DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
**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 2023**
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Contents of the Financial Statements for the Year Ended 31 August 2023**
||**Page**|
|---|---|
|Report of the Trustees|1 – 10|
|Report of the Independent Auditors|11 – 14|
|Statement of Financial Activities|15|
|Balance Sheet|16|
|Statement of cash flows|17|
|Notes to the Financial Statements|18 – 33|
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Report of the Trustees for the Year Ended 31 August 2023**
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 2023.
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||
||Alison Clarke|Chair resigned 10.03.2023|
||Digby Swift||
|**Key Management Personnel**|||
||Headmaster|Simon Bannister|
||Deputy Headmaster|James Shutt|
||Head of Social Education|Stuart Edwards|
||Bursar|Sue Jones|
|**Auditors**|Saffery LLP||
||Mitre House||
||North Park Road||
||Harrogate||
||North Yorkshire||
||HG1 5RX||
|**Solicitors**|North Yorkshire Council||
||County Hall||
||Northallerton||
||DL7 8AD||
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## **Breckenbrough School Limited**
## **Report of the Trustees for the Year Ended 31 August 2023**
## **Reference and administrative details (continued)**
|**Bankers**|Barclays Bank plc|
|---|---|
||25 St James Street|
||Harrogate|
||HG1 1ZT|
|**Insurers**|Innovation Broking|
||20 St Dunstans Hill|
||London|
||EC3R 8HL|
|**Co-opted Members**|Richard Clarke Resigned 23.06.2023|
||Sally Burton
Resigned 15.03.2024|
|**Staff Representative Governors**|Aisling Hyland Appointed 17.06.2022 - Resigned 24.11.2023|
||Lynette I’Anson Appointed 15.03.2024|
|**Headmaster**|Simon Bannister|
|**Governor appointed by North**|Alyson Baker
Appointed 01.05.2022 Resigned 30.04.2023|
|**Yorkshire Council**|David Webster Appointed 01.05.2022 Resigned 30.04.2023|
||Nigel Knapton Appointed 01.05.2023|
|**Parent Governors**|Carl Wright|
||Daniel Hunter|
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## **Breckenbrough School Limited**
**Report of the Trustees for the Year Ended 31 August 2023**
## _**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 created by his funding Local Authority (LA) that identifies him as having complex needs such as Autism. Authorities from many parts of the UK place students at Breckenbrough. We are currently working with local authorities down as far as London and across to Cumbria along with all those LAs that share a boundary with North Yorkshire.
We aim to support our students to achieve two key goals during their time at Breckenbrough. Firstly, to be themselves, aspire and be successful. Secondly, to develop strategies and coping mechanisms to help them thrive in the neurotypical world.
## **Objectives**
We review our aspirations and school improvement objectives, along with the student outcomes on a termly basis. These are achieved with the immense amounts of work completed by the staff team . 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 an individual student’s specific needs. Done with care, this helps each student to improve on his own "previous best" performances in a range of subjects, social skills and emotional resilience, and to learn to take increasing responsibility for his own learning and development.
The school works with a “one team” approach. By integrating academic, social education along with therapeutic 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 and a quality of life.
## **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.
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**Report of the Trustees for the Year Ended 31 August 2023**
## **Breckenbrough School Limited**
Our students are well supported by our experienced and committed team of staff. Each student works alongside a core group of professionals, which includes a keyworker, whose responsibility it is to ensure that the students’ needs are met, their development is planned and monitored, and their outcomes are celebrated and communicated with parents and professionals. The keyworker is crucial in providing the link between the student in school and the student’s home and family life. We have a therapeutic team on site which includes a full-time Psychologist, Occupational 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 68 (2022 – 69) students 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 charity called Campus Holidays who offer fully funded holidays to under-privileged children and those from deprived backgrounds. This is a very successful opportunity for both the school and Campus and benefits circa 90 children to enjoy a holiday they would not normally have. Although we had a hiatus during the pandemic, the holidays restarted in 2022 and are providing an essential break and opportunities for these young people.
