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2021-07-31-accounts

ST BEES SCHOOL

(A company limited by guarantee)

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

Registered charity number: 1129534

Registered company number: 06595861

robinson+co

CHARTERED ACCOUNTANTS

ST BEES SCHOOL

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

CONTENTS

Page Page
Company Information 1 - 2
Directors' Report 3 - 10
Independent Auditor's Report 11 - 13
Consolidated Statement of Financial Activities 14
Group and Company Balance Sheets 15
Consolidated Cash Flow Statement 16
Notes 17 - 38

ST BEES SCHOOL

COMPANY INFORMATION

FOR THE YEAR ENDED 31 JULY 2021

Charity number: 1129534 Company number: 06595861

Directors:

The directors of the company are also Governors of the School and trustees for the purposes of Charity law.

Mrs S J Calvin Mr M D George (Chairman) Mr T Kelly Mr R F Lacey Mr P G Lever Mr A D Lord Mr M N Roberts Dr A M Simper

Officers:

Company Secretary: Mr T Kelly

The Clerk to the Governors: Mr T Kelly

The organisational management is carried out by the trustees themselves, whilst the day to day operations are undertaken by a small team of staff being supported by nominated local trustees.

Page 1

ST BEES SCHOOL COMPANY INFORMATION (continued)

FOR THE YEAR ENDED 31 JULY 2021

Principal Address and Wood Lane
Registered Office: St Bees School
ST BEES
CA27 0DS
Advisers
Bankers: NatWest Bank plc
71 Lowther Street
WHITEHAVEN
CA28 7AG
Solicitors: Nabarro LLP
1 The Avenue
Spinningfields
MANCHESTER
M3 3AP
Auditors: robinson+co
Chartered Accountants
72 Lowther Street
WHITEHAVEN
CA28 7AH
Insurance Brokers: Marsh Limited
Capital House
1-5 Perrymount Road
Haywards Heath
West Sussex
RH16 3SY

Page 2

ST BEES SCHOOL

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 JULY 2021

The Directors of St Bees School Trust present their annual report for the year ended 31 July 2021, together with the audited accounts for the year, and confirm that they comply with the requirements of the Companies Act 2006 and the Charities Act 2011.

RE-OPENING OF THE SCHOOL

Since reopening in September 2018 the School Trust and Full Circle Education Group have established a strong relationship and understanding, working in tandem to bring St Bees School back to life. The initial operating structure of a Joint Venture Company was superseded by an operating agreement in 2019 when Full circle took full control of the School operation and education leaving the Trust to focus on the management of its Estate and commercial business interests. This decision was deemed to be in the best interest of the school's future development.

REFERENCE AND ADMINISTRATIVE INFORMATION

St Bees School was founded in 1583. The charitable company was formed on 19 May 2008 and is registered with the Charity Commission as charity number 1129534. The words 'Charity', 'Company', 'Charitable Company', 'Charitable Trust', 'Trust' and 'School' are used interchangeably to refer to St Bees School. The Trustees are listed on page 1. The registered office address of the Charity and the particulars of the Charity's advisers are given on page 2.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Whilst the School was founded in 1583, the charitable company is governed by its Memorandum and Articles of Association as adopted on 19 May 2008 and altered by Special Resolutions dated 1 August 2009 and 15 January 2016.

Governing Body

The directors of the Company are also trustees for the purposes of Charity law.

Composition of Governing Body post 15 January 2016

The number of Governors shall be not less than 6 and not more than 12 competent persons, being any of 4 Governors appointed by the Old St Beghians' Club as set out in article 8.2, 4 being appointed from the local community as set out in article 8.3 and not more than 4 co-opted Governors appointed by the Board of Governors.

Recruitment and Training of Trustees

Attention is paid to ensure that the Board of Trustees maintains a balance of skills and diversity in order to function effectively.

Organisational Management

The organisational management of the Trust is carried out by the Trustees themselves, whilst day to day commercial activities are undertaken by a small administrative team based at the Trust’s Business Management Centre.

The Trustees comprise the key management personnel of the organisation. All trustees give of their time freely and no trustee remuneration was paid in the year.

Page 3

ST BEES SCHOOL

DIRECTORS' REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

Group Structure and Relationships

In May 2019 Full Circle Education Group assumed full responsibility for the operation of the St Bees School Management Company Limited. The Management Company being responsible for the majority of the onsite facilities. Full Circle operate the School under an Agreement with the Charitable Trust. The Agreement is retractable by the charity if the agreed educational and operational objectives are not achieved. Annual review procedures are in place to enable the Charity to monitor the performance of Full Circle in the role of school operator.

The Charity has a wholly owned subsidiary, St Bees School Enterprises Limited (company number 03422777) which was incorporated in August 1997. This is the commercial arm of the School and manages the Whitelaw Management Centre.

The Directors of the St Bees Enterprises Limited have continued to operate the Business Management Centre profitably during 2020/21 despite revenues again being significantly affected by the COVID-19 pandemic.

St Bees School acts as trustee of two linked charities, St Bees School Trust and Bursary Fund. Although part of the School's permanent endowments are held by the company in trust for the charities, following the Charity Commission's order dated 10 July 2015 these endowments have been spent and replaced by appropriating expendable property as permanent endowment in their place.

The Old St Beghian Guarantee Trust Fund is closely linked with the St Beghian Society, the alumni organisation for the School, and provides financial support to the Charitable Trust. The financial assistance provided via the Old St Beghian Guarantee Trust Fund includes amounts loaned to the School in the sum of £179,024 as at 31 July 2021 (2020: £179,024). The management of the society is vested in a Committee of Alumni.

Risk management

The Directors examine the major risks that the Charity faces on an ongoing basis to control and mitigate potential impacts.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Objects

The objects of the charity are to advance the education of boys and girls by the provision of a day and/or boarding school in or near St Bees or elsewhere in Cumbria and by ancillary or incidental educational activities and other associated activities for the benefit of the community.

Strategies to Achieve the Objectives

Mission statement

The School was founded in 1583 by the then Archbishop of Canterbury, Edmund Grindal. The trustees' goal is to return an educational institution onto the St Bees campus in alignment with Edmund Grindal's principles. Our Mission is:

To re-establish St Bees School as a vibrant and sustainable centre for the outstanding education and all-round development of young people in accordance with Archbishop Grindal's legacy'.

Page 4

ST BEES SCHOOL

DIRECTORS' REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES (continued)

Strategies to Achieve the Objectives (continued)

Objectives

Progress

The financial year 2020/21 saw many challenges. The global pandemic impacted on the running of the school and the marketing task of building pupil numbers. The viability of the school rests in increasing pupil numbers. A minimum 150 pupils offering a sustainable operational level.

The sooner this number is achieved the more secure the future of the school will become.

Full Circle remained committed to the school development investing in both teaching and infrastructure projects despite financial pressure on the international educational markets caused by the pandemic.

Public Benefit

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities, and how these planned activities will contribute to the aims and objectives they have set. In particular, the trustees have given careful consideration to the supplementary public benefit guidance on advancing education and on feecharging.

