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2021-03-31-accounts

ST. EDWARD'S SCHOOL STATEMENT OF ACCOUNTS YEAR ENDED 31 MARCH 2021

Registered Charity No: 1159721

CONTENTS

Page

  1. Statutory Information

      1. Report of the Governors 6. - 8. Report of the Auditors 9 Statement of Financial Activities

  3. Balance Sheet 11. Cash Flow Statement

      1. Notes to the Accounts

FLETCHER & PARTNERS

CHARTERED ACCOUNTANTS

SALISBURY

Page 1

ST. EDWARD'S SCHOOL GOVERNORS' REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Property Trustee: Clifton Diocese Governors: M H Tennant Esq. LLB (Hons.), BA(Hons.), Dip.Mus.(Open) (Chairman) R D Bruce-Gardner Esq. BA (Hons.) ACIB (resigned 13 April 2021) Mrs B G H Cherry BSc MRICS J Livingstone Esq. Mrs S Murphy Mrs S M Peach OBE JP Rev C Pettet L Taylor Esq. Officers Headmaster: G Maher Esq. MA Senior Manager: A Hillon Esq BA PGCE Finance Manager: Mrs K Donlon FMAAT Address: Melchet Court Sherfield English Romsey Hants SO51 6ZR Advisers Auditors: Fletcher & Partners, Crown Chambers, Bridge Street, Salisbury SP1 2LZ Bankers: Royal Bank of Scotland, 14 Minster Street, Salisbury SP1 1TP CCLA, 80 Cheapside, London EC2V 6DZ Solicitors: Paris Smith LLP, Number 1 London Road Southampton, SO15 2AE Stockbrokers: Brewin Dolphin Securities Ltd., 9 Colmore Row, Birmingham B3 2BJ Registered Number Charity No: 1159721

Page 2

ST. EDWARD'S SCHOOL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2021

The Governing Body present their annual report and the audited accounts of St. Edward's School for the year ended 31 March 2021. These have been prepared to comply with the Charities Act 2011, the charity's constitution and the Statement of Recommended Practice "Accounting and Reporting by Charities (FRS102)".

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The School was originally constituted under the control of the Diocese of Clifton (DoC) by a Trust Deed dated 24 October 1962. This was modified by a Supplemental Trust Deed 1 June 1978, in accordance with Statutory Instrument 1978 No. 629.

The School developed independently, largely free from the control of the DoC, notwithstanding the continued importance of the close relationship with it. The purpose of the Trust Deeds has not been applicable for some time, although the School and the DoC have operated in accordance with the terms of them, and with DoC protocols, as far as possible.

The School is now constituted as a Charitable Incorporated Organisation (CIO) which was registered on 23 December 2014 and to which the School’s activities were transferred on 1 September 2015. Within the CIO, the Governors are trustees. The School and DoC have agreed to reconstitute the legal framework of the School by a new trust deed. Pursuant to this, Clifton Diocese (a company limited by guarantee) registered in England and Wales under number 10462076 Registered Charity No. 1170168 as the freeholder of Melchet Court, will grant to the CIO, presently a licensee, and subject to the approval of the Secretary of State, a lease of 125 years at a peppercorn rent and on other terms to be negotiated.

Appointment and induction of Governors

The school is managed by a very active Board of Governors, whose experience spans many professional disciplines. Governors are appointed at a Meeting of the Board on the basis of nominations generated by existing Governors having regard to eligibility, personal competence, specialist skills and local availability. New Governors are provided with an induction programme relating to the charity and their responsibilities.

Organisational structure

Overall responsibility for the management of the Charity rests with the Governors, who meet monthly. The Governors have established subcommittees for finance and property, whose function is to examine issues in detail and make recommendations to the main Board. An ad hoc committee may be constituted to deal with applications for readmission following exclusion. Day to day management and administration is delegated to the Headmaster.

Key management

The Governors consider that the Headmaster, Deputy Head, the Head of Care, Head of Education and the Director of Development comprise the key management personnel of the School in charge of directing and controlling, running and operating the School on a day to day basis. The remuneration of the key management is set by reference to comparative posts in the maintained and independent school sectors and is reviewed annually.

Related parties

Transactions with the Diocese are shown in Note 16 to the accounts.

Public Benefit

The Governors confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

OBJECTIVES AND ACTIVITIES

St Edward's is an independent school for boys who experience social, emotional and mental health difficulties (SEMH).

The school provides day and weekly boarding facilities over thirty-eight weeks of the year. The geographical spread of user local authorities stretches across southern England, London and the eastern Home Counties. In 2020-21 an average of 47 pupils were placed in the school by local authorities. Pupils' placements are subject to the National Contract (or equivalent). Local authorities draw on Ofsted and other reports of the school's performance and are at liberty to conduct additional monitoring visits to confirm the efficient allocation of public resources.

