**Registered number: 01269507 Charity number: 273586**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 - 19|
|**Independent auditors' report on the financial statements**|20 - 23|
|**Statement of financial activities**|24|
|**Balance sheet**|25|
|**Statement of cash flows**|26|
|**Notes to the financial statements**|27 - 46|
## **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 2022**
|**Directors**|Andrew Grime, Chair of Governors1,2,3,4,5|
|---|---|
||James Brown, Equality, Diversity & Inclusion Governor (appointed 24 March
2022)1|
||Emma Bunting, Chair of Finance & Bursaries Committee1|
||Paul Carter, Deputy Chair of Governors, Deputy Chair of Curriculum & Learning
Committee & EYFS Governor2|
||Fraser Crewe, Chair of Estates & Compliance Committee3|
||Jeremy Dussek, Deputy Chair of Pastoral & Wellbeing Committee and Prevent
Governor (resigned 29 November 2022)4|
||Richard Flood, Deputy Chair of Estates & Compliance Committee (resigned 3
September 2021)3|
||Sean Gardner, Chair of Pastoral & Wellbeing Committee, Safeguarding Governor,
Careers Governor and GDPR Governor (resigned 13 January 2023)2,4|
||Roger Hoyle, Chair of Promotions & Communities Committee5|
||Tim Stanley, PSHE & RSE Governor1,5|
||Damian Stenhouse, Chair of Curriculum & Learning Committee, ECT, SEND and
MAGat Governor2|
> 1 Finance & Bursaries Committee
> 2 Curriculum & Learning Committee
> 3 Estates & Compliance Committee
> 4 Pastoral & Wellbeing Committee
> 5 Promotions & Communities Committee
Derek Bunting, Noel Dutton, Trevor Manning Foster (deceased 14/02/2022) and Jane Robinson are Foundation Governors who are entitled to atttend Directors' meetings but not to vote. Derek Bunting serves on the Finance & Bursaries Committee, Noel Dutton, Trevor Manning Foster (deceased 14/02/2022) and Jane Robinson serve on the Estates & Compliance 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 2022**
|**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**|C Jenkinson, Headteacher - Senior School (appointed 1 September 2021)|
|**team**|M Hickey, Headteacher - Infants & Juniors|
||G Allmand, Senior Deputy Headteacher (resigned 31 August 2022)|
||A Austin, Senior Deputy Headteacher (appointed 1 September 2022)|
||R Kennedy, Director of Finance and Operations (resigned 8 July 2022)|
Page 2
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022**
The Trustees present their Annual report together with the audited financial statements of the Deeside House Educational Trust Limited for the year 1 September 2021 to 31 August 2022. 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 2019).
## **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**
Trustees, Governors, Senior Leaders, Staff, Parents and Pupils respectively and appropriately contribute to the on-going review and implementation of the College’s Strategic Plan, which includes an Educational as well as a Business Development Plan.
Our vision is to be the school of first choice in the area for families who seek a personalised, caring, and safe educational environment, with excellent curricular and co-curricular provision, and a commitment to preserve, protect, and progress the world we all share.
In support of the College’s vision, our mission is, within our safe and caring community, that each one of our pupils will become the best that they can be, and have the self-belief to go forward into this changeable world with courage and with compassion.
Since foundation, the College has always aimed to develop and nurture each individual pupil’s character, personal skills, and attitude around a robust core of academic excellence. This is clearly defined by our revised, three, aspirational pillars:
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities (continued)**
All aspects of our curricular and co-curricular programmes, as well as our continuing development and evolution as a school, aim to establish a strong foundation of life-long resilience, compassion, and creativity, so that each pupil will become an adult with the self-worth, purpose, and courage to thrive in a future world, which they will help to shape for the good of themselves and others.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities (continued)**
## **c. Activities undertaken to achieve objectives**
- In the academic year of 2021-2022, headline developments included:
- 1) A new Head from September 2021, with strong leadership experience in both UK and international schools.
- 2) A review and re-launch of the College’s vision, mission, and aims, as above.
- 3) A review and re-launch of the College’s code of conduct for all pupils, as our community moved on from lockdowns and the substantial impact of the 2020/21 pandemic.
- 4) The appointment of a new Manager of Marketing & Promotions, who is making much clearer, for the benefit of all, what the College’s core purpose is and our visual identity.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities (continued)**
- 5) A review and re-launch of the College’s House system, in full consultation with students across all years. In addition to the pastoral benefits of vertical grouping within the College’s otherwise traditional structure by year group, the fundamental purpose of our Houses to support “Service” to others is more evidently defined and enabled.
