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2020-08-31-accounts

Registered number: 08502615 Charity number: 1152244

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Governors and advisers 1 - 2
Governors' report 3 - 11
Independent auditor's report on the financial statements 12 - 14
Consolidated statement of financial activities 15 - 16
Consolidated balance sheet 17 - 18
Company balance sheet 19 - 20
Consolidated statement of cash flows 21
Notes to the financial statements 22 - 53

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

Governors Mr B H Singleton LLB, Chairman1 Mr M Abraham BEd (resigned 30 January 2020) Mrs E J Cook BA (Hons)1 Mr M H Dyke BA, Vice Chairman1 Mrs K Gilmore DPSN RGN HV2 Mr W G S Hordern MBE MA Dip Th JP Mrs M Kitto BEd (hons) FNSEAD Mrs A K Poole BA1 Mr S M Raine FCA BSocSci1 Mrs J Wheeler BA NPQH The Very Revd M Thompson, the Dean of Birmingham The Revd Dr N Tucker, Vicar of Edgbaston Revd J Allcock BA Mr S Page1 Mr M J Cotter (resigned 17 September 2020) Mr A J Roddick (appointed 30 January 2020)1 Dr P Narendran (appointed 28 November 2020)

1 Finance & Estates Committee (together with the Headmaster, Bursar and Finance Manager)

2 Governors' Representative to The Friends of The Blue Coat School and Safeguarding Governor

Company registered number 08502615 Charity registered number 1152244 Registered office Somerset Road Edgbaston Birmingham B17 0HR Head Master Mr N G Neeson BEd NPQH Bursar Mr G W Morgan Independent auditor Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG

Page 1

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Other advisors

Bankers: Barclays Bank Plc 15 Colmore Row Birmingham B3 2BH

Investment managers: CCLA Senator House 85 Queen Victoria Street London EC4V 4ET

Solicitors: Veale Wasbrough Vizards 3 Brindley Place Brindley Drive Birmingham B1 2JB

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Governors present their annual report together with the audited financial statements of the Group and the School for the year ended 31 August 2020. The Governors confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) as amended by Update Bulletin 1 (effective 1 January 2015).

The Charity is a charitable company limited by guarantee. It was incorporated on 24 April 2013 and registered as a charity on 31 May 2013. Its Memorandum of Association, which established its objects and powers, provided that in the event of it being wound up, members are required to contribute an amount not exceeding £1. Membership of the Company is reviewed at the Annual General Meeting as appropriate.

The unincorporated Charity’s governing document is The Trust Founding Deed dating 1722. This has been amended over the years; the latest amendment is dated 17 December 2013. The unincorporated charity holds the charitable group’s endowment assets. On 19 June 2018, the Charity Commission issued a Direction linking the two charities for the purposes of Part 4 and Part 8 of the Charities Act 2011.

Governors and charity trustees

The Governors of The Blue Coat School Birmingham Limited are the charity trustees and directors of The Blue Coat School Birmingham Limited (the School) and The Blue Coat School charity. They meet at least four times a year as a full Board. The work of implementing most of their policies is carried out by members of six subcommittees: Finance & Estates; Awards; Safeguarding and Health & Safety; Teaching, Learning & Curriculum; Governance & HR; 1722 (300 years Centenary celebrations). The minutes of these sub-committee meetings are reviewed at full Board meetings. The Bursar, in their capacity of Clerk to the Governors, is responsible for coordinating the work of the Governors and their committees, for the preparation of papers and management accounts and for the review of matters arising.

New Governors are appointed by the existing Board of Governors. Potential new Co-optative Governors are identified by the Governors. A sub-committee is selected from existing members of the Board by reference to their availability, suitability and range of experience. Having identified the gaps in experience to be filled, the Appointments sub-committee then undertakes an appropriate interview process to select new Governors from the list of possible candidates. New co-optative Governors are invited to join up to two sub-committees most relevant to their experience and having regard to the existing number of members on each sub-committee.

Induction and Training

The induction process for Governors involves briefing as necessary with copies of previous sub-committee and committee minutes relevant to their specialisms. All Governors are particularly encouraged to attend various school functions and to meet members of the Senior Leadership Team, in order to be able to understand further the nature of the School’s business. An appropriate level of instruction is provided for both new and existing Governors to update their knowledge and place them in a position where they could sensibly identify their powers and responsibilities. From time to time, Governors go on formal training courses that the School and that individual Governors identify are required for that Governor to be able to discharge his/her duty.

All trustees give of their time freely, and no remuneration was paid in the year. Travel expenses of £868.95 were paid to four Governors during the year. One Ex-Officio Governor benefited from a Foundation award commencing September 2016, which was assessed and awarded upon its own merits. The Governor concerned is not a member of the Finance & Estates or Awards sub-committee. Professional advice was taken on the matter at the time of the award and it was confirmed that the making of the award was appropriate in the circumstances.

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Key management personnel

The Governors consider that they, together with the Head, the Bursar, the Head of Pre-Prep and the Deputy Heads (Senior Leadership Team) comprise the Key Management Personnel (see note 14 to the accounts). The Governors give of their time freely and the pay and remuneration of the Head and senior staff is set by the Finance & Estates Committee and is kept under annual review. A number of criteria are used in setting pay:

Organisational management

The Governors determine the general policy of the School. The day to day running of the School is delegated to the Head, supported by senior staff. The Head undertakes the key leadership role, overseeing the educational, pastoral and administrative functions in consultation with the senior staff. The day to day administration of the School is undertaken in line with the policies and procedures approved by the Governors, which provide for significant expenditure decisions and major capital projects to be referred to the Governors for prior approval.

The Head, the Bursar and other senior staff are invited to attend Governors’ meetings.

Other relationships

The Head is a member of IAPS, which exists to share expertise, knowledge and experience across the independent preparatory school sector. The Bursar is a member of the ISBA, which provides professional development, technical support and invaluable reference material.

Other key parties supporting the School include the Independent Schools’ Council (ISC) and the Association of Governing Bodies of Independent Schools (AGBIS).

BCS Enterprises is a wholly owned subsidiary undertaking of The Blue Coat School Limited. It is managed by the Governors of the School and its purpose is to generate surplus funds to reinvest in the School.

PUBLIC BENEFIT

The Governing Body have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011. The main activities to further the charity’s purposes for public benefit include:

Community Link programme

The Community Link programme seeks to widen access to our educational resources, by bringing independent and state school communities together.

This year, we were not able to make our facilities available from 20th March 2020 due to the national lockdown. However, prior to the national lockdown, we made the following facilities and coaching available, at no charge, to benefit pupils attending local state schools:

Community access

We all see The Blue Coat School as part of a wider community, and where we can assist the community whilst advancing the education of our pupils we are delighted to do so. Various Sports and Music Camps use the School during school holidays for sports and activities holiday camps. Our outreach programme has included opportunities for local schools to access our facilities at no charge.

