Reglstered 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 2024
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) CONTENTS Page Reference and administrative details of the Company. Its Governors and advisers Governors, report Independent audltorfs report on the financlal statements Statement of financial activities 3-11 12-15 16-17 Balance sheet 18-19 Statement of cash flows 20 Notes lo the financial statements 21-51
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2024 Governors Mrs K Gilmore DPSN RGN HV. Chairl Mr M H Dyke BA. Vice Chairl Revd J Alcock BA, Rector of Martin in the Bullring2 Mrs E Andrews BA PGCE3 Dr Sarbjit Bahia MBBS MRCP MRCGP DRCOG Dip Occ Med Bsc (appointed 18 October 2023) Rev C Butler2 Mr W G S Hordem MBE MA DipTh JP Rev M Kitto BEd (Hons) MEd PGDip Hon Fellow NSEAD (resigned 21 October 2024) Mrs E Lawson-Bennett LLB Msc (resigned 23 September 2024) Mr A Milner BSC (Hons) Chartered Fellow CIS11 Prof P Nandran MBBS PhD MRCS FRCP Mr S Page ACAI Mrs A K Pc4)le BAI.4 Mr S M Raine FCA Bsocsol Mr A J Roddick FRICS (resigned 18 October 2023) Mr B H Singleton LLB1.5 The Very Revd M Thompson MA MPhil. Dean of Birmingham2 Mr M Broughlon-Taylor (appointed 29 November 2024> 1 Finan & Estates Committee (together wtth the Headmasler. Bursar and Finance Manager} 2 Ex Officio 3 Designated Safeguarding Govemor 4 Govemor for SEND 5 Govemors. Representative to The Friends of The Blue Coat School Company registered number 08502615 Charlty registered number 1152244 Registered office Somerset Road Edgbaston Birmingham B170HR Senior management team Mr N G Neeson BEd NPQH. Headmaster Mr G W Morgan, Bursar & Clerk to the Govemors Mr R J Newman BA PGCE, Second Master and Head of Prep Mrs H R West BA PGCE NPHQ. Head Pre-Prep Mrs A Franklin BA. Director of Marketing & Admissions Independènt auditor Crowe U.K. LLP Black County House Rounds Green Road Oldbury West Midlands B69 2DG Page 1
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS GOVERNORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Bankers Bardays Bank PIC 15 Colmore Row Birmingham B3 2BH Sollcitors Veale Wasbrough Vizards 3 Brindley Pla Brindley Drive Birmingham B12JB Investment managers CCLA Senator House 85 Queen Victoria Streel London EC4V 4ET Page 2
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee> GOVERNORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Govemor5 present their annual report together wrth the audited financial statements of the Group and the School for the year ended 31 Augusl 2024. The Govemors confirm that the Annual Report and financial statements of the company comply with the current statutory requirements. the requirements of th8 companls governing document and the provisions of the Statement of Recommended Practice (SORPI, applicable to charFties preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) (effedive 1 January 2015) as amended by Update Bulletin 1 (effective 1 January 20151. The Charity is a charitable company limtted by guarantee. It was incorporated on 24 April 2013 and registered as charity on 31 May 2013. Its Memorandum of Association. which estsblished its objects and powers, provided that in the evenl of it being wound up. members are required to ntribUte an amount not exceeding £1. Membership of the Company is reviewed at the Annual General Meeting as appropriate. The unincorporated Chariws goveming document is The Trusl 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 Aci 2011. Governors and charity trustees The Govemors of The Blue Coat School Birrningham Limiied are the charity trustees and directors of The Blue Coat School Birmingham Limited (the School) and The Blue Coat School charty. They meet at least four times a year as a full Board. The work of implementing m05t of their poliaes is carried out by members of five sub- committees.. Finance & Estates,. Awards" Safeguarding and Health & Safety; Teaching, Leaming & CUrcuIUrn' Governance & HR. The minutes of these sub-committee meetings are reviewed at full Board meetings. The Butsar, in his capacity of Clerk to the Govemor5, is responsible for coordinating the work of the Govemors and their Gommiitees, for the preparation of papers and management accounts and for the review of matters arising. New Govemors are appointed by the existing Board of Govemors having identified gaps in expertise. Potential new Co-oplative Govemots have an initsal meeb'ng with the Chair of Govemors and then attend a meeting with the Chairs of key subcommittees all of whom sit on the Governance and HR subcommittee. New ¢OthOPtative Govemors are invited to join up to two sub-committees most relevant to their experienc2 and having regard to the existing number of members on each sulFcommittee. Induction and Training All new governors are allocated a mentor, undertake an induction programme and are given access to the Govemors 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 natu of the School's business. An appropriate level of instruction is provided for tK)th new and existing Govemors to update their knowledge and place them in a position where they could s8nsibly identify their powers and responsibilities. From time to time, Governors go on formal training courses that the School and that individual Govemors identify are required for that Govemor to be able to discharge hislher duty. l truste8s give of their time freely, and no remuneratM)n was paid in the year. Expenses of £70 were paid to two Govemors during the year. Page 3
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmlted by guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Key management personnel The Govemors ¢onsid8r thai the Head, the Bursar, the Head of Prep, Head of Pre-Prep, Deputy Heads and the Director of Marketing & Admissions (Senior Leadership Team} Gomprise the Key Management Personnel (see note 11 to the acrnunts). The Govemors 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 responsibilrtses Competitor salaries in the region The sector average salary for comparable positions Trends in pay. Organisational management The Govemors determine the general policy of the School. The day to day running of the School is delegaled to the Head, 5upporied by senior staff. The Head undertake5 the key leadership role, overseeing the educational. pastoral and adminislrative functions in consultstion with the senior staff. The day to day administration of the School is undertaken in line with the poliaes and proGedures approved by the Govemors. which provide for 5ignifi¢ant expenditure decisions and major capitsl projects to be referred to the Govemors for prior approval. The Head and Bursar attend all Governors meetings and olher senior stsff are invited to attend Govemors. 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. whiGh provides professional development, technical support and invaluable reference material. Other key parties supporttng the School include the Independent Schools. Council (ISC) and the Association of Goveming Bodies of Independent Schools (AGBIS). BCS Enterprises is a wholly owned subsidiary undertaking of The Blue Coat sch¢1 Limited. It is managed by the Govemors of the School and its purpose is to generate surplus fvnds to reinvest in the School. At present this is now a domiant ¢ompany. PUBLIC BENEFrr 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 chafitys purposes for public benefit indude- Foundatlon places Each year Govemors allocate a sum of money to fund Foundation places. These places are advertised in numerous publications in the Birmingham area as well as being advertised online in various digital applications. In addition. a member of staff is seconded to the Birniingharn Diocese MAT to provide mentoring and guidance to newly qualified teachers. Page 4
