Registered Company Number: 06223076 IEngland and Wales) Reglstered Charity Number: 1122269 Breckenbrough School Limited Report of the Trustees and Financial Statements for the Year Ended 31 August 2021
Breckenbrou¥h S¢hool Llmited Contsnts of the Financial Statements for the Year Ended 31 August 2021 Page Report of the Trustees Report of the Independent Auditors 10-13 Statement of Financial Activitie5 14 Balance Sheet 15 Statement of cash flow5 16 Notes to the Financial Statements 17-32
Breckenbrough Sthool Limited Report of the Trustees for the Year Ended 31 August 2021 The Trustees, who are also dirertors of the charityforthe purposes ofthe Companies Act 2006. present their report with the financial statements of the charty for the year ended 31 August 2021. The financial statements tomply with the Charities Act 2011, the Companie5 Act 2006, the Memorandum and Arti¢les of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to tharities pparIng their accounts irb accordance with the Finaricial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191. Reference and administratlve detalls Reglstered Company number 06223076 (England and Wales) Reglstered Charity number 1122269 Reglstered office Sandhutton Breckenbrough Thirsk Y07 4EN Trustees Alison Clarke Ruth Mcfighe Stefan Lewicki John Littlefair John Mar8ham Kirit Gordhanda5 Fleur Parker Chair Deputy Chairfrom 15.11.19 Appointed 01.01.21 Appointed 01.01.21 Resigned 12.09.21 Resigned 17.10.21 Key Management Personnel Headmaster Deputy Headmaster Head of Social Education Bursar Simon 8annister James Shutt Stuart Edwards Sue Jones Audltors Saffery Champness LLP Mitre House North Park Road Harrogate North Yorkshire HGI 5RX Solicitor5 North Yorkshire County Council County Hall Northallerton DL7 8AD Page I
Breckenbrou8h School Llmlted Report ol the Trustees for the Year Ended 31 August 2021 Reference and admlnlstratlve detalls {continued} Bankers Barclays Bank plc 25 St Jame5 Street Harrogate HGI IZT Insurers Innovation Broking 20 St Dunstans Hill London EC3R 8HL Co-opted Members Richard Clarke Sally Burton Staff Representative Governors Vacant position Headmaster Simon Bannister Governor appolnted by North Yorkshire County Council Robert Baker Parent Governors Carl Wright Daniel Hunter Page 2
Breckenbrough School Limited Report ofthe Trustees for the Year Ended 31 August 2021 Our vislon Is always to put the individual needs of the studentsfirst. Alms, Objectives and Activitle5 Alms Breckenbrough School provides education and care for boys from 9 to 19 years of age. Each student at the school has an Education Health and Care Plan Iformerly a Statement of Special Educational Needs) created by hi5 funding Local Authority th3t identrfies him a5 having covnplex needs such as Autlstlc Spectrum Condition. Authorities from many parts of the UK place students at Breckenbrough. We aim to 5UPPOrt our students to achieve two key goa55 during their time at Breckenbrough. Firstlyi to be themselves, aspire and be successful. Secondly. to develop strategies and coping methanisms to help them thrive in the neurotypical world. Objectives We review our a5piration5 and School improvement objectives along with the OLrtcomes of the immense amounts of work done by staff. The Governors focus on the overall school improvement objective5. In individual cases, staff adapt educatiorb and care plans for students so that the school always responds 85 appropriately as It can to a studenvs specific needs. Done with care, this helps each student to improve on his own "previous best" perfomances in a range of subjects and social skllls and to learn to take increasing responsibility for his own learning and development. The school work5 a5 a "one team" approach. By integrating academic and social education with support mechanisms to meet spectfic individual needs, each element plays a vital role in providing a framework for helplng the students to achieve their full academic and broader personal potential. Actlvltles Students display a range of special complex needs. Some experlence drfficulties associated with Autism and may have been diagnosed wwth Autistic Spertrum Condition, including Aspergeff s Syndrome. Some have AttentlDn Deficit Disorder, with some students being diagnosed with a more complex ver51on, that of Attention Deficit Hyperactivity Disordei. Others are designated less specifitally as experiencing Social, Emotional, Anxiety and Mental Health needs. The mix of need presented bythe sludent5 covers a wide range of behaviours and barriers to learning, but m05t boys are able. each at his own rate, to develop friendships and maintain positive working and learning relationships. The staff are skilled in encouraging such development and work hard to promote it. showing great sensitivity towards students whose development is sloweror more hesitant. The school uses small class SIZ and one- to-one tuition when needed, so that adequate attention is given to speclfic Individual needs. There is an appropriate emphasis on outdoor activtties, as these ¢an support the practical and social aspe¢ts of learnin& complementing the more academic and abstract side which some students find harder. Breckenbrough School provides education to GCSE and A level standard. Some of the education provision is offered through third party providers with our staff in support, which helps in the tran51tion to independent living and higher education studies. The school also gives great attention to the boys, physical. mental and spiritual welf3re and helps students to develop positNe relationships with peers and adults. The After-care provi5i0n, through Beyond Breckenbrough Irarelyfound elsewhere). continuesto provide practical assistance to old scho13rs as well as help with careerguidance and further development of life skills. The School had an average number of 6812020- 65) boys on roll during the year. Page 3
Bretkenbrough School Llmlted Report of the Trustees for the Year Ended 31 August 2021 Public Benefft The Trustees have had due regard to guidance published by the Chartties Commission on public benefit. The students, achievements are part of the benefit, in that we help to create and develop mature cit12ens. We regularly offer the school for summer school hire. We worked with a company called Campus Holidays who offer free holldays to under privileged children and those from deprtved backgrounds. This was a very successful Dpportunity for both the school and Campus and over 120 children to enjoy a holiday they would not normally have. Unfortunately, the pandemic has stopped this taking place in 2020 and 2021 but plans are already in place for it to be restarted in 2022. Achievements and Performance The school has 3 long record of sUsSfUllY changing the lives and behaviour of its scholars. Before coming to the school, a bDy will frequently have been the cause of deep concern to parents and educators alike, and in numerous cases has been a 'hard to place" student. Parents frequently tell us of the change in attitude displayed by thelr50n after arriving at Breckenbrough, within months or even weeks. These kinds of dramatic changes in attitude have continued during the period of this report. OFSfED inspected and reported on our residential provision in January 2022 and found the quality of provision and Dutcomes for residerltial students to be good.'Children make good progress in all areas of their development, and their 5elf-belief and