Company registration number.. 11751009 Charity regIStratn number.. 1184700 Downside School IA company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 January 2021 ABHf8G35 2W11n022 COMPANIES HOUSE
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Downside School Contents Reference and Administrative Details Ito2 Governors, Report 3to9 Strategic Report IOto15 Statement of Governors, Responsibilities 16 Independent Auditors, Report 17to21 Statement of Financial Activities 22to23 Balance Sheet 24 Statement of Cash Flows 25to26 Notes to the Financial Statements '27to46
Downside School Reference and Adminlstratlve Detalls Govemors lalso members) M F T Bernard (Chair from 29 April 2022) S# J M Ludlow (Deputy chairl S#+ Very Rev Dom N P Wets # C M Hughes O.B.E # H A H Dickinson # ACMartinS TJ Wilcox If ACGGriffinS J M TOBilvy-Siuart # A 8arrett # R Jenkins S A Lynch # A J F Aylward (Resigned l April 20201 Dr R G G Mercer (Resigned 31 March 20221 J A Scott-Gatty (Resigned l April 20221 S Member of general.finance and resources committee
Member of education committee
- Responsibility for health and Safety Responsibility for safeguardin8 Page I
Downside Sthool Reference and Administrative Details Clerk to the Governors V Locke lappointed 6 November 20201 A Maddalena (resigned l December 20201 11847iX> Charity Registration Number Company Registration Number 11751(M]9 Re8lstered Office Stratton-on-the-Fosse Radstock Somerset BA3 4FU Head A Hobbs Auditors Crowe U.K. LLP 4th Floor. St. Jarnes, House St. James, Square Cheltenham G150 3PR Bankers . Barclays Bank PLC 4 Queen Street Bath BAI IHE Solicitors: Stone King 13 Queens Square Bath BAI 2HJ Page 2
Downside School Governors. Report The Governors of Downside School. who are also the Directors of the school for the purposes of the Companies Act and Trustees for the purposes of the Charities Act (but herein after are refered to as Governors). present their annual report and the audited financial statements for the year ended 31 January 2021. The annual report serves the purpose of both a Trustees Report and a Directors Report under company law. The financial statements comply with the Charities Act 2011. the Charities Statement of Recommended Practice Isecond edition) and the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland {FRS 102). Reference and Administrative Details Downside School separated from Downside Abbey General Trust which owned and ran Downside School on 11 September 2019 and formed its own Company limited by 8uarantee. registered number 11751009. The School is also a Charity. registered number 1184700. The Governors. executive officers and principal addyess of Downside School are listed on pa8e I tO8ether with the particulars of the Charitys professional advisors. Strurture, governante and management Noture of governing do¢ument The Charity is governed by its Memorandum and Articles of Association as amended on.2.2 July 2019. The Governors who held office durin8 the period are shown on page l. The structtjre of the Charity consists of one Governing Body of not more than twelve Governors for Downside School. Pa8e 3
Downside School Governor5. Report Recruitment ond appointment OA Governor5 The Board of Governors shall include the Abbot of Downside Abbey lor an individual appointed by the Abbot), one Governor appointed by the Bishop of the Roman Catholic diocese in which any school operated by the Charity is located and a minimum of six other Governors. The total number of Governors shall not exceed twelve. New Governors are appointed by ordinary resolution of the Governors and eligibility is subject to personal competence. specialist skills and availability. New Governors are inducted into the working of the Charity and the management of the school, including its policies and procedures. at training meetings organised for them by the Chaiman. the Head and the Clerk to the Governors. Governors. training needs are assessed on an individual. .basis and training 15 given a5 appropriate. Recent training included attending an in-house session on Child Protection and Safeguardin& All Governors are required to and have undertaken a Safe8uardin8 on line training course supplied by Educare. Regular guidance notes and information from AG815 is received by the Clerk and forwarded to all Governors. Senior personnel are recruited on the basis of national advertisement and selection by Governors and other senior personnel. The Governors. Finance and Resources Committee consider5 the remuneration of senior personnel where appropriate at their summer term meeting. Consideration is given lo benchmarkin& in particular the A550ciation of Governing Bodies if Independent Schools {AG8151 Survey on Heads and Bursars Remuneration, market information and tirne in their position. Governors will also consider perfomance against objectives. Organi5ationol Structure The Governors are legally responsible for the overall management and control of Downside School and meet, either in person or virtually. at least three times a year. There are two sub-committee5: during the year to 31 January 2021- the Education Committee was chaired by Catherine Hughes and the General Finance and Resources Committee wa5 chaired by James Scott-Gatty. Both committees meet regularly to consider their specific issues prior to presenting their recommendations or proposals to the full Board. The General Finance and . Resources Committee is responsible for considering 8usiness Risk throughout the. year and reporting on this issue to the full Board during the summer term. The members of each sub-committee are listed on pa8e l. In addition. there are two Governors with specific responsibilities for Health and Safety and Safeguarding. During the year to 31 January 2021 these were John Ludlow and Terri Wilcox respectively. The day to day running of the School is delegated to the Head. supported in this by the Senior Leadership Team of the School. This comprises the Director of Operations. the Director of Finance and the Deputy Head. Relevant members of the Leadership Team attend the Governors. sub-committee and full Board meetings. Page 4
Downside khool Governors, Rewt Governors. indemnities As permitted by the Articles of Association. the Governors have the benefit of an indemnity which is a qualifyin8 third-party indemnity provision as defined by Section 234 of the Companies Att 2006. The indemnity was in force throughout the financial period and remains in force in the current year. The Company also purchased and maintained throughout the financial period Governors, and Officers. liability insurance in respect of itself and its Governors. Mojor risks and management of those risks The major risks to which the School is exposed. as identified by the Governors, have been reviewed and systems have been established to mitigate those risks. The following are the principal risks and uncertainties facing the school: • linpa¢t on reputation of event, fraud, accident, media coverage etc.. Maintenance in pupil numbef5 afferting liquidity and cash flows- • Maintenance of effective senior leadership. The followin8 is a summary of the School's plans and strategies for managing those risk5- • Compliance with re8ulatory requirement5,' ongoing self-evaluation of teachin8, curriculum etc.. SWOT analysi5- regular review of Disaster Recovery Plan: compliance with Child Protection policies and procedure5: Governor oversight.. Regular Governor self-evaluation: regular Governor training: regular Governor and sub-committee Meetings,. The school operates an effective marketing Strate to maintainlincrease pupil numbers. Group structure and relationships Downside School actively supports the attainment of the highest standard5 in the Independent Schools sector. To thi5 end. it artively networks with other leading schools and participates in peer group studies for ihe evaluation of quality and performance improvement methods. The School also cooperates with many local charities in an ongoing endeavours to widen public access to the schooling that it can provide. to optimise the educational use of its cultural and sporting facilities and to awaken in its pupils, in the public interest. an awareness of the social context of the all-round education they receive at the School. Downside School also benefits from the 8enefOSity of past pupils through the St. Gregory's Society and from parents andothers through the Downside Association. Page S
