2022-08-31-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 2022

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 - 10
Independent auditor's report on the financial statements	11 - 14
Statement of financial activities	15 - 16
Balance sheet	17
Statement of cash flows	18
Notes to the financial statements	19 - 48

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 2022

Governors	Mrs K Gilmore DPSN RGN HV, Chair from 26 January 20221,3
	Mr B H Singleton LLB, Chair until 26 January 20221,2
	Mrs E Cook BA (Hons) (resigned 22 June 2022)
	Mr M H Dyke BA, Vice Chair1
	Her Honour F M Kirkham CBE, BA AKC CAb FCI Arb (resigned 22 June 2022)
	Mr W G S Hordern MBE MA DipTh JP
	Reb M Kitto BEd (Hons) MEd PGDip Hon Fellow NSEAD
	Mrs E Lawson-Bennett LLB MSc (appointed 6 June 2022)
	Mr A Milner BSC (Hons) Chartered Fellow CISI (appointed 25 April 2022)1
	Prof P Narendran MBBS PhD MRCS FRCP
	Mr S Page ACA1
	Mrs A K Poole BA1,4
	Mr S M Raine FCA BSocSci1
	Mr A J Roddick FRICS1
	Revd J Allcock BA, Rector of Martin in the Bullring5
	The Very Revd M Thompson MA MPhil, Dean of Birmingham5
	The Revd Dr N Tucker BSc MTh PhD, Vicar of Edgbaston (resigned 22 June 2022)5
1 Finance & Estates Committee (together with the Headmaster, Bursar and Finance Manager) 2 Governors' Representative to The Friends of The Blue Coat School 3 Designated Safeguarding Governor 4 Governor for SEND 5 Ex Officio Company registered number 08502615 Charity registered number 1152244 Registered office Somerset Road Edgbaston Birmingham B17 0HR Senior management team Mr N G Neeson BEd NPQH, Headmaster Mr R J Newman BA PGCE, Second Master and Head of Prep Mrs H R West BA PGCE NPHQ, Head Pre-Prep Mr G W Morgan, Bursar & Clerk to the Governors Mrs A Franklin BA, Director of Marketing & Admissions Independent auditor Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG

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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 2022

Bankers Barclays Bank Plc 15 Colmore Row Birmingham B3 2BH Solicitors Veale Wasbrough Vizards 3 Brindley Place Brindley Drive Birmingham B1 2JB Investment managers CCLA Senator House 85 Queen Victoria Street London EC4V 4ET

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The Governors present their annual report together with the audited financial statements of the Group and the School for the year ended 31 August 2022. 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 five subcommittees: Finance & Estates; Awards; Safeguarding and Health & Safety; Teaching, Learning & Curriculum; Governance & HR. The minutes of these sub-committee meetings are reviewed at full Board meetings. The Bursar, in his 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 having identified gaps in expertise. Potential new Co-optative Governors have an initial meeting with the Chair of Governors and then attend a meeting with the Chairs of key subcommittees all of whom sit on the Governance and HR subcommittee. 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

All new governors are allocated a mentor, undertake an induction programme and are given access to the Governors Portal which contains key documents and copies of previous sub-committee and committee minutes. 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. Expenses of £1,024 were paid to three Governors during the year.

Key management personnel

The Governors consider that the Head, the Bursar, the Head of Prep, Deputy Heads and the Director of Marketing & Admissions (Senior Leadership Team) comprise the Key Management Personnel (see note 11 to the accounts). The Governors give of their time freely and the pay and remuneration of the Head and Bursar is set by the Remuneration Committee and is kept under annual review. A number of criteria are used in setting pay:

• Nature of the role and responsibilities

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

• Competitor salaries in the region

• The sector average salary for comparable positions

• Trends in 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 and Bursar attend all Governors meetings and other senior staff are invited to attend Governors' meetings as appropriate.

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. At present this is now a dormant company.

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:

Foundation places

Each year Governors allocate a sum of money equal to 5% of the previous year’s net income to fund Foundation places. These places are advertised in numerous publications in the Birmingham area as well as being advertised on line in various digital applications.

