**Company No: 09665070**
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
**FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31ST JULY 2021**
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors**
## **GOVERNORS, DIRECTORS AND CHARITY TRUSTEES**
The Governors of Manchester High School for Girls (“the School”) are the School’s charity trustees under charity law and the directors of the charitable company. The members of the Governing Body who served in office as Governors during the year and subsequently are detailed below.
Professor Lady Rachel Davies Cooper OBE (Chair) Andrew Bland (Vice Chair) (Hulme Trust Estates Nominated) Merlyn Lowther (Hon Treasurer) Stephanie Klass (Retired 01/12/2020) Dr Amar Ahmed Laura Earnshaw Marie Grant (Retired 07/07/2021) Vicky Kloss Christopher Saunders OBE (Retired 07/07/2021) Kate MacLean (or Dickson) Giles Burton Joy Kingsley Hayley Goldstone Prof Fiona Smyth (University of Manchester Nominated) Carol Baxter (appointed 17/06/2021) Joanna Conway (appointed 17/06/2021) Mohammed Khan (appointed 17/06/2021) Tamsin Lloyd-Tyrrell (appointed 17/06/2021) Mohammed Yasin (appointed 17/06/2021)
There were no other changes within the Governing Body during the year
## **Senior Leadership Team**
The key management personnel who served during the year were:-
Mrs H F Jeys Head Mistress (Appointed 01/09/20) Mrs A C Hewitt Head Mistress (Retired 31/08/20) Mrs A Goddard Deputy Head Mistress (Appointed 01/09/16) Mrs J Hodson Deputy Head Mistress (Appointed 01/09/16) Mrs S Norton Assistant Head (Appointed 01/01/15) Mrs S Gibbons Head of Preparatory Department (Appointed 01/09/21) Mrs H Mortimer Head of Preparatory Department (Resigned 31/8/21) Mr J P Moran Director of Finance & Estates (Bursar) (Appointed 01/07/05) Mrs L Barnwell Development & Marketing Director (Appointed 15/02/21) Mrs P Ashcroft Development & Marketing Director (Resigned 25/11/20)
## **Company secretary:**
Mr J P Moran Director of Finance & Estates (Bursar)
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
**Registered address:** Grangethorpe Road Manchester M14 6HS
|**Leadership Team**||
|---|---|
|Head Mistress:|Mrs H F Jeys|
|Director of Finance||
|& Estates (Bursar):|Mr J P Moran|
|Clerk to the Governors|Mrs S Sutton|
|Registered Address:|Grangethorpe Road|
||Manchester|
||M14 6HS|
|Charity Registration Number:|1164323|
|Company Number:|09665070|
|**ADVISERS:**||
|Auditors:|Crowe LLP|
||3rdFloor, The Lexicon|
||Mount Street|
||Manchester|
||M20 6NW|
|Solicitors:|Addleshaw Goddard LLP|
||One St Peter’s Square|
||Manchester|
||M2 3DE|
||Ellis Whittam LLP|
||Woodhouse|
||Church Lane, Aldford|
||Chester|
||CH3 6JD|
||Veale Wasbrough Vizards LLP|
||Narrow Quay House|
||Narrow Quay|
||Bristol|
||BS1 4QA|
|Bankers:|Santander UK Plc|
||Bootle|
||Merseyside|
||L30 4GB|
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
## **ANNUAL REPORT OF THE GOVERNORS**
The Governors present their annual report for the year ended 31st July 2021 under the Charities Act 2011, together with the audited accounts for the year and confirm that the latter comply with the requirements of the Act, the Articles of Association of the company and the Charities SORP (FRS102).
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
The Charity was founded in 1874 as a charitable trust and was registered with the Charity Commission under charity number 532295.
On the 1 December 2016 transfer of assets took place from this Charity to a new charitable company (company number 9665070 and registered charity number 116423) which was set up by the Governors (as Trustees) to receive the assets of the Charity and the undertaking of Manchester High School for Girls as part of a process to modernise the legal structure of the Charity.
The Transfer Deed provided for all of the Charity’s unrestricted assets and liabilities to be transferred to the new charitable company. The land and buildings, considered to be a permanent endowment, remained within the charitable trust, which was renamed the MHSG Property Trust.
On 6 February 2017 the Charity Commission made a “linking direction” which formally determined that the MHSG Property Trust (RCN 532295) be “linked” with charity number 116423. This means that the two charities are registered under a single registration number and that the Governors can produce a single set of accounts for the reporting and linked charity. As a result of the linking direction, the MHSG Property Trust is now registered under number 116423-1.
The School’s Governors, Senior Leadership Team and address are listed on page 2. Particulars of the Charity’s professional advisers are given on page 3.
## **Connected Charities**
The Manchester High School for Girls General Charitable Trust is closely connected to the school. The material transactions between the School and the Trust are detailed in note 18 in the financial statements. The Trust’s charity registration number is 506823 and its registered address is at the school’s premises detailed on page 2.
There are also a number of small linked charities which are Prize Funds donated to the School over the course of its history. These Prize Funds are included as restricted funds within the financial statements of the School.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Document**
The School, which was founded in 1874, is a company limited by guarantee and a registered charity. It is governed by Articles of Association dated 1[st] July 2015 and amendments made by special resolution dated 6[th] October 2015.
## **Appointment and training of Governors**
Members of the Governing Body are recruited, dependent upon their expertise, experience and skills. Nominated Governors are as follows:
(i) One by the Trustees of the Charity called Hulme Trust Estates (Educational) at Manchester and elsewhere and;
- (ii) One by the Board of Governors of the University of Manchester
New Governors are inducted into the workings of the Charity, including policies and procedures, together with an appropriate training schedule depending upon their existing area of expertise.
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
## **Risk Management, Principal risks and uncertainties**
The Governors are responsible for the overseeing of the risks faced by the school. Detailed considerations of risks are delegated to the senior management of the school. During the year the Governors have examined the principal areas of the School’s operations and considered the major risks in each of these areas. A Risk Matrix is maintained and reviewed on an annual basis. Risk is managed under the headings of strategic, operational, safety, compliance, employment, educational and financial risk. In the opinion of the Governors the School has established systems, which under normal circumstances, should allow these risks to be mitigated to an acceptable level in its day-to-day operations.
A Policies and Procedures Register is updated on an ongoing basis as amendments are approved by the appropriate committee and is reviewed in its entirety by the Governors on an annual basis.
The Governors continue to keep the School’s activities under review, particularly with regard to any major risks that may arise from time to time and monitor the effectiveness of the internal controls and other viable means, including insurance cover where appropriate, by which those risks already identified by the Governors can be best mitigated.
Among the most significant short-term non-financial risks faced by the School this year were considered to be the health and safety of the pupils and staff in the light of the Covid-19 pandemic. This was managed by frequent risk assessments, compliance with Government guidelines relating to schools and continuous attention to hygiene standards. Other significant risks identified included poor examination results, failure to attract or retain staff and the risk of accidents or injury to pupils or staff. These risks are managed by continuous monitoring of pupils’ performance at all levels, suitable conditions of employment (monetary and otherwise) for staff and stringent health and safety measures.
The Governors have also considered longer-term economic uncertainty, particularly in relation to the impact of the continuing COVID-19 pandemic, Brexit, and potential future increases in teacher’s pension contributions. In relation to the pandemic, all schools in England were closed in January 2021 by the government except for the children of key workers and reopened in March 2021 for all pupils. During the closure period, lessons for pupils were provided on-line using a range of software and allowed the original daily timetable to continue on a virtual basis. Tuition fee income was not affected by the pandemic in 2020-21. Regarding Brexit, its effects are still to be fully understood and a keen eye is being kept on any major developments. For teacher’s pension contributions, a review is underway to consider the school’s future provision.
