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2020-07-31-accounts

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

Charity Registration No. 1123869

Company Registration No. 06195985 (England and Wales)

KIRKHAM GRAMMAR SCHOOL

(COMPANY LIMITED BY GUARANTEE)

CONSOLIDATED GOVERNORS REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2020

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL CONTENTS

FOR THE YEAR ENDED 31 JULY 2020

Page
Legal and Administration Details 1 – 2
Strategic Report 3 – 6
Report of the Governors 7 – 10
Independent Auditors’ Report 11 – 13
Statement of Accounting Policies 14 – 18
Consolidated Statement of Financial Activities 19 – 20
Consolidated Balance Sheet 21
Balance Sheet 22
Consolidated Cash Flow Statement 23
Notes to the Accounts 24 – 33

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL LEGAL AND ADMINISTRATION DETAILS

FOR THE YEAR ENDED 31 JULY 2020

GOVERNORS

Governors are the Charity Directors of Kirkham Grammar School. They have all served in office throughout the year except where indicated, together with Governors who served in the year as indicated; they are:

NAME COMMITTEE NAME COMMITTEE
M Bailey Appointed 27/03/21 A Longley ≈
Appointed 28/10/20
A R Berry ≈◊π P R A Ribchester ◘ * ◊
K Berry ≈
Appointed 27/03/21		 M H Thomson ◘
J A Borradaile ≈ ● L Wareing ◊ ∆
Chairman
R F Cartwright ≈ ◘ ◊ * ∆
Vice Chairman
Resigned 28/11/20		 M R P H D Wheatley *
Dr J B Johnson ≈ ◊ ◘ π S A Wilkinson * ◘
J A B Kelsall ≈ E J Waite Appointed 27/03/21
J E S Kollard ◘ *

The Board is a self-appointing body – with one exception in that ‘The Worshipful Company of Drapers of the City of London’ is entitled to nominate one Governor to be approved from time to time by the Governors at their absolute discretion. Service on the Board is for a term of three years. Retiring Kirkham Grammar School Governors can be reelected.

Newly appointed Governors are invited to attend all Committee Meetings initially and appointed to specific Committees thereafter.

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KIRKHAM GRAMMAR SCHOOL LEGAL AND ADMINISTRATION DETAILS

FOR THE YEAR ENDED 31 JULY 2020

OFFICERS Headmaster: D H Berry BA NPQH Bursar/Clerk to Governors: D McNeillie Principal Address: Kirkham Grammar School Ribby Road Kirkham Preston PR4 2BH Website: http://www.kirkhamgrammar.co.uk ADVISERS Bankers: National Westminster Bank PLC Corporate Office 20 Corporation Street Blackpool FY1 1EJ Auditors: Cowgill Holloway LLP Regency House 45-53 Chorley New Road Bolton BL1 4QR Solicitors: Weightmans 100 Old Hall Street Liverpool L3 9QJ Napthens Libra House Cropper Close Whitehills Business Park Blackpool FY4 5PU Insurance Brokers: DEFord Poppleton Grange Low Poppleton Lane York YO26 6GZ

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DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL LEGAL AND ADMINISTRATION DETAILS

FOR THE YEAR ENDED 31 JULY 2020

The Governors present their Strategic Report and Financial Statements for the year ended 31 July 2020.

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Operational Performance of the Schools

In keeping with the promotion of the family ethos and the priority of the all-round development of young people in a secure setting, the school continues to offer a vibrant community in which young people can grow, developing friendships and skills. The school and its pastoral team act as key support workers at times when pupils and their families meet problems and we try hard to foster the atmosphere of mutual trust that all staff participate in, to create the family ethos which we hold so dear. Our vision for the school is to ensure academic success; encompassed by a breadth of educational opportunities including sporting, creative and cultural excellence and the fulfilment of each pupil’s potential.

The Governing Body is grateful for the selfless support of parents and to the Headmaster, the Junior School Headmistress and staff across the whole Foundation, whether teaching or support in inspiring, coaching and supporting each pupil’s learning journey.

Senior School Academic Achievements and Performance

The Academic Year 2019/20 has been another wonderful year of successes and triumphs with Kirkham Grammar School being an extremely vibrant and dynamic place to study and work. It is the achievement of our pupils that takes priority over all we do, with the publication of the summer results 2020. The overall A- level results have demonstrated the best outcomes in the history of the school with every category improving against any other year. With more than 50% of the cohort achieving A/A grades and more pupils attending leading universities and apprenticeship offers. At GCSE the results were just as pleasing. At both A/A and GCSE pass rates the outcomes have been significantly higher than any previous year.

These impressive public examination results together with the host of co-curricular achievements when compared to the size of the school makes it one of the more successful in the UK.

Broader Aspects of School Life and Achievements

The variety of school life at KGS owes so much to its pupils’ enthusiasm for co-curricular pursuits that provide a breadth and balance in our provision and for the willingness of so many staff to work with them in this. Cocurricular pursuits provide an opportunity for all our pupils to find an activity within the school, which gives them a sense of belonging and complements their work in the classroom and pupils embrace this philosophy.

The rich co-curricular life of sport, music, drama, Combined Cadet Force, Duke of Edinburgh and more, alongside the delivery of academic subjects, helps to foster self-confidence and self-esteem in our pupils. We are mindful of the pressure that young people face today and our family ethos encapsulates how we support pupils and how they, in turn, support each other.

The Duke of Edinburgh Award Scheme is open from the fourth year upwards and continues to flourish at KGS, allowing 200 pupils to fulfil their potential beyond the classroom and develop important skills for life and work. During the year many pupils gained Bronze, Silver and Gold Awards and we look forward to this success continuing. Our Gold Award achievers have received their ‘Award Certificates’ at ceremonies at St James’s Palace, Buckingham Palace and Holyrood Palace this year, meeting royalty and celebrities.

