Financial Statements The Pilgrims' School
For the Year Ended 31 August 2022
Company No. 4296085 Registered Charity No. 1091579
The Pilgrims' School Financial statements for the year ended 31 August 2022
Index to the financial statements
| Report of the Governing Body | 1 - 8 |
|---|---|
| Independent Auditor's report | 9 - 12 |
| Principal accounting policies | 13 - 16 |
| Statement of financial activities | 17 |
| Balance sheet | 18 |
| Cash flow statement | 19 |
| Notes to the financial statements | 20 – 28 |
The Pilgrims' School Financial statements for the year ended 31 August 2022
1
Report of the Governing Body
The Trustees (hereafter referred to as the Governors or Governing Body), present their annual report for the year ended 31 August 2022 under the Companies Act 2006, together with the audited financial statements for the year, and confirm that the latter comply with the requirements of the Act, the Trust Deed and the Charities SORP (FRS 102).
Summary of overall performance
The School has continued to thrive and flourish in terms of academic, musical and sporting excellence, during the last financial year. With the impact of the pandemic diminishing and an increase in pupil numbers, we are pleased to report a small net surplus this year compared with the net deficits in the last two years.
Reference and administration information
The Pilgrims’ School was founded in 1931 as a Preparatory School for the Winchester Cathedral Choristers but opened also for entrance by other pupils known as Commoners. In 1966 arrangements were made with Winchester College for the Quiristers (the College Chapel Choir Boys) to join and they take part fully in the life of the School.
The School provides a high level of education for pupils between the ages of 4 and 13 years either as boarders or day-boys. The School seeks to enable each Pilgrim to find and develop his basic talents in the framework of a disciplined and caring community. Our vision is to be ‘a School that enables boys to be the best they can, a School with boys who live not just for themselves but for others’. We aim to ensure that pupils attain the highest academic levels whilst allowing them to benefit from many extra-curricular activities, especially in the provision of facilities and tuition to develop their musical talents. This ethos has been made clear through a legally devised Parent-School Agreement. The terms and conditions of this agreement have been provided to all parents.
The School operates as an independent company limited by guarantee under the ownership of The Chapter of Winchester Cathedral. The Pilgrims' School was registered as a private limited company with the Registrar of Companies for England and Wales, company number 4296085, on 28 September 2001. The Pilgrims' School, registered charity number 1091579, was entered in the Central Register of Charities with effect from 10 April 2002. A formal lease was signed between the School and Chapter on 1 September 2002.
Governing Body
The Governors of the School (who are also directors of the company for the purposes of the Companies Act) who served at any time during the year were: The Very Revd C Ogle (resigned 30 November 2021) Mr I Power (appointed 30 November 2021) Miss E Bourner Mr J Brough Mr M Bruce Mrs M Chin-Wolf (resigned 5 July 2022) Dr D Luckett Canon G Medd (resigned 5 July 2022) Canon R Riem (appointed 26 November 2021) The Revd Canon A Trenier Dr J Webster (resigned 31 August 2022) Prof M Wheeler (resigned 5 July 2022) Mr N Wilks (resigned 31 August 2022) Mr M Wilson Mr S Woodward
The Pilgrims' School Financial statements for the year ended 31 August 2022
2
Report of the Governing Body
Key personnel and professional advisers
| The Head | Dr S J Essex (resigned 8 July 2022) |
|---|---|
| Interim Head | Mr A Duncan (appointed 8 July 2022) |
| Director of Finance & | Ms K Dennett |
| Resources | |
| Address | The Pilgrims' School |
| 3 The Close | |
| Winchester | |
| Hampshire | |
| SO23 9LT | |
| Bankers | National Westminster Bank plc |
| 105 High Street | |
| Winchester | |
| Hampshire | |
| SO23 9AW | |
| Lloyds Bank Plc | |
| Black Horse House | |
| Jacobs Yard | |
| London Street | |
| Basingstoke | |
| Hampshire | |
| RG21 7NT | |
| Solicitors | Godwins |
| 12 St Thomas Street | |
| Winchester | |
| Hampshire | |
| SO23 9HF | |
| Blake Morgan | |
| New Kings Court | |
| Tollgate | |
| Chandler’s Ford | |
| Eastleigh | |
| Hampshire | |
| SO53 3LG | |
| Auditors | Mazars LLP |
| 5thFloor, Merck House | |
| Seldown Lane | |
| Poole | |
| Dorset | |
| BH15 1TW |
The Pilgrims' School Financial statements for the year ended 31 August 2022
3
Report of the Governing Body
Policy
The Governors determine the strategic direction of the School. The day-to-day management of the School is delegated to the Head and Director of Finance & Resources.
Structure, governance and management
Governing document
The School is governed by its Articles of Association. These were updated in December 2021 to reflect the change in the governance of the School. As part of this, the Dean became the Visitor rather than the exofficio Chair of Governors and an independent Chair of Governors was appointed.
Governing Body
The Governing Body comprises up to 14 members: 2 are ex officio and 5 are appointed by external appointing bodies (3 by the Dean and Chapter of Winchester Cathedral and 2 by the Warden and Fellows of Winchester College). The remaining Governors, including the Chair, are elected at a meeting of the Board on the basis of nominations received from within the Board. All appointments take into consideration personal competence, specialist skills and local availability and follow the procedures for good governance established by the Governance and Nominations Committee. The term of office for Governors appointed by the external appointing bodies is at the discretion of those bodies (and is normally 5 years), the Governors appointed by the Board serve for a term of five years but, if eligible, they may be re-elected. Related party relationships and transactions are disclosed in Note 22 to the accounts.