Page 5

ST BEES SCHOOL

DIRECTORS' REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

STRATEGIC REPORT

The Strategic Report, as required by the Companies Act 2006, is included within this Directors' Report and comprises the sections on Policies through to Future Plans.

Policies

As part of the School reopening the following polices will be developed:-

REVIEW OF ACTIVITIES AND ACHIEVEMENTS

Trust Commercial Activity

The Business Management Centre saw a significant reduction in income flows in the year as a direct consequence of the pandemic. Available government financial assistance provided much needed support.

The Trust continued to investigate commercial development options to support the school but mindful of the impact that these decisions might have on the locality.

The challenge is significant with the principle projects requiring planning consents which have proved hard to secure in the short term.

Negotiations with West Cumberland Mining have continued with regard to mining rights, owned by the Trust, however a government enquiry has now delayed progress.

Partnership with Full Circle

The Trust's partnership with Full Circle remained strong despite the commercial headwinds. Full Circle remain committed to developing their international educational offering which is to the advantage of St Bees School and the Trust.

Looking forward

The Trust continue to carefully balance their commercial strategies investing financial resources to enhance and broaden the educational offering of the school, ensuring at the same time that the style and ethos of the school are retained but complementary to current private school standards and parent expectations.

Page 6

ST BEES SCHOOL

DIRECTORS' REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

As explained in note 1.1 to the accounts, the Directors believe that, whilst there are material uncertainties related to events or conditions that may cast significant doubt upon the company's ability to continue to adopt the going concern basis of accounting in the future, the going concern presumption is nevertheless valid and they have not departed from this basis.

Although the School has been re-opened from September 2018, the material uncertainties relate to the viability, both financial and non-financial, of the re-establishing of the School on the St Bees campus.

The basis of preparation continues to include, where appropriate, the writing down of the company's assets to net realisable value. Provision has also been made for any onerous contractual commitments at the balance sheet date. The financial statements do not include any provision for the future costs of terminating any part of the business of the company except to the extent that such were committed at the balance sheet date.

The net consolidated income for the year amounted to £163,436 (2020: £191,476). Income decreased by 15% from last year. Total consolidated expenditure, excluding exceptional items, decreased by 1% from last year.

The Trust reported an operating deficit, excluding exceptional items, property depreciation, and covenant from subsidiary, on the General Fund of £61,578 for the year ended 31 July 2021, against an operating deficit of £43,522 for the year ended 31 July 2020. Profits of £19,394 (2020: £22,614) were transferred from the subsidiary company, St Bees Enterprises Limited, via deed of covenant.

During the year the Trust recognised donations amounting to £6,513 (2020: £7,425).

The Trust's freehold land and buildings were revalued at £5,057,500 on 31 July 2021 by the directors. The basis of valuation used was market value. The directors considered that this figure was an accurate valuation of the properties as at 31 July 2021. As a result there was a surplus on revaluation for the year ended 31 July 2021 of £120,000 (2020: deficit of £168,500).

At 31 July 2020 provision in the sum of £1,498,667 had been made for the onerous contractual commitment for rent relating to both arrears and the unexpired term of the lease with the Old St Beghians Guarantee Trust Fund, together with a liability in respect of re-instatement works in connection with the terms of the lease, having given due consideration to professional dilapidation survey reports and the subsequent deterioration of the properties.

In view of ongoing negotiations with the Old St Beghians Guarantee Trust Fund during year ended 31 July 2021, the directors considered it prudent to reclassify the indebtedness as a current liability at the balance sheet date. The directors consider a liability of £1,600,000 as being appropriate, consisting of £408,250 in respect of unpaid rental, £1,100,000 in respect of dilapidations and capital re-instatement, and £91,750 in respect of consequential costs. This resulted in an exceptional cost of £101,333 in the year (see note 8).

The trading subsidiary ran the Business Management Centre throughout the year, albeit with the COVID-19 pandemic again having an adverse effect.

The profit for St Bees Enterprises Limited for the year ended 31 July 2021 was £18,872 (2020: profit of £32,977), prior to calculation of profits to be covenanted to the Trust of £19,394 (2020: £22,614).

Page 7

ST BEES SCHOOL

DIRECTORS' REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

FINANCIAL REVIEW AND RESULTS FOR THE YEAR (continued)

The net movement in funds, as shown by the consolidated statement of financial activities, for the year ended 31 July 2020 was a surplus of £1,640 after allowing for a gain on revaluation of fixed assets of £120,000 and exceptional costs of £101,333 (2020: Deficit of £235,745 after allowing for a loss on revaluation of fixed assets of £168,500 and net exceptional costs of £76,762).

Reserves

Note 22 to the accounts shows the assets and liabilities attributable to the various funds by type. Notes 23 and 24 describe the various funds of the Charity and summarise the year's movements on each fund. Group unrestricted funds amounted to £1,371,756 (2020: £1,395,796) however there were no free reserves available in either year.

The School's general fund showed a deficit of £2,381,504 after net exceptional costs of £76,762 (2020: Deficit of £2,236,987 after net exceptional costs of £76,762).

The Trust's unrestricted reserves are primarily invested in tangible fixed assets which are used for its direct charitable activities. Current policy following the closure of the School in 2015 is to preserve funds as far as possible whilst alternative future possibilities are explored. This includes the maintenance of the existing assets and infrastructure and generation of income needed to sustain the necessary transitional activities.

The Trustees are taking steps to reduce the deficit on general funds in line with best practice.

Page 8

ST BEES SCHOOL

DIRECTORS' REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

Investment Policy and Objectives

Investment powers are governed by the Memorandum and Articles of Association. Investment decisions are made by the trustees with the assistance of professional investment advisers. The investment portfolio is no longer active and therefore the investment advisers have ceased in making monthly reports to the trustees and holding meetings to discuss the investment policy and portfolio performance. Consequently no investment performance is reported in the year.

Previously, investments were held to create income and capital growth pending utilisation, whilst preserving the value of endowment funds.

PRINCIPAL RISKS AND UNCERTAINTIES

As stated on page 4, the trustees examine the major risks that the charity faces each financial year. These are summarised as follows:

Financial risks and uncertainties

These risks and uncertainties include potential increases in costs, major fire/disaster, cash flow and loss of charitable status.

Personnel risks and uncertainties

These include loss and recruitment of key personnel and compliance with employment legislation.

Administrative risks and uncertainties

Thi risk has been identified as security of data held on IT systems.

Safety risks and uncertainties

Risks and uncertainties arise from safeguarding of staff and the public and compliance with health and safety and fire regulations.

Governance risks and uncertainties

These include insuring potential liability claims and the impact of inadequate insurance, and discharging statutory responsibilities.

Other risks and uncertainties

The principal other risk is from a loss of reputation. Further risks include unauthorised site access and dilapidation to buildings and facilities.

The Charity has developed systems to monitor and control the above risks, where possible, to mitigate any impact that they may have on it in the future.