In the Music Department, all year groups have taken part in a number of concerts with accomplished performances from our very talented musicians. The annual Carol Concert was held at St Michael’s Church, Kirkham. The performances were led by the Senior Choir providing an opportunity to impress the school community and visitors.

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KIRKHAM GRAMMAR SCHOOL STRATEGIC REPORT

FOR THE YEAR ENDED 31 JULY 2020

Sport continues to play an important part of the daily routine for all students at KGS. During the rugby season many students represented the school, playing matches against other schools. The first XV continued to impress with high profile wins over other far reaching Independent Schools.

In Girls Hockey, most teams had a very successful season with notable wins in the Lancashire Hockey Championships with nearly all age groups being crowned champions in the 11 aside game. A large number of pupils were selected for the England Hockey Junior Academy Centres in a variety of age groups whilst some went on to the Junior Regional Performance Centres.

Swimmers competed in the Stanley Cook Trophy with one pupil achieving regional qualification at 400, 800 and 1,500 metre freestyle and she also qualified for the open water Regional and National Championships. Other teams and quads took part in netball fixtures and cross country.

The Combined Cadet Force continues to thrive at KGS with cadets enjoying an extensive trading programme. The new cadets started with six weeks of drill culminating in the first ever passing out parade for the school.

Junior, Infant and Pre-School

The Junior, Infant and Pre-School has been a very busy place with every age year group from 3 to 11 being involved in educational trips and activities. Academically, children continue to exceed above the national average as recognised by the ISIS Inspectors in February 2020. ‘Pupils are ambitious learners, eager to respond to challenging opportunities and clear target setting. Pupils’ show high levels of confidence and demonstrate high levels of empathy and tolerance towards others’. In addition to the richness of the curriculum onsite, students aged 3 to 11 enjoy an enriching outdoor education provision.

Music making and Performing Arts flourishes, with many pupils learning to play musical instruments, many involved in choirs, ensemble, and percussion ensemble and drama groups. The pupils have also performed in the wider community. Speech and drama continue to thrive with many students entering LAMDA examinations with outstanding results.

House competitions in all areas of Sport means that every child has the opportunity to represent their house and feel part of a successful team or representing their house on Sports Day. The older pupils have the opportunity to represent their school at local and regional events and in some cases national events in a variety of different sports; younger teams also had some victories in both hockey, rugby, athletics, swimming, triathlon, gymnastics and skiing.

Charity and Community

The Charity continues to develop community links. The school has a programme of widening educational access to our facilities, at fee rates below commercial levels. Local clubs and organisations use our campus regularly throughout the year and approximately 250 local children benefit each week from the use of our training facilities to receive organised sports coaching.

One of our key responsibilities within school is to ensure we consider those less fortunate than ourselves and the Charity Committees have had another very busy and successful year. Lower profile work continued throughout the year raising substantial money for various charities. School support staff continue to give their time voluntarily to help local charities including raising funds for the Rosemere Cancer Unit. Four pupils received recognition with Rotary Respect Awards for their contribution to charities.

Fundraising Performance

Throughout the shortened year the Foundation continues to fulfil its objectives outlined in the Community Programme to improve school resources both for its own pupils and members of the community. We were grateful to the Old Kirkhamians and Friends, who made numerous donations to the school benefiting all age groups.

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DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL STRATEGIC REPORT

FOR THE YEAR ENDED 31 JULY 2020

Investment Performance against Objectives

As previously reported during the financial year ended 31 July 2015, the school sold its stocks and shares on the Stock Market. The money was reinvested with a minimum contribution from the school to purchase ‘Heatherdene’, the bungalow adjacent to the school. The Governors felt this purchase was essential to secure access from the front to the back of the school, ensuring that we are no longer ‘land locked’. The property will increase in value and, on an annual basis, generates rental income comparable to the previous investment income.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The school reported an operating loss of £217,764 after depreciation and this was favourable to the Budgets for the year. This is due to the fact that the loss of income due to this school closure was offset by reduced expenditure and receipt of furlough income. The Governing Body is disappointed to report a deficit that was inevitable taking into account many internal and external factor . The school hopes to return to financial stability with the planned targets being met allowing for strategic future planning of improved facilities and resources. The school continues not to lose focus of its main priority as detailed in the Charity’s Objects and set out in its scheme.

The school’s trading company continues to sell school uniform supplies and made a charitable donation to the school of £19,477 (£21,049 in 2018/19)

The Governing Body is satisfied that the assets of the school are available and adequate to fulfil the obligations of the Charity. Details of the specific funds are given in the notes to the financial statements.

The level of reserves is considered and reviewed at regular intervals. The policy is to build up the level of reserves by means of annual operational cash reserves and judicious management, with the supplement of income by donations. The Board has continued to keep the bank facility under review to ensure that in the absence of free reserves, it remains adequate to cover the school’s working capital requirements. Due to the trading loss the school has been in breach of one loan agreement with ongoing negotiations with the School Bankers who are currently working with the School to reach a mutually acceptable solution.

Coronavirus

Since the forced closure of all UK Schools on the 20 March 2020 we ensured the school continued to deliver a 'remote education' for the pupils. We created a Strategic Critical Impact Team (SCIT) which met at least three times a week to discuss the impact of COVID 19 and to ensure we provided business continuity.

The school provided 'remote learning' and ensured a level of education was delivered during closure. This continued to the end of the Summer Term and supported a fee charge.

We have also reviewed the business continuity plan and ensured the following measures have been put in place:

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KIRKHAM GRAMMAR SCHOOL STRATEGIC REPORT

FOR THE YEAR ENDED 31 JULY 2020

Investment policy and objectives

The Governors’ investment powers are governed by the Scheme, which permits the Charity’s funds to be invested in the name of the said Official Custodian unless the Charity Commissioners direct otherwise. The Governors’ policy is to generate income from investment property whilst preserving the real value of endowed investments.

FUTURE PLANS

The Board’s Key Financial Objectives are:

28/4/2021 | 4:37 PM BST Approved by the Board of Governors on ........................

