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2020-08-31-accounts

REGISTERED COMPANY NUMBER: 01221853 (England and Wales) REGISTERED CHARITY NUMBER: 270158

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 FOR

GRANGE ROSE HILL SCHOOL LIMITED

BSR Bespoke Chartered Accountants Registered Auditors Linden House Linden Close Tunbridge Wells Kent TN4 8HH

GRANGE ROSE HILL SCHOOL LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 August 2020

Page
Report of the Trustees 1 to 8
Report of the Independent Auditors 9 to 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 25

GRANGE ROSE HILL SCHOOL LIMITED

REPORT OF THE TRUSTEES for the year ended 31 August 2020

The Governors (who are also directors of the charitable company for the purposes of the Companies Act) present their annual report together with the audited financial statements of Grange Rose Hill School Limited (the charitable company) for the year ended 31 August 2020. The Governors confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements and give a true and fair view of the charitable company's affairs as at 31 August 2020, having been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice and the requirements of the Companies Act 2006.

OBJECTIVES AND ACTIVITIES

Policies and objectives

The Objects of the charitable company, as set out in the Memorandum and Articles of Association, are to promote and provide for the advancement of education, in particular for the education of children and to supply to the pupils general instruction of the highest class together with physical, moral and religious training.

Strategies for achieving objectives

In the spirit of our school aims we work hard to provide each child with a learning experience which is one of aspiration, adventure and achievement in a nurturing, caring school. Working with integrity your child will:

Rose Hill School aims to offer the highest quality of teaching and learning and support to all pupils in the pursuit of academic and personal excellence. We have high expectations of all of our pupils and we strive to ensure that each and every pupil can take part in the whole school curriculum.

In forming our objectives and overall policies for the School the Governors are mindful of the Charity Commission's guidance on public benefit.

Activities for achieving objectives

While continuing to fulfil the aims defined above, the main focus of our objectives for the year were defined in our School Development Plan. Whilst the Plan covers the complete spectrum of the objectives of the School, the main focus for the year was to:

The management team and governing body focussed on a strategy to continue to develop and enhance the high level of education & care provided by the school to help increase pupil numbers on role.

Page 1

GRANGE ROSE HILL SCHOOL LIMITED

REPORT OF THE TRUSTEES for the year ended 31 August 2020

OBJECTIVES AND ACTIVITIES

Main activities undertaken to further the school's purposes for public benefit

With the onset of the Covid-19 pandemic, we were limited by lockdown restrictions as to the extent we could make our buildings and grounds available to local and national organisations. Despite those restrictions, in the past year these have included:

Our sports hall is used each week by Bishops Down Primary School who also use our sports equipment, playing fields and theatre. They have used our swimming pool for one morning per week to support their swimming curriculum.

A member of the senior management team is Vice Chair of Governors at a state secondary school. Another member of staff is a Governor at a local state primary school. A member of senior management team is a trustee at a local Alms House charity. A member of staff is a volunteer with the South East Area Combined Cadet Force.

Invitations to attend our specialist science lecture are made to children from local schools.

Charitable support is an important part of life at Rose Hill. During the year we raised a total of £1,785, supporting a number of different charities such as Delight, The Christmas Shoebox Appeal, Children in Need and Sports Relief.

We continue to seek to widen access to the School through means tested bursaries, an objective that is kept under close review.

Page 2

GRANGE ROSE HILL SCHOOL LIMITED

REPORT OF THE TRUSTEES for the year ended 31 August 2020

STRATEGIC REPORT

Achievement and performance

Key financial performance indicators

Total Income for the year of £3,293,971 after allowing for scholarships, bursaries and allowances was approximately 2.5% higher than the previous year while costs of £3,288,377 were up by approximately 1%. The Governors are of the opinion that the net book value of the freehold land and buildings, shown in the accounts at £7,108,794, are worth more than that figure but the exact value cannot be determined without professional valuations.

Review of activities

1. Pupil Numbers:

The charity principally provides education for boys and girls between the ages of 3 and 13 in Tunbridge Wells. This year pupil numbers averaged 240 all of whom were day pupils.

