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2022-08-31-accounts

Registered Company Number: 06223076 (England and Wales) Registered Charity Number: 1122269

Breckenbrough School Limited

Report of the Trustees and Financial Statements for the Year Ended 31 August 2022

Breckenbrough School Limited

Contents of the Financial Statements for the Year Ended 31 August 2022

Page
Report of the Trustees 1 – 9
Report of the Independent Auditors 10 - 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of cash flows 16
Notes to the Financial Statements 17 - 32

Breckenbrough School Limited

Report of the Trustees for the Year Ended 31 August 2022

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2022.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 2019).

Reference and administrative details

Registered Company number 06223076 (England and Wales)
Registered Charity number 1122269
Registered office Sandhutton
Breckenbrough
Thirsk
YO7 4EN
Trustees
Ruth McTighe Chair from 10.03.2023
Stefan Lewicki
John Littlefair
John Margham
Digby Swift
Alison Clarke Chair, resigned 10.03.2023
Key Management Personnel
Headmaster Simon Bannister
Deputy Headmaster James Shutt
Head of Social Education Stuart Edwards
Bursar Sue Jones
Auditors Saffery Champness LLP
Mitre House
North Park Road
Harrogate
North Yorkshire
HG1 5RX
Solicitors North Yorkshire County Council
County Hall
Northallerton
DL7 8AD

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Breckenbrough School Limited

Report of the Trustees

for the Year Ended 31 August 2022

Reference and administrative details (continued)

Bankers Barclays Bank plc Barclays Bank plc
25 St James Street
Harrogate
HG1 1ZT
Insurers Innovation Broking
20 St Dunstans Hill
London
ED3R 8HL
Co-opted Members Richard Clarke
Sally Burton
Staff Representative Governors Aisling Hyland Appointed 17.06.2022
Governor Appointed by North Alyson Baker Appointed 01.05.2022 Resigned 30.04.2023
Yorkshire County Council David Webster Appointed 01.05.2022 Resigned 30.04.2023
Parent Governors Carl Wright
Daniel Hunter

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Breckenbrough School Limited

Report of the Trustees for the Year Ended 31 August 2022

Our vision is always to put the individual needs of the students first.

Aims, Objectives and Activities

Aims

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 (formerly a Statement of Special Educational Needs) created by his funding Local Authority that identifies him as having complex needs such as Autism. Authorities from many parts of the UK place students at Breckenbrough.

Objectives

We review our aspirations and school improvement objectives along with the outcomes of the immense amounts of work done by staff. The Governors focus on the overall school improvement objectives. In individual cases, staff adapt education and care plans for students so that the school always responds as appropriately as it can to a student’s specific needs. Done with care, this helps each student to improve on his own "previous best" performances in a range of subjects and social skills and to learn to take increasing responsibility for his own learning and development.

The school works as a “one team” approach. By integrating academic and social education with support mechanisms to meet specific individual needs, each element plays a vital role in providing a framework for helping the students to achieve their potential.

Activities

Like our students, Breckenbrough is unique; offering a bespoke, special school approach in the delivery of our holistic curriculum. We pride ourselves in being a ‘specialist’ school, providing a nurturing, supportive and low stress environment to help our students learn to manage their anxiety levels and specific needs to make holistic progress towards their individual outcomes.

Our vision is to improve the Quality of Life for all our students in becoming healthy, happy and successful adults.

In order to improve the Quality of our Student’s lives, we aim to support our students to achieve two key goals during their time here:

  1. To be themselves, aspire and be successful.

  2. To develop strategies and coping mechanisms to move towards a level of self-actualisation in order to thrive in the neurotypical world.

Following the model of Maslow’s Hierarchy of Need, every student arrives at Breckenbrough seeking a safe, nurturing environment where they can be accepted and learn. Due to their adverse experiences in prior settings, our first goal is to reduce anxiety levels and for every student to feel safe and secure in the school environment. It is unreasonable to expect any progress until this has been achieved, especially with their academic studies. Every student progresses through the school seeking to achieve what Maslow terms as self-actualisation, which is essential in achieving the second key goal. As a student progresses upwards through the levels of Maslow, there is a parallel increase in engagement, learning and progress. In order to achieve this, high staff to student ratios are required with class sizes of no more than five students.

Our students are well supported by our experienced and committed team. Each student works alongside a core group of professionals, which includes a keyworker, whose responsibility is to ensure that the students’ needs are met, their development is planned and monitored and their outcomes are celebrated and

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Breckenbrough School Limited

Report of the Trustees for the Year Ended 31 August 2022

communicated with parents and professionals. The keyworker is crucial in providing the link between the student in school and the student’s home life and family. In addition, we have a therapeutic team on site which includes a full-time psychologist, an Occupational Therapist and a Speech and Language Therapist. The coordination of work between the school team, our families and any external professionals is crucial in supporting the students in working towards achieving the two key goals during their time at Breckenbrough.

