2020-08-31-accounts

	Page
Report of the Trustees	1-9
Report of the Independent Auditors	10-12
Statement of Financial Activities	13
Balance Sheet	14
Statement of cash flows	15
Notes to the Financial Statements	16-32

Registered Company number	06223076 (England and	Wales)
Registered Charity number	1122269
Registered office	Sandhutton
	Breckenbrough
	Thirsk
	Y07 4EN
Trustees
	Judith Campbell	Deputy chair
		Resigned 15.11.2019
	Alison Clarke	Chair
	Ruth Melighe	Deputy Chair from 15.11.2019
	Stefan Lewicki
	John Littlefair
	John Margham
	Kirit Gordhandas	Appointed 01.01.2021
	Fleur Parker	Appointed 01.01.2021
Key Management Personnel
	Headteacher	Simon Bannister
	Deputy Headteacher	James Shutt
	Head of Social Education	Stuart Edwards
	Bursar	Sue Jones
Auditors	Saffery Champness LLP
	Mitre House
	North Park Road
	Harrogate
	North Yorkshire
	HG15RX
Solicitors	North Yorkshire County	Council
	County Hall
	Northallerton
	DL7 8AD
	Page 1

Breckenbrough School Limited

Report of the Trustees

for the Year Ended 31 August 2020

Reference and administrative details (continued)

Bankers	Barclays Bank plc
	25 St James Street
	Harrogate
	HG1 1ZT
Insurers	Innovation Broking
	20 St Dunstan’s Hill
	London
	EC3R 8HL
Co-opted Members	Richard Clarke
	Sally Burton
Staff Representative Governors	Richard Kendrick
Headteacher	Simon Bannister
Appointed by North Yorkshire
County Council	Robert Baker
Parent Governors	Carl Wright
	Daniel Hunter Appointed 12.06.2020

Page 2

16 March 2021

					2020	2019
		Unrestricted	Restricted	Endowment	Total funds	Total funds
		funds	funds	funds
	Notes	£	£	£	£	£
Income and endowments
from:
Donations and legacies Charitable activities Other trading activities	3 32,203 3,355,500 701,266 1,366 -
Investments Other
Expenditure on:
Raising funds		1,382			1,382	3,196
Charitable activities	6	ЗД41,005	733,469		3,874,474	3,792,889
Total		3,142,387	733,469		3,875,856	3,796,085
Net income		236,301		323	236,624	260,693
Transfers between funds	18	323		(323)
Other recognised
gains/(iosses)
Remeasurement (loss) on		(1,000)			(1,000)	(15,000)
pension provision
Net movements in funds
Reconciliation of funds:
Total funds brought forward		1,804,227	9,620	133,079	1,946,926	1,701,233
Total funds carried forward		2,039,851	9,620	133,079	2,182,550	1,946,926

		2020	2019
	Notes	£	£
Fixed assets
Tangible assets	11	1,243,817	1,070,397
Investments	12	48,761	48,682
		1,292,578	1,119,079
Current assets
Stocks		4,451	4,714
Debtors	13	1,087,227	975,048
		1,385,372	1,343,089
		2,477,050	2,322,851
Creditors
Amounts falling due within one year	14	(1,489,078)	(1,372,004)
Net current assets		987,972	950,847
Total assets less current liabilities
		2,280,550	2,069,926
Creditors
Amounts falling due after more than one year 15		(98,000)	(123,000)
Net assets		2,182,550	1,946,926
Funds
Unrestricted funds-general	18	1,739,851	1,504,227
Unrestricted funds - designated		300,000	300,000
Restricted funds		9,620	9,620
Endowment funds		133,079	133,079
Total funds		2,182,550	1,946,926