- 6) A review and re-design, led mainly through student consultation, of our College uniform, to include improved gender neutrality within the clothing options.
- 7) A developmental prioritisation of the emotional and physical safety of all students and staff, specifically within the COVID-context, but also enabling evolved procedures for disclosures, sharing, and behaviour management. This included, for example:
- a. An anonymised, digital safeguarding reporting/sharing tool for students;
- b. A new digital platform for recording and monitoring safeguarding issues;
- c. Increased CCTV across the whole College;
- d. Improvements to site security generally across the whole College;
- e. Advocacy with the local council in relation to road crossing safety at Saighton Grange;
- f. Restrictions on students’ use of mobile phones/devices during the school day.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities (continued)**
- 8) A developmental prioritisation of contextual wellbeing, from specific, professional counselling expertise and mental health support, to integrated ways of being, working, and learning each day. This included, for example:
- a. Reviewed & increased non-contact for some staff, particularly pastoral;
- b. Appointment of a new HR Manager i/c Staff Wellbeing;
- c. Weekly services of an additional, professional counsellor as well as a therapist, alongside our existing pastoral teams and expertise;
- d. Reviewed suicidality protocols;
- e. Appointment of a new catering company from Summer ’22 across the College, with staff, student, and parental consultation;
- f. Affiliation with ‘ThoughtBox’ and their Triple Wellbeing Award: Self-Care, People-Care, Earth-Care;
- g. Review of facilities & spaces, including a re-furbishment of our Sixth Form & Learning Enrichment/Support areas, with the kind support of a generous benefaction.
- 9) A developmental prioritisation of student agency in both academic learning as well as personal growth, with a specific focus on feedback, formative assessment, metacognition, student voice, and leadership responsibilities. This included, for example:
- a. Assessment feedback to feed-forward & pupil response practices;
- b. Increasing value-added outcomes at GCSE & A level;
- c. Evolving student leadership, with 3 Heads of School, each with a clear leadership role in their title, moving on from gender-defined titles;
- d. Developing 3 ‘Student Agencies’ of pupil voice groups and committees across all years: i. Self: Learning & Wellbeing & Diversity ii. Service: Houses & Charities & Projects iii. Sustainability: Ecology & Digital
- e. Re-connecting with and developing further our PTA & Parent Reps.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities (continued)**
- 10) A developmental prioritisation of higher order pedagogical practice in lessons, enabling a variety of ‘stretch & challenge’ for all pupils, and including enhanced provision for those identified as more able, gifted, and talented (MAGaT). This included, for example:
- a. A new Senior School staff lead for MAGaT provision, and learner profiles for MAGaT pupils;
- b. Staff training, discussion & priority focus;
- c. Creation of a Teaching & Learning policy, with a staff group of pioneers; d. Work with the ‘Student Agency’ for ‘Self’.
- 11) A developmental prioritisation of digital innovation for all pupils and staff, to maximise the effectiveness of remote/blended/hybrid teaching and learning, as well as the use of devices in lessons. This included, for example:
- a. Upgraded Wi-Fi across the whole College, with upgraded network cabinet & switches; b. Upgraded cyber-security and insurance;
- c. Surface Pro devices for all staff from Sept. ’22, led by a staff group of Digital Pioneers; d. Work with the ‘Student Agency’ for ‘Sustainability’;
- e. The selection of and migration to a new Management Information System across the whole College from Sept. ’22.
## **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 much-valued education to 498 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 and the ongoing investment in the College, and are consistent with our vision, mission, and aims.
Along with all schools in the country in 2021-22, many of the College’s educational and/or public benefit initiatives were limited, restricted or curtailed because of the prevailing pandemic-related context. However, despite these challenges, the College still made every effort to serve others as much as possible.
