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← Bishop Challoner School

2020-08-31-accounts

Charity Registration No. 1153948

Company Registration No. 08652238 (England and Wales)

BISHOP CHALLONER SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Chair of Trustees Patricia Mary Colling
Trustees Patricia Mary Colling (Chair of Trustees)
Tracey Ann Cassidy (Appointed 8 June 2020)
Dean Lee Lake
Sebastian John Francis O’Connell (Appointed 8 June 2020)
Rev Fr Stephen Wymer
Charity number 1153948
Company number 08652238
Principal address 228 Bromley Road
Shortlands
Kent
BR2 0BS
Registered office 228 Bromley Road
Shortlands
Kent
BR2 0BS
Auditors Ledger Sparks Audit LLP
Airport House
Suite 43-45
Purley Way
Croydon
Surrey
CR0 0XZ
Head Teacher Mrs P Anderson
Bursar Mr D Rolls

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees report 1 - 7
Independent auditor's report 8 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 22

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees of the charity, who are also the Directors of the company, Bishop Challoner School (“the School”), present their annual report and the audited financial statements for the School for the Year Ended 31 August 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Bishop Challoner School's constitution , the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.

Objectives and activities

Bishop Challoner is an independent Catholic school that also provides educational opportunities for nonCatholics. The school aims to provide a broad general education for 3 to 18-year-old boys and girls. The “allthrough” education provides them with a good moral grounding, outstanding pastoral care and excellent academic success. Bishop Challoner provides a supportive, nurturing and caring environment for the pupils and pupils support the Catholic ethos of the school. Catholicity is at the heart of the school and the constitution provides for strong Catholic leadership both from the teaching staff and Trustees.

We aim to:-

We work in partnership with parents to develop the talents and interests of all the young people entrusted to us. We aim to develop each individual pupil's potential, academically, personally and spiritually. We serve the wider community by making this education available to all, including those who cannot afford our fees, as far as we are able within our resources. The school awards scholarships and bursaries to enable pupils who would not otherwise be able to be educated at the school.

Scholarships are offered at 7+ 11+, 13+ and 16+ for gifted and talented pupils who show potential. The school also offers means-tested bursaries.

The school educates around 300 pupils, relieving pressure on local schools, and providing a Catholic “allthrough” education not otherwise available in the Borough of Bromley.

In addition, the local community benefits through such facilities as the school can offer such as entirely free accommodation for both the extremely active local scouts and another charity’s local office (CAFOD).

We respond to the changing demands of young people in the wider community in ways that would not otherwise be available locally. We provide lettings to a number of after school clubs e.g. Chess, Irish dancing, fencing.

We work hard to maintain the historic listed buildings which the school is fortunate to occupy. The Trustees have paid due regard to guidance issued by the Charity Commission and the school’s constitution in deciding what activities Bishop Challoner School should undertake.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

PUBLIC BENEFIT

Key examples of how the charity provides public benefit through its values and aims:

  1. Bishop Challoner has worked closely with a local Catholic State Primary Academy and offered opportunities for the Year 5 children to participate in science activities using the school facilities. The school minibus service has operated for pupils attending. One of the groups enjoyed our school lunches and were provided with refreshments.

  2. A local nursery school have used our Forest School and the school minibus has operated to allow for the children to attend. Easter activities were also offered to the children.

  3. We allow a local Scout group to use our facilities on site on a regular basis.

  4. Bishop Challoner allows CAFOD to use a room in the grounds to enable them to carry out their voluntary work.

  5. The Sixth Form support local residential homes at Christmas and invited them into the school for a Christmas party.

  6. The school provides its Chapel for the Catholic community who wish to attend some of the Liturgical events. Families have the opportunity to attend First Holy Communion which is offered in June.

  7. The Collective Worship is offered to the Public at certain times during the Liturgical year. The beautiful heritage campus is enjoyed by the local and wider community.

  8. The school has strong relationships with the local community including a visit from the Shortlands residents to have a tour of Bishop Challoner followed by refreshments.