The Reverend Canon Dr Roland Riem, Vice-Dean of Winchester Cathedral was appointed Governor in November 2021. Mrs Margaret Chin-Wolf, Canon George Medd and Professor Michael Wheeler retired as Governors on 5 July 2022; Dr James Webster and Mr Nick Wilks retired as Governors on 31 August 2022. Subsequent to the year end, Mr Rupert Boissier, Miss Sarah Baldock, Mrs Sarah Saunders and Mr Iain Smith were appointed as Governors in November 2022.
Trustee training
New Governors carry out an induction session with the Clerk to the Governing Body and receive briefings from the Chair, Head and Director of Finance & Resources as necessary. All Governors are encouraged to carry out training provided by the Association of Governing Bodies of Independent Schools (AGBIS).
Organisational management
The Governors meet as a Board at least three times a year to determine the general policy of the School and review its overall management and control, for which they are legally responsible. The Head and the Director of Finance & Resources also attend meetings in an advisory capacity. The work of implementing most of the Board's policies is carried out by the following Standing Committees that meet at least once a term prior to each meeting of the Governing Body:
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The Governance and Nominations Committee
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The Finance and General Purposes Committee
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The Academic and Pastoral Committee
The day-to-day management and running of the School is delegated to the Head and the Director of Finance & Resources, supported by other members of the Senior Leadership Team and staff.
The Pilgrims' School Financial statements for the year ended 31 August 2022
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Report of the Governing Body
Remuneration of the Governing Body
Members of the Governing Body do not receive any remuneration for their services. Details of the remuneration for the Head and the Director of Finance & Resources are contained in Note 3 to the financial statements.
Organisational structure and relationships
The School is an active member of the Independent Association of Prep Schools, the Choir Schools’ Association, the Boarding Schools’ Association and the Independent Schools’ Bursars Association for the promotion and maintenance of school standards generally.
Charitable objectives and aims
The School’s principal objective is to provide a high level of education to its pupils, both in academic terms and by encouraging them to benefit from many extra-curricular activities, especially those who develop their musical talents.
The School also co-operates with many local charities in our ongoing endeavours to widen public access to our schooling, to optimize the use of our cultural and sporting facilities and to awaken in our pupils an awareness of the social context of the education they receive at the School.
Further details of the School’s charitable activities are provided in the Operational Report below.
Inspection Reports
The School was inspected by the Independent Schools’ Inspectorate (ISI) in February 2023. Its Focused Compliance and Educational Quality Inspection Report concluded that the School met all the required categories of compliance and it was deemed to be ‘Excellent’ in both the ‘quality of the pupils’ academic and other achievements’ and the ‘quality of the pupils’ personal development’.
The report described pupils as being ‘curious, with a thirst for knowledge and understanding’ that ‘pupils’ attitudes to others and behaviour are exemplary throughout the school’ and that they ‘are confident and assured that they can be themselves, nurtured by teachers who praise and encourage them and celebrate their achievements’.
Fundraising
In view of the relatively low level of its activity, the School has not registered with the Fundraising Regulator but does support the standards for fundraising set out in the Code of Fundraising Practice. To its knowledge, the School has complied with those principles and has received no complaints about its fundraising activities. An amount of £14,304 was donated to several charities in the year as a result of various fundraising activities organised by the School and the Pilgrims’ Parents Association.
The Pilgrims' School Financial statements for the year ended 31 August 2022
5
Report of the Governing Body
Strategic and Operational Report
Review of achievements and performance for the year
During the year the School had the following numbers:
| Choristers: | 21 |
|---|---|
| Quiristers: | 16 |
| Commoner Boarders: | 53 |
| Commoner Day Boys: | 128 |
| Pre-Prep: | 33 |
| Total: | 251 (Average number of pupils for 2021/22) |
The School continues to flourish in its three main areas of academic, musical, and sporting excellence. The leavers from Year 8 achieved excellent results in their final examinations. The overall number of awards was 19 this year (2020/21: 16). Four academic scholarships and two exhibitions were won at Winchester College, along with a King’s scholarship to Eton and one to Tonbridge (the Ainslie Award, the top award given to only one boy each year). This was another excellent year for music. Five boys achieved full music scholarships (two at Winchester College, one at Bedales, one at Canford and one at Sherborne) and a further four Music Exhibitions were awarded (two at Eton and two at Winchester College). One scholarship and one exhibition were achieved for Sport, both at Winchester College. Other boys obtained entry to the above schools, as well as Bradfield, Charterhouse, International School of Madrid, Radley, Rookwood and Westgate.
Charitable Objects
The School is aware of the guidance issued by the Charity Commission under the Charities Act in relation to Public Benefit and the Governors, The Head and Director of Finance & Resources are mindful of their obligation to have regard thereto. All are confident that the School’s activities are in pursuit of its objects and are delivering public benefit. This is achieved both by the provision of education for the Choristers and the Quiristers and school bursaries and assistance to fund the education of non-choral pupils whose parents would not normally be in a position to send their boys to the school.
During 2021/22, 20 pupils received some form of bursary support; this represented 8% of the pupil population. Of these, 13 received financial support totalling £107,145 (2020/21: £134,434) from the School’s Bursary Fund and 4 received support totalling £25,757 (2020/21: £43,203) from the Raymond Freke Award Fund. An additional £50,806 (2020/21: £56,499) was provided from external sources, of which £5,213 came from Winchester Cathedral in the current year. The maximum bursary provided to a single pupil was 80% of a total fee. The total provision of £183,707 (2020/21: £234,136) equates to 3.5% (2020/21: 4.9%) of gross fee income. The School has also been able to provide support to two boys from Ukraine, now living in the UK.
