Report & Accounts For the year ended 31[st] August 2022
## Middleton Hall Lane, Brentwood, Essex CM15 8EE
Brentwood School is a Charitable Incorporated Organisation Charity Registration Number: 1153605
## CONTENTS
|CONTENTS||
|---|---|
||**Page**|
|Governors, Officers, School Addresses and Advisors|1-4|
|Annual Report of the Governors (Including Strategic Report)|5-19|
|Statement of Governors’ Responsibilities|20|
|Independent Auditor’s Report|21-23|
|Consolidated Statement of Financial Activities|24-25|
|Consolidated and School Only Balance Sheet|26|
|Consolidated Cashflow Statement|27-28|
|Notes to the Accounts|29-47|
GOVERNORS, OFFICERS, SCHOOL ADDRESSES AND ADVISORS
The Trustees are also Governors of Brentwood School, a Charitable Incorporated Organisation, reg istered 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 school 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; Formerly The Senior and Managing Partner of Kingston Smith LLP and chairman of a number of bodies including the Government’s Professional and Business Services Council, Metro Bank Plc and the Policy and Resources Committee of the City of London Corporation. Member of the Court of Common Council; Chairman of the Capital Buildings Board and of a private wealth management business in addition to non-executive directorships_
## **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
_Chartered Accountant; Chairman of Digital Technology Advisory Group; Chairman of Boom Radio; Former Partner in KPMG LLP_
## **Mr Paul Beresford** FNAEA MARLA
_Chairman of Beresfords Group Ltd; Director of Biminster Homes Ltd_
**Lord Black of Brentwood** MA Hon FCIPR FRSA (OB)
_Member of the House of Lords; Deputy Chairman of Telegraph Media Group Ltd; Chairman of The Royal College of Music; Trustee, Imperial War Museum Foundation; Chairman of the Commonwealth Press Union Trust_
## **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)
_Optometrist; Visiting Professor at London South Bank and City Universities; Director of Research, Institute of Optometry_
## **Dr Mark Fenton** MA MSc MA PhD DipEdLaw FRSA (OB)
_Chief Executive, Grammar School Heads Association; Former Headmaster of Dr Challoner’s Grammar School and Chief Master of King Edward’s School Birmingham_
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GOVERNORS, OFFICERS, SCHOOL ADDRESSES AND ADVISORS
## **Mr Jason Fergus** FCIMSPA
_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; Formerly Chairman of the Financial Conduct Authority and, previously, of KPMG in the UK_
## **Mrs Amanda Hardy** KC LLB (Hons), LLM (Tax), AKC – Current Parent
_Barrister, 5 Stone Buildings, Lincoln’s Inn; Deputy High Court Judge (Chancery Division); Chair of the Chancery Bar Association (2020-2022); Bencher of the Middle Temple;; Liveryman of the Worshipful Company of Tax Advisors_
## **Mr Matthew Hampson** BEng (Hons) FBCS – Current Parent
_Chief Digital Officer, Nomura International; Fellow of the British Computer Society; Liveryman of the Worshipful Company of Information Technologists_
## **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 (to November 2021)
_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)
_Farmer and Company Director; Chairman of Trustees, Perry Foundation; Liveryman of Worshipful Company of Farmers_
## **Mr Sharath Jeevan** MA BA (Hons) MBA MST
_Founder & Executive Chairman of Intrinsic Labs; Founder & Former CEO of STIR Education; Founding Chief Executive of Teaching Leaders (now Ambition School Leadership)_
## **Professor Christopher Tout** MA PhD (OB)
_Fellow and Senior Lecturer in Mathematics, Churchill College; Professor of Stellar Evolution and John Couch Adams Astronomer, University of Cambridge_
## **Cllr James Tumbridge** CC MCIArb LLB (Hons)
_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 (to November 2021)
## **Education Committee (Termly)**
Dr Mark Fenton (Chairman from 1st September 2022) Mr John Griffith-Jones (Acting Chairman from November 2021 to 31st August 2022) Mrs Rosemary Martin (Chairman to November 2021) Mrs Susan Dalgarno Mrs Jenny Jones
## **Preparatory School Committee (Termly)**
Mrs Susan Dalgarno (Chairman from 1st September 2022) Mrs Jenny Jones (Chairman to 31st August 2022) Professor Bruce Evans The Venerable David Lowman Mr Scott Norris
## **Scholarships & Awards Committee (As required, normally twice a year)**
Professor Christopher Tout (Chairman) Mr Matthew Hampson Mrs Rosemary Martin (to November 2021) 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 (to November 2021)
## **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 (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)**
Mr John Griffith-Jones (Chairman) Mr David Elms (from 1[st] October 2021) Lord Flight of Worcester Mr Philip Saunders (Co-opted member)
## **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 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 Preparatory School** (Registered Office) Middleton Hall Middleton Hall Lane Middleton Hall Lane Brentwood Brentwood Essex CM15 8EE 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 Auditors: Crowe U.K. LLP, 55 Ludgate Hill, London, EC4M 7JW
Investment Advisors:
- Redington, Floor 6, One Angel Court, London EC2R 7HJ
Architects:
- Cottrell and Vermeulen Architecture, 1B Iliffe Street **,** London SE17 9AX
Insurance Brokers:
- Hettle Andrews, 2 Brunswick Square, Birmingham B1 2LP
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REPORT OF THE GOVERNORS For the year ended 31[st] August 2022
## **Headmaster’s Report**
In 2022, Brentwood School celebrated the 400th anniversary of the signing of the School Statutes on 18th July 1622. From that point, the values of Virtue, Learning and Manners have guided all that we do and we continue to aspire to live up to these values as we prepare our students for tomorrow’s challenges.
We encourage and inspire our pupils to take part, to challenge themselves: to dare to try. Our reputation for encouraging each child to develop and nurture their passions, as well as their academic interests, has led to record demand for places throughout the School resulting in a total roll of 1,953 at September 2022, including 583 in the expanded Preparatory School.
For many years, Brentwood School has been firmly established in the educational landscape. A place of learning since 1557; a place with deep roots that provide stability in a changing world; and a place where we turn challenges into opportunities to ensure we face the future with confidence. Above all, we are a community, with a shared vision, common purpose and a determination that everything we do will benefit the young people of today (and tomorrow) who are in our care.
