Registered company number: 06596258 Registered Charity number: 1125375 

BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

GOVERNORS’ REPORT AND FINANCIAL STATEMENTS 

FOR THE YEAR ENDED 31 AUGUST 2023 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## CONTENTS 

||Page|
|---|---|
|Reference and Administrative Details ofthe Charity, its Governors and Advisers|1-2|
|Chair's Statement|3|
|Governors’ Report|4-12|
|Governors’ Responsibilities Statement|a3|
|Independent Auditors’ Report on the Financial Statements|14-17|
|Statement of Financial Activities|18-19|
|Balance Sheet|20 - 21|
|Statement of Cash Flows|22|
|NotestotheFinancialStatements|23-48|





## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023 

## Governors 

Mrs C J Sunley, Chair Mr N J Bliss, Vice Chair Ms S AA Ali Mr 1M Allison Dr J R Elphick, Vice Chair Mr N P Hodges, Old Barnardians Club1 Mr P A Kelsall Ms K J Marshall Mr R | Moffatt Mr P D A Mothersill Ms C M Newnam (resigned 30 April 2023) Mr D C Osborne Dr J K Ramsingh (appointed 1 November 2022, resigned 14 October 2023) Mr E R Rendall Ms AE Rhodes (appointed 1 November 2022) Mr G M Richardson, Durham County Council1 Mr D F Starr, Durham University1 Ms D Vinsome 1 Nominated Governors 

Company registered number 

06596258 

## Charity registered number 

1125375 

Registered office 

Newgate Barnard Castle County Durham DL12 8UN 

## Company secretary 

Mrs S M Metcalf 

## The Headmaster 

Mr AC Jackson 

Page 1 



| 

## BARNARD CASTLE SCHOOL 

(A Company Limited by Guarantee) 

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 

## Independent auditors 

Clive Owen LLP Chartered Accountants and Statutory Auditors 140 Coniscliffe Road Darlington County Durham DL3 7RT 

Bankers 

NatWest Bank Plc 29 Newgate Street Bishop Auckland County Durham DL14 7ET 

## Investment Advisers 

BlackRock Fund Managers Limited 12 Throgmorton Avenue London EC2N 2DL 

Brewin Dolphin 10 Wellington Place Leeds LS1 4AN 

Page 2 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## CHAIR'S REPORT 

## FOR THE YEAR ENDED 31 AUGUST 2023 

## The chair presents her statement for the year. 

It has been a very busy year with pupils embracing the many opportunities available to them providing innumerable highlights with outstanding performances academically, on the sporting field and within the numerous co-curricular activities on offer. 

The dedication and hard work of the Staff was acknowledged and celebrated in the inspection in April 2023 by the ISI (Independent Schools Inspectorate). The Inspectors undertook a Focused Compliance and Educational Quality Inspection of both the Senior and Prep Schools and concluded that the School was deemed ‘Excellent’ for both ‘Academic Achievement’ and ‘Personal Development’ (the full report can be found on the School's website). They acknowledged the work that had gone into the curriculum and the School’s focus on character education, with specific reference to the Apollo platform. The bespoke Apollo App is now firmly embedded into the curriculum allowing the pupils to set, view and reflect upon personal goals, record their experiences, and look back on their time as they move through the School. 

Looking forward, there are a number of well-publicised financial challenges facing the independent education sector over the next few years and the Executive will continue to address these challenges to ensure that the School is well-placed to deal with them, in whatever manner they present themselves. 

Finally, the Headmaster, Mr Tony Jackson, will be leaving the School at the end of the 2023/24 Academic Year and Mr David Cresswell will assume the Headship. 

Mrs C J Sunley Chair of Governors Date: 

Page 3 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2023 

## 1 Structure, Governance and Management 

## 1:4 School Status 

Barnard Castle School is a charitable company limited by guarantee, which owns all of the land, buildings and other assets of the School. It is registered with Companies House (Company Number 06596258) and with the Charity Commission (Charity Number 1125375). 

## 1.2 Governing Document 

The governance of the Charity is set out in its governing document, the Memorandum and Articles of Association. The Charity is a limited company, limited by guarantee, as defined by the Companies Act 2006. The most recent amendment to the Articles of Association was made on 13" September 2019 when the current Articles of Association were adopted. 

## 1.3 Board of Trustees 

The School is governed by a Board of Governors (the Board), comprising Foundation Governors who are appointed by a resolution of the Board, and Nominated Governors who are nominated by the relevant organisations listed in the Articles of Association and appointed by a resolution of the Board. 

The Board of Governors identifies suitable Foundation candidates with the skills and experience appropriate to the perceived needs of the School and who will contribute to maintaining a balanced, diverse and effective Board. A Governors’ skills matrix is maintained to ensure that the core requirement to recruit responsible individuals with an active interest, the time necessary to fulfil their duties and the complementary expertise to add value to the Board, is achieved. 

The Governors all give their time freely and accordingly no remuneration was paid in the year. Details of any expenses and related party transactions are disclosed in note 29 to the Accounts. 

## 1.4 Governor Training 

All new Governors are given a copy of the School's Governor Handbook and an induction which includesa full tour of the School and meetings with key management and staff, and a range of students. Governor training is an ongoing process achieved through internal training and by training programmes and best practice manuals provided by organisations such as AGBIS. All Governors regularly complete a self-review and a general governing body audit is conducted together with an individual skills assessment which provides the opportunity to analyse contribution and to identify any new requirements or additional training needs. 

## 1.5 Operational Management 

The Board determines the general policy and strategic direction of the School in close collaboration with the Headmaster and his Senior Management Team who are responsible for its implementation and administration throughout the Senior and Prep schools. The day-to-day management of the School, therefore, is delegated to the Headmaster, who undertakes the key leadership role overseeing educational, pastoral and administrative functions, supported by his Senior Management Team. 

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## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2023 

## 1.6 Governor Meetings 

The full Board of Governors meets formally three times a year with the Headmaster and his Senior Management Team in attendance. The purpose of the meetings is to determine, agree and ensure effective implementation of the strategic direction, general policies and procedures and financial oversight of the School. To facilitate this process and to ensure optimal output, four committees have been established, each of which meets at least once a term. The members of the committees are selected for their specific relevant expertise and are allocated individual areas of responsibility. The four committees are as follows: 

- e Finance & Estates (Inc. Risk and Audit) e Education, Welfare & Staff Development e Strategy, Marketing & Development e Governance 

The Terms of Reference of each committee are reviewed annually by the full Board. 

## sty Pay Policy for Senior Staff 

The remuneration of the Headmaster is set by the Chair and Vice Chairs of the Board. Senior management salaries are set by the Headmaster and reviewed by the Finance & Estates Committee using a set of diverse criteria including, inter alia, benchmark reports provided by sector associations such as AGBIS, IAPS and the ISC, together with those of respected consultants within the sector. 

## 2 Objectives and Activities 

## 2.1 Charitable Objects and Aims 

Barnard Castle School is an independent day and boarding school in the North of England for boys and girls from the age of 4 to 18. The Governors and the School are always guided by the charitable objectives: 

e toinspire pupils in a safe, happy, and supportive environment; and e to provide an educational experience which combines academic rigour with a breadth of extra-curricular opportunities designed to help each child to find their own individual focus and to develop to their fullest potential. 

## The purpose of the School is: 

“through creating an inspirational, compassionate, and unpretentious environment, we aim to develop young adults with character. They are happy, confident, resilient, intellectually curious, tolerant, driven, and with a foundation of humanity, who are ready and prepared to face, embrace, and lead in an ever-changing world.” 

