814
Partnership/community
1
Prize funds
87
Sundry restricted funds
141
5,453
Unrestricted funds
General reserves
1,627
Designated funds -
buildings
6,500
Designated fixed asset
fund
23,012
31,139
Total funds
46,553		 Income
Expenditure
£’000
£’000
562
-
-
-
562
-
894
(1,457)
10
(32)
42
(39)
1
(1)
147
(58)
1,094
(1,587)
20,437
(18,931)
-
-
-
-
20,437
(18,931)
22,093
(20,518)		 Transfers
£’000
(287)
-
(287)
361
-
-
-
(103)
258
(448)
(1,500)
1,977
29
-		 Gains/
(losses)
£’000
595
1
596
142
57
-
5
-
204
(945)
-
-
(945)
(145)		 At 31
August
2020
£’000
10,823
9
10,832
4,350
849
4
92
127
5,422
1,740
5,000
24,989
31,729
47,983

Endowed funds

Endowed funds are for bursary and prize funds. For these funds the capital is endowed and the arising income is restricted for the expenditure as shown by the type of endowment fund. All endowed funds are expendable endowments.

Restricted funds

The bursary funds represent accumulated income on various restricted and endowed gifts intended to fund bursaries for pupils. The prize fund represents the accumulated income on various endowed and restricted gifts intended to fund the award of various annual prizes. The sundry restricted fund represents the accumulated income on a number of small donations received to fund specific projects.

A transfer of £296,000 (2019: £316,000) between restricted and endowed funds has been made to reflect the value of endowed bursaries funded from capital gains.

Other restricted transfers relate to capital goods purchased with donated monies for which the restriction on these funds have been met.

Page 42

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. GROUP STATEMENT OF FUNDS (continued)

Designated funds

The buildings fund was set up by the Trustees during the period to 31 August 2015 to set aside an amount towards the school’s building redevelopment. £1,786,000 (2019: £239,000) of the designated funds has been spent in the year. A transfer of £286,000 (2019: £1,239,000) from unrestricted general reserves to the designated fund was made at 31 August 2020.

The designated fund for fixed assets represents resources invested in the school's tangible fixed assets. The fund is therefore not readily available for other purposes.

Statement of funds – prior year

At 1
September
2018
£’000
Endowed funds
Bursary funds
9,636
Prize funds
8
9,644
Restricted funds
Foundation bursary
funds
3,975
Rowan Trust fund
825
Prize funds
86
Buildings
-
Sundry restricted
funds
145
5,031
Unrestricted
funds
General reserves
24,806
Designated funds -
buildings
5,500
Designated fixed
asset fund
-
30,306
Total funds
44,981		 Income
Expenditure
£’000
£’000
231
-
-
-
231
-
1,613
(1,531)
8
(32)
4
(4)
1
-
58
(37)
1,684
(1,604)
19,553
(18,109)
-
-
-
-
19,553
(18,109)
21,468
(19,713)		 Transfers
£’000
(316)
-
(316)
316
-
-
(1)
(24)
291
(23,987)
1,000
23,012
25
-		 Gains/
(losses)
£’000
402
-
402
37
13
1
-
-
51
(636)
-
-
(636)
(183)		 At 31
August
2019
£’000
9,953
8
9,961
4,410
814
87
-
142
5,453
1,627
6,500
23,012
31,139
46,553

17. CAPITAL COMMITMENTS

At 31 August 2020 the charitable group had capital commitments as
follows:
Contracted for but not provided in these financial statements		 Page 43
2020
2019
£’000
£’000
985
380

ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18. PENSION SCHEMES

Defined benefit schemes

Teachers’ Pension 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 £1,447,000 (2019: £1,002,000) and at the year-end £176,000 (2019: £137,000) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

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.

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ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18. PENSION SCHEMES (continued)

Non-Teaching Staff Pension Fund

St Paul's Girls’ School's Pension Scheme for non-teaching staff operates a defined benefit scheme in the UK which provides both pensions in retirement and death benefits to members. Pension benefits are related to the members' final salary at retirement and their length of service.

Since 1 November 2006 the scheme has been closed to new members and closed to future accrual since 1 January 2016.

A full actuarial valuation of the scheme was carried out as at 31 August 2017 and has been updated to 31 August 2020 by a qualified independent actuary. The major assumptions used by the actuary were (in nominal terms) as follows:

Principal actuarial assumptions at the balance sheet date

Discount rate
Inflation assumption (RPI)
Inflation assumption (CPI)
Rate of increase in salaries
5% LPI pension increases
2.5% LPI pension increases
Assumed life expectancy in years at age 60:
Retiring today - Males
Retiring today - Females
Retiring in 20 years’ time - Males
Retiring in 20 years’ time - Females
The amounts recognised in the balance sheet are as follows
Present value of funded obligations
Fair value of scheme assets
Net liability		 2020
2019
1.50%
1.70%
3.20%
3.20%
2.70%
2.20%
2.70%
2.60%
2.70%
2.20%
2.20%
1.95%
2020
2019
26.3
26.6
28.6
28.7
27.8
28.1
30.1
30.3
2020
£’000
2019
£’000
(8,039)
(7,486)
5,946
6,122
(2,093)
(1,364)

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ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18. PENSION SCHEMES (continued)

Changes in the present value of the defined benefit obligation

Opening defined benefit obligation
Interest cost
Actuarial losses
Benefits paid (excluding expenses)
Closing defined benefit obligation
Changes in the fair value of the scheme assets
Opening fair value of scheme assets
Interest income
Expected return on scheme assets
Benefits paid
Contributions by employer
Expenses paid
Closing fair value of scheme assets
The amounts included within the Statement of Financial Activities
Service cost – administrative costs
Net interest on the net defined benefit liability
Total charged to the Statement of Financial Activities
Net actuarial losses recognised in the year
Return on assets, excluding interest income
Pension scheme actuarial losses		 2020
£000
7,486
125
661
(233)
8,039
2020
£’000
6,122
104
(277)
(233)
283
(53)
5,946
2020
£’000
53
21
74
661
277
938		 2019
£000
6,655
170
897
(236)
7,486
2019
£’000
5,749
149
262
(236)
283
(85)
6,122
2019
£’000
85
21
106
897
(262)
635

The school expects to contribute £283,000 to the scheme in the year to 31 August 2021.

