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2021-08-31-accounts

Report & Accounts For the year ended 31[st] August 2021

Middleton Hall Lane, Brentwood, Essex CM15 8EE Brentwood School is a Charitable Incorporated Organisation Charity Registration Number: 1153605

CONTENTS

CONTENTS
Page
Governors, Ofcers, Addresses and Advisors 1-4
Annual Report of the Governors (Including Strategic Report) 5-23
Statement of Governors’ Responsibilities 24
Independent Auditor’s Report 25-27
Consolidated Statement of Financial Activities 28-29
Consolidated and School Only Balance Sheet 30
Consolidated Cashfow Statement 31-32
Notes to the Accounts 33-51

GOVERNORS, OFFICERS, SCHOOL ADDRESSES AND ADVISORS

The Trustees are also Governors of Brentwood School, a Charitable Incorporated Organisation, registered charity number 1153605. The Governing Body is self-appointing. Service on the Board is for a term of five years or such shorter term as may be agreed by the Governors. Retiring Governors may be re-elected.

Since Brentwood School is a charitable trust, the Governors' role is as trustees of a legally-constituted board of the trust and also to plan the strategic objectives of the school, ensure its financial health and that the School conforms to legal requirements. Governors come from a range of backgrounds: leaders in the local community, professionals or retired experts in their field. Several Brentwood School Governors have an educational background and offer independent schools knowledge acquired over a lifetime in schools.

The members of the Governing Body who served in office as Governors during the year and subsequently are detailed below:

Governors of Brentwood School

Sir Michael Snyder DSc Hon FGS FCA FRSA (OB) Chairman

Chartered Accountant; Former Senior Partner Kingston Smith LLP, former Chairman of the Government’s Professional and Business Services Council and former Senior Independent Director, Metro Bank Plc. Common Councillor of the City of London Corporation and former Chairman of the Policy and Resources Committee

Mr Bob McLintock MSc DMS Dip Ed Vice Chairman

Former Chief Executive of Brentwood Borough Council; Vice Chairman of Active Essex; Trustee of Active Essex Foundation and Essex Cricket Foundation

Mr David Elms MA FCA FCSI Honorary Treasurer – Former Parent

Chartered Accountant; Managing Director, Ulmus Advisory Ltd; Chair Boom Radio Ltd; Senior Advisor to KPMG (former Partner)

Mr Paul Beresford FNAEA MARLA

Chairman of Beresfords Group Ltd; Director of Biminster Homes Ltd

Lord Black of Brentwood MA Hon FCIPR FRSA (OB)

Conservative Life Peer; Deputy Chairman of Telegraph Media Group Ltd; Chairman of The Royal College of Music; Chairman of the Commonwealth Press Union Trust

Mr Michael Bolton MBE BA (Hons) – until 13 March 2021

Retired Undermaster at Sevenoaks School; Chairman of Governors and former acting Headmaster at St Lawrence College, Ramsgate

Mrs Jasmin Bryan LLB CTA

Chartered Tax Adviser; Head of Tax, London & Quadrant Housing Trust

Mrs Susan Dalgarno MA PGCE JP

Magistrate; Trustee Chandran Foundation; Former Chair Genesis Community Foundation; Former Board Member Genesis Housing Group; Established mentoring and educational support network, East London; Retired teacher

Professor Bruce Evans BSc (Hons) PhD (OB) – Former Parent

Optometrist; Visiting Professor at London South Bank and City Universities; Director of Research, Institute of Optometry

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GOVERNORS, OFFICERS, SCHOOL ADDRESSES AND ADVISORS

Mr Jason Fergus – from 13[th] March 2021

Director of Active Essex; CEO of Active Essex Foundation; Non-Executive Director, University of Essex Campus Services Ltd; Former GB Athlete

Lord Flight of Worcester MA MBA (OB)

Working Conservative Peer; Former MP and Shadow Chief Secretary to the Treasury; Joint founder Guinness Flight and leading figure in the investment management industry and SME sector

Mr John Griffith-Jones MA ACA TD

Chartered Accountant, Chair of StepChange Debt Charity; Former Chairman of the Financial Conduct Authority and, previously, of KPMG in the UK

Mrs Amanda Hardy QC LLB (Hons), LLM (Tax), AKC – Current Parent

Barrister; Vice Chair of the Chancery Bar Association; Liveryman of the Worshipful Company of Tax Advisors

Mr Matthew Hampson BEng (Hons) FBCS – Current Parent

Deputy Chief Digital Officer, Nomura International; Liveryman of the Worshipful Company of Information Technologists; Fellow of the British Computer Society

Mr Sharath Jeevan MA BA (Hons) MBA MST – from 19[th] June 2021

Founder & Executive Chairman of Intrinsic Labs; Founder & Former CEO of STIR Education; Founding Chief Executive of Teaching Leaders (now Ambition School Leadership)

Mrs Jenny Jones BA (Hons) ARCM

Retired Head of Ipswich Prep School; Independent Consultant supporting IAPS Heads; Independent Schools Inspector

The Venerable David Lowman BD (Hons) AKC

Retired Archdeacon of Chelmsford; Former member of the General Synod of the Church of England; Trustee of The Sons and Friends of the Clergy

Ms Rosemary Martin MEd NPQH

Retired Headmistress of St Albans High School for Girls; Former Deputy Warden and Head of Forest Girls’ School; AGBIS Board Member

Mr Scott Norris BSc (Hons) (OB) – Former Parent

Farmer and Company Director; Chairman of Trustees, Perry Foundation; Liveryman of Worshipful Company of Farmers

Professor Christopher Tout MA PhD (OB)

Fellow and Senior Lecturer in Mathematics, Churchill College; John Couch Adams Astronomer, University of Cambridge

Cllr James Tumbridge CC MCIArb LLB (Hons) – Current Parent

Barrister and Partner of Venner Shipley; Common Councillor of the City of London; Mediator inter alia with the World Intellectual Property Organisation (WIPO)

‘OB’ denotes Old Brentwood

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GOVERNORS, OFFICERS, SCHOOL ADDRESSES AND ADVISORS

Governors’ Committees

Executive Committee (Six times a Year)

Sir Michael Snyder (Chairman) Mr Bob McLintock Mrs Amanda Hardy Mr Paul Beresford Lord Black of Brentwood Mr David Elms Mrs Rosemary Martin

Education Committee (Termly)

Mrs Rosemary Martin (Chairman) Mr Michael Bolton - to 13[th] March 2021 Mrs Susan Dalgarno Mr John Griffith-Jones Mrs Jenny Jones

Preparatory School Committee (Termly)

Mrs Jenny Jones (Chairman) Mrs Susan Dalgarno – from 13[th] March 2021 Professor Bruce Evans The Venerable David Lowman Mr Scott Norris

Scholarships & Awards Committee (As required, normally twice a year)

Mr Michael Bolton (Chairman) – to 13[th] March 2021 Professor Christopher Tout (Chairman) – from 13[th] March 2021 Mr Matthew Hampson – from 13[th] March 2021 Mrs Rosemary Martin Mr James Tumbridge

Finance & Audit Committee (As required, normally twice a year)

Sir Michael Snyder (Chairman) Mr David Elms Mrs Jasmin Bryan Mr Matthew Hampson

Staff Terms & Conditions Sub-Committee of the Finance Committee (As required, normally twice a year)

Lord Black of Brentwood (Chairman) Mrs Jasmin Bryan Mrs Rosemary Martin

Property Management Committee (As required, at least once a term)

Mr Paul Beresford (Chairman) Mr Colin Finch (Co-opted member and former Chairman) Mrs Amanda Hardy Mr Bob McLintock Mr Scott Norris

Capital Projects Committee - also the Directors of Brentwood School Design & Build Limited (As required)

Sir Michael Snyder (Chairman) Mr Paul Beresford Mr Scott Norris

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GOVERNORS, OFFICERS, SCHOOL ADDRESSES AND ADVISORS

Investment Committee (As required)

Lord Flight of Worcester (Chairman to 30th September 2021) Mr John Griffith-Jones (Chairman from 1st October 2021) Mr David Elms – from 1[st] October 2021 Mr John May (Co-opted member) - to 8th September 2021 Mr Philip Saunders (Co-opted member) - from 3rd November 2020