A key pillar of our strength is our desire to look outwards and establish partnerships and strong working relationships with others to support the wider community.
- We are developing strong and meaningful relationships with local maintained primary and secondary schools, independent schools in the South East and beyond, local businesses and national organisations, local charities and universities within the UK and abroad.
- We have an international outlook, attracting exceptional demand from overseas boarders and finding inspiration for best educational practice across the world.
## **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.
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REPORT OF THE GOVERNORS For the year ended 31[st] August 2022
The School has a long history, founded on the cusp of the accession of Queen Elizabeth I. Four hundred years later, in 1957, the young Queen Elizabeth II opened the Queen’s Science Building. The building remains at the heart of the School’s strong science programme and boasts 21 first rate science laboratories, updated over recent years as part of a rolling programme of planned refurbishments. In September 2022, the Brentwood School Community joined the Nation in honouring HM Queen Elizabeth II following her death after 70 years on the throne.
_HM The Queen opening the Queen’s Science Building at Brentwood School in 1957_
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.
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REPORT OF THE GOVERNORS For the year ended 31[st] August 2022
## **Virtue, Learning and Manners**
As we celebrate the 400[th] anniversary of John Donne’s enshrinement of our 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.
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]_
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.
## **Our Aims**
We aim to provide a first class education for pupils aged between 3 and 18.
- _**We ensure** that each individual pupil is safe and valued in an inclusive community._
- _**We provide** a range of opportunities designed to enable every pupil to further their potential, enjoy their learning and achieve the best possible academic outcomes._
- _**We inspire** students to emerge as intellectually curious and resilient young people with leadership skills, who work well with and care for others._
- _**We challenge** students to develop strong moral purpose and take principled action within the school, local and international community._
_Preparatory School pupils celebrate ‘Kindness Week’_
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REPORT OF THE GOVERNORS For the year ended 31[st] August 2022
## **ACTIVITIES AND ACHIEVEMENTS THIS YEAR IN SUPPORT OF OUR AIMS**
- _**We ensure that each individual pupil is safe and valued in an inclusive community.**_
Our pastoral care continues to underpin our educational provision. Our established series of events for all Senior School pupils, “The Big Conversation'', complements our extensive Wellbeing programme and assembly and chapel themes and enables pupils to engage respectfully in conversations about sensitive issues. This year’s conversations explored equality, diversity and inclusion and centred around challenging and tackling racism and discussing issues linked with LGBT+ young people.
In celebration of Black History month in October, our student-led Culture & Diversity Forum ran a week of events. The comprehensive programme included pupil presentations, a ‘Windrush’ lecture and discussion, a dance workshop, language lesson and food tasting. In the most recent ISI Inspection, there was praise for the achievements of this student group and their work in ensuring all pupils feel part of a safe and inclusive community.
Our annual Equal Opportunities Audit ensures that we reflect on the progress we have made but also that we continue to challenge ourselves. Inclusivity continues to be a key pastoral priority and we have reviewed our curriculum to ensure that it is relevant to our diverse student body.
We value and celebrate our overseas boarders who contribute to the life of the School. Day students are invited into the boarding houses to visit their friends in boarding and this year, in addition to welcoming new teaching staff to the boarding houses as part of their induction programme, boarders have invited their teachers to join them for tea in their common room.
Given the increase in student numbers in recent years, the House system was restructured in summer 2022 to provide pupils with even more opportunities to participate in House events and activities, including charitable activities, the performing arts and sporting competitions.
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REPORT OF THE GOVERNORS For the year ended 31[st] August 2022
- _**We provide a range of opportunities designed to enable every pupil to further their potential, enjoy their learning and achieve the best possible academic outcomes.**_
At Brentwood School, we create and develop a holistic curriculum which helps students develop skills and attributes so that they can become the best version of themselves. We aim to harness the talents and aptitudes of every child in an inclusive community.
In summer 2022, our Upper Sixth cohort completed their first set of public examinations following the cancellation of their GCSEs in 2020 due to the Covid pandemic. Despite restrictions through much of their Lower Sixth year, we continued to deliver a full curriculum. The excellent results are testament to the efforts of teachers and students.
- In the International Baccalaureate, our average points total was 40, equivalent to 4 A*/A Levels;
- At A Level, 55% of A Level grades were at A*/A, and 78% A*-B, with 6 students achieving straight A*s;
- In BTEC Extended Diploma (Business and Sport), no student achieved less than the equivalent of AAA at A-level, and 7 students achieved the equivalent of A*A*A*;
- Over 80% of students were accepted at their first choice university, including Cambridge, Oxford and Imperial College, London.
- _**We inspire students to emerge as intellectually curious and resilient young people with leadership skills, who work well with and care for others.**_
We provide an extensive co-curricular programme which inspires passions, builds self-confidence and instils a desire to contribute to the community.
- This year, over 1,350 students represented the School across 13 different _**Sports**_ , achieving county and regional success in all our major sports with 9 teams competing on the national stage and 5 students selected for Independent Schools national squads.
- 316 students developed their life and leadership skills through our _**Combined Cadet Force**_ activities and 236 enrolled in the _**Duke of Edinburgh’s Awards**_ across the three levels - Bronze, Silver and Gold. Meanwhile, our _**Forest School**_ programme encourages children across the School to develop a love of the outdoors, using the extensive woodland within our 72 acre site.
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## REPORT OF THE GOVERNORS
For the year ended 31[st] August 2022
- Our _**Performing Arts**_ Faculty has an excellent reputation as one of the most ambitious, energetic and successful in the country. As a Steinway School since 2019, and with an established partnership with Junior Guildhall School of Music & Drama, our students have unrivalled opportunities to develop as performers and musicians. Annually we enjoy 70 performances across the disciplines of Drama, Dance and Music including a newly formatted House Music competition, The Winter Theatrical and the Dance Show.
- We have an outstanding _**Chess**_ programme. A highlight was our February tournament with over 80 players in the Under 11 section alone. Our Year 7/8 team came 3rd in the National Junior Challenge final and we qualified for the National U19 Schools. A total of 45,992 moves were played by pupils in House chess competitions in 2021/22.