Through the recent uncertainties the Governors have adopted a policy of building up reserves while the future strategy is being developed. They are, therefore, confident that the School remains a going concern for the foreseeable future and so have prepared the accounts accordingly.
## **Organisational structure and decision making**
The officers of the school together with other administrative information are listed on page 2 to the financial statements.
The day-to-day management of the School is delegated to the Head Mistress and Senior Leadership Team. A newly appointed Extended Management Team (September 2020) is in place to support the work of the Senior Leadership Team. The Governors determine the strategic direction and general policy of the school with the Senior Leadership Team. They achieve this through discussions with staff and at Board meetings and sitting on one or more of the main committees; Academic Development, Finance, Estates and Personnel. Each of these committees meets three times a year to monitor the activities of the school. Board meetings of the Governors normally take place three times a year, covering operational, tactical and strategic issues. Governors are also called upon periodically with matters outside the meetings such as senior leadership appointments.
## **OBJECTS, AIMS, OBJECTIVES AND POLICIES**
## **Charitable Objects**
The objects of the charity are:
The advancement of education for the public benefit by:
- (a) the provision and conduct of a day and/or day and boarding school or schools in or near Manchester or elsewhere primarily but not exclusively for girls.
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
- (b) The provision of, scholarships, allowances or any other form of financial assistance at such times and in such manner as the Governors shall determine
- (c) The provision and support of ancillary or incidental educational activities and any other associated activities for the benefit of the community as a whole in Manchester or elsewhere and
- (d) The provision and support of other educational institutions and activities in Manchester or elsewhere
The primary activity of the charity is offering education appropriate to the needs of talented girls aged from 4 to 18, through the provision in Manchester of a day school for girls.
In 2020-21 the Governors and Senior Leadership Team, under the leadership of the Head Mistress, undertook a review of the School’s stated vision, mission and values to ensure they remained true to the founding ethos of the School and relevant to today’s society. The resultant mission statement is:
Our mission is to be a pioneering, academically selective school that embraces academic excellence and extra-curricular enrichment where the individual flourishes. The School empowers and inspires highly talented, intellectually curious students to become selfconfident, independent, resilient and remarkable global citizens.
## **School Ethos and Access Policy**
The School remains true to the spirit of the Founders. We see ourselves as part of local, national and global communities. We are committed to giving our students the very best education. Girls receive a rigorous academic training, but learn as well the importance of social responsibility, a sense of community and an appreciation of diversity in our multi-cultural society. Over 45 different languages are spoken in the homes of our current students and since its foundation the School has had a strong tradition of embracing other cultures and religious beliefs. In the 1875 ‘Memorial’ to the Charity Commissioners the School Committee stated clearly: ‘The school is intended to be open for any girls of suitable age, character and ability, without any distinction as to religious profession or social rank.’
The School is academically selective and, as such, sets its own entrance examination. Applicants for entry into Year 7 are examined in Mathematics, Essay Writing, Comprehension, Verbal Reasoning and Non-Verbal Reasoning. Applicants who do well enough in the initial written examination are invited to attend an interview. Not all those interviewed, however, are offered a place. At the interview stage we look for potential, a wide range of interests and a match between the ability of the child and her performance in the entrance examination. A school report is requested from the Head Teacher of the applicant’s present school. The Head Teacher’s recommendation and comments are an important part of the selection process.
It is the policy of the School to enable pupils to attain the highest academic levels whilst pursuing a curriculum which is broad and balanced, with wide-ranging extra-curricular opportunities. A highly qualified staff and excellent facilities particularly for music, science, computing, language teaching and physical education combine to provide a stimulating educational environment. Pastoral care and encouragement to individual development in creative, leadership and teamwork skills are also important objectives.
Pupils and staff are encouraged to contribute to the local community by the establishment and development of links at various levels with state-maintained schools in the surrounding area.
## **Objectives for the year 2020-21**
The main aim for this year was to develop and then embed the newly published values and 3-year strategic objectives. These include a focus on ensuring that we are providing a research-based approach to teaching and learning, reviewing our curriculum and sustaining the high-quality pastoral and educational experience for our pupils as we progress through the COVID pandemic. Other objectives included the development of the school’s facilities and the sustained focus on fundraising opportunities so that we can, ideally, raise the level of bursary support offered.
The cancellation of A level and GSCE exams due to the coronavirus pandemic required the teaching staff to use evidence of pupil attainment to produce Teacher Assessed Grades. The School’s rigorous approach to assessment of progress aided this task.
The objectives in relation to further development of the school’s facilities were not achieved as all non-essential expenditure was stopped in order to conserve the school’s resources while the future strategy was being developed.
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
## **Grant-Making Policy**
Subject to the reserves policy, the school transfers funds surplus to its immediate and planned development needs to The Manchester High School for Girls General Charitable Trust to assist in the provision of grants to current and future pupils.
This year the School transferred £421,997 (2019-20 - £174,126) to the Charitable Trust. The higher sum reflected the Governors’ decision to make a substantial voluntary donation to the Charitable Trust at the end of the year. The connected charity awarded bursary grants as detailed in note 18.
## **Means tested Bursaries Policy**
The school has a long tradition of social inclusion. From the beginning, the Founders of Manchester High School for Girls embarked on a quest for endowments for scholarships to enable girls from low-income families to benefit from an academic education. The first two scholarships date from the first years of the school. Under the Assisted Places Scheme over a third of the school places were assisted places. Following the removal of that scheme in 1997, the school has been actively engaged in raising money (via The Manchester High School for Girls General Charitable Trust), to fund its Bursary programme to enable students from families who might otherwise be deterred by the level of fees to attend the School.
The school has each year funded bursaries into both Year 7 and the Junior Sixth. The Governors view our bursary awards as important in helping to ensure children from families who would otherwise not be able to afford the fees can access the education we offer. Our bursary awards are available to all who meet our general entry requirements and are made on the basis of both ability and parental means. In assessing means we take a number of factors into consideration including family income, and family circumstances for example: dependant relatives and the number of siblings. However, our School does not have a large endowment and in funding our awards we have to be mindful that we must ensure a balance between fee-paying parents, many of whom make considerable personal sacrifices to fund their child’s education, and those benefiting from the awards.
The bursary awards offer assistance with tuition fees according to a sliding scale that is linked to family income. Families with a total gross income of up to £14,500 may be eligible for full remission of fees. With a gross income of between £14,500 and £50,000 (2020/2021) families may be eligible for a partial remission of fees.
Students from families in receipt of Income Support may qualify for free school lunches. Also, pupils living at a distance from school may qualify for an annual grant towards the costs of travel. A uniform grant of up to £420 may also be available at the beginning of the first year in school. To be considered for any of these extra grants, parents must make a written request to the Head Mistress following their acceptance of a place. Where there are two or more sisters attending Manchester High School for Girls at the same time and both in receipt of financial assistance, parents may qualify for a 20% reduction in their contribution to fees only under the Bursary Scheme.
Some bursaries are awarded on the basis of an annual grant, the maximum amount of which will be specified when a place is offered. All awards, whether calculated according to family income or on a flat rate, are based on a combination of academic merit and a parental statement of need. They are subject to an annual review of income. Details are confidential but supporting documentation is required.
Information about fee assistance through bursaries is provided to all applying to the school and details of our bursary policy and how to apply are available on our website and in the prospectus.
We also have a hardship fund that supplements bursary awards to pay for short-term hardship, usually up to a maximum of two terms, where a pupil’s education and future prospects would otherwise be at risk for example in the case of redundancy.