  9. Members of Bishop Challoner play an active role in their local communities by taking part in events at local Catholic Churches, participating in the Duke of Edinburgh's Award scheme and numerous charities.

  10. The school community was actively involved in many fundraising events both at local and international level and contributes annually to a school in Pong Tek, Cambodia.

The school has made significant bursaries available. These help pupils whose parents would otherwise be unable to afford a Bishop Challoner education. Places are therefore made available, within the limits of what is possible, to children whose parents need financial assistance in order to meet the costs. Increasingly, families with children already at the school find that a sudden downturn in family finances or an upheaval of some form, means the school needs to offer fee relief on a temporary and non-refundable basis.

Achievements and performance

Bishop Challoner prides itself upon sustaining a nurturing and caring environment for its pupils and ensuring that they are given the opportunity to participate in a wide range of co-curricular activities.

During the accounting period, the school completed a superb Diocesan inspection in February 2020, with the inspectors referencing ‘pupils feel safe, secure and happy in a family environment where each person is welcomed, valued, respected and cared for’. We commit to working together to ensure that this continues, regardless of cultural, social and economic backgrounds.

In November 2019, we had our Independent Schools Inspectorate compliance inspection. The school sailed through this due to the robust measures, hours of hard work and rigour that we placed on school policies and procedures, ensuring that we were fully up to date with key changes and developments.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Junior department worked well together to put on ‘Lights, Camel, Action’ and the Year 3 to Sixth Form production of Grease was well received. Donations from the Christmas carol Service went to the School Crises Fund and our Christmas Jumper Day raised money for The Passage which is an organisation that runs London’s largest voluntary sector resource center for homeless and vulnerable people. Our Nursery Forest School Leader arranged for children from a local day nursery to enjoy Forest School sessions at Bishop Challoner.

LAMDA Speech and Drama continues to be popular and has been offered to our Junior children from Year 3 to Year 9, with fantastic results being achieved.

This has been an incredible extraordinary year like no other. The Secretary of State for Education announced on the 18 th March 2020 that schools would close on the 20 th March. It is difficult to quantify the impact that this extraordinary period has had on the Bishop Challoner community. Bishop Challoner closed its doors to all pupils except for key worker children and vulnerable children. GCSE and A level examinations were cancelled.

Bishop Challoner celebrated 95 per cent of students achieving grade 9-4 in five or more subjects, with 92.3 percent gaining at least five GCSEs including mathematics and English Language.

100 per cent 9-4 grades were achieved in art, biology, chemistry, computing, design technology, drama French, Latin, music, physical education, physics and Spanish. In addition, at least half of all grades in biology, chemistry, computing, Latin and music were grades 9 – 7.

Top performers achieved 10 GCSEs with seven grade 9s, two grade 8s and one grade 7. One pupil achieved 10 GCSEs with six grade 9s, two grade 8s and two grade 7s.

Many more of our students gained some excellent results with a good number of grade 7 to 9 amongst their other pleasing results.

At A level Bishop Challoner achieved 100 percent pass rate, A- C grades with 45.5 percent of grades being A-A and 81.8 percent A*-B grades with many heading to Russell group universities.

Half of all grades achieved were higher than their baseline ALIS predictions demonstrating commitment to their studies and passion for learning with the support of outstanding teachers.

We also had to familiarize ourselves with remote provision and launch into a period dominated by the development of online teaching and learning using MS Teams and Purple Mash as well as other technologies. We installed cameras into each of the classrooms in the senior department to cater for any member of staff or pupil who may not have been able to attend school.

We have had mental health and well-being at the heart of all that we have done and introduced a Challoner Channel, simply aimed at the pupils to support their mental health and emotions. This was a medium to stay connected with the pupils and to share stories and provide opportunity for them to be involved in a range of activities, projects, challenges and competitions.

In lockdown, some pupils wrote to their elderly pen pals at Bromley Park Care Centre. One pupil made 3D printed medical visors to help protect the NHS staff and he donated some of these to staff at St Christopher’s Hospice through his scout group. From VE Day celebrations to arts and crafts, pupils took the opportunity to discover new talents and extend their skills in various baking challenges including national cupcake day in support of the Alzheimer’s society. Two junior children learnt sign language.