2. Academic:

Whilst this has been an unusual year with all the difficulties surrounding the Covid-19 pandemic, we have managed to continue to develop our school ethos and curriculum. We have taken the best of new innovations to enrich each child's learning journey, adding layers to the traditions and skills that lead to successful learning.

All of our 13+ Common Entrance candidates achieved places at their first-choice schools, an achievement which has stood for many years. Our Year 6 pupils continue to do well moving on to a number of different local secondary schools - we are pleased that we are able to offer parents so much choice. Senior Schools are not generic institutions and it is important to ensure that they are the right fit for the individual child.

Our outdoor classroom offers ever growing opportunities for not only our youngest pupils, it offers opportunities for adventure, play and learning outside of the classroom for all ages.

Where it has been possible to do so, we have continued with many rich and diverse opportunities, our STEAM (Science, Technology, Engineering, Arts & Maths) week saw the whole school engaged in many different and exciting activities. Our history trips this year were many - including Roman Day, the British Museum and Victorian Day to name but a few. These trips enable concrete connections to be drawn together, building solid knowledge, skills and understanding.

In this academic year, it was not possible to participate in as much sport as we would have liked. However, in September the U10 Boys won a 5 aside football tournament and the U10 Girls hockey team were undisputed champions in our own tournament and this team succumbed to only one defeat during the whole season. In October, the school undertook our first co-educational sports tour to Holland to allow our pupils to train with professional athletes.

Prior to Covid-19, Music within the school continued to flourish and included events such as a signing day at Eastbourne College, our own Carol Service at which a composition was written by our Year 6 pupils and during lockdown a virtual Orchestra week online.

Investment policy and performance

The Governors review regularly the school's finances, budget and spend against budget. This became increasingly more important as the pandemic developed.

Our policy is to achieve the level of operational surpluses as set out in our Five Year Plan as the basis for maintaining our financial stability and to continue with improvements to School facilities to maintain excellent teaching facilities for our pupils.

Factors relevant to achieve objectives

Performance is monitored by using reports to the Council combined with Governors and School working to improve and update all aspects of the functions of the School. This is facilitated by our Development Plan which, while identifying, also monitors the enhancements in curriculum, pastoral care, buildings and grounds, human resources, governance, management, marketing, policies and financial resources. In the process it addresses time scales, costs and implementation.

Page 3

GRANGE ROSE HILL SCHOOL LIMITED

REPORT OF THE TRUSTEES for the year ended 31 August 2020

STRATEGIC REPORT Financial review

Principal funding sources

The School has no endowments or access to funds other than its income from fees and government grants relating to the Coronavirus Job Retention Scheme (CJRS). During the year, 5.4% of gross fee income was made available as allowances for fees which included scholarships and means tested bursaries. The principal source of income for the School is tuition fees. As the School is a charity, the parents of our pupils have the assurance that all income must be applied for educational purposes. As an educational charity we claim exemption on our educational activities and our investment income and gains, provided these are applied to our charitable aims.

Material investments policy

The School is empowered to invest monies not immediately required for its purpose in or upon such investments, securities or property as may be thought fit and within the law.

Reserves policy

The 'reserves' or unrestricted funds at the balance sheet amounted to £5,351,980. The main physical asset of the School is the School itself. Over time the School has maintained a policy of improving the facilities and thus the value of this asset. Free investment funds have generally been short term in nature awaiting further investment in the School. Our current policy is to maintain excess funds on high interest accounts and the opening of any such accounts will be made only with the approval of the Council.

Going concern

After making appropriate enquiries, the Governors have a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Principal risks and uncertainties

The Governors are satisfied that the major risks identified have been adequately mitigated where necessary. This was an unprecedented year in which the school had to manage the many challenges of the Covid-19 pandemic. It is recognised however that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Financial and risk management objectives and policies

The Governors are responsible for the management of the risks faced by the School. Risks are identified and assessed, and controls established throughout the year. A formal review of the charity's risk management processes is undertaken on a termly basis and documented in a Risk Management Matrix. The key controls used by the charity include:

The School maintains a schedule to instigate, review and update policies. These include our approach on access in our Admissions Policy and our Equal Opportunities Policy all of which can be viewed on the School website.

