**Registered number: 01269507 Charity number: 273586**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the College, its Directors and advisers**|1 - 2|
|**Trustees' report**|3 - 15|
|**Independent auditors' report on the financial statements**|16 - 19|
|**Statement of financial activities**|20|
|**Balance sheet**|21|
|**Statement of cash flows**|22|
|**Notes to the financial statements**|23 - 42|
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COLLEGE, ITS DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021**
**Directors** Emma Bunting, Chair of Finance[1] Paul Carter, Deputy Chair of Governors[5] Fraser Crewe, Chairman of the Estates Committee (appointed 24 June 2021)[3] Brian M. Dawson (resigned 15 June 2021)[1][,][4] Jeremy Dussek, Deputy Chair of Safeguarding Committee[4] Richard Flood, Deputy Chair of Estates Committee (resigned 3 September 2021)[3] Sean Gardner, Chair of Safeguarding Committee[2][,][4] Andrew Grime, Chair of Board[1][,][2][,][3][,][4][,][5][,][6][,][7][,][8] Roger Hoyle, Chair of Promotions Committee (appointed 26 November 2020)[8] Tim Stanley[1][,][8] Damian Stenhouse, Chair of Education Committee (appointed 26 November 2020)[2][,][6] Edward Trevor-Barnston, Chair of Promotions Committee (resigned 10 August 2021)[8] Brian Wake, Company Secretary[3]
> 1 Finance Committee
> 2 Education Committee
> 3 Estates Committee
> 4 Safeguarding Committee
> 5 EYFS and Junior School responsibility
> 6 SEND Governor
> 7 PREVENT Governor
> 8 Promotions Committee
Derek A. Bunting, Noel Dutton, Trevor Manning Foster and E. Jane Robinson are Foundation Governors who are entitled to atttend Directors' meetings but not to vote. Derek A. Bunting serves on the Finance Committee, Noel Dutton, Trevor Manning Foster and E. Jane Robinson serve on the Estates Committee.
**Company registered number** 01269507 **Charity registered number** 273586 **Principal and Registered** Saighton Grange **office** Saighton Chester CH3 6EN
Page 1
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COLLEGE, ITS DIRECTORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
|**Company secretary**|Brian Wake|
|---|---|
|**Independent Auditors**|WR Partners|
||Chartered Accountants|
||Belmont House|
||Shrewsbury Business Park|
||Shrewsbury|
||Shropshire|
||SY2 6LG|
|**Bankers**|National Westminster Bank|
||Union Street|
||Chester|
||CH1 1UA|
|**Solicitors**|Jolliffe & Co|
||Exchange House|
||White Friars|
||Chester|
||CH1 1DP|
|**Insurance Brokers**|Hettle Andrews|
||2 Brunswick Square|
||Birmingham|
||B1 2LP|
|**Senior management**|Mrs T Pollard, Headmistress (Retired 31 August 2021)|
|**team**|Mr C Jenkinson, Headmaster (Started 1 September 2021)|
||Mr G Allmand, Deputy Head|
||Mrs R Kennedy, Director of Finance and Operations|
Page 2
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021**
The Trustees present their annual report together with the audited financial statements of the Deeside House Educational Trust Limited for the year 1 September 2020 to 31 August 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) as amended by Update Bulletins 1 and 2.
## **Objectives and activities**
## **a. Policies and objectives**
The charitable company is established to promote and provide for the advancement of education. It has established Abbey Gate College, Chester (the College) to provide a first class education of high academic standard, with individual attention being given to each child. All pupils are encouraged to extend themselves to their full potential both academically and personally.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **b. Strategies for achieving objectives**
The review of the Strategic Plan establishes a clear direction for the College with teaching, learning and pastoral care at its core. Ensuring the continued improvement in standards, results and the educational experience for all pupils is our primary focus for the future.
Regular contact with parents is maintained throughout the year by informal contact, letters from the Leadership Team, letters via Clarion Call, a text and email messaging service, information presented to pupils through the pupil portal of the Virtual Learning Environment (VLE) and to parents via the parental VLE, the termly Broadsheet publication and weekly Infant and Junior School newsletter. Pupils have Form Tutors, Heads of Year, a Head of House and a Head of Key Stage responsible for their pastoral care and academic development, under the guidance of the Head of Pastoral.
Pupils are also members of a Pastoral House; there are three houses at both the Junior School and the Senior School. This house system provides continuity of care throughout and gives a structure for competitions, motivating pupils through the awarding of House Points and raising money for charitable causes.
In addition, the College seeks to play a significant part in the life of the community by providing access to the facilities and as a venue for external music examinations.
Staff and pupils are actively encouraged to participate in community and charity activities both collectively and individually.
In order to promote continuity for families, fee reductions are available to parents who have more than one child at the College and bursary awards are made annually to assist parents to meet the fees in circumstances where they would not otherwise be able to do so.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Objectives and activities (continued)**
## **c. Activities undertaken to achieve objectives**
The Abbey Gate College mission statement is:
_“At Abbey Gate College, our children are at the heart of everything we do. We promote a love of learning, academic ambition and excellence within a welcoming, safe and caring community. We nurture our pupils’ potential, encourage aspiration and develop their understanding of the wider world. Together, we strive to make a positive contribution to society. We foster an environment in which achievement and personal development in all contexts is celebrated and endeavour is recognised. Pupils are instilled with a ‘can do’ attitude giving them the confidence to make a difference and ‘Be Someone’.”_
## **Aims**
At Abbey Gate College, we aim to inspire our pupils to:
- Achieve individual academic excellence
- Become happy, confident, fulfilled and resilient young people
- Embrace enrichment opportunities to discover and realise their full potential
- Enjoy learning and be ambitious
- Become tolerant individuals with respect for others
- Develop a strong moral code and be responsible members of society
In achieving these aims, the College builds the self confidence of pupils and prepares them for the opportunities, responsibilities and experiences for the next chapters in their lives.
In setting the objectives for the year and planning the activities the Directors have given careful consideration to the Charity Commission’s general guidance on public benefit.
Abbey Gate College is committed to welcoming children from all backgrounds. Before admitting a pupil the Head Teacher satisfies herself that the College will be able to educate and develop the pupil to the best of their potential and in line with the general standards achieved by their peers. Entrance interviews, assessments and references are undertaken in order to provide the assurance, and to assure parents, that prospective pupils can cope with the pace of learning and benefit from the education provided. An individual’s economic status, gender, ethnicity, race, religion or disability do not form part of the assessment processes.