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ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18. PENSION SCHEMES (continued)

The major categories of scheme assets are:
Value at
31 August 2020
31
£’000
Absolute return fund
2,990
Equities
2,764
Secured pensions
178
Cash and other assets
14
Fair value of scheme assets
5,946		 Value at
August 2019
£’000
3,041
2,784
190
107
6,122

The actual return on the scheme assets is -£173,000 (2019: £411,000).

The employer contributions in the year payable by the school in respect of non-teaching staff was £283,000 (2019: £283,000). The pension cost charge in the year in respect of the non-teaching staff defined contribution scheme was £366,000 (2019: £344,000).

19. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATIONS

Net income for the year
Non-operating cash flows eliminated:
-Investment income
-Endowment donations
-Investment management charges
Defined benefit pension scheme adjustments
Depreciation and amortisation charge
Profit from the disposal of tangible fixed assets
Asset impairment
Decrease in stocks
Increase in debtors
(Decrease)/increase in advanced fee scheme creditors
Increase in refundable deposits
(Decrease)/increase in creditors (excluding advanced fee scheme and
deposits)
Net cash (outflow)/inflow from operations
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank
Deposits
Total		 Group
2020
2019
£’000
£’000
1,575
1,755
(276)
(249)
(562)
(231)
79
79
(209)
(177)
1,473
1,371
(2)
(2)
-
184
117
-
(209)
(18)
(105)
289
172
190
(3,506)
3,942
(1,453)
7,133
Group
2020
2019
£’000
£’000
4,622
10,281
8,000
4,629
12,622
14,910
2019
£’000
1,755
(249)
(231)
79
(177)
1,371
(2)
184
-
(18)
289
190
3,942
7,133

20. ANALYSIS OF CASH AND CASH EQUIVALENTS

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ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

21. OPERATING LEASE COMMITMENTS

At 31 August 2020, the group had annual commitments under non-cancellable operating leases as follows:

Within one year
Between one and five years		 2020
£’000
83
52
135		 2019
£’000
98
66
164

22. RELATED PARTY TRANSACTIONS

The following transactions occurred during the year with related parties:

St Paul’s Schools Foundation is a charitable trust of the Mercers’ Company. The Mercers’ Company is the sole member of St Paul’s Girls’ School.

St Paul’s Schools Foundation made a £50,000 (2019: £50,000) grant towards bursaries and a £25,000 grant for a partnership coordinator.

Mercers' Charitable Foundation made a £10,000 (2019: nil) grant in response to Covid-19.

The school paid rent of £1,000 (2019: £1,000) to St Paul’s Schools Foundation during the year. £416 (2019: £416) remains outstanding at year end.

The High Mistress is a trustee of The School and Family Works Ltd. The school contributed £17,219 towards a food bank initiative and the costs of providing family groups. At year-end there was a £6,000 prepayment (2019: £6,000 prepayment).

The school also incurred consultancy costs of £6,666 to Anatta Ltd, a company owned by a partner of a deputy head (key management personnel). No balance remained at year-end.

23. SPGS INTERNATIONAL LIMITED

The school owns all of the issued share capital of SPGS International Limited, a company incorporated in England and Wales (Company number 12094047), whose registered office is St Paul’s Girls’ School, Brook Green, London W6 7BS. This company contracts with third parties to establish SPGS International schools overseas.

In the year ended 31 August 2020, SPGS International Limited had a turnover of £453,333 (2019: £nil), gross profit of £425,811 (2019: nil) and a profit before gift aid of £113,186 (2019: nil).

In the year ended 31 August 2020, the school charged £312,625 (2019: nil) to SPGS International for the provision of staff and administration charges. The balance owed to the school by SPGS International on 31 August 2020 was £362,938 (2019: nil).

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ST PAUL’S GIRLS’ SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

24. PRIOR YEAR GROUP STATEMENT OF FINANCIAL ACTIVITIES

Income and endowments from:
Charitable activities
School fees
Other educational income
Trading activities
Non-ancillary trading income
Investments
Investment income
Voluntary sources
Grants and donations
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income before investment
gains/(losses)
Net gains/(losses) on investments
Net income before transfers
Transfers between funds
Net income before other recognised
gains and losses
Pension scheme actuarial loss
Losses on foreign exchange movements
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£’000
18,128
1,253
44
114
14
19,553
208
17,901
18,109
1,444
(1)
1,443
25
1,468
(635)
-
833
30,306
31,139		 Restricted
Endowment
Funds
Funds
£’000
£’000
-
-
-
-
-
-
135
-
1,549
231
1,684
231
79
-
1,525
-
1,604
-
80
231
92
523
172
754
291
(316)
463
438
-
-
(41)
(121)
422
317
5,031
9,644
5,453
9,961		 Total
Funds
2019
£’000
18,128
1,253
44
249
1,794
21,468
287
19,426
19,713
1,755
614
2,369
-
2,369
(635)
(162)
1,572
44,981
46,553

Page 49