Page 4

GRANGE ROSE HILL SCHOOL LIMITED

REPORT OF THE TRUSTEES for the year ended 31 August 2020

STRATEGIC REPORT

Future developments

These are primarily defined in the 2020-2021 Development Plan that identifies and monitors the requirements and improvements to be made to the School. The Plan is updated annually in a process that encompasses input from all areas of the School. It is reviewed regularly by the Governors and approved at their meeting in November. Our priorities for the coming year are:

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Charity constitution

Rose Hill School (the School) was founded in 1832 and continues to operate under this name. It was incorporated as a company under company registration number 1221853 on 17th July 1975 as Grange Rose Hill School Limited and registered with the Charity Commission under charity number 270158 on 10th October 1975.

The Governors form the Council of Management (the Council) which governs the School. They are directors of the Company for the purposes of the Companies Act and charity trustees for the purposes of the Charities Act. Members of the Council during the year under review are listed on page 7 together with the executive officers and professional advisers to the company. In accordance with the Articles of Association, three members of the Council retired during the year - Mrs Karen Bilney (December 2019), Mr Charles Arthur (July 2020), Mr Simon Kibler (July 2020)). Two new member were appointed, Mrs Sharon Hodgson (April 2020) and Mr Anthony Lamb (June 2020). Grange Rose Hill School Limited is a company limited by guarantee and without a share capital. It is governed by its Memorandum and Articles of Association dated 17th July 1975 and last amended in June 2004.

Method of appointment or election of governors

Potential Governors are identified by current Governors or the Executive Officers on the basis of particular skills, personal reputation and competence and, where possible, an existing commitment and supportive attitude towards the School. Governors are elected to the Council of Management at Council meetings following interviews, combined with meetings to discuss and instruct potential candidates of the responsibilities and duties involved.

Organisational structure and decision making

The Council of Management meets at least three times a year and is responsible for the determination of general policy and overall management of the School. Day to day management is delegated to the Head for academic management and to the Bursar for administrative management. The Council is supported by five sub committees: Finance and General Purposes; Academic & Curriculum and Welfare, Child Protection & Safeguarding, Covid-19 Working Party and Health & Safety. Formulation and review of policies is delegated by the Council to the sub committees who report back to the Council for ratification.

Page 5

GRANGE ROSE HILL SCHOOL LIMITED

REPORT OF THE TRUSTEES for the year ended 31 August 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Policies adopted for the induction and training of Governors

Governors are inducted into the working of the Council on the basis of a comprehensive Governors' Handbook and attendance at organised workshops and seminars run by the Association of Governing Bodies of Independent Schools (AGBIS). Governors regularly visit the school to see it in action and spend time with pupils and staff.

Key management remuneration

The Governors consider that they together with the Head, Deputy Head, Bursar and Head of Upper School (Senior Management Team) comprise the key management personnel of the school. The pay and remuneration of the Head and senior staff is set by the Governors and is kept under annual review.

Key management personnel are considered to be individuals who have authority and responsibility for planning, directing and controlling the activities of the School. Total remuneration in respect of these individuals was £313,725 (2019: £174,511).

Risk management

The Governors have assessed the major risks to which the School is exposed, in particular those related to the operations and finances of the School, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. During the year, much of the school's focus was ensuring that the school had made all necessary adjustments to deal safely with the pandemic. As a result, a Covid-19 task force, consisting of Governors, the Head and Bursar, meet regularly to constantly review operations.

The governors are aware of the continued political pressures to remove charitable status from the independent schools sector and the financial impact this will have on the school. The recent valuation of the Teachers' Pension Scheme fund brought additional financial burdens with the significant increase in employer's contributions and as a result the governors conducted a period of consultation with the teaching staff to explore a variety of options, the outcome of which was the removal the school from the Teachers' Pension Scheme in January 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

01221853 (England and Wales)