In addition to bursaries, the School’s activities have reached out into the local community and given resources free or for minimal charges, to help others. In particular, the following have been undertaken:
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The School continued to support a choral outreach project combined with Winchester Cathedral Music Department
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As part of the School’s object as a Choir School, a strong musical ethos is maintained throughout the School and this is extended into the local community by providing:
oFacilities for external music lessons and music exams for local childrenoSchool choir performances in the community
The Pilgrims' School
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Financial statements for the year ended 31 August 2022
Report of the Governing Body
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Fund raising concerts by the Choristers, the Quiristers and other musicians from within the School
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Members of our music department taking music and movement workshops at local nursery school
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Under the object of the advancement of the Christian religion, the School plays a full part in the life of Winchester Cathedral and the School has cooperated in many small ways with the mission of the Cathedral
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The School participates in the Winchester Heritage Open Days event
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The School has provided free Youth Mental Health First Aid training to community groups
During the year the School began to resume activities and undertake more fundraising events, which had previously been cancelled or restricted due to the Coronavirus pandemic. We hope that it will be possible to continue with a full programme of activities during the forthcoming academic year.
The School community continues to contribute generously throughout the year to many national and local charitable causes; during this year funds were raised to support charities such as Children in Need, Comic Relief, DEC Ukraine appeal, The Murray Parish Trust, Amazing Alice, Winchester Home Start, Winchester Basic (food) bank, Royal British Legion. The Governing Body are grateful to the Pilgrims’ Parents Association, who support and run many of these events.
We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning future activities.
Financial Performance
The School’s financial performance has improved in 2021/22, making a surplus of £32k compared to losses in the previous two years when the School gave fee rebates as a result of the Coronavirus pandemic. Pupil numbers increased year on year, with an average of 251 in 2021/22 compared to 244 in the previous year.
Significant work has continued to improve the estate and grounds of the School, in particular, the complete refurbishment of the Main School boarding house bathrooms during the school summer break in 2022.
The School’s reserve policy requires it to maintain sufficient reserves to enable it to meet its short-term financial objectives, defined as at least one term’s expenditure, in the event of an unexpected revenue shortfall or the emergence of an unexpected liability. Total funds of the School at the year-end amounted to £4,110k (2021: £4,078k), of which £4,017k (2021: £3,982k) are considered available reserves. As at year end, the cash balance supporting these was £1,249k (2021: £1,486k); the decrease reflects the timing of supplier payments and fee invoicing around the year end. The Finance and General Purposes Committee has conducted a review of the financial risks facing the School. After considering these, the Committee concluded that this level of reserves is appropriate.
The Governing Body regularly reviews the School’s finances against budget together with a cash flow analysis as part of the effective stewardship of the School. It considers that given the strength of its balance sheet position, the income generated, the popularity of the School, and its fiscal controls, the cash reserves held are adequate to meet its requirements and so it is appropriate to prepare the School’s financial statements as a going concern.
The Pilgrims' School
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Financial statements for the year ended 31 August 2022
Report of the Governing Body
Risk Management
The Governors review annually the areas of the School's operations and considered the major risks faced in each of these areas. The principal risks identified are captured in the School Risk Register, also reviewed annually, and contains the following:
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Ongoing risks associated with the external financial and operating environment, increases in charges for teachers’ pensions and other additional employment costs
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Compliance with statutory and ISI requirements
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Ensuring there is effective governance and sound financial management
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A fall in pupil numbers that affects the ability to support current structures and long term plans
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Maintaining the quality of education and pastoral care
The following are also included within the School’s Business Continuity Disaster Recovery Plan:
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Impact of major incidents resulting from fire, serious injury, loss of utilities (power and water); and
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IT security, data recovery and continuity.
In the opinion of the Governors, the School has the requisite monitoring and review systems and has access to the necessary resources and skills which, under normal circumstances, should allow these risks to be mitigated to an acceptable level in its day-to-day operations.
Future plans
Regrettably, after careful reflection following a period of ill health, Dr Sarah Essex stepped down as Head of the School at the end of the academic year. Alistair Duncan, Deputy Head and Second Master fulfilled the role of Interim Head during the academic year 2022/23, for which the Governors are extremely grateful. The process to recruit a new Head was completed in December 2022 and the Governors have announced that Mr Tim Butcher has been appointed and will start at the School from September 2023. Tim Butcher brings with him a unique connection to and knowledge of the School, having both attended Pilgrims’ as a boy, (becoming Head Quirister and a 1st team player across all sports), and then returning to teach as Head of History early in his career.
The Pilgrims' School
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Financial statements for the year ended 31 August 2022
Report of the Governing Body
Governing Body's responsibilities for the financial statements
The Governors (who are also directors of The Pilgrims' School for the purposes of company law) are responsible for preparing the Report of the Governing Body and the financial statements in accordance with applicable law and regulations.
Company law requires the Governors to prepare financial statements for each financial year. Under that law the Governors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Company law also prohibits the Governors from approving the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the School and of the incoming resources and application of resources, including the income and expenditure, for that period. In preparing these financial statements, the Governors are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the School will continue in business.
The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the School’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the School and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Governors are aware:
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there is no relevant audit information of which the School’s auditor is unaware; and
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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 auditor is aware of that information.
The Governors are responsible for the maintenance and integrity of any corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Governing Body approved this report, including the strategic report, at its meeting on 16 March 2023.
Signed on its behalf by:
Ian Power (May 18, 2023 20:47 GMT+1)
I Power Chair of Governors
The Pilgrims' School
Financial statements for the year ended 31 August 2022
Independent Auditor’s report to the Members of The Pilgrims’ School
Opinion
We have audited the financial statements of The Pilgrims’ School (the ‘Charity’) for the year ended 31 August 2022 which comprise the Accounting Policies, the Statement of Financial Activities, Balance Sheet, Cashflow Statement and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the Charity’s affairs as at 31 August 2022 and of its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 “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
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. Our audit procedures to evaluate the Governors’ assessment of the Charity’s ability to continue to adopt the going concern basis of accounting included but were not limited to:
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Undertaking an initial assessment at the planning stage of the audit to identify events or conditions that may cast significant doubt on the Charity’s ability to continue as a going concern;
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Reviewing the Governors’ cash flow forecasts
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Obtaining the latest company management accounts
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Reviewing the appropriateness of the Governors’ disclosures in the financial statements.