Communications & Development Committee (As required, normally twice a year)

Lord Black of Brentwood (Chairman) Lord Flight of Worcester Mr David Elms Mr James Tumbridge

Brentwood School Enterprises Management Committee (Termly)

Mr Bob McLintock (Chairman) Mr Paul Beresford Mr Jason Fergus - from 11th May 2021 Mr James Tumbridge (Adviser to the Committee)

Officers of Brentwood School

Headmaster of Brentwood School Bursar and Clerk to the Governors Head of the Preparatory School

Mr Michael Bond BA (Hons) Mr Jeremy Blunden CBE LVO BSc (Hons) Mr Jason Whiskerd BA(Hons)

School Addresses

Senior School
(Registered Ofce)
Middleton Hall Lane
Brentwood
Essex CM15 8EE		 Preparatory School
Middleton Hall
Middleton Hall Lane
Brentwood
Essex CM15 8EQ

website: www.brentwoodschool.co.uk

Professional Advisors

Bankers: National Westminster Bank PLC, 46 High Street, Brentwood, Essex CM14 4AL Solicitors: Veale Wasbrough Vizards LLP, Narrow Quay House, Narrow Quay, Bristol BS1 4QA Tees Law LLP, Cathedral Place, Brentwood , Essex CM14 4ES Auditors: Crowe U.K. LLP, 55 Ludgate Hill, London, EC4M 7JW

Investment Advisors:

Architects:

Insurance Brokers:

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

Headmaster’s Report

Highlights of the Year

Brentwood School has gone from strength to strength over the past year, meeting the challenges posed by the pandemic with confidence and imagination.

None of this would have been possible without the dedication and selflessness of those who give the best of themselves to make Brentwood School such a special place.

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

Our Guiding Principles

Brentwood School was founded in 1557 by Sir Antony Browne, by authority of a charter obtained from Mary I. It is a Charitable Incorporated Organisation (CIO) and is registered with the Charity Commission under Charity number 1153605. The School operates two schools, known as Brentwood School and Brentwood Preparatory School.

There is one Governing Body for both Schools. Details of the members of the Governing Body, together with the School’s executive officers and principal advisors are set out on pages 1 - 4.

Charitable Object

The School’s Object, as set out in the CIO’s Constitution, is the advancement of education in or near Brentwood in the county of Essex.

Virtue, Learning and Manners

We enable our pupils to become the best version of themselves by developing Virtue, Learning and Manners

Item 21 of the school statutes (18th July 1622):

‘The said schoolmaster shall receive…..and him shall teach and instruct in virtue, learning and manners after the orders and constitutions of the said school…..’ [sic]

As we approach the 400[th] anniversary of John Donne’s enshrinement of the Motto, ‘Virtue, Learning and Manners’ within the School statutes, we continue to be guided to use these values as our compass. The principles of academic achievement within a caring Christian ethos remain a cornerstone of the School’s philosophy today.

Our pupils are confident without being arrogant, they look out for each other, they do the right thing, even when no-one is looking and they respect difference.

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

Our Aims

We aim to provide a first class education for pupils aged between 3 and 18.

ACTIVITIES AND ACHIEVEMENTS THIS YEAR IN SUPPORT OF OUR AIMS

Our pastoral care continues to underpin our educational provision. We continue to develop our pastoral provision and now have pastoral mentors for each Key Stage who work closely with the Heads of Year and tutor teams to safeguard our pupils and support their wellbeing. Additionally, our Director of Wellbeing is the Senior Mental Health Lead, a new role in the pastoral team.

Our annual Equal Opportunities Audit ensures that we reflect on the progress we have made but also that we continue to challenge ourselves, particularly in developing considered and meaningful responses to the Black Lives Matter and Everyone’s Invited movements. As a result we have redoubled existing efforts to promote inclusivity and shared values and, by adding a new programme - The Big Conversation - to our offering, which involves all Senior School students and staff exploring the reasons for and the solutions to the problems of intolerance and prejudice in our world.

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

Inclusivity continues to be a key pastoral priority and we have reviewed our curriculum to ensure that it is inclusive and relevant to our diverse student body. We cannot change the past, but we can evaluate it critically to better understand both what has helped our school endure as a place of learning that has enriched the lives of so many, and how we need to do things differently now and in the future.

Our student-led Culture Diversity Forum explores what it means to be a global citizen and encourages awareness, discussion and a better understanding of diversity and different cultures.

At Brentwood School, we seek to match students’ talents and potential with the most suitable aspects of our educational programme. This year, the first cohort of BTEC students completed their course, with three students accepting places at Durham, Bath and Exeter Universities and the fourth winning a prestigious position as a Junior Broker.

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

Following rigorous implementation of the complex rules governing public examination awards, in summer 2021, pupils at Brentwood School emerged with excellent results:

We provide an extensive co-curricular programme which inspires passions, builds self-confidence and instils a desire to contribute to the community. During the year:

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

In partnership with parents, we teach our students to persevere after setbacks, adopt a growth mindset and challenge the norm. We encourage them to ask questions in class and take control of their own learning. We challenge them to ‘be the change we wish to see in the world’. Of course, they work hard and enjoy great success in and out of the classroom, and once they’ve left us, many go on to use and develop their leadership skills and achieve beyond their expectations, always remembering what Brentwood has taught them.

Our newly established series of events for all Senior School pupils, “The Big Conversation'' , complements our extensive Wellbeing and Sex and Relationships programmes and enables pupils to engage respectfully in conversations about sensitive issues including sexism, racism and LGBT+ equality. To establish the first ‘The Big Conversation’ we worked closely with a representative cross-section of pupils for their input and then, in collaboration with The Rap Project , engaged in a series of discussions focused on the theme of tackling sexism in society.

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

The Changing Shape of Brentwood School

Over the past few years, Brentwood School’s reputation for outstanding education has continued to grow within and beyond the local area, driving exceptional demand for places. In October 2020, the new Prep classrooms and specialist facilities were unveiled, providing a further 169 places in the Preparatory School. By September 2021, the school roll stood at 1,920 pupils, an increase of 90 pupils in the last 12 months and growth of 25% - almost 400 pupils - in the past 5 years. This reflects increasing demand for Brentwood School’s traditional values, combined with a modern and forward-looking approach to education.

Brentwood Preparatory School is now the largest tied-house preparatory school in the UK

Brentwood was the first school in Essex, and one of the first in the country, to adopt the Diamond Model: single-sex classes from the age of 11-16 within an overall mixed gender environment. This model helps teachers to tailor their teaching to the different learning styles of boys and girls and provides the best of single gender teaching within a coeducational environment.

Academically, we’re one of the few independent schools in the country that offers three Sixth Form pathways - A-level, BTEC Extended Diploma in Business & Sport, and the IB Diploma - Programme which means we can help students with very different aptitudes reach their goals and move onto their preferred next steps. The quality and range of Sixth Form courses has driven a 28% increase in Sixth Form students over the past 5 years.

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

Individual support for our boarders

Following the Government lockdown announced on 4th January 2021, boarders who had already returned to the UK, taking advantage of the School’s pre-term quarantine facility, were permitted to stay in the Boarding Houses throughout the Lent Term and continued with remote learning alongside their fellow day students. For those unable to travel, we continued to provide individual support to our overseas boarders. The exceptional support offered by the School to its boarding community has meant that the School’s boarding reputation and demand for spaces continues to grow, with 59 boarders enrolled at September 2021.

OUR WIDER STRATEGIC GOALS AND WHAT WE HAVE ACHIEVED IN THE PAST YEAR

As we approach the 400th anniversary of the dedication of our statutes in 1622, we remain mindful of our role as stewards and custodians of Brentwood School. Over the past year, we further developed our Long Term Strategy, encouraging input contributions from all parts of our community. In developing our strategic plan, we are guided by our core tenets of Virtue, Leaning and Manners and of our responsibilities under the Charities Act 2011.

Our wider objectives supplement our aims and are embedded in our core strategic strands:

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

Over the past year we have made substantial progress in these core strategic ambitions:

Developing Access: Pushing forward our strategy to fund more transformational bursaries for those from diverse backgrounds

In setting our objectives and planning our activities, Governors have given careful consideration to the Charity Commission’s public benefit guidance and a key objective this year was to push forward our plans to increase the number of bursaries for talented children who could not otherwise afford a Brentwood School education.