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
## **Scholarships Policy**
The purpose of our scholarship awards is to recognise high academic potential or the ability to excel in our extra-curricular activities. Our scholarships are awarded on the basis of the individual’s academic potential or evidence of exceptional abilities which will contribute to our extra-curricular activities. In addition, awards may be subject to conditions imposed by the original donor.
One or more academic scholarships may be awarded for excellence in performance in the entrance examination.
For the Music Scholarship applicants should have reached ABRSM Grade 3 or equivalent.
For the Dance/Sports Scholarships girls may be invited to come for an assessment where their performance will be evaluated against their peers. A written recommendation is required from a dance teacher or sports coach along with copies of any awards or certificates achieved.
Scholarships are awarded with a fixed remission of fees of between 5% and 50%. Where further assistance is required, scholarship awards may be supplemented by a means tested bursary. Further details of our scholarship policy are available on our website.
## **Other Public Benefit**
The School has regard to The Charity Commission’s guidance on public benefit, recognising that it does not have sufficient funds to help all those who might need financial assistance in the difficult economic climate.
a) Links and events with other schools We use our imagination and initiative to establish links with other schools and agencies to support a range of educational activities for the benefit of pupils attending state schools and their teachers. In practice most schools, both primary and secondary, have established links with their local secondary schools or sixth form colleges which, understandably, they are reluctant to compromise by entering into a partnership with a school which, by dint of its selective and single-sex nature, many of its pupils may not be able to attend. It has become clear that we do have, however, areas of particular expertise which are of great interest and practical benefit to other schools. We are currently concentrating on developing these areas. Examples of this are St James Partnership; Physics Partners; Model United Nations (MUN) Scheme and Conference.
We are aware that, although we typically offer events free of charge, schools still incur significant costs when sending pupils to events (in terms of provision of supervision and transport), and also sending teaching staff to events during working hours (cover costs).
b) The archive
MHSG has a substantial archive dating back to the School’s foundation in 1874. It is one of the most complete archives in the country, documenting the introduction of an academic education for girls. It is therefore of local, national and international importance and is consulted by academics from around the world.
The School funds the work of two archivists (2x 8 hours per week for 36 weeks a year) to manage the collection and respond to enquiries. The School has invested in IT solutions to make the collection accessible to researchers online and to ensure a rapid response for enquiries. Information from the archive has been used by undergraduate, postgraduate and independent researchers. Family research – former pupils and their families have been provided with information from the archive to support them with their research. Enquiries are dealt with free of charge.
## c) Charity fundraising
Pupils in both the Prep Department and Senior School raise substantial funds for a wide range of charities.
d) Expertise sharing MHSG is fortunate in having an experienced and academically highly qualified staff. Our staff give generously of their time, making use of their expertise to support activities in education and beyond. This includes acting as school governors and providing advice and sharing expertise. The School actively supports members of staff who wish to use their expertise in the setting and marking of public examinations and MHSG continues to be a training school for Manchester University Education Department.
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
e) Use of facilities We aim to make our facilities available to the local community at below market rates.
The School’s Summary of Public Benefit Activities is reviewed by the Governors on an annual basis.
## **Fundraising Policy**
Fundraising in School takes many forms; including activities by the pupils, staff and the Parent Teacher Association (PTA). The Development Team is at the heart of fundraising to support the School’s bursary appeal. Whilst the School from time to time may look to raise money to support the annual expenditure and capital projects, the vast majority of fundraising efforts are focused towards the provision of bursary places. This directly supports the School’s objectives to, “…enrol girls with true potential, regardless of their means to pay; striving to be academically, but not financially selective.”
Fundraising activities include indirect solicitations to alumnae and parents, direct mail campaigns (postal and email), and face-toface solicitations with donors. All fundraising efforts are solely led by the Development Team. Consultants and freelance fundraisers are not employed. The team has voluntarily signed up with The Fundraising Regulator to demonstrate dedication to best practice in fundraising and compliance with the law. Alongside our own Ethical Fundraising Policy we are committed to adhering to the regulator’s Code of Fundraising Practice and the Fundraising Promise. There has been no failure to comply with the standards laid out above and no complaints have been received about our fundraising activities or any individual member of the team carrying out fundraising activities.
Reports are provided to the Governors and the Trustees of the Manchester High School for Girls Charitable Trust about the Development Team’s fundraising practices during the year, in line with the requirements of Section 13 of the Charities (Protection and Social Investment) Act 2016 and in line with our Ethical Fundraising Policy. The Development Team is committed to protecting vulnerable people and other members of the public from unreasonable intrusion into privacy, unreasonable persistent approaches and the placing of undue pressure on a person to give money or property. The Ethical Fundraising Policy outlines the team’s approach to make certain this does not happen.
The team works to comply with GDPR laws, capturing communication consent preferences from our database, ensures they only ever communicate with people who have explicitly indicated they wish to be communicated with, and by their preferred method and frequency of communication. Any form of communication is logged on an individual’s constituent record within the team’s database, and only the Director of Development and Marketing and the Alumnae and Development Manager have access to this database.
The Development Team also supports Manchester High School for Girls through the creation of meaningful relationships with alumnae, pupils and parents (both current and former) and supporters of the School. This is done through a range of educational, social and networking events, publications and careers advice for current and recent pupils. Careers events, such as our “Insight Into…” evenings, which see members of the alumnae community giving pupils and parents the inside track on specific industry sectors, are always open to all neighbouring schools.
## **REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR**
## **Pupil numbers and fees**
In the year, Manchester High School for Girls pupil numbers were 742 (2019/20: 719) in the Senior School and 248 (2019/20: 248) in the Preparatory Department.
Our fees for the year 2020-21 before the deduction of any means assisted bursaries and scholarships were:
Infants £9,240 Juniors £9,390 Seniors £12,600
To underline the value we place on continuity for families, we offer discounts where parents have more than two children at the School.
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
As part of our emphasis on attracting and retaining high calibre staff, we offer a discount scheme where staff members choose to educate their children at our School.
## **Academic**
This year, once again, external examinations were cancelled as a result of the COVID-19 pandemic and grades published were teacher assessed.
Of the GCSE grades awarded to all of our students in 2021, 94.4% were grade 7 or above and the majority of our Year 11 pupils chose to stay on to join the MHSG Sixth Form.
In 2021, 99.3% of A-level grades awarded to MHSG students were A*-B. This compares to 98% of grades in 2020 and 91% in 2019 being awarded A*-B.
## **Co-curricular**
As soon as restrictions began to lift during the academic year, our co-curricular programme became a focus so that pupils could enjoy time together with pupils across year groups and re-engage with activities that are so important in enriching their educational experience.
In Sport, we offered a wide variety of clubs including tennis, cricket, swimming, water polo, rock climbing, fitness suite, football, cross-country, hockey, netball, gymnastics, strength and conditioning, fitness suite and rock climbing. We attended external team fixtures in most of these sports including football, hockey and netball. In Dance, our lunchtime dance groups were well attended, particularly by pupils in Key Stage 3.
In Music, pupils of all ages and abilities were able to join extra-curricular groups and ensembles including Junior Choir, Chorale, Vocal Group, Wind Band, wind and string ensembles and Senior Orchestra. There were also many opportunities for pupils to perform, including at virtual Twilight and Christmas Concerts and an end of year concert which was performed to a live audience. A large number of pupils took instrumental lessons with our peripatetic teachers.
In Drama, a huge number of girls were involved in the musical production Sweeney Todd and we were delighted that pupils were able to perform this to a small, live audience.