THE 8LUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Communlty Llnk 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 tacilities and coaching available. at no charge, to benefit pupils attending local stste schools: Use of the swimming pool for swimming lessons and swimming galas Use of the sports fields for sport festival and training Use of the School Chapel for musical events and religious observances Use of the school facilities and staff to provide outreach opportunities to local schools. Communlty access We all see The Blue Coat Schc¥Jl as part of a wider community. and where we can assist the communtty 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 activitses holiday camps. Our outreach programme has included opportunities for local schools to access our facilities at no charge and to lake part in 'Experience Days, during which they enjoy a wide variety of aciivitses in specialist areas of leaming {such as STEM, Music and Forest School). There is no charge for participation. OURAIMS The object of the School is the provision and conduct, in or near the City of Birmingham, of a day school for bo and girls. Within this object, the School has vaTiOUS pemianent endowments and restricted Tnjst 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 girfs from the ages of 3 -11 years in iwo 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 eduGation 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 Govemors have referred to the guidance contained in the Charity Commission's general guidance on publi benefit when reviewing the charitvs aims and objedives and in planning future activities. In particular, the Govemors have considered how planned activities will contribute to the aims and objectFves set. Page 5
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmfted by guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 The principal objectives for the coming year are: To continue to make first-class provision for the Early Years (from age three upwards). introducing our youngest ¢hildren to their educational lrfe in such a way as to allcml them to flourish fully as human beings in an ever-changing world. To maintsin the current high standards of academi¢ achievement indicated by senior school entrance exam results at 11-plus level and other external Measu$. To recruit and retain the best teaching and support staff to assist in the conlinued development and promotion of the School as a leading provider of preparatory education not only locally but nationally. To develop the all-round curricular and Covcurricular provision to ensure excellence in all areas. academic. music, sport and performing arts. To widen access to the school through the (XJntinued provision of means-tested bursaries. To enhance links with the local community and to encourage the community to access the school. To prepare. in conjunction with the Headmaster, a detailed stralegic plan incorporating a five-year financial model to assist in the development. finanaal management and control of the School. The Gov8mors are responsible foT 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 a¢¢ess to the education the School provides. In tsking forward our strategy we: Review and benchmark the Schtsjl's academic sjllabus, teaching practiS 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; Covoperate and share resources with local schools" Develop methods for awarding bursariesl scholarships to ensure wider acce5S to pupils from all backgrounds. OUR ETHOS Our ethos is to be a caring Christian School semng our local comrnunty and society. Our School welcomes pupils from all backgrounds. To admit a prospective pupil. we need to be satisfied that our School viill 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 leaming and benefit from the education we provide. An individual's economic status. gender. race. religion or disability do not form part of our assessment prOss. We are an equal opportunity organisation and are committed to a working environment that is free from any fomi of discrimination on the grounds of age. disability. gender reassignment, marriage and Civil partnership, pregnancy and maternty, 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 stsff and volunteers to share this commitment. Page 6
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 SIGNIFICANT ACTIVITIES Academic achievements The 2023-2024 academic year was anolher successful year for the School continuing to deliver sound academic results whilst investing in infrastrudure to ensure the continued provision of firsl-class facilities. In addition to the high quality education the School provides for its pupils, it continue5 to offer an extensive programme of outdoor and Corycurricular activities. Sporting activities The School continues to develop rts 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 indude individual music lessons, choirs. ensembles and an orchestra. Children in all age-groups participate in a wde variety of drama activities. The Friends of The Bluè 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 Sch1 provides bursary and scholarship awards as follows.. Bursarles The Govemofs, grant-making policy is. in each accounting year. to set aside part of the Chafiws investment income, to maintsin Foundation Places. This helps children of merit and good character for whom a funded education would be beneficial bul could not be affi)rded without assistance. In 2023-2024 the School provided assistance to 22 of our pupils of which 9 pupils benefited from a full remission of fees. The Foundation Awards also assist in funding additional costs such a5 school trips, co-curricular activities, unifonn and other similar expenses. Scholarships In addition. the Sch¢x>I awards scholarships to pupils based on either their educational or musical merit and potential. The Govemors view our bursary and scholarship awards and our outreach programme as imporlant in widening access to the education our school provides. In developing our plans for this programme, we work closely wth the Heads of the schools in our cornmunity. ensuring the positive contribution lo our shared educ8tional aims continues. Maintaining and. where necessary, developing the fabric and facilities of the School are Central to our strategy. Page 7
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE Independent Schools Inspectorate (ISI) Inspection May 2024 ISI conducted a Routine Inspection of the School in April 2024. All standards were met. A full copy of the report is available on both the Sch¢1 and ISI websites. Pupil numbers Our educational activities are carried out through Iwo departments: Pre-Prep (3-7 years old)., and Prep (7-11 years old}. At the year-end the total pupil number was 638. FUNDRAISING There are no malerial fvndraising activities at the School which require disclosure under S162A of the Charities Act2011. FINANCIAL REVIEW The School's key financial objective is to ensure financial stability and continued solvency year on year so that it can putsue its Gharitable 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 sury)lus fOre investrnent105ses and other recognised gain of £277,413 (2023 - gain of £46.037). The principal source of funds remains sch(x)I fee5 of £8.905,767 (2023 - £7,874.472) which represented 87.5% (2023 - 86.7%> of the total income of £10.174.621 (2023 - £9.078,632}. Unrealised gains on our investments amounted to £834.765 (2023 - losses of £297.326) before movements on the defined benefrt pension scheme. The investments are primarily used to fund the bursary and scholarship awards and other social investment. INVESTMENTS Investrnent activities are managed in line with the requirements of the Trustee Act 2000. The Govemors have appointed CCLA as investment manager. The main investment objectives of the charity are: The Greation of a sufficient financial return to enable the charity to cary out its purposes effectively and ythOUt inteupti0n- The maintenance and enhancement of the investment funds over the long tenn: To obtain a balance between capital growlh and income to enable the charity to meel Current and future needs; and to maintain a balanced risk profile. The average income return on the portfolio remained untharged at 2.89h. Page 8