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 made the following facilities and coaching available, at no charge, to benefit pupils attending local state schools:

• Use of the swimming pool for swimming lessons and swimming galas Use of the sports fields for sport festival

• Use of the School Chapel for musical events

• Use of the school facilities and staff to provide outreach opportunities to local 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 2022

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 3 -11 years in two departments: 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. 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:

• Review and benchmark the School's academic syllabus, teaching practices and examination results;

• Ensure that the range of co-curricular activities available to our pupils is stimulating and challenging;

• Invest in technology and the infrastructure of our School;

• Co-operate and share resources with local schools;

• Develop methods for awarding bursaries/ scholarships to ensure wider access to pupils from all backgrounds.

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 2021-2022 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.

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.

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.

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.

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

In 2021-2022 the School provided assistance to 24 of our pupils of which 5 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

Independent Schools Inspectorate (/SI) Inspection May 202 1

ISI conducted a Regulatory Compliance Inspection of the School in May 2021. The School was found to be fully compliant and no further actions were required.

An Educational Quality Inspection (EQI) of the School in May 2017. 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 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 two departments: Pre-Prep (3-7 years old); and Prep (7-11 years old). At the year-end the total pupil number was 623.

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 losses and other recognised gain of £321,353 (2021-surplus of £477,165). The principal source of funds remains school fees of £7,456,370 (2021 - £7,155,015) which represented 87.2% (2021 - 90.9%) of the total income of £8,550,356 (2021 - £7,865,285).

Unrealised losses on our investments amounted to £612,236 (2021 - gain of £1,951,229) before movements on the defined benefit pension scheme.

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

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 creation of a sufficient financial return to enable the charity to carry out its purposes effectively and without interruption;

• The maintenance and enhancement of the investment funds over the long term;

• To obtain a balance between capital growth and income to enable the charity to meet current and future needs; and to maintain a balanced risk profile.

The average income return on the portfolio was 2.9% compared to 2.52% 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.

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 including areas 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 senior management team and the SH&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.

SUSTAINABILITY

In line with our 5 year aims as detailed in our Strategic Framework document the school has undertaken to:

• Reduce our carbon footprint and move towards lower overall emissions

• Ensure all future estate projects adhere to our sustainable strategic aims

• Educate and empower pupils to take positive action on sustainability initiatives.

• Instil a whole school approach to the core principles of sustainability: Refuse, Reduce, Reuse, Repurpose and Recycle.

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

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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. For our nonteaching and support staff we offer a money purchase plan (defined contribution scheme).

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 £21,539,774 included £1,699,510 of unrestricted general reserves and £4,333,097 designated funds plus a permanent endowment of £15,502,144.

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.

Restricted funds of £5,023 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 £6,823,585.

CHARITY GOVERNANCE CODE

The Governors are aware of the new charity governance code issued in July 2017. Reviews continue to 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.

GOVERNORS' RESPONSIBILITIES STATEMENT

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:

• select suitable accounting policies and then apply them consistently; observe the methods and principles

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THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

in the Charities SORP (FRS 102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in operation.

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:

so far as that Governor is aware, there is no relevant audit information of which the charitable Group's auditor is unaware, and

that Governor has taken all the steps that ought to have been taken as a Governor in order to be aware of any relevant audit information and to establish that the charitable Group's auditor is aware of that information.

AUDITORS

Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor.

Approved by order of the members of the board of Governors and signed on their behalf by:

................................................

Mrs K Gilmore DPSN RGN HV

Chair of Governors

Date:

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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

Opinion

We have audited the financial statements of The Blue Coat School Birmingham Limited (the 'charitable company') for the year ended 31 August 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Governors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Governors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

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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)

misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

• the information given in the Governors' Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Governors' Report and the Strategic Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the 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:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

• certain disclosures of Governors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

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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)

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, General Data Protection Regulation (GDPR), Health and safety legislation, and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of donation and ancillary income, procurement processes for significant capital projects and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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

Page 13

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)

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.

Kerry Brown (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:

