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2021-08-31-accounts

Company registration number: 11751009 Charity registration number: 1184700

Downside School

(A company limited by guarantee)

Annual Report and Financial Statements

for the period from 1 February 2021 to 31 August 2021

Downside School

Contents

Reference and Administrative Details 1 to 2
Governors' Report 3 to 9
Strategic Report 10 to 15
Statement of Governors' Responsibilities 16
Independent Auditors' Report 17 to 21
Statement of Financial Activities 22 to 23
Balance Sheet 24
Statement of Cash Flows 25 to 26
Notes to the Financial Statements 27 to 45

Downside School

Reference and Administrative Details

Governors (also members) M F T Bernard (Chair from 29 April 2022) $# J M Ludlow (Deputy chair) $#+ Very Rev Dom N P Wetz # C M Hughes O.B.E # H A H Dickinson # A C Martin $ T J Wilcox #~ A C G Griffin $ J M T Ogilvy-Stuart # A Barrett # R Jenkins $ A Lynch # Dr R G G Mercer (Resigned 31 March 2022) J A Scott-Gatty (Resigned 1 April 2022)

$ Member of general finance and resources committee

Member of education committee + Responsibility for health and safety ~ Responsibility for safeguarding

Page 1

Downside School

Reference and Administrative Details

Clerk to the Governors V Locke (appointed 6 November 2020)
Charity Registration Number 1184700
Company Registration Number 11751009
Registered Office Stratton-on-the-Fosse
Radstock
Somerset
BA3 4RJ
Head A Hobbs
Auditors Crowe U.K. LLP
4th Floor, St. James' House
St. James' Square
Cheltenham
GL50 3PR
Bankers Barclays Bank PLC
4 Queen Street
Bath
BA1 1HE
Solicitors: Stone King
13 Queens Square
Bath
BA1 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 Period ended 31 August 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 (second 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 guarantee, registered number 11751009. The School is also a Charity, registered number 1184700. The Governors, executive officers and principal address of Downside School are listed on page 1 together with the particulars of the Charity’s professional advisors.

Structure, governance and management

Nature of governing document

The Charity is governed by its Memorandum and Articles of Association as amended on 22 July 2019.

The Governors who held office during the period are shown on page 1. The structure of the Charity consists of one Governing Body of not more than twelve Governors for Downside School.

Page 3

Downside School

Governors' Report

Recruitment and appointment of Governors

The Board of Governors shall include the Abbot of Downside Abbey (or 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 Chairman, the Head and the Clerk to the Governors. Governors’ training needs are assessed on an individual basis and training is given as appropriate. Recent training included attending an in-house session on Child Protection and Safeguarding. All Governors are required to and have undertaken a Safeguarding on line training course supplied by Educare. Regular guidance notes and information from AGBIS 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 considers the remuneration of senior personnel where appropriate at their summer term meeting. Consideration is given to benchmarking, in particular the Association of Governing Bodies of Independent Schools (AGBIS) Survey on Heads and Bursars Remuneration, market information and time in their position. Governors will also consider performance against objectives.

Organisational 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-committees; during the period to 31 August 2021- the Education Committee was chaired by Catherine Hughes and the General Finance and Resources Committee was 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 Business 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 page 1. In addition, there are two Governors with specific responsibilities for Health and Safety and Safeguarding. During the period to 31 August 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 School

Governors' Report

Governors' indemnities

As permitted by the Articles of Association, the Governors have the benefit of an indemnity which is a qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 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.

Major 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:

The following is a summary of the School's plans and strategies for managing those risks: • Compliance with regulatory requirements; ongoing self-evaluation of teaching, curriculum etc; SWOT analysis; regular review of Disaster Recovery Plan; compliance with Child Protection policies and procedures; Governor oversight;

Group structure and relationships

Downside School actively supports the attainment of the highest standards in the Independent Schools sector. To this end, it actively networks with other leading schools and participates in peer group studies for the evaluation of quality and performance improvement methods. The School also cooperates with many local charities in an ongoing endeavour 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 generosity of past pupils through the St. Gregory’s Society and from parents and others through the Downside Association.