confidence improve significantty as a result of visiting this residential provision. Children thrive in an environment where they ran be themselves. One child said, '[ can be who I am here, I'm not made to try and be like other children., We were di5apw>inted thèt we were downEraded from outstanding and have created a p05t OFSTED action plan that aim5 for us to be back to outstsnding at the next inspection in 2023. The last OFSTED academic inspection of the school took Pla in November 2021, in which our overall rating was judged to be requiring improvement. The school was judged to be good in thè areas of Personal Development, Behaviour and Attitude5 and Sixth FoTh provision. Qualtty of Education wa5 deemed to requlre improvement and this dire¢tS the overall judgement regardles5 of other areas for inspertion. As such, Leadership and Management was also judged to be requiring improvement. We were disappointed with the overall judgement and believe we provide an excellent standard of education from our students, relative Starting points but have accepted the judgement and have 31ready made strides forwards as a school. One such development is the introduction of a new curriculum pathway that takes a structured and measurable approach in the delivery of our holistic outcomes wrthin Key Stage 2 and 3. We are due our next Section 5 inspection by spring 2024, where we will need to have 3ddre5sed the areas requiring improvement. An action plan is in place and we are making very good progre55 to the objettives set out within this document. of the students who graduated from the school in summer 2021, all made the successful transition to higher education, further education or some form of vocational placement of employment. This is the fifth year in succession where students had 100% successful transitions. The school continues to develop and diversify the currlculum in orderto provide a platform for every student to achieve, irrespective of their starting point and identified career path. Financial Review Finance is always a major consideration of the Board. Financial performance is monitored and 355es5ed carefully. This year has been a very positNe one financially as you will see from the page5 to follow with our surplus being £809k12020 £236kl Our income is almost entirely dependent on the number of students on roll, paid by each students home local authority and our student numbers have continued to increase, whilst we already had built in capacity within staffing numbers to allow these 51udents to join us, so costs have not Page 4
Breckenbrough Sthool Llmlted Report ofthe Trustees for the Year Ended 31 August 2021 increased over budget. The school has benefited financlally from grants issued by DFE directly linked to the additional facilities and routines that were implemented to manage the COVID 19 pandemlc. These grant5 amounted to £53,916. There was a150 a grant from D in the year relating to capital and maintenance of our building of £78,811. In budgeting we do not assume it5 Continuation but these funds are always welcome and go towards the general maintenance and capitsl investment we make in the schaol property. An unusual area of income to Us, but verywelcome, has been made to the school by a bequest from a Friend in their last will and testament. The residual funds which amounted to £172k arrived in our account in October 2021 but are accounted for in these accounts. This bequest came with no nomination of use so has been aFiproved by the Board to be included in the funding for the construction mentlDned below. These additional funds have allowed the school to enlarge the project to ¢ate a bespoke cleaning and storage facilitie5 to house the equipment Used in the perf0mlan of the Outdoor E(lucation currlculum. This is something that is desperately needed to ensure the longevity of this equipment. The Governors endorse several designatlons, the first being £250K. to add to the construction fund for the developrnent of a purpose-built therapy facility. This new facility will ènable us to deliver our therapies in a conducive environment, so the students can benefit thoroughly from their session5 Wtth Occupational and Speech and Language therapists. We have been able to build up this designation to £550k, accumulated over the last 3 years. The construction of this new facilrty will commence in May 2022 at an overall cost of circa £l.I million. It 15 hoped that the new building will be completed and opened by January 2023 which will benefit all of our students significantly. An amount of £20Dk has been designated towards an additional building to house classrooms. The school has identified the need for more classroom Spa as the student numbers rise. A long-term aspiration is to address the Work in maintaining the roof which ideally requires replacement A final designation tota15 £ISOk and this has been set aside to help fund an enhancement to our current provision which will be delivered on an alternative site. We are in the very early stages of planning this provision which has been brought to vs by way of a benefactor, but we have already identified that we wlll need to equip the facility to ensure it is fit lor purpose. Our policy is to Invest when we can in fund5 and investments on a basis approved by the Charity Commissioners and that remain ethical. We allow for regular Strategic planning. Due to the nature of their needs, the number of student5 starting and leaving the school each year varies, often at irregular points throughout the year. Our plan to increase the number of students to about 65 has been achieved and Department for Education has now given u5 approval for 70 students to be on roll. The Marketin8 OffIr continues to ensure that Local Authorities and potential parents and their support groups, are kept well aware of our existence and of the benefits we offer so that referrals can be communicated through parental preference. This can be evidenced a5 successful due to the length of the waiting list for new student plas. We continue to resist requètts from Local Authorities to reduce our fees, pointing out to them that we do not make annual fee increases on current placements. However, modest annual increases in fee levels are necessary, but these are now only applied On a year to new plaMents. We remain keen to give Local Authorities value for mDney and positNe outcomes which means retaining practices that we know work for our students and thereby benefit their outcomes and in turn the placing Authorities. High staff-to-student rati05 continue to be necessary for our provision to be successful and remain one of the major differences between Breckenbrough and other schools. In applying the requirement under FRS102, a liability has been recogrbised for the agreed future deficlt payments on the pension scheme with Pensions Trust. The pension deficit recognised at the year-end was £98,00012020.. £125,0001. Page 5