DnSIde School Govemors, Report The Chartty has a wholly owned non-charitable 5ubsidi3ry, Downside School Enterprises Limited. which principally operates a school shop and also generates income for the School through the lettin8 of its facilities during school holidays. The School maintains a close relationship with Downside Abbey General Trust with whom they share part of the site and some of the site's facilities and resources. The legal governance arrangements between the School and Downside Abbey General Trust include appropriate robust provisions for pupil safeguarding. Objects, aims, objertives and artivities clrItable objert5 The School's charitable objerts are- l. To advance Roman Catholic education in the Benedictine tradition and the Roman Catholic faith in particular. but without prejudice to the 8enerality of the foregoin& by runnin8 a school known as Downside School: 2. To advance education by providing facilities for the education and training of chlldren and young people provided that such provision shall be ancillary or incidental only to the running of a school know as Downside School in accordance with the above. 3. To support the work of the Downside Abbey General Trust. Public benefit aims and intended import The Trustees have regord to the Charity Commission's guidance on public benefit. To achieve these objects. the public benefrt aim is to provide a Catholic and Benedictine education focused on the formation of young people to enable them to reali5e their potential as contributors to society. Downside focuses on academic excellence and aims to develop the character of its pupils, emphasising the importance of moral courage, integrity and service to others. The School also fosters the hiEhe5t standards in sport, both in performance and sportsmanship, and in the arts has a tradition of inspired theatrical productions. The school endeavours. in addition, to give children an appreciation of 'the poetry of life,, a sense of its beauty, form. mystery and joy. The School contributes to the Camino Partnership of Catholic Schools in the southern part of ' the Diocese of Clifton to prornote Catholic education."The partnership provides a network of support to fellow schools and 5hare5 expertise from Chaplaincy and the teaching of religious studies to Heads and Governors of schools. The partnership involves both primary and secondary schools from the maintained and independent sector. Page 6
Downside School Governors, Report The School regularly hosts events for local primary schools. including modern language days. choral singing day5, 5POrting event5 and 'Race for the Line. events. Pupi15 and staff support the learning of Spanish in a local primary school. Pupils participate in a number of Community service activities. including a soup run in Bath and visiting local home5 for the elderly. primary schools and other social institutions. They also raise funds for a number of different charitable organisations. including Mary's Meals. and CAFOD. Pupils take part in an annual overnight sleep out in 5UPPQrt of charitie5 supporting the homeless. The School has implemented a number of environmentally conscious waste disposal and recycling schemes, reflecting its commitment to green issues and to encourage a socially conscious Outlook amongst its pupil body. The School's outreach work has included its specialistsports staff coaching. refereeing and umpiring at a number of Prep Schools and also workin8 Wlth local primary schools. The khool has forged a strong relationship with Bath Rugby, and on occaslons hosts the Bath Development Player Prograrnme where the School regularly hosts 40-50 boys at under aged 14 and below. Downside is the satellite coaching hub for Somerset Cricket Board in the North of the ounty, seeing hundreds of talented players Igif Is and boys) visit Downside for training. We also host County Age Group fixtures at junior level. Objertives for the year The Charity's objertive5 for the year were to continue to embed the educational offering which commenced in September 2019. The separation from Downside Abbey General Trust required new strurture5 to be implemented and facilities resourced. The new vision statement is 't)ownside's vision. as a Catholic and Benedictine school with Christ at its centre. is to be a bright light in education and to inspire service in our world. The School a150 reviewed and amended its mission"statement to read: 'We will renew and strengthen our root5 as a Catholic community, building relationships internationally, to become a school. which serves our world through its formation and education of young people, with the resources to meet our charitable objectives sustainably. Under this mission statement lie four key principle5 that seek to cover all areas of school life.. Page 7
Downside School Governors. Report We see it as our purpose to awaken and nurture a lifelon8 commitment to learning and growing Iconversatio morum - Rljle of St. Benedictl.. The relationship between the family and the sch(1 is one of dedicated and accountable partners- We challenge the transactional and utilit3rian view of education- Specific and mea5ur3ble outcomes need to be used as important indicators of how well the partnership is working. The guiding policy for our principles is the parable of the talents which will be our model for gauging performance and the parables of the lost sheep and the prodigal son will provide our pattern for pastoral care. The key strategies are.. We will invest in building a strong faith based culture that challenges our pupils to make their unique contribution. with the help of all in the Downside community- We will establish a programme of staff retreats to underpin the Catholic and Benedictine culture of the School,. We will embed the Relationship and Sex Education {RSEI programme 50 that respect will be at the heart of every relationship in our community- We will value and celebrate pupil engagement and achievemefit, recognising the unique contribution of each individual in accordance with their talents: Working with the wider Downside Community. we will establish a funding stream which provides one fully 5ubsidised place for an academic scholai in each year group by 2026: We will ensure that the School is successfully funded to continue rts work. Prlndpal activltie5 for the year The School had no fundraising activities requiring disclosure under 5162A of the Charities Act. Page 8
Downside Sthool Governors. Report Fee remission policy During the year the value of scholarships, grants. prizes and bursaries made to the School's pupils out of unrestricted funds totalled £2,791.485 12020 - £908,218). Of this, £502,662 12020- £296.4031 being 5.1% of fee income.12020- 7.3%) was awarded in Scholarships and £2,288,823 {2020 - £611.8151 being 23.3% of fee income 12020 - 15.0%). in bursaries and discounts. All bursarie5 are means-tested according to the school'5 poliry and criteria. The remainder of the funds cover fees to overseas and British Agents, standardised discounts to members of the armed forces, members of staff and siblings of current pupils. The School does not benefit from any endowments to fund scholarships. The policy of the Governors is to make awards on the basis of the individual's educational, musical. artistic or sporting potential, or to relieve hardship where the pupil's education and further prospects would otherwise be at risk. Details of such award5 for fee-assistance. to8ether with the terms and conditions for each kind of award, are available from the Bursary. Details of the Reserves Policy. plans for future periods and financial risk management are included within the Strategic Report. Disclosure of Information to auditor Each Governor has taken steps that they ought to have taken as a Governor in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The Governors confirm that there is no relevant information that they know of and of which they knowthe audttor is unaware. The annual report was approved by the Governors of the charity on 2511112022 and signed on its behalf bv- M F T Bernard Governor Page 9