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.
The Pilgrims' School Financial statements for the year ended 31 August 2022
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Independent Auditor’s report to the Members of The Pilgrims’ School
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 Governors are responsible for the other information contained with 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and the Governors’ Report prepared for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Strategic Report and the Governors’ Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Governors’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Governors’ remuneration specific by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Governors
As explained more fully in the Governing Body’s responsibilities statement set out on page 8, 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.
The Pilgrims' School Financial statements for the year ended 31 August 2022
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Independent Auditor’s report to the Members of The Pilgrims’ School
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.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the Charity and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, non-compliance with implementation of government support schemes relating to COVID-19.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
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Inquiring of management and, where appropriate, those charged with governance, as to whether the Charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
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Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
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Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
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Considering the risk of acts by the Charity which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
In addition, we evaluated the Governors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion), the use of restricted funds and significant one-off or unusual transactions.
The Pilgrims' School Financial statements for the year ended 31 August 2022
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Independent Auditor’s report to the Members of The Pilgrims’ School
Our audit procedures in relation to fraud included but were not limited to:
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Making enquiries of the Governors and management on whether they had knowledge of any actual, suspected or alleged fraud;
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Gaining an understanding of the internal controls established to mitigate risks related to fraud;
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Discussing amongst the engagement team the risks of fraud; and
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Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor’s report.
Use of the audit 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s members as a body for our audit work, for this report, or for the opinions we have formed.
Signed:
Jonathan Marchant (May 19, 2023 08:07 GMT+1)
Jonathan Marchant
(Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor
5[th] Floor Merck House Seldown Lane Poole Dorset BH15 1TW Date: May 19, 2023
The Pilgrims' School Financial statements for the year ended 31 August 2022
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Accounting policies
Company status
The Pilgrims’ School is an independent company limited by guarantee. The only member of the company is the Chapter of Winchester Cathedral. In the event of the entity being wound up, the liability in respect of the guarantee is limited to £1.
Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Pilgrims’ 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 financial statements are presented in Sterling (£).
The principal accounting policies of the School are set out below.
Going concern
The financial statements have been prepared on the basis that the School is a going concern. The Governors consider that there are no material uncertainties on the School’s ability to continue its activities for the foreseeable future. They have approved a detailed income and expenditure budget for 2022/23, the School has a regular stream of income from the schools’ pupils and its reserves policy means that it will be able to meet its obligations and have sufficient time to mitigate against any unforeseen circumstances.
The Governors have reviewed the latest forecasts and considered the period 12 months from the date of approving these financial statements. The extent of available reserves and cash balances ensure the School’s longer term future and the Governors are satisfied the School remains a going concern.
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 School and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Governors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the School 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.
The Pilgrims' School Financial statements for the year ended 31 August 2022
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Accounting policies
Incoming resources
Fees receivable consists of charges for the academic year 2021/22 less allowances and bursaries out of the School's designated funds but includes contributions received from restricted funds for bursaries.
Other School income consists of optional extra services provided to the pupils, as well as income for initial registration of and deposits forfeited for pupils.
Payments to the School from the Government’s Coronavirus Job Retention Scheme are recognised when receivable and classified as other income in the SOFA.
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.
Charitable activities are costs incurred in connection with the running of the School, including wages, equipment to support teaching, and other administration expenses.
Governance costs are those incurred in connection with administration of the School and compliance with constitutional and statutory requirements. These costs include audit, legal advice for Governors and the costs associated with meeting constitutional and statutory requirements such as the cost of Governors' meetings and the preparation of statutory accounts.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Financing costs include interest on loans and other sources of finance.
All resources expended are inclusive of irrecoverable VAT.
Tangible fixed assets and depreciation
Expenditure on improvements and modernisation which enhances the long-term capability of the School is capitalised and depreciated in line with the policy for freehold buildings. Expenditure on repairs and general maintenance incurred on a regular basis, along with individual items costing less than £1,000, are charged to the Statement of Financial Activities as incurred.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.
The Pilgrims' School Financial statements for the year ended 31 August 2022
15
Accounting policies
Tangible fixed assets and depreciation (continued)
Depreciation is provided on all tangible fixed assets in use at rates calculated to write off the cost less estimated residual value of each asset over its expected life as follows:
School buildings – freehold and long leasehold 2-5% Equipment 10-20% Motor vehicles 10-20%
Operating leases
Rentals under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.
Stocks
Stocks, which comprise school uniforms, are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
No account is taken at the year-end of stocks of provisions, stationery, fuel and household requisites. In the opinion of the Governing Body this does not represent a material departure from standard accounting practice.
Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the School; this is normally upon notification of the interest paid or payable by the Bank.
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. The Governing Body regularly reviews debtors and provision is made against any debts considered irrecoverable.
Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Liabilities and provisions
Liabilities are recognised when there is a legal or constructive obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the entity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. 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 within interest payable and similar charges.
The Pilgrims' School Financial statements for the year ended 31 August 2022
16
Accounting policies
Financial instruments
The entity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans, which are measured at amortised cost using the effective interest method.
Pensions
Retirement benefits to teaching staff of the School are provided by the Teachers’ Pension Scheme (‘TPS’). This is a defined benefit scheme and the assets are held separately from those of the School.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the School in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in Note 20, the TPS is a multi-employer scheme and the School is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS, therefore, is treated as a defined contribution scheme and the contributions are recognised as they are paid each year.
The School also operates defined contribution schemes for non-teaching staff. Contributions are charged in the SOFA as they become payable.