Page 5

Downside School

Governors' Report

The Charity has a wholly owned non-charitable subsidiary, Downside School Enterprises Limited, which principally operates a school shop and also generates income for the School through the letting 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, objectives and activities

Charitable objects

The School’s charitable objects are;

  1. To advance Roman Catholic education in the Benedictine tradition and the Roman Catholic faith in particular, but without prejudice to the generality of the foregoing, by running a school known as Downside School;

  2. To advance education by providing facilities for the education and training of children 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 impact

The Trustees have regard to the Charity Commission’s guidance on public benefit. To achieve these objects, the public benefit aim is to provide a Catholic and Benedictine education focused on the formation of young people to enable them to realise 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 highest 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 promote Catholic education. The partnership provides a network of support to fellow schools and shares 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 days, sporting events and ‘Race for the Line’ events. Pupils 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 homes 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 support of charities 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 specialist sports staff coaching, refereeing and umpiring at a number of Prep Schools and also working with local primary schools.

The School has forged a strong relationship with Bath Rugby, and on occasions hosts the Bath Development Player Programme 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 county, seeing hundreds of talented players (girls and boys) visit Downside for training. We also host County Age Group fixtures at junior level.

Objectives for the period

The Charity’s objectives for the period were to continue to embed the educational offering which commenced in September 2019. The separation from Downside Abbey General Trust required new structures to be implemented and facilities resourced.

The new vision statement is 'Downside’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 also reviewed and amended its mission statement to read:

'We will renew and strengthen our roots 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 principles that seek to cover all areas of school life:

Page 7

Downside School

Governors' Report

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:

Achievements and performance

The School had no fundraising activities requiring disclosure under S162A of the Charities Act.

Page 8

Downside School

Governors' Report

Fee remission policy

During the period the value of scholarships, grants, prizes and bursaries made to the School’s pupils out of unrestricted funds totalled £1,656,179 (year to 31 January 2021 - £2,791,485). Of this, £225,020 (year to 31 January 2021 - £502,662) being 4.1% of fee income, (year to 31 January 2021 - 5.1%) was awarded in Scholarships and £1,431,159 (year to 31 January 2021 - £2,288,823) being 25.9% of fee income (year to 31 January 2021 - 23.3%), in bursaries and discounts.

All bursaries are means-tested according to the school’s policy 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 awards for fee-assistance, together 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 member has taken steps that they ought to have taken as a member 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 know the auditor is unaware.

The annual report was approved by the Governors of the charity on .................... and signed on its behalf by:

......................................... J M Ludlow Governor

Page 9

Downside School

Strategic Report for the Period from 1 February 2021 to 31 August 2021

Achievements and performance

Whole school

The continuation of the Coronavirus pandemic during this period meant the continuation of the unprecedented challenges for the School. This 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’s online provision was extremely well received by pupils and parents.

Despite the challenge of online and blended learning, which remained in place for all throughout the Lent term and for some during the Summer term, the pupils of all abilities continued to achieve extremely well academically. The Teacher Assessed Grades in both A level (56 % A/A and 79% A-B) and GCSE (56.4% 9-7 and 88.9% 9-5) in the Summer of 2021 showed that Downside pupils once again performed exceptionally.

Music and drama are an essential aspect of building confidence and provide pupils with a superb opportunity to work collaboratively.

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 recordings.

Orchestral, band and chamber music also flourish at Downside, with frequent concerts and weekly recitals. The Combined Cadet Force (CCF) 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 with singing the orchestral and band music was limited by the restrictions caused by the pandemic.