- Our _**Public Speaking**_ team competed in the national Finals of the ESU Churchill Schools Competition and our Junior and Senior Quiz teams became regional champions and qualified for the national finals.
- Our pupils raised over £44,000 in _**charitable donations**_ through events such as a food bank drive, student-led competitions and events and non-uniform days.
- We encourage our pupils to explore their creativity through _**Art and Technology,**_ including exploration and experimentation in the Prep School Futures Room.
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REPORT OF THE GOVERNORS For the year ended 31[st] August 2022
- _**We challenge students to develop strong moral purpose and take principled action within the school, local and international community.**_
During our recent ISI Inspection in September 2022, Inspectors commended our polite and wellbehaved pupils and on the warm reception they had received from our staff. Their report can be found on our website.
## _**We enable our pupils to become the best version of themselves by developing Virtue, Learning and Manners**_
_**WIDER STRATEGIC GOALS AND WHAT WE HAVE ACHIEVED IN THE PAST YEAR**_
Our wider strategic objectives supplement our aims and are embedded in our core strategic strands. Over the past year we have made progress in each of these areas:
## ● _**Developing Access -**_ In 2021/22:
- We spent over £2.1m (2021: £1.9m) on means-tested bursaries, supporting 123 (2021: 119) pupils, the equivalent of one bursary for every 10 full fee senior places.
- ○ 87 children received a discount on fees of at least 75%. Of these, 57 pupils paid no fees at all.
- The average bursary award was 83% of the fees and total spend on bursaries represents over 7.3% of Senior School gross fee income and 73% of the School’s total spend on awards and remissions.
## ● _**Developing Community -**_ During the year we:
- Strengthened our partnerships with centres of excellence including Junior Guildhall School of Music & Drama and Saracens Rugby Club.
- Established new relationships with organisations and schools supporting disadvantaged young people who might benefit from transformational bursaries.
- Invited our wider community to celebrate the 400th anniversary of our Statutes at our 1622 Fete.
- Developed further use of the School’s facilities by the wider community. Brentwood Beagles Athletics Club gained 250 members within four months following their relocation to Brentwood School.
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REPORT OF THE GOVERNORS For the year ended 31[st] August 2022
## ● _**Developing Learning -**_ Over the past year:
- We have created a coherent Careers education programme, with all Year 11 students undertaking valid work experience, and improved guidance and support for all Year 9 and Year 11 students in making choices about their future.
- We have revised the structure and timings of the School day in order that cocurricular activities, in particular Outdoor Education and Service opportunities, can be more effectively delivered, while not compromising on students’ academic performance.
- We have embedded the Brentwood Learner Profile effectively across the School community so it facilitates better learning, better character and personal development, and better outcomes for our students.
## ● _**Developing People**_ - In 2021/22:
- We have continued to train staff (teaching and operational) in targeted communication and collaboration skills through the online platform CoreStrengths. Middle Leaders received additional training and are using these skills to improve communication and effectiveness within their teams.
- ○ We continue to develop partnerships with universities as part of our PGCE placement programme.
- We successfully moved our NQT (Newly Qualified Teacher) programme over to the new 2 year ECT (Early Career Teachers) Framework in line with national guidelines.
- We continue to run a highly successful PGCE and ECT programme, praised by Buckingham University and ISTIP respectively.
- _**Developing Facilities**_ - This year we spent over £1.0m on enhancing the site:
- refurbishing Science laboratories and Food & Nutrition classrooms
- adding three additional classrooms by remodelling under-utilised space
- extending our school coach park (we already transport 200+ pupils every day)
- adding additional and improving existing floodlighting to extend the use of our extensive sports facilities by pupils and the wider community
- upgrading sports equipment and facilities
- upgrading our dining facilities, especially within the Preparatory School
- improving outdoor spaces and enhancing our environment
- updating our toilet and changing areas
## ● _**Developing Financial Health**_
- Our strong commitment to financial management over many years has meant that we have been able to drive forward our educational vision despite the challenges of the past few years.
- We have fully invested the debt placement funding of £30m secured in September 2021. In time, this will further enhance the financial flexibility of the School, including our determination to further expand our bursary programme.
- We continue to move forward with our next major projects: the extension of our Maths Faculty to provide five additional classrooms and the planned construction of an extensive boarding house to meet the growing demand for boarding places.
- Our ongoing commitment to long term energy contracts has meant that the impact of the gas price increase is contained within contracts fixed to 2025.
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## REPORT OF THE GOVERNORS
For the year ended 31[st] August 2022
## **We invest for the future.**
**Today’s pupils benefit from decisions made in the past.**
**Tomorrow’s pupils will benefit from the decisions we make now.**
## _**OUR STRATEGIC AIMS IN 2022-23**_
In setting our aims for 22-23 we have been guided by our wider strategic objectives, by our core tenets of Virtue, Leaning and Manners and our responsibilities under the Charities Act 2011. We have focused on the following key areas:
- **Independence** _**- Individual responsibility and accountability**_
- **Interdependence -** _**Knowing, caring for and valuing all members of our community**_
- ○ **Infrastructure -** _**Ensuring our campus is fit for purpose, now and in the future**_
## _**OUR CONTINUED COMMITMENT TO OUR CHARITABLE PURPOSE**_
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 a reduction on business rates on the part of its estate utilised for charitable purposes. We are mindful of our public benefit obligations and committed to ensuring that our contribution to society is impactful.
We are proud of our place in the community, and always looking to expand our work in partnership with state-sector colleagues and to improve educational provision for all. We already spend over £2m per year on means-tested bursaries, which allows children from disadvantaged socio-economic backgrounds to have the opportunity of an outstanding education, which can transform their life chances.
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REPORT OF THE GOVERNORS For the year ended 31[st] August 2022
We also have ambitious plans to increase the number of bursaries we are able to offer through the work of the Brentwood School Foundation. The provision of education is a charitable and noble act and our bursaries are central to our ethos as a school.
Our bursary students have a strong track record of academic achievement. Our first scholar to be funded entirely through the Brentwood School Foundation, Sila (right), achieved 37 points at IB and has taken up a place at Kings’ College London to study History and International Relations.