Part of Breckenbrough School’s curriculum 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 transition to independent living and higher education studies. The school also gives great attention to the boys’ physical, mental and spiritual welfare and helps students to develop positive relationships with peers and adults. The After-care provision, through Beyond Breckenbrough (rarely found elsewhere), continues to provide practical assistance to old scholars as well as help with career guidance and further development of life skills.

The School had an average number of 69 (2021 – 68) boys on roll during the year.

Public Benefit

The Trustees have had due regard to guidance published by the Charities Commission on public benefit. The students' achievements are part of the benefit, in that we help to create and develop mature citizens. We regularly offer the school for summer school hire. We work with a company called Campus Holidays who offer free holidays to under privileged children and those from deprived backgrounds. This is a very successful opportunity 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 2020/21 but it restarted in 2022.

Achievements and Performance

The school has a long record of successfully changing the lives and behaviour of its scholars. Before coming to the school, a boy 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 their son after arriving at Breckenbrough, within months or even weeks. These kinds of dramatic changes in attitude have continued during the period of this report.

Ofsted inspected and reported on our residential provision in January 2022 and found the quality of provision and outcomes for residential students to be good. ‘Children make good progress in all areas of their development, and their self-belief and confidence improve significantly as a result of visiting this residential provision. Children thrive in an environment where they can be themselves. One child said, ‘I can be who I am here, I’m not made to try and be like other children.’ We were disappointed that we were downgraded from outstanding and have created a post OFSTED action plan that aims for us to be back outstanding at the next inspection in 2023.

The last academic inspection of the school took place in November 2021, in which our overall rating was judged to be requiring improvement. The school was judged to be good in the areas of Personal Development, Behaviour and Attitudes and Sixth Form provision. Quality of Education was deemed to require improvement and this directs the overall judgement regardless of other areas for inspection. As such, Leadership and Management was also judged to be requiring improvement. The inspection team were unable to accept that our curriculum model is holistic, and that the quality of education should take into account social progress and self-management alongside academic attainment. It was also a challenge for the inspection team to acknowledge the numerous barriers our students overcome in younger year groups to reach the stage where they are accessing the academic curriculum consistently in Key Stage 4 and 5. 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 already made strides forwards as a school. One such development is the introduction of a new curriculum pathway that takes a

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Breckenbrough School Limited

Report of the Trustees for the Year Ended 31 August 2022

structured and measurable approach in the delivery of our holistic outcomes within Key Stage 2 and 3. We are due our next Section 5 inspection by spring 2024, where we will need to have addressed the areas requiring improvement. An action plan is in place, and we are making excellent progress towards the objectives set out within this document.

Of the students who graduated from the school in summer 2022, 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 curriculum in order to 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 assessed carefully. This year has been a positive one financially as you will see from the pages to follow with our surplus being £747k (2021 £809k). Our income is almost entirely dependent on the number of students on roll and our student numbers have continued to increase, whilst we already had built in capacity within staffing numbers to allow these students to join us, so costs have not increased over budget.

Last year’s bequest from a Friend in their last will and testament which amounted to £172k has been included in the funding for the construction mentioned below. The creation of a bespoke facility to house the equipment used in the performance of the Outdoor Education curriculum has been very well received and will enable us to work towards being nationally accredited under the Adventure Mark for the delivery of our outdoor educational program.

The Governors endorse several designations, the first being £200k for the completion of the construction of the Hub which after accounting for the funds spent in the year leaves a designated fund balance of £372k at 31 August 2022. This new facility will enable us to deliver our therapies in a conducive environment, so the students can benefit thoroughly from their sessions with Occupational and Speech and Language therapists. The construction of this new facility commenced in May 2022 at an overall cost of circa £1.1 million. The new building was completed and opened to students in April 2023. It is already showing to be a huge benefit for the students.

A further designation totalling £200k has been set aside to help fund an enhancement to our current provision which will be delivered on an alternative site, this added to last years designation means the fund totals £350k. We are well along with planning of this provision which has been brought to us by way of a benefactor, but we have already identified that we will need to equip the facility to ensure it is fit for purpose.