- 1) Examples of how our local community benefited from the College’s grounds and facilities: a. Weekly use by Chester Hockey Club
- b. Termly and holiday clubs run by AJ Huddart (Dodgeball and Tennis)
- c. Weekly football run by Eaton Estates
- d. Weekly football run by local pub – Rake and Pikel
- e. Weekly use by Farndon Netball Club
- f. Weekly football run by Chester Nomads Junior Football Club
- g. Weekly football run by MPH Coaching
- h. Weekly football run by Andrew Whiton
- i. Weekly netball run by Boughton Belles
- j. Termly hire by Chester Music society
- k. Trinity Music Exams
- l. Go Kids Go – Wheelchair sports
- 2) Examples of direct service/outreach in the local community:
- a. Spirit of Christmas – online charity concert for Neuro Muscular Centre
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Objectives and activities (continued)**
- 3) Examples of direct service/outreach in the wider, global community: a. Service project with ‘Sense Africa’ and our link-village in Eswatini – the student and staff expedition to Mlindzini High School took place in July ’22.
- b. As Ukrainian refugees arrived in the Chester area, we actively supported host families by: i. organising collection of goods & clothes
- ii. designing, making, and promoting yellow and blue Sunflowers, sold and worn in support those suffering from the consequences of war
- iii. providing non-fee/100% bursarial education for 2 Senior School refugee pupils.
- 4) Examples of indirect service through charitable fund-raising:
- a. £1254 was raised for ‘Children in Need’
- b. £250 was raised for Charlie Waller Trust
- c. £269 was raised for the Save the Children Christmas Jumper Day
- d. £2000 was raised for Visyon, a mental health charity for young people
- e. £2000 was raised for Ark Angels, which supports local animals in need
- f. £1030 was raised for the College’s Ukrainian Sunflower Appeal
- 5) Examples of educational partnership/benefit in the local community:
- a. Subsidised ‘Brain Day’ lecture for Sixth Form scientists at Christleton High School;
- b. Relationship established with Chester International School for shared initiatives;
Opportunities for the education of pupils whose parents cannot afford to pay full fees are provided through the bursary scheme. Parents benefited to the extent of £67,130 in respect of 18 pupils in the year. The College engaged the services of an external, specialist company to review and advise on all bursarial applications, and help to ensure that the College’s practice and decisions are appropriately monitored and managed, with ongoing consideration of equality, diversity, and inclusion perspectives.
Other fee awards in the year including scholarships, which were not means-tested, sibling and staff discounts were £236,418.
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.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Strategic report**
## **Achievements and performance**
## **a. Financial achievements of the College**
The Statement of Financial Activities for the year ended 31 August 2022, which forms part of the financial statements that follows this report, shows a surplus of £149,629 The corresponding surplus for the previous year was £409,069. The inflationary increase in fees as from 1 September 2021 was 2% resulting in gross fees for the year of £6,344,011 (2021: £6,156,211).
The net cash inflow from operating activities was £652,497 (2021: £1,052,727). The net inflow, which is fully explained in the Statement of Cash Flows on page 23, is principally the result of the surplus for the year and additional fees received in advance. Payments to acquire tangible fixed assets were £252,673 (2021: £182,044). Cash at bank increased to £3,639,768 from £3,313,534, however this includes £600,000 of a Government backed Covid Interruption Business Loan (CIBL) taken out in the previous financial year which has subsequently been repaid after the 31 August 2022.
Net current assets at 31 August 2021 of £1,430,676 decreased slightly to £1,363,534 at 31 August 2022 as a result of movement in creditors.
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 & 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. The average pupil roll for the year was 498. Year 7 intake for September 2021 was around 60 and 45 in the Lower Sixth/Year 12.
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 towards the Bursary Fund.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
## **Inspection**
A Regulatory Compliance Inspection was carried out by the Independent Schools Inspectorate (ISI) in February 2018.
An Educational Quality Inspection, including a Focused Compliance Inspection, was also carried out by the Independent Schools Inspectorate in April 2022.
Copies of the respective reports are in the public domain and also available on the College’s website at https://abbeygatecollege.co.uk.
In the most recent report, inspectors agreed that: “The school is successful in meeting its aim to enable pupils to have the self-confidence to go forward into the changeable world with courage and compassion.”
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
## **Academic & Other Achievements**
Despite a decrease in headline attainment at national level, as all schools’ results returned, post-lockdowns, to examiner assessment, as compared with school-based assessment in 2020 and 2021; results for Abbey Gate College continued to improve at both A level and GCSE.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
Page 13
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
Page 14
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
Page 15
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
## **c. Factors relevant to achieve objectives**
Additional to activities undertaken to achieve objectives, parental and pupil surveys confirmed:
## **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.
## **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.
Page 16
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **b. Reserves policy**
The charitable company has total funds at 31 August 2022 of £6,193,959 (2021: £6,044,330) of which unrestricted funds are £6,180,226 (2021: £5,999,807) and restricted funds £13,733 (2021: £44,523). Of the unrestricted funds, £189,915 (2021: £200,000) have been designated to a Bursary Fund (£39,915) and a Capital Fund (£150,000). Tangible fixed assets are £5,533,315 (2021: £5,489,580) thereby resulting in positive free reserves of £456,996 (2021: free reserves of £310,227).