L Wareing Chairman of Governors

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KIRKHAM GRAMMAR SCHOOL REPORT OF THE GOVERNORS

FOR THE YEAR ENDED 31 JULY 2020

The Governors present their annual report for the year ended 31 July 2020, under the Charities Act 2011, together with the audited accounts for the year and confirm that they comply with the requirements of the Scheme and Charities SORP 2005 and Companies Act 2006.

Reference and Administrative Information

Kirkham Grammar School was founded in 1549 and is registered with the Charity Commissioners as Kirkham Educational Foundation under charity number 526721. Under the transfer of undertaking the Charity Activity of Kirkham Educational Foundation transferred to Kirkham Grammar School (Limited by Guarantee) company number 6195985. The Governors of the Charity are as listed on page 1. Particulars of the Charity’s executive officers, principal address of the Charity and professional advisers are given on page 2.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Charity is governed by a Charity Commission scheme of 19 February 2008, varied on 30 June 2009.

Governing Body

The structure of the Charity consists of the Senior School and Boarding House, Junior, Infant and Pre School known collectively as Kirkham Grammar School and governed by one Governing Body, the details of which are explained on page 1, together with information on how the members of the Governing Body are appointed to office.

Recruitment and Training of Governors

The Charity’s elected Governors are appointed at a meeting of the Kirkham Grammar School Board on the basis of nominations received, including the relevant body detailed on page 1. Governors are appointed by a resolution of the Governors passed at a special meeting of which not less than 14 and no more than 35 clear days’ notice has been given. The Governors are recruited on specifications concerning eligibility, personal competence, specialist skills and local availability. New Governors are inducted into the workings of the Charity and its schools, including the Charity Scheme, Instruments and Articles of Association, Terms of Reference made by the Governors to regulate their Practices and Procedures and Committee Terms of Reference and an induction day in school including meeting the Chairman of Governors, Headmaster, Staff, Pupils and attending lessons. During the year Governors attended appropriate away day training sessions, including an AGBIS update seminar; Governors also completed online training for Radicalisation and Safeguarding Levels 1 and 2.

Organisational Management

The Governors of Kirkham Grammar School, as the trustees of the Charity, are legally responsible for the overall management and control of Kirkham Grammar School, and meet at least three times a year; the individual sub-committees meet termly. All Committees are scheduled to try and meet prior to the Finance and Development Committee, which meets usually ten days prior to the full Governing Board meeting. At two of the Finance and Development Committee meetings they specifically approve the budgets and fees for the next academic year and finalise the audited accounts and annual report for approval by the Board.

The Committee also makes recommendations to the Board of future capital projects and appropriate funding.

There is an annual Salary Review Body meeting comprising of Governors, Headmaster, Headmistress, Bursar and Representatives from the Teaching and Associate Staff.

The day to day running of the school is delegated to the Headmaster, supported by the Senior Leadership Team, together with the Bursar. The Headmaster, Headmistress KGJS, Senior Deputy Head and Bursar attend full Governors’ meetings supported as appropriate by other members of the Senior Leadership Team.

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KIRKHAM GRAMMAR SCHOOL STRATEGIC REPORT

FOR THE YEAR ENDED 31 JULY 2020

Group Structure and Relationship

The Charity has a wholly owned subsidiary company, Wrea Services Limited, of which the directors are both trustees. Wrea Services Limited is the school outfitters. The Charity benefits from the annual gift aid from the Company to the School.

Risk Management

The Kirkham Grammar School Board of Governors is responsible for the management of the risks faced by the school. Detailed considerations of risk are delegated to the Chairman of Governors, Vice-Chairman of Governors, Committee Chairmen and Headmaster, who are assisted by the Senior Leadership Team. Risks are identified, assessed and controls established throughout the year. A formal review of the charity’s risk management processes is undertaken on an annual basis.

The key controls used by the charity include:

Through the risk management processes established for the school, the Kirkham Grammar School Governors are satisfied that the major risks identified have been effectively mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

OBJECTS, AIMS AND OBJECTIVES AND ACTIVITIES

Charitable Objects

The Charity’s Objects, as set out in its Scheme, are to advance the education of children and young people by the provision of a school or schools, conducted in accordance with the principles of the Christian faith in or near Kirkham and Treales in the County of Lancashire and by ancillary or incidental educational activities and other associated activities for the benefit of the community.

Within these objects, the Charity has various permanent endowed trust funds held to generate income for bursaries.

Public Benefit Aims and Intended Impact

In meeting these Objects, the school’s public benefit aim is to provide a first class independent education, both through strong academic tuition, and through developing wider sporting, artistic and social skills in all its pupils assisted through an extensive extra-curricular programme that aims to develop life-long leisure interests and help build self-confidence. This is intended to provide an environment where each pupil can fulfil his or her potential, develop leadership skills and inculcate a desire to contribute to the wider community. Kirkham Grammar School is one of the few remaining co-educational independent day schools that can offer parents and pupils the advantage of a boarding education.

In furtherance of these aims the Kirkham Grammar School Governors, as the charity trustees, have complied with the duty in s.2 (1) (b) of the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement under that Act. This is monitored and reported to the Governors by means of an annual audit and further details are available under the heading Grant-making policy.

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KIRKHAM GRAMMAR SCHOOL STRATEGIC REPORT

FOR THE YEAR ENDED 31 JULY 2020

Objectives for the Year

Our objectives are set to reflect our educational aims and the ethos of the School and detailed in the School Development Plan; these are incorporated within the whole school Self Evaluation Form (SEF). Areas covered are:

New initiatives are introduced by the Headmaster to ensure every child receives the best education and pastoral care whilst at the school. During the year the school has worked hard to maintain and build upon the report from the Independent Schools Inspectorate (ISI) inspection, comprising of Regulatory Compliance and Educational Quality when in February 2017 we ultimately achieved ‘excellence across all areas’. Also whilst setting our objectives our Governors give careful consideration to the Charity Commission’s public benefit guidance.