Our policy is to invest when we can in funds 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 students 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 70 has been achieved. The Marketing Officer 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 as successful due to the length of the waiting list for new student places. We continue to resist requests 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 once a year to new placements. We remain keen to give Local Authorities value for money and positive 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 ratios continue to be necessary for our provision to be successful and remain one of the

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Breckenbrough School Limited

Report of the Trustees for the Year Ended 31 August 2022

major differences between Breckenbrough and other schools.

In applying the requirement under FRS102, a liability has been recognised for the agreed future deficit payments on the pension scheme with Pensions Trust. The pension deficit recognised at the year end was £23,000 (2021: £98,000).

Structure, Governance and Management

Legal status

Breckenbrough School Limited was formed on 23 April 2007 and commenced trading on 1 September 2008. The School is a corporate registered charity (number 1122269). The Company is governed by its Memorandum and Articles of Association, as amended by special resolutions dated 21 November 2007 and 1 October 2008.

Recruitment and appointment of Governors

Possible new Board members are approached informally, given information about the work of the Board, meet the Chair and Head Teacher to discuss their involvement, tour the school and, in most instances, attend Board or Committee meetings to learn about the business. Our practice is to issue newcomers with information regarding the charity's policies, constitution, meeting procedures, and an indication of their possible duties. Following appointment, new Governors receive an induction. During the year, the Board arranges regular in-house training sessions aimed at improving Governors' knowledge of the school and understanding of their roles. Where needed (e.g. in relation to Safeguarding, OFSTED inspection preparation) specific information and/or training sessions are 'bought in' or attended outside school.

Organisational structure

In the year ended 31 August 2022 the Governing Body included six Trustees who were members of the Religious Society of Friends (Quakers) appointed by 'Quakers in Yorkshire', the body representing the Religious Society of Friends in the area. The Trustees served as Directors of the Company. The conduct of the School was under the direction of the Board in accordance with the purposes, character and ethos of the School as determined by the Trustees. There were six other members of the Board, two appointed by North Yorkshire County Council, two being parents of boys who are in the school identified by the Head in consultation with parents elected by the parents, and two co-opted by the Board. The North Yorkshire County Council appointed governors are currently vacant pending the completion of the local government reorganisation in North Yorkshire. In making decisions on all matters, successful efforts were made to achieve unity on the Board after the Quaker manner.

Appointments to the Board are for a period of four years, and there is an option to appoint for a second tenure period.

Committees

There are two Committees reporting to the Board - an Education Committee and a Resources Committee that has finance, marketing, personnel and premises within its remit. Individual Governors take specific responsibilities for Health and Safety, Child Protection Careers, Teaching and Learning, SEN and Residential and this year we are introducing a new link governors to oversee Quality of Life. There is also a Strategy and Development Committee (made up of the full Board Chair, the Education Chair, the Resources Chair and members of the school Senior Leadership Team). All committees meet at least three times a year, following the same cycle each term leading up to the Full Governing Board meeting.

Related parties

Some members of the governors/trustees also serve on the Board of the Charity, known as Beyond Breckenbrough, whose activities include assistance with transition from the school along with the provision

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Breckenbrough School Limited

Report of the Trustees for the Year Ended 31 August 2022

of financial and other assistance to old boys of Breckenbrough School, directly or otherwise.

During the year the charity paid £7,548 (2021: £7,063) as part of a combined policy which includes Trustee Indemnity Insurance.

Key management personnel remuneration

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 directing and controlling the charity and running and operating the charity on a day-to-day basis. All trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in note 9 to the accounts.

Trustees are required to disclose all relevant interests and register them with the Bursar and, in accordance with the Trust’s policy, withdraw from decisions where a conflict of interest arises. Neither the Trust nor any of the trustees have interests with other independent special schools but any such interests would be disclosed.

The pay of the Headteacher is reviewed annually and normally 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 out 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 charity, the directors benchmark against pay levels in other special schools of a similar size run on a charitable basis. The remuneration bench-mark 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

Wherever possible the Trustees try to build resilience within the balance sheet and the charity’s aims are to increase reserves wherever possible to manage increases to salaries and pensions outside of the school’s control.

The level of total funds at the year-end were £3,739,607 (2021: £2,991,897). The Trustees are pleased to report that the level of unrestricted reserves less unrestricted fixed assets and investments as detailed in note 18, has increased from £1,638,500 in 2021 to £1,756,158 at 31 August 2022. £722,000 of this balance in 2022 has been designated for future capital works leaving an unrestricted balance which is not designated of £1,034,158.

The Charity still aims to increase cash reserves through prudent management of overall expenditure, to enable a free cash reserve fund to be available to add to the stability of the School. The target level of reserves is based on 6 months of operating expenditure, which is approximately £1,500,000.