Abbey Gate College is an equal opportunity organisation and is committed to a working environment that is free from any form of discrimination on the grounds of race, ethnicity, religion, gender, sexual orientation or disability. Reasonable adjustments are made to meet the needs of staff and pupils who are, or become, disabled. There is a rigorous anti bullying policy in force.
The College is committed to safeguarding and promoting the welfare of pupils and insists that all staff and volunteers share this commitment.
Parents are given information about their children’s social and academic progress through Parents’ Evenings in addition to end of year reports and regular progress and/or assessment cards.
The whole school targets for the year to 31 August 2021, which have been achieved, included:
- To maximize pupils’ academic achievement through effective feedback, tracking and intervention;
- To encourage pupils to take responsibility for their personal development and academic progress;
- To create environments in which collaborative learning takes place and
- To develop and embed strategies for well being and resilience in pupils and staff.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Objectives and activities (continued)**
Whilst the College now has the benefit of planning permission for the addition of two new Science Labs and a re modelled Sixth Form Centre, major capital projects were put on hold in light of the pandemic. Nevertheless, smaller but still significant improvements were made to the infrastructure. The roll out of LED lighting has continued. A much-needed theatre projector has been purchased which will improve the quality of our productions, a Bratt pan has also been purchased and the catering team await the fitting of this new equipment, whilst we liaise with the Estate on gas trench works. Pupil and staff laptops have been bought and this will continue with further purchases of ICT equipment for both staff and pupils as we develop our innovative technologies.
## **d. Main activities undertaken to further the College's purposes for the public benefit**
The Directors maintain due regard to the Charity Commission’s revised guidance on public benefit.
The College provided a first-class education to 499 pupils during the year at no cost to the UK Treasury. Pupils are prepared for the opportunities, responsibilities, and experiences of later life. Fees are set at as low a level as possible whilst ensuring the financial viability of the College and are consistent with the aim of providing a first-class education to boys and girls.
The College shares its facilities and expertise with community organisations wherever possible.
The report will make mention of activities in pre-Covid times in order to put into context the plans for the future.
A number of local cricket teams have and continue to benefit from the use of the College’s facilities, both for winter nets practice as well as outdoor matches in the summer months. Several regional football tournaments have also been hosted including ones for independent schools and local state secondary schools. The sports facilities, including the playing fields, outside courts, sports hall and all weather pitch have also been used by a range of other groups including local football teams, Chester Hockey, Boughton Belles netball club, and the Beth Tweddle Gymnastics club. Before Covid, a local primary school also made use of the all weather surface for the benefit of its pupils.
Previously the College has played host to the charity ‘Go Kids Go’ which saw youngsters use the College grounds to help them learn how to manoeuvre themselves around in a wheelchair via a ‘Wheelchair Mobility Workshop’ as well inviting local primary schools to the College to take part in exciting workshops; now that the ‘educational bubbles’ have been removed, the College will look to open its doors to its community once more. Previous events have included a Science Day, a Harry Potter themed day, an Inter School Quiz which is held for local primary schools using the College’s facilities and expertise of the College staff and where parents of the pupils and staff from the primary schools are also invited to be an audience at the event. A Careers Fair has previously been organised for Year 5 pupils from local primary schools and the College’s careers coordinator, in liaison with careers service MPloy, have arranged for a number of businesses to attend the event and the have pupils enjoyed a morning learning about the fire service, the NHS and engineering amongst many others. As soon as we can host these events on site once more, such opportunities will be explored for the benefit of our local partners.
Choral music continues to be a considerable strength of the College in terms of the standards achieved and levels of participation. It plays a significant part in the College’s contribution to the musical life of the wider Chester community. Our choir and musical ensembles regularly perform at events for the local community and while previous events included: at Chester Cathedral for the Neuro muscular charity; for Nat West in Chester; at a Christmas Concert at St. Werburgh’s Church Chester; and at the Christmas lunch of the Chester Business Network, there are plans to once again provide music for a range of local, regional and national events and services, beginning with College recitals and a service at Chester Cathedral. A local chamber music society has also made use of the facilities in the music school as does The Trinity College of Music.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Objectives and activities (continued)**
Service learning, including fund raising for charity and raising awareness are an important part of the College ethos. The charities ‘Trauma Response Network’ and ‘Young Carers’ were nominated for fund raising efforts through the College house scheme during the last few years and both benefitted from a total of over £10,000 being raised. Other fund raising efforts at the Senior School include those for Children in Need and the British Legion Poppy Appeal. Charities for the academic year 2021/22 are planned to be Visyon, a mental health charity and Ark Angels, which supports local animals in need.
Just before Covid shut down the College’s outreach activities, plans were being made to link with the new local Care home, Deewater Grange. Now that society is opening up once again, the links that had been discussed can be explored once again. College’s established link with Saighton Primary School led to the Senior School being invited to take part in the recent school and community remembrance service in Saighton Village.
In July 2022 (postponed from 2020), a number of Sixth Form pupils and staff from the College are planning to visit the College’s partner school in Eswatini, Mlindzini High. Pupils are currently planning their visit and undertaking fundraising events to finance the trip.
Opportunities for education of pupils whose parents cannot afford to pay full fees are provided through the bursary scheme. Parents benefited to the extent of £74,118 in respect of 19 pupils in the year.
Other fee awards in the year including scholarships, which were not means tested, sibling and staff discounts were £223,935.
The availability of bursary and other means tested awards are, and will continue to be, publicised on the College website and by other means. In assessing means a number of factors are taken into consideration including family income, investments, savings and family circumstances. However, as there are no endowment funds in making awards the Board have to be mindful to ensure a balance between fee paying parents, many of whom make considerable personal sacrifices to fund their child’s education, and those benefiting from the awards. One important part of the work of the Promotions Committee has been to help raise non-fee income to provide an enhanced and equitable bursary provision. This work was adversely affected by the pandemic
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Strategic report**
## **Achievements and performance**
## **a. Main achievements of the College**
The Statement of Financial Activities for the year ended 31 August 2021, which forms part of the financial statements that follows this report, shows a surplus of £409,069 The corresponding surplus for the previous year was £279,186. The inflationary increase in fees as from 1 September 2020 was 0% resulting in gross fees for the year of £6,156,211 (2020: £6,046,340 before fee rebates relating to the pandemic of £276,756).