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.
## **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 on-going and no less than annual basis, with a full Risk Register maintained by the College and the Board of Governors.
## **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 Finance Manager are invited to, and report at, these meetings. In addition, the Board meets as necessary without the Head Teacher and Finance Manager 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.
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## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Structure, governance and management (continued)**
## **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 and the Head Teacher. The Directors meet once a year to review salary benchmarking information relating to this position and set salary and benefit packages accordingly.
## **e. Organisational structure and decision making**
The Board appoints a Head Teacher who is responsible for the overall leadership, management and day to day running of the College and is supported by Leadership Teams of senior and middle leaders.
5 sub-committees operate within the governing structure:
- 1) Curriculum & Learning
- 2) Pastoral & Wellbeing
- 3) Finance & Bursaries
- 4) Promotions & Communities
- 5) Estates & Compliance
Specific Terms of Reference exist for each sub-committee along with a regular routine of reporting to the Board each term.
## **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 2023 based on tight financial management with associated fees at as low a level is considered prudent after considering the needs of the College. Significant investment in new facilities will only be undertaken when resources permit.
## **Funds held as custodian**
No assets are held as custodian trustees.
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**DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 . 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: 23rd March 2023
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## **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 2022 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 2022 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 20
## **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 21
## **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 22
## **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
Date:
Page 23
## **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 2022**
|**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**
18|**Restricted**
**funds**
**2022**
**£**
**26,255**
**-**
**-**
**26,255**
**57,045**
**57,045**
**(30,790)**
**44,523**
**(30,790)**
**13,733**|**Unrestricted**
**funds**
**2022**
**£**
**-**
**6,711,659**
**1,410**
**6,713,069**
**6,532,650**
**6,532,650**
**180,419**
**5,999,807**
**180,419**
**6,180,226**|**Total**
**funds**
**2022**
**£**
**26,255**
**6,711,659**
**1,410**
**6,739,324**
**6,589,695**
**6,589,695**
**149,629**
**6,044,330**
**149,629**
**6,193,959**|_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_|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 27 to 46 form part of these financial statements.
Page 24
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee) REGISTERED NUMBER: 01269507**
## **BALANCE SHEET AS AT 31 AUGUST 2022**
|**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
**Total net assets**
**Charity funds**
Restricted funds
18
Unrestricted funds
18
**Total funds**|**-**
**220,465**
**3,639,768**
**3,860,233**
**(2,496,699)**|**2022**
**£**
**5,533,315**
**5,533,315**
**1,363,534**
**6,896,849**
**(702,890)**
**6,193,959**
**13,733**
**6,180,226**
**6,193,959**|_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_
_44,523_
_5,999,807_
_6,044,330_|
|---|---|---|---|---|
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: 23rd March 2023
The notes on pages 27 to 46 form part of these financial statements.
Page 25
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022**
|**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
Repayments of borrowing
Bank investment interest received
**Net cash (used in)/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|**2022**
**£**
**652,497**
**-**
**(252,673)**
**(252,673)**
**-**
**(75,000)**
**1,410**
**(73,590)**
**326,234**
**3,313,534**
**3,639,768**|_2021_
_£_
_1,052,727_
_4,154_
_(182,044)_
**(177,890)**
_600,000_
_-_
_61_
**600,061**
**1,474,898**
_1,838,636_
_3,313,534_|
|---|---|---|
The notes on pages 27 to 46 form part of these financial statements
Page 26
**DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 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.
## **2.3 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.
Page 27
**DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **2. Accounting policies (continued)**
## **2.3 Income (continued)**
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.