## **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 young person 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 positive 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. We have published case studies on our students’ experiences on our website. These can be found at Case Studies - Breckenbrough School (https://www.breckenbrough.org.uk/life/life-at-breckenbrough/welcome/casestudies/).
We have retained our good grading in our social care inspection in June 2023. The report states _‘Children enjoy coming to the school and being part of the residential provision. They develop trusting relationships with staff and they feel valued and cared for by nurturing and encouraging staff who want the best for children. Children enjoy the time that they spend with the staff, and they make memories from their experiences such as going on a skiing holiday to Italy. This supports their social well-being, as the children spend time in groups developing their communication skills.’_
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
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## **Breckenbrough School Limited**
## **Report of the Trustees for the Year Ended 31 August 2023**
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 therefore 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 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 have made excellent progress towards the objectives set out within this document and any other areas.
Of the students who graduated from the school in Summer 2023, all made the successful transition to higher education, further education or some form of vocational placement of employment. This is the sixth year in succession where students had 100% successful transitions. University transitions this year include York and Oxford.
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 returned to be in line with our expectations financially, as you will see from the pages to follow, with our surplus being £366k (2022: £747k). Our income is almost entirely dependent on the number of students on roll. The school has benefited financially from grants issued by DFE relating to capital and maintenance of our building, this amounted to £75k. In budgeting we do not assume the continuation of these grants, but these funds are always welcome and go towards the capital investment in the fabric of the school property.
The construction of a new building, mentioned in last year’s report, was completed and opened in April 2023. This facility, called The Hub, is already showing to be a huge benefit in supporting our holistic curriculum. The therapeutic sessions are integrated into the student’s daily timetable, so the benefits can promote engagement in their academic learning. The creation of this bespoke facility also houses the equipment needed in the performance of the Outdoor Education curriculum and again it has been very well received and is now enabling us to work towards being national accredited under the Adventure Mark for the delivery of our outdoor educational program.
The Governors endorse one designation this year and that is aimed at the upgrade of our aged main building, which dates back to 1880. We designate £160k towards work needed on repairing and upgrading the roof and repairing the fabric of the school.
Last year we had accumulated a designation totalling £350k, which had been set aside to support the development on an alternative site. Due to a benefactor now being able to increase their investment in this building, we now only need to hold £170k for this project. The £180k that remains from the original £350k designation, will be directed towards this year’s designation of £160k to repair and upgrade the roof and fabric of the building.
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 parent liaison continues to ensure that Local Authorities and potential parents and
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## **Breckenbrough School Limited**
## **Report of the Trustees for the Year Ended 31 August 2023**
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. In increasing our fees this way it allows LAs to budget for the life of a placement for each individual student. 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 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 £14,104 (2022: £23,782).
## **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 which covers the responsibilities in governance and safeguarding. 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 2023 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, one appointed by North Yorkshire Council, two being parents of students who are in the school identified by the Head in consultation with parents elected by the parents, and two co-opted by the Board. 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, which covers all areas identified in our curriculum policy, along with safeguarding, and a Resources Committee that has finance, marketing,
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## **Breckenbrough School Limited**
## **Report of the Trustees for the Year Ended 31 August 2023**
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 for 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 of financial and other assistance to old boys of Breckenbrough School, directly or otherwise.
During the year the charity paid £8,303 (2022: £7,548) 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 and key personnel 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 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**
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 that are outside of the school’s control.
The level of total funds at the year-end were £4,105,678 (2022: £3,739,607). The Trustees report that the level of unrestricted reserves less unrestricted fixed assets and investments as detailed in note 18, has decreased from £1,756,158 in 2022 to £1,362,156 on 31 August 2023.
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 £2,000,000.
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## **Breckenbrough School Limited**
## **Report of the Trustees for the Year Ended 31 August 2023**
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.
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.