The net cash inflow from operating activities was £1,052,727 (2020: £191,482). The net inflow, which is fully explained in the Statement of Cash Flows on page 22, is principally the result of the surplus for the year and additional fees received in advance. Payments to acquire tangible fixed assets were £182,044 (2020: £150,978). Cash at bank increased to £3,313,534 from £1,838,636 at the previous year-end which includes £600,000 of a Government backed Covid Interruption Business Loan (CIBL)
Net current assets at 31 August 2020 of £407,042 increased to £1,430,676 at 31 August 2021 as a result of operating cash flows.
In order to be satisfied that the charitable company has adequate finance facilities to meet its obligations as they fall due and particularly when considering a project involving substantial expenditure, the Directors review detailed budgets and cash flow forecasts and regularly monitor progress against these forecasts. Forecasts are based on the number of pupils and staff in the College at commencement of the current academic year adjusted, when appropriate, to take account of significant changes as and when they happen.
As a charity, parents have the assurance that all the income of the College must be applied for educational purposes. Tax exemption, but not exemption from VAT, is available on educational activities and on investment income and gains provided these are applied for charitable purposes. In addition, a reduction in business rates on property occupied for charitable purposes is available. The financial benefits received from these tax exemptions are all applied for educational purposes and indirectly help to reduce fees and provide bursaries.
## **b. Review of activities**
## **Pupil numbers and fees**
Educational activities across a broad range of areas were carried out at the Infant and Junior School at Aldford and at the Senior School at Saighton from ages 4 to 18. Year 7 intake for September 2020 was 64 and 31 enrolled for the Lower Sixth.
The Board considers detailed budgets at their meeting in March of each year and set the fees for the forthcoming academic year at the lowest level they consider necessary to meet the running costs of the College and provide a modest surplus to enable the continued development of the facilities. In addition, parents are encouraged to contribute, by way of annual donations of £250, to assist with the cost of developing and modernising teaching facilities and equipment.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
## **Inspection**
A Regulatory Compliance Inspection was carried out by The Independent Schools Inspectorate (ISI) in February 2018. The College was found to be fully compliant, and a copy of the inspection report is available on the College’s website at https://abbeygatecollege.co.uk/
The College was due to have an Educational Quality Inspection in February 2021, this was postponed due to the pandemic. College staff prepare for the next inspection and await confirmation of the date.
## **Academic achievements**
. Our A level results this academic year were excellent with 100% pass rate and 94% of our students obtaining a grade of A* to C, there was much to celebrate. 90% of students gained a place at their first choice University with 45% progressing into highly competitive courses at Russell Group Universities.
We were delighted that 97% of all results awarded at GCSE level were Grades 9-4 and that 43% of the grades awarded were 9-7 in one or more of their subjects.
For the past four years our A level results, published by the Department for Education have placed us top or near to the top in the Chester and Cheshire West for Pupil Progress. This important document includes all state maintained and independent schools in the area and shows that on entry to Sixth Form our students achieved the best value-added score based on GCSE results in their actual examinations.
The Summer 2021 results were determined via Teacher Assessed Grades (TAGs). Pupils sat robust assessments during the end of the academic year. These assessments, along with work that had been completed earlier in the year, formed the Assessment Record that the TAGs were calculated from. Assessments were standardised against examination board criteria and moderated within department areas (supported by a member of the Leadership Team). Finally, the grades were scrutinised by the Headmistress to ensure they had been fairly determined (i.e., no unconscious bias had affected them), and that all College procedures had been followed.
## **Extra Curricular Activities**
In all cases the involvement in extra-curricular activities from September 2020 until June 2021 was sparse and sporadic, with visits and activities only starting to pick up towards the end of the summer term. We were, however, able to run several end-of-exam celebration trips for Upper Sixth and Year 11 pupils prior to their departure in June.
. A re-scheduled Activity Week saw lots of our youngsters being taken outside of their comfort zones and participating in a variety of trips and experiences. These included a number of adventurous and team building events for all Year groups, as well as a range of on-site activities including working with drones, a one-day film school, circus skills and careers planning for both Year 10 and Lower Sixth pupils. We were also able to run a number of postponed Duke of Edinburgh Award expeditions, enabling pupils to complete their Awards.
The College will seek to reinstate all possible activities when it is safe to do so and Government guidance allows it.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
Activities beyond the curriculum continue to enrich the educational and learning experiences for pupils of all ages. Our extra curricular activities calendar is varied and very full. We try to ensure that each pupil has access to as many activities as possible. Within the Music department each pupil has access to peripatetic music teachers who offer tuition in a wide range of musical instruments. The College is renowned for the high calibre of its Chapel Choir with strong links to Chester Cathedral. The choir tour frequently around the UK and to other cities abroad and performs annually at St Paul’s Cathedral.
Drama productions at the College are of a high standard across all age groups and plays are performed annually in the theatre at the Senior School.
Sport is an increasing area of strength due to the extension of the sporting facilities (Teaching and Sports Pavilion in June 2016 and All-Weather Pitch in January 2018). The College continues to compete in local, regional and national competitions across a range of year groups in a range of sports.
Our pupils take place in academic competitions, such as the Physics Olympiad, the UK Maths Challenge and the Young Enterprise Scheme. Many curriculum departments have created links with local, regional, national and international communities and these have included visits to local businesses, universities, field study centres both home and abroad and included specific educational trips pertinent to particular subjects.
The Duke of Edinburgh Scheme remains extremely popular, with a significant number of pupils participating at Bronze, Silver and Gold Level.
## **Other Activities**
Pupils take part in the creative arts across both sites and are prepared in order to compete in a variety of classes in the Chester Speech and Drama Festival and Shropshire Speech and Drama Festival.
As restrictions allow, our Chapel Choir alongside our Concert Band, the Syncopators, Saightonians and soloists will be once again involved in numerous performances, services and concerts throughout the year.
Our whole school charity for this year was the Carers Trust, rolled over from the 2019/20 academic year in order to continue to raise funds. We were able to present £3,307 to the Charity after a number of innovative and personal challenges completed by the pupils.
Promotion of literacy across all year groups once more led us to be involved in the Roald Dahl Foundation Readathon, the whole college participated in World Book Day and once again the BBC School Report Day challenged our youngsters to create film and editorial work across a range of subjects.