Most importantly our bursary students have the opportunity and encouragement to flourish. We have just appointed a Bursary Mentor to support students and their families through their time at the School. The determination and achievements of our bursary students enrich the experience of the whole 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. In 2022, we are bringing all our fundraising activities under the management of a new Director of External Relations with oversight by the Board of the Brentwood School Foundation and, ultimately, the Governors.
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.
## **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.
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REPORT OF THE GOVERNORS For the year ended 31[st] August 2022
## **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, boarding, health and safety and IT. The Executive Committee meets 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 Director of External Relations 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.
The Charity has two wholly owned non-charitable trading subsidiaries.
_**Brentwood School Enterprises Limited**_ (Company Number: 2019002) is responsible for running the Brentwood School Sports Centre, for operating the School Shop and for letting the School premises and sports fields when they are not required by the School. Members of the Council of Management are directors for the purpose of the Companies Act 2006. The School’s Director of Finance is the Company Secretary.
_**Brentwood School Design & Build Limited**_ (Company Number: 13244041) was incorporated in March 2021 to administer building works on the School’s behalf. The Directors of the Company, Sir Michael Snyder, Mr Paul Beresford and Mr Scott Norris, are also members of the School’s Capital Projects Committee. The School’s Director of Finance is the Company Secretary.
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## REPORT OF THE GOVERNORS
For the year ended 31[st] August 2022
## **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. Operational 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. In 2022, we completed a consultation with operational staff to update contractual terms and conditions.
The School is proud of its individualised Professional Development programme, tailored to our staff’s specific needs and interests. Teachers are encouraged to undertake research and development projects, to support their own practice and that of their peers. Operational staff are encouraged to access professional training and development appropriate to their role.
## **Pay Policy**
Remuneration is set by the Governors, informed by the Governors’ Finance & Audit Committee and its Terms & 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 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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## FINANCIAL REVIEW
## **Financial Summary**
The consolidated net incoming funds from operations for the year amounted to 2022: £5.233m (2021: £5.029m). However, this surplus was offset by a loss on investments of £5.322m (2021: gains on investments of £7.659m), leaving an overall net deficit in funds for the year of £0.090m (2021: net surplus of £12.688m). This figure includes Brentwood School Enterprises (BSE) net loss of £8.4k (2021: a net loss of £13.3k), after transfer of the donation of £258.9k (2021: £78k) to the School and Brentwood School Design & Build Limited’s (BS D&B) made no profit as all costs were charged to the School.
The BSE trading position recovered strongly in 2022, with unprecedented membership numbers in the Sport Centre, peaking at over 850 in August 2022, and record uniform sales through the School Shop. Overall, the Trading Subsidiary, BSE, generated a turnover of £1.188m (2021: £0.817m) from its core operations. As a result, BSE posted an operating profit of £250k (2021: £65k). The exceptionally strong trading performance meant that BSE was able to pay back £50k of the additional loan facility extended temporarily by the School during Covid restrictions. The loan stood at £130k (2021: £180k) at the year-end.
2021/22 saw the first full year of trading of BS D&B, first incorporated on 4th March 2021. This trading entity was created to support the School’s capital building programme. Since its inception it has acted on behalf of the School as Developer in the initial phases of the construction of a new boarding house and other residential dwellings. The consolidated results reflect the results of the BS D&B since its incorporation. BSB&D posted a turnover of £1.162m, which was eliminated on consolidation. Under the terms of a Development Agreement with the School, the Developer’s overhead will be charged at a rate of 2% of all Development Charges.
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. This will give it the ability to meet its charitable purpose and to fund additional bursaries to deserving pupils who would not otherwise be able to benefit from the education offered by the School.
This year, the School’s investment funds reflected the additional investment of £30m generated via the debt placement and the Investment Committee appointed specialist advisors, Redington, to restructure the School’s increased portfolio and oversee the transfer of funds to the Fidelity Funds Network platform, from Hargreaves Lansdown. Investment charges reflect the cost of placing the additional funds in the market. Financing costs of £679k represent annual interest of 2.36% due on the debt placement of £30m.
The Governors’ target is to achieve a real rate of return of at least 3% above RPI over a ten year period. 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:
- Ensuring that the custody arrangements for the investments are secure;
- Taking advice as deemed appropriate on the outlook for financial markets and having regard to it in recommending the target School Benchmark to be adopted;
- Taking advice as deemed appropriate in selecting investments that are consistent with achieving the target School Benchmark;
- Determining appropriate constraints on the type of investments held;
- Ensuring an appropriate spread of investments to avoid excessive concentration or illiquidity risk;
- Ensuring that no restrictive covenants relating to the School long term loan are breached
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. The Investment Committee reports regularly to the Executive Committee and the Board of Governors.
17
## FINANCIAL REVIEW
## **Reserves Policy**
Details of the funds and the movements on them in the year are set out in Note 23.
After adjusting for restricted reserves, the School’s unrestricted general funds stood at £96.8m (2021: £96.8m) at the year-end, of which £54.4m (2021: £54.8m) represented funds deployed as part of the School’s premises and equipment, leaving £42.4m (2021: £42.0m) as free reserves, comprising investments (equities and cash awaiting investment) of £66.9m (2021: £42.5m), long term debt financing of £30m (2021: £NIL) plus other net assets of £5.5m (2021: net liabilities of £0.4m).
£0.1m is held within the Brentwood School General Charitable Trust (2021: £0.1m) representing individual gifts, legacies and grants given to the School for specific charitable purposes outside the School’s charitable objects.
The Trustees have set one year’s gross fee income as the minimum level for its core investment fund. Gross fee income for 2021/22 totalled £37.8m and the free reserves of £42.4m exceed this. In addition, the proceeds of the debt placement of £30m have been fully invested as part of the investment fund to generate additional funding, including for bursaries, over time. 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 BSE or BS D&B.
Note 21 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**
The Governors consider the risk of adverse legislative changes following a change of government and the affordability of fees by parents across the independent sector in an uncertain economic environment to be the principal risks faced by the School.
The School has record pupil numbers and remains in robust financial health. In setting the fees for 2022/23, 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.
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, are undertaken at regular intervals throughout the year.