Page 10

Downside School

Strategic Report for the Period from 1 February 2021 to 31 August 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 Design and Technology pupils combine practical and technological skills with creative thinking to design and make products and systems that meet human 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 challenging, exciting and adventurous activities. All Third Form (aged 13+) pupils are able to experience the full range of CCF activity during the academic year. At the end of the Third Form, pupils can elect to move onto the Royal Navy, or Army, section in their senior years at Downside. One full afternoon per week is allocated to CCF activity, with additional camps, expeditions and training sessions scheduled throughout the year. Obviously expeditions 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 School

Strategic Report for the Period from 1 February 2021 to 31 August 2021

Financial review

The income for the period ended 31 August 2021 was £4,388,067 (year to 31 January 2021 - £8,866,119) with the fee income being £4,024,966 (year to 31 January 2021 - £7,225,084). Expenditure amounted to £5,563,179 (year to 31 January 2021 - £9,058,046), The principal funding source for the period was fee income which supported the key objectives of the School in providing education to pupils.

The worldwide Coronavirus pandemic (COVID-19) continued to impact the financial period. All pupils continued with remote learning for the remainder of the Lent term and for some this remained throughout the Summer term. Fees were charged at a reduced rate to recognise the alternative offer which negatively impacted upon the Schools finances. An additional impact on the anticipated income occurred due to the loss of Summer School and other lettings income. The Governors recognised this significant impact, taking this into account in the School'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 furlough financial support. The Governors have recognised the need for cost control in order to ensure the School's continuing financial viability.

Bank loans

The Charity has taken over a loan originally taken out by Downside Abbey General Trust, amounting to £2,499,722 outstanding at 31 August 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 Government Grants from the Coronavirus Job Retention Scheme (CJRS) amounting to £97,852.

Page 12

Downside School

Strategic Report for the Period from 1 February 2021 to 31 August 2021

Reserves policy

The Charity commenced trading on 11 September 2019 with nil reserves. Since then, it has suffered losses 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 continued to be affected by COVID-19 which has had a significant effect on working capital. At the end of the period (31 August 2021), 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 objectives

The School has a beneficial interest in an investment at a value of £165,613 at 31 August 2021 (31 January 2021 - £145,656). These are 23% of the shares held by Downside Abbey 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 £61,800 as 31 August 2021 (31 January 2021 - £78,240). These are also held in the name of Downside Abbey General Trust and stated as transferred to the School under the terms of the Separation Agreement.

Principal risks and uncertainties

The Governors are responsible for the management 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 formal review of the Charity’s Risk Management process is undertaken on an annual basis. The key controls used by the Charity include

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Downside School

Strategic Report for the Period from 1 February 2021 to 31 August 2021

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:

It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Financial risk management

The Charity’s 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 is exposed to liquidity risk but minimises the exposure by actively monitoring its monthly cash flow. Similarly, the School is also exposed to a rise in interest rates which it minimises by ensuring a reasonable contingency amount within the appropriate budget heading. In addition, the Charity has in place a risk management programme that seeks to limit the adverse effect 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.

Page 14

Downside School

Strategic Report for the Period from 1 February 2021 to 31 August 2021

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's Seperation Agreement with it, as set out in note 20. 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 currently facing new cost of living and inflation related pressures, which are anticipated to have an impact and have been factored into 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

We use historical data and trends (along with other information gathering and research) as the basis for forecasting pupil numbers. The number of pupils at the school dictates the allocation of resources and so our long term strategic plan and forecasts may change depending on factors such as uncertainty in the wider economy or Government imposed statutory or regulatory changes.

The strategic report was approved by the Governors of the charity on .................... and signed on its behalf by:

......................................... J M Ludlow Governor

Page 15

Downside School

Statement of Governors' Responsibilities

The Governors (who are also the directors of Downside School for the purposes of company law) are responsible for preparing the Governors' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the Governors to prepare financial statements for each financial period. 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 its income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping proper accounting records that can 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. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Governors of the charity on .................... and signed on its behalf by:

......................................... J M Ludlow Governor

Page 16

Downside School

Independent Auditor's Report to the Members of Downside School

Opinion

We have audited the financial statements of Downside School (the 'charity') for the period from 1 February 2021 to 31 August 2021, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary 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 applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Page 17

Downside School

Independent Auditor's Report to the Members of Downside School

Other information

The Governors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

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 misstatements in the Strategic Report and the Governors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Page 18

Downside School

Independent Auditor's Report to the Members of Downside School

Responsibilities of Governors

As explained more fully in the Statement of Governors' Responsibilities (set out on page 16), 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 concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Page 19

Downside School

Independent Auditor's Report to the Members 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 respect 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 company 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 misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing 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 is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters 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

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 Act 2006. Our audit work has been undertaken so that we might state to the charity's Governors those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not 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 School

Independent Auditor's Report to the Members of Downside School

...................................... Guy Biggin (Senior Statutory Auditor) For and on behalf of Crowe U.K. LLP, Statutory Auditor 4th Floor, St. James' House St. James' Square Cheltenham GL50 3PR Date:.............................