Operating within the Roman Catholic Diocese of Clifton, its purpose is to meet the special educational and care needs of boys aged between 9 and 18 years who, because of the challenges they face, have been unable to cope in mainstream schools and other special educational establishments. The school strives to educate pupils to the maximum of their potential, and to address pupils' difficulties in the terms in which these are described in pupils' Educational, Health and Care Plans.

Page 3

ST. EDWARD'S SCHOOL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

Pupils who attend St Edward's have been assessed by their Local Authority as needing the type of provision which the school provides. The fees charged by the school are therefore borne by the Local Authority and, as a consequence, pupils attend the school irrespective of their, or their families', financial means.

It is the Governors' belief that, by helping its pupils to realise their potential, the school benefits not only its pupils and their families but the whole of society.

Aims and objectives for the year

Strategies

The school maintains a set of common principles and practices in the planning, delivery and evaluation of the National Curriculum; strong emphasis is placed upon the provision of useful and relevant learning experiences within a structured environment. The school's planning for the curriculum is linked to a detailed financial plan. Priorities for funding the school's initiatives are evidenced in the School's Self Evaluation Form. There is consultation at all levels - staff team, management and the Board of Governors - in determining priorities for improvement.

The National Curriculum is offered to the end of Key Stage 3. GCSE, Functional Skills, ELCs, AQA units and BTEC courses are offered in Key Stage 4. An impressive range of vocational and recreational pursuits is offered to pupils. The aim is to encourage and instruct pupils experiencing SEMH difficulties in the productive use of work, leisure and recreational time. Post-16 students can pursue courses in school and/or at local colleges, with a bespoke programme at school including work experience, independent living skills, social skills and further therapeutic support.

The school maintains strong links with professional associations, external organisations and charities. It makes its facilities available for use by local sporting, cultural and recreational clubs and local historical and other groups.

The school continues to maintain extensive communication with parents, carers and local authorities, producing regular informative news publications. The school's website is under construction www.melchetcourt.com

ACHIEVEMENTS AND PERFORMANCE

Charitable activities during the year

The School continued to provide education to pupils aged 9 years to 16 from a wide range of social backgrounds from Hampshire and surrounding counties. The achievements listed below, coupled with a host of other successes in the year, are testimony to the Charity's ongoing commitment to nurture the spiritual, artistic, intellectual and sporting life of pupils with Social, Emotional and Mental Health (SEMH) needs.

Page 4

ST. EDWARD'S SCHOOL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Charitable activities during the year (continued)

Investments

The Governors' investment policy is to invest in a mixed portfolio of fixed interest and equity investments, subject to a medium degree of risk, with the objective of generating income and capital growth that will maintain real value to finance the charity's expenditure on its charitable objectives. The investments are in keeping with, and have regard for, the views of the Catholic Church and its teachings. During the year the portfolio achieved an overall rate of return (from income and capital) of 21.4%. This compares with a return of 19.68% on the WMA Private Investors Income Index (Total Return), which the school uses as its benchmark.

FINANCIAL REVIEW

Review of financial transactions

Pupils' fees in 2020/21 amounted to £4,056,534, compared with £3,471,541 in the previous year. Investment and other income was £320,292 resulting in total General Fund income of £4,376,826. General Fund expenditure was £3,711,987 resulting in surplus of £664,839 before investment gains and transfers from the General Fund. The school also spent £155,100 from its designated funds resulting in net income before investment gains amounting of £509,739.

Review of financial position

After adjusting for the realised and unrealised gains and losses on the school's investments, the net assets at the end of the year were £7,850,538 (2020: £6,324,613) and the Governors expect that with the income from pupils' fees these will be sufficient to fund the school's activities for the foreseeable future.

Principal risks and uncertainties

Through the risk management processes established for the School, the Governors are satisfied that the major risks to which the School is exposed have been reviewed and systems or procedures have been established to mitigate those risks. It is recognised that systems can provide reasonable but not absolute assurance major risks have been eliminated.

The most significant risks identified by the Governors are: cutbacks in local authority funding for SEND pupil placements; a serious and unforeseen safeguarding issue; and failure of key IT systems. These risks are managed by detailed strategies including (1) ensuring that the quality of the setting is of the highest level while keeping fees to the minimum; (2) having comprehensive and robust safeguarding policies and procedures and (3) ensuring that there is an effective IT disaster recovery plan.

Reserves policy

The Governors' reserves policy is to maintain the General Fund at a sufficient level to cover the School's working capital requirements, to provide a contingency against an unexpected drop in pupil numbers and to provide funds in the event of the School's needing to be wound up. These translate to a target of between £3m and £4m.

Page 5

ST. EDWARD'S SCHOOL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Reserves policy (continued)

The Major Building Repair Fund is maintained at a sufficient level to enable the School to undertake the anticipated major repair projects.