Downside Sthool Strategic Report for the Year Ended 31 January 2021 Achievements and performance The School had no fundraising activities requiring disc105ure under $162A of the Charities Art. Whole school The arrival of the Coronavirus during this year treated an unprecedented challenge for the School bringing a premature ending to the Lent term as the country went into lockdown. Thi5 required the education to move online and to reimagine how to maintain the broader life beyond the curriculum. As a Catholic and Benedictine school, the spiritual life of the community is fundamental to its culture and although pupils and staff were not together in person, School and House assemblies, hymn practices and lectio divina continued and provided confidence and stability. The School'5 Online provision was extremely well received by pupils and parents. Despite the thallenge of online and blended learning, the pupils of all abilities continued to achieve extremely well academically. with considerable achievement above baseline for all and excellenl performance by the most able. The Centre Assessed Grades in both A level 154.1 % A'IA and 81.2% A'_B} and GCSE155.9% 9-7 and 88.3% 9-51 in the Summer of 2020 showed that Downside pupi15 Once again perforrned exceptionally. Music and drama are an essential aspect of building confidence and provide pupils with a superb opportunity to work collaboratively. The School musital for the year 'Our House. was a highlight in the Lent term in February. Many pupils have LAMDA lesson5 for speech and drama. Music is a central aspect of school life. There are three Chamber Choirs at Downside= a boys. choir. a girls. choir and a mixed choir. They specialise in a cappella performances, sacred and secular. and rehearse weekly. Membership is by invitation. The Chamber Choirs sing Mass on some Sundays and are much in demand for concerts. When the pupils were absent from school during lockdown there were online collaborations and recording5. Orchestral. band and chamber music also flourish at Downside. with frequent concerts and weekly recitals. The Combined Cadet Forde ICCFI and Pipe Bands are also in demand. The CCF band plays for the annual CCF inspection. and accompanies the Remembrance Day service. Both bands regularly perform at School concerts and parades. as well as at private functions. We also have Jazz. Rock and Concert Bands. a Saxophone Group and a Drum Line, amongst others. The CCF band has led the Remembrance Parade in Bath for a number of years and the Pipe Band plays annually at.the Stratton-on-the-Fosse Village Day in September. As Wlth singing the orchestral and band music was limited by the restrictions caused by the pandemic. Pège 10
Downside Sthool Strateglc Report for the Year Ended 31 January 2021 In Art. pupils are encouraged to explore as many styles and media as Possible. With an Artist-in-Residence. and regular visits to exhibitions. galleries and museums, pupils are provided with lots of inspiration. In Desi8n and Technology pupils combine practical and technological skills with creative thinking to design and rnake products and system5 that rneet hurnan needs. They learn to use current technologies and consider the impact of future technological developments. They learn to think creatively and intervene to improve the quality of life, solving problems as individuals and members of a team. Through Downside's Combined Cadet Force. pupils throughout the School are able to take part in a broad range of challengin& exciting and adventurous activities. All Third Form laged 13+1 pupils are able to experience the full range of CCF activity during the academic year. Ai the end of the Third Form. pupils can elect to move onto the Royal Navy. of Armv. section in their senior years at Downside. One full afternoon per week is allocated to CCF adivity, with additional camps, expeditions and training sessions scheduled throughout the year. Obviously expedition5 were curtailed by the lockdown. A vast range of sporting opportunities are available to pupils and the philosophy held by pupils and staff is to adopt a positive mental attitude and develop an exceptional work ethic. We promote fitness and enjoyment, and aim to develop each pupil's personal best. Pupils are offered a wide range of options including rugby. hockey. football. netball, cross country, cricket. tennis and athletics. Teams are fielded for all age groups. The School maintained an online sports programme during lockdown. providing for all pupils. There was also a comprehensive and detailed programme for sports scholars and those in elite pathways. Page 11
Downside Sthool Strategic Report for the Year Ended 31 January 2021 Flnancial review The Charity commenced trading on 11 September 2019. The income for the year ended 31 January 2021 arises from 12 months of trading as a School. following a trading period of approximately 5 months to 31 January 2020. and was £8,866,11912020 - £3.656.1671 with the fee income being £7.225,08412020- £3,322,818). Expenditure amounted to £9,058,046 12020 - £4.137.0271. reflecting the first full year of tradin8. The principal funding source for the period was fee income wthich 5UPPOrted the key objectives of the School in providing education to pupils. The worldwide Coronavirus pandemic ICOVID-191 experienced in 2020 necessitated the closure of the School on 20 March 2020. The 5urnmer term 2020 was conducted via remote learning in line with the Government advice. Fees were charged at a reduced rate to recognise the alternative offer. The financial impact on the School was si8nificant with 3 loss of fee income alone of £l,010.000. An additional impact on the anticipated income occurred due to the1055 Of Summer School and other lettings income. The Governors re¢ognised this significant impact. taking this into account in the Sthool's financial management. Expenditure on charitable activities was lower than anticipated. This was due to the closure of the School which resulted in savings in variable costs and consumables. Staff costs were also significantly reduced due to Government employee furlou8h financial support. The Governors have reco8nised the need for cost control in order to ensuure the School's continuin8 financial viability. Bonk loans The Charity has taken over a.loan originally taken out by Downside Abbey General Trust. amounting to £2,572.124 and outstandin8 at 31 January 2021. and is responsible for capital repayment and interest costs. Government support The Government implemented a number of business support schemes of which a number were available to schools. During the period. the School received a Government Grant in respect of the Coronavirus Job Retention Scherne ICJRSI for.the period from March to August 2020 whilst the School was closed. Page 12