In assessing the ability of the school to continue as a going concern the Trustees are mindful of the future commitments and cash is monitored day to day and longer term. The Trustees are of the view that the charity is a going concern.

Principal risks and uncertainties

The Trustees 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.

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Breckenbrough School Limited

Report of the Trustees for the Year Ended 31 August 2022

The Governors examine the principal areas of the School's operations and the major risks faced in each area. All school policies and internal systems are appraised regularly and strengthened and risks are minimised by the implementation as necessary of revised policies and procedures for the management of all activities including the authorisation of all transactions, projects and procedures. Most of the existing policy documents have been reviewed recently including Child Protection, Safeguarding, Health and Safety, Fire Risk Assessment and Emergency Procedures. The school also reviews its activities to respond to the requirements set by OFSTED. Recent OFSTED Inspections demonstrate the success of this approach.

A relatively new business risk which the school has to manage is linked to which Local Authorities (LA) we work with and in turn provide a large proportion of the schools’ overall income. Until recently the school had a reasonably even spread of placements over about 20 LA’s, but in the last two years one LA has provided LA’s approximately 40% of the overall student placements. Although this provides the school with an ease of working relationship, it does mean a large proportion of our income is from one source. The management team meet with this LA termly to review their SEND strategy to ensure their decisions and future planning would not jeopardise the student numbers placed at Breckenbrough. This LA understands that the school has invested in infrastructure, staffing and new facilities to meet the needs of the students based on the current level of occupancy. The LA understands that they are pivotal in the ongoing budget planning of the school and have offered assurances that if their student numbers were to significantly change due to them creating their own provision they would work with us in managing the withdrawal of the students and the financial impact this would create.

The Trustees are satisfied the major risks have been established and action taken to mitigate those risks.

Fundraising

The School co-ordinates low-level fund-raising activities for a range of local and national charities such as Children in Need, Red Nose Day, etc. We also undertake fundraising to benefit the School as a whole to support specific projects for new equipment for 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 buildings

The Trustees are of the opinion that the open market value of the land 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. Governors currently request that a valuation is undertaken every three years. The 2023 valuation has been delayed for 6 months until the completion of the capital project.

Plans for the future

The Strategy and Development group meet to consider plans to secure the longevity of the School’s future.

Open thinking is encouraged so as all angles can be considered. Senior leaders are active in keeping abreast of changes to Department for Education thinking and published strategy on SEND to feed into our considerations. Current discussions and investigations centre around sustainability and how we can maintain our standing in the sector, whilst larger commercial enterprises continue to grow with the likes of Cambian, Witherslack Group, and Priory either taking over smaller schools or developing additional provision. We must not be blinkered to these potential threats. The SEND Improvement plan has been published and senior leaders are attending sessions to understand the implications of the changes mentioned in this document and how these could potentially effect Breckenbrough and the wider SEN sector.

It is very evident that these current risks have been considered in the past by our trustees and that informed planning has stood the charity in good stead going forward. We need to remain focused and open to change.

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Breckenbrough School Limited

Report of the Trustees for the Year Ended 31 August 2022

Funds held as custodian for others

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 11 of these financial statements. The Company has included the freehold land and buildings and investments subject to permanent endowment within its balance sheet.

Statement of trustees’ responsibilities

The trustees (who are also directors of Breckenbrough School Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires 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, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the reparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 26 June 2023 and signed on its behalf by:

R McTighe

Trustee

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Breckenbrough School Limited

Independent 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 2022 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash flows and notes to the financial statements, including 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the 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.

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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

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Breckenbrough School Limited

Independent Auditor’s Report on the Financial Statements to the Trustees of Breckenbrough School Limited

misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

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

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 9, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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Independent Auditor’s Report on the Financial Statements to the Trustees of Breckenbrough School Limited

Breckenbrough School Limited

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements 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 controls 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 issued by the Charity Commission 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 laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might 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 entries 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 noncompliance 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 misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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Breckenbrough School Limited

Independent Auditor’s Report on the Financial Statements to the Trustees of Breckenbrough School Limited

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

Use of our report

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

…………………………………..