Strategies to Achieve the Year’s Objectives

The ethos of the school centres on a balanced education and this has been furthered by greater opportunity with additional clubs and societies and more educational trips abroad. We also continue to sustain links with local junior schools in both the state and independent sectors, encouraging wider community access to our school and its facilities. Many local clubs and societies use the school’s facilities to provide sports coaching and training sessions in many different disciplines. The school also plays its part in the life of our local community through our community access, pupil enrichment programme and supporting local charities.

Principal Activities of the Year

The Charity principally provides education in Kirkham to boys and girls from the ages of 3 to 18 in its two schools and boarding facilities. It also hosts extensive evening clubs and summer schools with professional coaching. In the year, the Senior School averaged 599 (2018/19: 565) pupils of whom 73 (2018/19: 53) were Boarders and the Junior, Infant and Pre School averaged 233 (2018/19: 254) day pupils. Some year groups are full and have waiting lists and this gives us confidence that these numbers will continue in the foreseeable future. This is a result of our continued resolve to keep up the academic standards.

Grant-making Policy

This year, the value of scholarships, grants, prizes and other awards made to the schools’ pupils out of restricted and unrestricted funds equated to £427,217 (4.38%). The Governors’ policy, in line with that of other Independent Schools, is to make these awards on the basis of the individual’s educational potential, subject to the particular conditions imposed by the original donor where the award is out of restricted funds. Further awards totalling £1,195,657 (12.26%) in bursaries and allowances were made from restricted and unrestricted funds, where the policy is to widen access and relieve hardship when the pupil’s education and future prospects would otherwise be at risk. A hardship fund is also available to help pupils in receipt of bursaries and to access specific tuition where appropriate. The school is also registered to administer the Lancashire County Council’s Early Years Single Funding Formula Scheme and Salary Sacrifice vouchers. The availability of all such fee assistance, together with the terms and conditions for these awards, is advertised on our website www.kirkhamgrammar.co.uk.

Volunteers

The Old Kirkhamians’ Association assists with raising funds towards the provision of an OKA Bursary and aids the school in its quest to retain its heritage and provide sponsorships for our older pupils who embark on

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KIRKHAM GRAMMAR SCHOOL STRATEGIC REPORT

FOR THE YEAR ENDED 31 JULY 2020

charitable work during their gap year: details are publicised in the OKA newsletters. The Friends of Kirkham Grammar School also work voluntarily for the school and raise funds through social events to provide resources for the benefit of our pupils. The Board would like to take this opportunity to say how much we appreciate both Associations for continuing to provide valuable support for our work.

Statement of Governors’ Responsibilities

The Governors of Kirkham Grammar School as charity Governors and Directors (for the purposes of company law) are responsible for preparing the Strategic Report and the Report of the Governors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare the financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company/group for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping adequate 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 and the Charities Act 2011. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of Disclosure to Auditors

In so far as the Governors are aware:

Where applicable the Governors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

28/4/2021 | 4:37 PM BST Approved by the Board of Governors on ...........................

L Wareing Chairman of Governors

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KIRKHAM GRAMMAR SCHOOL INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND GOVERNORS OF KIRKHAM GRAMMAR SCHOOL

FOR THE YEAR ENDED 31 JULY 2020

Opinion

We have audited the financial statements of Kirkham Grammar School (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 July 2020 which comprise the Group Statement of Financial Activities, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The governors 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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KIRKHAM GRAMMAR SCHOOL STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 JULY 2020

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Governors’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Governors

As explained more fully in the Governors’ Responsibilities Statement the governors 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 directors 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 governors are responsible for assessing the group’s and the parent 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 governors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors report.

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KIRKHAM GRAMMAR SCHOOL STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 JULY 2020

Use of our report

This report is made solely to the group members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and under Section 151 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditors’ 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stuart Stead (Senior Statutory Auditor) for and on behalf of Cowgill Holloway LLP

28/4/2021 | 5:58 PM BST

………………………

Chartered Accountants Statutory Auditor

Regency House 45-53 Chorley New Road Bolton BL1 4QR

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KIRKHAM GRAMMAR SCHOOL STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 JULY 2020

Company information

Kirkham Grammar School is a charitable company registered as a charity in England and Wales and a company limited by guarantee. The registered office is Ribby Road, Kirkham, Preston, Lancashire, PR4 2BH.

Accounting convention

The financial statements have been prepared under the historical cost convention modified to include the investment assets at market value.

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 (FRS102) (effective January 2015) – (Charities SORP (FRS102)) 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 £.

The company is a qualifying entity for the purpose of FRS102 and has elected to take exemption under FRS102 paragraph 1.12(b) not to present the company statement of cashflows.

Going Concern

The group and school is in a net current liabilities position. The Governors have considered the group’s ability to continue as a going concern and have prepared forecasts, including cash flow forecasts, to 31[st] July 2021. Based on these forecasts the Governors are satisfied that, for the foreseeable future, the school can meets its projected working capital requirements. The School has been in breach of one of the financial covenants, however, the School Bankers are currently working with the School to reach a mutually acceptable solution. Therefore, the Governors’ consider it appropriate to prepare the financial statements on the going concern basis. The financial effects of COVID-19 are uncertain, however, the Governors are satisfied that they have taken all necessary steps to protect the School and its wholly-owned subsidiary’s, financial position, managing and continuing the provision of education to its pupils and safeguarding employees.

Transfer of activities

On 1 August 2008, the activities, certain assets and liabilities of Kirkham Education Foundation were transferred to the company. From 1 August 2008, the company traded as Kirkham Grammar School.

Basis of consolidation

These financial statements consolidate the results of the School, Kirkham Educational Foundation and its wholly-owned subsidiary Wrea Services Limited on a line by line basis. The acquisition method of accounting has been adopted. Under this method, the results of group undertakings acquired or disposed of in the year are included from the date of acquisition or up to the date of disposal, on a line by line basis. A separate statement of financial activities for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by the SORP.