Downside School Strategic Report for the Year Ended 31 January 2021 Reserve5 policy The Charity commenced trading on 11 September 2019 with nil reserves. During its first trading period to 31 January 2021 it made a 1055 and therefore there are negative reserves at the start of this period. The Charity's assets are sufficient to meet its obligations, however income for the period wa5 imparted by COVID-19 and had a significant effect on working capital. At the end of the period131 January 20211. there were no restricted funds and no material amounts designated or otherwise committed. The reserves policy now and in the future is to build up resources by means of annual operating surpluses whilst continuing to invest in resources for current and future pupils. Investment policy and objertives The School has a beneficial interest in shares in the Bank of New York at a value of £145,656 at 31 January 2021 {2020- £153.6131- These are 23% ofthe shares held by Downside Abbev General Trust and remain in the name of the Trust. The percentage transferred to the school's ownership is stated in the legal Separation Agreement between the Trust and the School. The School also has a beneficial interst in shares in Telecom Plus PLC to the value of £78.240 a5 31 January 202112020 - £90.7201. These are also held in the name of Downside Abbey General Trust and stated as transferred to the School under the term5 Qf the Separation Agreement. Principal rlsks and uncertainties The Governors are responsible foT the rnan3Eement of the risks faced by the Charity. Detailed considerations of the risks are delegated to the General Finance and Resources Committee, which is assisted by the Head and the Director of Finance. Risks are identified. assessed and controls are established throughout the year. A forrnal review of the Charity's "Risk Management process 15 undertaken on an annual basis. The key controls used by the Charity include Formal agendas for all Committee and Board activities- Detailed terms of reference for all Committees: Comprehensive strate8ic plannin& budgetingand management atcountin& Established organisational structure and lines of reportin& Formal written policies: Clear authorisation and approved levels,- and Vetting procedures as required by law for the protectlon of the vulnerable. Through the risk management process established for the Charity. the Governors are satisfied that major risks are identified and appropriately mitigated where necessary. Principal risks are identified as being: Page 13
Dthvnside School Strategic Report for the Year Ended 31 January 2021 Maintaining pupil numbers: and The bank withdrawing its loan facility. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. Financial risk management The CharitVs operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The School is exposed to credit risk as its main customers are the parents of pupils. The School is active in discussing payment terms with parents and agreeing payment plans where required. The School 15 exposed to liquidity risk but minimises the exposure by artively monitoring its monthly cash flow. Similarly, the School is also exposed to a rise in interest rates which it minimises by ensuring a reasonable contin8ency amount within the appropriate budget heading. In addition, the Charity has in place a risk management programme that seeks to limit the adverse effett on the financial performance of the Charity. The School has some boarding pupils from European countries and this market may be affected by the recent exit from the European Union. Going concern The School has prepared detailed forecasts through to"August 2024 which reflect the School's strategy to generate surpluses and positive cash flows. The Governors and Downside Abbey General Trust have also agreed to repurpose the latter's financial support amounting to £4m, under the School'5 Seperation Agreement with it, è5 set out in nate 22. This is to ensure that the School has sufficient financial resources to meet its operational needs and to ensure repayment of the bank loan whihc it has taken over from Downside Abbey General Trust. The School is currentty facing new cost of living and inflation related pressures, which are anticipated to. have an impact and have been factored in to its financial forecasts and planning. Notwithstanding these pressures. the School is forecasting surpluses and positive cash flows and as such the Governors are of the opinion that the accounts should be prepared on a going concern basis. Plans for future periods The School is continuing to formulate strong and robust strategic targets that focus on key areas including academic, pastoral. marketing and admissions. business development and community outreach. The key strategies are outlined under the objective5 for the year. These are being developed and acted on and will be reviewed and revised in the light of the second year of trading. Page 14
Downside School Strategic Report for the Year Ended 31 January 2021 The strate8ic report was approved by the Governors of the charity on 2511112022 and signed on its behalf bv: M F T Bernard Governor Page 15
O(wnside S¢hool Statement of Govemors, Responsibilities The Governors (who are also the directors of Downside School for the purposes of company lawl are responsible for preparing the Governors. report and the financial statements in accordance with the Untted Kin8dom Accounting Standards (United Kingdom Generally Accepted Accounting Prarticel and applicable law and re8ulation5. 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 thev are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resource5 and application of resourtes, including its income and expenditure, for that per•od. In preparing these financial statements. the Governors are required to- • select suitable accounting policies and apply them consistently: observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent- state whether applicable UK Accounting Standards have been followed, subjert to anv material departures disclosed and explained in the financial statements- and prepare the financial statements on the going contern 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 suffi'cient to show and explain the charitable company's Iransactions and disclose with reasonable accuracy at any lime the financial position of the charitable company and enable them to ensure that the financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detertion of fraud and other irregularities. Approved by the Governors of the charity on 2511V2022 and signed on its behalf bv- M F T Bernard Governor Page 16
Downside S¢h¢)ol Independent Auditor's Report to the Members of Downside School Opinion We have audited the financial statements of Downside School (the 'charity'l for the year ended 31 January 2021, which comprise the Statement of Financial Activities, Balance Sheet. Statement of Cash Flows. and Notes to the Financial Statements, including a 5urnmary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards. comprising Charities SORP - FRS 102 'The Financial Reporting Standard applitable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial 5tatements= give a true and fair view of the state of the charity's affair5 35 at 31 January 2021 and of its incoming resources and application of resoufces, including its income and expenditure. for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance wtth International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those Standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordonce with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard. and the provisions available for small entities. in the circumstances set out in note to the financial statements. and we have fulfilled our other ethical responsibilities i 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 nCern We have nothing to report in respect of the following matter5 in relation to which the ISAS IUKI require us to report to you where.. the Governors use of the going concern basis of accounting in the preparation of the financial statements is not appropriate- or the Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charit¢5 ability to continue to adopt the going concern basis of accounting for a period of at least twelve month5 from the date when the financial statements are authorised for issue. Page 17