The Brentwood School Foundation exists for this purpose, and its aim is to raise enough money on its own to fully fund 10 students in perpetuity by 2030. Indeed, 2020 saw the first Foundation-funded Bursary student join the Sixth Form, and she began her U6th Year as a Deputy Head of School.

The School has a long history of educating children from different backgrounds and, this year, through our means-tested bursary scheme, we were able to provide the opportunity of a Brentwood School education to 119 pupils (2020: 104), the equivalent of a bursary for every 10 full fee places in the Senior School. 85 children received a discount of at least 75% and, of these, 57 pupils paid no fees at all. The average bursary award was 82% of fees. The funding provided to bursary-holders this year was £1.924m (2020: £1.672m), which is equivalent to 7.1% (2020: 6.7%) of Senior School gross fee income.

Where candidates have met the academic requirements or demonstrated an exceptional talent in Art, Chess, Dance, Drama, Music or Sport, all bursary applications are assessed by a specialist third party to ensure a fair approach. This level of support has transformed the lives of children from disadvantaged backgrounds.

This year, we celebrated the achievements of our full bursary holders:

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

There are many other examples where we have supported children who would not otherwise have been able to attend Brentwood School to achieve strong academic results but also, importantly, to develop confidence and resilience. We firmly believe that bursary students enrich the experience of those children who come from more affluent backgrounds, reducing the risk of them reaching adulthood having lived in a bubble of privilege, but even more powerfully, it will show them the ambition and determination demonstrated by those who truly appreciate how fortunate they are to attend a school such as Brentwood. This is exactly the kind of competition they are going to face in a global jobs market against those who might be hungrier, sharper and willing to work longer and harder to get the best jobs.

We want to further expand our bursary reach but we are mindful of the Charity Commission’s supplementary public benefit guidance on fee-charging. Therefore, this year, as part of our Developing Access strategic strand we have focussed on generating additional funds to support bursaries in two ways:

  1. Through the Brentwood School Foundation, which was established to further the School’s charitable objectives, including the provision of bursaries and other types of funding to assist students who would not otherwise benefit from an education at Brentwood. Through the Foundation, former pupils, including many who benefited from the Direct Grant and Assisted Places schemes, are able to make a charitable donation or legacy to support fully-funded places for deserving families; and

  2. In July 2021, the School secured a commitment to finance £30m through a private placement to further enhance the financial flexibility of the School, including the ambition to fund additional bursaries.

– Developing Community We are strengthening our partnerships with local schools and other community organisations to identify and support those who would benefit from a bursary at 11+ or in the Sixth Form. We are also extending our high-quality partnerships with professional sports clubs, Junior Guildhall School of Music and Drama and Outdoor Education providers.

We are committed to ensuring that our School actively supports our local and wider community. This year:

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

Through our trading subsidiary, Brentwood School Enterprises Limited, we encourage access to our extensive sports and specialist facilities by local schools and community groups as well as commercial hires. We offer discounted rates to those working in the NHS and the emergency services.

– Developing Learning We continue to develop our pedagogy to provide our pupils with an exceptional 3-18 education developing the flexible skills needed to flourish in a changing world. We pursue excellence in Sport, Music, Performance and Art, investing in the best staff and facilities. This year we have commenced an overhaul of our Careers education provision, and progressed plans for enhanced outdoor education. We have introduced reflection reports to encourage pupils to reflect on their own academic progress and personal development. We have also constructed a pastoral priorities map to coordinate our response to diversity and inclusivity equal opportunities issues.

Developing People – Our focus is on developing robust organisational health. We continue to expand our staff wellbeing programme, including our benefits package. This year we have expanded our training programmes for Early Career Teachers (ECTs). Our tailored professional support and sector-leading research and development programme, showcased in our annual Ideas Fair and in-house journal, The Pioneer , provides first class training and development opportunities for new and experienced teachers.

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REPORT OF THE GOVERNORS For the year ended 31[st] August 2021

– Developing Facilities Following the successful commissioning of the Preparatory School in October 2020, we have carried out an extensive space audit in the Senior School to ensure that we continue to use facilities effectively and that we develop our site to meet our emerging priorities. Our commitment to technology meant that we were well-prepared to meet the challenges of remote learning and in June 2021 we issued MacBooks to all Senior School teachers to further support our flexible learning strategy.

Developing Financial Health - Strong demand for places drives the School’s financial health, but we are not complacent. We are committed to control of costs, and to diversifying and maximising our income streams whilst securing value for money and allowing a substantial reinvestment to the benefit of current and future students.

In summary, the acceleration of our extensive means-tested bursary programme, the fostering of new partnership initiatives with local schools and organisations and the promotion of wider community access, are at the forefront of our long term strategy. Through these actions we will ensure that Brentwood School continues to live by its founding values and remains at the heart of the local community.

Fundraising

All fundraising activities for the School are carried out by School staff with assistance from alumni, parents and pupils. The School does not use professional fundraisers or have any commercial participants. All fundraising activities are managed by the Director of Communications, Admissions and Development, with oversight by the Board of the Brentwood School Foundation, and, ultimately, the Governors.

Old Brentwood, the Rt Hon. Jack Straw, at a fund-raising event to raise awareness of the Brentwood School Foundation

The Charity is registered with the Fundraising Regulator and the Trustees seek to ensure that it complies with fundraising standards. The Charity has not received any complaints during the year about its fundraising activity and does not undertake any activity which is an unreasonable intrusion on a person’s privacy or is unreasonably persistent. The School has in place procedures that would be followed in the event of a complaint being received.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

The Governing Document

The CIO is governed by its Constitution, last amended on 2nd January 2014.

The Governing Body

New members of the Governing Body are elected on the basis of nominations from the Governors and the executive officers based on the specific needs of the Governing Body and criteria set by the Executive Committee. Care is taken to maintain a full range of skills and expertise to enhance the overall strategic management of the Governing Body. Governors are mindful of the principles of the Charity Code of Governance.

All Trustees (Governors) give their time freely and no remuneration is paid to them at any time.

Governor Training

Members of the Governing Body receive training and information to ensure they are informed and updated on current issues in the sector and regulatory requirements, including safeguarding and health and safety. New Governors benefit from a structured induction programme. Invitations to visit the School continue throughout Governors’ tenure of office and they have regular opportunities to meet staff and senior pupils after each Governors’ Meeting.

Organisational Management

The School Governors, as the trustees of the Charity, are legally responsible for the overall management and control of the Senior School and the Preparatory School. They meet in formal session as a Board three times a year. The work of implementing their policies is carried out by the committees set out on pages 3 to 4.

Individual Governors have special responsibility for oversight of particular aspects of school life, including liaison with the School’s various constituencies, safeguarding of children and health and safety. A number of Governors meet with the Senior Leadership Team annually towards the final stages of the strategic development process to review the School’s strategic direction.

The day-to-day running of the School is delegated to the Headmaster and the Bursar. They are supported by the Executive Senior Leadership Team and, together this group, which comprises the Head of the Preparatory School, the Senior Deputy Head, Deputy Head (Academic) and Deputy Head (Staffing, Operations and Co-curricular) of the Senior School, the Finance Director and the Communications, Admissions and Development Director, are the key management personnel. The Headmaster, the Head of the Preparatory School, the Senior Deputy Head of the Senior School and the Bursar attend the Executive Committee and the full Governing Body.

Brentwood School is committed to a ‘whole school’ philosophy.

Group Structure

The School has been operating as a Charitable Incorporated Organisation since 1 September 2015. The CIO is the sole trustee of the Permanent Endowment of the Sir Antony Browne School Trust (SABST) which holds the assets of the original endowment, namely land valued in 1947 at £200,000 under the title deeds EX 788375 and EX 788423.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity has two wholly owned non-charitable trading subsidiaries:

Employment Policy

The School is an equal opportunities employer and we are satisfied that we pay the same rate for the same role regardless of gender. Teaching staff are paid according to a formal Salary Scale. Support staff roles are paid at a rate appropriate to the evaluation of the role.

Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests.

The School is proud of its individualised Professional Development programme, tailored to our teachers’ specific needs and interests. They are encouraged to undertake research and development projects, to support their own practice and that of their peers.

Pay Policy

Remuneration is set by the Governors, informed by the Governors’ Finance Committee and its Terms and Conditions Sub-Committee, with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding fairly and responsibly individual contributions to the School’s success.

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the School remains sensitive to the broader issues of pay and employment conditions within the sector.

Volunteers

The School benefits from the close support of the Society of Old Brentwoods and from the Friends of Brentwood School (Registered Charity Number 1095486), whose generosity is greatly appreciated. The School is thankful for the role played by both these organisations in the life of the School.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Charitable Status

As a charity, Brentwood School benefits from tax exemptions on its educational activities and on its investment income and gains. All these incomes are applied for educational purposes. The School also benefits from an 80% reduction on business rates on the part of its estate utilised for charitable purposes. We recognise the responsibility conferred by these concessions and remain committed to the aim of providing public benefit in accordance with its founding principles and the terms of our current constitution.

We continue to develop our extensive means-tested bursary programme, partnership initiatives with local schools and community access to ensure that Brentwood School remains at the heart of the local community and its economy.

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FINANCIAL REVIEW

Financial Summary

The consolidated net incoming funds from operations for the year amounted to 2021: £5.029m (2020: £3.536m). The net income surplus, including gains on investments and the gain on disposal of investment property, was £12.688m (2020: £3.687m). This figure includes Brentwood School Enterprises’ net loss of £13.3k (2020: net profit of £7.8k), after transfer of the donation of £78k (2020: £40k) to the School.

Government restrictions due to Covid-19 meant that the Sports Centre and School Shop were forced to close for 141 days this year, or 39% of normal opening days with restrictions in place throughout. As a result the Sports Centre suffered a temporary dip in primary memberships, from 700 in January 2020 prior to Covid, dipping to 614 by October 2020 and reaching a low of 573 by February 2021. However, since restrictions eased, demand for fitness facilities has rebounded, resulting in record membership of 815 by September 2021. Overall, the extended lockdown meant that the Trading Subsidiary, BSE, generated a turnover of £0.817m (2020: £0.843m) from its core operations. As a result, BSE posted an operating profit of £65k (2020: £48k). Although in a position to donate its taxable profit to the School, the impact on trading has meant that the School was required to increase its loan facility to BSE by £75k, with the loan value standing at £180k at the year-end.

Operationally and financially, the School remains in a strong position.

Investment Policy and Objectives

The Governors’ objective is to grow the value of the investments on a total return basis in the medium to long term commensurate with avoiding undue risk of loss over such a time-frame. The Charity’s strategy for investment is set out in a Statement of Investment Policy.

The control of risk to the value of the portfolio is facilitated by the following procedures adopted by the Investment Committee:

The Investment Committee meets as required to monitor performance against benchmarks established by the Governing Body and to allocate funds selected on the basis of the investment opportunities that they offer and their record of performance. By selecting a range of investment funds, the Committee achieves the level of diversification deemed appropriate to reduce risk and to achieve the investment objective. By withdrawing £12.4m into cash in early 2020, Governors were able to minimise the impact of the market downturn in March 2020 due to the pandemic. Funds were fully reinvested by summer 2020 but this meant that investment management fees for 2019/20 were unusually low and have since recovered to normal levels representing c1% of the average value of investments during the year.

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FINANCIAL REVIEW

The Investment Committee continues to review and adapt its investment strategy in light of the additional funds available for investment from September 2021 as a result of the private placement of £30m.

The Investment Committee reports regularly to the Executive Committee and the Board of Governors. The Governors’ policy is that the School’s investments should exceed a year’s gross fee income in line with the reserves policy. Governors intend to invest the additional £30m to further its strategic aims and, in particular, to extend its funding for bursaries.

Reserves Policy

Details of the funds and the movements on them in the year are set out in Note 23.

After adjusting for endowed and restricted reserves, the School’s unrestricted general funds stood at £96.8m (2020: £83.8m) at the year-end, of which £54.8m (2020: £53.1m) represented funds deployed as part of the School’s premises and equipment (excluding endowed land), leaving £42.0m (2020: £30.7m) as free reserves, comprising investments (equities and cash awaiting investment) of £42.5m (2020: £30.8m) plus other net liabilities of £0.4m (2020: £0.1m).

Funds amounting to £0.3m (2020: £0.3m) donated specifically for bursaries were applied against current year grants, utilising the remaining assets within the Bursaries Restricted Fund. A further £0.1m is held within the Brentwood School General Charitable Trust (2020: £0.1m) representing individual gifts, legacies and grants given to the School for specific charitable purposes outside the School’s charitable objects.

The Governors have set one year’s gross fee income as the minimum level for its investment fund. The £42.5m (2020: £30.8m) currently allocated to securities investments exceeds the 2021 gross fee income of £35.2m, before fee discounts of £1.0 reflecting savings passed on to parents as a result of the 7 week lockdown in Lent Term 2021.

The funds set aside within investments and strong cash balances provide the School with a high level of resilience at a challenging time and allow the School to strengthen its reserves to safeguard the future of the School; to provide income to support the award of bursaries; and to finance continuing and significant capital expenditure on improvements to the facilities, infrastructure and buildings on the School campus.

The Governors’ policy is not to maintain reserves in Brentwood School Enterprises.

Note 22 to the Financial Statements sets out an analysis of the assets attributable to the various funds. We believe that these assets are sufficient to meet the Charity’s obligations.

Principal Risks and Uncertainties

Economic uncertainty, adverse legislative changes and the affordability of fees by parents across the independent sector are risks to the Sector falling outside the School’s control. However, the School continues to emerge from the global pandemic with increased pupil numbers and in robust financial health. In setting the fees for 21/22, the Governors considered the challenges and the impact on parents of the continuing economic uncertainty balanced with the need to ensure funding for future capital development and to support the strategic ambitions of the School. The cumulative impact of all these factors, meant that the fee increase was kept to a reasonable level.

22

FINANCIAL REVIEW

Detailed considerations of risk are undertaken by the Executive Committee. Each year, risks are identified and reviewed and appropriate controls are established to deal with them. Formal reviews of this process and, in particular, of the effectiveness of the control measures including, for example, ‘deep dives’ into arrangements for cyber security, critical incidents, health and safety and safeguarding, are undertaken at regular intervals throughout the year.

The key control measures used by the Charity include:

The risk management process operated by the School allows the Governors to confirm that they are satisfied that the major risks have been identified, that their impact has been assessed and, where necessary, controls have been implemented to mitigate and monitor those risks that are assessed as medium or high. The Governors regularly review the effectiveness of current plans and strategies for managing all identified major risks for both the School and Brentwood School Enterprises.

Plans for the Future

Over the past couple of years, we have involved the school community in encouraging a deeper understanding of our vision, values and aims and what it means to be part of Brentwood School.

During 2021/22 the School’s ambitious long term strategic goals will be finalised with Governors. This will set the agenda for the foreseeable future and ensure that the School continues to be at the forefront of educational development, creativity and inclusivity.

23

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Members of the Governing Body (who are also the Trustees of the Brentwood School CIO) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Charity law requires the Governors to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under charity law the Governors must not approve the annual statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and the group and of the group’s net incoming/outgoing resources for that period. In preparing these financial statements, the Governors are required to:

The Members of the Governing Body are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s and the group’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group, and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Relevant Audit Information

Insofar as each of the Trustees, as members of the Governing Body, at the date of approval of this report is aware there is no relevant audit information (information needed by the Charity’s auditor in connection with preparing the audit report) of which the Charity’s auditor is unaware. Each member of the Governing Body has taken all the steps that he or she should have taken as a member of the Governing Body in order to make himself or herself aware of the relevant audit information and to establish that the Charity’s auditor is aware of that information.