		2020	2019
	Notes	£	£
Cash flows from operating activities
Net cash provided by operating activities	20	385,008	471,302
Cash flows from investing activities
Interest from investments		323	318
Purchases of property, plant and equipment		(264,536)	(56,360)
		(264,213)	(56,042)
Cash flows from financing activities
Repayments of borrowing		(78,433)	(26,891)
		(78,433)	(26,891)
Change in cash and cash equivalents in the		42,362	388,369
reporting period
		1,391,771	1,003,402
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the	21	1,434,133	1,391,771
reporting period

			Cash flows At 31 Aug 2020	Cash flows At 31 Aug 2020	Cash flows At 31 Aug 2020
Loans falling due within	1	year	(78,433) 78,433
			(78,433)	78,433
Total			1,313,338	120,795	1,434,133

Freehold properties	2% - Straight line
Equipment, fixtures and fittings	20% - Reducing balance {except boilers 4% straight line)
Computer equipment	33.3% - Straight line
Motor vehicles	25% - Reducing balance

2.	Comparative SOFA
		Unrestricted		Restricted	Endowment	Total
			funds	funds	funds	funds
						2019
			£	£	£	£
	Donations and legacies Charitable activities
	Other trading activities Investments Other
	Raising funds 3,196					ЗД96
	Charitable activities		3,180,923	611,966		3,792,889
	Total		ЗД84Д19	611,966		3,796,085
	Net income		260,375		318	260,693
3.	Income from donations and legacies
		Unrestricted	Restricted	Endowment
		funds	funds	funds	2020	2019
		£	£	£	£	£
	Donations	867	6,025		6,892	3,472
	Grants		26,178		26,178	20,080
		867	32,203		33,070	23,552
4.	Income from charitable activities
		Unrestricted	Restricted	Endowment
		funds	funds	funds	2020	2019
		£	£	£	£	£
	Fees Recharges for
	other costs
	ESFA
	Other income
	and grants

	Unrestricted	Restricted	Endowment
	funds	funds	funds	2020	2019
	£	£	£	£	£
RHI and FIT income School Trips
Computing and cycle
to work scheme
Other

	Direct costs	Support costs	2020	2019
	£	£	£	£
School	2,952,817	587,816	3,540,633	3,445,659
Welfare	16,282		16,282	52,837
Premises	317,559		317,559	294,393
	3,286,658	587,816	3,874,474	3,792,889

			Information	Human
	Management	Finance	technology	resources	Totals
	£	£	£	£	£
School	488,498	17,940	78,535	2,843	587,816
Support costs, included in	the above, are as follows:
				2020	2019
				£	£
Wages Social security
Pensions Hire of plant and machinery
Insurance Postage and stationery
Travelling and motor Professional fees
Bank charges Computer licences and IT
Recruitment Governance

	2020	2019
	£	£
Governors' travel	388	738
Auditors' remuneration	9,360	15,383
Auditors' remuneration for non-audit work	3,840	3,000
Depreciation - owned assets	87,911	83,025
Loss on disposal of fixed assets	3,205	6,301
Hire of plant and machinery	66,891	76,738

	2020	2019
	£	£
Wages and salaries Social security costs
Other pension costs
Supply staff costs	61,836	207,400
	3,006,907	2,806,722

The average monthly number of employees during the year was as follows:
	2020	2019
Teaching and counselling	40	38
Domestic	7	12
Care	17	20
Administration	8	12
	72	82

		2020	2019
£60,000	to £70,000
£70,001	to £80,000
£80,001	to £90,000	1	1

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2020

11. Tangible fixed assets

Cost At 1 September 2019 Additions Disposals At 31 August 2020 Depreciation At 1 September 2019 Charge for year Disposals At 31 August 2020 Net book value At 31 August 2020 At 31 August 2019	Land and buildings Plant and machinery etc £ £ 974,149 874,798 154,971 109,565 - (48,898) 1,129,120 935,465 251,168 527,382 19,732 68,179 - (45,693) 270,900 549,868 858,220 385,597 722,981 347,416	Totals £ 1,848,947 264,536 (48,898) 2,064,585 778,550 87,911 (45,693) 820,768 1,243,817 1,070,397

Included in cost or valuation of land and buildings is freehold land of £500 (2019 - £500)

The Company is the Custodian Trustee of the Breckenbrough School Charitable Trust and also the sole Trustee entrusted to manage the affairs of that Charitable Trust which includes the permanent endowment property and investments as indicated in note 18 of these financial statements. Financial Reporting Statement 102 requires that the substance of an entity's transactions is reported in its financial statements.