Downside School Independent Audltor's Report to the Members of Downslde School Other infomiatlon The Governors are responsible for the other infomiation. The other information comprises the information included in the annual report. other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent othe1$e 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 50. consider whether the other information is materially incon5iStent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially mi55tated. 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 re83rd. Optnion on other rnatters prescribed by the Companies Art 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Strategic Report and Governors. Report for the financial year for which the.financial statements are prepared is consistent with the financial statements,. and the Strategic Report and Govemors. Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charity and its environment obtained in'the course of the audit, we have not identified material misstatement5 in the Strate8lC Report and the Governors, Report. We have nothing to report in respect of the following Ynatters where the Companies Att 2006 requires us to report to you if. in our opinion: adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and returns: or ertain disclosures of Governors. remuneration specified by law are not made- or • we have not received all the information and explanations we require for our audit. Page 18
Downside School Independent Auditor's Report to the Mernbers of Downside School Responsibilitie5 of Governors As explained more fully in the Statement of Governors. Responsibilities (set out on page 161. 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 the Governors 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 charity's ability to continue as a going toncern, disclosing, as applicable, matter5 related to going concern and usinE the going concern basis of accounting unle55 the Governors either intend to liquidate the charity or to cease operations. or have no realistic alternative but to do so. Auditor responslbllltles for the audit of the finanaal staternents 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 auditorfs 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 ISA5 IUKI will always detert a material mi5Statement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonablv be expected to influence the economic decisions of .users taken on the basis of these financial statements. The extent to which our procedures are capable of detectin8 irregularities. including fraud is detailed below.. Page 19
Downside Sthool Independent Auditor'5 Report to the Member5 of Downside School 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 re5pert of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud. is detailed below. We gained an understanding of the legal and regulatory framework applicable to the ompany and the industry in which it operates, and considered the risk of acts. by the company that were contrary to applicable laws and regulations. including fraud. We designed audit procedures to respond to the risk. recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error. as fraud may involve deliberate concealment by. for example. forgery or intentional mi5repre5entation5. or through collusion. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, includin& but not limited to. the Cornpanie5 Art 2006 and UK tax legislation. Our tests included a8reeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations 15 frorn the events and transadions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matter5 relating to irregularities. including fraud. As in all our audits, we also addressed the risk of management override of internal controls. including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud A further description of our responsibilities is available on the Financial Reportin8 Council'5 .website at.. www.frc.or8.uk/auditorsresponsibilities. This description forms part of our auditof's report. Use of our report This report is made solely to the charitable company's Governors. as a body, in accordance with Chapter 3 of Part 16 of the Companies Art 2006. Our audit work ha5 been undertaken 50 that we might state to the charity's Govemors those matters we afe 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 its Governors as a body. for our audit work. for this report. or for the opinions we have formed. Page 20
Downside 5th001 Independent Audltor's Report to the Members of Downside School Guy Bi88in15enior Statutory Auditor) For and on behalf of Crowe U.K. LLP. StatutoryAuditor 4th Floor. St. Jame5, House St. James. Square Cheltenham GL50 3PR Date= 25 November 2022 Page 21
Downside School Statement of Flnancial Activities for the Year Ended 31 January 2021 (Including Income and Expenditure Account and Statement of Total Re¢o8nised Gains and Losses) Total Unrestricted 31 January funds 2021 Note Income and Endowments from: Donations and legacies Charitable activities Other trading activities Investment income 1,551.259 7,225.084 5.600 6.509 77,667 1,551,259 7,225.084 5.600 6.509 77,667 Other income Total income 8.866,119 8,866,119 Expendlture on: Raising funds Charitable activities 1513.774} 1513,7741 18,544,272) {8,544,2721 Total expenditure Gains/losses on investment assets 19,058,046) 19.058.046) 120.4371 120,4371 Net expenditure 1212,3641 1212.364) Net movement in funds {212.3641 1212,3641 Reconciliation of fund5 Total funds brought forward 1451,9991 1451,9991 Total funds carried forward {664,3631 1664.3631 The notes on pages 27 to 46 form an integral part of these financial statements. Page 22
Downside School Stalement of Flnanclal Actlvltles for the Year Ended 31 January 2021 Ilncluding Incorne and Expenditure Account and Statement of Total Recogni5ed Gains and Lossesl Total 4 January 2019 to 31 January 2020 Unrestricted funds Note Income and Endowments from: Oonations and legacies Charitable artivities 333.349 3,322.818 333.349 3,322,818 Total income 3.656, 167 3.656.167 Empenditure on: Raising fund5 Charitable activities 133.701) 133.701) 14.103,3261 {4.103,3261 Total expenditure Gainsllosses on investment assets {4.137,027) 14.137.027) 28.861 28,861 Net expendlture 1451,9991 1451.9991 Net movement in funds 1451,9991 1451,9991 Reconciliation of funds Total funds carried forward 1451,9991 1451.9991 All of the"charity's activities derive from continuing operations during the above two" periods. The funds breakdown for 2020 is shown in note 22. The notes on pages 27 to 46 form an integral part of these financial statements. Page 23
Downside Sthool (Registration number: 117510091 Balance Sheet as at 31 January 2021 4January 2019 to 31 January 2020 31January 2021 Note Fixed assets Tangible assets Investments li 1.664,178 223.896 1,914,541 244.333 12 1.888,074 2.158,874 Current assets Stocks 13 28,460 2.780,283 1.325.897 Debtors 14 2,102.002 1,549.572 Cash at bank and in hand 3,651,574 4,134,640 Credltors: Amounts fallin8 due within one year 15 13,777,269} (4,173,389) Net current liabilities 1125.6951 138.7491 Total assels less curreni liabilities 1,762,379 2,120,125 Creditors: Amounls falling due after more than one year 16 12,426,742) 12,572,124) Net liabilities 1664.3631 {451,999) Funds of the tharity: Unrestrirted income funds Unrestricted funds 19 1664,3631 {451.999) Total funds 1664,3631 1451,9991 The financial statements on pages 22 to 46 were approved by the Governors. and authorised for issue on 2511112022 and signed on their behalf by= M F T Bernard Governor The notes on pages 27 to 46 form an integral part of these financial statements. Pa8e 24
Oownside khool Statement of Cash Flows for the Year Ended 31 January 2021 4 January 2019 to 31 January 2020 31 January 2021 Note Cash flows from operating artivitles Net cash expenditure 1212,3641 (451,9991 Adjustments to c35h Ilows from non-osh items Depreciation Revaluation of investments 376.646 20,437 134.579 {28.8611 184.719 1346,2811 Working capital adjustments Decrease/{increasel in stocks Decreasel{increasel in debtors Increase in creditors IDecreasel/increase in deferred income 13 28,460 678,281 53.910 {455.1331 128,4601 {2.780,2831 1,766.128 2,266.982 14 15 16 Net cash flows from operating activities 490,237 878,086 Cash flows from investinz artivities Purchase of tangible fixed assets Purchase of investments li {126.2831 12,049,120) 1215,472} 12 Net cash flows from investing activitie5 1126.2831 12.264.592> Cash flows from financing activities Value of new loans obtained during the period Repayment tsf loans and borrowings 2,712.403 15 {140,2791 . Net cash flows from financing activities 1140.2791 2.712,403 Net increase in cash and cash equivalents 223,675 1.325.897 Cash and cash equivalent5 at l February 2020 1.325.897 Cash and cash equivalents at 31 January 2021 1.549.572 1.325,897 The notes on pages 27 to 46 form an integral part of these financial statements. Page 25