The West Wing Fund was established by the Governors in 2012 with the aim of creating a fund for the redevelopment of the school's West Wing.

The Staff Accommodation Fund was created to provide funds for the repair of staff accommodation.

The policy is reviewed annually to ensure that it is still appropriate.

PLANS FOR FUTURE PERIODS

The school's objectives for the future are:

To maintain preferred provider status within local authority strategic planning.

To return a costs met result with surplus sufficient to justify expansion programmes.

To maintain an efficient and effective staffing quota, subject to continuing efficiency reviews. and the challenges inherent in local authority spending restrictions.

To develop staff competencies so as best meet the needs and challenges presented by young people attending the school.

To further improve the quality of the School's provision.

To maintain and develop the school's ability to provide alternative curriculum opportunities for pupils who experience a greater degree of vulnerability.

To continue to generate sufficient funds for the proper maintenance and care of the school's wider premises and to facilitate improvement and development.

To render the school's educational building stock better fit for purpose through an improvement programme.

To consider new and alternative streams of income which support the mission of the school. To exercise diligence in succession management planning, so as to safeguard the future prosperity of St Edward's.

It is intended that these will be met by following the strategies set out above. The provision continues to be considered by the agencies we work with to be of very high quality.

ACCOUNTING AND REPORTING RESPONSIBILITIES

Charity law requires the Governors to prepare financial statements, for each financial year, in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP) which give a true and fair view of the financial activities of the charity during the year and of its financial position at the end of the year. In preparing those statements, the Governors are required to:

The Governors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the provisions of the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signed on behalf of the Governors: M H Tennant - Chairman of Governors

Approved by the Governors: 14 July 2021

Page 6

INDEPENDENT AUDITORS' REPORT TO THE GOVERNORS OF ST. EDWARD'S SCHOOL

Opinion

We have audited the financial statements of St Edward's School for the year ended 31 March 2021, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and related notes, including the summary of significant accounting policies, set out on pages 9 to 21. 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: -

ii) have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and iii) 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 Auditorʼs responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRCʼs Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Governors' use of the going concern basis of accounting in the prepartion of the accounts 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 School’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The Governors are responsible for the other information. The other information comprises the information included in the Governors' Annual Report, other than the financial statements and our auditorʼs 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors’ Annual Report.

Page 7

INDEPENDENT AUDITORS' REPORT TO THE GOVERNORS OF ST. EDWARD'S SCHOOL (CONTINUED)

We have nothing to report in respect of the following matter where the Charities Act 2011 requires us to report to you if, in our opinion:

ii) sufficient accounting records have not been kept; iii) the financial statements are not in agreement with the accounting records and returns; or iv) we have not received all the information and explanations we require for our audit.

Responsibilities of the Governors

As explained more fully in the Governors' Responsibilities Statement, set out on page 5, the Governors 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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

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

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

Page 8

INDEPENDENT AUDITORS' REPORT TO THE GOVERNORS OF ST. EDWARD'S SCHOOL (CONTINUED)

Auditors' responsibilities for the audit of the financial statements (continued)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance to enquiry of management and inspection of relevant correspondence. Furthermore, misstatements due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment and collusion.

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.

Use of our report

This report is made solely to the Governors, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations under section 154 of that Act. Our audit work has been undertaken so that we might state to the Governors 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 assume responsibility to anyone other than the charity's Governors as a body, for our audit work, for this report, or for the opinions we have formed.

Crown Chambers Bridge Street Salisbury SP1 2LZ 14 October 2021

FLETCHER & PARTNERS Chartered Accountants and Statutory Auditors.

Fletcher & Partners is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 9

ST. EDWARD'S SCHOOL STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Note
INCOME FROM:
Donations and legacies
Charitable activities
Pupils' fees
Other trading activities
Lettings and wayleaves
Investments
2
Other
Staff rents
Other income
Total
EXPENDITURE ON:
Costs of generating funds
Investment management charges
Charitable activities
Costs of operation of school
3
Total
Net income/(expenditure) before gains
and losses on investments
Net gains / (losses) on investments
Unrealised
Realised
Net income / (expenditure)
Transfers between funds
14
Other gains and losses
Actuarial gains
15
Net movement in funds
Total funds brought forward
Total funds carried forward		 General
Fund
-
4,056,534
6,655
209,613
83,614
20,410
4,376,826
28,690
3,683,297
3,711,987
664,839
913,552
102,634
1,681,025
(611,591)
-
1,069,434
3,818,560
£4,887,994		 Designated
Funds
-
-
-
-
-
-
-
-
155,100
155,100
(155,100)
-
-
(155,100)
611,591
-
456,491
2,506,053
£2,962,544		 Year to
31/03/2021
-
4,056,534
6,655
209,613
83,614
20,410
4,376,826
28,690
3,838,397
3,867,087
509,739
913,552
102,634
1,525,925
-
-
1,525,925
6,324,613
£7,850,538		 Year to
31/03/2020
500
3,471,541
6,004
239,042
78,507
10,552
3,806,146
29,614
3,421,240
3,450,854
355,292
(743,247)
32,065
(355,890)
-
582,714
226,824
6,097,789
£6,324,613