The staff and pupils have risen to the challenges and not only has there been high quality teaching and learning but online assemblies, music and LAMDA lessons, house competitions, pastoral support and care and some clubs. Many pupils took part in the PE running challenge, ensuring that they exercised and looked after both their physical and mental health. The PE department had a great response with pupils completing over 2000 kilometres. Our virtual Christmas carol service and junior production were well executed.

During the course of the year we have focussed on one of our Catholic Christian values, diversity and social justice. Bishop Challoner has always been proud of its diverse community and this has not changed, however, we have reviewed our procedures and ensure that we continue to listen to and have a responsibility to tackle any issues of prejudice that may arise and we take this seriously.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Financial review

The School recorded a decrease in funds of £185,389 for the year ending 31 August 2020, as compared to the previous year’s surplus of £43,249. The accounting period included the outbreak of the coronavirus global pandemic. The school incurred significant expenditure to assist both with remote learning and in making the premises Covid secure, including external sinks, hand sanitizer units and increased cleaning regimes, in preparation for the wider return to school. The site remained open throughout for the children of keyworkers. Income was also restricted, with no price increase applied during the accounting year, and small rebates given to all year groups for the summer term 2020, part funded through accessing the government furlough scheme for non-essential support staff.

The school continues to attract academically able pupil admissions with the strong reserves providing support for greater discounts to be applied both through means tested bursaries and targeted scholarships. This allows the school to continue to offer opportunities to the most able candidates regardless of financial background, whilst complying with the school’s constitutional arrangements.

The school remains determined to nurture pupils and continues to ensure that the quality of teaching and learning is excellent, whether face-to-face teaching or remote learning. The school recognizes its attractiveness in its provision of “all-through” Catholic education. Pupil retention of those already on school roll remains good, although slightly impacted by the economic downturn; pupil recruitment has proven difficult due to the inability to hold in-person marketing events such as Open Mornings.

Costs are continuously controlled and monitored against budget. The historic nature of the premises means that significant investment in the upkeep of the site will always be required. However, substantial remedial expenditure in recent years has enabled the school to deliver more focused projects, allowing finances to be concentrated on essential health and safety works such as tree surveys, fire risk assessment remedials and the aforementioned Covid measures. The school aspires to further expand and develop its site in a prudent manner, continuing to consider new development opportunities always with the focus of improving the provision of a varied, high quality education.

Reserves

The Balance Sheet of the School shows the net worth (‘Total assets less current liabilities’) of the company at a healthy £1.8m. Furthermore, whilst many schools’ assets are tied up in the fabric of their building, Bishop Challoner School is in the strong position that net current assets make up £1.2m. The freehold of the site is owned by the Archdiocese of Southwark and is therefore not included in the School’s fixed assets.

The Trustees will continue to support the drive for improving academic standards and supporting the pastoral needs of our pupils, and recognize the need to maintain and develop the site to enhance the education experience and attractiveness of the environment. The Trustees have considered the pricing structure of the school with the goal of the school funding its day-to-day operations from operating cash flows to facilitate the ringfencing of reserves for future projects. This strategic investment will be planned long term and balanced against a prudent approach to ensure the continued financial health of the school and its ability to provide an outstanding educational experience for its pupils into the future.

Going Concern

As at 31 August 2020 the charity has net current assets of £1,175,631 (2019: £1,303,025) and a deficit of £185,389 (2019: net income of £43,249). The financial statements have been prepared on a going concern basis as the trustees believe that adequate cash resources will be available to cover the charitable company’s requirements for working capital and capital expenditure for at least the next twelve months.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The charity is proposing to exit the current teachers’ pension plan and provide an alternative pension scheme to teachers. As a result of the change, a full consultation was conducted with the teachers about the proposed changes and, during the period of consultation, following consultation with their unions, members of one teaching union implemented three periods of 2 days of strike action during the second half of the summer term. The Senior Leadership Team and trustees implemented various measures to keep any disturbance to the operations of the school to a minimum and prevent disruption to learning during this time. There remains, however, uncertainty as to whether those members of teaching staff will take further action at the start of the next academic year such that the situation represents a material uncertainty, but the trustees are endeavouring to ensure a satisfactory solution to conclude the dispute. However, the trustees consider this to be a key risk to the School’s operation and will continue to monitor and assess and consider an appropriate course of action required to resolve the matter.