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 KEY RISKS AND UNCERTAINTIES The Governors and Senior Leadership Team periodically review the major risks facing the charity. Risk regislers are maintained and updated at least annually. Risks are considered under the headings of strategic. operational, financial and legall regulatory. strategic risks include the Schcol not being seen as a positive, modem organisation and it failing to provide education services that are attractive to parents and thus being unable to maintain pupil numbers. These are cntical to the charitys aims to provide education and leaming opportunities to children in the Binningham 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, particularfy from fee income and investmenis. School fee increases are Garefully considered in conjunction wrth 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 1th regulatory requirements induding 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 and all existing policies were amended. The Govemors 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 detsiled in our Strategic Frarnework do¢ument the school has undertaken to: Reduce our carbon footprint and move towards lower overall emissions Ensure all future estale projects adhere to our sustainable strategic aims Educate and emp0vr pupils to take positive action on sustainability initiatives. Instil a whole school approach to the core principles of sustainability: Refuse, Reduce, Reuse, Repurpose and Recyde. PENSION LIABILITY The Govemors recognise the liabilty existing in the Pensions Trust pension scheme for non-teaching staff. The Govemors are satisfied that exists.ng cash flows are SLrfficient to meet any anticipated increases in costs. Pension costs have been reported wthin the accounts in accordance with aCUnting standard FRS 102. For our non- teaching and support stsff we offer a money purchase pEan (defined contribution scheme). Page 9
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmlted by guarantee) GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 RESERVES The Govemot5 regularly revie4V 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 £22,400.727 induded £1,675,745 of unrestricted general re5eNes and £5,101,658 of designated funds plu5 a permanent endowment of £15.612,472. The Govemors designate unrestricted funds to fund fiJture specific projects. The Governors are planning to invest substantial sums into new facilities and upgrades in the next fNe years. with a view to further improving the facilities. The Governors consider that. given the strenglh of the ¢hariWs 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 extemal funding for these projects. The Governors aim to ensure that the School has sufficient resourGes available to suppori the working capital requirements of the core aclivtiies of the School in unforeseen Circumstances, giving sufficient time to allow fir¢ancial policy to adapt to any new circumstances. These working capital reserves equate to approximately one temi's total expenditure, £3 million. Restricted funds are held for the benefrt of the chiklren for supporting leaming needs and co-curricular acttvities 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 nel book value of our tangible assets, propety, plant and equipment was £8,258,820. CHARITY GOVERNANCE CODE The Govemors are aware of the new charity govemance 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 Govemors (who are also directors of The Blue Coat School Birmingham Limited for the purposes of company law) are responsible for preparing the Govemors. report and the finanaal statements in accordance with applicable law and United Kingdom Accounting Standards (United ngdorn Generally Accepted Accounting Practice). Company law requires the Govemors to prepare finanoal statements for each financial year. Under company law the Governors must not approve the financial ststements 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 Govemors are required to: select suitable arxounting policies and then appty them consistently. observe the methods and principles in the ChaTilies SORP {FRS 102): make judgements and eslimales that are reasonable and prudent; state whether applicable UK accounting standards have been followed, subjeci to any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concem basis unl8SS it is inappropriate to presume that Ihe Group will Continue in operation. Page 10
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmlted by guarantee) GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 The Govemors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the Group's transactions and disG105e with reasonable accuracy at any time the financial position of the charitable Group and enable Ihem to ensure that Ihe financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitsble 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 Govemors at the time when the Govemors, 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 Govemor in order to be aware of any relevant audit information and lo establish that the charitsble Group's auditor is aware of ihat infomiation. 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 Govemors and signèd on their behalf by.. Mrs K Gilmore DPSN RGN HV Chair of Govemors Date: Page11
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limlted by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024 Unrestricted funds 2024 Reslrlcted Endowment funds funds 2024 2024 Total funds 2024 Total funds 2023 Note Income and endowments from: Donations and legacies Charitable activities.. School fees Ancillary trading income Investments 10,325 27,920 38.245 40,264 8,905.767 629.694 600.915 8,905,767 629,694 600,915 7.874,472 633,857 530,045 Total income and endowments 10,146,701 27,920 10,174,621 9.078,632 Expenditure on: Raising funds: Financing cosls Charitable activities: Education and grant making 1431) (833) 9.724.983 11.969 160,687 9,897.639 9,033.428 Total expendlture 9,724.552 11,969 160.687 9,897,208 9,032,595 Net incomellexpenditure) before net galnsl(losses) on Investments Net gainslllossesl on investments Net movement in funds before other recognised galns 422.149 15,951 (160,687) 277,413 46,037 186,551 648.214 834,765 (297,326) 608.700 15,951 487.527 1.112,178 (251,289) Other recognised gains: Actuarial gains on defined benefit pension schemes 28 64 Net movement in funds 608,700 15.951 487,527 1.112,178 (251,225) Page 16
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 2024 Unrestrfcted funds 2024 Restricted End0ent funds funds 2024 2024 Total funds 2024 Tofal funds 2023 Note Reconclllatlon of funds". Total funds brought forward Net movement in funds 6,168,703 fJ08,700 (5.099) 15.951 15.124.94S 21.288,549 487,527 1.112,178 21, 539, 774 (251,225) Total funds carried forward .777.403 10,852 15.612,472 22,400,727 21,288,549 The Statement of Financial Activities includes all gains and losses recognised in the ar. The notes on pages 21 to 51 form part of these financial statements. Page 17
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED <A company limited by guarantee) REGISTERED NUMBER: 08502615 BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Note Flxed assets Tangible assets Investments 13 8.258,820 12.070,284 1.415,000 6,675,585 13.235,519 1,415.000 15 Investment property 14 21,744,104 21,326, 104 Current assets Debtors Short term investments 16 17 482.522 2,072.974 1.071.246 466.540 Cash at bank and in hand 1,563,883 3.626.742 2,030.423 Creditors: amounts falling due within one year 18 12,970.1191 (2,066.267) Net current assets l (liabilites) 656.623 (35.844) Total assets less current liabilities 22,400,727 21,290,260 Creditors: amounts falling due after more than one year 19 (1. 711) Total net assets 22.400.727 21.288,549 Page 18
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) REGISTERED NUMBER: 08502615 BALANCE SHEEf (CONTINUED) AS AT 31 AUGUST 2024 2024 2023 Note Charfty funds End¢)wment funds Restricted funds Unrestricted funds 22 22 15.612.472 10,852 6.777,403 15. 124.945 (5.099) 6. 168. 703 Total funds 22,400,727 21,288,549 The Govemors 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 behatt by: Mrs K Gllmore DPSN RGN HV (Chair of Governors) Date: The notes on pages 21 to 51 fomi part of these financial statements. Page 19
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmlted by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Note Cash flows from operating activities Net cash used in operating activities 24 986,528 (102,365) Cash flows from investing aclivities Dividends, interests and rents from investrnents Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Proceeds from sale of investments 600,915 530,045 3,250 1.950 (2.010,356) (234,236) 2,000,000 Net cash provided by investing athities 593,809 297,759 Change in cash and cash equlvalents in the year Cash and cash equivalents at the beginning of the r 1,580.337 195.394 1,563.883 1.368,489 Cash and cash equivalents at the end of the year 25 3,144.220 1,563.883 The noles on pages 21 to 51 fomi part of these financial ststements Page 20