We are continuing to concentrate on promoting positive Mental Health and Wellbeing for all in this year and nearly 90% of all of our staff (teaching and support staff) have been successfully trained in the internationally accredited adult two day Mental Health First Aid course (by MHFA England), and half day ‘Mental Health Aware’ course. This training has proved vital in order to continue to support our children through their return to school and the current on going situation. The College continues to identify those pupils who may need a little extra support with their well being and are liaising with a counsellor to support any individual.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
## **Pastoral and Wellbeing**
Despite the significant pressures that our pupils have faced over the last year, we are extremely proud of how the vast majority have continued to cope with resilience and fortitude. Understandably, for some, there have been challenges that have needed input and support from teachers, pastoral team members and our College Counsellor. Through assemblies, Form Times and general contact with pupils, we have shared information about wellbeing and the importance of this being nurtured at all times.
For some pupils, the disruption to life and the limitations on their ability to socially integrate has resulted in them having to re-adjust to more ‘normal’ circumstances. The pastoral team have been busy supporting pupils in this regard.
## **c. Factors relevant to achieve objectives**
The key objectives for the year to 31 August 2021 are to continue to provide educational excellence in academic and extra curricular areas while responding to national changes in both specification and examination structure, to develop the curriculum further and enhance opportunities for pupils.
The whole school targets for the 2020/21 academic year are:
## **Pupils’ achievements**
- To maximise the academic achievement of all pupil groups through inspirational teaching, effective feedback and targeted intervention
- To embed effective independent learning skills in the delivery of the curriculum and encourage pupils to take responsibility for their learning
- To maximise pupils’ engagement and active involvement in all lessons
## **Pupils’ development**
- To embed strategies for wellbeing and resilience in pupils, in order to foster a growth mind-set
- • To ensure that pupils develop strong levels of tolerance and understanding (including the 9 protected characteristics) as a result of the effective teaching of Fundamental British Values
- To ensure that all pupils have knowledge of and access to a wide range of enrichment activities to encourage ambition, confidence and personal drive
## **d. Investment policy and performance**
The Charity has no endowment funds and, as the Board policy is to invest all surplus financial resources in improvements to the infrastructure of the College, there are no significant amounts available for investment. Surplus cash is placed with deposit taking institutions for short periods to maximise interest income.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Strategic report (continued)**
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Trust 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.
## **b. Reserves policy**
The charitable company has total funds at 31 August 2021 of £6,044,330 (2020: £5,635,261) of which unrestricted funds are £5,999,807 (2020: £5,602,738) and restricted funds £44,523 (2020: £32,523). Of the £5,999,807 unrestricted funds, £200,000 (2020:£nil) have been designated to a Bursary Fund (£50,000) and a Capital Fund (£150,000). Tangible fixed assets are £5,489,580 (2020: £5,546,569) thereby resulting in positive free reserves of £310,227 (2020: free reserves of £56,169).
It is the policy of the Board to invest all available resources in the development of the learning and teaching facilities at Abbey Gate College while exercising prudent financial management having regard to the future needs of the College.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **c. Principal risks and uncertainties**
The Directors are responsible for the management of the risks faced by the charitable company. They identify risks and assess the impact and establish controls to minimise the effect of major risks. A formal process of review of the risks is undertaken on an annual basis.
The major risks that have been identified in the Risk Register are:
- Impact of pandemic;
- External financial factors – increased cost as a result of Government or external decisions;
- Pupil numbers fall below that required to operate the College effectively and invest in future improvements;
- A serious accident or incident occurs involving the College and /or its pupils/staff, which has potential to harm reputation if not dealt with effectively;
- Failure of ICT equipment and systems;
- Failure to attract, recruit and retain high quality staff;
- Non compliance with legal and regulatory requirements including GDPR; and
The key controls in place are as follows:
- Articles of Association are documented;
- Formal meeting agendas are prepared and minutes of all Board and committee meetings are produced and circulated to all Board members and the Head Teacher and Bursar;
- Committee minutes are circulated to all Board members and the Head Teacher and Bursar;
- The Board approves, and annually reviews, terms of reference for all committees;
- Comprehensive strategic planning, budgeting and management reporting systems are in operation;
- A clearly defined organisational structure and lines of reporting are in place;
- Formal written policies and risk assessments on key issues are approved by the Board and Leadership Team and are reviewed regularly;
- The Board has established, and reviews, authorisation and approval levels which are disseminated;
- An induction process is in place for new Directors and all members of staff;
- Compliance is monitored by all Committees and a Compliance Officer has been appointed;
- Safeguarding procedures and policies are in place and adherence is monitored. These procedures include vetting as required by law, and the taking up of references for new employees;
- Health & Safety procedures and policies are in place and adherence is monitored. The Health and Safety Liaison Governor reports into the Estates Committee;
- A Critical Incident Management Plan is updated annually by the College Leadership Team and shared with all Directors and Staff;
- A strategic plan, business plan and College development plan are in place and reviewed by the Directors and Leadership Team to ensure alignment of key aims and objectives and track progress;
- A robust system for tracking and monitoring of pupils’ academic progress is in place, and appropriate actions and intervention strategies implemented as required to ensure pupils achieve their best possible results; and
- Clear role description, induction processes and career progression opportunities are in place for teaching and support staff, plus skills assessment and deputisation arrangements for key roles.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Structure, governance and management**
## **a. Constitution**
Deeside House Educational Trust Limited is registered as a charitable company limited by guarantee with charity number 273586 and was set up by a Memorandum of Association dated 29 February 2012.
The principal objects of the charitable company as set out in its Articles are to promote and provide for the advancement of education and, in connection therewith, to carry on any school for the education of children of either sex. The charitable company carries on its activities through Abbey Gate College.
## **b. Methods of appointment or election of Trustees**
The members of the charitable company appoint the Board of Directors. The Board of Directors is the Governing Body of the College and the Trustee Board of the charitable company. Board members receive no remuneration for their services as Trustees, Directors or Governors. They are legally responsible as charity Trustees, and as Directors and Governors, for the overall management and control of the charitable company and its educational establishment Abbey Gate College. The Board operates under agreed Terms of Reference and are required to confirm at each Board meeting whether or not they have any conflict of interest.
The Board meets at least once each academic term to review and approve the management affairs of the College and the Head Teacher and Bursar are invited to, and report at, these meetings. In addition, the Board meets as necessary without the Head Teacher and Bursar being present to review the affairs of the charity that do not impact directly on the College. Such matters relate principally to the succession of Board members and members of the charitable company.
The Board strives to maintain a broad range of skills within its membership and anyone expressing an interest in joining may be invited to do so by the Board. Recruitment to the Board is from within the membership of the charitable company and often follows an invitation to serve on one of the committees of the Board which enables individuals to offer advice in their particular field.