The key control measures used by the Charity include:
- Terms of Reference for Trustees and Committees;
- Formal agendas for all Board and Committee activity;
- Effective Committee structure;
- Comprehensive strategic planning, budgeting and management accounting;
- Established organisational structure and lines of reporting;
- Formal written policies;
- Clear authorisation and approval levels;
- Annual reviews by the Governors of the School’s safeguarding, health and safety and other regulatory written policies in order to ensure effective application of the correct procedures and to ensure that all vetting procedures required by law for the protection of the vulnerable are conducted effectively;
18
## FINANCIAL REVIEW
- Regular review of the School’s Risk Register.
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 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.
19
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity and the group will continue to operate.
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 19th November 2022 and signed on its behalf by:
Sir Michael Snyder Chairman of Governors
20
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 2022 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:
- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 August 2022 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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
21
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRENTWOOD SCHOOL CIO
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.
## **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:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- sufficient accounting records have not been kept by the parent charity; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 19, 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 members. 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.
22
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRENTWOOD SCHOOL CIO
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 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 the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing 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 noncompliance 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** 21 December 2022
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.
23
## BRENTWOOD SCHOOL
## CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] AUGUST 2022
|**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**
Ancillary trading
3
Non-ancillary trading
4i
Other actvities
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**
**(losses)/gains**
(Losses)/Gains on investments
12
Transfers between funds
22
**Net movement in funds for the year**|**Unrestricted**
**Restricted**
**2022**
**2021**
**Funds**
**Funds**
**Total**
**Total**
**£’000**
**£’000**
**£’000**
**£’000**
34,909 - 34,909 31,509
451 - 451 280
1,188 - 1,188 920
424 - 424 240
291 - 291 386
9 - 9 7
37 - 37 214|
|---|---|
||**37,309 - 37,309 33,556**|
||366
366 174
938 - 938 855
453 - 453 84
710 - 710 51
708 - 708 366
31 - 31 43|
||3,206 - 3,206 1,573
28,870 - 28,870 26,954|
||**32,076 - 32,076 28,527**|
||5,233 - 5,233 5,029
(5,323)
(5,323) 7,659
(12) 12 - -|
||**(102) 12 (90) 12,688**|
24
## BRENTWOOD SCHOOL
## CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31[ST] AUGUST 2022
|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**
**2022**
**2021**
**Funds**
**Funds**
**Funds**
**Total**
**Total**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**(102) 12 - (90) 12,688**
**96,872 78 200 97,150 84,462**|
|---|---|
||**96,770 90 200 97,060 97,150**|
There were no transactions in the Statement of Financial Activities in respect of Endowed Funds in 2022 (2021: NIL).
All transactions in the 2022 column of the Statement of Financial Activities relate to unrestricted funds, with the exception of donations of £13k received under the '1622 Bursary Scheme.
The results for Brentwood School before consolidation are disclosed in note 26.
**The notes on pages 29 to 47 form part of these financial statements.**
25
## BRENTWOOD SCHOOL
## CONSOLIDATED AND SCHOOL BALANCE SHEETS AS AT 31[ST] AUGUST 2022
|**Notes**
**FIXED ASSETS**
Tangible assets
11
Securities investments
12
**CURRENT ASSETS**
Stock
13
Debtors:
Amounts due within one year
14
Amounts due after one year
14
Cash and deposits
**CURRENT LIABILITIES**
Creditors payable within one year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**LONG-TERM LIABILITIES**
Creditors payable after one year
16
**NET ASSETS**
**REPRESENTED BY:**
22
**UNRESTRICTED FUNDS**
General Reserve
**RESTRICTED FUNDS**
General Charitable Trust (BSGCT)
Bursaries Fund
**ENDOWED FUNDS**|**2022**
**2021**
**2022**
**2021**
**£’000**
**£’000**
**£’000**
**£’000**
54,600 55,099 54,553 55,040
66,877 42,458 66,877 42,458
**School**
**Consolidated**|
|---|---|
||121,477 97,557 121,430 97,498
237 190 48 26
1,085 1,056 1,463 1,042
- - 130 180
13,263 6,865 13,028 6,760|
||14,585 8,111 14,669 8,008
(8,475) (8,169) (8,531) (8,035)|
||6,110(58) 6,138(27)|
||127,587 97,499 127,568 97,471
(30,527) (349) (30,527) (349)|
||**97,060 97,150 97,041 97,122**|
||96,770 96,872 96,751 96,844
77 78 77 78
13 - 13 -
200 200 200 200|
||**97,060 97,150 97,041 97,122**|
These financial statements were approved by the Trustees on 19th November 2022 and were signed on its behalf by:
Sir Michael Snyder DSc Hon FGS FCA FRSA Chairman of Governors D J Elms Esq. MA FCA FCSI Honorary Treasurer
## **The notes on pages 29 to 47 form part of these financial statements.**
26
## BRENTWOOD SCHOOL
## CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31[ST] AUGUST 2022
|**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
Investment income and bank interest received
**Net cash used in investing activities**
**Cash flows from financing activities**
Funds generated from Private Placement
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**
8,737
(1,599)
-
(30,330)
300
(31,629)
30,000
(710)
**6,398**
**6,865**
**13,263**
**2022**|**£’000**
**£’000**
8,737
(1,599)
-
(30,330)
300
(31,629)
30,000
(710)
**6,398**
**6,865**
**13,263**
**2022**|**£’000**
**£’000**
7,994
(3,727)
1
(4,386)
393
(7,719)
-
(51)
**224**
**6,641**
**6,865**
**2021**|**£’000**
**£’000**
7,994
(3,727)
1
(4,386)
393
(7,719)
-
(51)
**224**
**6,641**
**6,865**
**2021**|
|---|---|---|---|---|
||||||
|||**13,263**||**6,865**|
**The notes on pages 29 to 47 form part of these financial statements.**
27
## BRENTWOOD SCHOOL
## NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31[ST] AUGUST 2022
## **i. Reconciliation of net income to net cash flow from operating activities**
||**2022**||**2021**||
|---|---|---|---|---|
||**£’000**|**£’000**|**£’000**|**£’000**|
|Net income||5,233||5,029|
|Elimination of non-operating cash flows:|||||
|· Investment and bank income|(300)||(393)||
|· Finance costs|710||51||
|Investment management charges|588||366||
|Depreciation charges|2,098||2,030||
|Profit on disposal of fixed assets|-||(1)||
|(Increase)/Decrease in debtors|(29)||175||
|Increase in stock|(47)||(22)||
|(Decrease)/Increase in creditors (excluding fees|(133)||794||
|in advance scheme and deposits)|||||
|Increase/(Decrease) in fees in advance scheme|199||(72)||
|creditors|||||
|Increase in parents’ deposits|418||37||
|**Movements in working capital**||3,504||2,965|
|**Net cash inflow from operations**||**8,737**||**7,994**|
|**ii. Analysis of cash and cash equivalents**|||||
|||**2022**||**2021**|
|||**£’000**||**£’000**|
|Cash at bank||12,238||5,842|
|Deposits||1,025||1,023|
|||**13,263**||**6,865**|
28
BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022
## **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 subsidiaries, Brentwood School Enterprises (BSE) and Brentwood School Design & Build Limited (BS D&B). 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 26. 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.