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## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2023 

The cornerstone of School life continues to be characterised by the following values which were laid down at the School's inception in 1883: 

- e Community Our staff and pupils feel part of something bigger than themselves, not just during their time at School, but for the rest of their lives; 

- e Endeavour 

   - The School encourages its pupils to be intellectually curious, to be multi-dimensional and to embrace new challenges as they arise; 

- e Integrity 

   - Pupils are helped to develop a robust work ethic, to have consistency and humility in their actions towards other people and to apply a strong moral compass in all that they do; 

- e Compassion 

   - Being part of the community requires each individual to care about other people’s happiness. By developing a high level of emotional intelligence, each pupil is expected to treat others with kindness and understanding; 

- e Duty The School is committed to imbue its pupils with an understanding that they have a moral obligation to serve others and to seek out opportunities to enrich the wider community with an altruistic and selfless outlook; and 

- e Enjoyment The community aspires to bring a sense of fun and enjoyment in all that it does for and with others. By striving to be the best version of ourselves and by adopting the values above, we aim to enjoy our lives and make ourselves and those around us happy and proud. 

The Governors confirm that they have complied with their duty to have due regard to the Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant. 

## 2.2 Independent Schools Inspectorate 

In April 2023, the ISI (Independent Schools Inspectorate) undertook a Focused Compliance and Educational Quality Inspection of both the Senior and Prep Schools. 

In addition to meeting all compliance measures, the inspectors awarded the School the top rating of ‘Excellent’ for both ‘Academic Achievement’ and ‘Personal Development’. 

Page 6 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2023 

## 2.3 Welfare 

The School is committed to safeguarding and promoting the welfare of its pupils and staff and expects all those involved with the School to share this commitment. The objective is to create a culture and community where all pupils, staff and parents can speak openly and confidently and feel that they are being listened to, by each other as well as by the School. The aim is to develop self-aware pupils who are empathetic, are armed with a sense of perspective and gratitude and understand the importance of a robust mental health. 

Wellbeing is embedded into the curriculum with themed lessons and programmes such as “Headspace”, which provides a weekly timeslot in which topics such as Mental Health, Equality and Diversity, can be explored in either a group setting, or staff led. As part of this, there is not only dedicated time for oneto-one sessions with their Tutors and opportunities to engage in peer-led discussions on contentious topics, but the School has also seen the immense benefit in providing a varied and inspirational visiting speaker programme. 

## 2.4 Curriculum 

The curriculum is broad and balanced, promoting academic rigour and the rewards of endeavour, the wonder of discovery and the richness that comes from an aptitude for life-long learning. Equally essential to the success of pupils at the School is the development of confidence, integrity, resilience and teamwork, which are learnt in a range of sports and from a wealth of cultural and co-curricular activities. The following sections provide a few examples of the many activities undertaken by the pupils and their achievements. Further information can be found on the School's website. 

The newly created and bespoke Apollo App, exclusive to the School, is used by students across the full age range to record and reflect on their character development along their ‘Barney Journey’. It allows them to set, view and reflect upon personal goals, record their experiences, and look back on their time as they move through the School. 

## e Academic 

For both the GCSE and A-Level pupils, these examinations undertaken in Summer 2023 were their first experience of external academic examinations. Ofqual announced earlier in the Summer that “in 2023 we aim to return results that are in line with those of pre-pandemic years”. Indeed, the expectations of GCSE results were modified in advance, but the pupils still achieved results which exceeded those in 2019. 

The Sixth Form continues to grow, providing an individual programme of guided independence encouraging a productive and reflective approach to private study. In addition to a range of highly valued A Levels and internationally recognised Cambridge Pre-U courses, the pupils have the option to undertake the rigorous, research-based Extended Project Qualification. A successful results day saw each pupil able to continue down their chosen path. 

This academic year saw the return of many wide-ranging educational trips and visits following the restrictions of the pandemic. Prep School pupils visited London and France and in Senior School, the much loved trips to Iceland and Greece returned. 

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## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2023 

## ¢ Activity Programme and House Activities 

An integral part of the character education at Barney is the Activity Programme and House Activities and all pupils throughout the School are encouraged to take part in the excellent array of activities on offer which range from CCF and sport to chess and debating. Participation in these activities is seen as a core requirement for all pupils allowing them to develop their character and learn new skills. 

## e Sport 

Sport continues to thrive with all pupils taking regular part in a diverse range of sporting activities. Pupils continue to benefit from the specialised coaching and extensive facilities. A significant number of pupils represented their county as well as competing on a local and national level. The U14 Girls squash team have had a very successful season becoming National School Squash champions. In rugby, a Sixth Form pupil has been selected for the England U18 Rugby camps, and in football, a pupil is now playing for Middlesbrough FC's Ladies first team and has been offered a scholarship to attend university in the USA. Summer 2023 also saw the return of the first sports tour to South Africa since 2019, when 75 tourists took part and played hockey, netball and rugby against a number of schools. 

Over the first Exeat weekend in the Michaelmas Term, the School hosted 32 rugby teams and 12 hockey teams for the U10 and U12 hockey and rugby festivals. 

Prep School pupils continue to impress in a range of sports. At the HMC Swimming in Leeds two pupils achieved first place, and in equestrian, a pupil represented England at show jumping. The Tag Rugby festival for Year 3s hosted by Prep School was attended by over 200 pupils. 

The School has seen a huge increase in participation rates in cricket from years 3 to 13 and hosted a number of cricket events including the Year 3s Cricket Festival which involved over 200 local primary school pupils. 

The resilience, courage, teamwork, camaraderie, humility, and dedication demonstrated by the pupils has been second to none. 

- e Music and Drama 

Music continues to flourish in the School with the various School Choirs, Bands and Ensembles giving numerous performances internally as well as externally. Chapel Choir, which now boasts over 10% of the Senior School population, sang Evensong at York Minster and Durham Cathedral, and one pupil sang at the Royal Albert Hall as part of the National Youth Choir of Great Britain. 

The hugely successful Whole School Musical was Les Miserables and involved a cast of 54 pupils from Years 7 — 13 including 39 soloists, supported by a tech crew of 15, manned entirely by pupils. Senior School pupils also provided their support to Prep School as Years 5&6 performed the musical “Robin and the Sherwood Hoodies” and Years 3&4 performed “The Bee Musical” to appreciative audiences of parents. 

The partnership between the School and the Teesdale Operatic Society involved 13 BCS pupils and some staff in their production of School of Rock. 

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## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2023 

## e Combined Cadet Force (CCF) 

The CCF programme continues to prosper with a cadet strength of 140 Army and 26 RAF cadets. CCF offers pupils a broad range of challenging, exciting, adventurous, and educational activities aimed at developing personal responsibility, leadership, and self-discipline. 

RAF cadets attended an Air Experience Flying Day at RAF Leeming and success was achieved in the Black Rat Cadet Challenge where the School were overall champions and at the RFCA Indoor Tri Climb competition. 

## e Duke of Edinburgh Award 

The Duke of Edinburgh programme continues to be very popular with 131 pupils participating, of whom 59 completed expedition training, 6 completed their Gold Award and 30 achieved their Silver Award. 

The Junior Duke Award, which was introduced into the Prep School in 2021, saw 58 pupils complete their award in the Michaelmas Term. 

## 3 Public Benefit 

3.1 Provision of Education 

The School's key public benefit is delivered through the provision of education for its pupils. 

In addition to educating pupils privately and saving the public purse in excess of £4million, assuming a cost of £6,000 per pupil per annum, the School contributes to both national and local economies and also generates funds from overseas. Oxford Economics and Independent School Council Research undertook an assessment which showed that the School's contribution to national GDP in the financial year 2021/22 was £19m, including the provision of a £12m contribution to County Durham’s GDP. The Governors believe that this assessment remains valid, and that the School’s contribution to both the national and local economies will have increased as a result of the increase in student numbers, and other factors, such as the increased minimum wage and inflation. 

## 3.2 Transformational Bursaries and Scholarships 

The School has long focused on developing young people of character; individuals with the confidence, compassion, creativity, and humanity to make a real difference in our ever-changing world. Moreover, providing access to children, regardless of their means, has been a core tenet of the School since 1881, when the first governing document enshrined this principle. 