Page 21

Downside School

Statement of Financial Activities for the Period from 1 February 2021 to 31 August 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
2
Investment income
Other income
Total income
Expenditure on:
Raising funds
Charitable activities
7
Total expenditure
Gains/losses on investment assets
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
265,497
4,024,966
1,467
96,137
4,388,067
(298,001)
(5,265,178)
(5,563,179)
3,516
(1,171,596)
(1,171,596)
(664,363)
(1,835,959)		 7 Months
1 February
to 31 August
2021
£
265,497
4,024,966
1,467
96,137
4,388,067
(298,001)
(5,265,178)
(5,563,179)
3,516
(1,171,596)
(1,171,596)
(664,363)
(1,835,959)

The notes on pages 27 to 45 form an integral part of these financial statements. Page 22

Downside School

Statement of Financial Activities for the Period from 1 February 2021 to 31 August 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
2
Other trading activities
6
Investment income
Other income
Total income
Expenditure on:
Raising funds
Charitable activities
7
Total expenditure
Gains/losses on investment assets
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
1,551,259
7,225,084
5,600
6,509
77,667
8,866,119
(513,774)
(8,544,272)
(9,058,046)
(20,437)
(212,364)
(212,364)
(451,999)
(664,363)		 Total
31 January
2021
£
1,551,259
7,225,084
5,600
6,509
77,667
8,866,119
(513,774)
(8,544,272)
(9,058,046)
(20,437)
(212,364)
(212,364)
(451,999)
(664,363)

All of the charity's activities derive from continuing operations during the above two periods.

The funds breakdown for 2021 is shown in note 22.

The notes on pages 27 to 45 form an integral part of these financial statements. Page 23

Downside School

(Registration number: 11751009) Balance Sheet as at 31 August 2021

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: Amounts falling due within one year
14
Net current liabilities
Total assets less current liabilities
Creditors: Amounts falling due after more than one
year
15
Net liabilities
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds		 31 August
2021
£
1,860,286
227,414
2,087,700
1,039,903
996,913
2,036,816
(3,608,879)
(1,572,063)
515,637
(2,351,596)
(1,835,959)
(1,835,959)
(1,835,959)		 31 January
2021
£
1,664,178
223,896
1,888,074
2,102,002
1,549,572
3,651,574
(3,777,269)
(125,695)
1,762,379
(2,426,742)
(664,363)
(664,363)
(664,363)

The financial statements on pages 22 to 45 were approved by the Governors, and authorised for issue on .................... and signed on their behalf by:

.........................................

J M Ludlow Governor

The notes on pages 27 to 45 form an integral part of these financial statements. Page 24

Downside School

Statement of Cash Flows for the Period from 1 February 2021 to 31 August 2021

Note
Cash flows from operating activities
Net cash expenditure
Adjustments to cash flows from non-cash items
Depreciation
Revaluation of investments
Working capital adjustments
Decrease in stocks
Decrease in debtors
13
Increase in creditors
14
Decrease in deferred income
15
Net cash flows from operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
11
Acquisition of investments in subsidiary undertakings
12
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
14
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 February 2021
Cash and cash equivalents at 31 August 2021		 31 August
2021
£
(1,171,596)
215,536
(3,516)
(959,576)
-
1,062,099
113,000
(284,134)
(68,611)
(411,645)
(1)
(411,646)
(72,402)
(552,659)
1,549,572
996,913		 31 January
2021
£
(212,364)
376,646
20,437
184,719
28,460
678,281
53,910
(455,133)
490,237
(126,283)
-
(126,283)
(140,279)
223,675
1,325,897
1,549,572