Approved by the Trustees of the Brentwood School CIO on 20th November 2021 and signed on its behalf by:

Sir Michael Snyder Chairman of Governors

24

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRENTWOOD SCHOOL CIO

Opinion

We have audited the financial statements of Brentwood School for the year ended 31 August 2021 which comprise Consolidated Statement of Financial Activities, Consolidated and School Balance Sheets, Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's 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 or the group’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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

25

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRENTWOOD SCHOOL CIO

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 24, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team member. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination

26

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRENTWOOD SCHOOL CIO

of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011, 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 charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group 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 income, expenditure on 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 income and capital expenditure, the posting of journals, reviewing of accounting policies and 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 non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP London

Date 20 December 2021

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

27

BRENTWOOD SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] AUGUST 2021

Notes
Income and endowments from:
Charitable activities
School fees receivable
2
Ancillary trading
3
Other trading activities
Non-ancillary trading income
4i
Other activities
4ii
Investments
Investment income
5
Bank and other interest
6
Voluntary sources
Grants and donations
7
Total income
Expenditure on:
Raising funds
Non-ancillary trading
4i
Ancillary trading income
4ii
Financing costs
9
Investment management
Fundraising & development
Total deductible costs
Charitable activities
Education and grant making
8
Total expenditure
Net income before transfers and investment
gains
Gains on investments
12
Gains on investment properties
13
Transfers between funds
23
Net movement in funds for the year		 Unrestricted
Restricted
2021
2020
Funds
Funds
Total
Total
£’000
£’000
£’000
£’000
31,509 - 31,509 27,208
280 - 280 436
920 - 920 935
240 - 240 289
386 - 386 587
2 5 7 61
214 - 214 526
33,551 5 33,556 30,042
855 - 855 887
258 - 258 97
51 - 51 44
366 - 366 191
43 - 43 40
1,573 - 1,573 1,259
26,954 - 26,954 25,247
28,527 - 28,527 26,506
5,024 5 5,029 3,536
7,673 (14) 7,659 83
- - - 68
344(344) - -
13,041 (353) 12,688 3,687

28

BRENTWOOD SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31[ST] AUGUST 2021

Net movement in funds for the year (brought
forward)
Fund balances brought forward at 1 September
Fund balances carried forward at 31 August		 Unrestricted
Restricted
Endowed
2021
2020
Funds
Funds
Funds
Total
Total
£’000
£’000
£’000
£’000
£’000
13,041 (353) - 12,688 3,687
83,831 431 200 84,462 80,775
96,872 78 200 97,150 84,462

There were no transactions in the Statement of Financial Activities in respect of Endowed Funds in 2021 (2020: NIL).

All transactions in the 2020 column of the Statement of Financial Activities relate to unrestricted funds, with the exception of interest received on mortgage of £6k and donations of £46k. In addition, in 2020, £277k was transferred from restricted to unrestricted funds to support bursaries.

The results for Brentwood School before consolidation are disclosed in note 27.

The notes on pages 33 to 51 form part of these financial statements.

29

BRENTWOOD SCHOOL CONSOLIDATED AND SCHOOL BALANCE SHEETS AS AT 31 ' AUGUST 2021 Consolldated 2021 2020 £'ooo £'oDo School Nol•s 2021 £'ooo 2020 £'ooo FIXED ASSETS Tangible assets Securities investmen15 Property investments 53,402 30.779 55,040 42,458 53,329 30.779 12 13 42,458 97.557 84.181 97.498 84.108 CURRENT ASSETS Stock Debtor$'. Amounts due wthin one ￿al Amounis due after one yaar Cash and deposits 14 26 27 15 15 1.056 1,042 180 6,760 951 350 6,625 7,953 245 6.641 8,040 6,865 8.111 CURRENT LIABILITIES Creditors payable within one yBar 16 (8,1691 (7.3611 18,035 17.2411 NET CURRENT ASSETS 58 679 27 712 • v i I 97.499 84.860 97.471 84.820 LONG.TERM LIABILITIES Creditors payable 8fter LTh year 17 {3491 {3981 13491 {3981 NET ASSETS 97.1 $0 84.462 97.122 84.422 REPRESENTED BY: 23 UNRESTRICTED FUNDS General Reserve 96.872 83.831 83.791 RESTRICTED FUNDS General Charitable Trusl18SGCT} Bursaries Fund 78 78 353 78 78 353 ENDOWED FUNDS 200 200 200 200 97.150 84.462 97.122 84.422 These financial statemenls were approved by the Trustees on 20th November 20 and were signed on ils behalf ty.. Sir Michael Snyder DSC Hon FGS FCA FRSA Chaimian of Govern￿$ D J Elm5 Esq. MA FCA FCSI H(m￿rary Treasurer The notes on pages 33 to $1 forni part of thes• financial statem•nts.

BRENTWOOD SCHOOL

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31[ST] AUGUST 2021

Notes
Net cash inflow from operations
Net cash provided by operating activities
(i)
Cash flows from investing activities:
Payments for tangible fixed assets
Proceeds from disposal of fixed assets
Additions to securities investments portfolio
Proceeds from sales of investment properties
Investment income and bank interest received
Net cash used in investing activities
Cash flows from financing activities
Finance costs paid
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the period
Cash and cash equivalents at the end of the
reporting period
(ii)		 £’000
£’000
£’000
£’000
7,994
3,965
(3,727)
(8,956)
1
17
(4,386)
(956)
-
243
393
648
(7,719)
(9,004)
(51)
(44)
224
(5,083)
6,641
11,724
6,865
6,641
2021
2020		 £’000
£’000
£’000
£’000
7,994
3,965
(3,727)
(8,956)
1
17
(4,386)
(956)
-
243
393
648
(7,719)
(9,004)
(51)
(44)
224
(5,083)
6,641
11,724
6,865
6,641
2021
2020
6,641

The notes on pages 33 to 51 form part of these financial statements.

31

BRENTWOOD SCHOOL

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31[ST] AUGUST 2021

i. Reconciliation of net income to net cash flow from operating activities

Net income
Elimination of non-operating cash flows:
· Investment and bank income
· Finance costs
Investment management charges
Depreciation charges
Profit on disposal of fixed assets
Decrease/(Increase) in debtors
(Increase)/Decrease in stock
Increase/(Decrease) in creditors (excluding fees
in advance scheme and deposits)
Decrease in fees in advance scheme creditors
Increase in parents’ deposits
Movements in working capital
Net cash inflow from operations		 £’000
£’000
5,029
(393)
51
366
2,030
(1)
175
(22)
794
(72)
37
2,965
7,994
2021		 £’000
£’000
5,029
(393)
51
366
2,030
(1)
175
(22)
794
(72)
37
2,965
7,994
2021		 £’000
£’000
3,536
(648)
44
191
1,862
(14)
(109)
52
(809)
(182)
42
429
3,965
2020		 £’000
£’000
3,536
(648)
44
191
1,862
(14)
(109)
52
(809)
(182)
42
429
3,965
2020
7,994 3,965

ii. Analysis of cash and cash equivalents

Cash at bank
Deposits		 2021
£’000
5,842
1,023
6,865		 2020
£’000
3,817
2,824
6,641

32

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

1. ACCOUNTING POLICIES

Charity Information

The School is a Public Benefit Entity registered as a Charitable Incorporated Organisation (CIO) in England and Wales and its charity number is 1153605. On 1[st] September 2015, the Charity’s assets, other than the property considered to be a Permanent Endowment, were transferred to Brentwood School CIO from the Sir Antony Browne’s School Trust (SABST). The property forming the Permanent Endowment remains within SABST (charity number 310864). Brentwood School CIO is the sole corporate Trustee of this Permanent Endowment and is the registered Title Holder of the property.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the 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).

The accounts financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice which has since been withdrawn).

The functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates.

The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investment properties and other investments.

Having reviewed the funding facilities available to the School, together with the expected ongoing demand for places and the School’s future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School’s financial viability.

The accounts present the consolidated statement of financial activities (SOFA), the consolidated cash flow statement, and the consolidated and School balance sheets comprising the consolidation of the School with its wholly owned trading subsidiary, Brentwood School Enterprises. The results of Sir Antony Browne’s School Trust (SABST) and the Brentwood School General Charitable Trust (BSGCT) are included within the School’s figures. No separate SOFA has been presented for the School alone, however the results are detailed in note 27. The consolidation has been carried out on a line by line basis.