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 school’s 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 with 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 understand 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 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, Save the Children etc. We also undertake fundraising to benefit the School as 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 August 2023. Governors currently request that a valuation is undertaken every three years. This year’s valuation purposefully was slightly delayed so it could include the new therapeutic building called The Hub. The same valuation is used to aid accurate insurance cover based on a rebuild value.
## **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
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## **Breckenbrough School Limited**
## **Report of the Trustees for the Year Ended 31 August 2023**
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 have attended 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.
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to 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.
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:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- • the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
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
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## **Breckenbrough School Limited**
## **Report of the Trustees for the Year Ended 31 August 2023**
relating to small companies.
24 May 2024 Approved by order of the board of trustees on …………………. 2024 and signed on its behalf by:
R McTighe
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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 2023 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:
- give a true and fair view of the charitable company’s state of affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then 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 (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:
- the information given in the Trustees’ Annual Report which includes the Directors’ 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 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:
- adequate accounting records have not been kept, or returns adequate for our audit 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 disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and to take advantage of the small companies exemption in preparing the Trustees’ Annual Report.
## **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.
Page 12
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Independent Auditor’s Report on the Financial Statements to the Trustees of 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.
Page 13
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **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.
28 May 2024 [s ………………………………….. 4F568C43DB3B438...DocuSigned by:
Sally Appleton BA (Hons) FCA (Senior Statutory Auditor) For and on behalf of
Saffery LLP Chartered Accountants Statutory Auditors Mitre House North Park Road Harrogate North Yorkshire HG1 5RX
Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Page 14
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Statement of Financial Activities (including income and expenditure account) for the year ended 31 August 2023**
|**Income and endowments**
**from:**
Donations and legacies
Charitable activities
Other trading activities
Investments
Other
**Total**
**Expenditure on:**
**Raising funds**
**Charitable activities**
**Total**
**Net income**
Transfers between funds
**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**|Notes
3
4
5
6|**Unrestricted**
**funds**
**£**
455
4,100,203
9,378
-
24,659
4,134,695
645
3,768,965
3,769,610||**Restricted**
**funds**
**£**
75,287
780,126
-
-
-
855,413
-
855,413
855,413|**Endowment**
**funds**
**£**
-
-
-
846
-
846
-
-
-|**Endowment**
**funds**
**£**
-
-
-
846
-
846
-
-
-|**2023**
**Total funds**
**£**
**75,742**
**4,880,329**
**9,378**
**846**
**24,659**
**4,990,954**
**645**
**4,624,378**
**4,625,023**|**2023**
**Total funds**
**£**
**75,742**
**4,880,329**
**9,378**
**846**
**24,659**
**4,990,954**
**645**
**4,624,378**
**4,625,023**||2022
Total funds
£
87,849
4,735,849
5,809
29
41,471
4,871,007
2,299
4,175,361|
|---|---|---|---|---|---|---|---|---|---|---|
|||||||||||4,177,660|
||17|||-
-
-
**-**
**20,000**
**20,000**||846
(846)
-
**-**
**133,079**
**133,079**||**365,931**
-
140
**366,071**
**3,739,607**
**4,105,678**||693,347
-
54,363|
|||||||||||747,710
2,991,897|
|||||||||||3,739,607|
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 15
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Balance Sheet**
## **as at 31 August 2023**
|||**2023**|2022|
|---|---|---|---|
||Notes|**£**|£|
|**Fixed assets**||||
|Tangible assets|11|**2,674,814**|1,914,944|
|Investments|12|**48,708**|48,505|
|||**2,723,522**|1,963,449|
|**Current assets**||||
|Stocks||**5,125**|6,946|
|Debtors|13|**1,003,005**|129,470|
|Cash at bank and in hand||**2,027,659**|2,203,311|
|||**3,035,789**|2,339,727|
|**Creditors**||||
|Amounts falling due within one year|14|**(1,649,879)**|(550,137)|
|**Net current assets**||**1,385,910**|1,789,590|
|**Total assets less current liabilities**||**4,109,432**|3,753,039|
|**Creditors**||||
|Amounts falling due after more than one year|15|**(3,754)**|(13,432)|
|**Net assets**||**4,105,678**|3,739,607|
|**Funds**|17|||
|Unrestricted funds – general||**3,442,599**|2,864,528|
|Unrestricted funds – designated||**510,000**|722,000|
|Restricted funds||**20,000**|20,000|
|Endowment funds||**133,079**|133,079|
|**Total funds**||**4,105,678**|3,739,607|
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.