BrkQnbr0UBh School Limited Report of the Trustees for the Year Ended 31 August 2021 5trurture, Governance and Management Legal status Breckenbrough School Limited wa5 fomied on 23 April 2007 and commenced trading on I September 2008. The School is a corporate registered charity (number 11222691. The Company is governed by its Memorandum and Articles of Associatiorb. as amended by special resolutions dated 21 November 2007 and l Octobèr 2008. Recrultment and appolntment of Governors Polble new Board members are approached infornially. given infomiation aljout the work of the Board, meet the Chair and Head Teacherto disCU5S their involvement, tourthe Khool and, in most Instances, attend Board or Committee meetlngs to learn about the business. Our prattice is to issue newcomers With information regarding the charity's wlicies, constitution, meeting procedures, and an indication of their posslble duties. Following appointment. new Governors receive an induction. DurinE the year, the Board rranges regular in-house training sessions aimed at improving Governor5. knowledge of the school and understandlng of their roles. Where needed le.g. in relation to Child Protertionl specific information and/or training sessions are 'bought in, or attended outside school. Organisational structure In the year ended 31 August 2021 the Governing Body included seven Twstees who were members of the Religious Soclety of Friends (Quakers) appointed by 'Quakers in YoTkshire'. the body representinB the Religious Society of Friends in the area. The Trustees 5eYved as Directors of the Company. The conduct of the School was under the direction of the Board in accordance with the purposes, chararter and ethos of the School as determined by the Trustees. There weiefive other members of the Board. one appointed by North Yorkshire County Council, two being parents of boys who are in the school identified by the Head in consultatton with parents elected by the parents, and two ctropted by the Board. In making decisions on all matters, successful efforts were made to achieve unity on the Board after the Quaker manner. Appolntment5 to the Board are for a period of four years, and there is an option to appoint for a second period. Commlttees There are two Committees reporting to the Board - an Education Committee and a ReSoUrS Commlttee that h35 finance, marketin& personnel and premises within its remit. Individual Governors take specific resF)onsibilities for Health and Safety. Child Protection, Careers, Teaching and Learning and Residential. There is also a Strategy and Development Committee Imade up of the full Board Chair. the EducatiL)n Chair, the Resources Chair and meMrS of the school Senior Leadership Team). All committees meet at least three tlmes a year, following the same cycle each temi leading up to the Full Governing Board meetiri8. Related partles Some members of the governorsltrustees a150 serve on the Board of the Charity, known as Beyond Breckenbrovgh, whose activities include assistance w(th transition fmm the school along with the provision of financial anLI other assistance to old boys of Breckenbrough School. dirertly or otherwise. During the year the charity paid £7.06312020: E6.3891 as part of a combined policy which include5 Trustee Indemnity Insurance. Key management personnel remuneratt¢n The trustees consider the board of trustees. Headteacher and the Senior Leadership Team as comprising the key management personnel of the charity, in charge of direrting and controlling the charity and running and operating the charity on a day-ttrday basis. All trustees give of theirtime freely and no trustee remuneration Page 6
Breckenbrough School Limlted Report of the Trustees for the Year Ended 31 August 2021 was paid in the year. Details of trustee expenses antl related party transactions are disc105ed in note 9 to the accounts. Trustees are required to dlsclose all relevant interests and register them with the Bursar and, in accordance with the Trust's policyi wlthdraw from decisions where a conflict of interest arises. Neither the Trust nor anv of the trustees have interests with other independent special scht)ols but any such interests would be disclosed. The pay of the Hea¢Jteacher is revi@w@d annually and nornia1 increased in accordance with average sector earnings. In view of the nature of the charity, the remuneration is bench-marked with similar establishments of a similar size and activity to ensure that the remuneration set is fair, and not Otrt of line with that generally paid for similar roles. Pay policy for senior staff The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charily. the directors benchmark against pay levels in other special schools of 3 similar Size run on a charitable basis. The remuneration benchmark is the mid-point of the range paid for similar roles adjusted for a weighting of up to 30% for any additional responsibilities. Reserves policy The Trustees try to build resilience within the balance sheet and the charitls aims are to increase reseThes wherever posslble to manage increases to salaries and pensions and building maintenance outside of the schog1'5 Control. The level of total funds at the year-end were £2.991,897 {2020: £2.182,5501. The Trustees are pleased to report that the level of unrestricted serveS less unrestricted fixed assets and investments as detailed in note 18, has increased frorn E889.972 in 2020 to £1.638S00 on 31 August 2021. The Charity still aims to increase cash reserves through prudent management of overall expenditure, to enable a free cash reserve fund to be av31kble to add to the stability of the School. The target level of reserves is based on 6 rnonths of operating expendtture in accordance with The Charity Commission's guidelines, which 15 approximately £1.500,000. In assessing the ability of the school to continue as a going concem the Trustee5 are mindful of the future commitments and cash 15 monitored day to day and longertemi. TheTrustees are ofthe view thatthe charity is a going concern. Principal rlsks and uncertainties The Truslees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Governo examine the principal areas of the School's operations and the major risks faced in each area. ASI school policies and intemal system5 are appraised regularly and strengthened and risk5 are minimised by the implementation as necessary of revised policies and procedures for the management of all artlvities including the authorisation of all transactions, projects and procedures. The existing policy documents have been revièwed recently including Child Protection, Safeguardin& Health and Safety, Fire Risk Assessment and Emergency Procedures. The School also reviews its activitie5to respond to the requirement5 Set by OFSTED. The Trustees are satisfied thej major ri5k5 have been established and action taken to mitigate those risks. Page 7