Page 14

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Note Income and endowments from: Donations and legacies 4 Charitable activities: School fees 5 Ancillary trading income 6 Investments 7 Total income and endowments Expenditure on: Raising funds: 8 Financing costs Charitable activities: 9 Education and grant making Total expenditure Net income/(expenditure) before net (losses)/gains on investments Net (losses)/gains on investments Net (expenditure)/income Transfers between funds 21 Net movement in funds before other recognised gains Other recognised gains: Actuarial gains on defined benefit pension schemes 26 Net movement in funds	Unrestricted funds 2022 £ 8,000 7,456,370 567,139 480,896 8,512,405 923 8,056,818 8,057,741 454,664 (652,063) (197,399) (771,456) (968,855) 478 (968,377)	Restricted funds 2022 £ 38,687 - - - 38,687 - 51,808 51,808 (13,121) - (13,121) - (13,121) - (13,121)	Endowment funds 2022 £ - - - - - - 120,190 120,190 (120,190) 39,827 (80,363) 771,456 691,093 - 691,093	Total funds 2022 £ 46,687 7,456,370 567,139 480,896 8,551,092 923 8,228,816 8,229,739 321,353 (612,236) (290,883) - (290,883) 478 (290,405)	Total funds 2021 £ 24,060 7,155,015 243,185 443,025
					7,865,285
					(1,501) 7,389,621 7,388,120 477,165 1,951,229
					2,428,394 -
					2,428,394 74
					2,428,468

Page 15

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted funds 2022 Restricted funds 2022 Endowment funds 2022 Note £ £ £ Reconciliation of funds: Total funds brought forward 7,000,984 18,144 14,811,051 Net movement in funds (968,377) (13,121) 691,093 Total funds carried forward 6,032,607 5,023 15,502,144	Total funds 2022 £ 21,830,179 (290,405) 21,539,774	Total funds 2021 £ 19,401,711 2,428,468
		21,830,179

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 19 to 48 form part of these financial statements.

Page 16

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) REGISTERED NUMBER: 08502615

BALANCE SHEET AS AT 31 AUGUST 2022

Note Fixed assets Tangible assets 13 Investments 15 Investment property 14 Current assets Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current (liabilities) / assets Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Total net assets Charity funds Endowment funds 21 Restricted funds 21 Unrestricted funds 21 Total funds	327,274 1,368,489 1,695,763 (1,921,300)	2022 £ 6,823,585 13,532,846 1,415,000 21,771,431 (225,537) 21,545,894 (6,120) 21,539,774 15,502,144 5,023 6,032,607 21,539,774	220,814 1,767,429 1,988,243 (1,355,095)	2021 £ 6,176,039 13,645,081 1,415,000 21,236,120 633,148 21,869,268 (39,089) 21,830,179 14,811,051 18,144 7,000,984 21,830,179

The Governors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

Mrs K Gilmore DPSN RGN HV

Date:

The notes on pages 19 to 48 form part of these financial statements.

Page 17

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Note Cash flows from operating activities Net cash used in operating activities 23 Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Purchase of investments Net cash used in 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 24	2022 £ 617,255 480,896 (997,091) (500,000) (1,016,195) (398,940) 1,767,429 1,368,489	2021 £ 536,840 443,025 (133,718) (500,000) (190,693) 346,147 1,421,282 1,767,429

The notes on pages 19 to 48 form part of these financial statements

Page 18

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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.

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.

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 Company 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 Company 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.

Page 19

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.3 Fund accounting (continued)

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.

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

Page 20

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.4 Income (continued)

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.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

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:

• Costs of raising funds;

• Expenditure on charitable activities;

• Other expenditure represents those items not falling into the categories above.

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.

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

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

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

Page 21

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.6 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:

Freehold property	- 1.5% - 10% Straight Line
Fixtures and equipment	- 10% - 20% Straight Line
Motor vehicles	- 20% Straight line
Computer equipment	- 10% - 33.3% Straight Line

Depreciation is not charged on freehold land.

2.7 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.

2.8 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 Statement of financial activities.

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

2.9 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straightline basis over the lease term.

2.10 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.

Page 22

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.11 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.

2.12 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 Statement of financial activities as a finance cost.

2.13 Financial instruments

The Company 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.

2.14 Taxation

The Company 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 Company 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.

2.15 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 26, 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

Page 23

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.15 Pensions (continued)

charges to the Statement of financial activities in the year incurred.

3. Critical accounting estimates and areas of judgment

Estimates and judgments 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 statements, 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.

Page 24

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

4. Income from donations and legacies

Unrestricted funds 2022 £ Donations 8,000 Total 2022 8,000 Total 2021 5,500	Restricted funds 2022 £ 38,687 38,687 18,560	Total funds 2022 £ 46,687 46,687 24,060	Total funds 2021 £ 24,060
			24,060

5. Charitable activities - School fees

Gross tuition fees Less: Awards, scholarships and bursaries from unrestricted funds Less: Fee discounts	2022 £ 7,951,554 (348,317) (146,867) 7,456,370	2021 £ 7,642,538 (342,709 (144,814
		7,155,015

Awards, scholarships and bursaries were paid to 45 pupils (2021 - 48 pupils). Within this means tested bursaries totalling £272,962 were paid to 24 pupils (2021 - £265,451 to 26 pupils).