The notes on pages 27 to 45 form an integral part of these financial statements. Page 25

Downside School

Statement of Cash Flows for the Period from 1 February 2021 to 31 August 2021

Reconciliation of net cash flow to movement in net funds
(Decrease)/increase in cash
Cash outflow from repayment of loans
Change in net (debt)/funds resulting from cash flows
Other non-cash movements
Movement in net (debt)/funds
Net funds at 1 February 2021
Net funds at 31 August 2021		 (552,659)
(72,402)
(625,061)
-
(625,061)
1,549,572
924,511		 223,675
(140,279)
83,396
5,103
88,499
1,325,897
1,414,396

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 27 to 45 form an integral part of these financial statements. Page 26

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

1 Accounting policies

Company information

Downside School is a charity, registered number 1184700, is a Public 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 (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the School. Monetary amounts in these financial statements are rounded to the nearest pound.

Going concern

The Governors have prepared the financial 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 have also agreed to repurpose the latter's financial support, amounting to £4m, under the School's Seperation Agreement with it,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 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.

Page 27

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

Group accounts not prepared

Downside School has a wholly owned non-charitable subsidiary, Downside School Enterprise Limited. These financial statements have not been consolidated as the results of Downside School Enterprise Limited are not material to the Group.

Incoming resources

Income is recognised in the period in which the School is entitled to receipt and the amount can be measured with reasonable certainty.

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 deducting 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 deducted from gross fees. Discounts are also offered to siblings of current pupils, military families and pupils whose parents and grandparents previously attended the School.

Donations and legacies

Donations 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 restricted funds.

Legacies are accounted for as they are received or if, before receipt, it becomes reasonably certain that the legacy will be received and the value of the legacy can be measured with reasonable certainty.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as 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 Period from 1 February 2021 to 31 August 2021

Resources expended

Resources expended are accounted 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 only. Where expenditure involves more than one category, it is apportioned on a reasonable and justifiable basis.

Governance costs

These include the costs attributable to the charity’s 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 increases the value of the asset.

Depreciation and amortisation

Tangible fixed assets are depreciated on a straight line basis over the following periods:

Asset class Depreciation method and rate
Equipment, fixtures and fittings 3 to 20 years straight line
Motor vehicles 5 years straight line

Listed investments

Investments are shown in the balance sheet at market value at the balance sheet date.

Realised and unrealised gains 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.

Trade debtors

Debtors are recognised at the corresponding transaction value.

Page 29

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

Trade creditors

Creditors are recognised where the School has a present obligation which results from a past event that in all 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 years tuition fees 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 income. All amounts are included within creditors due within one year as the amounts are repayable on demand if the pupil leaves.

Retirement benefits

Prior to 31 December 2020, the School contributed to the Teachers' Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. That 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 17, the scheme has been accounted for as a defined contribution scheme.

The School exited the Teachers' Pension Scheme with effect from 31 December 2020 and a new defined contribution scheme with Aviva 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 cases, the pension cost charges represent contributions payable by the School to the fund.

Charitable 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 restrictions imposed by the donors or which have been raised by the School for a specific purpose. The costs of raising and administering funds are charged against the specific fund. The aim of each restricted fund is set out in the notes to the financial statements.

Page 30

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

Critical accounting judgements and estimation uncertainty

The following are considered to be critical accounting judgements made in applying 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 scheme is accounted for as a defined contribution scheme and contributions are charges to the Statement of Financial Activities when payable.

The following significant estimates and assumptions have been made in applying the School's accounting policies:

The annual depreciation charge for fixed assets is sensitive to changes in the estimated useful economic lives of assets. Estimated lives are reassessed annually 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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset 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.