Breckenbrough School Llmited Report ofthe Trustees for the Year Ended 31 August 2021 Fundralslng The School co-ordinates low-level fund-raislng activities for a range of local and national charities Such as Children in Need, Red Mose Day, etc. We also undertake fundrai5ingto benefit the School as whole to support specific projects for new equipmentfor example. These are either led by the School or its employees. We are not registered with the fundraising regulator or with any professional fundraisers or commercial participators. Land and bulldings The Trustees are of the opinion that the open market value of the18nd and buildings is materially in excess of book value. This can be evidenced by our most up to date valuation which was concluded in March 2020, as Indicated in note 11 of these financial statements. Governors Current request that a valuation Is undertaken every three years. Plans for the fvture The Strategy and Development group meet to consider plans to secure the longevity of the School's futLJre. Open thinking is encouraged so as all angles can be considered. Senior leaders 3re active in keeping abreast of changes to Department for Education thinking and published strategy on SEND to feed into ovr considerations. Current discussions and investigations centre around sustainability and how we can maintsin our standing in the sector. whilst larger commercial enterprise5 continue to grow with the likes of Cambian, Witherslack Group, and Priory eithertakinE oversmaller sch¢xils or developing additional provision. We must not be blinkered to these potential threats. The SEND review hasjust been completed and green paper issued for consultation within the sector until mid-july 2022. Senior leaders are attending sessions to understsnd the implications of potential changes and will be contributing to the consultation. It is very evidènt that these current risks have been considered in the past by our trustees and that inforrned planning has stood the charlty in good stead going forward. We need to remain focused and open to change. Funds held as custodian for others The company is the Custodian Trustee of the Breckenbrough School CbaritableTrust and alsothe sole Trustee entrusted to mana8e the affairs of that charitable Trust which includes the permanent endowment property and Investments as indicated in note 11 of these financial statements. The Company ha5 included the freehold land and buildings and investments subject to permanent endowment within its balan sheet. Statement of trustee< responsibilities The trustees (who are also directors of Breckenbrough School Limited for the purpose5 of company lawl are responsible for preparing the Trustees, Report and the financyal statements in accordance with applicable law and United Kingdom Accounting Standards (Untted Kingdom Generally Accepted Accounting Prarticel. Company law require5 the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, includingihe income and expenditure, of the charltsble companyforthat period. In preparing these financial statements, the trustees are reouired to: Select suitable accounting policles and then apply them consistently; observe the methods and principles in the Charities SORP IFRS 1021; make judgements and estimates that are reasonable and prudent. state whether applicable accounting standards have been followed, subject tri any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. Page 8
Breckenbrough School knmited Report ol the Trustees for the Year Ended 31 August 2021 The trustees are responsible for keeping proper 3ccounling records that disc105e with reasonable accuracy at any time the financial position of the charitablo company and enablè them to ensure that the financial statements Comply with the Companies Act 2006. They are also responsible for 5afeguardin8 the assets c>f the charitable company and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. there is no relevant audit information of which the charitable companrfs auditor is unaware,. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit infomiation and to establish that the auditor is aware of that information. The trustee5 are responsible for the maintenance and integrity of the corporate and financial information included on the charitable comp3n(s website. Legislation In the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdiciions. This report has been prepared in accordance with the special provisions of Part 15 of the Companie5 Act 2006 relating to small companies. Approved by order of the board of trustees on 24 May 2022 and signed on its behalf by.. A clarke Pa8e 9
Breckenbrough school Limited Indepèndent Auditor's Report on the Financial Statements to the Trustees of Breckenbrough School Limited Opinion We have audited the financial statements of Breckenbrough School Limited for the year ended 31 August 2021 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash flows and notes to the financial statement5, including significant accounting policie5. The financial reporting framework that has been applied in their preparation is applicable law 2nd United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the charitable company's State of affairs as at 31 August 2021 and of its incoming resources and application of restsurces, including its income and expenditure, for the yearthen ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII 3nd applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statement5 Section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'5 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 ¢on¢ern In auditing the financial statement5, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to event5 or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our re5ponsibilitie5 and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The trLJStees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditorfs 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 expres5 any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially incon515tent with the financial Statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material Page 10
Breckenbrough School Llmited Independent Auditorfs Report on the Nnanclal Statements to theTrustees of Breckenbrough School Llmited misstatements, we are required to determine whether this gives riseto a material misstatement in the financial statement5 themselves. If, based on the work we have performed, we conclude that there is a material mlsstatement of this other information we are required to report that fact. We have nothing to report in this reBard. Opinions on other matter5 prescribed by the Companies Act 21N)6 In our opinion. based on the work undertaken in the course of the a¥Jdit: the informatlon given in the Trurteeg Annual Report which includes the Dirertor5' Report for the financial year for which the financial statements are prepared is consistent with the financial Statements,. and the Trustees, Annual Report which includes the Directors. Report has been prepared In accordance with applicable legal requirements. Matters on whlch we are requlred to report by exception In the light of the knowledge and understanding of the charTtable company and its environment obtained in the course of the audtt, we have not identified material misstatements In the Trustees, Annual Report. We have nothlng to report In respert of the following matters where the Comp3nies Art 2W6 requires us to report to you if, in our opinion.. dequate accounting records have not been kept, or retums adequate for our aLJdit have not been received from branches not visited by us,. or the financial Statements are not in agreement with the accounting records and returns; or certain disc105ures of trustees, remuneration specified by law are not made,. or we have not received all the infom)ation and explanations we require for our audit.-or the trustees were not entttled to prepare the financial statements in accordance with the small companies regime and to take advantage of the small companie5 exemption in preparing the Trustee Annual Report. Responslbllltles of trurtees As explained more fully in the Trustees, Responsibilities Statement set out Dn page 9, the trustees (who are also directors of the charitable cornpany forthe purposes of company lawl are respc>nsible 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 thetrustees determirke is neces5aryto enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the finanual statements. the trustees are responsible for assessing the charitable cornpany's ability to continue as a Eoing concern, disclosin& as applicable, matters related to going concern and using the going concern basis of accountin8 unless the trustees either intend to liquidate the charitable company or to £ea5e operations, or have no realistic alternative to do so. Audltorfs responsibilities for ihe audit of the financlal statements We have been appointed as auditors under the Companies Act 2006 and report In actordance with regulations made under that Act. Page 11