24 May 2024
The financial statements were approved by the Board of Trustees on ………….. and were signed on its behalf by:
R McTighe **Trustee**
**Registered company number 06223076**
Page 16
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Statement of cash flows for the year ended 31 August 2023**
|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|**2023**
**£**
**779,217**
**846**
**(955,512)**
**(954,666)**
**-**
**-**
**(175,449)**
**2,251,816**
**2,076,367**|2022
£
1,376,522
29
(786,360)|
|---|---|---|
|||(786,331)
-|
|||-|
|||590,191
1,661,625|
|||2,251,816|
## **Analysis of changes in net debt**
|Cash
Total|**At 1 Sept 2022**
**£**
2,251,816
**2,251,816**
**2,251,816**|**Cash flows **
**£**
(175,449)
**(175,449)**
**(175,449)**|**At 31 Aug 2023**
**£**
2,076,367|
|---|---|---|---|
||||**2,076,367**|
||||**2,076,367**|
The notes form part of these financial statements
Page 17
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
**Notes to the financial statements (continued) for the year ended 31 August 2023**
## **Breckenbrough School Limited**
## **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 2023 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 18
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
**Notes to the financial statements (continued) for the year ended 31 August 2023**
## **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 19
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
**Notes to the financial statements (continued) for the year ended 31 August 2023**
## **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 20
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Notes to the financial statements (continued) for the year ended 31 August 2023**
## **2. Comparative SOFA**
|**2.**
**Comparative SOFA**|**2.**
**Comparative SOFA**|**2.**
**Comparative SOFA**||||||
|---|---|---|---|---|---|---|---|
|**Unrestricted**
**funds**
**£**
Donations and legacies
1,117
Charitable activities
3,938,176
Other trading activities
5,809
Investments
-
Other
41,471
Total
3,986,573
Raising funds
2,299
Charitable activities
3,273,033
Total
3,275,332
**Net income**
**711,241**
**3.**
**Income from donations and legacies**
**Unrestricted**
**funds**
**Restricted**
**funds**
**£**
**£**
Donations
455
-
Grants
-
75,287
455
75,287
**4.**
**Income from charitable activities**
**Unrestricted**
**funds**
**Restricted**
**funds**
**£**
**£**
Fees
4,006,461
-
Recharges for
other costs
93,742
-
ESFA
-
780,126
4,100,203
780,126||||**Restricted**
**funds**
**£**
86,732
797,673
-
-
-
884,405
-
902,328
902,328
**(17,923)**
**Endowment**
**funds**
**£**
-
-
-
**Endowment**
**funds**
**£**
-
-
-|**Endowment**
**funds**
**£**
-
-
-
29
-||**Total**
**funds**
**2022**
**£**
87,849
4,735,849
5,809
29
41,471|
||||||29
-
-||4,871,007
2,299
4,175,361|
||||||-||4,177,660|
||||||**29**||**693,347**|
||||||**2023**
**£**
455
75,287
75,742
**2023**
**£**
4,006,461
93,742
780,126||**2022**
**£**
21,117
66,732|
||||||||87,849|
||||||||**2022**
**£**
3,873,120
65,056
797,673|
||4,100,203|780,126||-|4,880,329||4,735,849|
Page 21
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Notes to the financial statements (continued) for the year ended 31 August 2023**
## **5. Income from other activities**
|RHI and FIT income
School Trips
Computing and cycle
to work scheme
Other|**Unrestricted**