Other co-curricular opportunities included Model United Nations, the Duke of Edinburgh’s Award Scheme, book clubs, LGBTQ club and Young Enterprise.
## **Pastoral**
The dominant feature of Pastoral care for 2020/21 has been managing the impact of lockdown on our students. Whereas the school did take measures to support students with their mental health during this difficult time, the implications of being isolated at home and then stuck in a bubble, in one classroom in school has been immense. We know that humans have an emotional need to affiliate with and be accepted by members of a group. It was very difficult in the isolation of lockdown to meet this need. A sense of belonging involves more than simply being acquainted with other people - it is centred on acceptance, attention and support from the group as well as providing the same attention to others too. The natural development of cultivating positive group dynamics is a drawn-out process, which was interrupted during this time. When restrictions were lifted there was then a rush to be socially accepted. This can mean that some individuals run the risk of losing their own identity, while they conform to what they perceive are accepted views, in an effort to re-establish belongingness. At the School we actively encourage our students to be free thinkers – to be true to themselves – to have the confidence to act on their own instinct. Installing these values again after lockdown has been a big feature of the pastoral care in 2020-21.
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
## **Bursary and Scholarship awards**
The number of pupils receiving financial assistance from means tested bursaries is 82 pupils in total, of whom 39 pupils benefitted from a full remission of fees. In 2020/21 the annual financial commitment to means tested bursaries amounted to £858,279 being 9.5% of our gross senior school tuition fees. Of this amount £29,186 was gratefully received from other Educational Trusts, whilst the majority was provided by the School and its own charitable trust. A hardship fund is also available to help pupils in receipt of bursaries meet the costs of school trips, examination entrance fees and similar expenses. In the year costs of £61,569 were met by the hardship fund.
In addition, the school awarded scholarships to 116 pupils, based on their educational merit and potential, totalling £187,433 and representing 2.1% of our gross senior school tuition fees. Of this number, 5 also qualified for means-tested bursary support and are included in the figures relating to bursary awards.
## **Use of facilities**
Lettings included use of the sports hall and dance studio by various Manchester University clubs and societies, use of the all-weather hockey pitch by local hockey clubs, use of the swimming pool by local swimming schools and use of the main hall by a local church worship group. Lettings income was substantially affected this year by the closure restrictions and brought approximately 25% of our normal income level.
## **Fundraising & Marketing**
Fundraising and Marketing both involve the promotion of the School with the aim of ensuring that funding from donations and sponsorship are maximised as well as ensuring that sufficient suitably talented girls are enrolled. A proportion of funds raised for means tested bursaries are included within the accounts of the Manchester High School for Girls Charitable Trust **.**
During August 2020 to July 2021, the work of the Development focused on stewardship through moving our events to being virtual and a number of communications to alumnae following a period of quiet from the department due to Covid and furlough. Our online events were well received, and we will continue to offer this option through ‘hybrid’ events in most cases. A Feasibility study was commissioned to look at our fundraising potential for 2024 and our 150th anniversary with some fundraising actions to work on as we work towards this year.
Marketing focused on virtual open events, and latterly developing our social media and online marketing campaigns alongside new literature and promotional support, following a new strategic direction and logo, and a suite of films. Additionally, the Head Mistress wrote a number of articles to develop our national voice alongside articles for the regional and local press. A marketing strategy has been created to develop the marketing, admissions and fundraising at MHSG.
## **COVID-19 crisis and lockdown**
- a) Impact on the operation of the school
The COVID-19 crisis and lockdown resulted in the school premises having to close down from the 4th January to 8th March 2021. A small school for key workers children operated on site throughout the lockdown. Remote teaching, via Teams, was provided for all pupils so that the usual timetable could be followed. Upon the return to school on 8th March, testing for all returning senior school pupils was managed on site with subsequent twice-weekly testing completed at home. The School’s risk assessment ensured that the School sustained suitable precautions on site, including the wearing of face coverings, stringent cleaning, sanitising stations and staggered lunchtimes. Those pupils who tested positive for COVID-19, if sufficiently well, were able to attend their lessons from home.
During the closure period, savings were made on site costs including the running costs due to the closure. The School furloughed a small number of support staff and claimed the furlough grant available for them. The contract catering staff and some of the cleaning team were also furloughed and the contract costs reduced as a result.
The school’s trips were affected again this year with most being cancelled.
- b) Impact on developments
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## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Report of the Governors continued**
Following on from last year, when the School’s facilities development and refurbishment programme had to be put on hold due to the COVID-19 pandemic, the programme has started up again this year in a modest way. Most estates projects normally take place during the summer break. The largest project this year related to the continuing replacement programme of windows under the Buildings Efficiency Programme. The plan is to re-evaluate the maintenance estates plan and reschedule any works that were postponed as soon as possible. Essential health and safety and compliance work projects have continued to be completed.
## **FINANCIAL REVIEW AND RESULTS FOR THE YEAR**
## **Financial Review**
## **Financial Activities and Results**
The net movement in funds for the year amounted to incoming resources of £725,921 (2019/20: £496,845) of incoming resources). This was largely in line with the budgeted expectations.
The School is helped by the support of the connected charity, The Manchester High School for Girls General Charitable Trust, which provided £470,039 (2019/20: £410,721) in bursaries during the year.
The School hired out its facilities during vacations and after-school hours and this contributed £12,743 (2019-20: £40,854) to the School’s income.
The School’s principal funding source is from school fees, which amounted to £10,981,511 this year (2019/20: £10,429,273)
The expenditure which supported the key objectives of the School regarding the quality of staff, marketing the school, and development of school’s facilities is detailed on page 25, note 5.
## **RESPONSIBILITIES OF GOVERNORS**
The Governors (who are also directors for the purposes of company law) are responsible for preparing the Governors’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).
Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. 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.
12
MANCHESTER HIGH SCHOOL FOR GIRLS
Report of the Governors continued
Reserves
Ni)te% 15 t() 17 (if the findnLial %tstenient4 4hi)i¥% the &s4el% lidbililie4 attribuldble Ii) the V11}US fund% t>pe, al%ci de%Lrihe
the Ndriuu% re%lriLteLi fund% i)f the %Lhu()I dnLi 5U[niiiIV Ihe )'ear % tni)veiiienl% i)n eaLh fund.
Unrestricttd tunds amounted 10 £4.003.981 bui none ot Ihis is treely aaIlable because Ihe balance is ini'esied or is de5ignaied for
c)ther purtKise% l%ee ni)le% 15 dnd 171- The CJuwernc)rs hdNe detertnined thal Ihe dppri)priale Ite1 i)r rree reseri'e% whiLh iii)I
iiive5ted in tangiblt fixed assets should be equivalent to 10/0 of tuition tee incoine. being approxiinately £l.000.O(M). Our policv 15.
theretort, to continue building up r¢5erbes to tliai level by Ineans of annual OkratIng surpluses and judicious management ot our
iniLsimcni asscis. supplcmcntcd bs, gcncral-purposL appcals trom limc io iimc. Tangiblc tixcd asscis arc all hcld tor USL bv Ihe
Invtstmtnt Powers, Polity And Ptrform*nte
Th¢ ATticl¢s of Association place no Testrictions on the Governors p0erS of inve5trnent.
The schI.s Prize Funds are invesied in COIF Charii), Funds. The}, are promoted as responsible tunds Ihat consider the tconomic,
s(Kial and environrn¢ntal iinpacts of the coiiipanies in i¥hich th¢ tunds iiil'est. StKcificall}'y th¢} aTroid in&¢5tin¢nt in
arirameiits. gambling and tobacco.