Bre¢kenbrough School Limited Independent Auditorfs Report on the Financial Statements to the Trustees of Breckenbrough School Limited Our objectives are to obtain reasonable assurance about whether the financial statement5 a5 a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's réport that include5 our opinion. Reasonable assurance is a high level of a55urance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstaterllent5 can arise from fraud or error and are considered Material if, individually or in the aggregate, they Could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regu5ations. We design procedure5 in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The Specific procedures for this engagement and the extent to which these are capable of detecting irregularities. including fraud are detailed below. 1dentifying and assessing risks related to irregularities.. We assessed the susceptibility of the charitable company's financial statement5 to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these contro15 operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates. Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, guidance i55ued by the Charity Commi55ion for England and Wales and guidance issued by the Department for Education. Audit response to risks identified-. We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company's records of breaches of law5 and regulations. minutes of meetings and correspondence with relevant authorities to identify potential material misstatement5 arising. We discussed the charitable company's policie5 and procedures for compliance with laws and regulations with members of management responsible for compliance. DLJring the planning meetin8 Wlth the audit team. the engagement partner drew attention to the key areas which rllight involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entrie5 and identifying any Significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material mi55t3tement due to fraud is higher than the risk of not detecting one resulting frorn error, as fraud may involve deliberate concealment by, for example, forgery or intentiona1 mi5repre5ent3tion5, or through collusion. Page 12
Breckenbrough School Limited Independent Auditorfs Report on the Financial Statements to thè Trustees of Breckenbrough School Limited A further description of our responsibilities is available on the Financial Reporting Council's website at.. www.frc.or auditorsres onsibilities. Thi5 description forms part of our auditor's report. Use of our report Thi5 report is made solely to the charitable company's members, a5 a body, in accordance with Chapter 3 of Part 16 of the Companies A¢t 2006. Our audit work has been undertaken SD 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 re5POnsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for thi5 report, or for the opinions we have formed. Sally Appleton BAIHonsl FCA (Senior Statutory Auditor) For and on behalf of Saffery Champness LLP Chartered Accountants Statutory Auditor5 Mitre House North Park Road Harrogate North Yorkshire HGI SRX 25 May 2022 Saffery Champness LLP is eligible to art as an auditor in terms of section 1212 of the Companies Act 2006 Page 13
Breckenbrou8h School Limited Statement of Flnanc5al Actlvltles (including Income and expenditure account) for the year ended 31 August 2021 2021 2020 Restrirted Endowment Total fund5 Total funds funds lunds Unrestrirted fund5 Notes In¢omg and endowments from: Donation5 and legacie5 Charitsble activities Other trading activities Investments Other 174,061 3,775.160 1.117 49,444 833,182 223,505 4.608,342 1,117 12 34,531 33,070 4,056.766 1,366 323 20,955 12 34.531 Total 3,984,869 882,626 12 4.867.507 4,112,480 Expendlture on: Raising fund5 Charltable artivlties 1,382 3,874,474 3,203,969 854,323 4,058,292 Total 3.203.969 854.323 4,058,292 3,875,856 Net income 780,900 28.303 12 809,215 236,624 Transfers between funds 17 12 1121 other reco8nlsed galns/l105sesl Actuarial gainl Ilossl on defined Benefit Scheme 132 132 11,o)001 Net movements in fund5 781.044 L8303 809,347 235,624 Reconciliation of funds: Total funds brought fon•Jard 2.039.851 9.620 133,079 2,182,550 1,946,926 Total funds carried lorward 2,820,895 37.923 133,079 2,991,897 2,182,550 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive fvom continuing activities. The notes form part of these financial statements. Page 14
Breckenbrough School Limited Balance Sheet as at 31 August 2021 2021 2020 Notes Flxed assets Tangible assets Investments li 12 1,276,324 48,770 1,243,817 48.761 1.325.094 1,292,578 Current assets Stocks Debtors Cash at bank and in hand 1.944 1,661,524 1,612.855 4,4.51 1,087,227 1,385,372 13 3,276,323 2,477,050 Credltors Amounts falling due within one year 14 I138,494) 11,489.0781 Nel current assets 1.737.829 987,972 Total assets less current liabilltles 3,062,923 2,280,550 Creditors Arnounts falling due after more than one year 15 {71,026) 198,0001 Net assets 2.991,897 2,182,55Q Funds Unrestricted fund5-general Unrestricted funds- designated Restricted funds Endowment fund5 17 1,920,895 900,OOQI 37.923 133,079 1,739,851 300,000 9,62D 133,079 Total funds 2.991,897 2,182,550 The notes form part of these financial statements The trustees have prepared accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Art 2011. These accounts are prepared in accordance with the special provlslons of Part IS of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company. The financial statements were approved by the Board of Trustees on 24 May 2022 and were signed on its behalf by.. A Clarke Trustee c1400 Reglstered Company number 06223076 Page 15
Breckonbrough School LSmlted Statement of cash flows for the year ended 31 Au8usI 2021 2021 2020 Notes Cash flows frorn operatln8 a¢tlvitles Net cash provided by operating activities 19 405,695 385,008 Cash flows frc*m investing artlvltles Interest from investments Purchases of property, plant and equipment 12 1178215) 323 1264,5361 (178.2031 1264.2131 Cash flows from flnanclng aciivities Repayments of borrowing 178,433 178,4331 Change In cash and cash equl¥alents in the reporting perlod Z27.492 42362 Cash and c35h equivalents at the beginnlng of the reporting period 1,434,133 1,391.771 Cash and cash equlvalents atthe end of the 20 reportln8 period 1,661.625 1,434.133 Analysis of changes in net debt At I Sept 202Q Cash Ilows At 31 AUE 2021 Cash IA34,133 1,434,133 227,492 227,492 1,661,625 1.661,625 Total 1,434,133 227.492 1,661,625 The notes form part of these financial statements Page 16