COVID-19 outbreak has continued to have a significant impact with further government lockdowns implemented in the UK. Due to the outbreak, economic uncertainties have arisen, which could have some form of negative impact on the charity, however any impact at present is difficult to evaluate. The trustees have reviewed the charity’s objective, risks and management polices resulting from coronavirus outbreak. The trustees continue to review and assess the current forecast and projections for the school and utilise the UK government support made available where appropriate.

Plans for the future

The Trustees are satisfied that the new constitution gives them an effective framework to build on the school’s many successes in the years ahead. They continue to review average use and any issues which may have adverse effects on the effectiveness of the school. Broadly the Trustees have the following aims for Bishop Challoner School:

Structure, governance and management

The School is a charitable company (Co. No: 8652238) limited by guarantee and was incorporated on 15 August 2013.

The School is constituted under a Memorandum and Articles of Association dated 22 July 2013 (as per the Companies Act 2006 for a Company Not Having a Share Capital).

The School is a registered charity (Registered Charity No: 1153948) with a date of registration of 25 September 2013 .

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

were:
Patricia Mary Colling (Chair of Trustees)
Philip Walter Huggett (Resigned 31 August 2020)
Maria Noone (Resigned 27 April 2020)
Susannah Mary Watchorn (Resigned 31 December 2019)
Tracey Ann Cassidy (Appointed 8 June 2020)
Dean Lee Lake
Sebastian John Francis O’Connell (Appointed 8 June 2020)
Rev Fr Stephen Wymer

Margaret Brocklehurst, a former Trustee and Director, holds the honorary position of Trustee Emeritus.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The School occupies its premises at 228 Bromley Road, Shortlands, Kent, BR2 0BS, under a 99 year lease dated 4 June 2014 with the start of occupancy backdated to 6 December 2013, the date of the Deed of Transfer. The Landlord is the Southwark Roman Catholic Diocesan Corporation (Co. No: 393665) registered at 59 Westminster Bridge Road, London, SE1 7JE. The property incorporates everything within the curtilage of the site including St. Catherine’s Cottage (228 Bromley Road, BR2 0AB). The School sublets a room within the cottage on a rent free basis to the Catholic Agency for Overseas Development (CAFOD), a Charity registered in England and Wales with registered number 285776 whose registered office is at 55 Westminster Bridge Road, London, SE1 7JB.

Buildings and Contents Insurance are held in joint names between Bishop Challoner School and the Diocese through the Catholic Church Insurance Association. All other insurances in respect of Bishop Challoner School are held solely by the School (including Public Liability Insurance, Employer’s Liability Insurance and Governors’ Liability Insurance).

In setting our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit and, in particular, to its supplementary public benefit guidance on the advancement of religion, advancing education and on fee-charging.

Governance and Management

The School was governed during the year by a voluntary Board of Governors, chaired by Patricia Colling.

There were three departures from the Board during the year, namely Susannah Watchorn, Maria Noone and Philip Huggett.

The school would like to put on record its sincere thanks to the departing Trustees for their service to the school.

Appointment of Trustees and Trustee Induction and Training

Two Governors were appointed as Trustees of the Charity/Directors of the Company, namely Sebastian O’Connell and Tracey Cassidy. Mr. O’Connell is a Resource Manager at a secondary school and Ms. Cassidy a solicitor.

A further three Governors joined the Board of Governors during the year, namely Anthony Chrumka, Olive Essien and Samy-Joseph Etienne. The new appointees bring a breadth of experience to the Board. Mr. Chrumka is an IT consultant, Mrs. Essien is a lawyer, and Mr. Etienne is a secondary school teacher.