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

OUR AIMS

The object of the School is the provision and conduct, in or near the City of Birmingham, of a day school for boys and girls. Within this object, the School has various permanent endowments and restricted Trust Funds held for special purposes in connection with the development of the School’s facilities and for Foundations, scholarships, bursaries, prizes and other educational purposes. The School provides education to boys and girls from the ages of 2 -11 years in three departments: Buttons Nursery (2-3 years old); Pre-Prep (3-7 years old); and Prep (7-11 years old).

It is policy for all departments to attain the highest academic levels, commensurate with a pupil’s ability, as well as providing a co-curricular programme which aims to broaden a pupil’s interest and self-confidence. Instruction in the doctrines of the Church of England is given in the School and religious studies encompass education in the tenets of major world faiths.

OUR OBJECTIVES

Our objectives are set to reflect our educational aims and the ethos of the School. It is important to us that we maintain and enhance the academic success of the School.

The Governors 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. In particular, the Governors have considered how planned activities will contribute to the aims and objectives set.

The principal objectives for the coming year are:

  1. To continue to make first-class provision for the Early Years (from age three upwards), introducing our youngest children to their educational life in such a way as to allow them to flourish fully as human beings in an ever-changing world.

  2. To maintain the current high standards of academic achievement indicated by senior school entrance exam results at 11-plus level and other external measures.

  3. To recruit and retain the best teaching and support staff to assist in the continued development and promotion of the School as a leading provider of preparatory education not only locally but nationally.

  4. To develop the all-round curricular and co-curricular provision to ensure excellence in all areas; academic, music, sport and performing arts.

  5. To widen access to the school through the continued provision of means-tested bursaries.

  6. To enhance links with the local community and to encourage the community to access the school’s facilities.

  7. To prepare, in conjunction with the Headmaster, a detailed strategic plan incorporating a five-year financial model to assist in the development, financial management and control of the School.

The Governors are responsible for setting a strategy for achieving the objectives they have set. The focus of our strategy is on the development of our pupils, their continued high levels of academic and co-curricular achievement and on measures to further widen access to the education the School provides. In taking forward our strategy we:

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

OUR ETHOS

Our ethos is to be a caring Christian School serving our local community and society.

Our School welcomes pupils from all backgrounds. To admit a prospective pupil, we need to be satisfied that our School will be able to educate and develop that pupil to the best of their potential and in line with the general standards achieved by their peers. Entrance assessments are undertaken to satisfy ourselves and parents that potential pupils can cope with the pace of learning and benefit from the education we provide. An individual’s economic status, gender, race, religion or disability do not form part of our assessment process.

We are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation. We will make reasonable adjustments to meet the needs of staff or pupils who are or who become disabled.

Our School is committed to safeguarding and promoting the welfare of our pupils and expects all staff and volunteers to share this commitment.

SIGNIFICANT ACTIVITIES

Academic achievements

The 2019-20 academic year was another successful year for the School – continuing to deliver sound academic results whilst investing in infrastructure to ensure the continued provision of first-class facilities.

In addition to the high quality education the School provides for its pupils, it continues to offer an extensive programme of outdoor and co-curricular activities. Prior to the national lockdown and school closure for normal operations on 23rd March 2020, several trips to local attractions or places of interest and enrichment days in school ensured that the pupils received a well-balanced and rewarding educational experience.

COVID-19 global pandemic

Following the national lockdown and enforced school closure with effect from 23rd March 2020, the school moved to a distance learning programme to ensure continuity of education for the children. During the two weeks at the end of the Lent term, the children were provided with packs of work to complete at home. During the first half of the Trinity term children in Reception and Years 1 – 6 were provided with online lessons in most subjects through Google classrooms and assemblies were also delivered for the children online. Their work was marked by their teachers and feedback was provided. Children in Transition and Buttons Nursery were provided with daily suggested activities and worksheets where appropriate. Throughout this period, the school remained open to all key worker children and vulnerable children. The school also remained open for these children during the Easter holiday period, other than Good Friday and Easter Monday at no charge to parents.

Parents of children in Transition and Buttons Nursery were not charged fees for the Trinity term until school reopened for Transition children with effect from 1 June 2020. Transition parents were then charged a reduced pro rata rate for the remainder of the term depending on when their child returned to school. Work was provided for those children whose parents chose not to send their child(ren) back to school.

Parents of children in Reception, Year 1 – 6 were charged fees at a reduced rate for the Trinity term. A phased return to school commenced on 1 June 2020 with children in Reception, Year 1 and Year 6 (together with Transition children) returning to school if their parents chose to send them. Children in Year 5 could return to school on Wednesday 17 June and children in Years 2, 4 and 6 could return to school on Monday 22 June for the final three weeks of term.

The resultant loss of gross fee income was £800,320. This represented nearly 11% of gross fee income. Use of Government support schemes and strict financial controls reduced the financial impact.

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Sporting activities

The School continues to develop its sporting provision and ensures that children participate in a range of sports and learn different skills including athletics, chess, cricket, dance, football, gymnastics, hockey, judo, netball, rugby, and swimming.

The School’s sports facilities continued to be used by local primary schools for swimming lessons and for outreach programmes and sporting festivals until the national lockdown.

Music and drama

Music opportunities for all age groups include individual music lessons, choirs, ensembles and an orchestra. Children in all age-groups participate in a wide variety of drama activities.

The Friends of The Blue Coat School

The Friends of The Blue Coat School (Parents’ Association) have again organised a wide-ranging programme of events, designed to foster a sense of community within the School. These have been successful in raising funds both for the School and for local charities. These were curtailed for the 2019-20 year by the COVID-19 pandemic.

SOCIAL INVESTMENT

In order to fulfil our aims and objectives of providing an education for boys and girls in or near the City of Birmingham, the School provides bursary and scholarship awards as follows:

Bursaries

The Governors’ grant-making policy is, in each accounting year, to set aside part of the Charity’s investment income, to maintain Foundation Places. This helps children of merit and good character for whom a funded education would be beneficial but could not be afforded without assistance.

In 2019-20 the School provided assistance to 26 of our pupils of which 8 pupils benefited from a full remission of fees. The Foundation Awards also assist in funding additional costs such as school trips, co-curricular activities, uniform and other similar expenses.

Scholarships

In addition, the School awards scholarships to pupils based on either their educational or musical merit and potential.

The Governors view our bursary and scholarship awards and our outreach programme as important in widening access to the education our school provides. In developing our plans for this programme, we work closely with the Heads of the schools in our community, ensuring the positive contribution to our shared educational aims continues. Maintaining and, where necessary, developing the fabric and facilities of the School are central to our strategy.

ACHIEVEMENTS AND PERFORMANCE

It had been expected that the school would have a further inspection from the independent Schools Inspectorate (ISI) during the Trinity term 2020 as part of the cycle of ISI inspections but all inspections were suspended because of the COVID-19 pandemic.