Fees and similar income

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School from its unrestricted funds, but include contributions received from restricted funds for scholarships, bursaries and other grants.

Donations received for the general purposes of the School are included in unrestricted funds.

14

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 JULY 2020

Donations

Donations for activities restricted by the wishes of the donor are taken to “restricted funds” where these wishes are legally binding on the Governors. Donations required to be retained as capital in accordance with the donor’s wishes are accounted for as “endowments” – permanent or expendable according to the nature of the restriction.

Expenditure

Expenditure is accounted for on an accruals basis. The irrecoverable element of VAT is included with the item of expense to which it relates.

Costs are allocated and apportioned between different classes of expenditure in accordance with the SORP.

Tangible fixed assets and depreciation

Tangible fixed assets other than freehold land are stated at cost less depreciation. Cost is defined as the purchase price of assets acquired, plus directly attributable costs incurred in bringing the asset into working condition for its intended use.

The capitalisation threshold of fixed assets is £5,000.

Gifted assets are capitalised and included in the statement of financial activities at a reasonable estimate of cost based on similar assets previously purchased by the School. The donation is shown as an incoming resource in the year.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset of its expected useful life, as follows: -

Freehold land Not depreciated
Freehold buildings 50 years
Fixtures, fittings and equipment 5 years to 10 years
Motor vehicles 4 years
Computers 3 years

Investment property, which is property held to earn rentals and/or capital appreciation, is measured using the fair value model and stated at its fair value as at the reporting end date. The surplus or deficit on revaluation is recognised in the statement of financial position.

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

Investments

Investments are included at closing mid-market value at the balance sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities. Investment income is accounted for in the period in which the School is entitled to receipt.

Investments in subsidiary undertakings are recorded at cost.

Stock

Stock is valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost is defined as purchase cost.

15

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 JULY 2020

Financial Instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company’s statement of financial position when the company become party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

16

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 JULY 2020

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual

Leasing and hire purchase commitments

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

Taxation

The School is an exempt charity and benefits by being exempt from corporation tax on income it receives from tuition fees, interest and rents.

The School is exempt from levying VAT on the services it provides to pupils. For this reason, the School is generally unable to recover input VAT it suffers on goods and services purchased, which is included in the cost of these goods and services.

Provision for irrecoverable fee debtors

Fees due but not received at the year end (classified as Trade Debtors within the Financial Statements) are included after making due provision for doubtful and irrecoverable balances. Such provisions are made on an individual basis considering individual circumstances, after review and approval by the Board of Governors. No provision is made where debts are deemed to be sufficiently secured, guaranteed and/or subject to payment arrangements.

Accumulated funds

Endowment funds comprise of individual trust funds set up by specific donors, the capital of which may not be expended. The purposes and uses of endowments funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

Unrestricted funds are expended at the discretion of the Governors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Pensions

Retirement benefits to employees of the School are provided by the Teachers’ Pension Scheme (TPS) and the Local Government Pension Scheme (LGPS). These are defined benefit schemes which are externally funded and contracted out of the State Earnings-Related Pension Scheme (SERPS). Contributions to the schemes are charged to the income and expenditure account, so as to spread the cost of pensions over employees’ working lives with the School in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll.

17

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 JULY 2020

The contributions are determined by qualified actuaries on the basis of triennial valuations using the projected unit method or the LGPS and quinquennial valuations using a prospective benefit method for the TPS.

Judgements and key sources of estimation uncertainty

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

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

18

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2020

Unrestricted
Restricted
Endowment
Notes
Funds
Funds
Funds
£
£
£
Income
Income from charitable activities
School Fees
1
7,176,281
-
(5,914)
Other income
2
894.233
-
12
Other trading activities
Trading turnover Wrea Services
3
132,165
-
-
Investment income
4
4,722
-
5,914
Donations
-
-
-
Total income and
endowments
8,207,401
-
12
Expenditure
Other expenditure
Trading expenses
5
112,688
-
-
Financing costs
88,069
-
-
200,757
-
-
Expenditure on Charitable
activities
Teaching
4,928,902
-
-
Welfare staff costs
907,167
-
-
Premises & other occupancy costs
863,617
27,004
-
Support costs
5a
1,041,982
-
-
Management & administration
429,833
-
12
8,171,501
27,004
12
Governance Costs
11.426
-
-

Total expenditure
5
8,383,684
27,004
12
Net expenditure
(176,283)
(27,004)
-
Investment gains
-
900
4,100
Net movement in funds
(176,283)
(26,104)
4,100
Fund balance at 1 August 2019
4,165,330
850,736
223,711
Fund balance at 31 July 2020
16
3,989,047
824,632
227,811		 Total
2020
£
7,170,367
894,245
132,165
10,636
-
8,207,413
112,688
88,069
200,757
4,928,902
907,167
890,621
1,041,982
429,845
8.198,517
11,426
8,410,700
(203,287)
5,000
(198,287)
5,239,777
5,041,490		 Total
2019
£
7,461,111
544,575
115,351
10,405
20,000
8,151,442
94,302
140,815
235,117
4,853,535
949,089
930,998
1,143,290
409,428
8,286,340
11,084
8,532,541
(381,099)
-
(381,099)
5,620,876
5,239,777

19

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2020

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes on pages 24 to 33 form part of these financial statements

20

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL CONSOLIDATED BALANCE SHEET