While the School does not have the benefit of a strong financial endowment, the School continues to support a number of pupils through Bursaries and Scholarships. Parents are encouraged to apply for Bursaries, which are awarded based on a fair and rigorous means testing process; the means assessment is revisited each year. As a result, 33 pupils received means-tested assistance with fees this year (equivalent to 46 full places). Financial assistance and educational extension opportunities were also awarded to a number of pupils who successfully gained places on the Scholarship Programme (116 in the current year). 

A fifth Ukrainian pupil was welcomed by the School at the start of the Academic Year. The School continues to support the Springboard Charity which aims to provide transformational bursaries to a number of looked after and vulnerable children by placing them in independent schools, with the second Springboarder starting in Year 7. 

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## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2023 

## 3.3 Support of the Local Community 

A core principle of the School is the belief that it has a duty to support the local community wherever it is realistic to do so. The School has continued to provide facilities and support to a number of different organisations including: 

## Use of the School’s sports facilities: 

- e Barnard Castle Football Club e Raby Castle Cricket Club e Barnard Castle Cricket Club 

- e Middleton Cricket Club e Glaxo Squash Club e¢ Glaxo Football Club e Durham Palatinates Netball Club e Classic Car Show 

- e North-East Netball Club e Teesdale Operatic Society 

- e Durham County School Cross Country e Pony Club Triathlon e Durham County Cricket (various ages) e Girls U11 County Cricket 

## Professional development: 

- e Hosting professional development opportunities for teachers and support staff from other schools. 

- e Governors and staff serve on the Governing Bodies of various maintained schools. e The School provides a large number of examiners to the main examination boards and one of its Heads of Department advises Durham University on PGCE applicants. 

## Hosting events: 

- e The Festival Weekend where the School hosted 32 rugby teams and 12 hockey teams from both the state and independent sector allowing over 400 children the opportunity to safely return to sport. 

- e The Cricket Festival saw over 200 pupils from 8 different primary schools experiencing coaching and game play. 

- e Summer Activity Weeks open to the whole community. 

## Use of the School’s facilities: 

- e Duke of Edinburgh's Award local assessors use the School as a meeting place for coordination and planning. 

- e The Rotary Club use the auditorium for charity lectures. e Barnard Castle School Choral Society use the Chapel. 

- e The Chapel is available for use by the community and visitors are encouraged on Heritage Open Days. 

- e The School makes additional parking available without charge to the Bowes Museum on busy occasions and for special exhibitions. Further, the School is a designated place of safety for the Bowes Museum's collection of art and artefacts. 

- e The School's playing fields are used as landing zones for helicopters carrying members of the Royal Family and other dignitaries to local engagements. 

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## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023 

The School recognises and values the symbiotic relationship it has with the communities of Barnard Castle, Teesdale, County Durham and North Yorkshire. The School aims to makea positive and valued contribution to the wider community, advancing the cause of education and social welfare. To achieve this, the School strives to be recognised locally, nationally and internationally as an outstanding developer of young adults; a trusted partner for the provision of educational, sport and welfare support and resources; a great employer and a good neighbour. 

The Activity programme provides an opportunity for all pupils and staff to provide a service to the wider community with activities such as planting hedgerows, litter picking, and organising fund-raising events. Pupils raised over £5,000 for the charity Storehouse through non-uniform days and collections. 

## 4 Financial Review 

## 4.1 Trading Performance 

The Financial Statements show an operating surplus of £395,473 for the year before pension adjustments (2022: surplus of £224,978). Included within these figures was a loss on investments of £3,427 (2022: loss of £129,198). 

Costs were significantly higher than the previous year due to the high rates of inflation but were mitigated to an extent by the strong pupil numbers. 

The net assets of the School at the balance sheet date were £9,212,325 (2022: £8,816,852). Fixed asset additions amounted to £1,193,077 in the year, of which £545,437 was spent on major improvements to the boys’ boarding bathrooms, the sixth form centre and the catering facilities. 

## 4.2 Reserves and Investment Policy 

The policy of the School is to achieve an annual operating surplus which secures its future financial viability and allows continued investment in its infrastructure. As at 31 August 2023, the School held fund balances of £9,212,325 comprising £8,572,604 unrestricted funds, £593,846 restricted funds and £45,875 endowment funds. 

After making appropriate enquiries the Governors have a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future. 

## 4.3 Investment Policy 

The Governors’ investment powers are derived from the powers vested in them under the School's Articles of Association and they have delegated the management of the investment portfolio to Brewin Dolphin and BlackRock. The Governors’ policy is to adopt a low to medium risk investment strategy. 

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Se RE aM ee eee 

## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023 

## 4.4 Risk Management 

The Governors 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 the key risks faced by the School. The School maintains an up-to date register of the main areas of risk to the ongoing operations of the School. Risks are categorised as Governance and Strategic, Operational, Financial and External. 

The main risk areas for the School are risks associated with the protection of the School's pupils, staff and assets. Procedures and systems to identify and minimise these risks are regularly reviewed and updated. Within financial risks, liquidity risk is managed by a combination of loans to finance long term projects coupled with the judicious use of cash reserves to deal with monthly fluctuations in cash flow. 

## 4.5 Future Plans 

The School's Strategic Plan, supported by the Development Plan and Capital Plan, set out the plans of the Headmaster and his Senior Management Team for the School for the next 5 to 10 years. These documents are regularly reviewed and updated and have the full support of the Governing Body. The Plans havea level of flexibility incorporated within them to allow for such events as the recent Pandemic to ensure that the School operates within agreed, prudent financial parameters. 

There are a number of well-publicised financial challenges facing the independent education sector over the next few years. The flexibility built into the Capital Plan is designed to ensure that there is a balance between continuing investment in the growth and development of the School and its long-term sustainability. 

## Disclosure of information to auditors 

Each of the persons who are Governors at the time when this Governors’ Report is approved has confirmed that: 

- ° so far as that Governor is aware, there is no relevant audit information of which the charity's auditors are unaware, and 

- ° that Governor has taken all the steps that ought to have been taken as a Governor in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. 

## Auditors 

The auditors, Clive Owen LLP, have indicated their willingness to continue in office. The designated Governors will propose a motion reappointing the auditors at a meeting of the Governors. 

Approved by order of the members of the Board of Governors on ics Lod on their behalf by: 

and signed 

Mrs C J Sunley Chair 

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## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## STATEMENT OF GOVERNORS' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2023 

The Governors (who are also the Directors of the Charity for the purposes of company law) are responsible for preparing the Governors’ Report including the Strategic 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 Governors to prepare financial statements for each financial year. Under company law, the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Governors are required to: ° select suitable accounting policies and then apply them consistently; ° observe the methods and principles of the Charities SORP (FRS 102); ° make judgements and accounting estimates that are reasonable and prudent; * state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- ° prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. 

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The Governors are responsible for the maintenance and integrity of the Charity and financial information included on the Charity's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements. 

- In so far as the Governors are aware: e there is no relevant audit information of which the charity auditor are unaware; and e the Governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

Approved by order of the members of the Board of Governors on JN. 23. and signed on its behalf by: 

Mrs C J Sunley Chair 

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## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNARD CASTLE SCHOOL 

## Opinion 

We have audited the financial statements of Barnard Castle School (the 'charity’) for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 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 state of the charitable company's 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 requirements of 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Governors' 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 Charity'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 Governors with respect to going concern are described in the relevant sections of this report. 

## Other information 

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Governors are responsible for the other information contained within the Annual Report. 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 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. 

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## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNARD CASTLE SCHOOL (CONTINUED) 

## Opinion 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 Governors' Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements. 

- ° the Governors’ Report and the Strategic Report have been prepared in accordance with applicable legal requirements. 

## Matters on which we are required to report by exception 

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors' Report including the Strategic Report. 