Independent Schools Inspectorate (ISI) Inspection May 2017

ISI conducted a Focused Compliance Inspection (FCI) of the School and an Educational Quality Inspection (EQI) of the School in May 2017. The FCI took place on 3 and 4 May. The School was found to be fully compliant and no further actions were required. The EQI inspection took place on 4 and 5 May. This inspection related to the quality of the pupils’ academic and other achievements and to the quality of the pupils’ personal development. The school was found to be excellent in every aspect of these inspection judgements - the highest-grade

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

judgement for these inspections. As the school had been judged to be excellent in every respect, the report did not make recommendations, but it did make two suggestions for consideration, both of which dovetailed with the school’s own priorities.

Pupil numbers

Our educational activities are carried out through three departments: Buttons Nursery (2-3 years old); Pre-Prep (3-7 years old); and Prep (7-11 years old). At the year-end, Prep had 352 pupils, Pre-Prep had 241 pupils and Buttons had 32 pupils (not all of whom were full time).

FUNDRAISING

There are no material fundraising activities at the School which require disclosure under S162A of the Charities Act 2011.

FINANCIAL REVIEW

The School’s key financial objective is to ensure financial stability and continued solvency year on year so that it can pursue its charitable aims and objectives. The Governors have followed SORP (FRS 102) in preparing these financial statements and the statement of financial affairs (SOFA), balance sheet and notes are set out within.

The Schools results for the year show a surplus before investment gains of £21,305 (2019-£243,307). The principal source of funds remains school fees of £6,208,722 (2019-£6,381,240) which represented 85.1% (2018/19- 88.0%) of the total income of £7,292,162 (2019-£7,244,788).

Unrealised gains on our investments amounted to £342,604 (2019- £1,165,241).

The School’s funds increased by £363,909 (2019-£1,408,548) before movements on the defined benefit pension scheme.

The investments are primarily used to fund the bursary and scholarship awards and other social investment.

INVESTMENTS

Investment activities are managed in line with the requirements of the Trustee Act 2000. The Governors have appointed CCLA as investment manager.

The main investment objectives of the charity are:

The income return on the portfolio was 2.95% compared to 3.17% in the previous year.

KEY RISKS AND UNCERTAINTIES

The Governors and Senior Leadership Team periodically review the major risks facing the charity. Risk registers are maintained and updated at least annually. Risks are considered under the headings of strategic, operational, financial and legal / regulatory.

During 2019-20, the school faced the additional financial risks from the COVID-19 pandemic with the potential for loss of income and reduction of pupil numbers. Due to the excellent online provision, the pupil numbers remained constant and fee income remained high, although reduced from normal expectations due to the lack of income from Buttons Nursery and Transition pupils and the fee reduction for all other pupils. Some of the losses of income were offset by careful management of the finances including the furloughing of non-essential staff, and through streamlining of staffing requirements and curtailing all non-essential spends.

Page 8

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Strategic risks include the School not being seen as a positive, modern organisation and it failing to provide education services that are attractive to parents and thus being unable to maintain pupil numbers. These are critical to the charity’s aims to provide education and learning opportunities to children in the Birmingham area. These risks are managed by ensuring that the School provides an excellent, first-class education to every child; adopting proactive communication and PR strategies; through Board scrutiny of activities; robust financial controls; and recruitment and retention of high quality teachers and support staff.

Financial risks include failure to meet income targets, particularly from fee income and investments. School fee increases are carefully considered in conjunction with the School’s strategic plans, the budget process and wider economic considerations. A conservative approach is taken to estimating the contribution from external sources and non-core activities. In general, financial risks are managed through regular monitoring and review of budgets during the financial year.

Health and Safety risks include fire safety, pool safety and failure to comply with regulatory requirements relating to asbestos management and water management systems. A robust compliance system has been implemented and all of these risks are subject to close monitoring by the management team and the H&S Sub-Committee. A comprehensive Risk Assessment was devised, existing policies were amended and additional policies were written to ensure that the risks associated with the COVID-19 pandemic were managed. These were all regularly reviewed as Government advice and guidance was updated.

The Governors are satisfied that appropriate actions have been taken to control and mitigate the impact of risks where possible. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

FUTURE PLANS

In 2022 the School is 300 years old. This is a significant milestone for the organisation and one which the Governors and Senior Leadership Team want to mark. Ideas are in their infancy, but projects, plans and the associated funding are at the forefront of the Governors’ long-term objectives.

PENSION LIABILITY

The Governors recognise the liability existing in the Pensions Trust pension scheme for non-teaching staff. The Governors are satisfied that existing cash flows are sufficient to meet any anticipated increases in costs. Pension costs have been reported within the accounts in accordance with accounting standard FRS 102.

RESERVES

The Governors regularly review the finances, budgets and spend against budget and undertake a termly cash flow analysis as part of their effective stewardship of the School.

The total funds held by the School at the end of the reporting period of £19,401,711 included £1,524,858 unrestricted general reserves and £4,443,873 designated funds plus a permanent endowment of £13,416,399.

The Governors designate unrestricted funds to fund future specific projects. The Governors are planning to invest substantial sums into new facilities and upgrades in the next five years, with a view to further improving the facilities. The Governors consider that, given the strength of the charity’s balance sheet, the stable cash flow from strong student numbers, the ongoing popularity of our School and the available funds, it will not be necessary to seek external funding for these projects.

The Governors aim to ensure that the School has sufficient resources available to support the working capital requirements of the core activities of the School in unforeseen circumstances, giving sufficient time to allow financial policy to adapt to any new circumstances. These working capital reserves equate to approximately one term’s total expenditure, £2 million.

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Free reserves at the 31 August 2020 being unrestricted funds less that representing fixed assets amounted to £2,800,796 which is in excess of the stated policy.

Restricted funds of £16,581 are held for the benefit of the children for supporting learning needs and extracurricular activities as set out in the detailed accounts within this report.

There is a continuing programme of refurbishment, development and investment to maintain excellent teaching facilities for our pupils. The closing net book value of our tangible assets, property, plant and equipment was £6,440,898.

CHARITY GOVERNANCE CODE

The Governors are aware of the new charity governance code issued in July 2017. A review will be undertaken of the guidance requirements in order to ensure that the charity is working in line with the code, in all ways where it is practical to do so.