FOR THE YEAR ENDED 31 JULY 2020

Notes
Fixed Assets
Tangible assets
7
Investments
8/9
Current assets
Stocks
10
Debtors: amounts due within one year
11
Cash at bank and in hand
Creditors:
Amounts falling due within one year
12
Net current (liabilities)
Total assets less current liabilities
Creditors:
Amounts falling due after more than
one year
12
Net assets
Capital funds
Endowments
13
Income funds
Restricted funds
14
Unrestricted funds
Other charitable funds
16
Non-charitable trading funds
15		 £
64,570
621,390
201,069
887,029
(1,607,440)
 2020
2019
£
£
£
8,067,945
8,314,768
335,000
330,000
8,402,945
8,644,768
74,881
535,111
144,444
754,436
(1,278,880)
(720,411)
(524,444)
7,682,534
8,120,324
(2,641,044)
(2,880,547)
5,041,490
5,239,777
227,811
223,711
824,632
850,736
3,966,635
4,142,918
22,412
22,412
5,041,490
5,239,777

28/4/2021 | 4:37 PM BST The accounts were approved by the Governors on ………………. 2021. ……………………… L Wareing J E S Kollard Chairman of Governors Chairman of Finance

Company Registration No. 06195985

The notes on pages 24 to 33 form part of these financial statements

21

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL BALANCE SHEET

FOR THE YEAR ENDED 31 JULY 2020

Notes 2020 2019
£ £ £ £
Fixed Assets
Tangible assets 7 8,066,499 8,312,840
Investments 8/9 416,810 411,810
8,483,309 8,724,650
Current assets
Stocks 10 4,459 4,168
Debtors: amounts due within one year 11 620,938 533,582
Cash at bank and in hand 144,131 115,281
769,528 653,031
Creditors
Amounts falling due within one year 12 (1,592,715) (1,279,769)
Net current (liabilities) (823,187) (626,738)
Total assets less current liabilities 7,660,122 8,097,912
Creditors
Amounts falling due after more than
one year 12 (2,641,044) (2,880,547)
5,019,078 5,217,365
Income funds
Restricted funds 14 824,632 850,736
Unrestricted funds
Other charitable funds 16 4,194,446 4,366,629
5,019,078 5,217,365
The accounts were approved by the Governors on ………………. 2021.
28/4/2021		 4:37 PM BST
……………………………. ………………………….
L Wareing J E S Kollard
Chairman of Governors Chairman of Finance
Company Registration No. 06195985

The notes on pages 24 to 33 form part of these financial statements

22

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 JULY 2020

Notes
Cash flow from operating activities
Cash generated/(absorbed by) from operations
17
Interest paid
Net cash (out)/inflow from operating activities
Investing activities
Purchase of tangible fixed assets
Investment income
Net cash used in investing activities
Financing activities
Proceeds from bank loan
Repayment of bank loans
Net cash used in financing activities
Net increase/ (decrease) in cash & cash equivalents
Cash and cash equivalents at beginning of year
Cash at bank
Bank Overdraft		 £
(68,725)
10,636
-
(235,572)

 2020
2019
£
£
£
438,355
92,550
(88,069)
(140,815)
350,286
(48,265)
(427,121)
10,405
(58,089)
(416,716)
400,000
(214,890)
(235,572))
185,110
56,625
(279,871)
144,444
424,315
201,069
144,444
201,069
144,444
-
-
201,069
144,444

The notes on pages 24 to 33 form part of these financial statements

23

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

School Fees
Gross fees

Less total bursaries, grants and allowances
(

Other Income
Charitable activities
Entrance and registration fees
Other activities to generate funds
Lettings and other income
Other incoming resources
Other
Total other income		 2020
£
2019
£
9,752,254
9,174,724
2,581,887)
(1,713,613)
7,170,367
7,461,111
2020
2019
£
£
5,430
5,493
398,234
526,959
490,581
12,123
894,245
544,575

Income from subsidiary’s trading activities

The School owns the whole of the ordinary share capital, consisting of £81,810 (2019: £81,810) ordinary shares of £1 each, of Wrea Services Limited, which sells goods relating to the School. Its trading results for the year, as extracted from the audited financial statements, are summarised below:

Turnover
Cost of sales
Gross profit
Other income
Administration costs
Interest receivable
Taxation
Net profit		 2020
2019
£
£
130,663
115,351
(91,547)
(74,480)
39,116
1,502
40,871
-
(40,633)
(40,886)
15
15
-
-
-
-		 2020
2019
£
£
130,663
115,351
(91,547)
(74,480)
39,116
1,502
40,871
-
(40,633)
(40,886)
15
15
-
-
-
-
40,871
-
(40,886)
15
-
-

Net profit

The total trading expenses for the subsidiary were £132,210 (2019: £115,366) and included £19,477 (2019: £21,049) in respect of Gift Aid donated to Kirkham Grammar School.

The subsidiary had net assets at 31 July 2020 of £104,222 (2019: £104,222).

Investment Income
Interest on cash deposits held for investment
Rental income		 2020
£
3,436
7,200
10,636		 2019
£
3,205
7,200
10,405

24

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Analysis of Total Resources Staff Other Total Total
Expended costs costs Depreciation 2020 2019
£ £ £ £ £
Charitable activities
Teaching 4,928,902 - - 4,928,902 4,853,535
Welfare staff costs 907,167 - - 907,167 949,089
Premises and other occupancy costs - 575,777 314,844 890,621 930,998
Support costs (see note 5a) 36,305 1,005,677 - 1,041,982 1,143,290
Management and administration 280,406 149,439 - 429,845 409,428
6,152,780 1,730,893 314,844 8,198,517 8,286,340
Governance costs - 11,426 - 11,426 11,084
Costs of generating funds
Financing costs - 88,069 - 88,069 -
6,152,780 1,830,388 314,844 8,298,012 8,438,239
Total for charity
Trading costs of the subsidiary 17,164 95,524 - 112,688 94,302
Total for group 6,169,944 1,925,912 314,844 8,410,700 8,532,541
5a. Analysis of Support Costs Allocation of support costs to activities
Allocated to Depreciation
Staff costs Other costs
Support costs £ £ £
Education supplies and services - 438,770 -
Other supplies and services 36,305 566,907 -
Total 36,305 1,005,677 -
Employees
2020 2019
£ £
Wages and salaries 4,746,773 4,733,370
Social security costs 445,803 440,839
Other pension costs 887,389 688,409
6,079,965 5,862,618
Employees earning over £60,000 (excluding pension contributions)
Number Number
£60,001 - £70,000 2 3
£70,001 - £80,000 1 2
£80,001 - £90,000 1 -
£90,001 - £100,000 - -
£100,001 - £110,000 - 1
£110,001 1
5 6
The average monthly number of employees during the year was:
Educational services and supplies 169 167
Management and administration of the charity 18 25
187 192

25

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

6. Employees (Continued)

Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes employer contributions payable to the TPS of £754,157 (2019: £539,115) and at the year-end £92,605 (2019: £70,548) was accrued in respect of total contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pensions 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 by the Government Actuary’s Department. Employers are currently required to pay a scheme administration levy of 0.08% giving a total employer contribution of 16.48%.