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 General Infonnation The company is a company limited by guarantee (registered number 08502615). which is incorporaled 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, Edgbaslon. Bimiingham. B17 OHR. 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 Direclion 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 Govemors named on page 1. In the event of the company being wound up. the liability in respect of the guarantee is limiled to £1 per member of the company. Accountlng pollcles 2.1 Basi5 of preparation of finanelal statements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Staternent of Recommended Practice applicable lo 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 FinanGial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Blue Coat School Biryningham Limtted meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwse stated in the relevant accounting policy. 2.2 Going concern The finanrAal statements have been prepared on a going concem 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 expendtture for 12 months from auth0ri5ing 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 concem. 2.3 Fund accounting General funds are unrestricted fiJnd5 which are available for use at the discretion of the Governors in furtherance of the general objeclives of the Company and which have not been designated for other purposes. Designated fijnds comprise unrestricted funds thal have been set aside by the Governors for particular PUTPOS8S. The aim and use of each designated fund is set out in the notes to the financial ststements. 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 specffic fvnd. The airn and use of each restricted fund is set out in the notes to the financial statements. Page 21
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A Company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (continued) 2.3 Fund accounting {continued) Endowment funds represent those assets which must be held pemianently by the charity, principally investments and deposits. Income arising on the endowmenl funds can be used in accordance wth 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 fijnds are all held by the subsidiary charity The Blue Coat School Birningham. 2.4 Income Al incorning SoUrceS are induded in the Statement of Financial Activities when the charity is legally entitled to the income afler any performance conditions have been met. the amount can be measured reliably and it is probable that the income will be reIved. Donatlons and legacles For donations to be recognised the charity wll have been notified of the amounts and the settlement date in writing. If there are condttions atlached 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 condiitons is within the control of the Charity and it is probable that they will be fulfilled. Donated facilities and donated professional services are rewnised in income at their fair value when their economic benefrt is probable. it can be measured lIablY, and Ihe 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 15 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 induded at fair value. They are not defeed over the life of the asseL For legaaes, entitlement is the eadier of the charity being notified of an impending distribution or the legacy being reIved. At this point income is recognised. On occasion legacies will be nottfied 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 slmllar Income Fees receivable and charges for services and use of pMIseS are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other r8missions granted by the school from ils unrestricted funds. Where income is received in advance it is treated as defeed income and induded within creditors. Income from trading activities Income from trading adivities includes income earned from fundraising everrts and trading activities to raise funds for Ihe charity. Income is received in exchange for supplying services in order to raise funds and is reGognised 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 22
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng policies (continued) 2.4 Income Icontinued) management costs incurred wilhin a scheme Vth asOnable 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 Inte$t method and dividend and rent income is recognised as the Charits right to receive paent is established. Other income is recognised in the period in which it is recervable 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 Wtll 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 ¢haritable activities" Other expenditure represents those items not falling into the categories above. Charitable expènditure comprises those costs InJ[Ted 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 statLrtory requirements of The Blue Coat School Binningham Limited and its subsidiaries, this includes audit fees. All costs are allocated behyeen 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 diredy 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 paty, 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 a¢tivty- The costs of each activty are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activty. Direct costs attributable to a single activity are allocated directly to that aGtivity. Shared costs which contribute to more than one activty and support costs which are nol attributable io a single activty are apportioned between those activities on a basis consislenl with the use of re50urc8s. Central staff costs are allocated on the basi5 of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on raising funds includes all expendTture incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitsble trading. Expenditure on charitable activilie5 is InCued on directty undertaking the activities which further the Companys objectives. as well as any associated support costs. Page 23
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng policies (continued) 2.6 Tangible fixed assets and depreciation Tangible fixed assets costing £2.000 or more are capitslised 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. Afler recognition, under the cost model, langible fixed assets are measured at st less accumulated depreriation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its inlended 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. Depreriation is provided on the following bases-. Freehold property Fixtures and equipment Motor vehides Computer equiPnt 1.5% _ 200h Straight Line 10Yo - 20/0 Straight Line 20P Strdight line 100kn . 33.3% Straight Line Depwiation is not charged on freehold land. 2.7 Invèstment property Investment properties are measured at fair value at each reporting date wrth changes in fair value recognised in the heading 'Gainslllosses} on investments, in the Ststement of financial activities. No depreciation is charged on investrnents 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 impaimient. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl(Losses) on investrnents, in the Statement of financial activities. Investments in subsidiaries are valued at cost less provision for impairment. Cash held on deposit with term5 of less than one year are classed as short tenn investments within current assets. 2.9 Operating leases Rentals paid under operating leases are charged to the Statement of financial activities on a straight- line basis over the lease term. 2.10 Debtors Trade and other debtors are recognised at Ihe settlement amount after any trade dis¢ount offered. PrepayThents are valued at the amount prepaid net of any trade discounts due. Page 24