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Governors (who are also directors of The Blue Coat School Birmingham Limited for the purposes of company law) are responsible for preparing the Governors' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the Group and of the incoming resources and application of resources, including the income and expenditure, of the charitable Group for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISCLOSURE OF INFORMATION TO AUDITOR

Each of the persons who are Governors at the time when the Governors' report is approved has confirmed that:

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmitod by guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 AUDITORS Crowe U.K. LLP ha$ indicated its willingness to be reappointed as statutory auditor. incorpopting the Group $lr8legic report. was approved by the Governors, in their capacity as irectors and si n their behalf This rep compan Ingleton LLB an Chai Dale.. 28 January 2021 Page 11

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

Opinion

We have audited the financial statements of The Blue Coat School Birmingham Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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:

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (CONTINUED)

Other information

The Governors are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinion 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

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

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

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (CONTINUED)

Responsibilities of trustees

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

In preparing the financial statements, the Governors are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Drew (Senior statutory auditor) for and on behalf of

Crowe U.K. LLP Statutory Auditor Black Country House

Rounds Green Road Oldbury West Midlands B69 2DG

Date:

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Note
Income and endowments from:
Donations and legacies
4
Charitable activities:
School fees
Ancillary trading income
Trading activities
7
Investments
8
Other income
9
Total income and endowments
Expenditure on:
Raising funds:
Financing costs
10
Trading activities
11
Charitable activities:
Education and grant making
12
Total expenditure
Net income before investment
gains
Net gains on investments
Net movement in funds before
other recognised gains/(losses)
Other recognised gains/(losses):
Actuarial (losses)/gains on defined
benefit pension schemes
30
Net movement in funds		 Unrestricted
funds
2020
£
9,720
6,208,722
275,559
90,602
439,390
246,293
7,270,286
4,969
84,058
7,039,772
7,128,799
141,487
76,564
218,051
(636)
217,415		 Restricted
funds
2020
£
21,876
-
-
-
-
-
21,876
-
-
21,538
21,538
338
-
338
-
338		 Endowment
funds
2020
£
-
-
-
-
-
-
-
-
-
120,520
120,520
(120,520)
266,040
145,520
-
145,520		 Total
funds
2020
£
31,596
6,208,722
275,559
90,602
439,390
246,293
7,292,162
4,969
84,058
7,181,830
7,270,857
21,305
342,604
363,909
(636)
363,273		 Total
funds
2019
£
19,936
6,381,240
230,632
173,359
439,621
-
7,244,788
3,971
158,053
6,839,457
7,001,481
243,307
1,165,241
1,408,548
16,825
1,425,373

Page 15

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
funds
2020
Restricted
funds
2020
Endowment
funds
2020
Note
£
£
£
Reconciliation of funds:
Total funds brought forward
5,751,316
16,243
13,270,879
Net movement in funds
217,415
338
145,520
Total funds carried forward
5,968,731
16,581
13,416,399		 Total
funds
2020
£
19,038,438
363,273
19,401,711		 Total
funds
2019
£
17,613,065
1,425,373
19,038,438

The notes on pages 22 to 53 form part of these financial statements.

Page 16

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee) REGISTERED NUMBER: 08502615

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2020

Note
Fixed assets
Tangible assets
16
Investments
18
Investment property
17
Current assets
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one
year
21
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
22
Total net assets
Charity funds
Endowment funds
25
Restricted funds
25
Unrestricted funds
25
Total funds		 175,279
1,426,842
1,602,121
(1,195,619)		 2020
£
6,440,898
11,193,752
1,415,000
19,049,650
406,502
19,456,152
(54,441)
19,401,711
13,416,399
16,581
5,968,731
19,401,711		 188,942
1,334,279
1,523,221
(1,438,560)		 2019
£
6,755,866
10,851,148
1,415,000
19,022,014
84,661
19,106,675
(68,237)
19,038,438
13,270,879
16,243
5,751,316
19,038,438

Page 17

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED IA Company limited by guarantee) REGISTERED NUMBER: 08502615 CONSOUDATED 8ALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2020 The Govemors acknowledge their responsibilities for comptying with th8 requirements of the Act with respect to accounting records and preparation of financial stalemenls. The fina by: ial statements were approved an uthorised for is5U8 by the Governors and signed on their behalf Singleton LLB Date.. 28 January 2021 The notes on pages 22 to 53 fofm part of these financial statements. Page 18

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee) REGISTERED NUMBER: 08502615

COMPANY BALANCE SHEET AS AT 31 AUGUST 2020

Note
Fixed assets
Tangible assets
16
Investments
18
Investment property
17
Current assets
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one
year
21
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
22
Total net assets
Charity funds
Endowment funds
25
Restricted funds
25
Unrestricted funds
25
Total funds		 180,739
1,421,282
1,602,021
(1,195,619)		 2020
£
6,440,898
11,193,852
1,415,000
19,049,750
406,402
19,456,152
(54,441)
19,401,711
13,416,399
16,581
5,968,731
19,401,711		 192,570
1,330,551
1,523,121
(1,438,560)		 2019
£
6,755,866
10,851,248
1,415,000
19,022,114
84,561
19,106,675
(68,237)
19,038,438
13,270,879
16,243
5,751,316
19,038,438

Page 19

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED IA company Ilmtted by guarantee} REGISTERED NUMBER: 08502615 COMPANY BALANCE SHEET ICONTINUEDI AS AT 31 AUGUST 2020 Th8 Blue Coat School Bimiingham Limited has taken the exemption from p￿SentIng a parent Statement of Financial Activities incorporating Income and Expenditu￿ Accounts under section 408 of the Companies Act 2006. The net income for the financial year dealt with in the financial statements of the parent charitable company wa$ £363,27312019-£1,425,373). The Govemors acknowledge their ￿spOnSIbl1111eS for complying with the requirements of the Act with respect to accounting ￿cOrdS and preparation of financial slatemenls. l statements were approved and aulhorised for issue by the Governorg 8nd signed on their behalf The finan n9leton Dale= 28 January 2021 The notes on pages 22 to 53 forn part of these financial ststements. Page 20

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Note
Cash flows from operating activities
Net cash used in operating activities
27
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Proceeds from sale of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
28		 2020
£
(236,004)
439,390
(110,823)
-
328,567
92,563
1,334,279
1,426,842		 2019
£
(378,028)
439,621
(1,342,470)
1,000,000
97,151
(280,877)
1,615,156
1,334,279

The notes on pages 22 to 53 form part of these financial statements

Page 21

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. General information

The company is a company limited by guarantee (registered number 08502615), which is incorporated and registered in England and Wales. Its charity registration number is 1152244. The registered office and principal place of business is The Blue Coat School Birmingham, Somerset Road, Edgbaston, Birmingham, B17 0HR.

The principal activity is to provide a day school for boys and girls near the City of Birmingham.

In June 2018 the Charity Commission issued a Direction linking The Blue Coat School Birmingham Limited with the charity The Blue Coat School Birmingham (charity registration number 1152244-1). This charity holds the charitable groups endowment assets.

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

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Blue Coat School Birmingham Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Page 22

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.3 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 Group 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 Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds represent those assets which must be held permanently by the charity, principally investments and deposits. Income arising on the endowment funds can be used in accordance with the object of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund. The endowment funds are all held by the subsidiary charity The Blue Coat School Birmingham.