Registered Charity number

270158

Registered office

Coniston Avenue Tunbridge Wells Kent TN4 9SY

Page 6

GRANGE ROSE HILL SCHOOL LIMITED

REPORT OF THE TRUSTEES for the year ended 31 August 2020

Trustees
C E Arthur Publishing Director (resigned 4.7.20)
K E Bilney Advertising Consultant (resigned 13.12.19)
N D Green Bank Manager (resigned 31.12.20)
L Hockley Retail Manager
J C Pearson Teacher
M L Scott Solicitor
C J Scott Ex-Headmistress
C W Symes Second Master
 (resigned 10.11.20)
N Phillips Barrister
S Kibler Deputy Head
 (resigned 4.7.20)
J Saunders Audit Partner
S M Hodgson Clinical Psychologist
 (appointed 13.4.20)
N Firman Surveyor (appointed 10.11.20)
D L Brockman School Business Manager (appointed 10.11.20)
L S Keatley Solicitor (appointed 10.11.20)
A Lamb Assistant Head (appointed 29.6.20)
Company Secretary
C D Lupton
Auditors
BSR Bespoke
Chartered Accountants
Registered Auditors
Linden House
Linden Close
Tunbridge Wells
Kent
TN4 8HH

Solicitors

Cripps Pemberton Greenish 22 Mount Ephraim Road Tunbridge Wells Kent TN4 8AS

Bankers

Lloyds Bank plc Tunbridge Wells Kent TN1 1RP

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Grange Rose Hill School Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Page 7

GRANGE ROSE HILL SCHOOL LIMITED

REPORT OF THE TRUSTEES for the year ended 31 August 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

AUDITORS

The auditors, BSR Bespoke, were re-appointed at the Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 25 March 2021 and signed on the board's behalf by:

N Phillips - Trustee

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF GRANGE ROSE HILL SCHOOL LIMITED

Opinion

We have audited the financial statements of Grange Rose Hill School Limited (the 'charitable company') for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF GRANGE ROSE HILL SCHOOL LIMITED

Matters on which we are required to report by exception

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

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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

STEPHEN POCOCK (Senior Statutory Auditor) for and on behalf of BSR Bespoke Chartered Accountants Registered Auditors Linden House Linden Close Tunbridge Wells Kent TN4 8HH

19 April 2021

Page 10

GRANGE ROSE HILL SCHOOL LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the year ended 31 August 2020

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
6
Educational
Other trading activities
4
Investment income
5
Total
EXPENDITURE ON
Raising funds
7
Charitable activities
8
Educational
Welfare
Establishment
Support
Governance costs
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 31.8.20
Unrestricted
fund
£
214,725
2,984,478
94,370
398
3,293,971
18,565
1,931,294
233,881
640,376
455,501
8,760
3,288,377
5,594
5,346,386
5,351,980		 31.8.19
Total
funds
£
-
3,107,808
107,488
336
3,215,632
19,612
1,873,266
230,636
689,977
428,754
8,790
3,251,035
(35,403)
5,381,789
5,346,386

The notes form part of these financial statements

Page 11

GRANGE ROSE HILL SCHOOL LIMITED

BALANCE SHEET 31 August 2020

Notes
FIXED ASSETS
Tangible assets
15
CURRENT ASSETS
Stocks
16
Debtors
17
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
18
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
19
NET ASSETS
FUNDS
22
Unrestricted funds
TOTAL FUNDS		 31.8.20
31.8.19
Unrestricted
Total
fund
funds
£
£
7,347,635
7,573,303
22,423
25,058
978,547
69,554
243
826
1,001,213
95,438
(1,581,095)
(784,500)
(579,882)
(689,062)
6,767,753
6,884,241
(1,415,773)
(1,537,855)
5,351,980
5,346,386
5,351,980
5,346,386
5,351,980
5,346,386

The financial statements were approved by the Board of Trustees and authorised for issue on 25 March 2021 and were signed on its behalf by:

N Phillips - Trustee

The notes form part of these financial statements

Page 12

GRANGE ROSE HILL SCHOOL LIMITED

CASH FLOW STATEMENT for the year ended 31 August 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Repayment of borrowings
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
2
Cash and cash equivalents at the end of
the reporting period
2		 31.8.20
£
336,298
(52,475)
283,823
(11,235)
-
398
(10,837)
-
(116,129)
(116,129)
156,857
(428,464)
**(271,607) **		 31.8.19
£
191,877
(55,354)
136,523
(29,930)
500
336
(29,094)
1,000,000
(86,395)
913,605
1,021,034
(1,449,498)
(428,464)