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 A¢countlng pollcies (continued) 2.11 Cash at bank and in hand Cash at bank and in hand indudes cash and short-temi highly liquid investments with a short maturity of three months or less from the date of acquisttion or opening of the deposit or similar account. 2.12 Llabilities and provisions Liabilities are reccyJnised when there is an obligation at the Balance sheet date as a result of a past event. it is probable thal a transfer of economic benefft 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 ll11 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 malerial. the provision is based on the present value of those amounts, discounted al the pre-tax discount rate that reflects the risks specific to the liabilty. 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 al 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 Taxatlon 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 lax purposes. Accordingly, the Company 15 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 exdusively to thariiable purposes. 2.15 Pensions Retirement benefits to teachers employed by the school are provided by the Teachers, Pension Scheme {TPS'). This is a defined benefrt 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 per¢entage 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*mployer scheme and there is insufficient infomation available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounts'ng purposes and the contributions recognised in the period to which they relate. Page 25
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Critlcal accountlng estimates and areas of Judgement Estimates and judgements are continualty evaluated and are based on historical experience and 0th8r factors, including expectations of future events that are believed to be reasonable under the circumstsnces. Critical a¢UntIng estimates and assumptions: The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions wll, by definition, seldom equal the related aclual 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 nexl financial year are discussed below. In preparing these financial statemenls. the Governors have made Ihe following judgements: Investment properties Investment properties a valued on the basÉs 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 exient that they are judged recoverable. Management reviews are performed to estimate the level of resources required for irrecoverable debt. Provisions are made speaficalty against invoices where recoverability is unortain. Management makes alk)wance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied lo debtors where events or changes in circumstsnces 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 proVisn for doubtful debts. Where the expectstion is differenl from the 0ri9inal estimate. such difference 11 impact the (xrrying value of debtors and the charge in the Statement of finanrial activities. Page 26
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Income from donations and legacles Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Donations 10,325 27,920 38.245 40,264 Total 2024 10.325 27,920 38.245 40,264 Tot812023 8,800 31.464 40.264 Charitable activities - School fees 2024 2023 Gross tuition fees Less: Awards, scholarships and bursaries from unrestricted funds Less.. Fee discounts 9,467,969 (383.797) (178,405) 8.358,551 (340, 586) (143,493) 8,905.767 7.874,472 Awards, scholarships and bursaries were paid to 52 pupils (2023 - 51 pupils). Within this were means tested bursaries totalling £283.648 paid to 22 pupils (2023 - £246,813 to 22 pupils). The total income from school fees is unrestricted in both years. Charitable activities - Other ancillary tradlng Income 2024 2023 Extra-cutricular activities Registration fees School trips Other income 291,276 11.200 241.825 85,393 285. 737 10,200 221,819 116,095 629,694 633,851 The totsl ancillary trading income is unrestriGted in both years. Page 27
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Investment Income Unrestricted funds 2024 Total funds 2024 Tofal funds 2023 Rentsl income Dividend in¢ome Deposit account interest 91.049 336.854 173.012 91,049 336,854 173,012 85,121 386,844 58.080 Total 2024 600,915 600.915 530.045 Total 2023 530.045 530.045 Expènditufe on ralsing funds - Financing costs Unrestrlcl•d funds 2024 Total fvnds 2024 Total funds 2023 Bad debt (incomeyGosts Propety management fees (431) (431) (3,499) 2, 666 Total 2024 {431) (833) Total 2023 (833) (833) Page 28
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED <A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Analysis of expenditure on charitable activities Summary by fund type Unrestricted Restrfcted Endowment funds funds funds 2024 2024 2024 Total 2024 Tofal 2023 Teaching Catering Premises Support and goveman¢e 5.539.050 629,291 2.268.865 1.287,777 11,969 160,687 5,711,706 629.291 2.268.865 1.287.777 5. 104,458 576, 906 2,076,594 1,275,470 Total 2024 9.724.983 11,969 160.687 9,897,639 9,033,428 Total 2023 8.831.671 41.586 160.171 9,033.428 Summary by expenditure type Staff costs Depreciation Other costs 2024 2024 2024 Total 2024 Total 2023 Teaching Catering Premises 4.635.841 259.915 815,950 629.291 1,655.893 526.993 5.711.706 629.291 2,268.865 1.287.777 5, 104,458 576,906 2,076,594 1.275.470 461,642 744.908 151,330 15.876 Support and goveman Total 2024 5.842.391 427,121 3.628,127 9,897,639 9.033,428 Total 2023 5.343,283 382.206 3.307.939 9,033,428 Page 29
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 10. Audltorfs remuneration 2024 2023 Fees payable to the CoMpanS auditor for the audit of the COmpanS annual aGcounts 20,790 21,400 Fees payable to the Companys auditor in respect of: Accountsncy seNices 3.250 3,350 11. staff costs 2024 2023 Wages and salaries Social security costs Contribution to pension schemes 4,489.248 435.656 917.487 4.206,780 407.913 728,590 5.842,391 5,343,283 The average number of persons employEd by the Company during the year was as follows: 2024 No. 2023 No. Teaching staff Teaching support Support staff 63 38 38 38 147 139 Page 30
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED
(A company Ilmlted by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
11. Stsff costs (continuedl
The number of employees whose employee benefits
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 13. Tanglble flxed assets Freehold Assets school Fixtures and Computer School under premises equipment equipment Minibus construction Total Cost or valuation At 1 September 2023 AddOnS Disposals 9,820.934 64.730 177.691 17.800 788.624 65,499 300,579 (3,250) 46,711 10,899,459 1,627,247 2.010,356 13,2501 At 31 August 2024 9,885,664 195,491 1,085,953 65,499 1,673.958 12,906,565 Depreciation At 1 September 2023 Charge for the year On disposals 3.441,471 303,841 145.937 12.055 591.195 104,290 (3,250) 45,271 6,935 4,223.874 427.121 (3,250) At 31 August 2024 3.745.312 157.992 692,235 52,206 4,647,745 Net book value At 31 August 2024 6,140.352 37.499 393.718 13,293 1.673.958 8,258,820 At 31 August 2023 6.379,463 31.754 197.429 20,228 46.711 6.675,585 Page 32
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmfted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14. Investmenl property Freehold investment property Valuation At 1 September 2023 1,415.000 At 31 August 2024 1,415,000 Comprising.. 2024 2023 416 Binningham Road. Wylde Green 119-120 Glover Street 256 Harbome Road, Edgbaston 435,000 130,000 850.000 435,000 130.000 850,000 1.415.000 1.415,000 The inveslrnent property consists of buildings hekl for investment purposes and are not used in the School's own adivitiès, both residential and industrial property are held and are let out on the open Market. The Properties located at 416 Binningham Road, and 119-120 Glover Streel Vre revalued by Burley Browne Chartered SurveyDrs in Octer 2022. The propety located at 256 Hart)ome Road were revalued by Fishers (Hart)ome) Limited in November 2022. The Govemors 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 33
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15. Flxed asset investrnents Investments in subsidiary company Investments Total Cost or valuation At 1 September 2023 Disposals Revaluations 100 13.235,419 13,235,519 (2.000,000) (2,000.000) 834,765 834.765 At 31 August 2024 100 12.070,184 12,070,284 Net book value At 31 August 2024 100 12.070.184 12,070,284 At 31 August 2023 100 13,235.419 13,235.519 Investments comprise: 2024 2023 Charities Official Investment Fund - Income shares 12,070,184 13,235,419 Page 34