FUTURE PLANS

The Trust’s main aim remains the development of the School facilities and enhancing the educational offering under the management of Full Circle. Ultimately success rests in increasing pupil numbers to a level at which the the school is financially viable on a long term basis.

With pupil numbers projected to rise above 100 for the 22/23 academic year the project of reopening St Bees school which commenced in 2018 is gaining momentum.

DIRECTORS

The Directors who served during the year are set out on page 1.

Page 9

ST BEES SCHOOL DIRECtORS' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021 STATEMENT OF DISCLOSURE TO AUDITOR In $0 far as th¢ Directors are awaF¢.' there is no relevant audit iDfornBtion of which the CoMpa￿S auditi￿ are unawdre; and they have taken all stqis that ought to have takal as dIr￿orS to make the￿￿elVeS aware of any relevant autht Inform￿10n aThl to &4tablish th&t the C(Xnpan￿S auditors aTe aware of that iDfonrJatio ACCOUNTING AND REPORTING RESPONSIBILrrtES The Charities Act 2011 and the Cw'es Act 2￿6 rwire the directors of the clwitable company and group to prepare financÈal stateTh￿nts for each financial year which give a true and fair view of its financial activities during the ycar and its financial position ai thc of the year. In preparing th¢ financial statements the Directors arc rryuireAt to.. seleet suitable accounting poliexes and apply them COnSiS*nity" . make judgenws and &%timat&s that are reasonable and pnthit. follow applicable accounting standar¢ls and Charitie& SORP. disclosing and explainin8 ony departures in th¢ financial stat¢mettts" and prepar¢ thc financial statetM)ts oll the going cotKern basis it is inappri)priafr to presume that the group will ¢OMillue in opualion. The Directors are reSponsi￿1C for keeping proper aCcountll￿ r￿Or&S which are sucb as to th"sclose, with reasonable accuracy. the financial p&sition ofthe cO￿￿￿Y at any tim4 and to enable them to ensure that the rll]ancial slatements comply with th¢ CoTnpanies A¢t 2¢y)6. They ar¢ also responsible for safegLwding the assets of th¢ Company and eLsUr1￿ their proper application ID acconlancc with charity law. atMI hence for taking reasonable Stq￿ for thc prcyention and thtection of error, fraud and other irre8uiar&ties. In approving the Directors, RqJ(rt the trusteas arc also approving the Strat¢gic Rqjort in their capacity as company directors. Approved by the Board of DI[￿tOrS ￿ 12 April 2022 and SI￿￿1 on its behalf by: ADLord Director

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS

OF ST BEES SCHOOL

FOR THE YEAR ENDED 31 JULY 2021

Opinion

We have audited the group and parent charitable company financial statements (the 'financial statements') of St Bees School for the year ended 31 July 2021, which comprise the consolidated statement of financial activities (including income and expenditure account), the consolidated and charitable company balance sheets, consolidated cash flow statement 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. These financial statements have been prepared under the accounting policies set out therein. As described in note 1.1, they have been prepared on a going concern basis.

In our opinion:

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 charity 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:

Emphasis of matter - material uncertainty relating to going concern

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 1.1 to the financial statements concerning the company's ability to continue as a going concern. The conditions mentioned in note 1.1 indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. The financial statements do not include any adjustments that would result from a failure to continue as a going concern. Details of the circumstances relating to this emphasis of matter are described in note 1.1 to the financial statements. Our opinion is not qualified in this respect.

Page 11

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS

OF ST BEES SCHOOL (continued)

FOR THE YEAR ENDED 31 JULY 2021

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the Directors' responsibilities statement on page 10, the trustees (who are also the directors of St Bees School for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 12

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST BEES SCHOOL {continuLYJ) FOR THE YEAR ENDED 31 JULY 2021 Auditor's respoTh8ibili¢ies for the ludit of the flngnciai statements Our objectives are lo obtsin reasonable assurance abo￿ wFth the fu)an¢ial stst¢maits as a ￿1¢ are free from matcrial misstate￿KnL wlth due lo fraud or ffror, and to issue an auditor's report that I￿ludeS ( opinithL Reas(￿ble asSura￿t is a lll.gb level of a&wrdllffj but is wt a gi]arath that an audit conducted in accordance with ISAS IUK) w511 alwdy5 ddrzt a Mat￿la1 Misstate￿￿1 it ¢xists. Misstatements can aTise from fraud or error and are considered matctial if, i￿"th￿IlY or in the aggregate, they could reasonabty be expected to influence the ttonomic (kni$1￿￿ of ustts taken on t￿ basis of these financial statemettts. A further d&8criptt(m of our rwon5ibilitiC5 for audit of the financial stateThtrart5 15 1(uted on the Financial Reporting Council's website at www.frc.org.uklaudiiorsrqM)nsibditi¢s. This description forn￿ part of our auditor's report. Use of our report Thi8 r¢port is made sokly to the cbaTitabl¢ ¢(ryan￿8 memkn. as a b(￿. ID a(xx)rdan¢¢ with Chapter 3 of Part 16 of the Companies Act 2￿6. Our audit work has been Unde￿￿1 so that we Might stat¢ to the charitable COMpan￿S memkn those n￿tter$ we are required to state to them in an auditor'5 report and for no other purEx>se. To the fidlest extent pern)itteJJ by law, we do not ac• or assume rasponsibility to anyone oth¢r than the charitsblc company alld th¢ cjwitable conwatys tncllkns as a imxly. for our audii worK for this r¢port. or for the opinions we have fiKmal. Jason Spires Bsc FCA DChA (Senwr Ststutory Alldhor) For and on behalf of robi￿￿01￿ Statutory Auditors and Chartered Aeeoknlrfants 72 Lowther street Whitebaven CA28 7AH Datv. 12 April 2022 12

ST BEES SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 JULY 2021

FOR THE YEAR ENDED 31 JULY 2021 FOR THE YEAR ENDED 31 JULY 2021 FOR THE YEAR ENDED 31 JULY 2021
Unrestricted Funds
Notes
Trust
Other
£
£
INCOME
Donations and legacies
Donations
3
6,513
-
Other trading activities
Trading income
4
-
84,459
Rent receivable
46,078
-
Income from Investments
Bank and other interest
-
-
Income from Charitable Activities
Charitable activity income
5
706
-
Total income and endowments
53,297
84,459
EXPENDITURE
Expenditure on Raising funds
Trading expenditure
-
64,922
Interest
6
17,615
666
17,615
65,588
Expenditure on Charitable activities
Schools and grantmaking:
Continuing activities
9
97,260
-
Exceptional items
8
101,333
-
198,593
-
Total expenditure
7-9
216,208
65,588
Net income/(expenditure)
before transfers
(162,911)
18,871
Transfers between funds
23-24
19,394
(19,394)
(143,517)
(523)
NET INCOME/(EXPENDITURE)
(144,040)
Gains/(losses) on revaluation
of fixed assets
11
120,000
NET MOVEMENT IN FUNDS
(24,040)
Balances brought forward
at 1 August 2020
1,395,796
FUND BALANCES
at 31 July 2021
1,371,756		 Restricted
Funds
£
-
-
-
-
-		 Endowed
Funds
£
-
-
-
-
25,680		 Total
2021
£
6,513
84,459
46,078
-
26,386		 Total
2020
£
7,425
116,673
45,818
208
21,352
53,297 84,459 - 25,680 163,436 191,476
-
17,615		 64,922
666		 -
-		 -
-		 64,922
18,281		 83,413
17,377
17,615 65,588 - - 83,203 100,790
97,260
101,333		 -
-		 -
-		 -
-		 97,260
101,333		 81,169
76,762
198,593 - - - 198,593 157,931
216,208 65,588 - - 281,796 258,721
18,871
(19,394)		 -
-		 25,680
-		 (118,360)
-		 (67,245)
-
(143,517) (523) -
-		 25,680
-		 (118,360)
120,000		 (67,245)
(168,500)
(144,040)
120,000
(24,040)
1,395,796		 -
-		 25,680
1,390,891		 1,640
2,786,687		 (235,745)
3,022,432
1,371,756 - 1,416,571 2,788,327 2,786,687