Sally Appleton BA(Hons) FCA (Senior Statutory Auditor) For and on behalf of

Saffery Champness LLP Chartered Accountants Statutory Auditors Mitre House North Park Road Harrogate North Yorkshire HG1 5RX

28 June 2023

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Breckenbrough School Limited

Statement of Financial Activities (including income and expenditure account) for the year ended 31 August 2022

Notes
Income and endowments
from:
Donations and legacies
3
Charitable activities
4
Other trading activities
Investments
Other
5
Total
Expenditure on:
Raising funds
Charitable activities
6
Total
Net income/(expenditure)
Transfers between funds
17
Other recognised
gains/(losses)
Actuarial gain on defined
Benefit Scheme
Net movements in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
1,117
3,938,176
5,809
-
41,471
3,986,573
2,299
3,273,033
3,275,332
711,241
29
54,363
765,633
2,820,895
3,586,528		 Restricted
funds
£
86,732
797,673
-
-
-
884,405
-
902,328
902,328
(17,923)
-
-
(17,923)
37,923
20,000		 Endowment
funds
£
-
-
-
29
-
29
-
-
-
29
(29)
-
-
133,079
133,079		 2022
Total funds
£
87,849
4,735,849
5,809
29
41,471
4,871,007
2,299
4,175,361
4,177,660
693,347
-
54,363
747,710
2,991,897
3,739,607		 2021
Total funds
£
223,505
4,608,342
1,117
12
34,531
4,867,507
-
4,058,292		 2021
Total funds
£
223,505
4,608,342
1,117
12
34,531
4,867,507
-
4,058,292
4,867,507
-
4,058,292
4,058,292
809,215
-
132
809,347
2,182,550
2,991,897

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes form part of these financial statements.

Page 14

Breckenbrough School Limited

Balance Sheet

as at 31 August 2022

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stocks
Debtors
13
Cash at bank and in hand
Creditors
Amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Creditors
Amounts falling due after more than one year
15
Net assets
Funds
17
Unrestricted funds – general
Unrestricted funds – designated
Restricted funds
Endowment funds
Total funds		 2022
2021
£
£
1,914,944
1,276,324
48,505
48,770
1,963,449
1,325,094
6,946
1,944
129,470
1,661,524
2,203,311
1,612,855
2,339,727
3,276,323
(550,137)
(1,538,494)
1,789,590
1,737,829
3,753,039
3,062,923
(13,432)
(71,026)
3,739,607
2,991,897
2,864,528
1,920,895
722,000
900,000
20,000
37,923
133,079
133,079
3,739,607
2,991,897		 2022
2021
£
£
1,914,944
1,276,324
48,505
48,770
1,963,449
1,325,094
6,946
1,944
129,470
1,661,524
2,203,311
1,612,855
2,339,727
3,276,323
(550,137)
(1,538,494)
1,789,590
1,737,829
3,753,039
3,062,923
(13,432)
(71,026)
3,739,607
2,991,897
2,864,528
1,920,895
722,000
900,000
20,000
37,923
133,079
133,079
3,739,607
2,991,897
1,737,829
3,062,923
(71,026)
2,991,897
1,920,895
900,000
37,923
133,079
2,991,897

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 Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 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 26 June 2023 and were signed on its behalf by:

R McTighe

Trustee

Registered company number 06223076

Page 15

Breckenbrough School Limited

Statement of cash flows for the year ended 31 August 2022

Notes
Cash flows from operating activities
Net cash provided by operating activities 19
Cash flows from investing activities
Interest from investments
Purchases of property, plant and equipment
Cash flows from financing activities
Repayments of borrowing
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period
20		 2022
£
1,376,522
29
(786,360)
(786,331)
-
-
590,191
1,661,625
2,251,816		 2021
£
405,695
12
(178,215)
(178,203)
-
-
227,492
1,434,133
1,661,625

Analysis of changes in net debt

At 1 Sept 2021
£
Cash
1,661,625
1,661,625
Total
1,661,625		 Cash flows
£
590,121
590,121
590,121		 At 31 Aug 2022
£
2,251,816
2,251,816
2,251,816

The notes form part of these financial statements

Page 16

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

1. Accounting policies

Accounting convention

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 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial 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 recognised 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 as a going concern the Trustees are mindful of the future commitments and cash is monitored day to day and 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 Activities.

Fees receivable consists of charges levied for the provision of services for the year to 31 August 2022 in accordance with the Trust Deed.

Grants are recognised in the Statement of Financial Activities when the charity has entitlement to the funds, 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 has imposed restrictions then the grant 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 resources from endowment funds are unrestricted income.

Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings 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 financial statements (continued) for the year ended 31 August 2022

1. Accounting policies (continued)

Costs 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 costs that can be allocated directly to such activities and those costs 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 linked to the strategic management of the Charity.

All 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.

Tangible fixed assets

Fixed assets are stated at historical cost.

No depreciation is provided on freehold land.

Depreciation is provided on all other tangible fixed assets at rates calculated to write each assets down to its estimated residual value over its expected useful life, as follows:-

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

Leased assets are depreciated on a straight line basis over the period of the lease.