Breckenbrough School Limited Notes to the financial statements l¢ontinuedl for the year ended 31 August 2021 Accounting policies Accounting convention The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to tharities preparing their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191 (Charitie$ 50RP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2QO6. The financial statements are prepared in sterling, which is the furictional currency of the company. Monetary amounts in these financi31 statements are rounded to the nearest £. Breckenbrough School Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recDgnised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Going concern In assessing the ability of the school to continue a5 a going concern the Trustees are mindful of the future commitment5 and cash is rllonitored day to day ènd longer term. The Trustees are of the view that the company is a going concern. Incoming resources All incoming resources are included on the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it Is probable that the income will be received and the amount can be measured reliably and are stated gross within the Statement of Financial Activitie5. Fees receivable consists of charges levied for the provision of services for the year to 31 August 2021 in accordance with the Trust Deed. Grants are recognised in the Statement of Financial Activities when the charity ha5 entitlement to the fLJnds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Where the donor ha5 imposed restrictions then the 8r3nt is treated as a restricted fund, Grants which are repayable if not utilised within a specific period are deferred until expended. Legacies are recognised when the entitlement to the legacy is known with certainty, the value of the legacy receipt can be quantified with reasonable certainty and the timing of the receipt is known with reasonable probability. Incoming resource5 from endowment funds are unrestricted income. Resources expended Expenditure is accounted for on an accruals basis and ha5 been classified under headings that aggregate all c05t related to the category. Where costs cannot be directly attributed to particular heading5 they have been allocated to activities on a basis consistent with the use of resources. Irrecoverable VAT is included in the SOFA in the cost of the expenditure incurred. Page 17
Breckenbrough School Limited Notes to the tinancial statements l¢ontinuedl for the year ended 31 August 2021 Accounting policies Icontinuedl Cost5 of generating funds comprise the costs associated with attracting pupils, in order to generate income. Education and training comprise the costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both cost5 that can be allocated directly to such activities and those cost5 of an indirect nature necessary to support them. Governance costs include those costs associated with meeting with the constitutional and statutory requirements of the Charity and include the audit fees and costs lillked to the strategic management of the Charity. AII costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly,. others are apportioned on an appropriate basis, e.g. estimated usage. Tanglble flxed assets Fixed assets are stated at historical CDSt. No depreciation is provided on freehold land. Depreciation 15 provided on all other tangible fixed assets at rate5 calculated to write each a55et5 down to its estimated residual value over its expected useful life, as follows.. Freehold properties Equipment, fixture$ and fittings Computer equipment Motor vehicles 2%- Straight line 20% - Reducing balance (except boilers 4% straight1inel 33.3/ Straight line 25% - Reducing b313nce Leased assets are depreciated on a straight-line basis over the period of the lease. Donated assets are capitalised at estimated c05t. Stocks Stocks are valued at the lower of cost or net realisable value, after making due allowance for ob501ete and slow-moving items. Taxation The charity is exempt from corporation tax on its charitable activities. Financial instrumènts The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measure at their settlement value with the exception of bank loans which are subsequently measured at amortised costs using the effective interest method. Page 18
Breckenbrough School Limited Notes to the financial statements Icontinuedl for the year ended 31 August 2021 Accounting policies Icontinuedl Fund accounting Unrestricted fund5 can be used in accordance with the charitable objective5 at the discretion uf the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Endowment funds are restricted funds that represent a donation to the Charity with specific criteria that the Charity must follow. Further explanation of the nature and purpose of each fund 15 included in the note5 to the financial statement5. Hire purchase and leasing commitments Asset5 obtained under hire PLJrchase contracts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful live5 or the lease term, whichever is shorter. Renta15 paid under operating leases are charged to the Statement of Financial Activities on 3 straight- line basis over the period of the lease. Pension costs and other post-retirement benefits The Charity 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 liabilitie5 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. In respect of non-teaching staff, the school contributes to a defined benefit scheme administered by the Pension Trust. The 5cherlle is a multi-employer pension scheme and it is not possible to identify the a$5et$ and liabilities ol the scheme which are attributable to the school. In accordance with FRS 102, therefore, the scheme is accounted for as a defined contribution scheme. Contributions to both schemes are charged in the SOFA as they become payable in accordance with the rules of the schemes. In respect of one staff member, contributions are made to a Self-lnvested Pension Plan ISIPPI. Contributions are charged to the SOFA as they become payable. Teaching costs Supplies of games equiprllent, books, stationery and sundry materials are written off to the gèneral fund account when the expenditure is incurred. Page 19
Breckenbrough School Llmlted Notes to the financial statements Icontinuedl for the year ended 31 August 2021 Comparative SOFA Unrestricted funds Restricted funds Endowment funds Total funds 2020 Donations and legacies Charitable activities Other trading activities Investments Other 867 3.355.500 1,366 32,203 701.266 33,070 4,056,766 1,366 323 20,955 323 20,955 Total 3,378,688 733,469 323 4,112,480 Raising funds Charitable activities 1,382 3,141,005 1,382 3,874,474 733,469 Total 3,142,387 733,469 3,875,856 Net income 236,301 323 236,624 Income from donations and legacies Unrèstricted fund5 Restricted Endowment funds funds 2021 2020 Donations Legacies Grant- 2,032 172,029 7,038 9.070 172,029 42,406 6,892 42,406 26,178 174,061 49,444 - 223,505 33,070 Included in donations in 2020 is restricted donations of £6,025 and unrestricted donations of £867. In 2020, the grant income all related to restricted funds. Page 20
Breckenbrough School Limited Notes to the financial Statements Icontinuedl for the year ènded 31 August 2021 Income from charitable activities Unrestricted funds Restricted Endowment funds funds 2021 2020 Fees Recharges for other costs ESFA Other income and grants 3,661,171 3,661,171 3,251,718 111.046 111,046 833,182 97,509 701,266 833,182 2,943 2,943 6,273 3,775,160 833,182 4,608.342 4,056,766 In 2020 £701,266 of ESFA income related to restricted funds. All other income from charitable activities was unrestricted in 2020. Income from other actlvlties Unrestricted Restricted Endowment funds funds funds 2021 2020 RHI and FIT income School Trips Computing and cycle to work scheme Other 26,643 13,3551 11,240 26,643 13,3551 11,240 16,668 7,4SS 13,2131 45 34,531 34,531 20,955 There was a net outflow in relation to school trips in the year relating to refund5 for cancelled trips due to covid. Expenditure on charitable actlvltles Direct costs Support costs 2021 2020 School Welfare Piemises 3,061.151 32.153 382.105 582.883 3,644,034 32,153 382,105 3,540,633 16,282 317,559 3,475,409 582,883 4,058,292 3,874,474 Included in expenditure on charitable attivities is £854,323 relating to restricted funds12020 £733,469 restricted) Page 21