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

6. Charitable activities - Other ancillary trading income

Extra-curricular activities Registration fees School trips Other income	2022 £ 271,534 18,200 159,070 118,335 567,139	2021 £ 183,131 11,700 8,722 39,632
		243,185

The total ancillary trading income is unrestricted in both years.

Page 25

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7. Investment income

Unrestricted funds 2022 £ Rental income 88,057 Dividend income 383,829 Deposit account interest 9,010 Total 2022 480,896 Total 2021 443,025 Expenditure on raising funds - Financing costs Unrestricted funds 2022 £ Bad debt (income)/costs (1,626) Property management fees 2,549 Total 2022 923 Total 2021 (1,501)	Total funds 2022 £ 88,057 383,829 9,010 480,896 443,025 Total funds 2022 £ (1,626) 2,549 923 (1,501)	Total funds 2021 £ 93,497 349,528 - 443,025 Total funds 2021 £ (3,570) 2,069 (1,501)

8. Expenditure on raising funds - Financing costs

Page 26

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

9. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted funds 2022 Restricted funds 2022 £ £ Teaching 4,571,759 51,208 Catering 581,891 - Premises 1,802,971 600 Support and governance 1,100,197 - Total 2022 8,056,818 51,808 Total 2021 7,252,101 16,997 Summary by expenditure type Staff costs 2022 Depreciation 2022 £ £ School fees 3,919,413 183,515 Catering - - Premises 367,912 136,630 Support and governance 553,604 29,400 Total 2022 4,840,929 349,545 Total 2021 4,707,085 394,832	Endowment funds 2022 £ 120,190 - - - 120,190 120,523 Other costs 2022 £ 640,229 581,891 1,299,029 517,193 3,038,342 2,287,704	Total 2022 £ 4,743,157 581,891 1,803,571 1,100,197 8,228,816 7,389,621 Total 2022 £ 4,743,157 581,891 1,803,571 1,100,197 8,228,816 7,389,621	Total 2021 £ 4,266,592 491,541 1,633,796 997,692 7,389,621 Total 2021 £ 4,266,592 491,541 1,633,796 997,692 7,389,621

Page 27

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

10. Auditor's remuneration

	2022	2021
	£	£
Fees payable to the Company's auditor for the audit of the Company's
annual accounts	16,500	15,000
Fees payable to the Company's auditor in respect of:
Accountancy services	3,725	5,325

11. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	2022 £ 3,844,282 378,166 618,481 4,840,929	2021 £ 3,709,146 356,398 641,541
		4,707,085

During the year there were redundancy or termination payments made which amounted to nil (2021 - £12,367). There was nil (2021 - £Nil) outstanding at the year end.

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

Teaching staff Administrative/support staff	2022 No. 70 56 126	2021 No. 71 51
		122

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

	2022	2021
	No.	No.
In the band £60,001 - £70,000	3	2
In the band £90,001 - £100,000	1	1
In the band £160,001 - £170,000	1	1

The total amount of employee benefits received by key management personnel is £797,165 to 8 staff members (2021 - £788,639, to 8 staff members).

Page 28

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

12. Governors' remuneration and expenses

During the year, no Governors received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 August 2022, expenses totalling £ 1,024 were reimbursed or paid directly to 3 Governors (2021 - £753 to 4 Governors) .Expenses related to courses, accommodation and travel expenses.

Page 29

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

13. Tangible fixed assets

Cost or valuation At 1 September 2021 Additions At 31 August 2022 Depreciation At 1 September 2021 Charge for the year At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021	Freehold school premises £ 8,846,668 958,767 9,805,435 2,895,948 243,550 3,139,498 6,665,937 5,950,720	Fixtures and equipment £ 184,057 16,750 200,807 155,787 15,487 171,274 29,533 28,270	Computer equipment £ 727,901 21,574 749,475 577,280 77,408 654,688 94,787 150,621	School minibus £ 65,499 - 65,499 19,071 13,100 32,171 33,328 46,428	Total £ 9,824,125 997,091
					10,821,216
					3,648,086 349,545
					3,997,631
					6,823,585
					6,176,039

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 30

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14. Investment property

Valuation At 1 September 2021 At 31 August 2022 Comprising:	Freehold investment property £ 1,415,000
	1,415,000

416 Birmingham Road, Wylde Green 119-120 Glover Street 256 Harbourne Road, Edgbaston	2022 £ 435,000 130,000 850,000 1,415,000	2021 £ 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.