Donated assets are capitalised at estimated cost.

Stocks

Stocks are valued at the lower of cost or net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Financial instruments

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 (continued) for the year ended 31 August 2022

1. Accounting policies (continued)

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of 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 is included in the notes to the financial statements.

Hire purchase and leasing commitments

Assets obtained under hire purchase 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 lives or the lease term, whichever is shorter.

Rentals paid under operating leases are charged to the Statement of Financial Activities on a 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 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.

In respect of non-teaching staff, the school contributes to a defined benefit scheme administered by the Pension Trust. 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.

Contributions to both schemes are charged in the SOFA as they become payable in accordance with the rules of the schemes.

Teaching costs

Supplies of games equipment, books, stationery and sundry materials are written off to the general fund account when the expenditure is incurred.

Page 19

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

2. Comparative SOFA

2.
Comparative SOFA
Unrestricted
funds
£
Donations and legacies
174,061
Charitable activities
3,775,160
Other trading activities
1,117
Investments
-
Other
34,531
Total
3,984,869
Raising funds
-
Charitable activities
3,203,969
Total
3,203,969
Net income
780,900
3.
Income from donations and legacies
Unrestricted
funds
Restricted
funds
£
£
Donations
1,117
20,000
Legacies
-
-
Grants
-
66,732
1,117
86,732 -
4.
Income from charitable activities
Unrestricted
funds
Restricted
funds
£
£
Fees
3,873,120
-
Recharges for
other costs
65,056
-
ESFA
-
797,673
Other income
and grants
-
-
3,938,176
797,673		 Restricted
funds
£
49,444
833,182
-
-
-
882,626
-
854,323
854,323
28,303
Endowment
funds
£
-
-
-

-
Endowment
funds
£
-
-
-
-
-		 Endowment
funds
£
-
-
-
12
-		 Total
funds
2021
£
223,505
4,608,342
1,117
12
34,531
12
-
-		 4,867,507
-
4,058,292
- 4,058,292
12 809,215
2022
£
21,117
-
66,732
87,849
2022
£
3,873,120
65,056
797,673
-
4,735,849		 2021
£
9,070
172,029
42,406
223,505
2021
£
3,661,171
111,046
833,182
2,943
4,608,342

Page 20

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

5. Income from other activities

Unrestricted Unrestricted Restricted Endowment Endowment
funds funds funds 2022 2021
£ £ £ £ £
RHI and FIT income 31,000 - - 31,000 26,643
School Trips 3,978 - - 3,978 (3,355)
Computing and cycle 5,730 - - 5,730 11,240
to work scheme
Other 763 - - 763 3
41,471 - - 41,471 34,531
Expenditure on charitable activities
**Direct costs ** Support costs 2022 2021
£ £ £ £
School 3,052,796 677,785 3,730,581 3,644,034
Welfare 28,398 - 28,398 32,153
Premises 416,382 - 416,382 382,105
3,497,576 677,785 4,175,361 4,058,292
Support costs
Information Human
Management Finance technology resources Totals
£ £ £ £ £
School 562,911 18,836 87,467 8,571 677,785
Support costs, included in the above, are as follows:
2022 2021
£ £
Wages 279,790 261,763
Social security 26,905 23,283
Pensions 2,412 6,116
Hire of plant and machinery 52,420 56,359
Insurance 74,981 55,871
Postage and stationery 32,134 29,973
Travelling and motor 45,094 25,510
Professional fees 40,215 15,955
Bank charges 2,205 2,137
Computer licences and IT 87,467 82,294
Recruitment 8,571 3,102
Governance 25,591 20,520
677,785 582,883

6.

7. Support costs

Page 21

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

8. Net incoming resources

Net resources are stated after charging:

Governors’ travel
Auditors' remuneration
Auditors' remuneration for non audit work
Auditors’ remuneration for VAT advisory
Depreciation - owned assets
Hire of plant and machinery
Loss on disposal of fixed assets		 2022
£
2,187
18,836
4,355
2,400
147,713
52,420
26
227,937		 2021
£
-
17,820
2,700
-
131,943
56,359
2,579
211,401

9. Trustees’ remuneration and benefits

The charity trustees were not paid or received any other benefits from employment with the Charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses

The trustees were not reimbursed for expenses during the year (2021:£nil).