Page 31

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

2 Income from charitable activities

Income from charitable activities
Unrestricted
funds
£
Fee income
4,024,966
ee income comprises of the following:
Gross fees
Less: total scholarships, bursaries and fee assistance
Other fee income
Registration fees		 1 February
to 31 August
2021
£
4,024,966
1 February
to 31 August
2021
£
5,530,884
(1,656,179)
143,324
6,937
4,024,966		 Year ended
31 January
2021
£
7,225,084
Year ended
31 January
2021
£
9,804,068
(2,791,485)
208,727
3,774
7,225,084

Fee income comprises of the following:

3 Donations and legacies

3 Donations and legacies
Donations and gifts
Grants, including capital grants;
Government grants		 Unrestricted
funds
£
167,645
97,852
265,497		 1 February
to
31 August
2021
£
167,645
97,852
265,497		 Year ended
31 January
2021
£
1,159,043
392,216
1,551,259

Government grant income relates to the Covid Job Retention Scheme.

Page 32

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 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 02456168) 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.

During the year ended 31 August 2021, Downside School Enterprises Limited achieved sales of £124,017 (2020 - £101,037) and generated a net loss of £6,340 (2020 - net profit of £11,579). Net assets of the subsidiary totalled £5,240 (2020 - £11,580).

5 Net expenditure

The net expenditure for the period is stated after charging:

Depreciation
Auditors remuneration
Loan interest
Bank charges		 1 February
to 31 August
2021
£
214,230
42,880
59,316
2,467
318,893		 Year ended
31 January
2021
£
375,610
16,500
87,450
4,053
483,613

6 Income from other trading activities

6 Income from other trading activities
Other income Unrestricted
funds
£
96,137
96,137		 1 February
to
31 August
2021
£
96,137
96,137		 Year ended
31 January
2021
£
77,667
77,667

Page 33

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

7 Expenditure on charitable activities

Teaching
Welfare
Premises
Support
Staff costs
2,096,729
435,529
263,770
517,211
Expenditure on
raising funds
-
-
-
298,001
Depreciation
and impairment
-
-
215,537
-
Other costs
289,701
478,898
528,865
378,964
Governance
costs
-
-
-
86,974
2,386,430
914,427
1,008,172
1,281,150
Analysis by fund
Unrestricted
funds
2,386,430
914,428
981,171
1,281,150
For the year
ended 31
January 2021
Unrestricted
funds
4,065,999
1,253,445
1,344,871
2,393,731		 Total 1
February to
31 August
2021
Total year
ended 31
January 2021
3,286,239
5,779,613
298,001
513,774
215,537
374,046
1,676,428
2,302,638
86,974
87,975
5,563,179
9,058,046
5,563,179
-
-
9,058,046

Page 34

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

8 Analysis of governance and support costs

Governance costs

Audit fees
Audit of the financial statements
Legal and professional fees
Governors expenses
9 Staff costs
The aggregate payroll costs were as follows:
Staff costs during the period were:
Wages and salaries
Social security costs
Pension costs
Other staff costs		 Unrestricted
funds
£
42,880
43,602
492
86,974		 1 February
to 31 August
2021
£
42,880
43,602
492
86,974
1 February
to
31 August
2021
£
2,708,125
241,813
298,769
37,533
3,286,240		 Year ended
31 January
2021
£
16,500
63,202
8,273
87,975
Year ended
31 January
2021
£
4,655,508
430,264
645,727
48,114
5,779,613

Page 35

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

The monthly average number of persons (including senior management / leadership team) employed by the charity during the period was as follows:

Teaching
Other		 1 February
to
31 August
2021
No
64
124
188		 Year ended
31 January
2021
No
69
129
198

During the period, the charity made termination payments which totalled £Nil (year ended 31 January 2021 - £32,489).

Key Management personnel of the School are deemed to be the Senior Leadership Team. The total amount paid to key management personnel, including employers pension, National Insurance contributions and any benefits in kind was £386,741 (year to 31 January 2021 - £594,153).

The Governors received no remuneration. Governors were reimbursed travel and training expenses totalling £492 (year to 31 January 2021 - £8,273).

The number of employees whose emoluments fell within the following bands was:

£60,001 - £70,000 per annum
£70,001 - £80,000 per annum
£120,001 - £130,000 per annum		 31 August
2021
No
4
1
1		 31 January
2021
No
4
1
1

The pension contributions included within the above bands amounts to £38,193 (2021 - £89,005).