The notes on pages 12 to 21 form part of these accounts

Page 10

ST. EDWARD'S SCHOOL BALANCE SHEET AS AT 31 MARCH 2021

Note
2021
FIXED ASSETS
Tangible assets
6
122,744
Investments
8
6,715,593
6,838,337
CURRENT ASSETS
Debtors
9
239,438
Cash at bank and in hand
10
1,730,114
1,969,552
CREDITORS: Amounts falling due
within one year
11
249,969
NET CURRENT ASSETS
1,719,583
TOTAL ASSETS LESS CURRENT LIABILITIES
8,557,920
PROVISIONS FOR LIABILITIES
AND CHARGES
12
(707,382)
NET ASSETS
£7,850,538
FUNDS (UNRESTRICTED)
General Fund
4,887,994
Designated Funds
14
2,962,544
TOTAL FUNDS
£7,850,538
-
Signed on behalf of the Board of Governors
M H Tennant - Governor
Approved by the Governors:
14 July 2021		 2020 2020
139,192
1,286,899
1,426,091
218,343		 91,079
5,727,915
5,818,994
1,207,748
7,026,742
(702,129)
£6,324,613
3,818,560
2,506,053
£6,324,613

The notes on pages 12 to 21 form part of these accounts

Page 11

ST. EDWARD'S SCHOOL CASH FLOW STATEMENT AS AT 31 MARCH 2021

Note
2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by (used in)
operating activities
a
312,251
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends and interest from investments
209,613
Proceeds from the sale of property, plant and equipment
2,900
Purchase of property, plant and equipment
(123,174)
Proceeds from sale of investments
1,343,417
Purchase of investments
(1,154,087)
Net cash provided by (used in)
investing activities
278,669
CHANGE IN CASH AND CASH EQUIVALENTS
IN THE REPORTING PERIOD
b
£590,920
NOTES TO THE CASH FLOW STATEMENT
a. Reconciliation of net income/(expenditure)
with net cash flow from operating activities
2021
Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
1,525,925
Adjustments for:
Depreciation charges
91,509
(Gains)/losses on investments
(1,016,186)
Dividends and interest from investments
(209,613)
(Profit)/loss on disposal of fixed assets
(2,900)
(Increase)/decrease in debtors
(100,246)
Increase/(decrease) in creditors
18,509
Increase/(decrease) in provisions
5,253
Net cash flow from operating activities
£312,251		 2020 2020
239,042
-
(79,247)
1,333,739
(2,211,490)		 165,795
(717,956)
£(552,161)
2020
(355,890)
68,683
711,182
(239,042)
-
24,519
(645)
(43,012)
£165,795

Net cash flow from operating activities includes investment income since this forms part of the Charity's operating income.

b. Analysis of cash and cash equivalents

Cash at bank and in hand
Bank overdraft
Investment cash deposits		 At 31.3.21
1,730,114
(13,117)
207,034
1,924,031
£		 At 1.4.20
1,286,899
-
46,212
£1,333,111

The notes on pages 12 to 21 form part of these accounts

Page 12

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS AS AT 31 MARCH 2021

1. ACCOUNTING POLICIES

a. Basis of Accounting

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard (FRS) 102 and the Charities Act 2011.

The School constitutes a public benefit entity as defined by FRS 102.

The governors consider that there are no material uncertainties about the School's ability to continue as a going concern, note 18 provides further information. The most significant areas of future uncertainty that may affect the carrying value of assets held by the School are the level of investment return and the performance of investment markets. In the Governors' opinion there are no significant judgements that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses during the reporting period.

b. Pupils' Fees

Pupils' fees represent the value of services charged to Local Authorities and are accounted for in the period in which the service is provided.

c. Resources Expended

Expenditure is accounted for on an accruals basis. The school is not registered for VAT and all costs include input VAT where this has been charged.

Charitable activities include all expenditure incurred in meeting the educational and care needs of the pupils. The nature of the school is such that this is considered to be one activity.

Support costs are all attributable to the one charitable activity and consist of administration (including salaries, office costs and staff training), information technology and marketing.

Governance costs comprise the costs of audit, legal advice and compliance with constitutional and statutory requirements. They include a proportion of the salaries of members of staff who are engaged in these activities, apportioned on the basis of the time spent. Governance costs are included within charitable activities.