## **c. Policies adopted for the induction and training of Trustees**
An induction programme operates which involves familiarisation of new members with the organisation of the College and its affairs, clarifying their individual responsibilities, safeguarding induction and training, and ongoing attendance at appropriate external training sessions and conferences dependent on the needs identified.
## **d. Pay policy for senior staff**
The key management personnel of the charitable company comprise the Directors, the Head Teacher, the Director of Finance and Operations. The Directors meet once a year to review salary benchmarking information relating to these positions and set salary and benefit packages accordingly.
Page 13
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Structure, governance and management (continued)**
## **e. Organisational structure and decision making**
The Board appoints a Head Teacher who is responsible for the management and day to day running of the College and is supported by a Leadership Team. The Head Teacher determines the curriculum, admits pupils and also appoints, and is responsible for the management of, the teaching staff. The Director of Finance and Operations, who reports to the Head Teacher, is responsible for the day to day management of College finances, for the maintenance of the buildings, grounds and equipment, ICT infrastructure and the recruitment and management of nonteaching staff. The Board agrees the policies and the financial limits under which the Head Teacher and the Director of Finance and Operations operate and their detailed responsibilities and powers are set out in their job descriptions.
Five committees operate within the governing structure, the Finance Committee, an Estates Committee, Safeguarding Committee, Promotions Committee and an Education Committee. These operate as subcommittees of the Board and their responsibilities and authority levels are set out in Terms of Reference approved by the Board. Minutes of meetings of the committees are circulated to all Board members. The Head Teacher and the Director of Finance and Operations are invited to attend all meetings of these committees and designated members of the teaching and support staff are also invited to attend appropriate meetings of committees.
## **f. Financial risk management**
The Trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
## **Plans for future periods**
The Directors are mindful of the prevailing economic conditions and have set a revenue budget and capital expenditure plans for the year to 31 August 2021 based on tight financial management with associated fees at as low a level is considered prudent after considering the needs of the College. Investment in the new facilities referred to above, while being planned for, will only be undertaken when resources permit.
## **Funds held as custodian**
No assets are held as custodian trustees.
Page 14
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021**
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the College for the purposes of company law) are responsible for preparing the Trustees' report including the Strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees 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 College and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the College will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the College's transactions and disclose with reasonable accuracy at any time the financial position of the College 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 College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
## **Auditors**
The auditors, WR Partners, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
**Emma Bunting** Director Date: 17 May 2022
Page 15
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **Opinion**
We have audited the financial statements of Deeside House Educational Trust Limited (the 'college') for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of cash flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 16
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' Report and the Strategic Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
Page 17
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (CONTINUED)**
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, 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.
## **Auditors' responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant are those which relate to the reporting framework (The Charity SORP 2019), the relevant tax compliance regulations and the General Data Protection Regulation (GDPR).
We understood how the charitable company complies with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non-compliance that might have a material impact on the financial statements.
We reviewed the susceptibility of the charitable company’s financial statements to material misstatement including how fraud may occur by meeting with key management to understand where they considered there was a susceptibly to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant estimates used in preparing the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Page 18
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (CONTINUED)**
We reviewed the charitable company’s regulatory environment to ensure we could conclude that it had acted in accordance with the framework relevant to the charitable company and its environment and identify and instances of non-compliance. We also assessed the charitable company’s internal control procedures to ensure we could appropriately scrutinise these controls and establish whether our understanding of the control environment was sufficient to supplement our additional testing procedures.
The engagement team consisted of a team that the engagement partner believes is equipped with the relevant level of technical and charity awareness to carry out our work to the required standard.
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 Auditors' report.
## **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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
**Andrew Malpass BA FCA (Senior statutory auditor)** for and on behalf of
## **WR Partners**
Chartered Accountants Statutory Auditors Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG
17 May 2022
Page 19
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021**
|**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Investments
7
**Total income**
**Expenditure on:**
Charitable activities
8
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2021**
**£**
**12,000**
**-**
**-**
**12,000**
**-**
**-**
**12,000**
**32,523**
**12,000**
**44,523**|**Unrestricted**
**funds**
**2021**
**£**
**36,433**
**6,312,263**
**61**
**6,348,757**
**5,951,688**
**5,951,688**
**397,069**
**5,602,738**
**397,069**
**5,999,807**|**Total**
**funds**
**2021**
**£**
**48,433**
**6,312,263**
**61**
**6,360,757**
**5,951,688**
**5,951,688**
**409,069**
**5,635,261**
**409,069**
**6,044,330**|_Total_
_funds_
_2020_
_£_
_172,436_
_5,848,262_
_3,793_|
|---|---|---|---|---|
|||||_6,024,491_|
|||||_5,745,305_|
|||||_5,745,305_|
|||||_279,186_|
|||||_5,356,075_
_279,186_|
|||||_5,635,261_|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 23 to 42 form part of these financial statements.
Page 20
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **BALANCE SHEET FOR THE YEAR ENDED 31 AUGUST 2021**
|**Note**
**Fixed assets**
Tangible assets
12
**Current assets**
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
17
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
18
Unrestricted funds
18
**Total funds**|**8,244**
**201,611**
**3,313,534**
**3,523,389**
**(2,092,713)**|**2021**
**£**
**5,489,580**
**5,489,580**
**1,430,676**
**6,920,256**
**(875,926)**
**6,044,330**
**6,044,330**
**44,523**
**5,999,807**
**6,044,330**|_11,455_
_206,771_
_1,838,636_
_2,056,862_
_(1,649,820)_|_2020_
_£_
_5,546,569_
_5,546,569_
_407,042_
_5,953,611_
_(318,350)_
_5,635,261_
_5,635,261_
_32,523_
_5,602,738_
_5,635,261_|
|---|---|---|---|---|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
**Emma Bunting** Director Date: 17 May 2022
The notes on pages 23 to 42 form part of these financial statements.