Downside School Statement of Cash Fl¢)ws for the Year Ended 31 January 2021 Reconciliation of net cash flow to movement In net fvnds Increase in cash 223,675 1140,2791 1.325.897 2.572,124 Cash outflow from repayment of loans Change in net funds resulting from cash flows Other non-cash movements 83,396 5.103 3,898,021 Movement in net funds 88.499 3.898,021 Net funds at l February 2020 1.325.897 Net funds ai 31 January 2021 1.414.396 3.898,021 All of the cash flows are derived from continuing operations during the above two periods. The notes on pages 27 to 46 form an integral part of these financial statements. Page 26
Downside School Notes to the Flnanc6al Statements for the Year Ended 31 January 2021 l A¢¢ountlng policies Company inforniation Downside School is a charity. registered number 1184700. is a Publit Benefit Entity registered as a Charity in England and Wales and is a Company Limited by Guarantee. The accounting polices of the School. which have been applied consistently throughout the year, are listed below. Basis of accounting The financial statements have been prepared in accordance with the 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 IFRS 10211 {issued in October 20191- (Charities SORP IFRS 10211. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companie5 Art 2006. The financial statements are prepared in sterlin& which is the functional currency of the School. Monetary amounts in these financial statements are rounded to the nearest pound. Golng concern The Governors have prepared the finantial statements on a going concern basis as, in their opinion, the School is able to meet its obligations as they fall due. The School has prepared detailed financial forecasts through to August 2024 which reflect the School's strategy to generate surpluses and positive cash flows. The Governors and Downside Abbey General Trust hève also agreed to repufpose the latter's financial support, amounting to £4m, under the School's Seperation Agreement with it. as Set out in note 22. This is to ensure that the School has sufficient financial resources to meet its operational needs and to ensure repayment of the bank loan. which it has taken over from Downside Abbey General Trust. The School is currently facing new cost of living and inflation related pressures, which are anticipated to have an impact and have been fartored in to its financial forecasts and planning. Notwithstanding these pre55ures the School is forecasting surpluses and positive cash flows and as such the Governors are of the opinion that the accounts should be prepared on a going concern basis. Page 27
Downside School r4otes to the Finanaal Statements for the Yeai Ended 31 January 2021 Group accounts not prepared Downside School has a wholly owned non-charitablÈ subsidiary. Downside School Enterprise Limited. These financial statements have not been consolidated as the re5uIt5 of Downside School Enterprise Limited are not material to the Group. Incoming resour Income is recognised in the period in which the School is entitled to receipt and the amount can be measured with reasonable tertainty- Fees receivable and charges for services and use of the premises are accountable for In the period in which the service is provided. Fees receivable are stated after deductin8 allowances, scholarships and other remissions granted by the School. The School offers means tested bursaries and scholarships which carry a monetary value of remission which is dedurted from gross fees. Discounts are also offered to siblings of current pupils. militarv families and pupi15 wh05e parents and grandparents previously attended the School. Donation5 and legacie5 Oonations and any associated income tax reclaimable from HM Revenue and Customs are recognised on a receivable basis. Donations received for the general purpose of the Charity are credited to unrestricted funds. Donations subject to specific wishes are carried to relevant festricted fund5. Legacies are accounted for as they are receNed or if, befofe receipt, it becomes reasonablv certain that the legacy will be received and the value of the legacy can be measures with reasonable certainty. Grants receivoble Grant5 are recognised when the charity has an entitlement to the fund5 and any conditions linked to the grant5 have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recogni5ed a5 a liability and included on the balance sheet as deferred income to be released. Page 28
Downside School Notes to the Financial Statements for the Year Ended 31 January 2021 Resources expended Resources expended are atcounted for in the period in which they are incurred. Any irrecoverable element of Value Added Tax is included with the item of expense to which is relates. Where an item of expenditure falls directly within one cost category, it is attributed to that category onty. Where expenditure involves more than on cateEory, it is apportioned on a reasonable and justifiable basis. Governance c05ts These include the costs attributable to the charitrf5 compliance with constitutional and statutory requirements. including audit, strategic management and governors, meetings and reimbursed expenses. Tangible fixed assets Tangible assets are held on the balance sheet at cost less accumulated depreciation. Cost includes the purchase price of the asset plus all costs incurred in bringing the asset in to Use. Subsequent expenditure is capitalised where it extends the life or increase5 the value of the. asset. Depreciation and amortisation Tangible fixed assets are depreciated on a straight line basis over the following periods= Asset class Equipment, fixtures and fittings Motor vehicles Depreciation rnethod and rate 3 to 20 years straight line 5 years straight line Listed investments Investments are shown In the balance sheet at market value at the balance sheet date. Realised and.unrealised 8ains and losses on investment assets are included in the Statement of Financial Activities in the year in which they arise. Investment income is credited to income on an accruals basis. Stock Stocks are stated at the lower of cost and net realisable value. They exclude purchases of supplies allocated to the subsequent academic year. C05t represents purchase price on a first in first out bas15. Net realisable value Is based on estimated sellin8 price. Pa8e 29
Downside School Notes to the Financlal Statements for the Year Ended 31 January 2021 Trade debtor5 Oebtors are recognised at the corresponding transadion value. Trade credltors Creditors are recognised where the School has a present obligation which result5 from past event that in 311 probability. will result in the transfer of funds to a third party and the amount due to settle the obligation can be reliably measured. Deferred income The School offers parents.the opportunity to pay for up to five year5 tuition fee5 in advance in accordance with a written contract. This is treated as deferred income until the pupil joins the School whereupon. the fee for each School term are charged against the remaining balance and taken to incorne. All amounts are included within creditors due within one year as the amounts are repayable on demand if the pupil leaves. Retirement benefits The School contributed to the Teachers, Pension Defined Benefits Scheme at rates sei by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is multi employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS 17, the scheme is accounted for as a defined contribution scheme. The School has exited the Teachers, Pension Scheme with. effect from 31 December 2020. and a new defined contribution scheme with A¥iva has been provided in its place. All other pension arrangements are defined contribution schemes where the assets of the schemes are held separately from those of the School in an independently administered fund. In all case5, the pension cost charges represent contributions payable by the khool to the fund. Charltable funds Unrestricted funds are available for use at the discretion of the Governors in furtherance of the general objectives of the School and have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrirtions imposed by the donors or which have been raised by the School for a specific purpose.. The cost5 of raising and administering fund5 are charged against the specific fund. The aim of each restricted fund is set out in the notes to the financial ststements. Page 30