We have nothing to report in respect of the following matters in relation to which 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 

- e the financial statements are not in agreement with the accounting records and returns; or 

- e certain disclosures of Governors' remuneration specified by law are not made; or ° we have not received all the information and explanations we require for our audit. 

## Responsibilities of Governors 

As explained more fully in the Governors' Responsibilities Statement, the Governors (who are also the 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 Governors 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so. 

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## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNARD CASTLE SCHOOL (CONTINUED) 

## Our 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 Auditors' 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. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this. 

We undertake the following procedures to identify and respond to these risks of non-compliance: 

- e Understanding the key legal and regulatory frameworks that are applicable to the Charity. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of noncompliance throughout the audit. We determined the most significant of these to be around employment law, charity law, company law, health and safety law, food and hygiene regulations, taxation law, Independent Schools Regulator and GDPR. 

- e Enquiry of Governors and management as to policies and procedures to ensure compliance and any known instances of non-compliance 

- e Review of board minutes and correspondence with regulators 

- e Enquiry of Governors and management as to areas of the financial statements susceptible to fraud and how these risks are managed 

- e Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies 

- e Identifying and testing unusual journal entries, with a particular focus on manual journal entries 

## Through these procedures, we did not become aware of actual or suspected non-compliance. 

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 

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

Page 16 



BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARNARD CASTLE SCHOOL (CONTINUED) 

## Use of our report 

This report is made solely to the Charity'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 Charity'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 Charity and its members, as a body, for our audit work, for this report, or for the opinions we have formed. 

## Antony Luckett BCom BFP FCA DChA (Senior Statutory Auditor) 

for and on behalf of Clive Owen LLP Chartered Accountants and Statutory Auditors 140 Coniscliffe Road Darlington County Durham DL3 7RT Date: 1S Deuwnhe Orr 

Page 17 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023 

|||Unrestricted|Restricted|Endowment|Total|Total|
|---|---|---|---|---|---|---|
|||funds|funds|funds|funds|funds|
|||2023|2023|2023|2023|2022|
||Note|£|£:|£|£|£|
|Income and|||||||
|endowments from:|||||||
|Donations and legacies|3|384,990|-|-|384,990|15,937|
|Charitable activities:|6||||||
|School fees||12,412,904|-|-|12,412,904|11,619,316|
|Other income||43,629|-|-|43,629|41,325|
|Cost of providing|||||||
|school buses||(6,001)|-|-|(6,001)|(42,691)|
|Remissions||(1,226,652)|-|-|(1,226,652)|(1,269,480)|
|Other trading activities|4|189,533|-|-|189,533|192,234|
|Investments|5|38,666|16,133|-|54,799|16,317|
|Total||11,837,069|16,133|-|11,853,202|10,572,958|
|Expenditure on:|||||||
|Raising funds|7|52,447|32351|-|55,678|72,332|
|Charitable activities:|8||||||
|Teaching and|||||||
|governance||6,529,900|-|-|6,529,900|5,863,418|
|Premises||2,717,647|-|-|2,717,647|2,362,515|
|Welfare||1,206,327|-|-|1,206,327|1,031,168|
|Other charitable|||||||
|activities||939,403|5,347|-|944,750|889,349|
|Total||11,445,724|8,578|-|11,454,302|10,218,782|
|Net income before|||||||
|net losses on|||||||
|investments||391,345|7,555|-|398,900|354,176|
|Net (losses)/gains on|||||||
|investments||-|(3,427)|-|(3,427)|(129,198)|
|Net income/||———————|Ss,|OS,|Ss|SS|
|(expenditure)||391,345|4,128|-|395,473|224,978|
|Transfers between|||||||
|funds|23|15,496|(15,496)|-|-|-|



Page 18 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED) 

FOR THE YEAR ENDED 31 AUGUST 2023 

|||Unrestricted|Restricted|Endowment|Total|Total|
|---|---|---|---|---|---|---|
|||funds|funds|funds|funds|funds|
|||2023|2023|2023|2023|2022|
||Note|£|a|£|£|£|
|Net movement in|||||||
|funds before other|||||||
|recognised|||||||
|gains/(losses)|||||||
|broughtforward||406,841|(11,368)|*|395,473|224,978|
|Net movement in||ass|SSS|See|ee|SS|
|funds||406,841|(11,368)|.|395,473|224,978|
|Reconciliation of|||||||
|funds:|||||||
|Total funds brought|||||||
|forward||8,165,763|605,214|45,875|8,816,852|8,591,874|
|Net movement in funds||406,841|(11,368)|-|395,473|224,978|
|Total funds carried||oe|||||
|forward||8,572,604|593,846|45,875|9,212,325|8,816,852|



The notes on pages 23 to 48 form part of these financial statements. 

Page 19 



## BARNARD CASTLE SCHOOL 

(A Company Limited by Guarantee) REGISTERED NUMBER: 06596258 

## BALANCE SHEET AS AT 31 AUGUST 2023 

||||2023||2022|
|---|---|---|---|---|---|
||Note||£||£|
|Fixed assets||||||
|Intangible assets|13||101,473||6,454|
|Tangible assets|14||10,380,529||10,053,478|
|Investments|15:||511,996||510,953|
||||10,993,998||10,570,885|
|Current assets||||||
|Stocks|16|56,371||55,045||
|Debtors|17|789,056||819,364||
|Cash at bank and in hand||2,479,629||2,612,676||
|||3,325,056||3,487,085||
|Creditors: amounts falling due within one||||||
|year|18|(3,161,442)||(3,074,291)||
|Net current assets|||163,614||412,794|
|Total assets less current liabilities|||11,157,612||10,983,679|
|Creditors: amounts falling due after more||||||
|than one year|19||(1,945,287)||(2,166,827)|
|Net assets excluding pension asset|||9,212,325||8,816,852|
|Totalnetassets|||9,212,325||8,816,852|



Page 20 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) REGISTERED NUMBER: 06596258 

## BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2023 

|||2023|2022|
|---|---|---|---|
||Note|pa|e|
|Charity funds||||
|Endowment funds|23|45,875|45,875|
|Restricted funds|23|593,846|605,214|
|Unrestricted funds|23|8,572,604|8,165,763|
|Totalfunds||9,212,325|8,816,852|



## Total funds 

The financial statements were approved and authorised for issue by the Governors on edA...ats BSF and signed on their behalf by: 

Mrs C J— Chair 

Page 21 



## BARNARD CASTLE SCHOOL 

(A Company Limited by Guarantee) 

## STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023 


**----- Start of picture text -----**<br>
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|2023|2022|
|Note|£|£|
|Cash|flows|from|operating|activities|
|Net|cash|used|in|operating|activities|25|1,290,894|1,497,102|
|Cash|flows|from|investing|activities|
|Proceeds|from|the|disposal|of|tangible|fixed|assets|900|2,750|
|Purchase|of|intangible|assets|(99,038)|-|
|Purchase|of|tangible|fixed|assets|(1,094,039)|(513,068)|
|Proceeds|from|sale|of|investments|45,511|95,688|
|Purchase|of|investments|(49,981)|(97,346)|
|Dividend|income|16,133|13,253|
|Interest|received|38,666|3,064|
|Net|cash|used|in|investing|activities|(1,141,848)|(495,659)|
|Cash|flows|from|financing|activities|
|Loan|repayments|in|year|(49,085)|(49,094)|
|Capital|repayments|in|year|(97,369)|(64,911)|
|Repayments|of|finance|leases|(135,639)|(94,674)|
|Net|cash|used|in|financing|activities|(282,093)|(208,679)|
|Change|in|cash|and|cash|equivalents|in|the|year|(133,047)|792,764|
|Cash|and|cash|equivalents|at|the|beginning|of|the|year|2,612,676|1,819,912|
|Cash|and|cash|equivalents|at|the|end|of the|year|26|2,479,629|2,612,676|

**----- End of picture text -----**<br>


The notes on pages 23 to 48 form part of these financial statements 

Page 22 



| | | 

## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## i Accounting policies 

## 1.1 Basis of preparation of financial statements 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) and the Companies Act 2006. The financial statements have been prepared under the historial cost convention with the exception of investments which are included at market value. 