The Properties located at 416 Birmingham Road, and 119-120 Glover Street were revalued by Burley Browne Chartered Surveyors in October 2022.

The property located at 256 Harborne Road were revalued by Fishers (Harborne) Limited in November 2022.

The governors believe that the value of the investment properties at the year end does not materially differ from the value obtained at the dates listed above.

Page 31

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15. Fixed asset investments

Cost or valuation At 1 September 2021 Additions Revaluations At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 Investments and deposits comprise: Charities Official Investment Fund - Income shares Principal subsidiaries	Investments in subsidiary company £ 100 - - 100 100 100	Investments and deposits £ 13,644,981 500,000 (612,235) 13,532,746 13,532,746 13,644,981 2022 £ 13,532,746	Total £ 13,645,081 500,000 (612,235) 13,532,846 13,532,846 13,645,081 2021 £ 13,644,981

The following was a subsidiary undertaking of the Company:

Name	Company	Registered office or	**Principal activity **	Class of	Holding
	number	principal place of		shares
		business
BCS Enterprises Limited	09109064	The Blue Coat School	Dormant in	Ordinary	100%
		Birmingham	current year
		Somerset Road
		Edgbaston
		Birmingham
		B17 0HR.

Page 32

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15. Fixed asset investments (continued)

The financial results of the subsidiary for the year were:

Name BCS Enterprises Limited Debtors Trade debtors Other debtors and accrued income Prepayments	2022 £ 195,142 70,880 61,252 327,274	Net assets £ 100 2021 £ 86,781 57,218 76,815
		220,814

16. Debtors

An impairment loss of £6,165 (2021 - £7,791) was recognised against fee debtors.

17. Creditors: Amounts falling due within one year

Trade creditors Other taxation and social security Fees in advance (note 19) Deposits (note 20) Pension liability Accruals and other creditors Creditors: Amounts falling due after more than one year Pension liability	2022 £ 402,207 87,913 725,780 187,850 4,716 512,834 1,921,300 2022 £ 6,120	2021 £ 207,300 81,520 668,233 185,400 15,616 197,026
		1,355,095
		2021 £ 39,089

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

Page 33

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

19. Fees in advance

Movement of fees in advance: Balance at 1 September New advance fees received Amounts utilised in payments Balance as at 31 August 20. Fee deposits Movement of fee deposits: Balance at 1 September New deposits received Deposits utilised Balance as at 31 August	2022 £ 668,233 725,780 (668,233) 725,780 2022 £ 185,400 36,000 (33,550) 187,850	2021 £ 537,865 668,233 (537,865) 668,233 2021 £ 180,150 33,300 (28,050) 185,400

Page 34

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21. Statement of funds

Statement of funds - current year

Unrestricted funds Designated funds Extraordinary repair fund Loppylugs & Barbara Morrison Trust School nursery and four classroom block New build fund Foundation fund Old Scholar Donation General funds General Funds - all funds Total Unrestricted funds Endowment funds Endowment Funds - all funds	Balance at 1 September 2021 £ 1,414,311 - 2,279,783 965,000 220,512 1,326 4,880,932 2,120,052 7,000,984 14,811,051	Income £ - 8,000 - - - - 8,000 8,504,405 8,512,405 -	Expenditure £ - - - - (272,962) - (272,962) (7,784,779) (8,057,741) (120,190)	Transfers in/(out) £ (838,766) - 120,000 120,000 315,893 - (282,873) (488,583) (771,456) 771,456	Gains/ (Losses) £ - - - - - - - (651,585) (651,585) 39,827	Balance at 31 August 2022 £ 575,545 8,000 2,399,783 1,085,000 263,443 1,326
						4,333,097
						1,699,510
						6,032,607
						15,502,144

Page 35

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21. Statement of funds (continued)