Downside Sthool Notes to the Financial Statements for the Year Ended 31 January 2021 Crltical accounting judgements and estimation uncertalnty The following are considered to be critical accounting judgements made in applyin'g the School's accounting policies: The Teacher's Pension Defined Benefits Scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS 102. the scherne is accounted for as a defined contribution stherne and contributions are charges to the Statement of Financial Activities when payable. The following 5ignifitant estimates and assumptions have been made in applying the School's accountin8 policies: The annual depreciation charge for fixed assets is sensitive to changes in the estimated useful economic lives of assets. Estimated lives are rea55e55ed annualby and considered to reflect the remaining life of an asset. The School makes an estimate of the recoverable value of trade and other debtors. Factors such as the ageing profile of the debtors and historical experience are taken Into account. Bad debts are considered on a case by case basis by taking into account the likelihood of recovery. Debts are written off by approval of the'Governors if this is deemed appropriate. Government grants Government grants are reco8nised based on the accrual model and are measured at the fair valLJe of the a55el received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. 2 Income from charftable aLlivities 4January 2019 to 31 January 2020 Unrestrlcted funds 31January 2021 Fee income 7.225.084 7.225,084 3.322,818 Page 31
Downside School Notes to the Financial Statements for the Year Ended 31 January 20ZI Fee income comprises of the following: 4 January Z019 to 31 January 2020 31 January 2021 Gr055 fees Less- total scholarships. bursarie5 and fee assistance Other fee income 9.804.068 {2,791.4851 208.727 3.774 4,079.804 1908.2181 140,544 10,688 Registration fees 7.225,084 3,322,818 3 Donations and legaaes Total 4January 2019 to 31 January 2020 Total 31 January 2021 Unrestricted funds Donations and gifts Grants, including capital grants: Government grants 1.159.043 1.159.043 333,349 392,216 392,216 1.551.259 1.551.259 333.349 Government 8rant income relates to the Covid Job Retention Scheme. Page 32
Downside School Notes to the Flnanflal Statements for the Year Ended 31 January 2021 4 Trading subsidiary The School has a wholly-owned trading subsidiary which is incorporated in the UK. Downside School Enterprises Limited (registered company number 024561681 operates a shop and the letting of the School during the school holiday's. The subsidiary company was removed from the Register on 30 March 2021 and is currently going through the process to be reinstated. Durin8 the year ended 31 August 2020. Downside School Enterprises Limited achieved sales of £101.037 and generated a net profit of £43.740. Net assets of the subsidiary totalled £43,741. 5 Net expenditure The net expenditure for the period is Stated after charging: 4 January 2019 to 31 January 2020 31 January 2021 Depreciation. Auditor5 remuneration Loan interest 375,610 16,500 87,450 4,053 134.579 10.750 21.944 2.254 Bank charges 483.613 169.527 6 Incorne froffl other trading artivitie5 4January 2019 to 31 January. 2020 Unrestricted funds 2021 Events income: Other events income 5.600 I.IS9.043 208.727 77.667 5,6CKJ 1.159.043 208,727 77.667 Appeals and donations Pupil extras Other income 333,349 140.544 1.451,037 1,451.037 473.893 Page 33
Downside School Note5 to the Financial Statements for the Year Ended 31 January 2021 7 Expenditure on charitable artivltles Teaching Welfare Premises Support Total 2021 Total 2020 3.467.768 693.553 462.369 1.155,923 5,779.613 2,323.030 Staff costs Expenditure on raising funds Depreciation and impairment Other costs 513,774 513,774 33,701 374,046 598,231 559.892 508.456 636.059 374.046 2.302.638 134.579 1.622.175 Governance costs 87.975 87.975 23,542 4.065,999 1.253.445 1.344.871 2.393,731 9,058.046 4.137,027 Analysis by fund Unrestricted funds 4,065,999 1.253.445 1.344.871 2.393,731 9.058,046 For the period ended 31 January 2020. Unrestricted funds 1,867,369 369.601 1.043.323 856.734 4.137.027 8 Analysis of governance and 5UPPOrt costs Governance costs Unre5trirted fvnds 2021 2020 Audit fees Audit of the financi31"statements Legal and professional fees Governors expenses 16.500 63,202 8.273 16,5(Xl 63,202 8.273 10.750 2,541 10.251 87.975 87.975 23,542 Page 34
Downside Sch¢)ol Notes to the Financial Staternent5 for the Year Ended 31 January 2021 9 Staff costs The aggregate payro'll costs were as follows= 4January 2019 to 31 January 2020 31 January 2021 Staff costs during the year were: Wages and salaries Social Security costs Pension costs Other staff c05tS 4.655.508 430.264 645.727 48.114 2,173,075 77,899 72.056 5.779.613 2,323,030 The monthly average number of pers0115 (including senior rnanagernent I leadership team) employed by the charity during the year was as follows: 4 January 2019 to 31 January 2020 No .31January 2021 No Teaching Other 94 103 94 116 197 210 During the year. Ihe charity made termination payments which totalled £32.489 12020 £Nill. Key Management personnel of the School are deemed to be the Senior Leadership Team. The total amount paid to key management personnel, includinB employers pension. National Insurance contributions and any benefrts in kind was £594.15312020- £294,035). The Governors received no remuneration. Governors were reimbursed travel and training expenses totalling £8,27312020 - £10.251). Page 35
Downside School Notes to the Financial Statements for the Year Ended 31 January 2021 The numberof employees whose emolumentsfell within the following bandswas: 4 January 2019 to 31 January 2020 No 31 January 2021 No £60,(KII- £70.000 £70.(M)1- £80,OCA) £120.001- £130,(KK) The pension contributions included within the above band5 amounts to £89.005 12020 £13,236). IOTaxatlon The School is a registered charity and AS such. is entitled to certain tax exemptions on income and profits from investments and surpluses on any trading activitie5 carried on in furtherance of the School's primary objectives if these profits and surpluses are applied solely for charitable purposes. Page 36
Downside Sthool Notes to the Flnanclal Statements for the Year Ended 31 January 2021 11 Tangible fixed assets Furniture and equipment Land and buildings Motor vehicles Total Cost At l February 2020 Additions 2.042.467 92,926 2,042,467 126.283 29.357 4.000 At 31January2021 29,357 2,135.393 4.000 2,168,750 Depreciation At l February 2020 Charge for the year 127.926 375,611 127.926 800 376.646 .235 At 31January 2021 235 503.537 800 . 504,572 Net book value At 31 January 2021 29,122 1,631,856 3,200 1,664,178 At 31 January 2020 1.914.541 1.914,541 12 Flxed asset investments 4 January 2019 to 31 January 2020 31 January 2021 Other investments 223.896 244,333. Page 37
Downside School Notes to the Finandal Staternents for the Year Ended 31 January 2021 Other investments Listed Unlisted invemeThts In¥ernents Total Cost or Valuation At l February 2020 Revaluation 90.720 112.4801 153.613 244,333 17,9571 120,4371 At 31 January 2021 78.240 145.656 223,896 Net book value At 31 January 2021 78.240 145,656 223,896 At 31 January 2020 90.720 153.613 244,333 Downside School owfis shares in an investment fund jointly with Downside Abbey General Trust. The School holds 22% of the joint holding. The listed investment represents 6.000 shares held in Telecom Plus PLC. 13 Stock 4 January 2019 to 31 January 2020 31 January 2021 hool stores 28.460 Page 38