There were no material departures from the standard. 

Barnard Castle School 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. 

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts. 

The financial statements are reported in £ sterling. 

- 1.2 Income 

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. 

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured. 

## 1.3 Expenditure 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent. 

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. 

Expenditure on charitable activities is incurred in directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. 

Page 23 



## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 1. Accounting policies (continued) 

## 1.3 Expenditure (continued) 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs 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. 

## 1.4 Tangible fixed assets and depreciation 

No depreciation is provided on freehold land. 

Tangible fixed assets are measured at cost less accumulated depreciation and impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis: 

Freehold property - 2% straight line Plant and machinery - 5% straight line Motor vehicles - 10 - 25% straight line Fixtures and fittings - 5 - 33% straight line Building alterations - 2- 20% straight line Computer equipment - 20 - 33% straight line 

## 1.5 Intangible assets and amortisation 

Intangible assets are initially recognised at cost and subsequently stated at cost net of amortisation and any provision for impairment. Intangible assets are being amortised over their expected useful lives on the following straight line basis: 

Amortisation is provided on the following basis: 

Computer Software - 20 - 25% straight line 

## 1.6 Stocks 

Stocks are valued at the lower of cost and estimated selling price less costs to sell. 

## 1.7 Taxation 

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


**----- Start of picture text -----**<br>
|<br>**----- End of picture text -----**<br>


Page 24 



| 

BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 1. Accounting policies (continued) 

## 1.8 Fund accounting 

General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the Charity and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

Endowment funds represent the permanent funds of the School. All income generated by these funds are unrestricted and used for the purpose of the School. 

Investment income, gains and losses are allocated to the appropriate fund. 

- 1.9 Pensions 

Retirement benefits to employees of the Charity are provided by the Teachers' Pension Scheme ("TPS") and the Local Government Pension Scheme ("LGPS"). These are defined benefit schemes. Non-teaching staff are offered retirement benefits by The Pension Trust, a defined contribution scheme. 

| 

| 

| 

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the Charity in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. TPS is an unfunded multi employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate. 

The LGPS is a funded multi-employer scheme and the assets are held separately from those of the Charity in separate government administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each Balance Sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. 

Actuarial gains and losses are recognised immediately in other recognised gains and losses. 

The School exited from the Local Government Pension Scheme on 10 March 2023. In accordance with Section 28.22 of FRS 102, as there is no certainty the Charity will benefit, the asset is not recognised within these financial statements. 

## 1.10 Investments 

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. 

| 

Page 25 



## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 1; Accounting policies (continued) 

## 1.11 Provisions 

Provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, for which it is probable that a transfer of economic benefit will be required in settlement and the amount of the settlement can be estimated reliably. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 

## 1.12 Operating leases 

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term. 

## 1.13 Financial instruments 

The Charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the School and their measurement basis are as follows: 

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 17. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at face value. 

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised costs as detailed in notes 18 and 19 . Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument. Hire purchase and leasing commitments Assets obtained under hire purchase contracts and 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 the shorter. The interest element of these obligations is charged to the Balance Sheet over the relevant period. The capital element of the future payments is treated asa liability. 

## 1.14 Hire purchase and leasing commitments 

Page 26 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 2: Critical accounting estimates and areas of judgement 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

## Critical accounting estimates and assumptions: 

The School makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. LGPS - The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 28, will impact on the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 August 2022. The School has since exited from the Local Government Pension Scheme (see note 1.9). 

Bad debt provision - There are two provisions included within the financial statements; full provision and partial provision. The full provision provides for 100% of balances that are not considered to be recoverable. The partial provision provides for 25% of balances that are considered doubtful debts. The total bad debt provision within the financial statements is £123,487 (2022: £140,098). 

Page 27 



| | 

## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 3. Income from donations and legacies 


**----- Start of picture text -----**<br>
||||||||
|---|---|---|---|---|---|---|
|Unrestricted|Total|Total|
|funds|funds|funds|
|2023|2023|2022|
|£|£|£|
|Donations|68,145|68,145|8,064|
|Legacies|316,845|316,845|7,873|
|Total|2023|384,990|384,990|15,937|
|Total|2022|15,937|15,937|
|Income|from|other trading trading|activities|
|Unrestricted|Total|Total|
|funds|funds|funds|
|2023|2023|2022|
|£|£|£|
|Lettings|and|event|income|189,533|189,533|192,234|
|Total|2023|189,533|189,533|192,234|
|Total|2022|192,234|192,234|

**----- End of picture text -----**<br>


4. Income from other trading trading activities 

5: Investment income 


**----- Start of picture text -----**<br>
||||||||||
|---|---|---|---|---|---|---|---|---|
|Unrestricted|Restricted|Total|Total|
|funds|funds|funds|funds|
|2023|2023|2023|2022|
|£|£|£|£|
|Investment|income|from|listed|investments|-|16,133|16,133|13,253|
|Deposit|account|interest|38,666|-|38,666|3,064|
|Total|2023|38,666|16,133|54,799|16;317|
|Total|2022|3,064|13,253|16,317|

**----- End of picture text -----**<br>


Page 28 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 6. Income from charitable activities 

||Unrestricted|Total|Total|
|---|---|---|---|
||funds|funds|funds|
||2023|2023|2022|
||£|£|£|
|School fees|12,412,904|12,412,904|11,619,316|
|Other income|43,629|43,629|41,325|
|Cost of providing school buses|(6,001)|(6,001)|(42,691)|
|Remissions|(1,226,652)|(1,226,652)|(1,269,480)|
|Total 2023|11,223,880|11,223,880|10,348,470|
|Total2022|10,348,470|10,348,470||



Page 29 



## BARNARD CASTLE SCHOOL 

(A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## i (= Raising funds - expenditure 

## Other trading activities 

||Unrestricted|Restricted|Total|Total|
|---|---|---|---|---|
||funds|funds|funds|funds|
||2023|2023|2023|2022|
||£|3|£|E|
|Lettings and event costs|52,447|-|52,447|68,508|
|Investment management fees|-|3,231|3,231|3,824|
||52,447|3,231|55,678|12,332|
|Total2022|68,508|3,824|72,332||



## 8. Analysis of charitable expenditure by activities 

||Direct|Support|Total|Total|
|---|---|---|---|---|
||costs|costs|funds|funds|
||2023|2023|2023|2022|
||£|E|£|£|
|Teaching and Governance|6,256,203|273,697|6,529,900|5,863,418|
|Premises|1,949,242|770,111|2,719,353|2,362,515|
|Welfare|1,206,327|-|1,206,327|1,031,168|
|Other|865,430|77,614|943,044|889,349|
||10,277,202|1,121,422|11,398,624|10,146,450|
|Total2022|9,266,922|879,528|10,146,450||



In 2023 of the total charitable expenditure of £11,396,918 (2022: £10,146,450), £11,391,571 (2022: £10,141,103) was to unrestricted funds, £5,347 (2022: £5,347) was to restricted funds and £Nil (2022: £Nil) was to endowment funds. 