Page 21
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021**
|**Note**
**Cash flows from operating activities**
Net cash used in operating activities
20
**Cash flows from investing activities**
Proceeds from the sale of tangible fixed assets
Capital expenditure
**Net cash used in investing activities**
**Cash flows from financing activities**
Cash inflows from new borrowing
Bank investment interest received
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
21|**2021**
**£**
**1,052,727**
**4,154**
**(182,044)**
**(177,890)**
**600,000**
**61**
**600,061**
**1,474,898**
**1,838,636**
**3,313,534**|_2020_
_£_
_191,482_
_2,600_
_(150,978)_
**(148,378)**
_-_
_3,793_
**3,793**
**46,897**
_1,791,739_
_1,838,636_|
|---|---|---|
The notes on pages 23 to 42 form part of these financial statements
Page 22
**DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. General information**
Deeside House Educational Trust Limited is a charitable company, limited by guarantee and incorporated in England and Wales. The members of the charity are the trustees named on page 1 of these accounts. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £20 per member of the charitable company.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the second edition of 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) (issued in October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Deeside House Educational Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **2.2 Company Status**
Deeside House Educational Trust Limited is a charitable company limited by guarentee. The Directors named on page 1 are the Trustees of the charitable company and the Governors of the educational establishment. The company is limited by guarantee of its members, who appoint the Board of Directors. In the event of the charitable company being wound up, the liability in respect of the guarentee is limited to £20 per member.
The charitable company constitues a public benefit entity as defined by FRS102.
## **2.3 Going concern**
After making enquires, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.
The Trustees have also assessed the potential impact on the future operations of the charitable company with regard to the Covid-19 outbreak. The charitable company is considered to be well positioned given the current environment with no impact on the going concern basis of the financial statements.
Page 23
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **2. Accounting policies (continued)**
## **2.4 Income**
All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charitable company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charitable company, can be reliably measured.
Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the charitable company's accounting policies.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the charitable company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 24
**DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **2. Accounting policies (continued)**
## **2.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Governance costs are those incurred in connection with administration of the charitable company and compliance with constitutional and statutory requirements.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charitable company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.7 Taxation**
The College is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the College is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **2.8 Tangible fixed assets and depreciation**
Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 25
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **2. Accounting policies (continued)**
## **2.8 Tangible fixed assets and depreciation (continued)**
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
- Long-term leasehold property 2% - 7% straight line Motor vehicles - 25% written down value - Fixtures and fittings 5% - 25% straight line
## **2.9 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
## **2.10 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.11 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.12 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the College anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
## **2.13 Financial instruments**
The College only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 26
**DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **2. Accounting policies (continued)**
## **2.14 Operating leases**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.
## **2.15 Pensions**
The College contributes to personal pension plans for non-teaching staff. Contributions to pension schemes are charged to expenditure as they become payable in accordance with the rules of the schemes.
The Teachers' Pension Scheme ("TPS") is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the College 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. TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.
## **2.16 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the College and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the College for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **2.17 Prepaid Fees Scheme**
The College operates a prepaid fees scheme and parents may, subject to contractual terms and conditions, pay to the College tuition fees in advance. The money may be returned subject to specific conditions.
Page 27
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **3. Critical accounting estimates and areas of judgment**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The College makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
- Depreciation rates are determined based on the estimated useful life of the asset.
- Residual value estimates are based on the estimated value at the end of the useful economic life of the asset.
## **4. Income from donations and legacies**
|Donations
Government Grants
_Total 2020_|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
12,000
-
-
36,433
12,000
36,433
_30,364_
_142,072_|**Total**
**funds**
**2021**
**£**
**12,000**
**36,433**
**48,433**
_172,436_|_Total_
_funds_
_2020_
_£_
_30,364_
_142,072_|
|---|---|---|---|
||||_172,436_|
|||||
## **5. Income from charitable activities**
|**Unrestricted**
**funds**
**2021**
**£**
Teaching
6,312,263
_Total 2020_
_5,848,262_|**Total**
**funds**
**2021**
**£**
**6,312,263**
_5,848,262_|_Total_
_funds_
_2020_
_£_
_5,848,262_|
|---|---|---|
||||
Page 28
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **6. Analysis of income from charitable activities by type of income**
|**Unrestricted**
**funds**
**2021**
**£**
Gross fees receivable
6,156,211
Less: scholarships, bursaries and other discounts
(311,948)
Other income from charitable activity
447,721
Bursary donations
20,279
**Total 2021**
6,312,263
_Total 2020_
_5,848,261_|**Total**
**funds**
**2021**
**£**
**6,156,211**
**(311,948)**
**447,721**
**20,279**
**6,312,263**
_5,848,261_|_Total_
_funds_
_2020_
_£_
_6,046,340_
_(611,736)_
_405,657_
_8,000_|
|---|---|---|
|||_5,848,261_|
||||
## **7. Investment income**
|**Unrestricted**
**funds**
**2021**
**£**
Other investment income
61
_Total 2020_
_3,793_|**Total**
**funds**
**2021**
**£**
**61**
_3,793_|_Total_
_funds_
_2020_
_£_
_3,793_|
|---|---|---|
||||
Page 29
**(A company limited by guarantee)**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **8. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Teaching
Catering Costs
Bus costs
Premises
Support costs of schooling
Governance
_Total 2020_|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
-
3,759,034
-
313,054
-
184,200
-
730,461
-
952,086
-
12,853
-
5,951,688
_1,681_
_5,743,624_|**Total**
**funds**
**2021**
**£**
**3,759,034**
**313,054**
**184,200**
**730,461**
**952,086**
**12,853**
**5,951,688**
_5,745,305_|_Total_
_funds_
_2020_
_£_
_3,658,077_
_212,545_
_181,789_
_673,189_
_1,003,705_
_16,000_|
|---|---|---|---|
||||_5,745,305_|
|||||
## **Summary by expenditure type**
|Teaching
Catering Costs
Bus costs
Premises
Support costs of schooling
Governance
_Total 2020_|**Staff costs**
**2021**
**£**
3,507,859
-
-
145,279
505,115
-
4,158,253
_4,129,157_|**Depreciation**
**2021**
**Other costs**
**2021**
**Total**
**funds**
**2021**
_Total_
_funds_
_2020_
**£**
**£**
**£**
_£_
90,062
161,113
**3,759,034**
_3,658,077_
5,891
307,163
**313,054**
_212,545_
-
184,200
**184,200**
_181,789_
135,501
449,681
**730,461**
_673,189_
3,022
443,949
**952,086**
_1,003,705_
-
12,853
**12,853**
_16,000_
234,476
1,558,959
**5,951,688**
_5,745,305_
_237,378_
_1,378,770_
_5,745,305_|
|---|---|---|
Page 30
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **9. Net Income/(Expenditure)**
This is stated after charging:
|Depreciation of tangible fixed assets:
- owned by the charity
Operating Lease Charges
Auditors Remuneration
Other Services|**2021**
**£**
**234,312**
**104,704**
**11,500**
**1,475**
**351,991**|_2020_
_£_
_237,377_
_104,704_
_9,625_
_1,475_|
|---|---|---|
|||_353,181_|
## **10. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2021**
**£**
**3,237,178**
**325,326**
**595,749**
**4,158,253**|_2020_
_£_
_3,227,136_
_316,274_
_585,747_|
|---|---|---|
||||
|||_4,129,157_|
During the year £0 (2020: £21,501) was paid in redundancy costs to employees. There was a balance of £0 (2020: £nil) outstanding at year end included within accruals.