Amounts payable under operating leases are charged as expenditure on a straight-line basis over the lease terms.

d. Tangible Fixed Assets

Educational equipment used directly in carrying out the charitable purposes of the school is written off on acquisition, on the basis that it has no economic value.

Other fixed assets costing more than £5,000 are capitalised and depreciation is calculated to write off the costs over their expected useful economic lives as follows:

Improvements to property 10% straight line basis
Telephone and computer network 20% to 33 1/3% straight line basis
Fixtures, fittings and garden equipment 25% straight line basis
Motor vehicles 25% straight line basis

A full year's depreciation is charged for assets purchased during the year. Impairment reviews are carried out when there is an indication that an asset's recoverable amount is less than its net book value.

e. Heritage Assets

Heritage assets are capitalised if the acquired cost or acquisition value is greater than £5,000, otherwise the cost is written off at acquisition.

Page 13

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS AS AT 31 MARCH 2021

1. ACCOUNTING POLICIES (CONTINUED)

f. Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

g. Debtors

Debtors are measured at the amounts the charity anticipates it will receive from a debt or the amount it has paid in advance for goods or services.

h. Cash at bank and in hand

Cash at bank and in hand includes cash and cash on deposit.

i. Creditors

Creditors are measured at the amounts the charity anticipates it will pay to settle a debt or the amount it has received as an advance payment for goods or services it must provide.

j. Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. They are initially recognised at transaction value and subsequently measured at their settlement value.

k. Pension Costs

Contributions in respect of the Teachers' Pension Scheme and the multi-employer scheme operated on behalf of other staff are charged as expenditure in the period to which they relate.

l. Provisions

Provisions are recognised when the School has a present obligation as a result of a past event and it is probable that the School will be required to settle the obligation. Provisions are measured at the Governors' best estimate of the amount required to settle the obligation.

m. Fund Accounting

Where the Governors have set aside certain amounts out of the school's general funds for specific purposes, these are referred to as 'designated funds' and accounted for separately. Income arising on designated funds is credited to the general fund and capital gains and losses are credited or charged to the designated fund on which they arose.

Page 14

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31 MARCH 2021

2. INVESTMENT INCOME

2.
INVESTMENT INCOME
Income from quoted investments
Interest on cash held on deposit
3.1 CHARITABLE ACTIVITIES - 2021
Staff costs
Teaching
1,313,495
Welfare
757,113
Household
193,384
Premises
110,287
Transport
-
Support costs of school
Information technology
50,621
Marketing costs
-
Administration
289,367
Governance costs (note 4)
58,785
£2,773,052
3.2 CHARITABLE ACTIVITIES - 2020
Staff costs
Teaching
1,236,571
Welfare
697,231
Household
204,483
Premises
78,309
Transport
-
Support costs of school
Information technology
47,028
Marketing costs
-
Administration
170,356
Governance costs (note 4)
35,454
£2,469,432		 Other costs
88,204
16,178
108,192
581,139
16,368
51,346
5,024
79,008
31,277
£976,736
Other costs

92,517
25,480
91,619
507,286
19,061
44,612
3,730
75,131
23,689
£883,125		 Depreciation
-
-
62,765
8,598
-
17,246
-
-
-
£88,609
Depreciation
-
-
38,635
11,091
1,650
17,307
-
-
-
£68,683		 Year to
31/03/2021
208,723
890
£209,613
Year to
31/03/2021
1,401,699
773,291
364,341
700,024
16,368
119,213
5,024
368,375
90,062
£3,838,397
Year to
31/03/2020
1,329,088
722,711
334,737
596,686
20,711
108,947
3,730
245,487
59,143
£3,421,240		 Year to
31/03/2020
232,659
6,383
£239,042
Year to
31/03/2020
1,329,088
722,711
334,737
596,686
20,711
108,947
3,730
245,487
59,143
£3,421,240
4.
GOVERNANCE COSTS
Year to
31/03/2021
Staff costs
58,785
Auditors' remuneration : for audit
10,600
: for other services
6,200
Legal fees
14,243
Professional fees
234
Governors' travel expenses (0 Governors (2020: 6))
-
£90,062
There were no amounts due to Governors as at 31 March 2021 (2020: £Nil)
A premium of £1,179 was paid for Governor Indemnity Insurance (2020: £284).
5.
STAFF COSTS
Year to
31/03/2021
Salaries and wages
2,171,262
Social security costs
212,406
Pension costs
389,384
£2,773,052		 Year to
31/03/2020
35,454
10,200
4,200
6,052
2,316
921
£59,143
Year to
31/03/2020
1,979,641
177,298
312,493
£2,469,432

Page 15

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31 MARCH 2021

5. STAFF COSTS (continued)

The number of employees whose emoluments (excluding employer pension contributions) over £60,000 were :