All amounts derive from continuing activities, unless otherwise stated.

All gains and losses recognised in the the year are included in the Statement of Financial Activities.

The notes on pages 17 to 38 form part of these accounts

Page 14

ST BEES SCHOOL BALANCE SHEET AS AT 31 JULY 2021 Conso]id*ted 2021 3020 Trnst 2021 202 F￿ED ASSETS School buildings and equipment Investsnents li 12 S077J75 4.959.059 5.059,1192 4,939.441 &077,575 4,959,059 5,059,1)94 4,939,443 CURRENT ASSETS Stoek9 DebtOTS Cash at bank and in Iwid 13 14 200 148.785 33.632 200 233.506 31.216 21y 151.548 17,108 Joo 237. 787 22.429 182,617 264.922 168,916 260.410 CREDITORS: due witbin one year 15 (L451,11)7) IPJ2.773) (2,463,71H) (939,048) ET CURRENf ASSETSI(LIABILITIES) {226V90) f047,851) (2294,788) (678.632) TOTAL ASSETS LESS CURRENT LIABILITIES 2J09,085 4.311.208 2,764J06 4.200.8JJ CRKDITORS: due after more than one year 16 (20.758) 125,854) PROVISIONS FOR LIABILITIES 17 (1.498.667) (1,498,667) TOTAL NET ASSETS 2,788J27 2.786,687 2,764J06 2.762,144 ENDOWED FUNDS 23 .416￿71 1.390,891 1,416571 1.390,891 RESTRICTED FUNDS UI¥RESTRICTED FUNDS Unrestricted income fiu)ds Revaluatiotx reserve (1.444,715) 16,471 (1.300,075) 2.096,471 (1,46&736) 2,81fj471 (J,525.218) 2,690.471 24 l J71,756 1.395,796 lJ47,735 J,37J.253 TOTAL FUNDS 2,788J27 2.780.687 2,764J06 2, 762.144 Th¢ financial sthtements on pages 14- 38 were approved by th¢ Directors on 12 April 2022 and signed 00 their behalf by. ADLord DlrettOT Registered number 06595861 EDgl¥Dd and Wales The notes on pages 17 to 38 fonn part of theye ae¢oumts. PaoÈ 14

ST BEES SCHOOL

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 JULY 2021

2021
Notes
£
Cash (used in)/provided by operating activities
25
(20,382)
Cash flows from investing activities
Dividends and interest from investments
-
Purchase of property, plant and equipment
(2,045)
Purchase of investments
-
Cash (used in)/provided by investing activities
(2,045)
Cash flows from financing activities
Increase in borrowing
-
Repayment of borrowing
(837)
Receipt of endowment
25,680
Cash provided by/(used in) financing activities
24,843
Increase/(decrease) in cash and
cash equivalents in the year
2 416
,
Cash and cash equivalents at the
beginning of the year
31,216
Cash and cash equivalents at the
end of the year
33,632		 2020
£
(45,821)
208
-
-
208
26,691
(1,206)
20,062
45,547
(66)
31,282
31,216

The notes on pages 17 to 38 form part of these accounts.

Page 16

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are summarised below.

1.1 Basis of accounting

The financial statements are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

The Directors believe that, whilst there are material uncertainties related to events or conditions that may cast significant doubt upon the company's ability to continue to adopt the going concern basis of accounting in the future, the going concern presumption is nevertheless valid and they have not departed from this basis.

Although the School has been re-opened from September 2018, the material uncertainties relate to the viability, both financial and non-financial, of the re-establishing of the School on the St Bees campus.

The basis of preparation continues to include, where appropriate, the writing down of the company's assets to net realisable value. Provision has also been made for any onerous contractual commitments at the balance sheet date. The financial statements do not include any provision for the future costs of terminating any part of the business of the company except to the extent that such were committed at the balance sheet date.

The charity's presentational currency is UK sterling, rounded to the nearest £1.

The charity constitutes a public benefit entity as defined by FRS 102.

1.2

Group accounts

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary, St Bees Enterprises Limited, on a line by line basis. A separate statement of financial activities for the charitable company itself is not presented because it has taken advantage of the exemptions afforded by paragraph 408 of the Companies Act 2006.

1.3

Donations and fund accounting

Donations receivable for the general purposes of the Charity are credited to unrestricted funds. Donations for purposes restricted by the wishes of the donor are taken to restricted funds where these wishes are legally binding on the trustees, except that 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.

Page 17

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies (continued)

1.4 Income

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 following specific policies are applied to particular categories of income:

Amounts receivable for services and use of premises are accounted for in the period in which the service is provided.

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

Income from investments is included in the year in which it is receivable.

1.5 Expenditure

Expenditure is accounted for on an accruals basis. Overhead and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the period, either by reference to staff time or space occupied, as appropriate. Expenditure is stated inclusive of irrecoverable or nonattributable VAT, with any partially recoverable element being credited to the Statement of Financial Activities separately.

Costs of raising funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes.

Expenditure on charitable activities comprises those costs incurred in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and

Governance costs comprise the costs of running the charity, including strategic planning for its future development, also internal and external audit, any legal advice for the trustees, and all the costs of complying with constitutional and statutory requirements, such as the cost of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability. These costs are included in support costs within expenditure on charitable activities.

1.6 Leases and hire purchase contracts

Tangible fixed assets acquired under finance leases and hire purchase contracts are capitalised at the estimated fair value at the date of inception of each lease or contract. The total finance charges are allocated over the period of the lease in such a way as to give a reasonably constant charge on the outstanding liability.

Rentals payable under operating leases are charged to the SOFA on a straight line basis over the lease term.

Page 18

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies (continued)

1.7 Pension schemes

Contributions are made in respect of defined contribution pension schemes of certain employees.

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

1.8 Tangible fixed assets and depreciation

The School's freehold land and buildings are included in the accounts at valuation.

Freehold land is not depreciated. Freehold buildings are depreciated at 2% on a reducing balance basis. As the School's properties were revalued as at 31 July 2020, no depreciation has been provided for on these during the year.