Governors are invited to join the Board based on the skills and experience each individual can bring to the Board of Governors. Following an introduction to the other members of the Board, new Governors complete an induction, including background to the school, the operations and the role of the Board of Governors and the interaction with the Senior Leadership Team. After an initial year serving on the Board of Governors, a Governor may then be invited to be a Trustee of the school.

The Board of Governors, via the Clerk to the Governors, are provided with updates from AGBIS, together with opportunities to attend webinars and training courses/seminars run by AGBIS in order to seek to ensure the Board operates in line with best practice.

Governance and Management structure

The school was originally formed by the parishes of Beckenham and Bromley –The Archbishop of the Catholic Diocese of Southwark has the power reserved in the constitution to appoint two trustees. One post is filled by Fr Stephen Wymer and the other by Sebastian O’Connell. The Governors come from a variety of backgrounds including religious, education, legal and financial. The Board is attended by Trustees who are parents.

The Trustees of the registered charity are also the Directors of the charitable company limited by guarantee. The Board of Governors meets at least once a term. The Board delegates decision making powers to various sub-committees of Trustees/Governors to drive the school forward through their area of responsibility. The current subcommittees are Finance, Premises and Health & Safety; Strategy and Development; Personnel; Education and Governance and Nominations. The various sub-committees report back to the Full Board Meeting, which is the final meeting of each term, and ratify any decisions.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The day to day decision making and implementation of Trustees’ decisions rests with the Senior Leadership Team, currently comprising the Head teacher, the Bursar, a Deputy Head and Head of Junior School.

The Trustees invite relevant staff representation to the sub-committee meetings held each term. The Head teacher attends all sub-committee meetings, the Bursar provides termly reports to the Finance, Premises and Health & safety sub-committee, and the Deputy Head and the Head of Key Stage 1 and 2 attend the education sub-committee.

The Trustees have arranged for the school to maintain a live risk matrix for the purposes of managing risk.

Risk Management

The Governors are responsible for the overseeing of the risks faced by the School. Detailed considerations of risk are delegated to the Senior Management of the School. Risks are identified, assessed and controls established throughout the year. A formal review of the charity’s risk management processes is undertaken on an annual basis. Risk is managed under the headings of legal, health and safety, financial, external, reputational and people.

The main risks that the Governors have identified and the plans to manage those risks are:

Reputation. The School’s success is built on its reputation for the education and well-being of our pupils. We manage this risk through safeguarding policies, staff recruitment policies, pastoral support for both pupils and staff and active identification and resolution of health and safety related issues.

Funding. Our ability to continue to operate is reliant on pupil fees and the ability to pay bills as they fall due. This risk is managed by marketing activity, having a reputation for academic excellence and active cash-flow management.

Curriculum. Academic excellence requires the most able teachers with state of the art facilities delivering the curriculum to able students. We manage this risk by combining attractive salaries with additional allowances, on-going investment in our estate and an approach to enrolment that works with supportive parents whose children have an appetite for learning and a scholarship scheme that recognises pupil achievement and aptitude.

Through the risk management processes established for the School, the Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Auditor

A resolution proposing that Ledger Sparks Audit LLP be reappointed as auditors of the company will be put to the members .

Disclosure of information to auditor

So far as each of the Trustees is aware at the time the report is approved:

The Trustees r eport was approved by the Board of Trustees.

Dean Lee Lake

Trustee Dated: 30 July 2021

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BISHOP CHALLONER SCHOOL

Opinion

We have audited the financial statements of Bishop Challoner School (the ‘Bishop Challoner School’) for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Bishop Challoner School 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF BISHOP CHALLONER SCHOOL

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report .