Gross emoluments
£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000
£90,000 - £100,000		 2021
-
2
-
1
___		 2020
-
-
1
1
___
For these three employees (2020: two), retirement benefits are accruing in the Teachers' Pension Scheme.
The contributions amounted to:
£42,150
£18,584
The average numbers of employees, analysed by function, were:
2021
2020
Teaching (including Special School Assistants)
32
32
Care
19
18
Administration, domestic and maintenance
22
20


73
70

 For these three employees (2020: two), retirement benefits are accruing in the Teachers' Pension Scheme.
The contributions amounted to:
£42,150
£18,584
The average numbers of employees, analysed by function, were:
2021
2020
Teaching (including Special School Assistants)
32
32
Care
19
18
Administration, domestic and maintenance
22
20


73
70

 For these three employees (2020: two), retirement benefits are accruing in the Teachers' Pension Scheme.
The contributions amounted to:
£42,150
£18,584
The average numbers of employees, analysed by function, were:
2021
2020
Teaching (including Special School Assistants)
32
32
Care
19
18
Administration, domestic and maintenance
22
20


73
70
2020
32
18
20

70

The School considers its key management personnel to be the senior management team which comprised the Headmaster, Deputy Head, Head of (Pastoral) Care, Head of Education, Finance Manager and Director of Development. The total employee benefits of the key management personnel were £418,046 (2020: £272,613).

The Governors received no remuneration in either of these years.

6. TANGIBLE FIXED ASSETS

Telephone
Improvements
and computer
toproperty
network
COST
At 1 April 2020
970,236
239,294
Additions
9,393
11,334
Disposals
(5,728)
-
At 31 March 2021
973,901
250,628
DEPRECIATION
At 1 April 2020
955,704
212,355
Charge for the year
8,598
17,246
Disposals
(5,728)
-
At 31 March 2021
958,574
229,601
NET BOOK VALUE
At 31 March 2021
15,327
£
21,027
£
At 31 March 2020
14,532
£
26,939
£
Capital Commitments
Contracted for but not provided for in the accounts
Authorised by Governors but not contracted for		 Fixtures,
Fittings and
Garden
Equipment
411,616
102,447
(52,656)
461,407
362,008
65,665
(52,656)
375,017
£86,390
£49,608		 Motor
Vehicles
100,882
-
(13,865)
87,017
100,882
(13,865)
87,017
£0
£0
2021
£76,092
£0		 Total
1,722,028
123,174
(72,249)
1,772,953
1,630,949
91,509
(72,249)
1,650,209
£122,744
£91,079
2020
£18,939
£0

Page 16

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31 MARCH 2021

7. HERITAGE ASSETS

The school has a collection of artefacts from the First World War which are considered to be heritage assets. No items were acquired for an amount of more than £5,000 and consequently in accordance with School's accounting policy no value is attributed to their costs in the Balance Sheet.

8. INVESTMENTS

Listed investments, at market value, and cash managed by Brewin Dolphin Securities Ltd. were invested as follows :-

Market value at 1 April 2020
Acquisitions at cost
Disposals at opening market value
Increase/(decrease) in cash balances
Net unrealised gains / (losses)
Market value at 31 March 2021
Investments at market value comprised:
UK Bonds
UK Equities
Overseas Bonds
Overseas Equities
Other Investments
Cash Deposits
Historical cost		 General
Fund
2021
5,727,915
1,154,086
(1,240,783)
160,823
913,552
£6,715,593
1,057,596
1,394,959
459,600
2,276,331
1,320,073
207,034
£6,715,593
£5,676,900		 General
Fund
2020
5,560,821
2,211,490
(1,301,674)
525
(743,247)
£5,727,915
1,507,237
1,298,788
1,500,699
1,374,979
46,212
£5,727,915
£5,745,700

At 31 March 2021 there were no individual investments constituting more than 5% of the total market value of the portfolio.

9. DEBTORS

Local Authority fees
Investment income receivable
Other debtors
Prepayments
10. CASH AT BANK AND IN HAND
Bank current and deposit accounts
Cash in hand		 2021
173,558
16,193
2,709
46,978
£239,438
2021
1,729,529
585
£1,730,114		 2020
85,423
18,885
916
33,968
£139,192
2020
1,286,224
675
£1,286,899

Page 17

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31 MARCH 2020

11. CREDITORS: Amounts falling due within one year

2021
Bank overdraft
13,117
Trade creditors
60,486
Other creditors
43,190
Pension contributions
45,839
Accruals
24,165
Tax & social security
63,172
£249,969
PROVISIONS FOR LIABILITIES AND CHARGES
Deferred
Pension
Holiday pay
loan
liability
accrued
Brought forward provisions at 1 April 2020
323,131
291,612
87,386
Additions
-
-
16,318
Reduction
-
(11,065)
-
Carried forward provisions at 31 March 2021
£323,131
£280,547
£103,704		 2020
-
26,512
27,787
40,206
78,735
45,103
£218,343
Total
provisions
702,129
16,318
(11,065)
£707,382

12. PROVISIONS FOR LIABILITIES AND CHARGES

Deferred loan

While it is possible that under the terms of SI 1978 No. 629, the loan might be repayable, the Governors take the view that the Secretary of State will agree that repayment may be postponed as part of the reconstitution of the School

Pension liability

This is set out in more detail in Note 15.