.

From 1[st] September 2019 employer contributions increased to 23.68%, an increase in the region of £20k per month.

There are also indications that the protections in the new cost cap mechanism required by the Public Service Pensions Act 2013 mean public sector workers will get improved pension benefits for employment over the period April 2019 to March 2023.

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with the assets held in separate trustees administered funds.

FRS102

Under the definitions set out in FRS 102 (Post Employment Benefits), the TPS and LGPS are multi-employer pension schemes. The School is unable to identify its share of the underlying assets and liabilities of the schemes. Accordingly, the school has accounted for its contributions as if they were defined contribution schemes.

26

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Tangible fixed assets
Group
Cost
At 1 August 2019
Additions
Disposals
At 31 July 2020
Depreciation
Charge for the year
Released on disposal
At 31 July 2020
Net Book Value
At 31 July 2020
At 31 July 2019		 Freehold
Furniture
Land and
and
Motor
buildings
equipment
vehicles
£
£
£
11,256,440
3,307,046
60,633
-
68,725
-
-
-
-
11,256,440
3,375,771
60,633
3,245,883
3,006,872
56,596
203,275
108,236
4,037
-
-
-
3,449,158
3,115,108
60,633
7,807,282
260,663
-
8,010,557
300,174
4,037
Total
£
14,624,119
68,725
-
14,692,844
6,309,351
315,548
-
6,624,899
8,067,945
8,314,768

Net book value at 31 July 2020 represents fixed assets used for:

Direct charitable purposes
Other purposes:
Hire of facilities
Used by subsidiary company		 Freehold
Furniture
Land and
and
Motor
Buildings
£
Equipment
£
Vehicles
£
7,028,134
259,217
-
779,148
-
-
-
1,446
-
7,807,282
260,663
-		 Total
2020
£
7,287,351
779,148
1,446

8,067,945		 Total
2019
£
7,514,120
798,720
1,928
8,314,768

An amount of £768,174 (2019: £800,648) represents the total net book value of assets which are only part used for other purposes, their main use being in connection with direct charitable purposes.

27

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Tangible fixed assets (continued)
School
Cost
At 1 August 2019
Additions
Disposals
At 31 July 2020
Depreciation
At 1 August 2019
Charge for the year
Released on disposal
At 31 July 2020
Net Book Value
At 31 July 2020
At 31 July 2019
8. Tangible Fixed Assets
Group and School
Cost or valuation
At 1 August 2019
Revaluation
At 31 July 2020
Net Book Value
At 31 July 2020
At 31 July 2019		 Freehold
Furniture
Land and
and
Motor
buildings
equipment
vehicles
Total
£
£
£
£
11,256,440
3,304,637
60,633
14,621,710
-
68,725
-
68,725
-
-
-
-
11,256,440
3,373,362
60,633
14,690,435
3,245,883
3,006,391
56,596
6,308,870
203,275
107,754
4,037
315,066
-
-
-
-
3,449,158
3,114,145
60,633
6,623,936
7,807,282
259,217
-
8,066,499
8,010,557
298,246
4,037
8,312,840
Investment
Property
£
330,000
5,000
335,000
335,000
330,000



28

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Fixed asset investments

Holdings of more than 20%

The company holds more than 20% of the share capital of the following companies:
Company Country of registration or Shares held
Incorporation Class %
Subsidiary undertakings
Wrea Services Limited England and Wales Ordinary 100

The aggregate amount of capital and reserves and the results of these undertakings for the last relevant financial year were as follows:

Capital & Profit/(loss)
Reserves For the year
Principle activities £ £
Ancillary trading association
Wrea Services Limited with a Grammar School 104,222 -
Stocks Group Group
School		 School
2020 2019
2020		 2019
£ £
£		 £
Finished goods and goods for resale 64,520 74,881 4,459 4,168
Debtors Group Group School School
2020 2019 2020 2019
£ £ £ £
Trade debtors 509,230 409,781 509,230 409,781
Other debtors 2,351 2,780 1,899 1,251
Prepayments & accrued income 109,809 122,550 109,869 122,550
621,390 535,111 620,998 533,582
Creditors
a: Amounts falling due within one year Group Group
School		 School
2020 2019
2020		 2019
£ £
£		 £
Bank loans and overdrafts 235,444 231,513 235,444 231,513
Trade creditors 130,349 139,150 104,223 130,425
Other taxation and social security 214,865 202,794 214,338 202,502
Other creditors 967,762 554,469 966,712 552,984
Accruals 59,020 150,954 57,146 149,065
Amounts owed to group undertaking _- _- __ 14,852 __13,280
1,607,440 1,278,880 1,592,715 1,279,769
Bank loans and overdrafts are secured by a first legal mortgage over the freehold property of the School.
b: Creditors: amounts falling due after more than one year
Group		 School
2019 2020
2020		 2019
£ £
£		 £
Bank loans 2,641,044 2,880,547 2,641,044 2,880,547

29

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

12. Creditors (Continued)
c: Amounts of borrowings by year of repayment
Bank loans and overdrafts fall due for repayment:
Within one year
Between one and two years
Between two and five years
After more than five years		 2020
£
235,444
237,827
1,027,714
1,375,503
2,876,488		 2019
£
231,513
235,444
1,037,169
1,607,934
3,112,060

Bank loans and overdrafts secured by a first legal mortgage over the freehold property of the School.