The notes form part of these financial statements

Page 13

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 August 2020

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Profit on disposal of fixed assets
Interest received
Interest paid
Decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operations
2.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Notice deposits (less than 3 months)
Overdrafts included in bank loans and overdrafts falling due within one year
Total cash and cash equivalents
3.
ANALYSIS OF CHANGES IN NET DEBT		 31.8.20
£
5,594
236,905
-
(398)
52,475
2,635
(908,993)
948,080
336,298
31.8.20
£
242
1
(271,850)
**(271,607) **		 31.8.19
£
(35,403)
239,280
(157)
(336)
55,354
3,912
280
(71,053)
191,877
31.8.19
£
226
600
(429,290)
(428,464)
ANALYSIS OF CHANGES IN NET DEBT
At 1.9.19 Cash flow At 31.8.20
£ £ £
Net cash
Cash at bank and in hand 826 (583) 243
Bank overdraft **(429,290) ** 157,440 (271,850)
(428,464) 156,857 (271,607)
Debt
Debts falling due within 1 year (111,771) (1,875) (113,646)
Debts falling due after 1 year **(1,465,025) ** **118,002 ** **(1,347,023) **
(1,576,796) 116,127 (1,460,669)
Total (2,005,260) **272,984 ** (1,732,276)

The notes form part of these financial statements

Page 14

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2020

1. SCHOOL INFORMATION

Grange Rose Hill School Limited is a private limited company, limited by guarantee without share capital, registered and incorporated in England and Wales.

The trustees of the charitable company can be found in the Report of the Trustees on page 7. In the event of the charitable company being wound up, liability in respect of the guarantee is limited to £1 per trustee.

The address of its registered office and place of business is Rose Hill School, Coniston Avenue, Tunbridge Wells, Kent, TN4 9SY.

The principle activity of the charitable company in the year under review was the provision of educational services.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is the Pound Sterling (£) and amounts are rounded to the nearest whole £1.

Critical accounting judgements and key sources of estimation uncertainty

Depreciation is a significant accounting estimate within the accounts. Depreciation rates are based on the useful expected lives of each asset. The Trustees review the assets to ensure that their policies remain up to date, accurate and in line with previous expectations to confirm that depreciation is not accelerated or under-provided.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income represents school fees and extra charges relating to the three academic terms in the year and income from other activities. Fees invoiced and received in advance are carried forward for credit in the period to which they relate.

Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the charity has provided the goods or services.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Support costs are those incurred directly in support of expenditure on the objectives of the School and include project management carried out. Governance costs are those incurred in connection with administration of the school and compliance with constitutional and statutory requirements,

continued...

Page 15

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

2. ACCOUNTING POLICIES - continued

Expenditure

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

The running costs of the School, including the provision of education, are treated as direct charitable expenditure and includes costs relating to education, premises and the majority of administrative expenses. Other indirect expenditure has been classified separately.

Government grants

Grants are recognised when evidence of entitlement is probable and its amount can be measured reliably. A grant that imposes specified future performance-related conditions is recognised in income only to the extent that the performance-related conditions have been met. Where the performance-related conditions have not been met or uncertainty exists as to whether the School can meet the terms or conditions otherwise within its control, the income is deferred as a liability until it is probable that the conditions have been met. A grant that does not impose specified future performance-related conditions is recognised in income when the grant proceeds are received or receivable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land & buildings - at varying rates on cost Fixtures, fittings & equipment - at varying rates on cost Groundsman's equipment & minibuses - at varying rates on cost

No depreciation is charged on assets under construction.

All assets costing more than £500 are capitalised.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The School operates several pension schemes for its employees.

continued...

Page 16

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The Teachers' Pension Scheme ('TPS') is an unfunded scheme and contributions are calculated so as to spread the cost of the pension over the employees' working lives with the School in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in note 23, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

The School operates a defined contribution scheme for other staff and contributions are charged to the income and expenditure account as they are paid.