Holiday pay accrual

A provision has been made for the value of any holiday which staff have accrued at each year end but not yet taken. The movement in the provision is charged to staff costs.

13.1 ANALYSIS OF NET ASSETS BETWEEN FUNDS - 2021

ANALYSIS OF NET ASSETS BETWEEN FUNDS - 2021
Tangible fixed assets
Investments
Net current assets
Long term liabilities		 General
Fund
122,744
6,715,593
(1,242,961)
(707,382)
£4,887,994		 Designated
Funds
-
-
2,962,544
-
£2,962,544		 Total
Funds
122,744
6,715,593
1,719,583
(707,382)
£7,850,538

13.2 ANALYSIS OF NET ASSETS BETWEEN FUNDS - 2020

ANALYSIS OF NET ASSETS BETWEEN FUNDS - 2020
Tangible fixed assets
Investments
Net current assets
Long term liabilities		 General
Fund
91,079
5,727,915
(1,298,305)
(702,129)
£3,818,560		 Designated
Funds
-
-
2,506,053
-
£2,506,053		 Total
Funds
91,079
5,727,915
1,207,748
(702,129)
£6,324,613

Page 18

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31 MARCH 2021

14.1 DESIGNATED FUNDS - 2021

DESIGNATED FUNDS - 2021
Major Building Repairs Fund
West Wing Fund
Staff Accommodation Fund
Development Fund		 At 1.4.20
1,029,696
1,426,357
-
50,000
£2,506,053		 Expended
(105,100)
-
-
(50,000)
£(155,100)		 Transfers
-
600,000
11,591
-
£611,591		 At 31.3.21
924,596
2,026,357
11,591
-
£2,962,544

The funds have been designated by the Governors for specific school purposes as follows :-

MAJOR BUILDING REPAIRS FUND

The fund was created to provide funds for the repairs, refurbishment and restoration of the Grade II listed buildings at Melchet Court, together with monuments, gardens and walls and other buildings within the curtilage of the estate.

WEST WING FUND

The fund was created to provide funds for the redevelopment of the West Wing.

STAFF ACCOMMODATION FUND

This fund was created to provide funds for the repair of staff accommodation. DEVELOPMENT FUND

This fund was created to provide funds for small-scale projects of a capital or one-off nature.

14.2 DESIGNATED FUNDS - 2020

Major Building Repairs Fund
West Wing Fund
Staff Accommodation Fund
Development Fund		 At 1.4.19
903,230
1,276,357
6,833
-
£2,186,420		 Expended
(23,534)
-
-
-
£(23,534)		 Transfers
150,000
150,000
(6,833)
50,000
£343,167		 At 31.3.20
1,029,696
1,426,357
-
50,000
£2,506,053

15.1 PENSION COSTS -2021

Teaching staff belong to the Teachers' Pension Scheme. This is an unfunded defined benefit scheme operated by the Government with contributions calculated on an actuarial basis, but set in relation to the current service period only. In accordance with FRS 102 the contributions have been accounted for as if this were defined contribution scheme. The employer's contribution was 16.48% of contributory salary but increased with effect from 1 September 2019 to 23.68%. During the year to 31 March 2021, the employer's contributions were £129,693 (2020:£89,184). £17,228 was owed to the scheme at the year end and included in creditors (2020: £12,101).

Certain other staff belong to the Hampshire County Council scheme. This is a funded defined benefit multiple employer scheme, in which the individual assets and liabilities of the member employers are identified separately and the actuarial assumptions used for the valuations were tailored to the individual employers rather than averaged across the whole scheme.

During the year ended 31 March 2020 the scheme actuary carried out a full revaluation of the scheme as at 31 March 2019. The School's liability at 31 March 2020 is therefore the calculated liability at 31 March 2019 as adjusted by subsequent contributions and increases in earned member benefits, and with both assets and liabilities assumed to increase from the March 2019 figure in accordance with the discount rate used by the actuary for the purposes of the March 2019 revaluation.