Judgements in applying accounting policies and key sources of estimation uncertainty
In the preparation of the 2022 financial statements it is the responsibility of both the Governors and Officers to make informed judgements and estimates in the provision of liabilities and expenses. The Pilgrims’ School acknowledges the requirements of this disclosure. As such, the Governors and Officers of the School have made the following judgements and estimations that have the most significant effect on the amounts recognised in the financial statements.
-
They have considered whether there are any indications that trade debtors may have suffered an impairment at the reporting date as required by FRS102. The Director of Finance & Resources regularly reviews those balances that are overdue. Consideration is based upon the credit terms and financial status of the parents with provisions being made against those where a material uncertainty exists that the amounts may not be recovered.
-
The School buildings have been accounted in line with FRS 102 on the basis that the existing lease will be extended beyond its current lease term. The Governors consider this judgement to be appropriate based on its ongoing discussions with the Chapter of Winchester Cathedral and their intention to agree an extension or a new lease.
The Pilgrims' School Financial statements for the year ended 31 August 2022
17
Statement of financial activities
| Unrestricted | Restricted | Total | Total | ||
|---|---|---|---|---|---|
| funds | funds | funds | Funds | ||
| Note | 2022 | 2022 | 2022 | 2021 | |
| £ | £ | £ | £ | ||
| Incoming resources | |||||
| Income from charitable activities | |||||
| Fees receivable | 1 | 5,153,025 | - | 5,153,025 | 4,675,378 |
| Other School income | 2 | 72,783 | - | 72,783 | 137,716 |
| Income from generated funds | |||||
| Grants and donations | - | - | - | 23,900 | |
| Activities for generating funds: | |||||
| Hire of premises | 1,300 | - | 1,300 | 1,625 | |
| Bank interest receivable | 781 | 1,793 | 2,574 | 1,979 | |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| Total incoming resources | 5,227,889 | 1,793 | 5,229,682 | 4,840,598 | |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| Resources expended | |||||
| Charitable activities | |||||
| School operating costs | 5,136,908 | 5,274 | 5,142,182 | 4,926,801 | |
| Costs of generating funds | |||||
| Fundraising for voluntary income | 46,254 | - | 46,254 | 37,795 | |
| School financing costs | 5 | 9,268 | - | 9,268 | 8,874 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| Total resources expended | 6 | 5,192,430 | 5,274 | 5,197,704 | 4,973,470 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| Net incoming/(outgoing) | |||||
| resources | 35,459 | (3,481) | 31,978 | (132,872) | |
| Transfers between funds | - | - | - | - | |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| Net movement in funds for the year | 35,459 | (3,481) | 31,978 | (132,872) | |
| Balances brought forward | |||||
| at 1 September 2021 | 3,981,858 | 96,496 | 4,078,354 | 4,211,226 | |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| Balances carried forward | |||||
| at 31 August 2022 | 4,017,317 | 93,015 | 4,110,332 | 4,078,354 | |
| ====================== | ====================== |
====================== | ====================== |
All amounts relate to continuing operations.
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School (Registered number 4296085) Financial statements for the year ended 31 August 2022
18
Balance sheet
| Note | 2022 | 2021 | |
|---|---|---|---|
| £ | £ | ||
| Fixed assets | |||
| Tangible assets | 8 | 4,047,586 | 3,918,454 |
| ` | ----------------------------------------------- | ----------------------------------------------- | |
| Current assets | |||
| Stocks | 9 | 1,276 | 3,473 |
| Debtors | 10 | 1,196,223 | 1,169,437 |
| Cash at bank and in hand | 1,248,894 | 1,485,940 | |
| ----------------------------------------------- | ----------------------------------------------- | ||
| 2,446,393 | 2,658,850 | ||
| Creditors: amounts falling due within one year | 11 | (2,277,274) | (2,216,220) |
| ----------------------------------------------- | ----------------------------------------------- | ||
| Net current assets | 169,119 | 442,630 | |
| ----------------------------------------------- | ----------------------------------------------- | ||
| Total assets less current liabilities | 4,216,705 | 4,361,084 | |
| Creditors: amounts falling due after more than one year | 12 | (106,373) | (282,730) |
| ----------------------------------------------- | ----------------------------------------------- | ||
| Net assets | 4,110,332 | 4,078,354 | |
| ==================== | ==================== | ||
| Funds | |||
| Unrestricted funds: General reserve | 13 | 4,017,317 | 3,981,858 |
| Restricted funds | 14 | 93,015 | 96,496 |
| ----------------------------------------------- | ----------------------------------------------- | ||
| 4,110,332 | 4,078,354 | ||
| =================== | ==================== |
The financial statements were approved and authorised for issue by the Governing Body and are signed on their behalf by:
Ian Power (May 18, 2023 20:47 GMT+1)
Mr I Power Chair of Governors
Date: May 18, 2023
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School Financial statements for the year ended 31 August 2022
19
Cash flow statement
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net movement in funds | 31,978 | (132,872) |
| Adjustments for: | ||
| Depreciation of tangible assets | 209,354 | 192,501 |
| Interest payable | 5,111 | 4,432 |
| Interest receivable | (781) | (168) |
| (Increase)/decrease in debtors | (26,786) | 557,954 |
| Decrease in stocks | 2,197 | 1,373 |
| Increase in creditors | 56,830 | 99,363 |
| Profit on sale of fixed assets | - | (400) |