The average number of persons employed by the College during the year was as follows:
|Teaching Staff
Support Staff|**2021**
**No.**
**77**
**30**
**107**|_2020_
_No._
_80_
_32_|
|---|---|---|
||||
|||_112_|
Page 31
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **10. Staff costs (continued)**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
||**2021**|_2020_|
|---|---|---|
||**No.**|_No._|
|In the band £60,001 - £70,000|**1**|_1_|
|In the band £70,001 - £80,000|**1**|_-_|
|In the band £100,001 - £200,000|**1**|_1_|
Key management personnel received remuneration during the year of £331,766 (2020: £257,322)
## **11. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2020 - £NIL)_ .
During the year ended 31 August 2021, expenses totalling _£_ 930 were reimbursed or paid directly to 2 Trustees _(2020 - £1,196 to 2 Trustees)_ . This expenditure related to travel expenses.
Page 32
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **12. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2020
Additions
Disposals
At 31 August 2021
**Depreciation**
At 1 September 2020
Charge for the year
On disposals
At 31 August 2021
**Net book value**
At 31 August 2021
_At 31 August 2020_
**Stocks**
Consumables|**Long-term**
**leasehold**
**property**
**£**
**5,177,073**
**89,341**
**-**
**5,266,414**
**207,554**
**37,956**
**-**
**245,510**
**5,020,904**
_4,969,519_|**Motor**
**vehicles**
**£**
**105,997**
**-**
**-**
**105,997**
**88,990**
**4,252**
**-**
**93,242**
**12,755**
_17,007_|**Fixtures and**
**fittings**
**£**
**2,097,319**
**92,703**
**(9,337)**
**2,180,685**
**1,537,276**
**192,104**
**(4,616)**
**1,724,764**
**455,921**
_560,043_
**2021**
**£**
**8,244**|**Total**
**£**
**7,380,389**
**182,044**
**(9,337)**
**7,553,096**
**1,833,820**
**234,312**
**(4,616)**
**2,063,516**
**5,489,580**
_5,546,569_
_2020_
_£_
_11,455_|
|---|---|---|---|---|
## **13. Stocks**
Page 33
**(A company limited by guarantee)**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **14. Debtors**
|**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**2021**
**£**
**36,185**
**24,902**
**140,524**
**201,611**|_2020_
_£_
_58,445_
_38,579_
_109,747_|
|---|---|---|
||||
|||_206,771_|
## **15. Cash at Bank**
Various society, sports and similar clubs maintain bank accounts which are administered by the College.
The balance on these various bank accounts is included within cash in bank at 31 August 2021, and within creditors; amounts falling due within one year, is £27,428 (2020: £22,531). The income paid into these accounts in the year to 31 August 2021 of £5,443 (2020: £17,557) is not income of the College and is therefore not included in incoming resources within the Statement of Financial Activities. The expenditure from these accounts was £546 (2020: £23,770) in the year.
Page 34
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **16. Creditors: Amounts falling due within one year**
|Bank loans
Fees in advance
Trade creditors
Advance fee contracts
Other taxation and social security
Other creditors
Accruals and deferred income
Repayable deposits
Deferred income at 1 September 2020
Resources deferred during the year
Amounts released from previous periods|**2021**
**£**
**75,000**
**1,527,307**
**70,634**
**68,659**
**77,368**
**148,232**
**107,513**
**18,000**
**2,092,713**
**2021**
**£**
**1,191,109**
**1,527,307**
**(1,191,109)**
**1,527,307**|_2020_
_£_
_-_
_1,191,109_
_70,095_
_36,302_
_152,429_
_150,693_
_31,194_
**17,998**|
|---|---|---|
||||
|||_1,649,820_|
|||_2020_
_£_
_1,484,467_
_1,191,109_
_(1,484,467)_|
||||
|||_1,191,109_|
Deferred income relates to fees paid in advance for the year 21/22.
## **17. Creditors: Amounts falling due after more than one year**
|Bank loans
Repayable deposits
Advance fee contracts|**2021**
**£**
**525,000**
**288,460**
**62,466**
**875,926**|_2020_
_£_
_-_
_272,962_
_45,388_|
|---|---|---|
||||
|||_318,350_|
The bank loan is secured against a legal charge held by Natwest over the leasehold property of the charitable company. The loan is repayable over a 5 year term and interest charges commence in the next financial year.
Page 35
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **Advance Fee Contracts**
Certain parents have entered into contracts to discharge, under certain conditions, the equivalent of up to severn years' tuition fees in advance. Amounts received from advanced fee contracts are included in cash at bank and are dealt with as unrestricted funds. Assuming the pupils concerned remain in College for the expected academic years, advance fees will be applied to fee income as follows:
## **Movements in the year were:**
|Balance at 1 September 2020
Amounts received in the year
Amounts utilised in the period in settlement of fees
Amounts accrued to contract as debt financing cost
**Balance at 31 August 2021**|**2021**
**£**
**82,232**
**80,167**
**(31,274)**
**-**
**131,125**|_2020_
_£_
_136,564_
_-_
_(54,332)_
_-_|
|---|---|---|
|||_82,232_|
## **Repayable Deposits**
Deposits are taken when pupils commence their education at the College and are repaid when the pupils leave. Hence, the College recognises the asset and the liability in the balance sheet. Assuming the pupils remain in the College for the expected academic years the deposits will be repaid as follows:
|Amounts repayable within one year
Amounts repayable between 1 to 5 years
Amounts repayable after 5 years|**2021**
**£**
**18,000**
**74,000**
**214,460**
**306,460**|_2020_
_£_
_17,999_
_74,000_
_198,962_|
|---|---|---|
|||_290,961_|
Page 36
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **18. Statement of funds**
**Statement of funds - current year**
|**Balance at 1**
**September**
**2020**
**£**
**Unrestricted funds**
**Designated funds**
Bursary fund
**-**
Capital fund
**-**
**-**
**General funds**
General Funds - all funds
**5,602,738**
**Total Unrestricted funds**
**5,602,738**
**Restricted funds**
Restricted Funds - all funds
**32,523**
**Total of funds**
**5,635,261**|**Income**
**£**
**Expenditure**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**6,348,757**
**(5,951,688)**
**6,348,757**
**(5,951,688)**
**12,000**
**-**
**6,360,757**
**(5,951,688)**|**Transfers**
**in/out**
**£**
**50,000**
**150,000**
**200,000**
**(200,000)**
**-**
**-**
**-**|**Balance at**
**31 August**
**2021**
**£**
**50,000**
**150,000**|
|---|---|---|---|
||||**200,000**|
||||**5,799,807**|
||||**5,999,807**|
||||**44,523**|
||||**6,044,330**|
## **Designated funds**
Bursary fund - Over the last 40 years the provision of bursary places has transformed lives, enabling pupils from all backgrounds to follow their dreams and become the person they want to be. The Abbey Gate College Bursary Fund provides children with the opportunity to realise their individual potential through an outstanding education, regardless of financial circumstances.