The School has taken advantage of the exemptions in FRS 102 from the requirements to present a charity only Cash Flow Statement, on the basis that it is a qualifying entity and the consolidated cash flow included in these financial statements includes the cash flows of the School.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, Trustees are required to make judgement, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

33

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements.

1.1. Fees and similar earned income

Fees receivable and charges for services and use of the premises, less any allowances, scholarships, bursaries and other remissions granted by the School against those fees, are accounted for in the period in which the service is provided. Fees received in advance of education to be provided in future years under the Composite Fee Scheme are held as discount-earning liabilities until either used as fees or refunded. Investment income earned on such balances is taken into the general revenue of the School in the year in which it is earned.

1.2. Investment income

Investment income from dividends and bank balances is accounted for on an accruals basis.

1.3. Donations, legacies, grants and other voluntary incoming resources

Grants (including government grants) and donations are recognised as income on receipt of funds or when entitlement of receipt by the School is considered probable.

Legacies are recognised as income on receipt of funds or when entitlement of receipts by the School is considered probable. Entitlement is taken to be the earlier date of the School being notified of an impending distribution following settlement of the estate or the legacy being received.

Voluntary income for the School’s general purposes is accounted for as unrestricted and is credited to the General Reserve. Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fund and incoming endowments are accounted for as permanent trust capital or expendable trust capital, according to whether the donor intends retention is to be permanent or not.

1.4. Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities. Expenditure attributable to more than one cost category in the SOFA is apportioned to them on the basis of the estimated amount attributable to each activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. The direct costs incurred in preserving the School’s buildings and their contents are shown as a charitable activity distinct from that of education and grant making.

Irrecoverable VAT is included with the item of expenditure to which it relates.

Governance costs comprise the costs of complying with constitutional and statutory requirements, such as the costs of Governors’ and Executive Committee meetings and the cost of preparing statutory accounts and satisfying public accountability.

Intra-group transactions between the School and its subsidiary, Brentwood School Enterprises, are excluded from trading income and expenditure.

34

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

1.5. Tangible fixed assets

The property which was held as at 1st April 1947 is included at its value at that date, taken as its deemed cost. The historic value of this asset is recognised as a Permanent Endowment within the consolidated accounts.

Expenditure on the acquisition, construction or enhancement of land and buildings, vehicles, furniture, machinery, ICT infrastructure and other equipment costing more than £1,000 is capitalised and carried in the balance sheet at historical cost. Other expenditure on equipment incurred in the normal day-to-day running of the School and its subsidiary is charged to the SOFA as incurred.

1.6. Depreciation

Depreciation is provided to write off the cost of all relevant tangible fixed assets less estimated residual value based on current market prices, in equal annual instalments over their expected useful economic lives as follows:

Freehold buildings, including major extensions 50 years
Leasehold property 50 years
Estates improvements 25 years
Freehold Improvements 10 years
Furniture, fttings, machinery, equipment and vehicles 5 years
IT equipment 3 years

The charity depreciates assets from the latter of the date at which they are purchased or brought into use.

1.7. Investments

Purchases and sales of investment properties are recognised on exchange of contracts.

Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the SOFA and are allocated to the appropriate fund according to the “ownership” of the underlying assets.

The Charity’s interest in its subsidiary, Brentwood School Enterprises Ltd, is valued at £NIL (2020: £NIL), as the Company is limited by guarantee, without a share capital.

The Charity’s interest in its subsidiary, Brentwood School Design & Build Limited, is valued at £100, reflecting the costs of its share capital.

1.8. Stock

Stock represents goods for consumption or resale and is valued at the lower of cost and net realisable value.

1.9. Deposits from Parents

Although, under normal circumstances, pupil fee deposits will be repaid over future years when the pupils complete their education at the School, pupils can leave at earlier dates. As the School does not have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2020 have been included within current liabilities.

35

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

1.10. Fund accounting

The charitable trust funds of the School and its subsidiaries are accounted for as unrestricted or restricted income or as endowment capital in accordance with the terms of trust imposed by the donors or the Charity Commission.

Unrestricted General Funds are used in accordance with the School’s charitable objects at the discretion of the Governors. Where the Governors decide to set aside any part of these funds to be used in future for some specific purpose, this is included accounted for by transfer to the appropriate designated fund held within General Reserves.

Income generated by the Brentwood School Foundation for the furtherance of the School’s charitable objects, including the provision of bursaries and the improvement of School facilities and equipment, is recognised as a designated fund.

Restricted Funds comprise gifts, legacies and grants where there is a trust law restriction to some specific purpose intended by the donor. Restricted funds are held within BSGCT and the Bursary Fund.

Endowed Funds are retained for the permanent use of the School. The value of the property deemed to represent a permanent endowment, in accordance with guidance from the Charity Commission, is retained within the SABST for the beneficial interest of the Brentwood School CIO.

1.11. Pension Schemes

The Charity contributes to the Teachers’ Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the Governors by the Scheme Administrator. The Scheme is a multi-employer pension scheme governed by the Teachers’ Pension Scheme Regulations 2014.

The Charity also contributes to individual personal pension schemes for support staff after three months’ service at a rate of 10% of annual basic pay where employees make a contribution of 5%.

Contributions to both schemes are charged in the SOFA in the period in which the salaries to which they relate are payable. The School has a stakeholder scheme available to staff if they wish to participate, but the School does not make employer’s contributions to this scheme.

1.12. Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

1.13. Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost, with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access and short notice bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes, deferred income and provisions.

36

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

2. CHARITABLE ACTIVITIES – FEES RECEIVABLE

Average number of FTE pupils on school roll
Fees receivable consist of:
School fees
Less: total scholarships, bursaries, grants and allowances		 2021
2020
1,821 1,625
£’000
£’000
34,202 29,677
(2,693) (2,469)
31,509 27,208

Means-tested bursaries totalling £1,924k were paid to 119 pupils (2020: £1,672k).

3. CHARITABLE ACTIVITIES – OTHER INCOME

Ancillary trading income
Registration fees
Income for educational trips
Income from the Fee Refund Scheme		 2021
2020
£’000
£’000
83 70
174 349
23 17
280 436

4. OTHER TRADING ACTIVITIES

i. Non-ancillary trading income

The School’s wholly-owned subsidiary, Brentwood School Enterprises, operates the Brentwood School Sports Centre for the benefit of the local community and sells school uniform to parents. Its trading results are summarised below.

Brentwood School Enterprises - Trading Results
Turnover
Cost of sales
Gross profit
Administration
Other Operating income
Operating profit		 2021
2020
£’000
£’000
817 843
(267) (280)
550 563
(588) (607)
103 92
65 48

Other operating income is the Job Retention Scheme grant of £98k (2020: £92k) and Brentwood Council grant of £5k (2020: £Nil).

All of the taxable profits of Brentwood School Enterprises are donated to the School each year consistent with its objects. The amount to be donated in 2021 is £78k (£2020: £40k). Brentwood School Enterprises’ balance sheet is set out in note 25.

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BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

ii. Other trading income

ii. Other trading income
Proceeds of letting of School residential properties
Surcharges for late payment
Proceeds from School Tuck Shop
Proceeds from Wraparound Care
Proceeds from Tennis Academy
Profit on disposal of fixed assets
Costs		 2021
2020
£’000
£’000
129 134
- 9
30
98
48
34
33 -
- 14
240 289
(258) (97)
(18) 192
5.
INVESTMENT INCOME
Securities investment income:
Equities (including cash holdings)		 2021
2020
£’000
£’000
386 587
386 587

6. BANK AND OTHER INTEREST

BANK AND OTHER INTEREST
Bank Interest
Mortgage Interest		 2021
2020
£’000
£’000
2 55
5 6
7 61

7. GRANTS AND DONATIONS RECEIVABLE

GRANTS AND DONATIONS RECEIVABLE
Government Grant
Donations
· Legacies
· Other Donations
Friends of Brentwood School		 2021
2020
£’000
£’000
129 419
- 10
85 94
- 3
214 526

Government grant income relates to amounts received under the Coronavirus Job Retention Scheme where support staff were furloughed for the months January to May (2020: March to August). There were no conditions attached to this income.