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

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees r esponsibilities, the Trustees, who are also the directors of the Bishop Challoner School for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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 Bishop Challoner School’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 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: http s ://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Bobby Gurdep Bhogal FCCA (Senior Statutory Auditor) for and on behalf of Ledger Sparks Audit LLP 12 August 2021

Statutory Auditor

Airport House Suite 43-45 Purley Way Croydon Surrey CR0 0XZ

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
funds
Notes
£
Income and endowments from:
Incoming resources from charitable activities
Incoming resources from charitable activities
3
3,158,646
Investment income
4
19,862
Other income
5
125,373
Total income and endowments
3,303,881
Expenditure on:
Charitable activities
Support Costs
6
848,027
Direct Charitable Expenditure
6
2,641,243
Total charitable expenditure
3,489,270
Total resources expended
3,489,270
Net (expenditure)/income for the year/
Net movement in funds
(185,389)
Fund balances at 1 September 2019
2,002,847
Fund balances at 31 August 2020
1,817,458		 Total
2019
£
3,527,191
17,809
9,243
3,554,243
945,591
2,565,403
3,510,994
3,510,994
43,249
1,959,598
2,002,847

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities .

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes on pages 13 to 22 form part of the accounts

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 AUGUST 2020

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2020
2019
£
£
£
£
641,827
699,822
158,525
161,839
1,748,361
2,206,499
1,906,886
2,368,338
(731,255)
(1,065,313)
1,175,631
1,303,025
1,817,458
2,002,847
1,817,458
2,002,847
1,817,458
2,002,847

The Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved by the Trustees on 30 July 2021

Dean Lee Lake

Trustee

Company Registration No. 08652238

The notes on pages 13 to 22 form part of the accounts

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
15
Investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
£
(418,862)
(59,138)
19,862
(39,276)
-
(458,138)
2,206,499
1,748,361		 2019
£
£
116,034
(102,301)
17,809
(84,492)
-
31,542
2,174,957
2,206,499

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

Company information

Bishop Challoner School is a private company limited by guarantee incorporated in England and Wales. The registered office is 228 Bromley Road, Shortlands, Kent, BR2 0BS.

1.1 Accounting convention

These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The Bishop Challoner School is a Public Benefit Entity as defined by FRS 102.

The financial statements 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling , which is the functional currency of the Bishop Challoner School. Monetary a mounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the historical cost convention, modified to include the revaluation certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Bishop Challoner School has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

At 31 August 2020, the charity had net current assets of £1,175,631 (2019: £1,303,025) and net expenditure of £185,389 (2019: net income of £43,249), however the financial statements have been prepared on a going concern basis.

The World Health Organisation declared the outbreak of a coronavirus (COVID-19) as a pandemic. The continued presence of COVID-19 outbreak in the United Kingdom has resulted in further lockdowns and caused interruption and reduction of the School’s operations which have been government mandated. The school continued to remain open to the children of keyworkers throughout the crisis and also provides home schooling. The charity’s continual review and reassessment of its cash flow forecasts and budgets, show that the charity would have sufficient resources for at least a year from the date these Financial Statements are approved. This is based on the assumptions that the budgeted forecasts are achievable. Given the above, the trustees consider it appropriate to adopt a going concern basis in preparing the financial statements.

The Trustees of Bishop Challoner School are proposing to exit the current teachers’ pension plan and provide an alternative pension scheme to teachers. As a result of the change, a full consultation was conducted with the teachers about the proposed changes and, during the period of consultation, following consultation with their unions, members of one teaching union implemented three periods of 2 days of strike action during the second half of the summer term. The Senior Leadership Team and trustees implemented various measures to keep any disturbance to the operations of the school to a minimum and prevent disruption to learning during this time. The trustees consider this to be a key risk to the School ’ s operation and will continue to monitor and assess and consider an appropriate course of action required to resolve the matter.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

1.4 Incoming resources

Income is recognised when the Bishop Challoner School is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. E xpenditure is accounted for on an accruals basis and ha s been included under expense categories that aggregate all costs for allocation to activities . Expenditure is mainly classified under the following activity headings:

● Expenditure on charitable activities includes the costs of educational activities undertaken to further the purposes of the charity and their associated support costs.

● Support costs are those costs incurred directly in support of expenditure on the objects of the school

● Governance costs are those costs incurred in connection with administration of the school and compliance with constitutional and statutory requirements .

Irrecoverable VAT is charged as a cost against the activity for which the e xpenditure was incurred.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Long Leasehold Improvements 5% Straight Line Plant and machinery 33.3% Straight Line Fixtures, fittings & equipment 20% Straight Line Motor vehicles 25% Reducing Balance

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with a short maturity.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Bishop Challoner School transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Bishop Challoner School’s contractual obligations expire or are discharged or cancelled.