| ---------------------------------------------- | ---------------------------------------------- | |
| Net cash generated from operating | 277,903 | 722,183 |
| activities | ||
| Cash flows from investing activities | ||
| Purchase of tangible assets | (338,486) | (124,183) |
| Interest received | 781 | 168 |
| Proceeds from sale of fixed assets | - | 400 |
| ---------------------------------------------- | ---------------------------------------------- | |
| Net cash outflow from investing activities |
(337,705) | (123,615) |
| Cash flows from financing activities | ||
| Repayment of bank loans | (172,133) | (41,296) |
| New loan raised | - | 50,000 |
| Interest paid | (5,111) | (4,432) |
| ---------------------------------------------- | ---------------------------------------------- | |
| Net cash (outflow)/inflow from | ||
| financing activities | (177,244) | 4,272 |
| Net (decrease)/increase in cash at bank | ||
| and in hand | (237,046) | 602,840 |
| Cash at bank and in hand at the beginning | ||
| of year | 1,485,940 | 883,100 |
| ---------------------------------------------- | ---------------------------------------------- | |
| Cash at bank and in hand | 1,248,894 | 1,485,940 |
| ============================================== | ============================================== | |
| Net cash | ||
| Cash at bank and in hand | 1,248,894 | 1,485,940 |
| Bank loans due within one year | (176,913) | (172,215) |
| Bank loans due after one year | (106,373) | (282,730) |
| ---------------------------------------------- | ---------------------------------------------- | |
| 965,608 | 1,030,995 | |
| ============================================== | ============================================== |
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School
20
Financial statements for the year ended 31 August 2022
1
Fees receivable
2
| Fees receivable | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Dayboys | 2,549,418 | 2,478,824 |
| Boarders | 1,382,043 | 1,091,382 |
| Pre-Prep | 383,937 | 321,070 |
| Choristers | 513,480 | 507,617 |
| Quiristers | 417,040 | 390,987 |
| Sundry fee income | 2,127 | 14,625 |
| ----------------------------------------------- | ----------------------------------------------- | |
| Gross fees receivable | 5,248,045 | 4,804,505 |
| Less: | ||
| Bursaries | (107,145) | (134,434) |
| ----------------------------------------------- | ----------------------------------------------- | |
| 5,140,900 | 4,670,071 | |
| Disbursements (net) | 7,201 | 730 |
| Fees remission scheme commission | 34 | 64 |
| ----------------------------------------------- | ----------------------------------------------- | |
| 5,148,135 | 4,670,865 | |
| Add: Bursaries from restricted funds | 4,890 | 4,513 |
| ----------------------------------------------- | ----------------------------------------------- | |
| 5,153,025 | 4,675,378 | |
| =================== | =================== | |
| Other School income | ||
| 2022 | 2021 | |
| £ | £ | |
| Coronavirus Job Retention Scheme | 0 | 60,912 |
| Learning support | 16,630 | 17,063 |
| Holiday sports courses | 24,789 | 10,260 |
| Choir time and expenses recharged | 9,083 | 7,666 |
| Registration fees | 11,001 | 11,696 |
| Deposits forfeited | 500 | 2,000 |
| Music facility charge | 3,930 | 1,205 |
| Sundry income | 6,850 | 26,914 |
| ----------------------------------------------- | ----------------------------------------------- | |
| 72,783 | 137,716 | |
| ==================== | ==================== |
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School
Financial statements for the year ended 31 August 2022
3
Staff costs
| Staff costs | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Wages and salaries | 2,856,334 | 2,668,806 |
| Social security costs | 282,259 | 256,124 |
| Pension contributions | 418,630 | 399,960 |
| ----------------------------------------------- | ----------------------------------------------- | |
| 3,557,223 | 3,324,890 | |
| ==================== | ==================== | |
| The average number of employees in the year was: | ||
| 2022 | 2021 | |
| Number | Number | |
| Teaching | 54 | 54 |
| Domestic/welfare | 36 | 36 |
| Administration | 11 | 10 |
| ------------------------------------------ | ------------------------------------------ | |
| 101 | 100 | |
| ================== | ==================== |
The emoluments of higher-paid employees fell within the following ranges.
| 2022 | 2021 | |
|---|---|---|
| Number | Number | |
| £60,001 to£70,000 | 3 | 1 |
| £70,001 to£80,000 | 2 | 1 |
| £90,001 to£100,000 | 1 | 1 |
| ==================== | ==================== |
Contributions totalling £85,779 (2021: £43,874) were made to defined benefit pension schemes in respect of the higher paid employees.
The key management personnel of the charity comprise the Head and the Director of Finance & Resources. The total employee benefits for these personnel, which includes employer pension and NI contributions, were £210,201 (2021: £220,064). This figure excludes £135,182 of compensation paid to the Head on her departure from the School.
The Governors received no remuneration during the year. There were travel expenses for Governors during the year totalling £547 (2021: £nil).
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School
22
Financial statements for the year ended 31 August 2022
4
5
Governance costs
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Auditors' remuneration: statutory audit services | 16,645 | 10,527 |
| Other professional fees | 51,804 | 45,438 |
| Liability insurance | 12,425 | 11,602 |
| ----------------------------------------------- | ----------------------------------------------- | |
| 80,874 | 67,567 | |
| =================== | ==================== |
Other professional fees include £23,508 (2021: £11,774) in respect of legal fees for employment and property advice in the year.