Short leasehold buildings improvements are depreciated on a straight line basis over the remaining period of the lease.

Assets costing less than £2,000 are not capitalised.

Other fixed assets are included at cost and depreciation is calculated to write off their cost or valuation less any residual value on a straight line basis over their estimated useful lives as follows:

Computer Equipment - over 3 years Other Equipment - over 10 years

An impairment review was carried out on fixed assets and where it was considered that their carrying amount exceeded the higher of their recoverable amount or value in use the assets were written down as necessary.

1.9 Investments

Fixed asset investments are included in the accounts at the mid-market value of each investment as at the balance sheet date. A note is also shown of the cost of each investment at that date. Gains and losses on disposal or revaluation of investments are charged or credited to the SOFA.

Interests in joint ventures are accounted for using the equity method. They are initially recognised at cost. The carrying amount is then adjusted for the post-acquisition change in the Trust's share of net assets in the joint venture entity. The carrying amount of the investment in the joint venture is subsequently adjusted through the SOFA to reflect the Trust's share of the its results.

1.10 Stocks

Stocks are valued at the lower of cost and net realisable value.

1.11 Financial instruments

The company only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at amortised cost.

Page 19

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies (continued)

1.12 Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

2 Statutory information

St Bees School is a private company, limited by guarantee, domiciled in England and Wales, registration number 06595861. The registered office is Wood Lane, St Bees School, St Bees, Cumbria, CA27 0DS. The company is a registered charity, number 1129534.

3 Donations

During the year the Trust received donations amounting to £6,513 (2020: £7,425). All of these donations, for both years, are attributable to unrestricted income funds.

Page 20

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

4
Trading income
Business Management Centre fees
Sundry trading income		 Consolidated
2021
2020
£
£
46,915
99,936
37,545
16,738
84,460
116,674		 Trust
2021
2020
£
£
-
-
-
-
-
-		 Trust
2021
2020
£
£
-
-
-
-
-
-
-

All of the above income is attributable to unrestricted income funds.

The Trust's wholly-owned subsidiary, St Bees Enterprises Limited, initially took over the trading aspects of the charity's activities, including the running of the Business Management Centre and Golf Course, from 1 September 1997. After the closure of the School on 3 July 2015 the subsidiary took over the running of additional activities, including Springfest and Summerfest. From 1 September 2017 all activities, save for the running of the Business Management Centre, were taken over by St Bees School Management Company Limited, the Trust's joint venture company.

Sundry trading income pertains to other income received by the trading subsidiary. During the year ended 31 July 2021 St Bees Enterprises Limited received Government grants totalling £37,545 (2020: £16,738). This amount consists of grants in respect of the Coronavirus Job Retention Scheme of £28,503 (2020: £16,627), Local Authority grants of £8,486 (2020: £nil) and Bounce Back loan interest payable by the Government of £556 (2020: £111).

The trading results of St Bees Enterprises Limited, extracted from its audited accounts, are shown in note 14.

5
Charitable activity income
General funds
VAT reclaimed
Sundry income
Endowment funds
Royalties received		 Consolidated and Trust
2021
2020
£
£
705
954
-
336
705
1,290
25,680
20,062
26,385
21,352		 Consolidated and Trust
2021
2020
£
£
705
954
-
336
705
1,290
25,680
20,062
26,385
21,352
1,290
20,062
21,352

Page 21

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

6 Interest payable 2021 2021 2020
£ £
Loan interest payable to Full Circle Education Limited 17,081 17,080
Other interest 534 -
Total for Charity 17,615 17,080
Loan interest payable by subsidiary to Trust - 185
Bank loan interest payable by subsidiary 666 111
Other interest payable by subsidiary - 1
Total for Group 18,281 17,377
All of the interest payable in year ended 31 July 2021 and year ended 31 July 2020 was attributable to unrestricted
funds.
7 Expenditure Consolidated Trust
2021 2020 2021 2020
£ £ £ £
Charitable Activity expenditure includes:
Exceptional items (note 8) 101,333 76,762 101,333 76,762
Staff costs (note 10) 48,715 45,525 3,393 -
Depreciation of tangible fixed assets (note 11)
owned assets 3,530 3,686 349 709
Auditors' remuneration:
for audit services 3,265 3,350 2,500 2,500
for accountancy and other services 8,647 8,390 3,022 2,446
8 Exceptional expenditure items 2021 2020
£ £
Impairment of tangible fixed assets (note 11) - (337)
Reassessment of rates - 77,099
Other provisions for onerous contractual
commitments (note 17) 101,333 -
Total for Trust and Group 101,333 76,762

A professional rates review was commenced during the year ended 31 July 2020 in conjunction with St Bees School Management Company Limited and was completed after the year end. Rates were reapportioned between the two companies and as a result an additional amount of £77,099 became payable by the Trust for the period to 31 July 2020. This amount is shown as an exceptional item above and has been reserved as a creditor at the balance sheet date.

Page 22

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

9
Analysis of total resources expended
Staff costs
£
Expenditure on Raising funds:
Interest
-
Total for charity
-
Trading costs of the subsidiary
45,322
Interest costs of the subsidiary
-
Total for group
45,322
Expenditure on Charitable activities:
Continuing activities:
Establishment costs
3,393
Administration
-
3,393
Share of net expenditure
in Joint Venture
-
Exceptional items
-
Total for charity and group
3,393
Total expenditure - Group
48,715
Total expenditure - Charity
3,393		 Other
£
17,615		 Depreciation
and impairment
£
-		 Total
2021
£
17,615		 Total
2020
£
17,080
17,615
16,419
666		 -
3,181
-		 17,615
64,922
666		 17,080
83,413
185
34,700 3,181 83,203 100,678
80,451
13,067		 -
349		 83,844
13,416		 64,710
16,459
93,518
-
101,333		 349
-
-		 97,260
-
101,333		 81,169
-
76,762
194,851 349 198,593 157,931
229,551 3,530 281,796 258,609
212,466 349 216,208 175,011

During the year ended 31 July 2021 the total group expenditure of £180,463 was entirely attributable to unrestricted funds. During the year ended 31 July 2020 the total group expenditure of £258,609 was entirely attributable to unrestricted funds.

Page 23

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

FOR THE YEAR ENDED 31 JULY 2021
10
Staff costs
Wages and salaries
Social security costs
Pension costs
The average number of employees in the year was:
Domestic, maintenance and other staff
Administration		 2021
£
47,921
-
794
48,715
Number
2
3
5		 2020
£
45,001
-
524
45,525
Number
2
3
5

The trustees are not remunerated, and no expenses were paid during the year (2020: Expenses totalling £459 were reimbursed to 2 trustees in respect of directly incurred costs).

There were no higher paid employees during the year (2020: None).

Defined contribution pension schemes

P ens on i con r t ib u ti ons are ma d e i n respec t o f th e d e fi ne d con r t ib u ti on pens on sc i h emes o f cer a n t i emp oyees. l Th e pension cost charge represents contributions payable by the group to the funds and amounted to £794 (2020: £555). Contributions amounting to £nil (2020: £nil) are included in creditors at the year end.