Page 23

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.4 Income

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Donations and legacies

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this required a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably, and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Fees and similar income

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the school from its unrestricted funds. Where income is received in advance it is treated as deferred income and included within creditors.

Income from trading activities

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying services in order to raise funds and is recognised when entitlement has occurred.

Investment income

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right to receive payment is established.

Page 24

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.5 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Charitable expenditure comprises those costs incurred by the charitable group in the delivery of activities and services for its beneficiaries.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of The Blue Coat School Birmingham Limited and its subsidiaries, this includes audit fees.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

2.6 Government grants

Government grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Depreciation is not charged on freehold land.

Page 25

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.8 Investment property

Investment properties are measured at fair value at each reporting date with changes in fair value recognised in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities. No depreciation is charged on investments properties in accordance with the Charities SORP.

2.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.10 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

2.11 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.12 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.

2.13 Liabilities and provisions

Liabilities are recognised when there is an 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 Company 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 in the Consolidated statement of financial activities as a finance cost.

Page 26

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.14 Financial instruments

The Group 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 subsequently measured at amortised cost using the effective interest method.

2.15 Taxation

The Blue Coat School Birmingham Limited and The Blue Coat School Birmingham is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Blue Coat School Birmingham Limited and The Blue Coat School Birmingham is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. BCS Enterprises Limited is subject to corporation tax.

Value added tax is not recoverable by the charity and as such is included in the relevant costs in the Statement of financial activities and fixed assets.

2.16 Pensions

Retirement benefits to teachers employed by the school are provided by the Teachers' Pension Scheme ('TPS'). This is a defined benefit scheme. The TPS is an unfunded scheme and contributions are calculated so as to spread the costs of pensions over employees' working lives with the school in such a way that the pension costs is substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in note 30, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

Retirement benefits for non-teachers are provided by a defined contribution scheme administered by The Pensions Trust. Payments to the scheme are charged to the Statement of financial activities in the year incurred.

Contributions are made to personal pension plans of certain employees. Payments to these plans are charges to the Statement of financial activities in the year incurred.

Page 27

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

3. Critical accounting estimates and areas of judgement

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

Critical accounting estimates and assumptions:

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

In preparing these financial statement, the Governors have made the following judgments:

Investment properties

Investment properties are valued on the basis of market value of the freehold interest with vacant possession at the year end.

Recoverability of trade debtors

Trade and other receivables are recognised to the extent that they are judged recoverable. Management reviews are performed to estimate the level of resources required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.

Management makes allowance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyse historical bad debts, current economic trends and changes in payment terms when making a judgment to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the Statement of financial activities.

4. Income from donations and legacies

Unrestricted
funds
2020
£
Donations
9,720
Total 2020
9,720
Total 2019
9,233		 Restricted
funds
2020
£
21,876
21,876
10,703		 Total
funds
2020
£
31,596
31,596
19,936		 Total
funds
2019
£
19,936
19,936

Page 28

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

5. Charitable activities - School fees

Gross tuition fees
Less: Awards, scholarships and bursaries from unrestricted funds
Less: Fee discounts		 2020
£
6,736,426
(387,805)
(139,899)
6,208,722		 2019
£
6,904,824
(368,156)
(155,428)
6,381,240

Awards, scholarships and bursaries were paid to 59 pupils (2019 - 52 pupils). Within this means tested bursaries totalling £313,279 were paid to 32 pupils (2019 - £291,568 to 29 pupils).

The total income from school fees is unrestricted in both years.

6. Charitable activities - Other ancillary trading income

Extra-curricular activities
Registration fees
Fees in lieu of notice
SEN income
Holiday clubs
School trips
Other income		 2020
£
136,695
8,500
7,722
9,125
2,179
18,043
93,295
275,559		 2019
£
163,694
12,310
4,238
750
12,636
-
37,004
230,632

The total ancillary trading income is unrestricted in both years.

Page 29

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

7. Income from other trading activities

Income from non charitable trading activities

Unrestricted
funds
2020
£
BSC Enterprises Limited (note 19)
90,602
Total 2020
90,602
Total 2019
173,359
8.
Investment income
Unrestricted
funds
2020
£
Rental income
104,658
Dividend income
329,300
Deposit account interest
5,432
Total 2020
439,390
Total 2019
439,621
9.
Other incoming resources
Unrestricted
funds
2020
£
Government grant
246,293		 Total
funds
2020
£
90,602
90,602
173,359
Total
funds
2020
£
104,658
329,300
5,432
439,390
439,621
Total
funds
2020
£
246,293		 Total
funds
2019
£
173,359
173,359
Total
funds
2019
£
86,363
345,502
7,756
439,621
Total
funds
2019
£
-

The government grant received during the year related to the Coronavirus Job Retention Scheme.

Page 30

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

10. Expenditure on raising funds - Financing costs

Unrestricted
funds
2020
£
Bad debt costs
1,629
Property management fees
3,340
Total 2020
4,969
Total 2019
3,971		 Total
funds
2020
£
1,629
3,340
4,969
3,971		 Total
funds
2019
£
441
3,530
3,971

11. Expenditure on raising funds - Trading activities

Unrestricted
funds
2020
£
Staff costs
73,598
Other costs
10,460
Total 2020
84,058
Total 2019
158,053		 Total
funds
2020
£
73,598
10,460
84,058
158,053		 Total
funds
2019
£
127,516
30,537
158,053

Page 31

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2020
£
Teaching
4,299,620
Catering
395,446
Premises
1,327,459
Support and governance
1,017,247
Total 2020
7,039,772
Total 2019
6,719,299		 Restricted
funds
2020
£
20,938
-
600
-
21,538
10,334		 Endowment
funds
2020
£
120,520
-
-
-
120,520
109,824		 Total
funds
2020
£
4,441,078
395,446
1,328,059
1,017,247
7,181,830
6,839,457		 Total
funds
2019
£
4,191,193
488,463
1,265,897
893,904
6,839,457

Summary by expenditure type

Teaching
Catering
Premises
Support and governance
Total 2020
Total 2019		 Staff costs
2020
Depreciation
2020
£
£
3,871,803
244,331
-
-
343,830
144,560
660,236
36,900
4,875,869
425,791
4,459,345
369,778		 Other costs
2020
£
324,944
395,446
839,669
320,111
1,880,170
2,010,334		 Total
funds
2020
£
4,441,078
395,446
1,328,059
1,017,247
7,181,830
6,839,457		 Total
funds
2019
£
4,191,193
488,463
1,265,897
893,904
6,839,457

Page 32

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13. Auditor's remuneration

2020 2019
£ £
Fees payable to the Company's auditor for the audit of the Company's
annual accounts 14,000 13,500
Fees payable to the Company's auditor in respect of:
Accountancy services 2,900 3,000

14. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 Group
2020
£
3,940,659
358,349
650,459
4,949,467		 Group
2019
£
3,778,282
346,562
462,017
4,586,861

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

Teaching staff
Administrative/support staff		 Group
2020
No.
73
70
143		 Group
2019
No.
70
69
139

Page 33

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14. Staff costs (continued)

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

Group Group
2020 2019
No. No.
In the band £60,001 - £70,000 2 2
In the band £80,001 - £90,000 - 1
In the band £90,001 - £100,000 1 -
In the band £120,001 - £130,000 - 1
In the band £170,001 - £180,000
1 -

The total amount of employee benefits received by key management personnel is £848,170 to 9 staff members (2019 - £564,012, to 6 staff members) .