10. Staff costs and the cost of key management personnel

Wages and salaries
Social security costs
Other pension costs
Supply staff costs		 2022
£
2,515,372
252,589
330,127
3,098,088
41,865
3,139,953		 2021
£
2,562,393
252,039
368,195
3,182,627
30,724
3,213,351

The average monthly number of employees during the year was as follows:

Teaching
Domestic
Care
Administration
Counselling		 2022
42
6
15
8
1
72		 2021
42
5
18
8
-
73

Page 22

Breckenbrough School Limited

for the year ended 31 August 2022

Notes to the financial statements (continued)

10. Staff costs and the cost of key management personnel (continued)

The number of employees included in the above whose emoluments, excluding pension contributions, exceeded £60,000 were as follows:-

2022 2021
£60,000 to £70,000 2 -
£70,001 to £80,000 - -
£80,001 to £90,000 - -
£90,001 to £100,000 1 1

Pension contributions paid into a defined benefit scheme for the three members (2021: one member) of staff earning over £60,000 were £40,383 (2021: £20,142).

The key management personnel of the charity comprise the board of trustees, Headmaster and the senior leadership team. The total employee benefits of the key management personnel of the Trust were £324,477 (2021: £317,422).

Page 23

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

11. Tangible fixed assets

Cost
At 1 September 2021
Additions
Disposals
Transfers
At 31 August 2022
Depreciation
At 1 September 2021
Charge for year
Disposals
Transfers
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Land and
buildings
Plant and
machinery
etc
£
£
1,143,315
999,230
603,445
182,915
-
(8,894)
(54,803)
54,803
1,691,957
1,228,054		 Land and
buildings
Plant and
machinery
etc
£
£
1,143,315
999,230
603,445
182,915
-
(8,894)
(54,803)
54,803
1,691,957
1,228,054		 Totals
£
2,142,545
786,360
(8,894)
-
2,920,011
293,740
22,402
-
(1,338)
314,804
1,377,153
849,575		 572,481
125,312
(8,868)
1,338
690,263
537,791
426,749		 866,221
147,714
(8,868)
-
1,005,067
1,914,944
1,276,324

Included in cost or valuation of land and buildings is freehold land of £500 (2021 - £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 17 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.

Page 24

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

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 17 and 18).

13. Debtors: amounts falling due within one year

Trade debtors
Other debtors		 2022
2021
£
£
1,217
1,249,480
128,253
412,044
129,470
1,661,524

In 2022 the Autumn term invoices were raised prior to the year-end and were therefore included in trade debtors and deferred income in other creditors. In 2023, the Autumn term invoices were raised after the year-end.

14. Creditors: amounts falling due within one year

Trade creditors
Taxation and social security
Other creditors
Pension scheme liability
Other creditors comprised:
Fees in advance
Pension scheme contributions
Accruals
Other creditors		 2022
£
58,146
60,524
421,117
10,350
550,137
2022
£
65,672
42,374
307,793
5,278
421,117		 2021
£
76,150
58,012
1,377,332
27,000
1,538,494
2021
£
1,272,779
43,238
58,558
2,757
1,377,332

Page 25

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

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

Pension 2022
£
13,432
13,432		 2021
£
71,026
71,026

16. Operating lease commitments

At 31 August 2022 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		 2022
£
41,243
45,310
86,553		 2021
£
42,220
791
43,011

17. Movement in funds

Unrestricted
funds
General fund
Designated fund
Capital grant
Restricted funds
DFC Grant
Equipment fund
ESFA funding
Endowed funds
Foundation
capital
Lone House
capital
Total funds		 At 1.9.21
£
1,837,625
900,000
83,270
2,820,895
9,620
-
28,303
37,923
84,579
48,500
133,079
2,991,897		 Incoming
resources
£
3,986,573
-
-
3,986,573
66,732
20,000
797,673
884,405
-
29
29
4,871,007		 Resources
expended
£
(3,275,332)
-
-
(3,275,332)
(76,352)
-
(825,976)
(902,328)
-
-
-
(4,177,660)		 Gains,
losses and
transfers
£
232,392
(178,000)
-
54,392
-
-
-
-
-
(29)
(29)
54,363		 At 31.8.22
£
2,781,258
722,000
83,270
3,586,528
-
20,000
-
20,000
84,579
48,500
133,079
3,739,607

Page 26

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

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.

17. Movement in funds (continued)

Equipment fund

The equipment fund includes a donation of £20,000 to be used on equipment that will benefit pupils now and in the future.

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 £29 of interest during the year which has been transferred to unrestricted funds.

Designated funds

Designated funds at 31 August 2022 comprise of:

£372,000 for the completion of the construction of the Hub.

£350,000 alternative site provision. These funds have been designated in the year to fund an enhancement of 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.