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.
29
BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022
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 subsidiaries, Brentwood School Enterprises and Brentwood School Design & Build Limited, are excluded from trading income and expenditure.
## **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.
30
BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022
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, fittings, 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 (2021: £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 (2021: £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 2022 have been included within current liabilities.
## **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.
31
BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022
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 multiemployer 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.
32
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **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|**2022**
**2021**
1,911 1,821
**£’000**
**£’000**
37,799 34,202
(2,890) (2,693)|
|---|---|
||**34,909 31,509**|
Means-tested bursaries totalling £2,123k were paid to 123 pupils (2021: £1,924k).
## **3. CHARITABLE ACTIVITIES – OTHER INCOME**
|**Ancillary trading income**
Registration fees
Income for educational trips
Income from the Fee Refund Scheme
Costs of Educational Trips|**2022**
**2021**
**£’000**
**£’000**
81 83
366 174
4 23|
|---|---|
||451 280
(366) (174)|
||**85 106**|
## **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**|**2022**
**2021**
**£’000**
**£’000**
1,188 817
(291) (267)|
|---|---|
||897 550
(647) (588)
- 103|
||**250 65**|
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 2022 is £258k (£2021: £78k).
33
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
The School’s wholly-owned subsidiary, Brentwood School Design & Build Limited, acts on behalf of Brentwood School CIO to develop capital projects. Its trading results are summarised below.
|**Brentwood School Design & Build - Trading Results**
Turnover
Cost of sales
Gross Profit
Administration
Other Operating income
**Operating loss**|**2022**
**£’000**
1,202
(1,184)|
|---|---|
||18
(18)
-|
||**-**|
The balance sheets of Brentwood School Enterprises and Brentwood School Design & Build are set out in note 24.
## **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
Costs|**2022**
**2021**
**£’000**
**£’000**
143 129
5 -
91
30
83
48
102 33|
|---|---|
||424 240
(453) (84)|
||**(29) 156**|
## **5. INVESTMENT INCOME**
|**INVESTMENT INCOME**||
|---|---|
|**Securities investment income:**
Equities (including cash holdings)|**2022**
**2021**
**£’000**
**£’000**
291 386|
||**291 386**|
## **6. BANK AND OTHER INTEREST**
|Bank Interest
Mortgage Interest|**2022**
**2021**
**£’000**
**£’000**
9 2
- 5|
|---|---|
||**9 7**|
The mortgage due to School was repaid in 2021.
34
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **7. GRANTS AND DONATIONS RECEIVABLE**
|**GRANTS AND DONATIONS RECEIVABLE**||
|---|---|
|Government Grant
Donations
Donations from Friends of Brentwood School|**2022**
**2021**
**£’000**
**£’000**
- 129
35 85
2 -|
||**37 214**|
2021 Government grant income relates to amounts received under the Coronavirus Job Retention Scheme where support staff were furloughed for the months January to May 2021.
## **8. ANALYSIS OF EXPENDITURE**
## **(a) Total expenditure**
|**Costs of raising funds**
Trading costs
**Cost of other activities**
Financing costs (note 9)
Investment management
Development costs
**Total costs of raising funds**
**Charitable expenditure**
Teaching
Welfare
Premises repair and maintenance
Support costs and governance
**Total charitable expenditure**
**Total expended**|**Staff Costs**
**Dep’n**
**Other**
**Total**
**Total**
**(note 10)**
**(note 11)**
**2022**
**2021**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
694 12 1,051 1,757 1,113
- - 710 710 51
- - 708 708 366
31 - - 31 43|
|---|---|
||**725 12 2,469 3,206 1,573**|
||15,352 - 1,522 16,874 15,639
580 16 2,476 3,072 2,588
1,117 2,070 3,037 6,224 6,028
1,657 - 1,043 2,700 2,699|
||**18,706 2,086 8,078 28,870 26,954**|
||**19,431 2,098 10,547 32,076 28,527**|
35
## BRENTWOOD SCHOOL
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **8. ANALYSIS OF EXPENDITURE (CONTINUED)**
- **(b) Governance included in support costs:**
|Remuneration paid to auditor for audit services
Reimbursement of travel costs to Governors|**2022**
**2021**
**£’000**
**£’000**
24 24
1 1|
|---|---|
||**25 25**|
Remuneration paid to Auditors for audit services includes irrecoverable VAT of £4,229 (2021: £3,950) The cost of travel was reimbursed to 4 members (2021: 2) of the Governing Body.
Auditor’s remuneration of £8,300 (2021: £8,000) for auditing the financial statements of Brentwood School Enterprises is included within ‘Trading Costs’.