School financing costs
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Bank loan interest | 5,111 | 4,432 |
| Other interest and similar charges payable | 4,157 | 4,442 |
| ----------------------------------------------- | ----------------------------------------------- | |
| 9,268 | 8,874 | |
| =================== | ==================== |
6
Analysis of total resources expended
| Staff costs | Other | 2022 | Staff costs | Other | 2021 | |
|---|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | £ | |
| Charitable | ||||||
| activities | ||||||
| School | ||||||
| operating costs: | ||||||
| Teaching costs |
2,613,662 | 183,149 | 2,796,811 | 2,384,293 | 148,720 | 2,533,013 |
| Welfare costs | 395,164 | 303,275 | 698,439 | 377,740 | 255,506 | 633,246 |
| Premises | 206,254 | 958,468 | 1,164,722 | 232,647 | 1,039,707 | 1,272,354 |
| Support costs of schooling |
342,143 | 13,919 | 396,062 | 330,210 | 85,898 | 416,108 |
| Grants awards and prizes |
- | 5,274 | 5,274 | - | 4,513 | 4,513 |
| Governance costs |
- | 120,874 | 120,874 | - | 67,567 | 67,567 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| 3,557,223 | 1,584,959 | 5,142,182 | 3,324,890 | 1,601,911 | 4,926,801 | |
| Costs of | ||||||
| generating | ||||||
| funds | ||||||
| Fundraising costs |
- | 46,254 | 46,254 | - | 37,795 | 37,795 |
| Finance costs | - | 9,268 | 9,268 | - | 8,874 | 8,874 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| 3,557,223 | 1,640,481 | 5,197,704 | 3,324,890 | 1,648,580 | 4,973,470 | |
| ==================== | ==================== | ==================== | ==================== | ==================== | ==================== |
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School
23
Financial statements for the year ended 31 August 2022
7
8
Net incoming resources
| This is stated after charging: | 2022 | 2021 |
|---|---|---|
| £ | £ | |
| Costs of Coronavirus pandemic | - | 19,730 |
| Profit on sale of fixed assets | - | 400 |
| Depreciation of tangible fixed assets | 209,354 | 192,501 |
| Auditors remuneration – audit services | 16,645 | 10,527 |
| Operating lease rentals – land and buildings | 204,665 | 210,265 |
| ==================== | ==================== |
Tangible fixed assets
| Long | |||||
|---|---|---|---|---|---|
| School | leasehold | Motor | |||
| buildings | property | Equipment | vehicles | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| At 1 September 2021 | 4,937,287 | 50,930 | 1,248,215 | 69,181 | 6,305,613 |
| Additions | - | - | 338,486 | - | 338,486 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| At 31 August 2022 | 4,937,287 | 50,930 | 1,586,701 | 69,181 | 6,644,099 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| Depreciation | |||||
| At 1 September 2021 | 1,510,675 | - | 817,261 | 59,223 | 2,387,159 |
| Charge for the year | 102,002 | - | 106,322 | 1,030 | 209,354 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| At 31 August 2022 | 1,612,677 | - | 923,583 | 60,253 | 2,596,513 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| Net book value at | |||||
| 31 August 2022 | 3,324,610 | 50,930 | 663,118 | 8,928 | 4,047,586 |
| ==================== | ==================== | ==================== | ==================== | ==================== | |
| Net book value at | |||||
| 31 August 2021 | 3,426,612 | 50,930 | 430,954 | 9,958 | 3,918,454 |
| ==================== | ==================== | ==================== | ==================== | ==================== |
School buildings comprise primarily the cost of improvements, such as the Millennium Block, Pre-Prep and the Winton complex including the swimming pool. Under the terms of the School’s lease with the Cathedral, these buildings will fall within the scope of the lease 21 years after they were built and hence become subject to rental charges. The first, the Millennium Block, was due to take effect from 2021; the rental charge is subject to negotiation and at this stage it is not possible to quantify the charge, if any, that will arise.
Stocks
Stock of school uniforms
2022 2021 £ £ 1,276 3,473
9
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School
24
Financial statements for the year ended 31 August 2022
10
Debtors
| 10 | Debtors | ||
|---|---|---|---|
| 2022 | 2021 | ||
| £ | £ | ||
| Fees | 1,082,468 | 1,119,814 | |
| Others | 113,755 | 49,623 | |
| ----------------------------------------------- | ----------------------------------------------- | ||
| 1,196,223 | 1,169,437 | ||
| ==================== | ==================== | ||
| 11 | Creditors: amounts falling due within one year | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Bank loan | 166,913 | 165,548 | |
| Bounce Back loan | 10,000 | 6,667 | |
| Amounts owing to suppliers | 159,041 | 48,100 | |
| Payroll taxes and deductions | 21 | 244 | |
| Fees invoiced in advance | 1,679,003 | 1,637,260 | |
| Pupil deposits | 124,660 | 132,130 | |
| Other creditors | 61,694 | 63,674 | |
| Accruals | 75,942 | 162,597 | |
| ----------------------------------------------- | ----------------------------------------------- | ||
| 2,277,274 | 2,216,220 | ||
| ==================== | ==================== | ||
| Analysis of deferred income: | |||
| 2022 | 2021 | ||
| £ | £ | ||
| Deferred income at 1 September 2021 | 1,637,260 | 1,521,924 | |
| Resources deferred during the year | 1,679,003 | 1,637,260 | |
| Amounts released from previous years | (1,637,260) | (1,521,924) | |
| ----------------------------------------------- | ----------------------------------------------- | ||
| Deferred income at 31 August 2022 | 1,679,003 | 1,637,260 | |
| ==================== | ==================== | ||
| 12 | Creditors: amounts falling due after more than one year | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Bank loan | 72,110 | 239,397 | |
| Bounce Back loan | 34,263 | 43,333 | |
| ----------------------------------------------- | ----------------------------------------------- | ||
| 106,373 | 282,730 | ||
| ==================== | ==================== |
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School
25
Financial statements for the year ended 31 August 2022
13
Included within the above are amounts falling due as follows:
| Included within the above are amounts falling due as | follows: | |
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Bank loans | ||
| Between one and two years | 176,913 | 172,215 |
| ==================== | ==================== | |
| Between two and five years | 106,373 | 107,182 |
| ==================== | ==================== | |
| Over five years | - | 3,333 |
| ==================== | ==================== |
The bank loan commenced around November 2014 at base rate plus 0.95% and is repayable in 101 monthly instalments. The bank loan is secured by way of a letter of comfort from the Dean of Winchester.
The Bounce Back loan commenced in January 2021 and is repayable in 60 monthly instalments, after an initial repayment holiday of one year. Interest is charged on the loan at a rate of 2.5%.