**funds**
**£**
14,194
3,875
5,746
844
24,659|**Restricted**
**funds**
**£**
-
-
-
-
-|**Endowment**
**funds**
**£**
-
-
-
-
-|**2023**
**£**
14,194
3,875
5,746
844
24,659|**2022**
**£**
31,000
3,978
5,730
763|
|---|---|---|---|---|---|
||||||41,471|
## **6.**
## **Expenditure on charitable activities**
|||**Direct costs Support costs**|**Direct costs Support costs**|**Direct costs Support costs**|**2023**|**2022**|
|---|---|---|---|---|---|---|
||||**£**|**£**|**£**|**£**|
|School|||3,402,706|753,343|4,156,049|3,730,581|
|Welfare|||35,478|-|35,478|28,398|
|Premises|||432,851|-|432,851|416,382|
||||3,871,035|753,343|4,624,378|4,175,361|
|**Support costs**|||||||
|||||**Information**|**Human**||
||**Management**||**Finance**|**technology**|**resources**|**Totals**|
||**£**||**£**|**£**|**£**|**£**|
|School|631,454||14,795|89,413|17,681|**753,343**|
|Support costs, included in|the above,|are|as follows:||||
||||||**2023**|2022|
||||||**£**|£|
|Wages|||||**341,242**|279,790|
|Social security|||||**33,253**|26,905|
|Pensions|||||**29,839**|2,412|
|Hire of plant and machinery|||||**30,742**|52,420|
|Insurance|||||**86,489**|74,981|
|Postage and stationery|||||**42,428**|32,134|
|Travelling and motor|||||**51,897**|45,094|
|Professional fees|||||**9,953**|40,215|
|Bank charges|||||**1,784**|2,205|
|Computer licences and IT|||||**89,413**|87,467|
|Recruitment|||||**17,681**|8,571|
|Governance|||||**18,622**|25,591|
||||||**753,343**|677,785|
## **7. Support costs**
Page 22
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Notes to the financial statements (continued) for the year ended 31 August 2023**
## **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|**2023**
**£**
**1,041**
**19,750**
**1,800**
**-**
**195,642**
**30,741**
**-**
**248,974**|2022
£
2,187
18,836
4,355
2,400
147,713
52,420
26|
|---|---|---|
|||227,937|
## **9. Trustees’ remuneration and benefits**
The charity trustees were not paid or received any other benefits from employment with the Charity in the year (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).
## **Trustees' expenses**
The trustees were not reimbursed for expenses during the year (2022:£nil).
## **10. Staff costs and the cost of key management personnel**
|Wages and salaries
Social security costs
Other pension costs
Supply staff costs|**2023**
**£**
**2,835,413**
**286,736**
**380,860**
**3,503,009**
**64,451**
**3,567,460**|2022
£
2,515,372
252,589
330,127|
|---|---|---|
|||3,098,088
41,865|
|||3,139,953|
The average monthly number of employees during the year was as follows:
|Teaching
Domestic
Care
Administration
Counselling|**2023**
49
10
12
12
1
84|2022
42
6
15
8
1|
|---|---|---|
|||72|
Page 23
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
**Notes to the financial statements (continued) for the year ended 31 August 2023**
## **Breckenbrough School Limited**
## **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:-
|exceeded £60,000 were as follows:-|||
|---|---|---|
||**2023**|**2022**|
|£60,000 to £70,000|3|2|
|£70,001 to £80,000|-|-|
|£80,001 to £90,000|-|-|
|£90,001 to £100,000|-|1|
|Over £100,001|1|-|
Pension contributions paid into a defined benefit scheme for the four members (2022: three members) of staff earning over £60,000 were £48,103 (2022: £40,383).
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 £343,613 (2022: £324,477).