15. Governors' remuneration and expenses

During the year, no Governors received any remuneration or other benefits (2019 - £NIL) .

During the year ended 31 August 2020, expenses totalling £ 869 were reimbursed or paid directly to 4 Governors (2019 - £3,268 to 6 Governors) . Expenses related to courses, accommodation and travel expenses.

Page 34

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. Tangible fixed assets

Group and Company

Cost or valuation
At 1 September 2019
Additions
Disposals
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
On disposals
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Freehold
school
premises
£
8,819,936
36,732
-
8,856,668
2,399,473
253,636
-
2,653,109
6,203,559
6,420,463		 Fixtures and
equipment
£
238,047
7,073
(72,089)
173,031
199,303
14,346
(72,089)
141,560
31,471
38,744		 Computer
equipment
£
1,062,053
67,018
(360,540)
768,531
790,050
151,645
(360,540)
581,155
187,376
272,003		 School
minibus
£
57,965
-
(27,144)
30,821
33,309
6,164
(27,144)
12,329
18,492
24,656		 Total
£
10,178,001
110,823
(459,773)
9,829,051
3,422,135
425,791
(459,773)
3,388,153
6,440,898
6,755,866

The costs of freehold school premises includes both freehold land and buildings. The school records do not provide a reliable split of freehold land and buildings and the Governors do not consider that the cost involved in obtaining such information is justifiable for the benefit gained.

Page 35

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

17. Investment property Group

Valuation
At 1 September 2019
At 31 August 2020
Comprising:
416 Birmingham Road, Wylde Green
Properties acquired by gift
256 Harbourne Road, Edgbaston		 2020
£
435,000
130,000
850,000
1,415,000		 Freehold
investment
property
£
1,415,000
1,415,000
2019
£
435,000
130,000
850,000
1,415,000

The investment property consists of buildings held for investment purposes and are not used in the School's own activities, both residential and industrial property are held and are let out on the open market.

All properties were revalued by Burley Browne Chartered Surveyors in November 2019.

Page 36

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18. Fixed asset investments

Group
Market value
At 1 September 2019
Revaluations
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019
Company
Market value
At 1 September 2019
Revaluations
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Investment
in
subsidiary
company
£
100
-
100
100
100		 Investments
and
deposits
£
10,851,148
342,604
11,193,752
11,193,752
10,851,148		 Investments
and
deposits
£
10,851,148
342,604
11,193,752
11,193,752
10,851,148
Total
£
10,851,248
342,604
11,193,852
11,193,852
10,851,248

Page 37

(A company limited by guarantee)

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Investments and deposits comprise:

Investment Fund of the Central Board of Finance of the Church of England,
shares of £1 each
Charities Official Investment Fund - Accumulation units
Charities Official Investment Fund - Income shares		 2020
£
-
-
11,193,752
11,193,752		 2019
£
5,598,990
179,315
5,072,843
10,851,148

19. Principal subsidiary - BCS Enterprises Limited

The charitable company owns 100% of the share capital of BCS Enterprises Limited (Company registration number 09109064), incorporated in England. The registered address of the Company is The Blue Coat School Birmingham, Somerset Road, Edgbaston, Birmingham, B17 0HR.

The Company uses the facilities of The Blue Coat School to generate revenue.

It's trading results for the period, as extracted from audited accounts, are summarised below:

Turnover
Cost of sales
Gross profit
Administration
Profit for the year
Gift aid donation to parent charity
Retained in subsidiary		 2020
£
90,602
(33,847)
56,755
(50,211)
6,544
(6,544)
-		 2019
£
173,359
(22,166)
151,193
(135,888)
15,305
(15,305)
-

The net assets of BCS Enterprises Limited at 31 August 2020 amounted to £100 (2019 – net assets of £100).

At the year end BCS Enterprises Limited owed The Blue Coat School £5,460 (2019 - £31,178).

Page 38

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

20. Debtors

Trade debtors
Amounts owed by group undertakings
Other debtors and accrued income
Prepayments		 Group
2020
£
15,518
-
91,644
68,117
175,279		 Group
2019
£
65,240
-
64,115
59,587
188,942		 Company
2020
£
15,518
5,460
91,644
68,117
180,739		 Company
2019
£
39,060
31,178
64,115
58,217
192,570

An impairment loss of £11,511 (2019 - £11,511) was recognised against fee debtors.

21. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Fees in advance (note 23)
Deposits (note 24)
Pension liability
Accruals and other creditors		 Group
2020
£
187,228
95,975
537,865
180,150
15,161
179,240
1,195,619		 Group
2019
£
396,945
85,485
677,778
177,650
14,720
85,982
1,438,560		 Company
2020
£
187,228
95,975
537,865
180,150
15,161
179,240
1,195,619		 Company
2019
£
396,945
85,485
677,778
177,650
14,720
85,982
1,438,560

22. Creditors: Amounts falling due after more than one year

Group Group Company Company
2020 2019 2020 2019
£ £ £ £
Pension liability 54,441 68,237 54,441 68,237

Page 39

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

23.
Fees in advance
Movement of fees in advance:
Balance at 1 September 2019
New advance fees received
Amounts utilised in payments
Balance as at 31 August 2020
24.
Fee deposits
Movement of fee deposits:
Balance at 1 September 2019
New deposits received
Deposits utilised
Balance as at 31 August 2020		 2020
£
677,778
537,865
(677,778)
537,865
2020
£
177,650
34,800
(32,300)
180,150		 2019
£
688,100
677,778
(688,100)
677,778
2019
£
169,500
34,800
(26,650)
177,650

Page 40

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

25. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Extraordinary
repair fund
Loopylugs &
Barbara
Morrison Trust
School nursery
and four
classroom
block
New build fund
Foundation fund
Old Scholar
Donation
General funds
General funds
Total
Unrestricted
funds
Endowment
funds
Permanent
endowment		 Balance at 1
September
2019
£
1,174,311
25,803
2,039,783
725,000
86,567
1,500
4,052,964
1,698,352
5,751,316
13,270,879		 Income
£
-
9,000
-
-
-
-
9,000
7,261,286
7,270,286
-		 Expenditure
£
-
(25,803)
-
-
(314,353)
(174)
(340,330)
(6,788,469)
(7,128,799)
(120,520)		 Transfers
in/out
£
120,000
-
120,000
120,000
362,239
-
722,239
(722,239)
-
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
75,928
75,928
266,040		 Balance at
31 August
2020
£
1,294,311
9,000
2,159,783
845,000
134,453
1,326
4,443,873
1,524,858
5,968,731
13,416,399