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when Bishop Challoner School is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.11 Legal status of the School

The School is a company limited by guarantee and has no share capital. The members of the company are the Trustees named on page 1. In the event of the school being wound up, the liability in respect of the guarantee is limited to £1 per member of the school.

1.12 Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the School and which have not been designated for any other purposes. Investment income, gains and losses are also allocated to unrestricted funds.

2 Critical accounting estimates and judgements

In the application of the Bishop Challoner School’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

3 Incoming resources from charitable activities

2020 2019
£ £
Gross Tuition Fees 3,581,866 3,909,017
Breakfast Club 3,136 10,312
Scholarship Awarded (206,261) (194,784)
Bursaries Awarded (232,472) (212,792)
Other Educational Income 12,376 15,438
__ __
3,158,646 3,527,191
4 Investment income
Total Total
2020 2019
£ £
Interest receivable 19,862 17,809
5 Other income
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Other income 125,373 9,243

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

6 Charitable activities

Expenditure on charitable activities
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
For the year ended 31 August 2019
Unrestricted funds		 Support
Costs
Direct
Charitable
Expenditure
£
£
-
2,641,243
814,725
-
33,302
-
848,027
2,641,243
848,027
2,641,243
848,027
2,641,243
945,591
2,565,403
945,591
2,565,403		 Total
2020
£
2,641,243
814,725
33,302
3,489,270
3,489,270
3,489,270		 Total
2019
£
2,565,403
920,501
25,090
3,510,994
3,510,994
3,510,994

Payments to the auditors of £13,800 (2019 - £13,800) in relation to audit fees and Nil (2019 - Nil) in relation to non-audit services. Legal and Professional Fees amounting to £19,502 (2018 - £11,290).

7 Direct charitable expenditure

Teaching costs
Gross Wages
National Insurance
Pension Contributions
Recruitment Costs
Computer Expenses
Subscriptions
Playing Fields
Staff Training
Prize Giving
Refreshments for Children
Books and Teaching Aids
Depreciation Expense
Total		 2020
£
1,782,506
174,810
338,492
23,374
88,261
10,631
12,335
16,859
5,397
8,982
62,462
117,134
2,641,243		 2019
£
1,735,288
164,635
237,634
35,457
81,699
8,670
23,052
26,515
5,875
37,455
100,749
108,374
2,565,403

The pension charge for the year amounts to £338,492 (2019 : £237,634) as above which was payable to the TPS.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

8 Analysis of Support costs (including Governance costs)

Support
costs
Governance costs
£
£
Gross Wages
354,393
-
National Insurance
34,610
-
Pension Contributions
24,286
-
Rates
7,720
-
Insurance
19,538
-
Light & heat
46,468
-
Repairs and Maintenance
91,513
-
Postage and Stationery
32,484
-
Telephone and Fax
6,371
-
Motor Expenses
2,767
-
Cleaning
63,395
-
Staff Welfare
6,126
-
Bank Charges
6,082
-
Advertising
54,670
-
Donations
32,785
-
Other costs
31,518
-
Audit fees
-
13,800
Legal and professional
-
19,502
814,725
33,302		 2020
£
354,393
34,610
24,286
7,720
19,538
46,468
91,513
32,484
6,371
2,767
63,395
6,126
6,082
54,670
32,785
31,518
13,800
19,502
848,027		 2019
£
355,566
34,481
23,556
42,421
20,152
46,766
141,525
35,716
8,219
4,332
64,295
7,430
6,560
63,209
32,301
33,972
13,800
11,290
945,591

Support costs for the period total £814,725 (2019: £920,501). If allocated on the basis of staff numbers, the support cost allocation would be £675,058 (2019: £771,231) to teaching staff and £139,667 (2019: £149,270) allocated to administration, premises and office staff. The pension charge for non teaching staff total £24,286 (2019: £23,556) for the period, as shown above.