Page 24
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Notes to the financial statements (continued) for the year ended 31 August 2023**
## **11. Tangible fixed assets**
|**Cost**
At 1 September 2022
Additions
Disposals
Transfers
At 31 August 2023
**Depreciation**
At 1 September 2022
Charge for year
Disposals
Transfers
At 31 August 2023
**Net book value**
At 31 August 2023
At 31 August 2022|**Land and**
**buildings**
**Plant and**
**machinery**
**etc**
**£**
**£**
1,691,957
1,228,054
774,833
180,679
-
-
-
-
2,466,790
1,408,733|**Land and**
**buildings**
**Plant and**
**machinery**
**etc**
**£**
**£**
1,691,957
1,228,054
774,833
180,679
-
-
-
-
2,466,790
1,408,733|**Totals**
**£**
2,920,011
955,512
-
-|
|---|---|---|---|
||||3,875,523|
||314,804
45,324
-
-
360,128
**2,106,662**
1,377,153|690,263
150,318
-
-
840,581
**568,152**
537,791|1,005,067
195,642
-
-|
||||1,200,709|
||||**2,674,814**|
||||1,914,944|
Included in cost or valuation of land and buildings is freehold land of £500 (2022 - £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 30 August 2023 on an open market basis at £2,900,000 by Barry Crux & Company Limited, Chartered Surveyors.
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DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Notes to the financial statements (continued) for the year ended 31 August 2023**
## **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|**2023**
**£**
**803,558**
**199,447**
**1,003,005**|2022
£
1,217
128,253|
|---|---|---|
|||129,470|
In 2022 the Autumn term invoices were raised post year-end and were therefore not included in trade debtors. In 2023, the Autumn term invoices were raised pre year-end, and therefore are included in trade debtors.
## **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|**2023**
**£**
**37,058**
**71,506**
**1,530,965**
**10,350**
**1,649,879**
**2023**
**£**
**1,427,035**
**46,468**
**55,523**
**1,939**
**1,530,965**|2022
£
58,146
60,524
421,117
10,350|
|---|---|---|
|||550,137|
|||2022
£
65,672
42,374
307,793
5,278|
|||421,117|
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DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Notes to the financial statements (continued) for the year ended 31 August 2023**
## **15. Creditors: Amounts falling due after more than one year**
|Pension|**2023**
**£**
**3,754**
**3,754**|2022
£
13,432
13,432|
|---|---|---|
## **16. Operating lease commitments**
At 31 August 2023 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|**2023**
**£**
**34,664**
**23,904**
**58,568**|2022
£
41,243
45,310|
|---|---|---|
|||86,553|
## **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 1.9.22
£
2,781,258
722,000
83,270
3,586,528
-
20,000
-
20,000
84,579
48,500
133,079
**3,739,607**|Incoming
resources
£
4,134,695
-
-
4,134,695
75,287
-
780,126
855,413
-
846
846
**4,990,954**|Resources
expended
£
(3,314,340)
(372,000)
(83,270)
(3,769,610)
(75,287)
-
(780,126)
(855,413)
-
-
-
**(4,625,023)**|Gains,
losses and
transfers
£
(159,014)
160,000
-
986
-
-
-
-
-
(846)
(846)
**140**|At 31.8.23
£
3,442,599
510,000
-|
|---|---|---|---|---|---|
||||||3,952,599
-
20,000
-|
||||||20,000
84,579
48,500|
||||||133,079
**4,105,678**|
Page 27
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Notes to the financial statements (continued) for the year ended 31 August 2023**
## **17. Movement in funds (continued)**
## **Comparative 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**|
## **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. This was fully utilised during the year.
## **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. This was fully utilised during the year.
## **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 £846 of interest during the year which has been transferred to unrestricted funds.
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DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
**Notes to the financial statements (continued) for the year ended 31 August 2023**
## **Breckenbrough School Limited**
## **17. Movement in funds (continued)**
## **Designated funds**
Designated funds at 31 August 2023 comprise of:
£170,000 for the Skutterskelfe project.
£340,000 for works to the fabric of the school of which £160k was transferred in during the year from the general fund.