Page 27

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

18. Analysis of net assets between funds

Unrestricted
funds
£
Fixed assets
1,830,365
Investments
5
Current assets
2,319,727
Current liabilities
(550,137)
Long term liabilities
(13,432)
3,586,528		 Restricted
funds
Endowment
funds
£
£
-
84,579
-
48,500
20,000
-
-
-
-
-
20,000
133,079		 2022
Total
funds
£
1,914,944
48,505
2,339,727
(550,137)
(13,432)
3,739,607

Prior year analysis of net assets between funds

Unrestricted
funds
£
Fixed assets
1,182,125
Investments
270
Current assets
3,248,020
Current liabilities
(1,538,494)
Long term liabilities
(71,026)
2,820,895		 2021
Restricted
funds
Endowment
funds
Total
funds
£
£
£
9,620
84,579
1,276,324
-
48,500
48,770
28,303
-
3,276,323
-
-
(1,538,494)
-
-
(71,026)
37,923
133,079
2,991,897

19. 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
(Increase)/decrease in stocks
Decrease/(increase) in debtors
(Decrease)/Increase in creditors
Pension scheme non-cash movement		 2022
£
747,710
147,714
26
(29)
(5,002)
1,532,054
(971,707)
(74,244)
1,376,522		 2021
£
809,347
131,943
13,765
(12)
2,507
(574,297)
49,416
(26,974)
405,695

Page 28

Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

20. Analysis of cash and cash equivalents

Cash in hand
Cash held as investment		 2022
£
2,203,311
48,505
2,251,816		 2021
£
1,612,855
48,770
1,661,625

21. 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 next valuation result is due to be implemented from 1 April 2024.

The employer’s pension costs paid to TPS in the period amounted to £303,059 (2021: £304,855). At the year end £34,349 (2021: £35,758) was due to the scheme. No amounts were prepaid at either year end.

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

The Pensions Trust

The company participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme.

Therefore it accounts 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.

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Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

21. Pension commitments (continued)

This, together with documents issued by the Pensions Regulator and Technical Actuarial 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 as 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 employers 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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January £3,312,000 per annum (payable monthly) 2025:

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

Deficit contributions
From 1 April 2019 to 30 £11,243,000 per annum (payable monthly and
September 2025: increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 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 this obligation. The amount recognised is 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

Present value of provisions
Period Ending Period Ending Period Ending
31 August 31 August 31 August
2022 2021 2020
(£s) (£s) (£s)
Present value of provision 23,782 98,026 124,720

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Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

21. Pension commitments (continued)

Reconciliation of opening and closing provisions

Period Ending Period Ending
31 August 2022 31 August 2021
(£s) (£s)
Provision at start of period 98,026 124,720
Unwinding of the discount factor (interest expense) 553 605
Deficit contribution paid (20,434) (27,167)
Remeasurements - impact of any change in
assumptions		 (1,048) (132)
Remeasurements - amendments to the contribution
schedule		 (53,315) -
Provision at end of period 23,782 98,026

Income and expenditure impact

Period Ending Period Ending Period Ending
31 August 2022 31 August 2021
(£s) (£s)
Interest expense 553 605
Remeasurements – impact of any change in
assumptions		 (1,048) (132)
Remeasurements – amendments to the contribution
schedule		 (53,315) -
Contributions paid in respect of future service* * *
Costs recognised in income and expenditure account * *

*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes.

Assumptions

Assumptions
31 August 31 August 31 August
2022 2021 2020
%per annum %per annum %per annum
Rate of discount 4.46 0.63 0.55

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

The assumptions are supplied by the external Actuaries.

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Breckenbrough School Limited

Notes to the financial statements (continued) for the year ended 31 August 2022

22. Capital commitments

At 31 August 2022 £740,449 (2021: £nil) capital expenditure had been contracted for in relation to the construction of The Hub. At 31 August 2022 there was no capital expenditure that had been approved but not yet contracted for (2021: £nil).

23. Related party disclosures

Some members of the governors/trustees also serve on the Board of the Charity, known as Beyond Breckenbrough, whose activities include assistance with transition from the school along with the provision of financial and other assistance to old boys of Breckenbrough School, directly or otherwise. During the year salaries of £7,031 (2021: £11,329) were recharged to Beyond Breckenbrough. At the year end the school was owed £7,031 (2021: £66,777) by Beyond Breckenbrough.

There were no other related party transactions during the current or preceding year.

24. Ultimate controlling party

Due to the diverse nature of the membership of the company, no one member has control over the company.

25. Limited by Guarantee

The company is limited by guarantee so has no share capital. The members have guaranteed to provide an amount of £1 in the event of the winding up of the company.

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