Page 24

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

11
Tangible fixed assets
Consolidated
Cost or valuation
1st August 2020
Additions
Disposals
Revaluations
31st July 2021
Depreciation
1st August 2020
Charge for year
Disposals
Revaluations
31st July 2021
Impairment
1st August 2020
Ch
f
arge or year
Disposals
31st July 2021
Net book values
31st July 2021
31st July 2020		 Fixtures
Fittings and
Equipment
£
97,492
2,045
-
-
99,537
75,932
3,530
-
-
79,462
-
-
-
-
20,075
21,560		 Freehold
Land and
Buildings
£
4,937,500
-
-
120,000
5,057,500
-
-
-
-
-
-
-
-
-
5,057,500
4,937,500		 Total
£
5,034,992
2,045
-
120,000
5,157,037
75,932
3,530
-
-
79,462
-
-
-
-
5,077,575
4,959,060

Page 25

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

11 Tangible fixed assets (continued)

Trust
Cost or valuation
1st August 2020
Additions
Disposals
Revaluations
31st July 2021
Depreciation
1st August 2020
Charge for year
Disposals
Revaluations
31st July 2021
Impairment
1st August 2020
Charge for year
Disposals
31st July 2021
Net book values
31st July 2021
31st July 2020		 Fixtures
Fittings and
Equipment
£
35,359
-
-
-
35,359
33,416
349
-
-
33,765
-
-
-
-
1,594
1,943		 Freehold
Land and
Buildings
£
4,937,500
-
-
120,000
5,057,500
-
-
-
-
-
-
-
-
-
5,057,500
4,937,500		 Total
£
4,972,859
-
-
120,000
5,092,859
33,416
349
-
-
33,765
-
-
-
-
5,059,094
4,939,443

Page 26

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

11 Tangible fixed assets (continued)

The Trust's freehold land and buildings were revalued at £5,057,500 on 31 July 2021 by the directors. The basis of valuation used was market value. The directors considered that this figure was an accurate valuation of the properties as at 31 July 2021. As a result there was a surplus on revaluation for the year ended 31 July 2021 of £120,000 (2020: Deficit of £168,500).

It should be noted that the valuation above is based on the Trust's properties being marketed in an orderly way, which the directors believe presents a true and fair view. Should the properties be sold to one individual as a single lot the valuation would be lower.

An impairment review was carried out on fixed assets at the year end and it was concluded that there was no impairment.

Tangible fixed assets included at a valuation would have been included on a historical cost basis at:

Cost
Depreciation
Net book value		 Consolidated and School
2021
2020
£
£
2,426,890
2,426,890
(481,468)
(441,765)
1,945,422
1,985,125		 Consolidated and School
2021
2020
£
£
2,426,890
2,426,890
(481,468)
(441,765)
1,945,422
1,985,125
1,985,125

The figures stated above for cost or valuation include valuations as follows:

At cost
At valuation		 Consolidated
2021
2020
£
£
-
-
5,057,500
4,937,500
5,057,500
4,937,500		 School
2021
2020
£
£
-
-
5,057,500
4,937,500
5,057,500
4,937,500		 School
2021
2020
£
£
-
-
5,057,500
4,937,500
5,057,500
4,937,500
4,937,500

Page 27

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

12
Fixed asset investments
Consolidated market value as above
Share of net assets in joint ventures - valued on equity method
Investment in St Bees School Management Company Ltd - 25% of
net assets.
Group undertakings - valued at fair value
Investment in St Bees Enterprises Ltd - Ordinary £1 shares
Total for Trust
Less
:Eliminated on consolidation
Total for Group		 2021
£
-
2		 2020
£
-
-
2
2
(2)		 2
(2)
- -

Investment in St Bees School Management Company Limited:

In June 2017 a joint venture company, St Bees School Management Company Limited (company number 10812320), was established. This company has taken on the responsibility for re-opening the School and all its operational activity and its support activities. The joint venture is a limited company registered in England and Wales which is wholly owned by Full Circle Education Group and St Bees School Trust. Three directors from each parent company make up the Board of the new company, which is controlled jointly.

Until 31 May 2019 the Trust was responsible for 25% of the investment in the joint venture company, with Full Circle being responsible for 75%. Thereafter Full Circle assumed full responsibility for the operation of St Bees School Management Company Limited.

Investment in St Bees Enterprises Ltd:

The Trust owns 100% of the ordinary shares in St Bees Enterprises Limited, which initially took over the trading aspects of the charity's activities, including the running of the Business Management Centre and the Golf Course, from 1st September, 1997. After the closure of the School on 3 July 2015, the subsidiary took over the running of additional activities, including sports facility lettings, Springfest and Summerfest. From 1 September 2017 all activities, save for the running of the Business Management Centre, were taken over by St Bees School Management Company Limited, the Trust's joint venture company. St Bees Enterprises Ltd, which was incorporated on 20th August 1997, covenants its taxable profits to the Trust. The company registration number is 0342277.

Page 28

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

12 Fixed asset investments (continued)

Investment in St Bees Enterprises Ltd (continued):

The trading results of St Bees Enterprises Limited, extracted from its audited accounts were:-

Turnover
Cost of sales
Gross profit
Administration
Other operating income
Operating (loss)/profit for the year:
Interest received
Interest payable
Net (loss)/profit before taxation
Taxation
Net (loss)/profit after taxation
Covenant - gross
Retained (loss)/profit
The assets and liabilities of St Bees Enterprises Ltd were:
Tangible fixed assets
Current assets
Creditors: amounts falling due within one year
Creditors: amounts falling due after one year
Represented by:
Share capital
Profit and loss account		 2021
£
46,915
(4,968)
41,947
(59,954)
37,545
19,538
-
(666)
18,872
-
18,872
(19,394)
(522)
2021
£
18,482
56,775
75,257
(30,479)
(20,758)
24,020
2
24,018
24,020		 2020
£
99,936
(20,665)
79,271
(62,749)
16,738
33,260
14
(297)
32,977
-
32,977
(22,614)
10,363
2020
£
19,618
59,787
79,405
(29,009)
(25,854)
24,542
2
24,540
24,542

There were no amounts invoiced by the Trust or the subsidiary company to the other party for goods and services provided in either the current or prior year.

Page 29

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

13 Stocks

Stocks
Heating oil Consolidated and Trust
2021
2020
£
£
200
200
200
200
200

14 Debtors

Trade debtors
Loan to joint venture company
Covenanted profits
due from trading company
Loan interest
due from trading company
Other debtors
Prepayments and accrued income		 Consolidated
2021
2020
£
£
27,280
24,586
106,952
196,675
-
-
-
-
2,138
744
12,415
11,501
148,785
233,506		 Trust
2021
2020
£
£
13,625
6,829
106,952
196,675
19,394
22,614
-
485
1,565
511
10,012
10,673
151,548
237,787		 Trust
2021
2020
£
£
13,625
6,829
106,952
196,675
19,394
22,614
-
485
1,565
511
10,012
10,673
151,548
237,787
237,787

The purpose of the loan to the joint venture company is to provide school equipment and stock. There are no formal repayment terms, and the loan is unsecured and interest-free. The Trust withdrew as a joint venturer on 31 May 2019 however the loan remains in place.