## **18. Analysis of net assets between funds**
|**Unrestricted**
**funds**
**£**
Fixed assets
2,590,235
Investments
208
Current assets
3,015,789
Current liabilities
(1,649,879)
Long term liabilities
(3,754)
**3,952,599**|**2023**
**Restricted**
**funds**
**Endowment**
**funds**
**Total**
**funds**
**£**
**£**
**£**
-
84,579
**2,674,814**
-
48,500
**48,708**
20,000
-
**3,035,789**
-
-
**(1,649,879)**
-
-
**(3,754)**
**20,000**
**133,079**
**4,105,678**|
|---|---|
## **Prior year 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|
|---|---|---|
Page 29
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
## **Breckenbrough School Limited**
## **Notes to the financial statements (continued) for the year ended 31 August 2023**
## **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|**2023**
**£**
**366,071**
**195,642**
**-**
**(846)**
**1,820**
**(873,534)**
**1,099,743**
**(9,679)**
**779,217**|2022
£
747,710
147,714
26
(29)
(5,002)
1,532,054
(971,707)
(74,244)|
|---|---|---|
|||1,376,522|
## **20. Analysis of cash and cash equivalents**
|Cash in hand
Cash held as investment|**2023**
**£**
**2,027,659**
**48,708**
**2,076,367**|2022
£
2,203,311
48,505|
|---|---|---|
|||2,251,816|
## **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.
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DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
**Notes to the financial statements (continued) for the year ended 31 August 2023**
## **Breckenbrough School Limited**
## **21. Pension commitments (continued)**
The employer’s pension costs paid to TPS in the period amounted to £323,255 (2022: £303,059). At the year end £36,152 (2022: £34,349) 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.
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 2025: £3,312,000 per annum (payable monthly)
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**
From 1 April 2019 to 30 September 2025:[£11,243,000 per annum (payable monthly and 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.
Page 31
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
**Notes to the financial statements (continued) for the year ended 31 August 2023**
## **Breckenbrough School Limited**
## **21. Pension commitments (continued)**
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 2023|31 August|2022|31 August|2021|
||(£s)|(£s)||(£s)||
|Present value of provision|14,104||23,782||98,026|
## **Reconciliation of opening and closing provisions**
|**Period Ending**
**Period Ending**|**Period Ending**
**Period Ending**|**Period Ending**
**Period Ending**|
|---|---|---|
|31 August|2023
31 August|2022|
|(£s)|(£s)||
|Provision at start of period|23,782|98,026|
|Unwinding of the discount factor (interest expense)|812|553|
|Deficit contribution paid|(10,350)|(20,434)|
|Remeasurements - impact of any change in assumptions|(140)|(1,048)|
|Remeasurements - amendments to the contribution schedule|-|(53,315)|
|Provision at end of period|14,104|23,782|
## **Income and expenditure impact**
||**Period Ending**|**Period Ending**|**Period Ending**|**Period Ending**|
|---|---|---|---|---|
||31 August|2023|31 August|2022|
||(£s)||(£s)||
|Interest expense||812||533|
|Remeasurements – impact of any change in assumptions||(140)||(1,048)|
|Remeasurements – amendments to the contribution schedule||-||(53,315)|
*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.
Page 32
DocuSign Envelope ID: 6CC472CE-B4AD-4783-8E30-8D23B6334A13
**Notes to the financial statements (continued) for the year ended 31 August 2023**
## **Breckenbrough School Limited**
## **21. Pension commitments (continued)**
## **Assumptions**
|**Assumptions**|||||
|---|---|---|---|---|
||31|August 2023|31 August 2022|31 August 2021|
||%|per annum|% per annum|% per annum|
|Rate of discount||6.04|4.46|0.63|
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.
## **22. Capital commitments**
At 31 August 2023 £nil (2022: £740,449) capital expenditure had been contracted for in relation to the construction of The Hub. At 31 August 2023 there was £nil capital expenditure that had been approved but not yet contracted for (2022: £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 and insurance costs of £19,657 (2022: £7,031) were recharged to Beyond Breckenbrough. At the year end the school was owed £19,657 (2022: £7,031) 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.
Page 33