Oownside School Notes to the Financial Statements for the Year Ended 31 January 2021 14 Debtors 4 January 2019 to 31 January 2020 31 January 2021 Trade debtors Due from Group undertakings Prepayments and accrued income Other debtor5 1.642,776 51.892 254,710 152,624 928.508 115.918 143.154 1.592.703 2.102.002 2,780,283 15Creditors: amounts falling duewithin one year 4January 2019 to 31 January 2020 31 January 2021 Bank borrowings "Trade creditors Other taxation and social security Other creditors Accruals Fees in advance Advance fees schRme 145,382 116,720 101,342 1.380.911 221,065 1.514,813 297,036 140,279 273,070 92.875 1.097.738 _ 302,445 1.922.415 344,567 3,777,269 4.173,389 Pa8e 39
Downside School Notes to the Financial Staternents for the Year Ended 31 January 2021 Fees received under the fees in advance Scheme will be applied as follows: 4January 2019 to 31 January 2020 31 January 2021 Wiihin I to 2 years Within 2 to 5 years 179.812 117,224 226,343 118.224 297.036 344,567 The advanced fees balance represents the accrued liability under the contracts. Capital movements durin8 the pefiod were= 4January 2019 to 31 January 2020 31January 2021 Balance brought forward Contracts transferred from DAGT New contracts 344.567 390,929 84,631 1130,9931 129.240 {176,7711 Amounts utilised 297,036 .344,567 16 Creditors: amounts falling due"after one year 4 January 2019to 31 January 2020 31 January 2021 Bank loan 2,426,742 2,572,124 Page 40
Downside Sthool Notes to the Financlal Statements for the Year Ended 31 January 2021 The bank loan was adopted as part of the separation of the School from Downside Abbey General Trust and has a term of five years from the separation date. The bank loan is secured against the rnain School site which is leased from Downside Abbey General Trust for a period of 125 years. The ageing of ihe bank loan falls to be repaid as follows= 41anuary 2019 to 31 January 2020 31 January 2021 Due within one year Due within one lo two years Due within two to five years 145.382 151.686 2,275,056 140,279 94.928 2,477,196 2.572,124 2,712,403 17Acquisitlons On the 11 September 2019, Downside School acquireil the School trading busine55 of Downside Abbey General Trust for no cash consideration. This transaction has been accounted for by the acquisition method of accounting as applied to a Public Benefit Entity Combination. In accordance with FRS 102, assets have been brou8ht in at fair value. The assets and liabilitie5 acquired were: Page 41
Downside Sthool Notes to the Flnancial Statements for the Year Ended 31 January 2021 £'ooo Fixed assets 2.049 215 Investments Stock 28 Debtors 57 Donation from the Trust 2.180 11,6261 (2,7121 Creditors Treasury loan 191 18 Obligations under leases and hire purchase ¢ontracts The annual commitments under non-cancellable operatin8 leases Nvere- 4 January 2019 to 31 January 2020 31 January 2021 land and buildings Within one year Between one and five years After five years 406,768 1.405,683 50,291.664 425.000 1,700,000 51,000.000 52.104.115 53.125.000 Fixtures and fittlnES Within one year Between one and five years 54,923 31,916 11.607 34,821 86,839 46,428 Page 42
Downside School Notes to the Finanaal Statements for the Year Ended 31 January 2021 19 Funds . Balance at l February Incoming Resources Gain on 2020 re50ur expended investment Balance at 31 August 2021 Unrestricted funds Unrestrirted funds 1451,999) 8,866.119 (9,058,046} {20,437) {664,3631 Balance at 31 January 2020 Incoming resources Resource5 expended Gain on investments Unrestricled funds Unrestricted funds 3.656.167 {4.137.0271 28,861 {451,999} 20Analysis of net liabilities between funds Unrestricted Total funds funds 2021 Tangible fixed assets Fixed asset investments Net current assets 1,664,178 1.664.178 223,896 223,896 {125,695) 1125.6951 12,426.7421 12.426,7421 Creditors over l year Total net liabilities. 1664,3631 1664,3631 Page 43
Downside School Noles to the Financial Statements for the Year Ended 31 January 2021 Unrestricted Total funds funds 2020 Tan8ible fixed assets Fixed asset investments 1.914.541 1.914.541 244.333 244.333 138.7491 138.7491 12,572.1241 12.572.124) Net current assets Creditor5 over l year Total net liabilities 1451,9991 (451.9991 21 Related party transactlons Renumeration of key management personnel The remuneration of key m3nagement personnel is as follovts.. During the year ended 31 January 2021. transactions tota51ing £1.114,53112020 - £980,946) were paid to Downside Abbey General Trust where Very Rev Dom Nicholas P Wetz is Trustee and controller of the Trust. The charges relate to services provided to the School and were charged at market value. As at the balance sheet date the amount due to the School from Downside Abbey General Trust was £Nil12020 - £1,565,7411- Further analysis of the acquisition from Oownside Abbey General Trust is included within Note 17. The School paid a total of £8.27312020 - £10.251} in Governors. expenses. 22 Pension and other schemes The School has participated in the following pension schemes: al The Teacher's Pension Scheme Idetined benefitl- and b) Defined contribution pension schemes. the assets of which are held separately from those of the School in independently administered funds. The total pension cost charge represents contributions payable by the School to these schemes as follows: Page 44
Downside School Notes to the Financial Statements for the Year Ended 31 January Z021 4 January 2019 to 31 January 2020 31 January 2021 Defined benefit scheme Defined contribution schemes 524,874 120,853 254.122 37,508 645.727 291.630 The following amounts had not been paid to the schernes at the year-end- 4 January 2019 to 31 January 2020 31 January 2021 Defined benefit scheme Defined contribution schemes 70.230 14,229 64,192 64,192 84,459 The School withdrew from the Teacher5, Pension Scheme {"the TPS") on the 31 December. 2020. The pension charge for the year include5 contributions payable to the TPS for the year ended 31 January 2021 of £524,874 {2020 - £254.1221 and at the year-end. £Nil 12020 £70,230) was accrued in respect of contributions to the scheme. The TPS 15 an UDfunded multi-employer defined benefit scheme governed by the Teachers, Pension Regulations 201- las amended) and the Teachers, Pension Scheme Regulations 2014 las amended). Members contribute on a 'pay as you go" basis with contribution5 from members and the employer being credited to the Exchequer. Retirement and other pension". benefits are paid by public funds provided by Parliament. All pension charges are charged to unrestrirted funds, in line with the fund from which wages and salaries are paid. Page 45
Downside Sthool Notes to the Financial Ststernent5 for the Year Ended 31 January 2021 23 Contingent a55etS As part of the formal separation. Downside Abbey General Trust had agreed to contribute funds towards maintenance works to be carried out on the School estate. These works were capped at £4million. with payments receivable as works were carried out. However. in order to 5UPPOrt the School a5 It recover5 from the COVID pandemic and seeks to reestablish profitability and positive cash flow. Downside Abbey General Trust has formerly agreed to repurpose this contribution in the fowm of actual donations of £lmillion. reduced rent of premisies of £425.000 and an undertaking to repay the bank borrowings that are outstandin8 by August 2024, currently E2.4million. The balance up to £4m 15 to be di5CU55ed further with the intention of it being used to support the school. 24 Flnandal Instruments Financial instruments are initially recognised at transattion value and subsequently measured at amortised cost with the exception of investments which are valued at fair value. Financial a55ets held at amortised cost comprise of cash at bank an in hand, together with trade and other debtOTS and fee debtors. A specific provision is made for debt5 where recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise of all creditors except social security and other taxes and prowsions. Financial assets held at amortised costs total £5,315,752 (2020 - £6,049.1811 and held at fair value total £223,89612020- £244.3331. Financial liabilitie5 held at amortised costs total £6.204.01112020- £6."475,5131. Page 46