STATEMENT OF DISCLOSURE OF INFORMATION TO AUDITORS
.1 he Cioi'emors w'ho were in office on the date of the approi'al of these fiiiancial statements have confirmed that as far as thev are
aii'are Ihere is no relebani audit intormarion ot'which ihe auditors are unai4'8re. Each ot'ihe Govemors has contirined Ihat ihtv hat
Lakcn all thL SILps Ihai Ihcy ought 10 havc takcn as Goi'LrnoTS in ordcr io make IhcmsLli'cs awarc ol'anv rclLvant inlormaiion and io
establish that the auditors are al4.are of that informatioii.
FIITIIRE PLANS
Mrs Jc)'s. as HLad Misircss, complLicd a rClLw ol. Ihc School's vision, mission. ialucs and 3->Lar Slraicgic objcciivcs and ihcsc
%'ere itni?leTnenled fri)In Sei?letnber 2020. LiTrnger-leriii fuLiire plan- wilh a fLU5 un builliings, reSOurLe LurriLulum rei'iews
i%'ill b¢ th¢ priorit>. during tli¢ 2021-2022 a¢adtnii¢ >¢ar.
Thc Coronalrus pandcmie will coniiniic 10 impaci thc Dration ot'ihc SLhool tor much 012021-2022, howcvcr. and managing this
ItllPaLt in %ULh d to en%ure the %afely and seLurity of nur pupil8 and taff hlIe Lolltinuing to provide a high qudlitv eduLatinii
for the pupils i¥ill coiitinue to be a clialleiige.
The LharItv, ()bjectiN'e% for the next Tr, Iheref()re. ..
To enslire ihe achiebement ot txcelleni resulis in GC'SE & A level examinaiions
To mdinldin high level% i)freLruittnent dnd Teienlii)n ofpiipil%
To matMgL tinancLS in siich a il'a! as io aLldrcss signific2i nt challLngcs
T() at lea%t %11slain bul ideall> rai%e the lel'el i)f hur %UPP()Tl t() pupil% oli a te%ted basi%
-1 o iinplenitni tlit School-s new values and 3-year siraiegic objtctives
To idLniifN lortgcr-lcrm siratcgic 0bjLCIiLs and draw up plans 10 achiLVL ihcm
'I"o mainiain a safe and healihv environment w'ithin the Sch[ estate tor pupils and staty
Appri)ved by the Bc)ard uf CK)verni)r% uf ManLheslei" High SLh()()I fi)r Girls 1)n 30th No¥ember 2021 signed ()n its hehalf b>.
Ciovernors..
pMfe%OT Ladv Rachel Davie% Canper OBE (Chairl
Merlyn Loivth¢T (Hon Tr¢asuTerl
## **Independent Auditors’ Report to the Members of Manchester High School for Girls For the Year Ended 31[st] July 2021**
## **Opinion**
We have audited the financial statements of Manchester High School for Girls (‘the charitable company’) for the year ended 31 July 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 July 2021 and of its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit
- the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
14
## **Independent Auditors’ Report to the Members of Manchester High School for Girls For the Year Ended 31[st] July 2021**
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees (who are also the directors of the charitable company for the purposes 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 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 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**
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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, Employment legislation and Health and Safety legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
15
## **Independent Auditors’ Report to the Members of Manchester High School for Girls For the Year Ended 31[st] July 2021**
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of other income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Vicky Szulist Senior Statutory Auditor
For and on behalf of Crowe U.K. LLP Statutory Auditor The Lexicon Mount Street Manchester M2 5NT
28th January 2021
16
## **MANCHESTER HIGH SCHOOL FOR GIRLS Statement of Financial Activities**
## **for the year ended 31st July 2021**
|**_Notes_**
**_Income_**
_Donations and legacies_
_Other trading activities_
_3_
_Investment income_
_Income from charitable_
_activities_
_2_
_Other_
_4_
**_Total income_**
**_Expenditure on_**
_Cost of raising funds_
_7_
_Expenditure on charitable_
_activities_
_5_
_Expenditure on other_
_trading and activities_
_6_
**_Total_**
**_Net income/_**
**_(expenditure) before gains_**
**_and losses on investments_**
_Net gains on investments_
**_Net income/_**
**_(expenditure)_**
**_Net movements in funds_**
**_Reconciliation of funds_**
_Total funds brought_
_forward_
_15,_
_16 &_
_17_
**_Total funds carried_**
**_forward_**|**_Total_**
**_Unrestricted_**
**_Funds_**
**_£_**
**_Unrestricted_**
**_Designated_**
**_Funds_**
**_£_**
**_Restricted_**
**_Funds_**
**_£_**
**_Endowment_**
**_Funds_**
**_£_**
**_2021_**
**_£_**
**_2020_**
**_£_**
_10,355_
_-_
_-_
_-_
_10,355_
_6,524_
_40,743_
_-_
_-_
_-_
_40,743_
_67,574_
_-_
_-_
_7,816_
_-_
_7,816_
_9,056_
_11,451,550_
_-_
_-_
_-_
_11,451,550_
_10,839,994_
_139,691_
_-_
_-_
_-_
_139,691_
_168,245_|
|---|---|
||**_11,642,339_**
**_-_**
**_7,816_**
**_-_**
**_11,650,155_**
**_11,091,393_**|
||_86,872_
_-_
_-_
_-_
_86,872_
_66,789_
_10,646,638_
_-_
_25,126_
_148,853_
_10,820,617_
_10,473,961_
_57,040_
_-_
_-_
_-_
_57,040_
_54,445_|
||**_10,790,550_**
**_-_**
**_25,126_**
**_148,853_**
**_10,964,529_**
**_10,595,195_**
**_851,789_**
**_-_**
**_(17,310)_**
**_(148,853)_**
**_685,626_**
**_496,198_**
_-_
_-_
_13,950_
_26,345_
_40,295_
_647_
**_851,789_**
**_-_**
**_(3,360)_**
**_(122,508)_**
**_725,921_**
**_496,845_**|
||**_851,789_**
**_-_**
**_(3,360)_**
**_(122,508)_**
**725,921**
**496,845**|
||_3,152,192_
_72,155_
_182,299_
_7,952,472_
_11,359,117_
_10,862,272_
**_4,003,981_**
**_72,155_**
**_178,939_**
**_7,829,964_**
**_12,085,038_**
**_11,359,117_**|
_All of the above activities are classified as continuing. The notes on pages 22 to 36 form part of these financial statement_
17
MANCHESTER HIGH SCHOOL FOR GIRLS
Balance Sheet #5 at 31st July 2021
CompatL}' No- 09665070
Notes
2021
2020
Fixed A55ets
Tangible fixed assets
Investments at tnarket value
9.860,007
286,682
10.146.689
10,324,580
246,387
10,570,967
10
Total fixed agsets
Current Assets
Debtors
12
270.291
3,612,018
3,882,309
483.885
2.379,623
2,863,508
Cash at bank and in hand
Total ¢urr¢nt assets
Liabilities
Creditors.. Amounts falling due within one year
13
(1.437.059)
(1,3.54.714)
Iyet eurrent assets
2.445,250
,508,794
Total assets less current liabilities
12591,938
12,079,761
Creditors.. Amounts fglling due after one year
14
(506,899)
(720,644)
Net Assets
12,085,039
11,359,117
The funds of the eh#rit
Unrestricted funds
4,003,981
72,155
178.939
3,152,191
72,155
182,299
7,952,472
Unrestricted designated funds
Restricted funds
15
Endowment funds
16
7,829,964
Total funds
12,085,039
11,3S9,117
Approved on behalf of Ihe Board of Govemors on 30 November 2021
Goveniors
Professor Lady Rachel Davies Cooper OBE
Chair
M Lowther
The notes on pages 22 to 36 fom) part of these financial statements.