Page 30 



## BARNARD CASTLE SCHOOL 

(A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 8. Analysis of charitable expenditure by activities (continued) 

## Analysis of direct costs 

||Teaching||||||
|---|---|---|---|---|---|---|
||and||||Total|Total|
||Governance|Premises|Welfare|Other|funds|funds|
||2023|2023|2023|2023|2023|2022|
||&|£|£|£|£|£|
|Staff costs|5,605,160|901,654|672,722|550,966|7,730,502|7,114,435|
|Teaching|||||||
|resources|279,568|-|-|.|279,568|220,321|
|Premises and|||||||
|grounds|-|97,251|-|-|97,251|102,856|
|Rates|.|140,962|-|.|140,962|73,633|
|Insurance|18,644|91,456|-|.|110,100|99,168|
|Light, heat and|||||||
|water|-|301,292|.|-|301,292|273,841|
|Other teaching|||||||
|costs|232,726|-|-|-|232,726|155,488|
|Travel|120,105|-|(340)|-|119,765|88,722|
|Catering|-|-|514,814|-|514,814|495,353|
|Laundry|.|-|3,762|-|3,762|7,224|
|Nursing|-|-|15,369|-|15,369|12,853|
|Cleaning|-|82,350|-|.|82,350|79,577|
|Maintenance|.|334,277|-|-|334,277|247,218|
|Marketing and|||||||
|development|-|-|-|114,079|114,079|80,850|
|IT costs|.|-|-|106,648|106,648|108,476|
|Administration|-|-|-|94,907|94,907|88,861|
|Recruitment|.|.|-|23,884|23,884|22,408|
|Bad debts|-|.|-|(25,054)|(25,054)|(4,362)|
||6,256,203|1,949,242|1,206,327|865,430|10,277,202|9,266,922|
|Total2022|5,776,201|1,641,647|1,031,168|817,906|9,266,922||



Page 31 



## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 8. Analysis of charitable expenditure by activities (continued) 

## Analysis of support costs 

|||||Total|Total|
|---|---|---|---|---|---|
||Governance|Premises|Other|funds|funds|
||2023|2023|2023|2023|2022|
||£|£|£|E|ra|
|Depreciation and amortisation|-|770,617|-|770,617|723,414|
|Surplus on disposal ofassets|.|(506)|-|(506)|(2,546)|
|Bank charges|-|-|14,210|14,210|14,680|
|Bank interest|-|-|52,444|52,444|39,486|
|Leasing interest|-|-|10,271|10,271|W207|
|Interest paid to HURC|-|-|689|689|-|
|Governance costs|273,697|-|-|273,697|87,217|
||273,697|770,111|77,614|1,121,422|879,528|
|Total 2022|87,217|720,868|71,443|879,528||
|Net income/(expenditure)||||||
|Net income/(expenditure) is stated after charging/(crediting):||||||
|||||2023|2022|
|||||ai|£|
|Auditors’ remuneration||||16,200|11,000|
|Depreciation - owned assets||||712,930|671,245|
|Depreciation - assets on finance|lease|||53,668|50,666|
|(Surplus) on disposal of fixed assets||||(506)|(2,546)|
|Computer software amortisation||||4,019|1,503|
|Operatingleasepayments||||75,806|119,233|



9. Net income/(expenditure) 

## 10. Auditors’ remuneration 

||2023|2022|
|---|---|---|
||£|£|
|Fees payable to the Charity's auditor for the audit of the Charity's annual|||
|accounts|16,200|11,000|
|Fees payable to the Charity's auditor in respect of:|||
|All taxation advisory services not included above|475|430|
|Allnon-auditservicesnotincludedabove|6,019|6,474|



Page 32 



## BARNARD CASTLE SCHOOL 

(A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 11. Governors’ remuneration and benefits 

During the year, no Governor received any remuneration or other benefits (2022: ENil). 

During the year ended 31 August 2023, travel expenses, being the only expenses reimbursed to Governors, totalled £2,348. These were reimbursed or paid directly to 4 Governors (2022 - £2,176 to 5 Governors). 

## 12. Staff costs 

||2023|2022|
|---|---|---|
||£|£|
|Wages and salaries|6,072,294|5,514,233|
|Social security costs|600,322|550,889|
|Other pension costs|1,057,886|1,049,313|
||7,730,502|7,114,435|



The average number of persons employed by the Charity during the year was as follows: 

||2023|2022|
|---|---|---|
||No.|No.|
|Teaching|111|108|
|Support|22|19|
|Welfare|32|26|
|Premises|39|38|
||204|191|



The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 

|||||2023|2022|
|---|---|---|---|---|---|
|||||No.|No.|
|In|the|band|£60,001 - £70,000|4|4|
|In|the|band|£70,001 -£80,000|1|1|
|In|the|band|£130,001 - £140,000|.|1|
|In|the|band|£140,001-£150,000|1|-|



Pension contributions of £100,326 (2022: £68,193) were made to defined benefit and contribution schemes on behalf of these employees. 

The total amount of employee remuneration and benefits (including employer national insurance and pension contributions) received by key management personnel for their services to the School was £731,430 (2022: £698,237). 

Page 33 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

|13.|Intangible assets||
|---|---|---|
|||Computer|
|||software|
|||£|
||Cost||
||At 1 September 2022|44,134|
||Additions|99,038|
||At 31 August 2023|143,172|
||Amortisation||
||At 1 September 2022|37,680|
||Charge for the year|4,019|
||At 31 August 2023|41,699|
||Net book value||
||At 31 August 2023|101,473|
||At31August2022|6,454|



Page 34 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 14. Tangible fixed assets 

||Freehold|Plant and|Fixtures|Motor|Computer||
|---|---|---|---|---|---|---|
||property|machinery|andfittings|vehicles|equipment|Total|
||£|E|£|£|£|£|
|Cost or valuation|||||||
|At 1 September 2022|14,368,803|1,015,714|2,135,347|58,641|842,355|18,420,860|
|Additions|943,362|-|125,387|8,000|17,290|1,094,039|
|Disposals|-|-|-|(2,100)|.|(2,100)|
|At 31 August 2023|15,312,165|1,015,714|2,260,734|64,541|859,645|19,512,799|
|Depreciation|||||||
|At<br>1 September 2022|6,059,374|285,230|1,484,097|16,519|522,162|8,367,382|
|Charge for the year|456,930|50,785|118,994|8,499|131,386|766,594|
|On disposals|-|:|-|(1,706)|-|(1,706)|
|At 31 August 2023|6,516,304|336,015|1,603,091|23,312|653,548|9,132,270|
|Net book value|||||||
|At 31 August 2023|8,795,861|679,699|657,643|41,229|206,097|10,380,529|
|At31August2022|8,309,429|730,484|651,250|42,122|320,193|10,053,478|



Included in cost of freehold property is freehold land of £55,240 (2022: £55,240) which is not depreciated. 

Page 35 



## BARNARD CASTLE SCHOOL 

(A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

Fixed assets, included in the above, which are held under finance leases are as follows: 

|||2023|2022|
|---|---|---|---|
|||£|7|
||Cost|||
||At<br>1 September|1,033,341|993,321|
||Additions|-|40,020|
|||1,033,341|1,033,341|
||Depreciation|||
||At1September|282,292|231,626|
||Charge for year|53,668|50,666|
|||335,960|282,292|
||Net book value|||
||At 31 August|697,381|712,029|
|15.|Fixed asset investments|||
||||Listed|
||||investments|
||||£|
||Cost or valuation|||
||At<br>1 September 2022||510,953|
||Additions||49,981|
||Disposals||(45,511)|
||Revaluations||(3,427)|
||At 31 August 2023||511,996|
||Net book value|||
||At 31 August 2023||511,996|
||At31August2022||510,953|



Page 36 



## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 16. Stocks 

|||2023|2022|
|---|---|---|---|
|||£|£|
||Stocks|56,371|55,045|
|17.|Debtors|||
|||2023|2022|
|||£|£|
||Due within one year|||
||Trade debtors|265,292|242,795|
||Other debtors|6,153|26,800|
||Prepayments and accrued income|517,611|549,769|
|||789,056|819,364|



## 18. Creditors: Amounts falling due within one year 

||2023|2022|
|---|---|---|
||£|£|
|Bank loans (see note 20)|146,085|146,492|
|Trade creditors|546,402|662,088|
|Other taxation and social security|286,386|271,211|
|Finance leases (see note 21)|119,796|135,639|
|Other creditors|244,703|146,642|
|Accruals and deferred income|1,818,070|1,712,219|
||3,161,442|3,074,291|
||2023|2022|
||£|£|
|Deferred income|||
|Deferred income at 1 September 2022|1,623,327|1,282,439|
|Resources deferred during the year|1,687,355|1,623,327|
|Amounts released from previous periods|(1,623,327)|(1,282,439)|
||1,687,355|1,623,327|



Deferred income at the balance sheet date is in relation to monies received for school fees and courses for periods from 1st September 2023. 