## **9. FINANCE AND OTHER COSTS**
|Movements in bad debt provision and debts written off
Bank charges
Interest on fee deposits
Debt Placement Interest|**2022**
**2021**
**£’000**
**£’000**
23 44
4 5
4 2
679 -|
|---|---|
||**710 51**|
## **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|**2022**
**2021**
**£’000**
**£’000**
15,119 14,274
1,473 1,415
2,783 2,619
58 53|
|---|---|
||**19,433 18,361**|
No Governor received any remuneration or other benefits from Brentwood School or from any connected body. During the year the School received donations to the Bursary Fund under the 1622 Appeal from 3 trustees totalling £3,919. (2021; a donation of £5,000 without conditions was received from one trustee.)
||**2022**|**2021**|
|---|---|---|
|Aggregate employee benefits of key management personnel|1,071|1,011|
Key management personnel are the members of the Senior Leadership (Executive) Team of Brentwood School.
36
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **10. STAFF COSTS AND RELATED PARTY TRANSACTIONS (CONTINUED)**
|**STAFF COSTS AND RELATED PARTY TRANSACTIONS**|**(CONTINUED)**||
|---|---|---|
||**2022**|**2021**|
|**Number of higher paid employees whose benefits (excluding employer pension costs) exceeded**||**£60,000 were:**|
|£60,001 to £70,000|17|9|
|£70,001 to £80,000|2|3|
|£80,001 to £90,000|1|1|
|£90,001 to £100,000|2|1|
|£100,001 to £110,000|1|0|
|£110,001 to £120,000|1|2|
|£120,001 to £130,000|1|0|
|£130,001 to £140,000|0|0|
|£140,001 to £150,000|0|1|
|£160,001 to £170,000|1|0|
The average number of the School’s employees during the year, calculated on a full time equivalent (FTE) and actual basis, was 340 and 412 respectively (2021: 330 and 399), within the following categories:
|Teaching – Teachers
Teaching – Teaching Support
Welfare
Premises
Operational|**FTE**
**Actual**
**FTE**
**Actual**
206 221 200 217
46 75 45 73
14 31 13 28
33 37 33 35
41 48 39 46
**2022**
**2021**|
|---|---|
||**340 412 330 399**|
During the year termination payments amounted to £7k (2021: £NIL).
37
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **11. TANGIBLE FIXED ASSETS**
|**Consolidated**
**Cost**
At 1 September 2021
Disposals
Additions
**At 31 August 2022**
**Depreciation**
At 1 September 2021
Disposals
Charge for the year
**At 31 August 2022**
**Net book value**
**At 31 August 2022**
**At 31 August 2021**|**Leasehold**
**Fixtures,**
**equipment**
**and IT**
**Total**
**Unrestricted**
**Endowed**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
67,614 200 686 3,904 72,404
- - - (179) (179)
1,464 - - 135 1,599
**Freehold land and**
**buildings**|
|---|---|
||69,078 200 686 3,860 73,824|
||14,401 - 34 2,870 17,305
- - - (179) (179)
1,821 - 14 263 2,098|
||16,222 - 48 2,954 19,224|
||**52,856 200 638 906 54,600**|
||**53,213 200 652 1,034 55,099**|
|**School**
**Cost**
At 1 September 2021
Disposals
Additions
**At 31 August 2022**
**Depreciation**
At 1 September 2021
Disposals
Charge for the year
**At 31 August 2022**
**Net book value**
**At 31 August 2022**
**At 31 August 2021**|**Leasehold**
**Fixtures,**
**equipment**
**and IT**
**Total**
**Unrestricted**
**Endowed**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
67,613 200 686 3,513 72,012
- - - (146) (146)
1,464 - - 133 1,597
**Freehold land and**
**buildings**|
|---|---|
||69,077 200 686 3,500 73,463|
||14,401 - 34 2,537 16,972
-
- (146) (146)
1,819
14 251 2,084|
||16,220 - 48 2,642 18,910|
||**52,857 200 638 858 54,553**|
||**53,212 200 652 976 55,040**|
38
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **11. TANGIBLE FIXED ASSETS (CONTINUED** )
## **Assets under construction**
Freehold property includes £1,070k (2021: £154k) of costs associated with new boarding accommodation which is still in the planning stage and a further £483k of costs in relation to the construction of 5 additional classrooms.
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.
## **12. SECURITIES INVESTMENTS**
|**Consolidated and School**
At 1 September
Funds invested
Funds divested
Transfer between funds
Reinvested income
Investment management fees
(Decrease)/Increase in the value of investments
**At 31 August**
**Investments comprise:**
Equities
Cash|**2022**
**2021**
**£’000**
**£’000**
42,458 30,779
30,000 4,000
- -
40 -
290 386
(588) (366)
(5,323) 7,659|
|---|---|
||**66,877 42,458**|
||**2022**
**2021**
**£’000**
**£’000**
65,776 42,453
1,101 5|
||**66,877 42,458**|
All investments are held for charitable use. All are listed on the London Stock Exchange, except for an investment in a private equity fund, Hollyport ($568k), and an investment of £100 in a subsidiary company, Brentwood School Design and Build Limited.
A capital investment in Hollyport Secondary Opportunities VIII Unit Trust has been authorised by the Governors and committed, not yet drawn down: $3.7m (2021: $NIL)
39
## BRENTWOOD SCHOOL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **13. STOCK**
|Catering stock
Tuck Shop stock
Other consumables
Uniform and other goods for resale
**DEBTORS**
**Due within one year:**
Fees and extras
Trade debtors
From subsidiary companies
Other debtors
**Due after one year**
From subsidiary companies|**2022**
**2021**
**2022**
**2021**
**£’000**
**£’000**
**£’000**
**£’000**
27 18 27 18
2 - 2 -
19 8 19 8
189 164
-
**Consolidated**
**School**|
|---|---|
||**237 190 48 26**|
||**2022**
**2021**
**2022**
**2021**
**£’000**
**£’000**
**£’000**
**£’000**
195 268 113 190
2 2 2 2
- - 418 74
888 786 930 776
**Consolidated**
**School**|
||**1,085 1,056 1,463 1,042**|
||- - 130 180|
||**- - 130 180**|
## **14. DEBTORS**
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 reduced by £50k during the year.