Page 36

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

10 Taxation

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 activities carried on in furtherance of the School's primary objectives if these profits and surpluses are applied solely for charitable purposes.

11 Tangible fixed assets

Cost
At 1 February 2021
Additions
At 31 August 2021
Depreciation
At 1 February 2021
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 January 2021 (as
restated)
12 Fixed asset investments
Shares in group undertakings and
Other investments		 Land and
buildings
£
Furniture
and
equipment
£
29,357
2,135,393
148,119
263,525
177,476
2,398,918
235
503,537
840
214,229
1,075
717,766
176,401
1,681,152
29,122
1,631,856
participating interests		 Furniture
and
equipment
£
2,135,393
263,525		 Motor
vehicles
£
4,000
-
4,000
800
467
1,267
2,733
3,200
31 August
2021
£
1
227,413
227,414		 Motor
vehicles
£
4,000
-		 Total
£
2,168,750
411,644
2,580,394
504,572
215,536
720,108
1,860,286
1,664,178
31 January
2021
£
-
223,896
2,398,918 4,000
503,537
214,229		 800
467
717,766 1,267
1,681,152 2,733
1,631,856 3,200
223,896

Page 37

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

Shares in group undertakings and participating interests

Cost
Additions
At 31 August 2021
Net book value
At 31 August 2021
Other investments
Cost or Valuation
At 1 February 2021
Revaluation
At 31 August 2021
Net book value
At 31 August 2021
At 31 January 2021		 Listed
investments
£
78,240
(16,440)
61,800
61,800
78,240		 Subsidiary
undertakings
£
1
1
1
Unlisted
investments
£
145,656
19,957
165,613
165,613
145,656		 Total
£
1
1
1
Total
£
223,896
3,517
227,413
227,413
223,896

Downside School owns 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.

Page 38

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

13 Debtors

Trade debtors
Due from Group undertakings
Prepayments and accrued income
Other debtors
14 Creditors: amounts falling due within one year
Bank borrowings
Trade creditors
Other taxation and social security
Other creditors
Accruals
Fees in advance
Advance fees scheme		 31 August
2021
£
629,935
106,214
217,588
86,166
1,039,903
31 August
2021
£
148,126
104,694
163,609
1,284,635
380,100
1,340,596
187,119
3,608,879		 31 January
2021
£
1,642,776
51,892
254,710
152,624
2,102,002
31 January
2021
£
145,382
116,720
101,342
1,380,911
221,065
1,514,813
297,036
3,777,269

Page 39

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

Fees received under the fees in advance scheme will be applied as follows:

Within 1 to 2 years
Within 2 to 5 years		 31 August
2021
£
116,980
70,139
187,119		 31 January
2021
£
179,812
117,224
297,036

The advanced fees balance represents the accrued liability under the contracts. Capital movements during the period were:

Balance brought forward
New contracts
Amounts utilised
15 Creditors: amounts falling due after one year
Bank loan		 31 August
2021
£
297,036
-
(109,917)
187,119
31 August
2021
£
2,351,596		 31 January
2021
£
344,567
129,240
(176,771)
297,036
31 January
2021
£
2,426,742

Page 40

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 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 main School site which is leased from Downside Abbey General Trust for a period of 125 years.

The ageing of the bank loan falls to be repaid as follows:

Due within one year
Due within one to two years
Due within two to five years		 31 August
2021
£
148,126
154,517
2,197,079
2,499,722		 31 January
2021
£
145,382
151,686
2,275,056
2,572,124

16 Obligations under leases and hire purchase contracts

The annual commitments under non-cancellable operating leases were:

Land and buildings
Within one year
Between one and five years
After five years
Fixtures and fittings
Within one year
Between one and five years		 31 August
2021
£
334,758
1,383,633
50,220,832
51,939,223
35,620
18,057
53,677		 31 January
2021
£
406,768
1,405,683
50,291,664
52,104,115
54,923
31,916
86,839