18
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Cashflow Statement**
## **for the year ended 31st July 2021**
|**Notes**
**Cash flows from operating activities:**
Net cash provided by operating activities
a)
**_Cash flows from investing activities:_**
Purchase of property, plant and equipment
**Net cash provided by investing activities**
**_Cash flows from financing activities:_**
Dividends, interest and rents from investments
Repayments of borrowing
**Net cash used in financing activities**
**Change in cash and cash equivalents in the reporting period**
**Cash and cash equivalents at the beginning of the reporting period**
**_Cash and cash equivalents at the end of the reporting period_**
b)
**Notes on the Cashflow Statement**
**a) Reconciliation of changes in resources to net**
**cash inflow from operating activities**
Net income
Net gains from investments
Depreciation
Dividends, interest and rents from investments
Increase in debtors
Decrease in creditors
Net cash inflow from operating activities
**b) Analysis of changes in net funds**
Cash in hand
**Total cash and cash equivalents**|**2021**
**£**
1,620,552
(189,183)
**1,431,369**
7,816
(206,790)
**(198,974)**
**1,232,395**
**2,379,623**
**3,612,018**
**2021**
**£**
725,921
(40,295)
653,757
(7,816)
213,594
75,391
1,620,552
**2021**
**£**
3,612,018
3,612,018|**2020**
**£**
843,030
(127,152)|
|---|---|---|
|||**715,878**|
|||9,056
(200,418)|
|||**(191,362)**|
|||**524,516**
**1,855,107**
**2,379,623**
**2020**
**£**
496,845
(647)
676,247
(9,056)
(159,560)
(160,799)|
|**a)**
**b)**
|||
|||843,030|
|||**2020**
**£**
2,379,623
2,379,623|
The notes on pages 22 to 36 form part of these financial statements.
19
## **MANCHESTER HIGH SCHOOL FOR GIRLS Cashflow Statement cont …..**
## **for the year ended 31st July 2021**
## **c) Reconciliation of net debt**
|Cash in hand and at bank
Bank loan due in less than one year
Bank loan due in greater than one year|1 August
2020
£
2,379,623
(206,790)
(720,644)
1,452,189|Cashflow
£
1,232,395
(6,954)
213,744
1,439,185|31 July 2021
£
3,612,018
(213,744)
(506,900)
2,891,374|
|---|---|---|---|
20
**MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements**
## **for the year ended 31st July 2021**
## **1). Accounting Policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a) Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The school meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The financial statements have been prepared on an accruals basis and include income and expenditure as they are earned or incurred rather than on a cash basis.
## **b)**
## **Going Concern**
The governors have due regard for the going concern of the Charity. The school prepares a detailed budget for the 12 months ahead as well as more longer-term financial projections. Actual performance is monitored termly, and cash balances are monitored and reviewed daily.
At the time of approval of the financial statements, the COVID-19 pandemic situation continues to develop. Currently the expectation is that this situation has calmed down and that if there are any future outbreaks both the school and the country as a whole are now better prepared to deal with them. At this time, pupil numbers are very healthy, cash flow liquidity is extremely positive, and we are anticipating a healthy cash surplus for 2021-22. Supply chain issues are a problem currently and this may worsen with the main effects being on catering supplies and estates work related materials. However, these issues will continue to be managed within the school’s budgets and should not impact materially on its going concern.
The governors have undertaken planning and forecasting and continue to closely monitor the developing situation. Further details on the school’s response and plans for dealing with the continuing COVID-19 pandemic situation are documented in the Trustees Report. The governors believe that the school's financial resources and contingency planning is sufficient to ensure the ability of the school to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.
## **c) Fund Accounting**
The school’s unrestricted funds consist of funds which the school may use for its purpose at the Governors’ discretion. Certain unrestricted funds have been designated for specific purposes as explained in more detail in note 14.
The school has a number of endowment funds the income of which is used for restricted purposes.
## **d)**
## **Voluntary Income**
Donations under deeds of covenant, together with the associated income tax recovery, are recognised as income when the donation is received.
Legacies are included in income when it is reasonably certain they are to be received and their value can be measured with sufficient reliability.
Awards and grants receivable are credited to income in the school year to which they relate.
21
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
## **for the year ended 31st July 2021**
Donations for the purposes restricted by the wishes of the donor are taken to Restricted Funds where these wishes are legally binding on the Schools Governors, except that any amounts required to be retained as capital in accordance with the donors wishes are accounted for instead as Endowments- permanent or expendable according to the nature of the restriction.
## **e)**
## **Fixed Assets**
Fixed assets ate stated at cost (or deemed cost for land and buildings held at valuation at the date of transition to FRS102) less accumulated depreciation.
Depreciation is charged at the following rates:-
Buildings 30 - 100 years Fixtures Equipment and Fittings 3 - 20 years Plant and Facilities 4 - 20 years
Capital items greater than £2,000 are included in fixed asset additions
## **f)**
## **Current Asset Investment**
Current asset investments are valued at the lower of cost and net realisable value.
## **g) Debtors**
Tuition fee debtors and other debtors are recognised at the settlement amount due.
## **h) Creditors and provisions**
Creditors and provisions are recognised where the school has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **i)**
## **Investment Income**
Dividends are credited to the income and expenditure account when they are receivable. Credit is taken for interest in the school year to which it relates.
## **j) Fee Income**
Fee income is credited to the income and expenditure account in the school year to which it relates.
## **k) Allocation of costs**
Whenever possible expenditure is allocated to an activity cost category. Where items of expenditure contribute directly to more than one activity cost, they are apportioned on a reasonable, justifiable and consistent basis.
Support costs are also, wherever possible, attributed to a single activity but where apportionment is required this is done on a reasonable, justifiable and consistent basis.
Governance costs comprise the costs of running the school, including strategic planning for its future development, external audit, any legal advice for the Schools Governors, and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability _._
22
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
## **for the year ended 31st July 2021**
## **l) Commitments**
All expenditure incurred at 31[st] July 2021 has been provided for as detailed in notes 12 and 13.
## **m)**
## **Pension Schemes**
Retirement benefits to employees of Manchester High School for Girls are provided by the Teachers’ Pension Scheme (‘TPS’) and the Scottish Widows schemes for those staff not covered by the Teachers’ Pension Scheme.
Scottish Widows is a defined contribution scheme and contributions are charged to the statement of financial activities in the year to which they relate.
Teachers’ Pension Scheme (England and Wales)
The TPS is an unfunded defined benefit scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the school in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. The TPS is a multi-employer scheme and the school is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.
## **n)**
## **Fixed Asset Investments**
Investments held as fixed assets are stated at market value at the balance sheet date.
## **o) Fundraising and Marketing**
The school operates a Development Department that is responsible for both Fundraising and Marketing. The expenditure is detailed in notes 4 and 6 below.
## **p) Financial Instruments**
Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
23
**MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
## **for the year ended 31st July 2021**
Financial assets and liabilities are offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
## **q) Critical accounting judgments and key sources of estimation uncertainty**
In the application of the accounting policies, Governors are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.