Page 30

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

15
Creditors
Amounts falling due
within one year
Bank loan
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Loan - St Bees Enterprises Ltd
Loans - Full Circle Education Group
(unsecured) - see below
Loans - Old St Beghians Guarantee
Trust Fund (unsecured) - see below
Lease liability - Old St Beghians Guarantee
Trust Fund (unsecured) - see note 17		 Consolidated
2021
2020
£
£
5,096
837
11,109
5,596
1,636
292
-
77,099
77,216
72,899
-
-
577,026
577,026
179,024
179,024
1,600,000
-
2,451,107
912,773		 Trust
2021
2020
£
£
-
-
8,975
4,444
-
-
-
77,099
74,997
69,271
23,682
32,184
577,026
577,026
179,024
179,024
1,600,000
-
2,463,704
939,048		 Trust
2021
2020
£
£
-
-
8,975
4,444
-
-
-
77,099
74,997
69,271
23,682
32,184
577,026
577,026
179,024
179,024
1,600,000
-
2,463,704
939,048
939,048

Loans - Full Circle Education Group

Full Circle Education Group is the Trust's co-venturer in St Bees School Management Company Limited, the joint venture company responsible for re-establishing the School . The loans from Full Circle were to assist with the Trust's financial commitments to invest in the joint venture. The loans are unsecured and interest is charged at a commercial rate as detailed in note 6 to the accounts.

Loans - Old St Beghian Guarantee Trust Fund

The Old St Beghian Guarantee Trust Fund (OSBGTF) is part of the alumni organisation for the School. OSBGTF owns a number of properties used by St Bees School for which a rental charge is made. Funds have also been loaned to St Bees School, unsecured and interest free. There is no formal loan agreement in place. Following the announcement in March 2015 that the School would close at the end of Summer Term 2015 the loan was reclassified as falling due within one year and has been reflected as such in the accounts from the 31 July 2014 onwards. The Trust has received a letter of comfort from the OSBGTF stating that it is not, currently, their intention to demand repayment of all or any part of the loan.

Bank loan

The bank loan consists of a Bounce Back loan taken out by St Bees Enterprises Limited in May 2020.

Page 31

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

16
Creditors
Consolidated
Amounts falling due
2021
2020
after more than one year
£
£
Bank loan
20,758
25,854
20,758
25,854
Bank loan
2021
£
This is repayable as follows:
In the next year - see note 15
5,096
In the second to fifth years
20,758
After five years
-
25,854
Bank loan
The bank loan consists of a Bounce Back loan taken out by St Bees Enterprises
17
Provisions for liabilities
At 1 August 2020
Increase in the year
Reclassification as current liability (see note 15)
At 31 July 2021		 School
2021
2020
£
£
-
-
-
-
2020
£
837
21,171
4,683
26,691
Limited in May 2020
Consolidated and Trust
Other onerous
contractual
commitments
Total
£
£
1,498,667
1,498,667
101,333
101,333
(1,600,000)
(1,600,000)
-
-
.		 School
2021
2020
£
£
-
-
-
-
2020
£
837
21,171
4,683
26,691
Limited in May 2020
Consolidated and Trust
Other onerous
contractual
commitments
Total
£
£
1,498,667
1,498,667
101,333
101,333
(1,600,000)
(1,600,000)
-
-
.
-

Other onerous contractual commitments at 31 July 2020 consisted of £1,498,667 in respect of the lease of Lonsdale Terrace and land at Wood Lane from the Old St Beghians Guarantee Trust Fund.

Provision had been made for rent relating to both arrears and the unexpired term of the lease, together with a liability in respect of re-instatement works in connection with the terms of the lease, having given due consideration to professional dilapidation survey reports and the subsequent deterioration of the properties. In view of ongoing negotiations with the Old St Beghians Guarantee Trust Fund during year ended 31 July 2021, the directors considered it prudent to reclassify the indebtedness as a current liability at the balance sheet date. The directors consider a liability of £1,600,000 as being appropriate, consisting of £408,250 in respect of unpaid rental, £1,100,000 in respect of dilapidations and capital re-instatement, and £91,750 in respect of consequential costs. This resulted in an exceptional cost of £101,333 in the year (see note 8).

Page 32

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

18 Commitments

as follows:
Amount payable:
Within 1 year
Between 1 and 5 years
After 5 years		 Land and buildings
2021
2020
£
£
-
69,417
-
92,000
-
204,250
-
365,667
365,667

The operating lease commitments in respect of land and buildings were payable to the Old St Beghians Guarantee Trust Fund, for the use of Lonsdale Terrace and land at Wood Lane. The term of the lease was 25 years from 1 May 2008 and the annual commitment was £23,000. Lease commitments, along with other provisions, have been reclassified as current liabilities - see notes 15 and 17.

(b) At 31 July 2021 the Group and Trust had no capital commitments (2020: £nil).

(c) At 31 July 2021 the Group and Trust had financial commitments of £nil (2020: £nil).

19 Going concern

St Bees School ceased to be operated by the charity on its closure at the end of the Summer Term 2015. Full details regarding the effect on going concern are given in note 1.1 to the accounts.

Page 33

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

20 Taxation

The Trust is a registered charity and is exempt from corporation tax under the provision of Section 478 of the Corporation Tax Act 2010.

St Bees Enterprises Limited is a trading subsidiary of the Trust and is liable to corporation tax on its taxable profits at the applicable rate.

21 Related party tranasctions

At 31 July 2021 the charity owed loans of £179,024 (2020: £179,024) to the Old St Beghian Guarantee Trust Fund, which is closely connected to the St Beghian Society, the alumni organisation for the School. Mr R Calvin, the spouse of Mrs S Calvin, a director of St Bees School, is a trustee of the Old St Beghian Guarantee Trust Fund. Further details regarding the loans are included in note 15 to the accounts.

At 31 July 2021 the charity owed £1,600,000 (2020: £1,498,667 included within provisions) to the Old St Beghian Guarantee Trust Fund. Further details regarding this liability are included in notes 15 and 17 to the accounts.

At 31 July 2021 the charity owed loans of £577,026 (2020: £577,026) to Full Circle Education Group, the Trust's co-venturer in St Bees School Management Company Limited. Additionally, interest of £67,626 (2020: £50,545) has accrued on these loans at the balance sheet date. Further details regarding the loans are included in note 15 to the accounts.

During the year the Trust invoiced its joint venture company, St Bees School Management Company Limited, for goo d s an d serv ces prov i id e d amoun ti ng o t £10 , 852 (2020 : n £ il) . Th ese ems are o it ff se w t ithi n a d m n s ra i i t ti on expenses.

During the year St Bees School Management Company Limited invoiced the Trust for goods and services provided amounting to £4,584 (2020: £nil). These items are included within administration expenses.