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15. Fixed asset Investrnents (continued) Prin¢ipal subsldlarles The following was a subsidiary Undertang of the Company. Name Company Reglstered office or Prlnclpal activlty Class of Holdlng number principal place of shares business BCS Enterprises Limited 09109064 The Blue Coat School Dormant in Birmingham current year Somerset Road Edgbaston Bimiingham 817 OHR. Ordinary 100% The financial results of the subsidiary for the year were: Nam• Net assets BCS Enterprises Limited 100 16. Dèbtors 2024 2023 Trade debtors Other debtors and accrued income Prepayments 192.678 177,363 112.481 210,710 146,627 109,203 482,522 466, 540 An impairment loss of £2.236 (2Q23 - £2,667) was recognised against fee debtors. 17. Current asset investments 2024 2023 CCLA deposii account 2,072,974 Page 35
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 18. Creditors: Amounts falling due within one year 2024 2023 Trade creditors Other taxation and social security Fees in advance (note 20) Deposits (note 21) Pension liabilty Accruals and other Creditors 300.839 95.841 1,059,917 201.300 1.949 1.310,273 452,009 98,189 915.611 191,650 4,716 404,092 2,970.119 2,066.267 19. Creditors: Amounts falling due after more than one year 2024 2023 Pension liabilty 1,711 20. Fees In advance Movement of fees in advan. 2024 2023 Balance at 1 September New advance fees rèceived Amounts utilised in paynents 915.611 1.059.917 (915.611) 725, 780 915.611 (725, 780) Balance as at 31 August 1,059,917 915,611 Page 36
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 21. Fee deposits Movement of fee deposits: 2024 2023 Balance at 1 September New deposits reIVed Deposits utilised 191.650 42.600 (32,950) 187.850 34,500 (30, 700) Balance as at 31 August 201,300 191,650 The Govemors have reviewed the temis of the deposits which are held by the sthool. Under nonnal circumstances these will be repaid over future years when the pupils complete their education with the school, however pupils can leave at any date. Therefore, the school has no conditional right to retain the deposits for at least 12 monlhs after the reporung date. in line with the requiremenls of FRS 102. As such. the balance of all deposits held at 31 August 2024 have been included within Creditors due within one year. Page 37
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 22. Statement of funds Statement of funds - current yèar Balance at 1 September 2023 Balance at Galnsl 31 August (Losses) 2024 Transfers Inl(out) Income Expenditure Unrestricted funds Designated funds Extraordinary repair fund Loppyfugs & Barbara Morrison Trust School nursery and four classroom block New build fund Foundation fund 680.044 120.000 800.044 10,325 10.325 2.519.783 1.205.000 302.502 120.000 120.000 393,724 2,639,783 1.325.000 326,506 (369.720) 4.707,329 10.325 (369,720) 753,724 5,101,658 Genoral funds General Funds - all funds 1,461.374 10,136,376 (9,354,832) (753,724) 186.551 1,675,745 Total Unrestricted funds 6,168.703 10,146.701 {9,724.552) 186.551 6.777.403 Endowment funds Endowment Funds- all funds 15.124,945 (160.68n 648.214 15,612,472 Page 38
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmlted by guarantv> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 22. Statement of funds {continued) Balance at 1 September 2023 Balance at Galnsl 31 August (Losses) 2024 Transfers inl{out) Income Expenditure Restricted funds Diana Willis memorial prize Limoges Twst John Avins Trust Reginal FaTrar Fund Association of Friends BCS Haffield Fund Chris Byme Memorial Prize Fund King Fund Girls Cricket Fund 165 (7.313) 165 12,500 2.000 (76) 2,000 506 506 458 11,435 (11,893) 315 315 120 150 120 150 500 500 Kathleen Morrison Fund 1.985 1,985 (5.099) 27.920 {11.969) 10,852 Total of funds 21,288.549 10,174.621 (9.897,208) 834,765 22,400,727 Page 39
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 22. Statement of funds (contlnued) Statement of funds - prlor year Balance al 1 September 2022 Balance at 31 Augusl 2023 Transfers in/{out) Gain (Losses) Income Expenditure Unrestricted funds Designated fund$ Extraordinary repair fund Loppylugs & Barbara Morrison Trust School nursery and four classroom block New build fund Foundation fund Old Scho18r Donation 575.545 104.499 680,044 8.800 (16.800) 2.399. 783 1.085,000 263.443 120.000 120.000 372.819 2,519,783 1,205,000 302,502 (333. 760) 1.326 (1.326) 4.333.097 8,800 (351.886) 717.318 4. 707.329 General funds General Funds - all funds 1,699.510 9.038.368 (&478.952) (732.819) (64, 733) 1,461.374 Total Unrestri¢ted funds 6.032,607 9.047. 168 (8,830.838) (15.501) (64, 733) 6, 168.703 Page 40
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 22. Statement of funds (continued) Balance at 1 September 2022 Balance al 31 August 2023 Transfers in/(out) Gain (Losses) Income Expenditure Endowrnènt funds Endowment Funds - all funds 15,502.144 (160. 171) 15.501 (232,529) 15,124,945 Restricted funds Diana Willis memorial prize Limoges Trust John Awns Trust Grand piano Sir John Saville Trust Reginal Farrar Fund Association of Friends BCS Haffield Fund Chris Byme Memorial Prize Fund 165 165 {7.313) 6,924 (14.237) (4,939) (200J 2.939 200 18,000 (18.000) 506 506 413 (3,955) (255) 458 530 40 315 120 120 150 King Fund Girfs Cricket Fund 150 500 500 5.023 31.464 (41.586) (5,099) Total of funds 21.539.774 9.078,632 (9.032.595) (297,262) 21,288.549 Page 41
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 22. Summary of funds (contlnued) DESIGNATED FUNDS Extraordinary repair fund - In accordan with the lemis 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 schoofs property. The GovemoTS have made a transfers in of £120.000 (2023 £120,01} this year to the fund to finance repairs and transfers out of £NIL {2023- £15.501) to fund capital works on the d)apel and the new science building. Loppylugs and Barbara Morrison Charitable Trust - This donation is available for use at the Headmasterfs discretion taking onto account the donors. interests. School Nursery and Four4lassroom block - Fund set aside by the Govemors 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 wll be charged to it. The Govemors have made a transfers of £120.000 (2023 - £120.000) this year to the fund. New Bulld Fund - The Govemors have agreed to set aside a sum of money annually to reflect the use of endowmenl funds which were expended on the SchcM)l Nursery and Four Classroom Block. The Govemors have made a transfers of £120,000 (2023 - £120,000) this year to the fund. Foundatlon fund Designated - The Govemors have agreed to set aside annually a sum equal to not less than 50/9 of the net fee income of Ihe previous financial year. The amount set aside is to be applied in the provision of places at the schwl for children of merit and good character who are in need of financial assistsnce, and supporting stste sector schools in need of additional support to enhan teaching and learning. In the current year the amounts set aside totalled £393,724 (2023 - £372,819) and amounts advanced to pupils totslled £289,796 (2023 - £255,520). The value of support provided to state sector schools amounted to £79.924 (2023 - £78.240). Old Scholar Donation - Donation in memory of Mr Emest Jones to be spent as seen fit. ENDOWMENT FUNDS The Permanent endowment fund has to be held by the Blue Coat School Bimingham (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- Page 42
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 22. Summary of funds (continued) RESTRICTED FUNDS Diana Wllls memorial prize This prize fund was set up a fonner teacher lo reward a pupil's reading ability. The fund was to be used to provide one book prize a sear. Limoges Trust - Grants received lo further the development of musical drama within Ihe schc¥ol. The John Avins Trust - Fund provided for equipment and resources for the benefil of gifted children in need of financial support within the school. Grand Plano 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 depreaation of the asset will be charged to it. Slr John Saville Trust - Funds provided by Mr John Saville towards the ntInued 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 equipmenL resources and entertainment for the pupils. Haffield fund - Donation towards bursaries. Chris Byrne Memorial Prize Fund - To fund a tK)ok prize at annual prize giving. King Fund - Donation toward the bursaries. Girls Cricket Fund - Funding reiVed to promole Girls Cricket at the School. Kathleen Morrison Fund - To fund a prize al the annual prize giving. Page 43