In the view of the Governors, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
## **2) Incoming resources from charitable activity**
Incoming resources from charitable activity comprises mainly fee income. Fee income includes £470,039 (2020 £410,722) from The Manchester High School for Girls General Charitable Trust.
|**School fees**
The school’s fee income comprised:
Gross fees
Less: Total bursaries, grants and allowances
Add:
Bursaries and scholarships paid for by Restricted Funds
School fees|**Total**
**2021**
Total
2020
**£**
£
**12,606,422**
12,358,523
**(1,154,872)**
(1,518,529)|
|---|---|
||**11,451,550**
10,839,994
**-**
-|
||**11,451,550**
10,839,994|
Bursary and scholarship awards were made to 198 individuals (2020: 191 individuals). Total bursaries, grants and allowances includes means tested bursaries, scholarships, staff discounts and parental discounts. In 2019-20 a 10% discount was applied to the summer term tuition fees for all parents which cost £339,949 (2020-21: £nil).
24
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
## **for the year ended 31st July 2021**
## **3) Other trading activities**
|Admission fees
Letting income|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**2021**
Total
2020
**£**
**£**
**£**
£
**28,000**
**-**
**28,000**
26,720
**12,743**
**-**
**12,743**
40,854|
|---|---|
||**40,743**
**-**
**40,743**
67,574|
## **4) Other incoming resources**
|Furlough grants
Other income|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**2021**
Total
2020
**£**
**£**
**£**
£
**88,346**
**-**
**88,346**
151,625
**51,345**
**-**
**51,345**
16,620|
|---|---|
||**139,691**
**-**
**139,691**
168,245|
## **5) Analysis of expenditure**
|**Costs of generating funds**
Ancillary trading costs
Raising funds
Total cost of generating
funds
**Charitable expenditure**
**Education and grant making**
Teaching
Welfare
Premises
Support costs
**Total charitable expenditure**
**Total expended**|**Staff**
**costs**
**Depreciation**
**Other**
**costs**
**Grant**
**funding**
**Total**
**2021**
**£**
**£**
**£**
**£**
**£**
**19,170**
**10,779**
**27,090**
**-**
**57,040**
**41,957**
**-**
**44,916**
**-**
**86,872**|
|---|---|
||**61,127**
**10,779**
**72,006**
**-**
**143,912**|
||**6,203,585**
**-**
**-**
**-**
**6,203,585**
**56,598**
**10,593**
**558,789**
**-**
**625,979**
**203,101**
**518,156**
**939,781**
**-**
**1,661,039**
**658,619**
**114,229**
**721,803**
**835,363**
**2,330,013**|
||**7,121,903**
**642,978**
**2,220,373**
**835,363**
**10,820,617**|
||**7,183,030**
**653,757**
**2,292,379**
**835,363**
**10,964,529**|
25
**MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
## **for the year ended 31st July 2021**
## **6) Other trading activities**
This expenditure related mainly to the letting of the school facilities to local groups outside school hours.
|**7)**|Welfare Costs
Property Costs
Management and Administration
**Raising funds**
Development Office Salaries
Development Office Expenses
Fundraising
Alumni Relationship Expenses|**2021**
**£**
837
38,774
17,429
57,040
**2021**
**£**
41,957
3,257
38,363
3,295
86,872|**2020**
**£**
873
36,613
16,959
54,445
**2020**
**£**
35,835
2,506
26,838
1,610
66,789|
|---|---|---|---|
Fundraising costs support initiatives to raise funds for both the school and the connected charity The Manchester High School (MHSG Bursary Fund). The funds raised in 2020/21 were £10,355 (2019/20 - £6,523) for the school and £617,486 (2019/20 - £202,488) for the MHSG Bursary Fund. As detailed in the trustees report the MHSG Bursary Fund makes annual bursary grants to the school.
## **8) Staff Costs**
|Wages and salaries
Social security costs
Contributions to Teachers’ Superannuation Scheme
Contributions to Defined Contribution Scheme|**2021**
**£**
5,434,418
544,498
943,018
122,991
7,044,925|**2020**
**£**
5,277,152
531,116
914,570
119,532
6,842,370|
|---|---|---|
The number of employees with total remuneration in excess of £60,000 per annum are analysed below:
|£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
£150,000 - £159,999|1
3
3
1
1
1
1
-
-
1
6
6|
|---|---|
26
**MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
## **for the year ended 31st July 2021**
## **8) Staff Costs (continued)**
The key management personnel of the school comprise the Governors and the Senior Management Team listed on Page 1. The total amount of employee benefits (including employer pension contributions) received by the key personnel for their services to the school is £623,869 (2020 £722,214). There was a settlement payment in the year of £3,774.
The school contributes to a defined benefit pension scheme for 7 (2019/20: 6) and a defined contribution scheme for 3 (2019/20: 2) of the key management personnel.
Pension contributions were made to the Teachers’ Pension Scheme which is a defined benefit scheme for 7 key personnel at a cost of £95,020. Pension contributions were made to Scottish Widows for 3 key personnel at a cost of £11,296.
The average number of people employed by the school (both full time and part time) was as follows:
|Fundraising
Teaching
Welfare
Premises
Support
Management & Administration|**2021**
3
98
3
8
47
10
169|**2020**
3
99
3
8
47
10
170|
|---|---|---|
## **9) Tangible Fixed Assets**
|Cost/Valuation
Balance as at 31st July 2020
Additions
Disposals
Balance as at 31stJuly 2021
Accumulated Depreciation
Balance as at 31st July 2020
Charge for the year
Depreciation on disposals
Balance as at 31st July 2021
Net book value as at 31stJuly
2020
Net book value as at 31stJuly
2021|**Freehold**
**Land &**
**Buildings**
**Fixtures**
**Equipment &**
**Fittings**
**Plant &**
**Facilities**
**Vehicles**
**Total**
**£**
**£**
**£**
**£**
**£**
10,453,654
7,094,692
2,489,692
44,392
20,082,430
-
179,862
9,321
-
189,183
-
-
-
-
-|
|---|---|
||10,453,654
7,274,554
2,499,013
44,392
20,271,613|
||2,662,768
5,292,366
1,758,324
44,392
9,757,850
148,853
365,881
139,024
-
653,757
-
-
-
-
-|
||2,811,621
5,658,247
1,897,348
44,392
10,411,607|
||7,790,886
1,802,326
731,368
-
10,324,580|
||7,642,034
1,616,307
601,666
-
9,860,007|
27
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
## **for the year ended 31st July 2021**
## **9) Tangible Fixed Assets (continued)**
All fixed assets are used directly for charitable purposes.
The land and buildings were held at a valuation until transition to FRS102 when the value of the land and buildings was taken as deemed cost.
## **10) Fixed Asset Investments**
|Cost at 31stJuly 2020
Additions
Disposals
Cost at 31stJuly 2021
Market value at 1stAugust 2020
Additions at cost
Disposal at cost
Unrealised (loss)/gain
Market value at 31stJuly 2021|**2021**
£
60,501
-
-
60,501
246,387
-
-
40,295
286,682|**2020**
£
60,501
-
-|
|---|---|---|
|||60,501|
|||245,740
-
-
647
246,387|
Investments held in fixed asset investments are as follows:-
COIF Charities Investment Funds amount to £286,682 (2019/20: £246,387).
## **11) Disbursements**
During the year staff and pupils of the school organised a number of educational visits and other extra-curricular activities. These activities generated receipts of £97,149 (2019/20 - £216,929) which have subsequently been disbursed on those activities and have not been recognised in the statement of financial activities as the Governors consider that the school has acted in the capacity of an agent and that these receipts are therefore not available for the school’s objects.
At 31st July 2021 £37,100 (2020 £64,886) was included in debtors for expenses met by the School for activities where monies had not yet been collected and £105,170 (2020 £99,045) was included in creditors for monies collected in advance of activities taking place.