Capital fund - The Capital Fund was established in 2021 and has been set up to fund capital purchases and developments over the next 5 years. The college are looking to improve the school facilities in order to enhance the learning of pupils. Proposed projects include enhancing the refectory at the senior school, improving the sixth form provision and extending the science laboratories.
## **Restricted funds**
Incoming restricted fund resources includes £12,000 for the development of teaching facilities.
Incoming resources also includes £nil restricted donations for a variety of purposes (2020: £11,574) of which £nil (2020: £1,674) was expended in the year for the purposes of which the donations were received. The remaining £9,900 (2020: £9,900) is the closing balance of donations received. £nil (2020: £nil) of the £10,000 restricted donation received in 2014/15 was expended for visits to the Royal Philharmonic, with £2,038 remaining.
Page 37
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **18. Statement of funds (continued)**
|**Statement of funds (continued)**|||||
|---|---|---|---|---|
|**Statement of funds - prior year**
**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Restricted Funds - all funds
**Total of funds**|_Balance at_
_1 September_
_2019_
_£_
_5,352,235_
_3,840_
_5,356,075_|_Income_
_£_
_5,994,127_
_30,364_
_6,024,491_|_Expenditure_
_£_
_(5,743,624)_
_(1,681)_
_(5,745,305)_|_Balance at_
_31 August_
_2020_
_£_
_5,602,738_|
|||||_32,523_|
|||||_5,635,261_|
## **19. Analysis of net assets between funds Analysis of net assets between funds - current year**
|Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
-
5,489,580
44,523
3,478,866
-
(2,092,713)
-
(875,926)
44,523
5,999,807|**Total**
**funds**
**2021**
**£**
**5,489,580**
**3,523,389**
**(2,092,713)**
**(875,926)**|
|---|---|---|
|||**6,044,330**|
Page 38
**(A company limited by guarantee)**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **19. Analysis of net assets between funds (continued)**
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|_Restricted_
_funds_
_2020_
_£_
_-_
_32,523_
_-_
_-_
_32,523_|_Unrestricted_
_funds_
_2020_
_£_
_5,546,569_
_2,024,340_
_(1,649,821)_
_(318,350)_
_5,602,738_|_Total_
_funds_
_2020_
_£_
_5,546,569_
_2,056,863_
_(1,649,821)_
_(318,350)_
_5,635,261_|
|---|---|---|---|
## **20. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Interest income
Loss/(profit) on the sale of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Net cash provided by operating activities**
**21.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**|**2021**
**£**
**409,069**
**234,312**
**(61)**
**568**
**3,211**
**5,160**
**400,468**
**1,052,727**
**2021**
**£**
**3,313,534**
**3,313,534**|_2020_
_£_
_279,186_
_237,378_
_(3,793)_
_(1,865)_
_46,884_
_(90,322)_
_(283,681)_
_183,787_
_2020_
_£_
_1,838,636_
_1,838,636_|
|---|---|---|
Page 39
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **22. Analysis of changes in net debt**
|Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year|**At 1**
**September**
**2020**
**£**
**1,838,636**
**(187,037)**
**(272,962)**
**1,378,637**|**Cash flows**
**£**
**1,474,898**
**(94,622)**
**(540,498)**
**839,778**|**At 31**
**August**
**2021**
**£**
**3,313,534**
**(281,659)**
**(813,460)**
**2,218,415**|
|---|---|---|---|
## **23. Pension commitments**
## **Pension Arrangements**
The College offers membership of defined contribution "Stakeholder" schemes to non-teaching staff. The contributions to these schemes for the year to 31 August 2021 were £18,121 (2020: £22,830) and the amounts payable at 31 August 2021 was £nil (2020: £nil).
## **Teachers' Pension Scheme**
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in academies. All teachers have the option to opt-out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
## **The Teachers' Pension Budgeting and Valuation Account**
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:
- employer contribution rates set at 23.68% of pensionable pay (including a 0.08% administration levy)
- total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million, giving a notional past service deficit of £22,000 million.
Page 40
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **23. Pension commitments (continued)**
- the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI, assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.
The next valuation result is due to be implemented from 1 April 2023.
The pension costs paid to TPS in the year amounted to £577,628 (2020: £577,628).
A copy of the valuation report and supporting documentation is on the Teachers' Pensions website (www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuation-report.aspx).
Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The College has accounted for its contributions to the scheme as if it were a defined contribution scheme. The College has set out above the information available on the scheme.
## **24. Operating lease commitments**
At 31 August 2021 the College had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**2021**
**£**
**104,923**
**382,960**
**962,100**
**1,449,983**|_2020_
_£_
_104,923_
_382,960_
_1,042,275_|
|---|---|---|
||||
|||_1,530,158_|
## **25. Related party transactions**
During the year, 2 Directors received reimbursement of expenses in the amount of £930 (2020: £1,196 relating to 2 Directors), relating to travel costs.
During the year, two children of one Director and five grandchildren of three other Directors attended the college (2020: three children of two Directors and five grandchildren of two other Directors). Fee discounts are awarded on the same basis as available to other parents.
During the year, the College received services totalling £Nil (2020: £1,440) from Brownbread Group Limited, which the Director, S Gardner is involved with. There was no outstanding balance at year end (2020: £Nil).
Page 41
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **26. Controlling party**
The College, having no share capital, is under the control of the Board of Directors, who are also the Trustees of the College.
Page 42