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 22. Summary offvnds (continued) Summary of funds - ¢urrent year Balance at 1 September 2023 Balance at Gainsl 31 August (Losses) 2024 Transfers Inl(out) Income Expenditure Designated funds General funds Endowment funds Restricted funds 4,707.329 10,325 1369,720) 753,724 1.461.374 10.136.376 19,354.832) (753.724) 5,101,658 1,675.745 186.551 15,124.945 (5,099) (160.687) (11,969) 648.214 15,612,472 10.852 27.920 21,288,549 10.174.621 {9.897,208) 834.765 22,400,727 Summary of funds - prior year Balance al I September 2022 Balance al 31 Augusl 2023 Transfers in/(outJ Gain (Losses) Income Expenditure Designated funds General funds Endowment funds Restricted funds 4.333.097 1,699.510 8.800 9.038.368 (351.886) (8.478,952) 717,318 (732.819) 4, 707.329 1,461,374 (64. 733) 15.502.144 5.023 (160.171) (41.586) 15.501 (232,529) 15, 124,945 (5,099) 31.464 21.539.774 9.078,632 (9.032.595) (297.262) 21.288,549 Page 44
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 23. Analysls of net assets between funds Analysls of net assets between funds - current period Unrestricted fund$ 2024 Restricted Endowment funds funds 2024 2024 Total funds 2024 Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one Jear 3.087,913 4.521.955 5,170,907 8,2S8,820 7.548,329 12,070,284 1,415,000 1,415,000 2,072.974 3,543,034 (594,738) (2,886,411) 1.459,208 (2,291,673) 10.852 Total 6.777.403 10.852 15,612.472 22,400.727 Analysis of net assets between funds - prior period Unrestricfed funds 2023 Restricted Endowment funds ftinds 2023 2023 Total funds 2023 Tangible fixed assets Fixed asset investments Investment property Cuent assets Creditors due within one year Creditors due in more than one year 3.017.949 3. 183.210 3,657,636 6.675.585 10,052.309 13.235.519 1.415.000 1,415,000 2,030.423 (2,066,267) (1, 711) 1030.423 (2.061, 168) (1. 711) {5,099) Total 6. 168, 703 (5,099) 15, 124,945 21,288, 549 Page 45
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 24. Reconciliation of net movement in funds to net cash flow from operating a¢tlvltles 2024 2023 Net incomelexpenditure lor period (as per Statement of Financial Activilies 1,112.178 (251.289) Adjustments for: Depreciation charges (Gainsylosses on investments (induding investment property) Dividends, interests and rents from investments Profit on the sale of fixed assets Increase in debtors 427.121 {834.765) (600.91 S) 13.250) 115,982) 906,619 14N78) 382.206 297,326 (530.045) (1.920) (139,266) 140,559 Increase in creditors Pension scheme Net cash provided byl(used in) operating activities 986.528 (102,365) 25. Analysls of cash and cash equlvalents 2024 2023 Cash at bank and in hand CCLA deposit account 1,071.246 2.072,974 1.563,883 Total cash and cash èqulvalents 3,144.220 1,563, 883 26. Analysis of changes In net debt September At31 2023 Cash flows August 2024 Cash at bank and in hand CCLA deposit account 1,563,883 (492,637) 2,072,974 1.071.246 2,072,974 1.563,883 1.580,337 3,144,220 Page 46
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 27. Capitsl commltmentS 2024 2023 Contracted for but not provided in these financlal statements AGqui5ition of tangible fixed assets 256.778 184,839 28. Pension commltments The school's employees belong to Nvo 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 contrtbutes lo the personal pension plans of certain employees. Teachers, Pension Scheme England and Wales (Ihe TPS.) The School participates in the Teachers, Pension Scheme (Ihe TPS.) for its teaching stsff. The pension charge for the year indudes contributions payable to the TPS of £793,714 (2023 - £639. 714) and at the yearond £90.124 (2023 - £71. 503) was accrued in respect of contributions to this scheme. The TPS is an unfunded rnulti-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 olher pension benefits are paid by public fijnds provided by Padiament. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government ActuaS Department. The most rent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report. which was published in October 2023. Following the Mccloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the refomied or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation have valued the 'greater value. benefits for groups of relevant members. The employer contribution rate for the TPS is 28.6DA. and employers are also required to pay a sch8me administration levy of 0.08Ya giving a total employer contribution rate of 28.68%. Page 47
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 28. Pension commitments (contlnued) The Pension Trust The school partictpates in the scheme. a multiomployer scheme which provides benefits lo some 638 non-associated participating employers. The scheme is a defined benefit scherne in the UK. It is not possible for the company to obtain sufficient infonnation to enable it to account for the scheme as a defined benefit scheme. Therefore, li accounts for the scherne as a defined contribution SGheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 vthich came into force on 30 December 2005. This. together wth doojments issued by the Pensions Regulalor and Technical Actuarial Standards issued by the Financial Reporting Council. set out the framework for fvnding defined benefit occupation pension schemes in the UK. The scheme is dassified as a 'last-man standing arrangemenv. Therefo the company is potentially liable for other participating employers. obligations if those employers are unable to meet their share of the scherne deficit following wilhdrawal from the scheme. Participating ernployers are legally required to meet their share of Ihe scheme deficit on an annijity purchase basis on withdrawal from the 5¢heme. 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 elirninate this fvnding shortfall, the Trustee has asked the participating employers to pay additional contributions to the s¢heme as follows.. Defjcit contribullons 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 tern to 31 January 2025 applies. Note that the scheme's previous valuation was carried out Wtth an effective dale of 30 September 2017. This valuation showed assets of £794.9rn, liabilities of £926.4m and a defiat of £131.5m. To eliminate this funding shortfall, the Trustee has asked the partictpating employers to pay additional contributions to the scherne as follows: Deficit contributions From 1 April 2019 to 30 September 2025 £11.243,000 per annum (payable monthly and increasing by 30A each on 1st April) The recovery plan CA)ntributions 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 undef the agreement that relates to the defictt. The present value is calculated using the discount rate detailed in these disdosures. The unwinding of the discount rate is recognised as a finan cost. Presenl value of provision 31 August 2024 31 August 2023 31 August 2022 Present value of provision Page 48
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Reconciliation of opening and closing provlslons 2024 2023 Provision at start of period Unwinding of the discount factor (interest expense) Deficit contribution paid Remeasurements- impact of any change in assumptions ReMeasUrnents - amendments to the contribution hedUle 6.427 235 14.716) 10,836 371 (4, 716) (64) Provislon at the end of period 1,949 6,427 Pension commitments (continued) Income and expendlture Impact 2024 2023 Interest expense Remeasurements - impact of any change in assumptions RemeasureTnents - amendments to the contribution schedule 235 371 (64) Costs recognlsed In Income and expenditure account 238 307 31 August 31 August 31 August 2024 0/0 per 2023 11/0 pèr 2022 °A per annum annum annum Rate of discount 5.13 4.46 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 weld curve to discount the same recovery plan contributions. The pension charge for the year includes contributions payable to The Pension Trust scheme of £123,773 (2023 - £88,812) and at the year4nd £1.949 (2023 - £6.681) was accru8d in respect of contributions to this scheme. Page 49