Breckenbrough School Limited Notes to the financial statements Icontinuedl for the year ended 31 August 2021 Support Costs Information technologv Human Management Flnan¢e resources Totals School 476,967 20.520 82,294 3.102 582.883 Support costs, included in the above, are a5 follow5.' 2021 2020 Wages Social security Pensions Hire of plant and machinery InsLJrance Postage and stationery Travelling and motor Profe55ional fee5 Bank charges Computer licences and IT Recruitment Governance 261,763 23.283 6,116 56,359 55,871 29,973 25,510 15,955 2.137 82,294 3.102 20,520 239,011 22,466 13,565 66,892 48,845 36,708 29,429 27,841 3,353 78,535 2,843 18,328 582,883 587,816 Net incoming resources Net resources are stated after charging.. 2021 2020 Governors, travel Auditor5, remuneration Auditors, remuneration for non-aLJdit work Depreciation - owned assets Hire of plant and machinery Loss on disposal of fixed assets 388 14,140 3.800 87,911 66,892 17,820 2,700 131,943 56,359 2.579 Trustees, remuneration and benefits The charity trustees were not paid or received any other benefits from employment with the Charitv in the year12020.' £nill. No charity trustee received payment for professional or other gervite5 supplied to the chèrity12020.. £nill. Trustees, expenses Travel expenses of £nil12020.. £3881 were reimbursed to zero12020.. three) Governors during the year. P8ge 22
Breckenbrough School Limlted Notes to the financial statements Icontinuedl for the year ended 31 August 2021 io. Staff costs and the cost of key management personnel 2021 2020 Wages and salaries Social security Costs Other pension costs 2.562,393 252,039 368,195 3,182,627 2,385,442 227,977 331,652 2,945,071 Supply staff costs 30,724 61,836 3,213,351 3,006,907 The average monthly number of employees during the year was as follows.. 2021 42 2020 40 Teèching and counselling Domestic Care Administration 18 17 73 72 The number of employees included in the above whose emoluments, excluding pension contributions, exceeded £60,000 were as follows.. - 2021 2020 £60,000 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £lOO.000 Pension contributions paid into a defined benefit scheme for the one member12020'. one member? of staff earning over £60,000 were £20,14212020.. £19,1411. The key management personnel of the charity comprise the board of trLJStees, Headmaster and the senior leadership team. The total employee benefits of the key management personnel of the Trust were £441,90012020.. £420,439). Page 23
8reckenbrough School Limited Notes to the financial statements Icontinuedl for the year ended 31 August 2021 ii. Tangible fixed assets Land and buildings Plant and machinery etc Totals Cost At I September 2020 Additions Disposals 1,129,120 14,195 935,465 2,064,585 164,020 178,215 1100,2551 1100,2551 At 31 August 2021 1.143,315 999.230 2,142,545 Depreciation At I September 2020 Charge for year Disposals 270,900 22,840 549,868 109,103 186.4901 820,768 131,943 186,4901 At 31 August 2021 293,740 572,481 866,221 Net book value At 31 August 2021 849,575 426,749 1,276,324 At 31 August 2020 858,220 385,597 1,243,817 Included in cost or valuation of land and buildings is freehold land of £50012020- £5001 The Company 15 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 investment5 a5 indicated in Note 17 of these financial statements. Financial Reporting Statement 102 requires that the substance of an entity's transactions is reported in its financial statements. Thi5 requires that the commercial effect of a transaction and any re5u5ting 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 Dpen market basis at £2.280,000 by Barry Crux & Company Limited, Chartered Surveyors. The Trustees do not con5ideT that the valuation would have Changed Significantly between thi5 year end and the valuation date. Page 24
Breckenbrough School Limited Notes to the flnancial statements lcontinuedl for the year ended 31 August 2021 12. Fixed asset investments By the Trust Deed. the investments are not SLJbject to the limitations of the TrustÈÈ Invèstmènts Act. The investment5 represent a bank deposit account within the Endowed Funds (see notes 17 and 181. 13. Debtors: amounts falling due wlthln one year 2021 2020 Trade debtors Other debtors 1.249.480 412,044 926,994 160,233 1,661,524 1,087,227 14. Creditors: amounts falling due within one year 2021 2020 Trade creditors TaxatlDn and social security Other creditors Pension scheme liability 76,150 58,OlZ 1,377,332 27,000 100,698 53,743 1.307,637 27,000 1.538,494 1,489,078 Other creditors comprised.. 2021 2020 Fees in advance Pension scheme contributions Accruals other creditors 1.272.779 43,238 58,558 2,757 1,173,846 30,139 101,016 2.636 1,377,332 1,307,637 15. Creditors: Amounts falling due after more than one year 2021 2020 Pension 71.026 71.026 98,000 98,000 Page 25
Breckenbrough School Limlted Notes to the financial statements Icontinuedl for the year ènded 31 August 2021 16. Operatlng lease commitments At 31 August 2021 the charity had outstanding Commitments for future minimum lease payment5 under non-cancellable operating leases, which fall due as follows.. 2021 2020 Within one year Between one and five years 42.220 791 42,220 43,011 43,011 85,231 17. Movement in funds Incoming resources Resources expended Gains, losses and transfers At 1.9.20 At 31.8.21 Unrestrlcted funds General fund Designated fund Capital grant 1,656,581 300,000 83,270 2,039,851 3,984,869 13,203,969) 1599,8561 600,000 1,837,625 900,iJOO 83,270 2,820,895 3,984,869 13,203,969) 144 Restricted lunds DFC Grant ESFA funding 9,620 49,444 833,182 882,626 149.4441 1804,8791 1854,3231 9,620 28,303 37.923 9.620 Endowed funds Foundation capital Lone House capital 84,579 84,579 48,500 12 1121 48,500 133,079 2,182,550 12 4,867.507 1121 132 133,079 2,991,897 Total funds 14.058,2921 Page 26
Breckenbrough School Limited Notes to the financial statements Icontinuedl for the year ended 31 August 2021 17. Movement in funds Icontinuedl Capital grant- unrestricted Thi5 is a designated fund which represent5 a capital grant which was received from the Department for Education and Skills and may be repayable in the event of the c105ure 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 recouprllent order of sums expended following the sale of the property known as Lone House. The amount outstanding at the vear-end under the order amounted to £48,500, which represent5 the origin31 value. The investment generated £12 of interest during the year which has been transferred to unrestricted fund5. Designated funds Designated funds at 31 August 2021 comprise of.. £550,000 construction fund to be used for classroom maintenance and 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. A further £250,000 was designated to this fund in the year. £200,000 classroom fund. The school has identified the need for one more classroom space as student numbers increase. This was all designated in the year. £1S0.000 alternative site provision. These funds have been designated in the year to help fund an enhancement to the school's current provision on an alternative site. The funds will be used to equip the facility to ensure it Is fit for purpose. PagÈ 27