Page 37 



| 

| 

## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 19. Creditors: Amounts falling due after more than one year 

|||2023|2022|
|---|---|---|---|
|||£|£|
||Bank loans (see note 20)|1,603,423|1,749,470|
||Finance leases (see note 21)|16,383|136,179|
||Other creditors|325,481|281,178|
|||1,945,287|2,166,827|
|20.|Loans|||
||An analysis of the maturity of loans is given below:|||
|||2023|2022|
|||3|a|
||Amounts falling due within one year on demand:|||
||Loans|146,085|146,492|
||Amounts falling between one and two years:|||
||Loans - 1-2 years|110,440|146,492|
||Amounts falling due between two and five years:|||
||Loans - 2-5 years|1,492,983|1,602,978|
||Amounts falling due in more than five years:|||
||Repayable by instalments:|||
||Loansmore5years|-|-|



The SONIA (previously LIBOR) bank loan is repayable over a period of 14 years on a quarterly basis with interest charged at 2.4% above SONIA. The remaining term of this loan is 1 year and 3 months. In December 2021 on the cessation of LIBOR, the loan transitioned to SONIA interest rates. 

The two Coronavirus Business Interruption Loans received in November 2020 are repayable over a period of 6 years. The first loan is repayable on a monthly basis which started 13 months after drawdown with fixed interest charged at 2.59% for 5 years with the 6th year at 2.34% above the Bank base rate. The second loan can be repaid without penalty at any time within the 6 year period with fixed interest charged at 2.66% for 5 years with the 6th year at 2.34% above the Bank base rate. The remaining term on these loans is 3 years and 3 months. 

Page 38 



| 

## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 21. Leasing agreements 

||Finance|Finance|
|---|---|---|
||Leases 2023|Leases 2022|
||a|£|
|Net obligations repayable:|||
|Within one year|119,796|135,639|
|Between one and five years|16,383|136,179|
|In more than five years|-|-|
||136,179|271,818|



The finance lease relates to a tractor and to the installation and purchase of a Biomass Boiler System. The term of the tractor lease is 5 years ending in April 2027. The term of the Biomass lease is 7 years ending in July 2024. The Biomass Boiler System is accredited by the OFGEM Non Domestic Renewable Heat Incentive Scheme. 

Minimum lease payments under non-cancellable operating leases fall due as follows: 

||2023|2022|
|---|---|---|
||2|£|
|Within one year|74,018|75,806|
|Between one and five years|114,124|64,414|
||188,142|140,220|



## 22. Secured debts 

The following secured debts are included within creditors: 

||2023|2022|
|---|---|---|
||ra|£|
|Coronavirus Business Interruption Loans|1,687,719|1,785,088|
|SONIA Loan|61,789|110,874|
|Finance leases|136,179|271,818|
||1,885,687|2,167,780|



The SONIA loan is secured by way of a legal mortgage and fixed charge over the School's land. 

The Coronavirus Business Interruption Loans are secured by way of a legal charge and debenture over the School land and buildings excluding the ‘third’ field. 

The finance lease contract is secured over the tractor to which it relates. 

The finance lease contract is secured over the Biomass Boiler System to which it relates. 

Page 39 



## BARNARD CASTLE SCHOOL 

(A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 23. Statement of funds 

## Statement of funds - current year 


**----- Start of picture text -----**<br>
|||||||||
|---|---|---|---|---|---|---|---|
|Balance|at|1|Balance|at|
|September|Transfers|Gains/|31|August|
|2022|Income|Expenditure|in/out|(Losses)|2023|
|£|£|£|£|£|£|
|Unrestricted|
|funds|
|Revenue|
|reserve|7,565,763|11,837,069|(11,445,724)|15,496|.|7,972,604|
|Designated|
|Funds|600,000|-|-|-|-|600,000|
|8,165,763|11,837,069|(11,445,724)|15,496|-|8,572,604|
|Endowment|
|funds|
|Foundation|
|endowment|45,875|-|-|-|-|45,875|
|Restricted|
|funds|
|Barnard|Castle|
|School|Prize|&|
|Scholarship|
|Fund|455,446|16,133|(3,231)|-|(3,427)|464,921|
|Hearnshaw|
|Legacy|71,156|-|-|(15,496)|-|55,660|
|Science|Centre|
|Donation|78,612|-|(5,347)|-|-|73,265|
|605,214|16,133|(8,578)|(15,496)|(3,427)|593,846|
|Total|of funds|8,816,852|11,853,202|(11,454,302)|-|(3,427)|9,212,325|

**----- End of picture text -----**<br>


Page 40 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 23. Statement of funds (continued) 

Designated Funds contain legacies received by the School which will be used to invest in capital projects. 

The Foundation Endowment was formed when the School was established. This is considered to be an endowed fund which is held in the form of land. 

The Barnard Castle School Prize & Scholarship Fund is used for funding scholarships and the purchase of prizes. 

The Hearnshaw Legacy was a legacy received for the payment of a scholarship for an A Level science place. 

The Science Centre fund was initially given to invest in science capital projects. However an opportunity arose in a prior year for two projects, the sports hall refurbishment and creation of the music performance space. The donor was approached and gave his permission for the money to be used in this manner. Depreciation relating to these assets is allocated to the fund annually. 

Page 41 



## BARNARD CASTLE SCHOOL 

## (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 23. Statement of funds (continued) 

## Statement of funds - prior year 

|||Balance at|||||Balance at|
|---|---|---|---|---|---|---|---|
||1|September|||Transfers|Gains/|31 August|
|||2021|Income|Expenditure|in/out|(Losses)|2022|
|||£:|£|£|£|£|.|
|Unrestricted||||||||
|funds||||||||
|Revenue||||||||
|reserve||7,201,041|10,559,705|(10,209,611)|14,628|-|7,565,763|
|Designated||||||||
|Funds||600,000|.|.|-|.|600,000|
|||7,801,041|10,559,705|(10,209,611)|14,628|-|8,165,763|
|Endowment||||||||
|funds||||||||
|Foundation||||||||
|endowment||45,875|-|-|.|-|45,875|
|Restricted||||||||
|funds||||||||
|Barnard Castle||||||||
|School Prize &||||||||
|Scholarship||||||||
|Fund||575,215|13,253|(3,824)|-|(129,198)|455,446|
|Hearnshaw||||||||
|Legacy||85,784|-|-|(14,628)|-|71,156|
|Science Centre||||||||
|Donation||83,959|-|(5,347)|-|-|78,612|
|||744,958|13,253|(9,171)|(14,628)|(129,198)|605,214|
|Totaloffunds||8,591,874|10,572,958|(10,218,782)|-|(129,198)|8,816,852|



Page 42 



## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 24. Analysis of net assets between funds 

Analysis of net assets between funds - current year 

||Unrestricted|Restricted|Endowment|Total|
|---|---|---|---|---|
||funds|funds|funds|funds|
||2023|2023|2023|2023|
||£|£|£|£|
|Tangible fixed assets|10,266,301|68,353|45,875|10,380,529|
|Intangible fixed assets|101,473|-|-|101,473|
|Fixed asset investments|-|511,996|-|511,996|
|Current assets|3,311,559|13,497|-|3,325,056|
|Creditors due within one year|(3,161,442)|.|-|(3,161,442)|
|Creditors due in more than one year|(1,945,287)|-|-|(1,945,287)|
|Total|8,572,604|593,846|45,875|9,212,325|
|Analysis of net assets between funds - prioryear|||||
||Unrestricted|Restricted|Endowment|Total|
||funds|funds|funds|funds|
||2022|2022|2022|2022|
||£|£|£|£|
|Tangible fixed assets|9,933,902|73,701|45,875|10,053,478|
|Intangible fixed assets|6,454|-|-|6,454|
|Fixed asset investments|-|510,953|.|510,953|
|Current assets|3,466,525|20,560|.|3,487,085|
|Creditors due within one year|(3,074,291)|-|.|(3,074,291)|
|Creditors due in more than one year|(2,166,827)|-|-|(2,166,827)|
|Total|8,165,763|605,214|45,875|8,816,852|