Going concern

The members have made their own assessment of going concern and have a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties that cast significant doubt on the School's ability to continue as a going concern.

Financial Instruments

The company enters into basic financial instruments that give rise to financial assets and financial liabilities including trade and other debtors, trade and other creditors, bank account balances, bank loans and other loans and borrowings and investments in certain non puttable and non convertible equity instruments.

Debt instruments which are not payable or receivable within one year are initially accounted for at the transaction price and are subsequently accounted for at amortised cost using the effective interest method. Debt instruments payable and receivable within one year are measured at their undiscounted cash amounts. Where the debt instruments are treated as a financing transaction, then the financial asset or liability is measured at the present value of future cash flows based on a market rate of interest. Debt instruments which are treated as financial assets and accounted for at amortised cost are also assessed for impairment.

Equity instruments are initially accounted for at transaction price. They are subsequently accounted for at cost unless they can be accounted for at fair value based on a readily available market price or fair value. Equity instruments which are treated as financial assets and accounted for at cost are also assessed for impairment.

3. DONATIONS AND LEGACIES

Government grants 31.8.20
£
214,725		 31.8.19
£
-

Government grants received in the year relate to the Coronavirus Job Retention Scheme (CJRS).

continued...

Page 17

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

4.
OTHER TRADING ACTIVITIES
Uniform sales
Other income
5.
INVESTMENT INCOME
Deposit account interest
6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
School fees receivable
Educational
Bursaries & scholarships
Educational
7.
RAISING FUNDS
Other trading activities
Purchases
8.
CHARITABLE ACTIVITIES COSTS
Educational
Welfare
Establishment
Support
Governance costs		 Direct
Costs (see
note 9)
£
1,885,782
233,881
448,983
-
-
2,568,646		 31.8.20
£
23,725
70,645
94,370
31.8.20
£
398
31.8.20
£
3,153,357
(168,879)
2,984,478
31.8.20
£
18,565
Support
costs (see
note 10)
£
45,512
-
191,393
455,501
8,760
701,166		 31.8.19
£
26,668
80,820
107,488
31.8.19
£
336
31.8.19
£
3,262,792
(154,984)
3,107,808
31.8.19
£
19,612
Totals
£
1,931,294
233,881
640,376
455,501
8,760
3,269,812

continued...

Page 18

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

9. DIRECT COSTS OF CHARITABLE ACTIVITIES

Staff costs
Equipment lease & hire
General premises expenses
Catering
Tutorial
School trips
Motor expenses
Bad debts		 31.8.20
£
2,242,131
47,033
154,524
61,904
24,374
3,969
5,457
29,254
2,568,646		 31.8.19
£
2,165,420
60,043
183,107
88,464
38,941
12,327
6,297
-
2,554,599

10. SUPPORT COSTS

Management
Finance
£
£
Educational
-
-
Establishment
-
-
Support
374,765
7,286
Governance costs
-
-
374,765
7,286
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
Other operating leases
Surplus on disposal of fixed assets		 Governance
Other
costs
£
£
45,512
-
191,393
-
-
73,450
-
8,760
236,905
82,210
31.8.20
£
236,903
47,033
-		 Totals
£
45,512
191,393
455,501
8,760
701,166
31.8.19
£
239,280
60,043
(157)

11. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

continued...

Page 19

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

12. AUDITORS' REMUNERATION

AUDITORS' REMUNERATION
31.8.20 31.8.19
£ £
Fees payable to the charity's auditors and their associates for the audit of the
charity's financial statements 8,760 8,400

13. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.

14. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Teaching
Support staff		 31.8.20
£
1,930,140
178,880
336,469
2,445,489
31.8.20
33
45
78		 31.8.19
£
1,936,339
176,175
251,975		 31.8.19
£
1,936,339
176,175
251,975
2,364,489
31.8.19
34
43
77

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£80,001 - £90,000 31.8.20
1		 31.8.19
1

continued...