Page 41

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

17 Funds

17 Funds
Balance at
1 February
2021
£
Incoming
resources
£
Unrestricted funds
Unrestricted funds
Unrestricted funds
(664,363)
4,388,067
Balance at
1 February
2020
£
Incoming
resources
£
Unrestricted funds
Unrestricted funds
Unrestricted funds
(451,999)
8,866,119
18 Analysis of net liabilities between funds
Tangible fixed assets
Fixed asset investments
Net current assets
Creditors over 1 year
Total net liabilities		 Resources
expended
£
Other
recognised
gains/(losses)
£
Balance at
31 August
2021
£
(5,563,179)
3,516
(1,835,959)
Resources
expended
£
Other
recognised
gains/(losses)
£
Balance at
31 January
2021
£
(9,058,046)
(20,437)
(664,363)
Unrestricted
funds
£
Total funds
31 August
2021
£
1,860,286
1,860,286
227,414
227,414
(1,572,063)
(1,572,063)
(2,351,596)
(2,351,596)
(1,835,959)
(1,835,959)		 Balance at
31 August
2021
£
(1,835,959)
Balance at
31 January
2021
£
(664,363)
(1,835,959)

Page 42

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

Tangible fixed assets
Fixed asset investments
Net current assets
Creditors over 1 year
Total net liabilities		 Unrestricted
funds
£
1,664,178
223,896
(125,695)
(2,426,742)
(664,363)		 Total funds
31 January
2021
£
1,664,178
223,896
(125,695)
(2,426,742)
(664,363)

19 Pension and other schemes

The School has participated in the following pension schemes:

a) The Teacher's Pension Scheme (defined benefit); 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:

Defined benefit scheme
Defined contribution schemes		 31 August
2021
£
-
298,769
298,769		 31 January
2021
£
524,874
120,853
645,727

The following amounts had not been paid to the schemes at the year-end:

31 August 31 January
2021 2021
£ £
Defined contribution schemes 12,109 64,192

Page 43

Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

The School withdrew from the Teachers' Pension Scheme ("the TPS") on the 31 December 2020. The pension charge for the year includes contributions payable to the TPS for the period ended 31 August 2021 of £Nil (31 January 2021 - £524,874) and at the year-end, no amounts were accrued in respect of contributions to the scheme.

The TPS is an unfunded multi-employer defined benefit scheme governed by the Teachers' Pension Regulations 201- (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.

All pension charges are charged to unrestricted funds, in line with the fund from which wages and salaries are paid.

20 Contingent assets

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 support the School as it recovers from the COVID pandemic and seeks to re-establish profitability and positive cash flow, Downside Abbey General Trust has formerly agreed to repurpose this contribution in the form of actual donations of £1million, reduced rent of premisies of £425,000 and an undertaking to repay the bank borrowings that are outstanding by August 2024, currently £2.4million. The balance up to £4m is to be discussed further with the intention of it being used to support the school.

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Downside School

Notes to the Financial Statements for the Period from 1 February 2021 to 31 August 2021

21 Financial instruments

Financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are valued at fair value. Financial assets held at amortised cost comprise of cash at bank an in hand, together with trade and other debtors and fee debtors. A specific provision is made for debts 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 provisions.

Financial assets held at amortised costs total £3,896,301 (31 January 2021 - £5,315,752) and held at fair value total £227,414 (31 January 2021 - £223,896).

Financial liabilities held at amortised costs total £5,959,674 (31 January 2021 - £6,204,011).

22 Related party transactions

During the period ended 31 August 2021, transactions totalling £408,547 (year ended 31 January 2021 - £1,114,531) were paid to Downside Abbey General Trust where Very Rev Dom Nicholas P Wetz is a 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 £23,673 (31 January 2021 - £Nil).

As at the balance sheet date, the School was owed £106,213 (31 January 2021 - £49,429) from its subsidiary Downside School Enterprises Limited. The School considers this loan as being interest free and repayable on demand.

The School paid a total of £492 (year ended 31 January 2021 - £8,273) in Governors' expenses, during the period.

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