## **15. CREDITORS: amounts falling due within one year**
|**CREDITORS: amounts falling due within one year**||
|---|---|
|Deposits from parents
Trade creditors
Taxation and social security
Other creditors
_Deferred Income:_
Fees in Advance Scheme
Other deferred income
Fees received from parents in advance of term|**2022**
**2021**
**2022**
**2021**
**£’000**
**£’000**
**£’000**
**£’000**
2,447 2,029 2,447 2,030
905 1,066 844 1,053
426 390 406 369
1,999 1,822 2,191 1,743
440 419 440 419
55 22
2,203 2,421 2,203 2,421
**Consolidated**
**School**|
||**8,475 8,169 8,531 8,035**|
Other deferred income represents sports centre membership and lessons paid to Brentwood School Enterprises in advance.
40
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **16. CREDITORS: amounts falling due after one year**
|Fees in Advance Scheme
Debt Placement|**2022**
**2021**
**2022**
**2021**
**£’000**
**£’000**
**£’000**
**£’000**
527 349 527 349
30,000 - 30,000 -
**Consolidated**
**School**|
|---|---|
||**30,527 349 30,527 349**|
## **ADVANCE FEE PAYMENTS**
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
**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 2022**|**2022**
**2021**
**£’000**
**£’000**
43 -
200 110
284 239|
|---|---|
||527 349
440 419|
||**967 768**|
||**2022**
**2021**
**£’000**
**£’000**
768 840
639 384
(8) (3)
(435) (455)
3 2|
||**967 768**|
## **DEBT PLACEMENT**
The School secured and received on 15th September 2022 a £30m Private Debt Placement 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.
41
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **17. FINANCIAL INSTRUMENTS**
||**2022**|**2021**|
|---|---|---|
|**Financial assets measured at fair value through profit or loss:**|**£’000**|**£’000**|
|· Investments in liquid equity instruments|66,877|42,458|
|**Financial assets measured at amortised cost:**|||
|· Debtors|761|398|
|· Cash (including cash investments)|13,263|6,865|
|**Financial liabilities measured at amortised cost:**|||
|· Trade and other creditors|35,010|4,555|
The fair value of investments is taken from their quoted market values at the year end.
## **18. LEASES**
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 income receivable at 31 August**
Rental receipts during the year totalled £139k (2021: £129k).|**2022**
**2021**
**£’000**
**£’000**
107 69
100 83|
|---|---|
||**207 152**|
|||
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 commitments at 31 August**|**2022**
**2021**
**£’000**
**£’000**
205 210
200 365|
|---|---|
||**405 575**|
Lease payments during the year totalled £224k (2021: £229k).
## **19. CAPITAL COMMITMENTS**
At 31st August 2022 and 2021, respectively, the School had the following unprovided capital commitments:
· Capital expenditure authorised by the Governors and contracted: £1.4m (2021: £NIL)
· Capital expenditure authorised by the Governors, not contracted: £NIL (2021: £630k)
42
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **20. 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.
## **b) RESTRICTED FUNDS**
These consist of two funds:
- i. BSGCT holds individual gifts, legacies and grants given to the School for specific purposes outside the School's charitable ojects.
- ii. During the year donations to the Bursaries Fund were made through the 1622 appeal and have been allocated to new bursary holders in 2022/23.
## **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.
## **21. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**At 31st August 2022**
Tangible fixed assets
Securities investments
Net current assets
Long term liabilities
Net assets|**Unrestricted**
**Restricted**
**Endowed**
**Consolidated**
**Total**
**£’000**
**£’000**
**£’000**
**£’000**
54,400 - 200 54,600
66,877 - - 66,877
6,020 90 - 6,110
(30,527) - -(30,527)|
|---|---|
||**96,770 90 200 97,060**|
|**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**|
43
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **22. SUMMARY OF MOVEMENTS ON MAJOR FUNDS in 2021/22**
|**Consolidated**
**Unrestricted funds**
General Reserve
**Restricted funds**
BSGCT
Bursaries Fund
SABST
Total Funds|**At 1st Sep**
**2021**
**Income**
**Expenditure**
**Transfers**
**Gains/**
**(losses)**
**At 31st Aug**
**2022**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
**£’000**
96,872 37,309 (32,076) (12) (5,323) 96,770
78 - - (1) - 77
- - - 13 - 13
200 - - - - 200|
|---|---|
||**97,150 37,309 (32,076) - (5,323) 97,060**|
No transfers were made from the Bursaries Fund during the year (2021: £344k). Transfers were made from BSGCT of £0.4k (2021: £0.4k) to fund travel bursaries.
## **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**|
The reserves of the wholly owned subsidiary, Brentwood School Enterprises of £18k (2021: £26k) are held within General Reserves. Brentwood School Design & Build has no reserves.
44
## BRENTWOOD SCHOOL
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **23. 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 £2,402,424 (2021: £2,259,568) and at the year-end £284,530 (2021 - £265,010) 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 2022 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.
The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020
The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.
45
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
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.
## **24. SUBSIDIARY COMPANIES**
The School has dominant influence over its two subsidiary companies:
## **i. Brentwood School Enterprises**
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.
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|**2022**
**2021**
**£’000**
**£’000**
48 59
507 354
(407) (206)
(130) (180)|
|---|---|
||**18 27**|
||**18 27**|
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 £180k (2021: £86k). The School made supplies to BSE totalling £1k (2021: £1k). At 31st August 2022, Brentwood School Enterprises owed the School £232k (2021: £72k), which includes the qualifying donation of £258k (2021: £78k), in addition to the loan of £130k (2021: £180k).
46
## BRENTWOOD SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022
## **23. SUBSIDIARY COMPANIES (CONTINUED)**
## **ii. Brentwood School Design & Build Limited**
Brentwood School Design & Build Limited (Company Number: 13244041) was established in March 2021 to develop building projects on the School’s behalf. The Directors of the Company are Governors of the School and Trustees of Brentwood School CIO.
The results of Brentwood School Design & Build Limited have been consolidated for the first time in 2022 reflecting the operations since incorporation.
The assets and liabilities of Brentwood School Design & Build 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|**2022**
**£’000**
-
289
(289)
-|
|---|---|
||**-**|
||**-**|
## **25. 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.
## **26. BRENTWOOD SCHOOL RESULTS**
|Income
Expenditure
Gains and losses
Net movement in Funds|**2022**
**2021**
**£’000**
**£’000**
36,380 32,714
(31,147) (27,685)
(5,323) 7,659|
|---|---|
||**(90) 12,688**|
47