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 29. Operating lease commltments At 31 August 2024 the Company had commitrnents to make future rninimum leas8 payments under non- cancellable operating leases as follows: 2024 2023 Not later than 1 year Later than 1 year and not later than 5 years 10,578 17,801 13.080 10.578 30,881 The following lease payments have been recognised as an expense in the Statement of financial activities= 2024 2023 Operaling lease rentals 12,592 17,716 At 31 August 2024 the total of the group's future minimum lease income receivable under non- cancellable operating leases was- 2024 2023 Within 1 year Beeen 1 and 5 years Greater than 5 years 6.500 18.400 70.917 33.517 18,400 75,517 95.817 127,434 30. Security Included within cash at bank are amounts of £178.244 (2023 - £178,244) held as a guarantee to the Secretary of State to cover all liabilities arising out of The Blue Coat School Bimingham Limited's application to be an accepted school under regulation 134{1)(b) of the Teachers. Pensions Regulations 2010. Page 50
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company Ilmfted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 31. Financlal Instruments 2024 2023 Flnancial assets Financial assets measured al fair value through income and expenditure 13,485.284 14,650,519 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 sumrnarised below: 2024 2023 Total investment income for financial assets measured at fair value through income and expenditure Net gainsl(losses) on financial assets rneasud at fair value through income and expenditure Impaimient gains on financial assets measured at amortised cost 600,915 530,045 834,765 431 (297,326) 3,499 32. Related party transactions During the year ended 31 August 2024. the value of payroll costs paid to close family members of Key Management Personnel. deemed related parties. was £96,197 (2023- £86.816J. The School Govemor5 includes a parent. and grandparent of pupils cUentlY at the school. During the year they were charged School Fees on normal ¢ommercial temis. The balance outstanding at the year end amounted to £NIL (2023 - £920). Three members of the Senior Leadership Team are parents of pupils currently at the school. During the year. they were charged School Fees, discounted by the rate each staff member is eligible for per the temis of their employrnent. The balance outstanding at the year end was £1,859 (2023 - £1.439). During the year ended 31 August 2024. donations were reiVed by the Limoges Charitable Trust of £8.750, (2023 - £5.750) a charity for which M H Dyke and A Milner. Govemors, are Trustees. These donations were restricted and were recognised within the Limoges Trust Restricted Fund during the year5 in which they were received. During the year ended 31 August 2024. staff time valued at £79.924 (2023 - £78.420) was donated to Bimingham Diocesan Multi Academy Trust, an Entity for which Govemor Rev. M Thompson f5 also a Governor. This expendiiure has been allocated to the Foundation Designated Fund. Page 51
THE BLUE COAT SCHOOL BIRMINGHAM LIMITED (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BLUE COAT SCHOOL BIRMINGHAM LIMrrED (CONTINUED) Other inforniation The other infomation comprises the infomiation induded in the Annual report olher than the financial statements and our Auditorfs report thereon. The Govemors 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. ¥ do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so. consider whether the other information is materially inconsistent wtth 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 misststements, we are required to detemiine whether this gives rise to a material misstatement in the financial statements themsees. If, based on the work we have perfomed, we conclude that there is a material misststement of this other infomation, we are required to report that fact. We have nothing to report in this regard. Oplnlon on other matters prescrlbed by the Companles Act 2006 In our opinion. based on the work undertaken in Ihe course of the audiL" the infomation given in the Govemors, Report induding the Strategic Report for the financial year for which the financial statements are prepared is consislent with the financial statement5. the Govemors. 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 understandin9 of the charitable company and its environment obtained in the course of the audit. we have not identified material misststements in the Govemofs, Report induding the StrategiG ReporL We have nothing to report in respect of the followng 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 retums adequate for our audit have not been received from branches not visited by us,. or the financial ststements are not in agreement with the accounting records and retums: or certain disdosures of Govemors, remuneration specified by law are not made; or bve have not received all the infornation and explanations we require for our audFi. Rèsponslblllties of trustees As explained more fully in the Govemors, responsibilities statement. the Govemors (who are also Ihe directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial stalements and for being satisfied that they give a tnje and fair view. and for such intemal control as the Govemors detennine is necessary to enable the preparation of financial statements that are free from materbal misstatement. whether due to fraud OT error. In preparing the financial statements. the Govemors are responsible for assessing the charitable companys ability to continue as a going concem. disdosing, as applicable. matters related to going conrn and using the going concem basis of accounting unless the Govemors either intend to liquidate the charitable company or to cease operations. or have no reaSistic altemative but to do so. 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 LIMrrED (CONTINUED) Auditor's responslbllities for the audit of the financlal statements Our objectives are to obtsin reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error. and to issue an Auditorfs report that includes our opinion. Reasonable assuran 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 Gould 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 responsibililies. outlined above. to delect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting IegUlaritieS. 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 detemiinalion of malerial amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006. taxation legislation, logether 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 fsnancial stalements but compliance with which might be fundamental to the charitable companls ability to operate or lo avoid a material penalty. We also considered the opportunities and incentives that may exist wilhin 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 regulabons 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 finanaal 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 lo respond to these risks induded enquiries ol management. and the Finance Committee about their own identification and assessment of the risks of iegUlar[tes, sample testing on the posb'ng of joumals. reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charty Commission, Independent Schools Inspectorate, Otsted and reading minutes of meetings of those charged wilh govemance. 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 fvrther 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 stsndards would identify it. In addition. as with any audit, there remained a higher risk of non-detection of irregL51arities, as these may involve collusion, forgery, intentional omissions. misrepresentations. or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance wilh all laws and regulations. A further description of our responsibilities for the audit of the financial slatemenis is located on the Financial Reporting Council's websiie at: www.frc.or .uklaudiiorsre onsibilities. This description fomis part of our Auditor's report. Page 14
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 CoMpanS members. as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit Vrk has been undertaken so that we might state to the charitsble compan¢s members those matters we are required to state to them in an Audttorfs report and for no other purpose. To the fullest extent pemiitted by law. we do not accept or assume responsibility to anyone other than the charitable company and its members. as a body. for c>ur audit work. for this report, or for the opinions we have formed. Helen Blundell LLB FCA FCIE DChA (Senlor statutory audltor) for and on behalf of Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands 869 2DG Date: Page 15