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from Bishop Challoner School during the year. None of the trustee received payment for professional or other services supplied to Bishop Challoner School.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

10 Employees

Teaching staff
Teaching Support Staff
Office & Premises Staff
Wages and salaries
Social security costs
Pension costs		 2020
Number
41
17
12
70
2020
£
2,136,899
209,420
362,778
2,709,097		 2019
Number
42
20
12
74
2019
£
2,090,853
199,116
261,190
2,551,159

The number of employees who had emoluments and benefits in excess of £60,000 in the year was 2 (2019: 2). Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.

11 Tangible fixed assets

Long
Leasehold
Improvements
£
Cost
At 1 September 2019
630,626
Additions
13,183
At 31 August 2020
643,809
Depreciation and impairment
At 1 September 2019
104,468
Depreciation charged in the year
31,770
At 31 August 2020
136,238
Carrying amount
At 31 August 2020
507,571
At 31 August 2019
526,159		 Plant and
machinery
£
194,377
22,883
217,260
129,278
41,906
171,184
46,076
65,098		 Fixtures,
fittings &
equipment
Motor vehicles
£
£
200,906
57,867
23,072
-
223,978
57,867
100,348
49,861
41,455
2,001
141,803
51,862
82,175
6,005
100,559
8,006		 Total
£
1,083,776
59,138
1,142,914
383,955
117,132
501,087
641,827
699,822

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

12
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
13
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments
14
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals
15
Cash generated from operations
(Deficit)/surpus for the year
Adjustments for:
Investment income recognised in profit or loss
Depreciation of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Cash (absorbed by)/generated from operations		 2020
£
108,351
682,346
2020
£
64,329
44,022
50,174
158,525
2020
£
48,909
36,485
595,192
50,669
731,255
2020
£
(185,389)
(19,862)
117,134
3,313
(334,058)
(418,862)		 2019
£
105,867
1,014,386
2019
£
44,261
61,606
55,972
161,839
2019
£
50,927
172,823
770,764
70,799
1,065,313
2019
£
43,249
(17,809)
108,374
(51,680)
33,900
116,034

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16 Operating lease commitments

At 31 August 2020 the company had annual commitments under non-cancellable operating leases as follows:

2020 2019
Expiry date £ £
Within one year 9,156 10,987
Between two and five years - 8,240
9,156 19,227

The financial commitments are in relation to photocopiers.

17 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

18 Capital commitments

As at the balance sheet date , Bishop Challoner School had c apital c ommitments of £39,720 (2019: Nil) in relation to capital improvements.

19 Controlling Party

During the accounting periods the school, having no share capital, is under the control of the Board of Governors including the Trustees who are also directors of the school.

BISHOP CHALLONER SCHOOL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

20 Events Since The Reporting Period

Since the year end, the COVID-19 outbreak has continued to have a significant impact with further government lockdowns implemented in the UK.

Following lockdown, the school provided immediate assistance to parents by extending instalment plans to 2 September, effectively halving their monthly payment during the summer 2020 term. The school also provided a commitment to refunding all school trip costs, regardless of any contractual disputes with trip providers.

The school has remained open to the children of keyworkers throughout the crisis. It has put in place a comprehensive return to work risk assessment based on government guidance, the key features of which being staying in class cohorts/not mixing with other groups, staggered arrivals, breaks and departures, and good hygiene including additional cleaning programs and hand washing. The school will be led by Government advice as to which year groups are to return and when.

The financial impact on the current business at present is difficult to evaluate. The trustees are continuing to monitor, assess and act to the changing environment to position the charity to ensure its future success.

Additionally, since the year end, the school has conducted a consultation regarding a proposal to exit the current teachers’ pension plan and provide an alternative pension scheme to teachers. As a result of the change, a full consultation was conducted with the teachers about the proposed changes and, during the period of consultation, following consultation with their unions, members of one teaching union implemented three periods of 2 days of strike action during the second half of the summer term. The Senior Leadership Team and trustees implemented various measures to keep any disturbance to the operations of the school to a minimum and prevent disruption to learning during this time. The trustees are closely monitoring the risk of the situation in order to consider an appropriate course of action required to resolve the matter.