38

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

8. ANALYSIS OF EXPENDITURE

(a) Total expenditure

Staff Costs
Dep’n
Other
(note 10)
(note 11)
£’000
£’000
£’000
Costs of raising funds
Trading costs
592 14 507
Cost of other activities
Financing costs (note 9)
- - 51
Investment management
- - 366
Development costs
43 - -
Total costs of raising funds
635 14 924
Charitable expenditure
Teaching
14,394 256 989
Welfare
516 6 2,066
Premises repair and maintenance
1,129 1,754 3,145
Support costs and governance
1,687 - 1,012
Total charitable expenditure
17,726 2,016 7,212
Total expended
18,361 2,030 8,136
(b) Governance included in support costs:
Remuneration paid to auditor for audit services
Reimbursement of travel costs to Governors		 Staff Costs
Dep’n
Other
(note 10)
(note 11)
£’000
£’000
£’000
592 14 507
- - 51
- - 366
43 - -		 Total
Total
2021
2020
£’000
£’000
1,113 984
51 44
366 191
43 40
635 14 924 1,573 1,259
14,394 256 989
516 6 2,066
1,129 1,754 3,145
1,687 - 1,012		 15,639 14,660
2,588 2,031
6,028 5,986
2,699 2,570
17,726 2,016 7,212 26,954 25,247
18,361 2,030 8,136 28,527 26,506
2021
2020
£’000
£’000
24 23
1 2
25 25

Remuneration paid to Auditors for audit services includes irrecoverable VAT of £3,950 (2020: £3,814) The cost of travel was reimbursed to 2 members (2020: 6) of the Governing Body.

Auditor’s remuneration of £8,000 (2020: £7,830) for auditing the financial statements of Brentwood School Enterprises is included within ‘Trading Costs’.

39

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

9. FINANCE AND OTHER COSTS

Movements in bad debt provision and debts written off
Bank charges
Interest on fee deposits
10.
STAFF COSTS AND RELATED PARTY TRANSACTIONS
Aggregate payroll costs for the year were as follows:
Wages and salaries
Social security costs
Pension contributions
Apprenticeship Levy		 2021
2020
£’000
£’000
44 31
5 6
2 7
51 44
2021
2020
£’000
£’000
14,274 13,043
1,415 1,306
2,619 2,404
53 48
18,361 16,801

No Governor received any remuneration or other benefits from Brentwood School or from any connected body. During the year the School received donations without conditions totalling £5,000 (2020; £300) from one trustee.

2021 2020
Aggregate employee benefits of key management personnel 1,011 993
Key management personnel are the members of the Senior Leadership (Executive) Team of Brentwood School.
2021 2020
Number of higher paid employees in bands of:
£60,001 to £70,000 9 3
£70,001 to £80,000 3 1
£80,001 to £90,000 1 3
£90,001 to £100,000 1 1
£100,001 to £110,000 0 2
£110,001 to £120,000 2 0
£140,001 to £150,000 1 1
2021 2020
Number of higher paid employees with retirement benefits accruing:
· In defined Contribution schemes was 3 4
Of which the contributions amounted to £25,191 £25,191
· In Defined Benefit Schemes was 15 7

40

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

10. STAFF COSTS AND RELATED PARTY TRANSACTIONS (CONTINUED)

The average number of the School’s employees during the year, calculated on a full time equivalent (FTE) and actual basis, was 326 and 385 respectively (2020: 301 and 366), within the following categories:

Teaching – Teachers
Teaching – Teaching Support
Welfare
Premises
Operational		 FTE
Actual
FTE
Actual
194 208 181 201
47 70 37 61
14 28 12 25
32 35 32 34
39 44 39 45
2021
2020
326 385 301 366

During the year termination payments amounted to £Nil (2020: £47k).

11. TANGIBLE FIXED ASSETS

Consolidated
Cost
At 1 September 2020
Disposals
Additions
At 31 August 2021
Depreciation
At 1 September 2020
Disposals
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Leasehold
Fixtures,
equipment
and IT
Total
Unrestricted
Endowed
£’000
£’000
£’000
£’000
£’000
64,185 200 686 3,862 68,933
- - - (256) (256)
3,429 - - 298 3,727
Freehold land and
buildings
67,614 200 686 3,904 72,404
12,662 - 20 2,849 15,531
- - - (256) (256)
1,739 - 14 277 2,030
14,401 - 34 2,870 17,305
53,213 200 652 1,034 55,099
51,523 200 666 1,013 53,402

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BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

11. TANGIBLE FIXED ASSETS (CONTINUED )

School
Cost
At 1 September 2020
Disposals
Additions
At 31 August 2021
Depreciation
At 1 September 2020
Disposals
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Leasehold
Fixtures,
equipment
and IT
Total
Unrestricted
Endowed
£’000
£’000
£’000
£’000
£’000
64,184 200 686 3,393 68,463
- - - (178) (178)
3,429 - - 298 3,727
Freehold land and
buildings
67,613 200 686 3,513 72,012
12,662 - 20 2,452 15,134
-
- (178) (178)
1,739
14 263 2,016
14,401 - 34 2,537 16,972
53,212 200 652 976 55,040
51,522 200 666 941 53,329

Assets under construction

Freehold property includes £154k of costs associated with new boarding accommodation which is still in the planning stages. In the prior year Freehold property included £13,222k of costs relating to the new Preparatory School development which was completed in the year. These costs have been removed from the asset under construction category and are now being depreciated.

Property, valued at its historic cost of £200k in 1947, is retained as a Permanent Endowment within the accounts of the SABST. Depreciation is not chargeable on the property. All tangible fixed assets are held for use in charitable activities.

The School has substantial long-held historic assets used in the course of the School’s educational activities. These comprise listed buildings on the School campus, together with their contents comprising works of art, ancient books and manuscripts and other treasured artefacts. Because of their age and, in many cases, unique nature, reliable historical cost information is not available for these assets and could not be obtained except at disproportionate expense. However, in the opinion of the Governors, the depreciated historical cost of these assets would now be immaterial.

42

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

12. SECURITIES INVESTMENTS

Consolidated and School
At 1 September
Funds invested
Funds divested
Funds awaiting investment
Reinvested income
Investment management fees
Increase in the value of investments
At 31 August
Investments comprise:
Equities
Cash		 2021
2020
£’000
£’000
30,779 29,931
4,000 11,173
- (12,606)
- 1,809
386 580
(366) (191)
7,659 83
42,458 30,779
2021
2020
£’000
£’000
42,453 28,970
5 1,809
42,458 30,779

All investments are held for charitable use. All are listed on the London Stock Exchange, except for an investment at cost of £100 in a subsidiary company, Brentwood School Design and Build Limited.

13. PROPERTY INVESTMENTS

Consolidated and School
Valuation at 1 September
Disposals at net proceeds
Profit on Disposal
Valuation at 31 August		 2021
2020
£’000
£’000
- 175
- (243)
- 68
- -

14. STOCK

Catering stock
Other consumables
Uniform and other goods for resale		 2021
2020
2021
2020
£’000
£’000
£’000
£’000
18 12 18 12
8 15 8 15
164 141 - -
Consolidated
School
190 168 26 27

43

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

15. DEBTORS

Due within one year:
Fees and extras
Trade debtors
From subsidiary company
Other debtors
Due after one year
From subsidiary company
From Mortgagee		 2021
2020
2021
2020
£’000
£’000
£’000
£’000
268 281 190 281
2 2 2 2
- - 74 57
786 703 776 611
Consolidated
School
1,056 986 1,042 951
- - 180 105
- 245 - 245
- 245 180 350

In earlier years, capital works by way of investment in the Sports Centre buildings have been financed by loans from the School’s General Reserve (unrestricted funds) to its subsidiary, Brentwood School Enterprises. The loan was increased by £75k during the year to continue to support Brentwood School Enterprises during the Covid pandemic.

The mortgage of £245k on a residential property in Suffolk was repaid in full during the year.