Under a deed of covenant dated 25 August 1998 the subsidiary company, St Bees Enterprises Limited, has covenanted to pay the parent charity, St Bees School, an annual sum not exceeding its taxable profits for the accounting year. For the year ended 31 July 2020 this amounted to £19,394 (2020: £22,614).

During the year St Bees Enterprises Limited invoiced St Bees School Management Company Limited for goods and services provided amounting to £120 (2020: £100). These items are included within income.

During the year St Bees School Management Company Limited invoiced St Bees Enterprises Limited for goods and services provided amounting to £nil (2020: £13). These items are included within fixed asset additions or administration expenses as appropriate.

Page 34

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

22 Allocation of the group net assets

Fund balances at 31 July 2021 as represented by:

Endowment funds
Restricted funds
Unrestricted funds
Total for group		 Fixed
Assets
£
1,416,144
-
3,661,431
5,077,575		 Current
Assets
£
427
-
182,190
182,617		 Current
Liabilities
£
-
-
(2,451,107)
(2,451,107)		 Provisions/
Long term
Liabilities
£
-
-
(20,758)
(20,758)		 Total
£
1,416,571
-
1,371,756
2,788,327

Allocation of the group net assets - previous year

Fund balances at 31 July 2020 as represented by:

Endowment funds
Restricted funds
Unrestricted funds
Total for group		 Fixed
Assets
£
1,390,361
-
3,568,699
4,959,060		 Current
Assets
£
530
-
264,391
264,921		 Current
Liabilities
£
-
-
(912,773)
(912,773)		 Provisions/
Long term
Liabilities
£
-
-
(1,524,521)
(1,524,521)		 Total
£
1,390,891
-
1,395,796
2,786,687

Page 35

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

23 Analysis of movements in endowment funds

Permanent Funds:
Capital
Royalties
Capital replacement fund
Group and Trust		 Balance
1 August
2020
£
1,000
695,891
694,000
1,390,891		 Incoming
Resources
£
-
25,680
-
25,680		 Resources
Expended
£
-
-
-
-		 Transfers and
Investment
Gains/
(Losses)
£
-
-
-
-		 Balance
31 July
2021
£
1,000
721,571
694,000
1,416,571

Analysis of movements in endowment funds - previous year

Permanent Funds:
Capital
Royalties
Capital replacement fund
Group and Trust		 Balance
1 August
2019
£
1,000
675,829
694,000
1,370,829		 Incoming
Resources
£
-
20,062
-
20,062		 Resources
Expended
£
-
-
-
-		 Transfers and
Investment
Gains/
(Losses)
£
-
-
-
-		 Balance
31 July
2020
£
1,000
695,891
694,000
1,390,891

The capital fund represents a nominal amount relating to the original endowment of the School land and buildings.

The royalties fund has been created to provide for the loss of the permanent endowment on Birkham's Quarry, a sandstone quarry which was part of the original asset base of the Trust. As the sandstone is quarried, the asset is eroded and the royalties received replace the diminution in value of the asset. The income from royalties arises from land held on permanent endowment and is subsequently utilised on improvements to the Trust's land and buildings. The credit balance on the royalties fund is thus not represented by cash but by tangible fixed assets.

The direction by an order of the Charity Commission dated 10 July 2015 approved the expenditure of a total of £694,000 of endowment funds to expedite the winding down of the School's affairs following closure on 3 July 2015, under the power given in section 105 of the Charities Act 2011. This expenditure is subject to the creation of a Capital replacement fund by appropriating expendable property to the value of £694,000 as permanent endowment in the records of the charity.

Page 36

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

24 Analysis of movements in unrestricted funds

Designated:
Extraordinary repair fund
Property revaluation reserve
Capital fund
Trust general fund
Sub-total - Trust
Reserves - St Bees
Enterprises Limited
Consolidated funds		 Balance
1 August
2020
£
28,000
2,696,471
883,563
(2,236,987)
1,371,047
24,749
1,395,796		 Incoming
Resources
£
-
-
-
53,297
53,297
84,459
137,756		 Resources
Expended
£
-
-
-
(216,208)
(216,208)
(65,588)
(281,796)		 Transfers and
Gains/
(Losses)
£
1,000
120,000
-
18,394
139,394
(19,394)
120,000		 Balance
31 July
2021
£
29,000
2,816,471
883,563
(2,381,504)
1,347,530
24,226
1,371,756

Analysis of movements in unrestricted funds - previous year

Designated:
Extraordinary repair fund
Property revaluation reserve
Capital fund
Trust general fund
Sub-total - Trust
Reserves - St Bees
Enterprises Limited
Consolidated funds		 Balance
1 August
2019
£
27,000
2,946,471
802,063
(2,138,317)
1,637,217
14,386
1,651,603		 Incoming
Resources
£
-
-
-
54,727
54,727
116,687
171,414		 Resources
Expended
£
-
-
-
(175,011)
(175,011)
(83,710)
(258,721)		 Transfers and
Gains/
(Losses)
£
1,000
(250,000)
81,500
21,614
(145,886)
(22,614)
(168,500)		 Balance
31 July
2020
£
28,000
2,696,471
883,563
(2,236,987)
1,371,047
24,749
1,395,796

The Charity Commission have directed that a yearly sum of not less than £1,000 shall be invested for the purpose of providing for the extraordinary repair, improvement or rebuilding of property belonging to the Trust.

The property revaluation reserve represents the surplus on revaluation of the charity's properties. The charity's properties were revalued during the year ended 31 July 2021 with an increase of £120,000 (2020: decrease of £168,500 to the carrying value, consisting of an elimination of depreciation previously charged to the capital fund of £81,500 and a reduction of £250,000 to the gross valuation).

Page 37

ST BEES SCHOOL

NOTES ON FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

24 Analysis of movements in unrestricted funds (continued)

The capital fund represents amounts invested in land and buildings, which were previously funded by loans from The Friends of St Bees School General Charitable Trust. The Friends converted all loans into a donation on 31 July 2017, £883,563 of which pertained to capital fund investment. Depreciation on the charity's property is charged to this fund. The capital fund is represented entirely by land and buildings.

The Trust's general fund is retained to provide working capital and may be used for the charity's general purposes. The Trust's general fund showed a deficit of £2,381,504 (2020: Deficit of £2,236,987) at 31 July 2021.

The Trustees are taking steps to reduce the deficit on general funds in line with best practice.

25 Gross cash flows

Reconciliation of net movement in funds
to net cash inflow/(outflow) from operating activities
Net movement in funds
Investment income
Endowment donations
Depreciation
Impairment of fixed assets
(Gains)/losses on revaluations
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Increase/(decrease) in provisions
Net cash (used in)/provided by group operating activities		 Group
2021
£
1,640
-
(25,680)
3,530
-
(120,000)
84,721
1,534,074
(1,498,667)
(20,382)		 Group
2020
£
(235,745)
(208)
(20,062)
3,686
(338)
168,500
(62,063)
100,409
-
(45,821)

Page 38