28
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
**for the year ended 31st July 2021**
## **12) Debtors**
|Tuition fees
Prepayments and Accrued Income
Disbursements (note 11)
Other debtors
MHSG Bursary Fund
**13)**
**Creditors– Amounts Falling Due Within One Year**
Trade creditors
Accruals and Deferred Income
PAYE and national insurance
Superannuation
Fees in advance
Disbursements (note 11)
MHSG Bursary Fund
Other creditors
Bank Loan
Deposits held|**2021**
**£**
90,316
105,270
37,100
-
37,605
270,291
**2021**
**£**
132,598
129,394
132,699
111,479
136,406
105,170
-
-
213,744
475,569
1,437,059|**2020**
**£**
195,928
104,590
64,886
118,481
-
483,885
**2020**
**£**
102,262
83,857
123,177
109,086
80,688
99,045
921
81,480
206,790
467,408|
|---|---|---|
|||1,354,714|
29
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
**for the year ended 31st July 2021**
## **14) Creditors – Amounts Falling Due After One Year**
|Bank Loan|**2021**
**£**
506,899
506,899|**2020**
**£**
720,644
720,644|
|---|---|---|
The bank loan is unsecured with a negative pledge.
## **15) Unrestricted Designated Funds**
|School society funds
School society funds|**Balance at**
**31st July 2020**
**£**
**Income**
**£**
**Expenditure**
**£**
**Balance at**
**31st July 2021**
**£**
72,155
-
-
72,155|
|---|---|
||**Balance at**
**31st July 2019**
**£**
**Income**
**£**
**Expenditure**
**£**
**Balance at**
**31st July 2020**
**£**
69,627
2,650
(122)
72,155|
## **16) Restricted & Endowment Funds**
The capital element of the Prize Funds generates income which is restricted. This is shown below in the restricted fund described as Prizes and awards.
The restricted income generated from the Prize Fund investments is utilised for prizes and awards made to pupils for academic achievement or to assist in their studies.
The movement in the Prize Funds endowed reflects the change in market value of the investments.
The school has also received restricted funds which are utilised to award scholarships.
The Land and Buildings from which the school operates are permanently endowed.
30
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
**for the year ended 31st July 2021**
## **16) Restricted & Endowment Funds (continued)**
**----- Start of picture text -----**
Restricted Funds
Unrealised
Balance at Transfer gains on Balance at
31 [st] July 2020 Income Expenditure of funds Investments 31 [st] July 2021
£ £ £ £ £ £
Prizes and awards 146,913 7,816 (1,940) - 13,950 166,739
Scholarship Fund 35,386 - (23,186) - - 12,200
Total 182,299 7,816 (25,126) - 13,950 178,939
Unrealised
Balance at Transfer gains on Balance at
31 [st] July 2019 Income Expenditure of funds Investments 31 [st] July 2020
£ £ £ £ £ £
Prizes and awards 140,791 7,868 (1,970) - 224 146,913
Scholarship Fund 59,117 - (23,731) - - 35,386
Total 199,908 7,868 (25,701) - 224 182,299
Endowment Funds
Unrealised
Balance at Transfer gains on Balance at
31 [st] July 2020 Income Expenditure of funds Investments 31 [st] July 2021
Prize funds 161,586 - - - 26,344 187,930
Land & Buildings 7,790,886 - (148,853) - - 7,642,034
Total 7,952,472 - (148,853) - 26,344 7,829,964
Unrealised
Balance at Transfer gains on Balance at
31 [st] July 2019 Income Expenditure of funds Investments 31 [st] July 2020
Prize funds 161,163 - - - 423 161,586
Land & Buildings 7,939,737 - (148,851) - - 7,790,886
Total 8,100,900 - (148,851) - 423 7,952,472
**----- End of picture text -----**
31
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
**for the year ended 31st July 2021**
## **17) Analysis of Net Assets Between Funds**
|**As at 31st July 2021**
Tangible fixed assets
Fixed asset investments
Net current assets less long term
Liabilities
**As at 31st July 2020**
Tangible fixed assets
Fixed asset investments
Net current assets less long term
Liabilities|**Unrestricted**
**Funds**
**Unrestricted**
**Designated**
**Funds**
**Restricted**
**Funds**
**Endowment**
**Total**
£
£
£
£
£
2,217,973
-
-
7,642,034
9,860,007
-
-
98,752
187,930
286,682
1,786,008
72,155
80,187
-
1,938,350
4,003,981
72,155
178,939
7,829,964
12,085,039|
|---|---|
||**Unrestricted**
**Funds**
**Unrestricted**
**Designated**
**Funds**
**Restricted**
**Funds**
**Endowment**
**Total**
£
£
£
£
£
2,533,694
-
-
7,790,886
10,324,580
-
-
84,801
161,586
246,387
618,497
72,155
97,498
-
788,150
3,152,191
72,155
182,299
7,952,472
11,359,117|
32
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
## **for the year ended 31st July 2021**
## **18) Related Party Transactions**
During the year under review the following transactions took place between Manchester High School for Girls and The Manchester High School for Girls Charitable Trust (MHSG Bursary Fund), which is a connected charity.
The school received £470,039 (2019/20 £410,721) in a bursary grant during the year from The Manchester High School for Girls Charitable Trust.
A donation of £421,997 (2019/20 £174,126) was paid to The Manchester High School for Girls Charitable Trust to augment their resources.
At the year-end The Manchester High School for Girls Charitable Trust owed the School £37,065 (2020: owed by the School £921).
Laura Earnshaw is the founder of myHappymind and a Governor. myHappymind provides this educational curriculum to MHSG for free.
F Smyth, A Bland, V Kloss, L Earnshaw, M Khan, T Lloyd-Tyrrell and M Yasin have pupils at the school and all pay school fees at a non-discounted rate.
## **19) Legal states of the school**
At 31[st] July 2021 the school operates through a Charitable Company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
## **20) Pension and similar obligations**
The school’s current employees belong to two principal pension schemes:
- the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff;
- Scottish Widows for those staff not covered by the TPS;
## **Teachers’ Pension Scheme**
## **Introduction**
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2014). Membership is automatic for full-time teachers and, from 1 January 2007, automatic for teachers in parttime employment following appointment or a change of contract, although they are able to opt out.
The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
33
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
**for the year ended 31st July 2021**
## **20) Pension and similar obligations (continued)**
## **Pension Scheme**
The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £943,018 (2020: £914,570) and at the year-end £110,597 (2020 - £108,214) was accrued in respect of contributions to this scheme.
The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.
The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.
On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.
The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following the public consultation, the Government have accepted three key proposals recommended by the Government Actuary and are aiming to implement these changes in time for the 2020 valuation.
In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.
Until the cost cap mechanism review is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.
34
## **MANCHESTER HIGH SCHOOL FOR GIRLS**
## **Notes on and forming part of the Financial Statements cont….**
**for the year ended 31st July 2021**
## **20) Pension and similar obligations (continued)**
## **Scottish Widows – MHSG Support Staff Scheme**
The MHSG Support Staff Scheme is a defined contributions scheme. Contributions made into this scheme are paid by the school at rates specified in the scheme rules. The assets of the scheme are held separately from those of the school in an independently administered fund and are charged to the statement of financial activities in the year to which they relate.
The school paid contributions at the rate of 10% during the accounting period. Members paid contributions at the rate of 5% during the accounting period.
As at the balance sheet date there were 51 active members of the Plan employed by the school. The school continues to offer membership of the Plan to its employees.
Contributions amounting to £122,991 (2019-20: £119,532) were payable by the school during the year and have been recognised in the statement of financial activities. As at the balance sheet date contributions of £17,824 (2019-20: £14,014) had not been paid over to the fund and are included within creditors.
35