16. CREDITORS: amounts falling due within one year

Deposits from parents
Trade creditors
Taxation and social security
Other creditors
Deferred Income:
Fees in Advance Scheme (note 17)
Fees received from parents in advance of term		 2021
2020
2021
2020
£’000
£’000
£’000
£’000
2,029 1,992 2,030 1,992
1,088 359 1,053 309
390 336 369 325
1,822 2,378 1,743 2,319
419 442 419 442
2,421 1,854 2,421 1,854
Consolidated
School
8,169 7,361 8,035 7,241

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BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

17. CREDITORS: amounts falling due after one year

Fees in Advance Scheme
Other creditors
ADVANCE FEE PAYMENTS		 2021
2020
2021
2020
£’000
£’000
£’000
£’000
349 398 349 398
- - - -
Consolidated
School
349 398 349 398

Parents may enter into a contract to pay school fees two years or more in advance. The money may be returned at any time, subject to certain conditions, on receipt of notice. Assuming all current pupils in the scheme remain at the School, advance fees will be applied as follows:

After 5 years
Within 2 to 5 years
Within 1 to 2 years
Within 1 year (note 16)
Summary of movements in liability
Balance at 1 September 2020
New contracts
Closed contracts
Amount used to pay fees
Amount accrued to contract as debt financing cost
Balance at 31 August 2021
18.
FINANCIAL INSTRUMENTS
Financial assets measured at fair value through profit or loss:
· Investments in liquid equity instruments
Financial assets measured at amortised cost:
· Debtors
· Cash (including cash investments)
Financial liabilities measured at amortised cost:
· Trade and other creditors		 2021
2020
£’000
£’000
- -
110 134
239 264
349 398
419 442
768 840
2021
2020
£’000
£’000
840 1,022
384 341
(3) (43)
(455) (487)
2 7
768 840
2021
2020
£’000
£’000
42,458 28,970
398 671
6,866 8,449
4,555 3,612

The fair value of investments is taken from their quoted market values at the year end.

45

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

19. LEASES

At the year end, the future minimum lease income due to the School under non-cancellable operating leases was as follows:

Within 1 year
Within 2-5 years
Total income receivable at 31 August		 2021
2020
£’000
£’000
210 106
365 17
575 123

Rental receipts during the year totalled £129k (2020: £134k).

At the year end, the following lease commitments were payable under non-cancellable rental operating leases as follows:

Within 1 year
Within 2-5 years
Total commitments at 31 August		 2021
2020
£’000
£’000
69 87
83 34
152 121

Lease payments during the year totalled £90k (2020: £229k).

20. CAPITAL COMMITMENTS

At 31[st] August 2021 and 2020, respectively, the School had the following unprovided capital commitments:

21. FUNDS OF THE SCHOOL

The School’s funds are analysed under the following headings:

a) UNRESTRICTED FUNDS

Unrestricted funds represent accumulated income from the School’s activities and other sources that are available for the general purposes of the School.

46

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

21. FUNDS OF THE SCHOOL (CONTINUED)

b) RESTRICTED FUNDS

These consist of two funds:

c) PERMANENT ENDOWMENT

The 1947 historic cost of the School’s land and buildings is carried as a Permanent Endowment within the SABST. The Brentwood School CIO is the sole corporate Trustee of this Permanent Endowment as set out in the Charity Commission scheme of 2013.

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

At 31st August 2021
Tangible fixed assets
Securities investments
Net current assets
Long term liabilities
Net assets		 Unrestricted
Restricted
Endowed
Consolidated
Total
£’000
£’000
£’000
£’000
54,899 - 200 55,099
42,458 - - 42,458
(136) 78 - (58)
(349) - -(349)
96,872 78 200 97,150
At 31st August 2020
Tangible fixed assets
Securities investments
Net current assets
Long term liabilities
Net assets		 Unrestricted
Restricted
Endowed
Consolidated
Total
£’000
£’000
£’000
£’000
53,202 - 200 53,402
30,671 108 - 30,779
356 323 - 679
(398) - -(398)
83,831 431 200 84,462

47

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

23. SUMMARY OF MOVEMENTS ON MAJOR FUNDS in 2020/21

Consolidated
Unrestricted funds
General Reserve
Restricted funds
BSGCT
Bursaries Fund
SABST
Total Funds		 At 1st Sep
2020
Income
Expenditure
Transfers
Gains/
(losses)
At 31st Aug
2021
£’000
£’000
£’000
£’000
£’000
£’000
83,831 33,551 (28,527) 344 7,673 96,872
78 - - - - 78
353 5 - (344) (14) -
200 - - - - 200
84,462 33,556 (28,527) - 7,659 97,150

Transfers were made from the Bursaries Fund of £344k (2020: £289k) to fund bursaries and from BSGCT of £0.4k (2020: £0.4k) to fund travel bursaries.

SUMMARY OF MOVEMENTS ON MAJOR FUNDS 2019/20

Consolidated
Unrestricted funds
General Reserve
Restricted funds
BSGCT
Bursaries Fund
Permanent Endowment
SABST
Total Funds		 At 1st Sep
2019
Income
Expenditure
Transfers
Gains/
(losses)
At 31st Aug
2020
£’000
£’000
£’000
£’000
£’000
£’000
79,916 29,893 (26,409) 277 154 83,831
78 - - - - 78
581 52 - (277) (3) 353
200 - - - - 200
80,775 29,945 (26,409) - 151 84,462

The reserves of the wholly owned trading subsidiary, Brentwood School Enterprises, of £26k (2020: £40k) are held within General Reserves.

48

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

24. PENSION SCHEMES

Retirement benefits to employees of the School are provided through a defined benefit scheme and defined contribution schemes, which are funded by the School’s and employees’ contributions.

Defined benefit scheme

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 £2,259,568 (2020: £2,072,863) and at the year-end £265,010 (2020 - £239,924) 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. The consultation closed to response on 19 August 2021 and the Government is currently analysing the responses.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the cost cap mechanism review 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.

49

BRENTWOOD SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Defined contribution schemes

The Charity also contributes to individual personal pension schemes for support staff at a rate of 10% of annual basic pay where employees make a contribution of 5%.

Contributions to these schemes are charged in the SOFA in the period in which the salaries to which they relate are payable.

25. SUBSIDIARY COMPANIES

The School has dominant influence over its two subsidiary companies:

Brentwood School Enterprises, a company limited by guarantee (Registration number 02019002), has principal activities of running sports facilities and a school shop. All members of the company are Governors of the School and Trustees of Brentwood School CIO.

Brentwood School Design & Build Limited (Company Number: 13244041) was established in March 2021 to administer building works on the School’s behalf. The Directors of the Company are also members of the School’s Capital Projects Committee.

The assets and liabilities of Brentwood School Enterprises at the year-end were as follows:

Tangible Fixed Assets
Current Assets
Represented by:
Profit and Loss Account
Creditors: amounts falling due within one year
Creditors: amounts falling due after one year		 2021
2020
£’000
£’000
58 72
355 249
(206) (176)
(180) (105)
27 40
27 40

The School is deemed to benefit from 60% of the use of the Sports Centre facilities and Brentwood School Enterprises from the remaining 40%. Therefore, the cost of utilities, equipment and other services of benefit both to the School and Brentwood School Enterprises are allocated on a 60:40 basis.

During the year Brentwood School Enterprises made supplies to the School totalling £86k (2020: £78k). The School made supplies to BSE totalling £1k (2020: £1k). At 31[st] August 2021, Brentwood School Enterprises owed the School £71k (2020: £46k), which includes the qualifying donation of £78k (2020: £40k), in addition to the loan of £180k (2020: £105k).

The transactions during the year of Brentwood School Design and Build are immaterial and therefore the Company has not been consolidated.

50

BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2021

26. RELATED PARTY TRANSACTIONS

The Charity Commission, by order dated 30[th] April 2007, has confirmed that Governors, and any connected parties, who undertake appropriate professional services for the School may be paid the normal charges associated with such services. There were no Related Party transactions during the year.

27. BRENTWOOD SCHOOL RESULTS

BRENTWOOD SCHOOL RESULTS
Income
Expenditure
Gains and losses
Net movement in Funds		 2021
2020
£’000
£’000
32,714 30,009
(27,685) (25,348)
7,659(974)
12,688 3,687

28. POST BALANCE SHEET EVENTS

The School secured and received a £30m Private placement on 15 September 2021 to further enhance the financial flexibility of the school including the provision of additional bursaries. The loan is unsecured and repayable in 2051, with an interest rate of 2.36% p.a.

51