Breckenbrough School Limited Note5 to the financial statements Icontinuedl for the year ended 31 August 2021 18. Analy515 of net assets between funds 2021 Total funds Unrestricted funds Restricted Endowment funds funds Fixed assets Investments Current a55ets Current liabilities Long term liabilities 1,182,125 270 3,248,020 11,538,4941 171,0261 9.620 84,579 48,500 1,276,324 48,770 3,276,323 11,538,4941 171,0261 28.303 2,820,895 37.923 133,079 2,991,897 Prior year analysis of net assets between funds 2020 Total funds Unrestricted funds Restricted Endowment funds funds Fixed assets Investments Current assets 1,149.618 261 2,477,050 11,489,078) 198.0001 9,620 84,579 48,500 1,243,817 48.761 2,477,050 11.489,0781 198,0001 Long term liabilities 2,039,851 9,620 133,079 2,182,550 19. Reconciliation of net income to net cash flow from operating activitie5 2021 2020 Net income for the reporting period Adjusted for: Depreciation Loss on disposal of fixed assets Investment income Decrease/lincreasel in stocks Ilncreasel in debtors Increase in creditors Pension scheme non-cash movement 809.347 235,624 131.943 13,765 1121 2,507 1574,2971 49,416 126,974} 87,911 3,205 13231 263 1112,1791 194,507 124,0001 405,695 385,008 Page 28
Breckenbrough School Limited Notes to the financial statements lcontinuedl for the year ended 31 August 2021 20. Analysis of cash and cash equivalents 2021 2020 Cash in hand Cash held as investment 1,612,855 48,770 1.385,372 48,761 1,661,625 1.434.133 21. Pension commitments Teachers, Pension Scheme Introduction The Teachers, Pension Scheme ITPSI is a statutory, contributory, defined benefit 5chemÈ, governed by the Teachers, Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in schools and, from I 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 Eoverned by The Teachers. Pensions Regulations 2010 las amended) and The Teachers, Pension Scherlle Regijlations 2014 las 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 5cherNe 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 wa5 published in March 2019, confirmed that the employer cc>ntribution rate for the TPS would increase from 16.4% to 23,6% from I September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a totèl employer contribution rate of 23.68Yo. The next valuation result is due to be implemented from l April 2023. The employer'5 pension ¢05t5 paid to TPS in the period amounted to £304,85512020.' £263,879). At the vear-end £35.75812020.. £30,139) was due to the scheme. No amounts were prepaid at either year end. A copy of the valuation report and supporting docurllentation is on the Teachers, Pensions website. The Pensions Trust The company participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not P055ible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it account5 for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Page 29
Breckenbrough School Limited Notes to the financial statements Icontinuedl for the year ended 31 August 2021 21. Pension commitments Icontinuedl Standards issued by the Financial Reporting Council. Set out the framework for funding defined benefit occupational pension schemes in the UK. The Scheme is classified a5 a 'last-man standing arrangement,. Therefore, the company is potentially liable for other participating employers, obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employer5 are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed asset5 of £794.9m, liabilities of E926.4m and a defi¢it of £131.5m. To eliminate this funding shortfall. the Trustee has asked the participating employer5 to pay additional contributions to the scheme as follows.. Deficit contributions From l April 2019 to 30 September 2025.. £11,243,000 per ?nnum (payable monthly and increasing by 3% each on 1st April) Unless a concession has been agreed with the Trustee the term to 31 january 2025 applie5. Note that the scheme's previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this fLJnding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows.. Deficit contributions From l April 2016 to 30 September 2025- E12,945,440 per annum (payable monthly and intfeasin8 by 3% each on Isi Aprill From l April 2016 to 30 September 2028.. E54.560 per annum (payable monthly and incre35ing by 3% each on 1st Aprill The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series l and Series 2 scheme liabilities. Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for thi5 obligation. The amount recognised 15 the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. Present value of provisions Period Ending 31 August 2021 Period Ending 31 Au8U5t 2020 Period Endlng 31 AuEUSt 2019 Present value of provisio 98,026 124.720 148,651 Page 30
Breckenbrough School Limited Notes to the financial statements Icontinuedl for the year ended 31 August 2021 21. Penslon Commltments Icontinuedl Reconciliatlon of opening and closing provisions Period Ending 31 August 2021 Period Ending 31 August 2020 Provision at 5tait Df period 124,720 148,651 Unwinding ol ihe discount factor linterest expensel 605 1,305 126,3761 Retnea5urements- impact of any change in assumptions 1.140 Remeasuremenis- amendments to the contributlon schedule Provi510ll at end of period 98,026 124,720 Income and expenditure Impact Period Endlng 31 A8$1 2021 Period Ending 31 August 2020 Interest expense 605 1,305 Remeasuremen15- impact of any change in assumptions 1,140 Remeasurement5- 3mend(nents to the contribution schEdule Costs reco8nised in income and expenditure account intludes defined contribution schemes and future service contribLJtions li.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. Assumptions 31 August 2021 % per annum 31 August 2020 % per annum 31 August 2019 % per annum Rate of discount 0.63 0.55 0.97 Thè discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery p13n contribLJtions due, would give the same results 35 Usin8 a full AA corporate bond yield curve to discount the same recovery plan contributions. Page 31
Bre¢kenbrough khool Umited Notes tothe flnancial statements Icontinuedl for the year ended 31 August 2021 22. Capital commltments At 31 August 2021 £nil12020- £27,089) capital expenditure had been contracted for. At 31 August 2021 there was no capital expenditure that had been approved but not yet contracted for12020- £nill. 23. Related party dlsdosures Some members of the governorsltrustees also serve on the Board of the Charity, known as BeyDnd BreckenbrouEh, whose activities include assistance with transition from the school along with the provision of flnancial and other assistance to old boys of Breckenbrough School, directly or otherwise. During the year salaries of £11,32912020'. £11,246) were recharged to Beyond Breckenbrough. At the year end the school wa5 owed £66,77712020.' £54,466) by Beyond Breckenbrough. There were no other related party transactions during the current or preceding year. 24. Ultlmate controlling party Due to the diverse nature of the membership of the Company. no one member has control over the company. 25. Llmited by Guarantee The company is limited by guarantee so has no share capital. The members have guaranteed to provide an amDunt of £1 in the event of the winding up of the company. Page 32