Page 19

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31 MARCH 2021

15.1PENSION COSTS (continued)

The movements in the net liability during the year ended 31 March 2021 are as follows:

Liability at 31 March 2020
Contributions in year
(Increase)/decrease in defined benefit liability
Interest
Liability at 31 March 2021		 Plan assets
5,606,363
247,833
-
210,239
£6,064,435		 Obligations
(5,897,975)
-
(225,833)
(221,174)
(£6,344,982)		 Net liability
(291,612)
247,833
(225,833)
(10,935)
(£280,547)

The total employer's contributions during the year were £199,387 (2020: £201,329). A total of £20,466 was outstanding at the year end and included in creditors (2020: £21,014).

The principal actuarial assumptions used in the valuations are
Discount rate 3.75%
Future salary increases 3.10%

In the event that the school were to leave the scheme it would be liable to make a termination payment to the scheme calculated on more conservative actuarial assumptions than the overall scheme deficit. This payment was calculated at £3.267 million as at 31 March 2019 although it is possible that the payment could be mitigated depending on the circumstances.

The school also operates a defined contribution scheme on behalf of other employees. The assets of these schemes are held separately from those of the school in an independently administered funds. During the year to 31 March 2021, the employer's contributions amounted to £42,158 (2020: £41,211). There was £8,145 unpaid to the scheme at the year end (2020: £7,091).

15.2PENSION COSTS -2020

The movements in the net liability during the year ended 31 March 2020 are as follows:

Liability at 1 April 2019 per 2019 accounts
Revaluation of fund assets at 1 April 2019
Effect of change in actuarial assumptions at 1 April 2019
Adjusted liability at 1 April 2019 following revaluation
Contributions in year
(Increase)/decrease in defined benefit liability
Interest
Liability at 31 March 2020		 Plan assets
4,846,903
315,097
-
5,162,000
250,788
-
193,575
£5,606,363		 Obligations
(5,768,617)
-
267,617
(5,501,000)
-
(190,688)
(206,287)
(£5,897,975)		 Net liability
(921,714)
315,097
267,617
(339,000)
250,788
(190,688)
(12,712)
(£291,612)

16. RELATED PARTY AND CONTROL

The school land and buildings are owned by Clifton Diocese and occupied by the school which maintains them. The school pays the buildings insurance of £19,573 (2020: £17,288) and core services and other services of £233 (2020: £237) to the Clifton Diocese.

The school received £5,565 from the Clifton Diocese in the year in respect to farm tenancy agreements (2020: £4,688).

Page 20

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31 MARCH 2021

17. OPERATING LEASES

At 31 March 2021 the School had future minimum lease payments under non-cancellable operating leases as follows:

Amounts due within one year
Amounts due between two and five years		 2021
2020
4,415
5,303
2,439
6,854
£6,854
£12,157
Equipment		 2021
2020
7,344
7,344
11,040
18,384
£18,384
£25,728
Motor Vehicles		 2021
2020
7,344
7,344
11,040
18,384
£18,384
£25,728
Motor Vehicles
7,344
18,384
£25,728

The total amounts charged as an expense during the year for operating leases were £11,806 (2020: £12,061)

18. POST BALANCE SHEET EVENTS

The Global COVID-19 pandemic emerged at the end of the previous financial year and continued throughout this financial year. The effects of the pandemic do not result in any adjustment being made to the value of assets and liabilities at the balance sheet date. The School remains open and is continuing to operate observing the emergency measures that have been imposed to control the spread of the virus.

The Governors are confident that the School will continue and will be able to overcome the difficulties affecting its activities and as a consequence these accounts have been prepared on the going concern basis.

Page 21

ST. EDWARD'S SCHOOL NOTES TO THE ACCOUNTS (CONTINUED) AS AT 31 MARCH 2021

19. PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES

INCOME FROM:
Donations and legacies
Charitable activities
Pupils' fees
Other trading activities
Lettings and wayleaves
Investments
Other
Staff rents
Other income
Total
EXPENDITURE ON:
Costs of generating funds
Investment management charges
Charitable activities
Costs of operation of school
Total
Net income/(expenditure) before gains
and losses on investments
Net gains / (losses) on investments
Unrealised
Realised
Net income / (expenditure)
Transfers between funds
Other gains and losses
Actuarial gains
Net movement in funds
Total funds brought forward
Total funds carried forward		 Note
2
3.2
14.2
15.2		 General
Fund
500
3,471,541
6,004
239,042
78,507
10,552
3,806,146
29,614
3,397,706
3,427,320
378,826
(743,247)
32,065
(332,356)
(343,167)
582,714
(92,809)
3,911,369
£3,818,560		 Designated
Funds
-
-
-
-
-
-
-
-
23,534
23,534
(23,534)
-
-
(23,534)
343,167
-
319,633
2,186,420
£2,506,053		 Year to
31/03/2020
500
3,471,541
6,004
239,042
78,507
10,552
3,806,146
29,614
3,421,240
3,450,854
355,292
(743,247)
32,065
(355,890)
-
582,714
226,824
6,097,789
£6,324,613