This requires that the commercial effect of a transaction and any resulting assets, liabilities, or gains and losses are shown and that the accounts do not merely report the legal form of a transaction. Following this, the Company has included the freehold land and buildings, and investments subject to permanent endowment, within its Balance Sheet.

All fixed assets are held for continuing use in the Charity's activities.

The freehold land and buildings were professionally valued on 3 March 2020 on an open market basis at £2,280,000 by Barry Crux & Company Limited, Chartered Surveyors. The Trustees do not consider that the valuation would have changed significantly between this year end and the valuation date.

12. Fixed asset investments

By the Trust Deed, the investments are not subject to the limitations of the Trustee Investments Act. The investments represent a bank deposit account within the Endowed Funds (see notes 18 and 19).

Page 23

Breckenbrough School Limited

Notes to the financial statements (continued)

for the year ended 31 August 2020

13. Debtors: amounts falling due within one year

Trade debtors Other debtors Creditors: amounts falling due within one year Bank loans and overdrafts Trade creditors Taxation and social security Other creditors Pension scheme liability Other creditors comprised: Fees in advance Pension scheme contributions Accruals Other creditors Creditors: Amounts falling due after more than one year Pension	2020 2019 £ £ 926,994 828,674 160,233 146,374 1,087,227 975,048 2020 2019 £ £ - 78,433 100,698 54,808 53,743 50,713 1,307,637 1,162,050 27,000 26,000 1,489,078 1,372,004 2020 2019 £ £ 1,173,8461,031,152 30,139 22,809 101,016 48,779 2,636 59,310 1,307,6371,162,050 2020 2019 £ £ 98,000 123,000 98,000 123,000	2020 2019 £ £ 926,994 828,674 160,233 146,374 1,087,227 975,048 2020 2019 £ £ - 78,433 100,698 54,808 53,743 50,713 1,307,637 1,162,050 27,000 26,000 1,489,078 1,372,004 2020 2019 £ £ 1,173,8461,031,152 30,139 22,809 101,016 48,779 2,636 59,310 1,307,6371,162,050 2020 2019 £ £ 98,000 123,000 98,000 123,000

14. Creditors: amounts falling due within one year

15. Creditors: Amounts falling due after more than one year

Page 24

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2020

16. Operating lease commitments

At 31 August 2020 the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year Between one and five years Secured debts The following secured debts are included within creditors: Bank loans	2020 £ 42,220 43,011 85,231 2020 £ -		2019 £ 35,785 38,381 74,166 2019 £ 78,433

17. Secured debts

The following secured debts are included within creditors:

The bank loan is secured by a legal charge over a property known as "The Lodge" at Breckenbrough School.

18. Movement in funds

Unrestricted funds General fund Designated fund Capital grant Restricted funds DFC Grant ESFA funding Endowed funds Foundation capital Lone House capital Total funds	At 1.9.19 £ 1,420,957 300,000 83,270 1,804,227 9,620 - 9,620 84,579 48,500 133,079 1,946,926	Incoming resources £ 3,378,688 - - 3,378,688 32,203 701,266 733,469 - 323 323 4,112,480	Resources expended £ (3,142,387) - - (3,142,387) (32,203) (701,266) (733,469) - - - (3,875,856)	Gains, losses and transfers £ (677) - - (677) - - - - (323) (323) (1,000)	At 31.8.20 £ 1,656,581 300,000 83,270
					2,039,851 9,620 -
					9,620 84,579 48,500
					133,079 2,182,550

Page 25

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2020

18. Movement in funds (continued)

Capital grant - unrestricted

This is a designated fund which represents a capital grant which was received from the Department for Education and Skills and may be repayable in the event of the closure of the School.