Restricted funds Diana Willis memorial prize Limoges Trust Chapel fund John Avins Trust Grand piano Sir John Saville Trust Reginal Farrar Fund Association of Friends BCS King Fund Hatfield Fund Chris Byrne Memorial Prize Fund 300th Celebration Funds Total of funds	Balance at 1 September 2021 £ 165 7,019 1,214 939 800 6,892 506 89 100 300 120 - 18,144 21,830,179	Income £ - 5,000 - 2,000 - 550 - 2,250 50 230 - 28,607 38,687 8,551,092	Expenditure £ - (12,019) (1,214) - (600) (7,442) - (1,926) - - - (28,607) (51,808) (8,229,739)	Transfers in/(out) £ - - - - - - - - - - - - - -	Gains/ (Losses) £ - - - - - - - - - - - - - (611,758)	Balance at 31 August 2022 £ 165 - - 2,939 200 - 506 413 150 530 120 -
						5,023
						21,539,774

Page 36

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds Designated funds Extraordinary repair fund Loppylugs & Barbara Morrison Trust School nursery and four classroom block New build fund Foundation fund Old Scholar Donation General funds General Funds - all funds Total Unrestricted funds Endowment funds Endowment Funds - all funds	Balance at 1 September 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	Income £ - 5,500 - - - - 5,500 7,841,225 7,846,725 -	Expenditure £ - (14,500) - - (266,234) - (280,734) (6,969,866) (7,250,600) (120,523)	Transfers in/(out) £ 120,000 - 120,000 120,000 352,293 - 712,293 (712,293) - -	Gains/ (Losses) £ - - - - - - - 436,128 436,128 1,515,175	Balance at 31 August 2021 £ 1,414,311 - 2,279,783 965,000 220,512 1,326
						4,880,932
						2,120,052
						7,000,984
						14,811,051

Page 37

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21. Statement of funds (continued)

Restricted funds Diana Willis memorial prize Limoges Trust Chapel fund John Avins Trust Grand piano Sir John Saville Trust Reginal Farrar Fund Association of Friends BCS King Fund Hatfield Fund Chris Byrne Memorial Prize Fund 300th Celebration Funds Total of funds	Balance at 1 September 2020 £ 165 2,019 1,214 2,875 1,400 8,292 506 - 50 60 - - 16,581 19,401,711	Income £ - 5,000 - 2,000 - 10,000 - 1,120 50 240 150 28,607 47,167 7,893,892	Expenditure £ - - - (3,936) (600) (11,400) - (1,031) - - (30) (28,607) (45,604) (7,416,727)	Transfers in/(out) £ - - - - - - - - - - - - - -	Gains/ (Losses) £ - - - - - - - - - - - - - 1,951,303	Balance at 31 August 2021 £ 165 7,019 1,214 939 800 6,892 506 89 100 300 120 -
						18,144
						21,830,179

Page 38

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Statement of funds (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 in of £120,000 (2021 - £120,000) this year to the fund to finance repairs and transfers out of £958,766 to fund capital works on the chapel and the new science building.

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 (2021 - £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 (2021 - £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 £393,264 (2021 - £352,293) and amounts advanced to pupils totalled £272,230 (2021 - £265,451).

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.

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.

Page 39

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Statement of funds (continued)

RESTRICTED FUNDS

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.

King Fund - Donation toward the bursaries.

Hatfield fund - Donation towards bursaries.

Chris Byrne Memorial Prize Fund - To fund a book prize at annual prize giving.

300th Celebration Fund - Funds generated during the Tercentenary celebrations, raising funds for chapel renovations.

Summary of funds - current year

Designated funds General funds Endowment funds Restricted funds	Balance at 1 September 2021 £ 4,880,932 2,120,052 14,811,051 18,144 21,830,179	Income £ 8,000 8,504,405 - 38,687 8,551,092	Expenditure £ (272,962) (7,784,779) (120,190) (51,808) (8,229,739)	Transfers in/(out) £ (282,873) (488,583) 771,456 - -	Gains/ (Losses) £ - (651,585) 39,827 - (611,758)	Balance at 31 August 2022 £ 4,333,097 1,699,510 15,502,144 5,023
						21,539,774

Page 40

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

. Summary of funds (continued)

Summary of funds - prior year

Designated funds General funds Endowment funds Restricted funds	Balance at 1 September 2020 £ 4,443,873 1,524,858 13,416,399 16,581 19,401,711	Income £ 5,500 7,841,225 - 47,167 7,893,892	Expenditure £ (280,734) (6,969,866) (120,523) (45,604) (7,416,727)	Transfers in/(out) £ 712,293 (712,293) - - -	Gains/ (Losses) £ - 436,128 1,515,175 - 1,951,303	Balance at 31 August 2021 £ 4,880,932 2,120,052 14,811,051 18,144
						21,830,179

22. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2022 £ Tangible fixed assets 3,021,079 Fixed asset investments 3,248,008 Investment property - Current assets 1,690,940 Creditors due within one year (1,921,300) Creditors due in more than one year (6,120) Total 6,032,607	Restricted funds 2022 £ 200 - - 4,823 - - 5,023	Endowment funds 2022 £ 3,802,306 10,284,838 1,415,000 - - - 15,502,144	Total funds 2022 £ 6,823,585 13,532,846 1,415,000 1,695,763 (1,921,300) (6,120)
			21,539,774

Page 41

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

22. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Creditors due in more than one year Total	Unrestricted funds 2021 £ 3,024,199 3,400,070 - 1,970,899 (1,355,095) (39,089) 7,000,984	Restricted funds 2021 £ 800 - - 17,344 - - 18,144	Endowment funds 2021 £ 3,151,040 10,245,011 1,415,000 - - - 14,811,051	Total funds 2021 £ 6,176,039 13,645,081 1,415,000 1,988,243 (1,355,095) (39,089) 21,830,179

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

Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges (Gains)/losses on investments (including investment property) Dividends, interests and rents from investments Loss on the sale of fixed assets Increase in debtors Increase in creditors Pension scheme Net cash provided by operating activities	2022 £ (290,883) 349,545 612,236 (480,896) - (106,460) 533,235 478 617,255	2021 £ 2,428,394 394,832 (1,951,229) (443,025) 3,745 (40,075) 144,124 74 536,840

Page 42

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

24. Analysis of cash and cash equivalents

Cash in hand Total cash and cash equivalents	2022 £ 1,368,489 1,368,489	2021 £ 1,767,429
		1,767,429

25. Analysis of changes in net debt

Cash at bank and in hand	At 1 September 2021 £ 1,767,429 1,767,429	Cash flows At 31 August 2022 £ £ (398,940) 1,368,489 (398,940) 1,368,489	Cash flows At 31 August 2022 £ £ (398,940) 1,368,489 (398,940) 1,368,489
			1,368,489

Page 43

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

26. 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 £560,801 (2021: £533,440) and at the year-end £65,629 (2021 - £63,157) 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. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any

Page 44

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

26. Pension commitments (continued)

changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

The Pension Trust

The school participates in the scheme, a multi-employer scheme which provides benefits to some 638 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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. 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 2022 to 31 January 2025 £3,312,000 per annum (payable monthly)

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 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 30 September 2025 £11,243,000 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 45

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Pension commitments (continued)

Present value of provision

	31 August	31 August	31 August
	2022	2021	2020
Present value of provision	10,836	54,705	69,602

Present value of provision 10,836 54,705 69,602

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 Costs recognised in income and expenditure account Assumptions	31 August 2022 % per annum	2022 £ 54,705 310 (10,962) (478) (32,739) 10,836 2022 £ 310 (478) (32,739) (32,907) 31 August 2021 % per annum	2021 £ 69,602 338 (15,161) (74) - 54,705 2021 £ 338 (74) - 264 31 August 2020 % per annum

Page 46

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Pension commitments (continued)

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 £83,454 (2021 - £82,921) and at the year-end £11,854 (2021 - £13,038) was accrued in respect of contributions to this scheme.

27. Operating lease commitments

At 31 August 2022 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years	2022 £ 13,051 24,135 37,186	2021 £ 23,354 37,186
		60,540

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

	2022	2021
	£	£
Operating lease rentals	23,354	25,104

At 31 August 2022 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	2022 £ 38,600 43,817 80,117 162,534	2021 £ 63,000 56,525 67,083
		186,608

Page 47

THE BLUE COAT SCHOOL BIRMINGHAM LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

28. Security

Included within cash at bank are amounts of £181,043 (2021 - £180,914) 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.

29. Financial instruments

		As restated
	2022	2021
	£	£
Financial assets
Financial assets measured at fair value through income and expenditure	14,947,846	15,060,081

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

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

		As restated
	2022	2021
	£	£
Total investment income for financial assets measured at fair value through
income and expenditure	480,896	443,025
Net (losses)/gains on financial assets measured at fair value through
income and expenditure	(612,236)	1,951,229
Impairment gains on financial assets measured at amortised cost	1,626	3,570

30. Related party transactions

There were no other related party transactions other than those disclosed in notes 11 and 12.

Page 48