Page 43 



## BARNARD CASTLE SCHOOL 

(A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 25. Reconciliation of net movement in funds to net cash flow from operating activities 

||||2023|2022|
|---|---|---|---|---|
||||E|£|
||Net income for the year (as per Statement of Financial Activities)||395,473|224,978|
||Adjustments for:||||
||Depreciation charges||766,594|721,911|
||Amortisation charges||4,019|1,503|
||Losses on investments||3,427|129,198|
||Bank interest received||(38,666)|(3,064)|
||Profit on the sale of fixed assets||(506)|(2,546)|
||(Increase)/decrease in stocks||(1,326)|155223|
||Decrease/(increase) in debtors||30,308|(233,007)|
||Increase in creditors||147,704|656,159|
||Dividend income||(16,133)|(13,253)|
||Net cash provided by operating activities||1,290,894|1,497,102|
|26.|Analysis ofcash and cash equivalents||||
||||2023|2022|
||||£|£|
||Cash at bank and in hand||2,479,629|2,612,676|
||Total cash and cash equivalents||2,479,629|2,612,676|
|27.|Analysis ofchanges in net debt||||
|||At 1|||
|||September||At 31 August|
|||2022|Cash flows|2023|
|||P|£|£|
||Cash at bank and in hand|2,612,676|(133,047)|2,479,629|
||Debtdue within 1 year|(146,492)|407|(146,085)|
||Debt due after 1 year|(1,749,470)|146,047|(1,603,423)|
||Finance leases|(271,818)|135,639|(136,179)|
|||444,896|149,046|593,942|



Page 44 



## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 28. Pension commitments 

The Charity's employees belong to two principal pension schemes: 

The Teachers' Pension Scheme England and Wales (TPS) for academic and related staff. 

The Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Durham County Council. Both are multi-employer defined benefit schemes. The Charity exited the LGPS scheme on 10 March 2023. Subsequent contributions are made to a defined contribution scheme on behalf of its employees, the cost of these contributions being charged to the Charity’s Statement of Financial Activities. 

## Introduction 

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations 2014. Membership is automatic for teachers in schools. All teachers have the option to optout of the TPS following enrolment. 

The TPS is an unfunded scheme to which both the member and employer make contributions, as a percentage of salary these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. 

## Valuation of the Teachers' Pension Scheme 

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 26 October 2023. The key elements of the valuation are: 

- e Employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy), to be effective from 1 April 2024, an increase of 5% on the rate previously applied. 

- e There are 2.105m scheme members, 31% of which are male and 69% female. 

- e Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262m and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222.2m, giving a notional past service deficit of £39.8m. 

The employer's pension costs paid to the TPS in the year amounted to £863,526 (2022: £854,263). 

A copy of the valuation report and supporting documentation is on the Teachers' Pension website (https://www.teacherspensions.co.uk/news/employers/2023/10/valuation-result.aspx). 

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The Charity has accounted for its contributions to the scheme as if it were a defined contribution scheme. The Charity has set out above the information available on the scheme. 

## Local Government Pension Scheme 

The LGPS is a funded defined benefit pension scheme, with assets held in separate governmentadministered funds. The total employer's contributions for the year ended 31 August 2023 totalled £89,357 (2022: £195,052), these being up to the point the Charity exited the scheme on 10 March 2023. 

Page 45 



## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 28. Pension commitments (continued) 

At the time of exit on 10 March 2023 and in relation to previous years, the Governors are of the view that the Charity should not recognise a pension scheme asset as it predetermines the reduction in future pension contributions and commitments. The notes included in these accounts show the defined benefit obligation together with the fair value of the scheme assets which shows there are excess assets over obligations. 

At the date of the exit from the scheme on 10 March 2023 the company acting for the Administering Authority for the LGPS has confirmed that the fair value of the scheme liabilities amounted to £7.15m, against the fair value of the scheme assets of £8.83m. Whilst it has been confirmed that there is not a deficit on the scheme it is not possible to establish whether (at the date of the approval of the financial statements) any credit will be given to the Charity in due course. 

Principal actuarial assumptions at the previous Balance Sheet date (expressed as weighted averages): 

||At 31 August|
|---|---|
||2022|
||%|
|Discount rate|4.2|
|Future salary increases|3.9|
|Future pension increases|2.9|
|CPI inflation|2.9|
|Pensionaccountsrevaluationrate|2.9|



||At 31 August|
|---|---|
||2022|
||Years|
|Mortality rates (in years)||
|- for a male aged 65 now|22.1|
|- at 65 for a male aged 45 now|23.2|
|- for a female aged 65 now|24.2|
|-at65forafemaleaged45now|25.7|



Page 46 



## BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 28. Pension commitments (continued) 

The Charity's share of the assets in the scheme was: 

||At 31 August|
|---|---|
||2022|
||£|
|Equities|5,020,000|
|Property|770,000|
|Government bonds|1,040,000|
|Corporate bonds|400,000|
|Cash|130,000|
|Other|490,000|
|Multi Asset Credit|1,330,000|
|Totalfairvalueofassets|9,180,000|



## Total fair value of assets 

The actual return on scheme assets was EN/A (2022 - £1,000,000). 

The amounts recognised in the Statement of Financial Activities are as follows: 

||2023|2022|
|---|---|---|
||£|£|
|Current service cost|89,357|160,000|
|Interest income|(132,000)|(170,000)|
|Interest cost|132,000|170,000|
|TotalamountrecognisedintheStatementofFinancialActivities|89,357|160,000|



Movements in the present value of the defined benefit obligation in the previous period when the Charity was within the LGPS were as follows: 

||2022|
|---|---|
||£|
|Opening defined benefit obligation|9,920,000|
|Interest cost|170,000|
|Contributions byscheme participants|20,000|
|Actuarial gains|(3,510,000)|
|Benefits paid|(270,000)|
|Current service cost|140,000|
|Closingdefinedbenefitobligation|6,470,000|



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BARNARD CASTLE SCHOOL (A Company Limited by Guarantee) 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 

## 28. Pension commitments (continued) 

Movements in the fair value of the Charity's share of scheme assets obligation in the previous period when the Charity was within the LGPS were as follows: 


**----- Start of picture text -----**<br>
|||||||
|---|---|---|---|---|---|
|2022|
|£|
|Opening|fair|value|of scheme|assets|9,920,000|
|Expected|return|on|assets|170,000|
|Actuarial|gains/(losses)|(3,510,000)|
|Contributions|by|employer|140,000|
|Contributions|by|scheme|participants|20,000|
|Benefits|paid|(270,000)|
|Closing|fair value|of scheme|assets|6,470,000|

**----- End of picture text -----**<br>


## 29. Related party transactions 

During the year Governors made donations of £1,840 towards school activities, and £100 was paid to Governors as well wishes gifts. 

P D A Mothersill is a Trustee of The Bowes Museum. During the year purchases of £742 (2022: £85) were made for Museum visits and room hire. Balance outstanding in trade creditors at year end was £Nil (2022: ENil). 

N P Hodges is a Director of The Witham Hall Ltd. During the year purchases of £884 (2022: £422) were made for workshops. Balance outstanding in trade creditors at year end was ENil (2022: £Nil). 

## 30. Company limited by guarantee 

The School is a company limited by guarantee. The members of the School are the Governors named on page 1. In the event of the School being wound up, the liability in respect of the guarantee is limited to £1 per member of the School. 

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