DFC Grant

The DFC grant is amounts received for capital funding to be used for improvements to buildings and other facilities, including ICT, or capital repairs and refurbishment. The transfer to unrestricted funds represents the amount spent in the year on capital items using this grant.

ESFA funding

These monies were received from the Education and Skills Funding Agency for the education and support activities of the school and were fully utilised in the year.

Endowed funds

The Foundation capital represents the original endowment to provide for the establishment of the Charity. The Lone House capital represents the replacement under a recoupment order of sums expended following the sale of the property known as Lone House. The amount outstanding at the year-end under the order amounted to £48,500, which represents the original value. The investment generated £323 of interest during the year which has been transferred to unrestricted funds.

Designated funds

The Governors have made the decision not to designate any further funds in the year ended 31 August 2020. At 31 August 2020 £300,000 has been designated in total and is set aside to be used in creation of a new building within the grounds that will allow us to deliver our therapeutic provision in a purpose built area allowing space, quietness and privacy for all our students. The fund is expected to be spent over the next 12 months.

Page 26

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2020

19. Analysis of net assets between funds

Fixed assets Investments Current assets Current liabilities Long term liabilities	Unrestricted funds £ 1,149,618 261 2,477,050 (1,489,078) (98,000) 2,039,851	2020 Restricted funds Endowment funds Total funds £ £ £ 9,620 84,579 1,243,817 - 48,500 48,761 - - 2,477,050 - - (1,489,078) - - (98,000) 9,620 133,079 2,182,550

Fixed assets Investments Current assets Current liabilities Long term liabilities	Unrestricted funds £ 976,198 182 2,322,851 (1,372,004) (123,000) 1,804,227	Restricted funds Endowment funds £ £ 9,620 84,579 - 48,500 - - - - - - 9,620 133,079	2019 Total funds £ 1,070,397 48,682 2,322,851 (1,372,004) (123,000) 1,946,926

20. Reconciliation of net income to net cash flow from operating activities

Net income for the reporting period Adjusted for: Depreciation Loss on disposal of fixed assets Investment income Decrease/(increase) in stocks (Increase) in debtors Increase in creditors Pension scheme non-cash movement	2020 £ 235,624 87,911 3,205 (323) 263 (112,179) 194,507 (24,000) 385,008	2019 £ 245,693 83,025 6,301 (318) 1,246 (2,299) 143,654 (6,000) 471,302

Page 27

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2020

21. Analysis of cash and cash equivalents

Cash in hand Cash held as investment	2020 £ 1,385,372 48,761 1,434,133	2019 £ 1,343,089 48,682
		1,391,771

22. Pension commitments

Teachers’ Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in schools and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.

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

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

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

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

The 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

Page 28

	Period Ending 31 August 2020 (£000$)	Period Ending 31 August 2019 (£000s)	Period Ending 31 August 2018 (£000s)	Period Ending 31 August 2017 (£000s)
Present value of provision	125	149	155	176

	Period Ending	Period Ending
	31 August 2020	31 August 2019
	(£000s)	(£000s)
Provision at start of period	149	155
Unwinding of the discount factor (interest expense)	1	2
Deficit contribution paid	(26)	(23}
Remeasurernents - impact of any change in assumptions	1	3
Remeasurements - amendments to the contribution schedule		12
Provision at end of period	125	149

	Period Ending		Period Ending
	31 August 2020		31 August 2018
	(£000s)		(£000s)
Interest expense		1		2
Remeasurements - impact of any change in assumptions		1		3
Remeasurements -amendments to the contribution schedule				12
Contributions paid in respect of future service
Costs recognised in income and expenditure account

ssumptions
	31	August 2020		31 August 2019	31 August 2018	31 August 2017
	%	per	annum	% per annum	% per annum	% per	annum
Rate of discount			0.Б5	0.97	1,68		1.20