Unrestricted funds
| General | |
|---|---|
| reserve | |
| £ | |
| At 1 September 2021 | 3,981,858 |
| Incoming resources | 5,227,889 |
| Resources expended | (5,192,430) |
| ----------------------------------------------- | |
| At 31 August 2022 | 4,017,317 |
| ==================== |
14 Restricted funds
At 1 September 2021 Incoming resources - Interest received Resources expended - Bursaries and prizes At 31 August 2022 |
The Gavin Roynon Chorister Bursary Fund Prizes Fund Total £ £ £ 94,524 1,972 96,496 1,793 - 1,793 (4,890) (384) (5,274) |
|---|---|
| 91,427 1,588 93,015 |
The Prizes Fund was established by donations to fund prizes for achievement.
The Gavin Roynon Fund was established in 2017/18 by an initial donation to provide financial assistance to choristers.
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School
26
Financial statements for the year ended 31 August 2022
15 Allocation of net assets
16
17
18
Current year
| Tangible | |||||
|---|---|---|---|---|---|
| fixed | Current | Current | Long-term | ||
| assets | assets | liabilities | liabilities | Total | |
| £ | £ | £ | £ | £ | |
| General fund | 4,047,586 | 2,353,378 | (2,277,274) | (106,373) | 4,017,317 |
| Restricted funds | - | 93,015 | - | - | 93,015 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| 4,047,586 | 2,446,393 | (2,277,274) | (106,373) | 4,110,332 | |
| ==================== | ==================== | ==================== | ==================== | ==================== | |
| Prior year | |||||
| Tangible | |||||
| fixed | Current | Current | Long-term | ||
| assets | assets | liabilities | liabilities | Total | |
| £ | £ | £ | £ | £ | |
| General fund | 3,918,454 | 2,562,354 | (2,216,220) | (282,730) | 3,981,858 |
| Restricted funds | - | 96,496 | - | - | 96,496 |
| ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| 3,918,454 | 2,658,850 | (2,216,220) | (282,730) | 4,078,354 | |
| ==================== | ==================== | ==================== | ==================== | ==================== |
Taxation
The School is registered as a charity and there is no liability to taxation on its charitable activities.
Capital commitments
There was a capital commitment at 31 August 2022 of £20,180 relating to work on upgrading the School’s boarding bathrooms (31 August 2021: £43,016).
Operating lease commitments
At 31 August 2022 the School had future minimum rentals payable under non-cancellable operating leases as follows:
| Land and | buildings | |
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Non-cancellable lease commitments: | ||
| Within 1 year | 174,665 | 181,990 |
| Between 2 and 5 years | 513,220 | 668,220 |
| After more than 5 years | 23,375 | 23,400 |
| ======================================= | ======================================= |
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School Financial statements for the year ended 31 August 2022
27
19 Contingent liabilities
20 Pension schemes
There were no contingent liabilities at 31 August 2022 or 31 August 2021.
The School participates in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £382,930 (2021: £365,749) and at the year-end £nil (2021: £nil) was outstanding in respect of contributions to this scheme.
The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pensions Regulations 2014. Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
As such, it is not possible or appropriate to consistently identify the liabilities of the TPS which are attributable to the School. As required by FRS 102 "Retirement Benefits", the School accounts for this scheme as if it were a defined contribution scheme.
The employer contribution rate is set following scheme valuations undertaken by the Government Actuary’s Department. The latest actuarial valuation of the TPS was prepared as at 31 March 2016 and the valuation report, which was published in March 2019, confirmed the employer contribution rate for the TPS of 16.4% would increase to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.
The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions. On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgement that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.
The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.
In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.
The accompanying accounting policies and notes form an integral part of these financial statements.
The Pilgrims' School Financial statements for the year ended 31 August 2022
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Until the 2020 valuation is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial statements.
For some non-teaching staff, the School contributes to a defined contribution pension scheme administered by Scottish Widows on behalf of the Incorporated Association of Preparatory Schools for which the School's contribution is 5.5% of pensionable salary. All other eligible members of staff are auto-enrolled to NEST. The School contributed £19,684 (2021: £16,663) to the Scottish Widows Scheme and £14,448 (2021: £15,394) to NEST during the year. One staff member has a private scheme to which the School contributed a further £1,570 (2021: £2,154).
Trading income and expenditure
The School does not participate in any trading enterprise other than occasional small lets and the sale of school uniforms.
Related party transactions
The School operates as an independent company limited by guarantee under the ownership of The Chapter of Winchester Cathedral. The Pilgrims' School was registered as a private limited company with the Registrar of Companies for England and Wales, company number 4296085, on 28 September 2001.
Included in premises cost is rent of £155,000 (2021: £155,000) payable to the Chapter of Winchester. The bank loan is secured by way of a letter of comfort from the Dean of Winchester.
The Chapter has the right to appoint Governors of The Pilgrims' School (limited by guarantee). However, the School's results are not consolidated as the Chapter does not regard running the School as part of the ministry of the Cathedral and any financial surplus is not passed on to the Cathedral, save in the event of a dissolution or wind-up and only after all debts and liabilities have been settled.
During the year, School fees of £36,182 (2020/21: £43,203) were payable by the Raymond Freke Award Fund, of which the Director of Finance & Resources, Head and Chairman of the Governing Body are ex officio trustees. At the year-end a balance of £nil (2021: £nil) was due from the fund
A Governor, Mr M Wilson, is the senior partner of Blake Morgan LLP. During the year, Blake Morgan provided £13,164 (2021: £8,879) of legal services to the School on an arms-length basis.
Controlling party
Throughout the year the entity has been under the control of the Governors, a list of whom is disclosed in the Governors' report.
The accompanying accounting policies and notes form an integral part of these financial statements.