The following information is provided in respect of loans, any repayments of which fall due after more than five years from the balance sheet date: -

At the balance sheet date, the aggregate amount payable in respect of such loans was £2,876,488 (2019: £3,112,060) all of which amounts are repayable by instalments.

In respect of such loans repayable by instalments, instalments amounting to £1,375,503 (2019: £1,607,934) fall due after more than five years.

The loan is repayable over 14.5 years, with interest charged at 1% over LIBOR. The repayment date is December 2027.

Endowments Movements in funds Movements in funds
Group Balance at Incoming Gains/(loss) & Balance at
01.08.19 Resources Transfers 31.07.20
£ £ £ £
Permanent Endowments
(Bursary) Investments 66,220 - 1,250 67,470
George R Hall 15,642 - 250 15,892
Katie Cane 141,849 - 2,600 144,449
223,711 - 4.100 227,811

Restricted funds

The income funds of the charity include restricted funds comprising the following unexpected balances of donations and grants held on trust for specific purposes:

Balance at Incoming Resources Balance at
01.08.19 resources Expended 31.07.20
£ £ £ £
1986 Appeal – Multipurpose Hall 115,080 - (5,480) 109,600
1985 Appeal – Technology Centre 323,495 - (6,481) 317,014
2001 Appeal – Science Block and
Classrooms 121,076 - (2,503) 118,573
Drama Studio 163,341 - (4,415) 158,926
Wish List 9,678 - - 9,678
The Waite Building 42,350 - (1,100) 41,250
FKGS Hockey goal posts 3,076 - (1,025) 2,051
FKGS SLH refurbishment 24,000 - (6,000) 18,000
Bursary Funds
Wolfson 48,640 900 - 49,540
850,736 _ _900 (27,004) 824,632

30

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Non-Charitable trading funds
Group Balance at
Profit for		 Balance at
01.08.19
the year		 31.07.20
£
£		 £
Trading profit of subsidiary undertaking 22,412 - 22,412
Analysis of net assets between
funds
Development Other
Unrestricted Appeal 1995 Restricted Endowment
Funds & 2011 Fund Funds
Funds		 Total
Group £ £ £
£		 £
Fund balances at 31.07.20
are represented by:
Tangible fixed assets 7,015,501 435,588 389,045
227,811		 8,067,945
Investments 335,000 - -
-		 335,000
Current assets 888,601 - -
-		 888,601
Current liabilities (1,609,012) - -
-		 (1,609,012)
Long term liabilities (2,641,044) - -
-		 (2,641,044)
Total Net Assets 3,989,046 435,588 389,045 227,811 5,041,490
Unrealised gains incl above
On investments assets 900 4,100 5,000
Total unrealised gains at
31.07.20 900 4,100 5,000
Reconciliation of
movements
in
unrealised
gains on investment assets
Unrealised gains at 01.08.19 15,155
76,756		 91,911
Add: Net gain arising on
revaluation in year 900 4,100 5,000
Unrealised gains at 31.07.20 16,055 80,856 96,911

31

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

16. Analysis of net assets between
funds (Continued)
Development
Unrestricted
Appeal 1995

Funds
& 2011 Fund
School
£
£
Fund balances at 31.07.20
are represented by:
Tangible fixed assets
7,014,055
435,588
Investments
416,810
-
Current assets
769,528
-
Current liabilities
(1,592,715)
-
Long term liabilities
(2,641,044)
-
Total Net Assets
3,966,634
435,588
Unrealised gains incl above
On investments assets
Total unrealised gains at
31.07.20
Reconciliation of movements
in unrealised gains on
investment assets
Unrealised gains at 01.08.19
Add: Net profit arising on
revaluation in year
Unrealised gains at 31.07.20
Cash generated from operations
Net incoming resources
Adjustment for:
Finance costs
Investment income
Gain on investment property
Depreciation & impairment of tangible fixed assets
Movements in working capital
(Increase)/decrease in stock
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Cash generated/(absorbed by) from operations		 Other
Restricted Endowment
Funds
Funds
Total
£
£
£
389,045
227,811
8,066,499
-
-
416,810
-
-
769,528
-
-
(1,592,715)
-
-
(2,641,044)
389,045
227,811
5,019,078
900
4,100
5,000
900
4,100
5,000
15,155
76,756
91,911
900
4,100
5,000
16,055
80,856
96,911
2020
2019
£
£
(198,287)
(381,099)
88,069
140,815
(10,636)
(5,000)
(10,405)
-
315,548
293,789
10,311
(8,434)
(86,279)
(70,348)
324,629
128,232
438,355
92,550

32

DocuSign Envelope ID: 16801CFC-A7D0-438E-8440-FF81552CFA8D

KIRKHAM GRAMMAR SCHOOL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Operating Lease Commitments

Group and Foundation

Financial commitments under non-cancellable operating leases will result in the following payments falling due in the next financial year.

due in the next financial year.
Equipment Equipment
2020 2019
Expiring: £ £
Within one year - -
Within two to five years 371 5,713
371 5,713

Transactions with Governors and Connected Persons

The aggregate amount of travel expenses reimbursed to various Governors during the year was £612 (2019: £1,376).

Control

The School was under the control of its Board of Governors throughout this and the previous period.

Related party disclosures

The company and group have taken advantage of the exemption available in FRS102 reduced disclosure framework whereby it has not disclosed transactions between group companies which cancel on consolidation.

Net incoming resources

As permitted by Section 408 Companies Act 2006, the holding company’s statement of financial activities has not been included in these financial statements. The net incoming resources for the financial year is made up as follows:

Holding Company’s net incoming resources for the
financial year		 2019
£
(198,287)		 2020
£
(381,099)

33