Page 41

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

25. Statement of funds (continued)

Statement of funds - current year (continued)

Restricted
funds
Diana Willis
memorial prize
Limoges Trust
Chapel fund
John Avins Trust
Association of
Friends
Minibus
Grand piano
Sir John Saville
Trust
Reginal Farrar
Fund
Association of
Friends BCS
King Fund
Hatfield Fund
Total of funds		 Balance at 1
September
2019
£
165
19
1,214
875
1,750
2,000
8,000
506
1,714
-
-
16,243
19,038,438		 Income
£
-
2,000
-
2,000
-
-
4,000
-
13,766
50
60
21,876
7,292,162		 Expenditure
£
-
-
-
-
(1,750)
(600)
(3,708)
-
(15,480)
-
-
(21,538)
(7,270,857)		 Transfers
in/out
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
-
-
-
-
341,968		 Balance at
31 August
2020
£
165
2,019
1,214
2,875
-
1,400
8,292
506
-
50
60
16,581
19,401,711

Page 42

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

25. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
Extraordinary
repair fund
Loopylugs &
Barbara
Morrison Trust
School nursery
and four
classroom
block
New build fund
Foundation fund
Old Scholar
Donation
General funds
General funds
Total
Unrestricted
funds
Endowment
funds
Permanent
endowment		 Balance at
1 September
2018
£
1,054,311
18,303
1,919,783
605,000
40,665
-
3,638,062
2,103,276
5,741,338
11,855,853		 Income
£
-
7,500
-
-
-
1,500
9,000
7,225,085
7,234,085
-		 Expenditure
£
-
-
-
-
(291,568)
-
(291,568)
(6,589,755)
(6,881,323)
(109,824)		 Transfers
in/out
£
120,000
-
120,000
120,000
337,470
-
697,470
(1,214,991)
(517,521)
517,521		 Gains/
(Losses)
£
-
-
-
-
-
-
-
174,737
174,737
1,007,329		 Balance at
31 August
2019
£
1,174,311
25,803
2,039,783
725,000
86,567
1,500
4,052,964
1,698,352
5,751,316
13,270,879

Page 43

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

25. Statement of funds (continued)

Statement of funds - prior year (continued)

Restricted
funds
Diana Willis
memorial prize
Limoges Trust
Chapel fund
John Avins Trust
Association of
Friends
Minibus
Grand piano
Sir John Saville
Trust
Reginal Farrar
Fund
Association of
Friends BCS
Total of funds		 Balance at
1 September
2018
£
165
19
1,214
620
4,750
2,600
6,000
506
-
15,874
17,613,065		 Income
£
-
-
-
2,000
-
-
2,000
-
6,703
10,703
7,244,788		 Expenditure
£
-
-
-
(1,745)
(3,000)
(600)
-
-
(4,989)
(10,334)
(7,001,481)		 Transfers
in/out
£
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
-
-
1,182,066		 Balance at
31 August
2019
£
165
19
1,214
875
1,750
2,000
8,000
506
1,714
16,243
19,038,438

Page 44

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

25. Statement of funds - prior year (continued)

FUNDS

Extraordinary repair fund - In accordance with the terms of the charity commission the Governors had established a fund by 1 September 2009 to provide for the extraordinary repair, improvement and rebuilding of the school's property. The Governors have made a transfers of £120,000 (2019 - £120,000) this year to the fund to finance repairs.

Loppylugs and Barbara Morrison Charitable Trust - This donation is available for use at the Headmaster's discretion taking onto account the donors' interests.

School Nursery and Four-Classroom block - Fund set aside by the Governors following the charity commission approval of the use of the £2m of the endowment fund for the development works. This is a capital fund and the future depreciation of the assets constructed will be charged to it. The Governors have made a transfers of £120,000 (2019 - £120,000) this year to the fund.

New Build Fund - The Governors have agreed to set aside a sum of money annually to reflect the use of endowment funds which were expended on the School Nursery and Four Classroom Block. The Governors have made a transfers of £120,000 (2019 - £120,000) this year to the fund.

Foundation fund - Designated - The Governors have agreed to set aside annually a sum equal to not less than 5% of the fee income of the previous financial year. The amount set aside is to be applied in the provision of places at the school for children of merit and good character who are in need of financial assistance. In the current year the amounts set aside totalled £362,239 (2019 - £337,470) and amounts advanced to pupils totalled £313,279 (2019 - £291,568).

Old Scholar Donation - Donation in memory of Mr Ernest Jones to be spent as seen fit.

ENDOWMENT FUNDS

The Permanent endowment fund has to be held by the Blue Coat School Birmingham (Charity number 1152244-1) indefinitely under the Scheme approved by the Charity Commission on 12 March 1986. There is no power to convert the capital into income.

The transfer relates to additions on endowed property.

RESTRICTED FUNDS

Diana Wills memorial prize - This prize fund was set up a former teacher to reward a pupil's reading ability. The fund was to be used to provide one book prize a year.

Limoges Trust - Grants received to further the development of musical drama within the school.

Chapel Fund - Donations provided for the equipping of the School Chapel.

The John Avins Trust - Fund provided for equipment and resources for the benefit of gifted children in need of financial support within the school.

Association of Friends - Minibus - Funds raised by the parents and friends of The Blue Coat School to provide funds to subsidise the lease of a minibus.

King Fund - donation toward the bursaries.

Hatfield fund - donation towards bursaries.

Page 45

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

25. Statement of funds - prior year (continued)

RESTRICTED FUNDS

Grand Piano - Funds provided by the Birmingham Community Foundation and the Loppylugs and Barbara Morrison Charitable Trust to purchase a grand piano. This is a capital fund and the future depreciation of the asset will be charged to it.

Sir John Saville Trust - Funds provided by Mr John Saville towards the continued support of the young people of Birmingham.

The Reginald Farrar Fund - Funds provided by Mr Reginald Farrar towards the advancement of the mathematics department.

Association of Friends - Funds raised by the parents and friends of The Blue Coat School to provide additional equipment, resources and entertainment for the pupils.