Page 20

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

15. TANGIBLE FIXED ASSETS

Fixtures,
Land &
fittings
buildings
& equipment
£
£
COST
At 1 September 2019
9,375,967
899,468
Additions
8,588
2,647
At 31 August 2020
9,384,555
902,115
DEPRECIATION
At 1 September 2019
2,084,863
619,166
Charge for year
190,898
45,511
At 31 August 2020
2,275,761
664,677
NET BOOK VALUE
At 31 August 2020
7,108,794
237,438
At 31 August 2019
7,291,104
280,302
16.
STOCKS
Stocks
17.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income		 Groundsman's
equipment
& minib
uses
£
64,725
-
64,725
62,828
494
63,322
1,403
1,897
31.8.20
£
22,423
31.8.20
£
958,676
652
19,219
978,547		 Totals
£
10,340,160
11,235
10,351,395
2,766,857
236,903
3,003,760
7,347,635
7,573,303
31.8.19
£
25,058
31.8.19
£
37,652
401
31,501
69,554

continued...

Page 21

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts (see note 20)
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income
Accrued expenses		 31.8.20
£
385,496
40,101
41,364
58,044
1,019,215
36,875
1,581,095		 31.8.19
£
541,061
41,315
40,129
57,144
53,931
50,920
784,500

Included within creditors is deferred income of £1,009,641 (2019: £33,430) which relates to the Autumn 2020 school term.

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 20)
Other creditors		 31.8.20
£
1,347,023
68,750
1,415,773		 31.8.19
£
1,465,025
72,830
1,537,855

20. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year on demand:
Bank overdraft
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal		 31.8.20
£
271,850
113,646
385,496
119,737
255,495
971,791		 31.8.19
£
429,290
111,771
541,061
113,725
363,045
988,255

Included within creditors falling due within one year are bank loans totalling £113,646 (2019: £111,771) and included within creditors falling due after more than one year are bank loans totalling £1,347,023 (2019: £1,465,025). The loans are secured by way of a legal charge over the freehold property owned by the School. The interest rate on the loan with a balance of £537,552 at 31 August 2020 is charged at 2.5% above base rate.The interest rate on the loan with a balance of £923,117 at 31 August 2020 is fixed at 3.725% until February 2022. After this date, interest will be charged at 2.5% above base rate.

continued...

Page 22

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

21. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.8.20 31.8.19
£ £
Within one year 39,072 33,378
Between one and five years 31,621 46,796
70,693 80,174

22. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS		 At 1.9.19
£
5,346,386
5,346,386
Incoming
resources
£
3,293,971
3,293,971
At 1.9.18
£
5,381,789
5,381,789		 Net
movement
in funds
£
5,594
5,594
Resources
expended
£
(3,288,377)
(3,288,377)
Net
movement
in funds
£
(35,403)
(35,403)		 At
31.8.20
£
5,351,980
5,351,980
Movement
in funds
£
5,594
5,594
At
31.8.19
£
5,346,386
5,346,386

continued...

Page 23

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

22. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
3,215,632
3,215,632		 Resources
expended
£
(3,251,035)
(3,251,035)		 Movement
in funds
£
(35,403)
(35,403)

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 At 1.9.18
£
5,381,789
5,381,789		 Net
movement
in funds
£
(29,809)
(29,809)		 At
31.8.20
£
5,351,980
5,351,980

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
6,509,603
6,509,603		 Resources
expended
£
(6,539,412)
(6,539,412)		 Movement
in funds
£
(29,809)
(29,809)

23. EMPLOYEE BENEFIT OBLIGATIONS

Teachers' Pension Scheme

The School participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £281,878 (2019: £195,827) and at the year-end £31,135 (2019 - £25,998) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers' Pensions Regulations 2010 (as amended) and The Teachers' Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

continued...

Page 24

GRANGE ROSE HILL SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2020

23. EMPLOYEE BENEFIT OBLIGATIONS - continued

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the 'McCloud/Sargeant case'. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers' Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal's judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court's decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal's ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

24. RELATED PARTY DISCLOSURES

During the year, £15,253 (2019: £2,836) was paid to Cripps Pemberton Greenish, a firm in which one of the Governors is also a member.

During the year, three members of key management were reimbursed a total of £591 (2019: £2,714), in relation to expenses incurred.

Page 25