Summary of funds - current year

Designated
funds
General funds
Endowment
funds
Restricted funds		 Balance at 1
September
2019
£
4,052,964
1,698,352
13,270,879
16,243
19,038,438		 Income
£
9,000
7,261,286
-
21,876
7,292,162
Income
£
9,000
7,225,085
-
10,703
7,244,788		 Expenditure
£
(340,330)
(6,788,469)
(120,520)
(21,538)
(7,270,857)
Expenditure
£
(291,568)
(6,589,755)
(109,824)
(10,334)
(7,001,481)		 Transfers
in/out
£
722,239
(722,239)
-
-
-
Transfers
in/out
£
697,470
(1,214,991)
517,521
-
-		 Gains/
(Losses)
£
-
75,928
266,040
-
341,968
Gains/
(Losses)
£
-
174,737
1,007,329
-
1,182,066		 Balance at
31 August
2020
£
4,443,873
1,524,858
13,416,399
16,581
19,401,711
Balance at
31 August
2019
£
4,052,964
1,698,352
13,270,879
16,243
Summary of funds - prior year
Designated
funds
General funds
Endowment
funds
Restricted funds		 Balance at
1 September
2018
£
3,638,062
2,103,276
11,855,853
15,874
17,613,065
19,038,438

Page 46

(A company limited by guarantee)

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

26. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2020
£
Tangible fixed assets
3,167,935
Fixed asset investments
2,463,916
Investment property
-
Current assets
1,586,940
Creditors due within one year
(1,195,619)
Creditors due in more than one year
(54,441)
Total
5,968,731
Analysis of net assets between funds - prior period
Unrestricted
funds
2019
£
Tangible fixed assets
3,361,783
Fixed asset investments
2,387,352
Investment property
-
Current assets
1,508,978
Creditors due within one year
(1,438,560)
Creditors due in more than one year
(68,237)
Total
5,751,316		 Restricted
funds
2020
£
1,400
-
-
15,181
-
-
16,581
Restricted
funds
2019
£
2,000
-
-
14,243
-
-
16,243		 Endowment
funds
2020
£
3,271,563
8,729,836
1,415,000
-
-
-
13,416,399
Endowment
funds
2019
£
3,392,083
8,463,796
1,415,000
-
-
-
13,270,879		 Total
funds
2020
£
6,440,898
11,193,752
1,415,000
1,602,121
(1,195,619)
(54,441)
19,401,711
Total
funds
2019
£
6,755,866
10,851,148
1,415,000
1,523,221
(1,438,560)
(68,237)
19,038,438
Analysis of net assets between funds - prior
Tangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Creditors due in more than one year
Total

Page 47

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

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

Net income for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Losses on investments
Dividends, interests and rents from investments
Decrease in debtors
Decrease in creditors
Pension scheme
Net cash used in operating activities
28.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
29.
Analysis of changes in net debt
At 1
September
2019
£
Cash at bank and in hand
1,334,279
1,334,279		 Group
Group
2020
2019
£
£
363,909
1,408,548
425,791
366,289
(342,604)
(1,165,241)
(439,390)
(439,621)
13,663
40,379
(256,737)
(605,205)
(636)
16,823
(236,004)
(378,028)
Group
Group
2020
2019
£
£
1,426,842
1,334,279
1,426,842
1,334,279
Cash flows
At 31
August 2020
£
£
92,563
1,426,842
92,563
1,426,842

Page 48

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

30. Pension commitments

The school's employees belong to two principle pensions schemes; the Teachers' Pension Scheme England and Wales ("the TPS") for academic and related staff which is a defined benefit scheme and a defined contribution scheme with The Pensions Trust for non-teaching staff. In addition, the school contributes to the personal pension plans of certain employees.

Teachers' Pension Scheme England and Wales ("the TPS")

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £551,900 (2019: £374,076) and at the year-end £65,774 (2019 - £49,497) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 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 judgment 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. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

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 the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

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.

Until the consultation and the cost cap mechanism review are 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.

Page 49

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

30. Pension commitments (continued)

The Pension Trust

The school participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupation pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 31 January 2025 £11,243,000 per annum (payable monthly and increasing by 3% each on 1st April)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme's previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions From 1 April 2016 to 31 January 2025 £12,945,440 per annum (payable monthly and increasing by 3% each on 1st April) From 1 April 2016 to 31 January 2028 £54,560 per annum (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Page 50

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Present value of provision

31 August
2020		 31 August
2019		 31 August
2018
Present value of provision 69,602 82,957 113,493
Reconciliation of opening and closing provisions
Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at the end of period
Income and expenditure impact
Interest expense
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Remeasurements - roundings
Costs recognised in income and expenditure account
Assumptions
-		 31 August
2020
% per
annum		 2020
£
82,957
729
(14,720)
636
-
69,602
2020
£
729
636
-
-
1,365
31 August
2019
% per
annum		 2019
£
113,493
1,781
(14,999)
1,559
(18,877)
82,957
2019
£
1,781
1,559
(18,877)
493
(15,044)
31 August
2018
% per
annum

Page 51

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

The pension charge for the year includes contributions payable to The Pension Trust scheme of £92,702 (2019 - £85,374) and at the year-end £Nil (2019 - £13,492) was accrued in respect of contributions to this scheme.

31. Operating leases

At 31 August 2020 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2020
£
25,651
53,522
79,173		 Group
2019
£
26,701
28,451
55,152		 Company
2020
£
25,651
53,522
79,173		 Company
2019
£
19,698
16,556
36,254

The following lease payments have been recognised as an expense in the Statement of financial activities:

Group Group Company Company
2020 2019 2020 2019
£ £ £ £
Operating lease rentals 25,944 31,701 18,941 24,699

At 31 August 2020 the total of the group's future minimum lease income receivable under noncancellable operating leases was:

Within 1 year
Between 1 and 5 years
Greater than 5 years		 2020
£
63,000
87,025
85,483
235,508		 2019
£
63,000
117,525
90,083
270,608

Rental income recognised during the year can be seen in note 8.

Page 52

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

32. Security

Included within cash at bank are amounts of £180,896 (2019 - £180,000) held as a guarantee to the Secretary of State to cover all liabilities arising out of The Blue Coat School Birmingham Limited's application to be an accepted school under regulation 134(1)(b) of the Teachers' Pensions Regulations 2010.

33. Financial instruments

Group Group Company Company
2020 2019 2020 2019
£ £ £ £
Financial assets
Financial assets measured at fair value
through income and expenditure 11,193,752 10,851,148 11,193,852 10,851,248

Financial assets measured at fair value through income and expenditure comprise investments.

The Groups income, expense, gains and losses in respect of financial instruments are summarised below:

Group Group Company Company
2020 2019 2020 2019
£ £ £ £
Total investment income for financial assets
measured at fair value through income and
expenditure 439,390 439,621 439,390 439,621
Net gains/(losses) on financial assets
measured at fair value through income and
expenditure 342,604 1,165,241 341,604 1,165,241
Impairment losses on financial assets
measured at amortised cost 1,629 441 1,629 441

34. Related party transactions

There were no other related party transactions other than those disclosed in notes 14, 15 and 19.

Page 53