## **2.4 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.
## **2.5 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.
## **2.6 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.
## **2.7 Tangible fixed assets and depreciation**
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 28
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **2. Accounting policies (continued)**
## **2.7 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
## **2.8 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
## **2.9 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.
## **2.10 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.
## **2.11 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.
## **2.12 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 29
**DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **2. Accounting policies (continued)**
## **2.13 Operating leases**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.
## **2.14 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.
## **2.15 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.
## **2.16 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 30
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 2022**
_Total 2021_|**Restricted**
**funds**
**2022**
**Unrestricted**
**funds**
**2022**
**£**
**£**
26,255
-
-
-
26,255
-
_12,000_
_36,433_|**Total**
**funds**
**2022**
**£**
**26,255**
**-**
**26,255**
_48,433_|_Total_
_funds_
_2021_
_£_
_12,000_
_36,433_|
|---|---|---|---|
||||_48,433_|
|||||
## **5. Income from charitable activities**
|**Unrestricted**
**funds**
**2022**
**£**
Teaching
6,711,659
**Total 2022**
6,711,659
_Total 2021_
_6,312,263_|**Total**
**funds**
**2022**
**£**
**6,711,659**
**6,711,659**
_6,312,263_|_Total_
_funds_
_2021_
_£_
_6,312,263_|
|---|---|---|
|||_6,312,263_|
||||
Page 31
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **6. Analysis of income from charitable activities by type of income**
|Gross fees receivable
Less: scholarships, bursaries and other
discounts
Other income from charitable activity
Bursary donations
**Total 2022**
_Total 2021_|**Restricted**
**funds**
**2022**
**Unrestricted**
**funds**
**2022**
**£**
**£**
-
6,344,011
-
(262,425)
-
630,073
26,255
-
26,255
6,711,659
_-_
_6,312,263_|**Total**
**funds**
**2022**
**£**
**6,344,011**
**(262,425)**
**630,073**
**26,255**
**6,737,914**
_6,312,263_|_Total_
_funds_
_2021_
_£_
_6,156,211_
_(311,948)_
_447,721_
_20,279_|
|---|---|---|---|
||||_6,312,263_|
|||||
## **7. Investment income**
|**Unrestricted**
**funds**
**2022**
**£**
Other investment income
1,410
**Total 2022**
1,410
_Total 2021_
_61_|**Total**
**funds**
**2022**
**£**
**1,410**
**1,410**
_61_|_Total_
_funds_
_2021_
_£_
_61_|
|---|---|---|
|||_61_|
||||
Page 32
**(A company limited by guarantee)**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **8. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Teaching
Catering Costs
Bus costs
Premises
Support costs of schooling
Governance
**Total 2022**
_Total 2021_|**Restricted**
**funds**
**2022**
**Unrestricted**
**funds**
**2022**
**£**
**£**
-
3,964,643
-
402,989
-
211,403
-
815,906
57,045
1,116,166
-
21,543
57,045
6,532,650
_-_
_5,951,688_|**Total**
**2022**
**£**
**3,964,643**
**402,989**
**211,403**
**815,906**
**1,173,211**
**21,543**
**6,589,695**
_5,951,688_|_Total_
_2021_
_£_
_3,759,034_
_313,054_
_184,200_
_730,461_
_952,086_
_12,853_|
|---|---|---|---|
||||_5,951,688_|
|||||
## **Summary by expenditure type**
|Teaching
Catering Costs
Bus costs
Premises
Support costs of schooling
Governance
**Total 2022**
_Total 2021_|**Staff costs**
**2022**
**£**
3,707,239
-
-
142,053
537,653
-
4,386,945
_4,158,253_|**Depreciation**
**2022**
**£**
60,748
11,948
-
130,189
6,054
-
208,939
_234,476_|**Other costs**
**2022**
**£**
196,656
391,041
211,403
543,664
629,504
21,543
1,993,811
_1,558,959_|**Total**
**2022**
**£**
**3,964,643**
**402,989**
**211,403**
**815,906**
**1,173,211**
**21,543**
**6,589,695**
_5,951,688_|_Total_
_2021_
_£_
_3,759,034_
_313,054_
_184,200_
_730,461_
_952,086_
_12,853_
_5,951,688_|
|---|---|---|---|---|---|
Page 33
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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|**2022**
**£**
**208,938**
**114,851**
**11,700**
**1,800**
**337,289**|_2021_
_£_
_234,312_
_104,704_
_11,500_
_1,475_|
|---|---|---|
|||_351,991_|
## **10. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2022**
**£**
**3,403,377**
**355,286**
**628,282**
**4,386,945**|_2021_
_£_
_3,237,178_
_325,326_
_595,749_|
|---|---|---|
||||
|||_4,158,253_|
The average number of persons employed by the College during the year was as follows:
|Teaching Staff
Support Staff|**2022**
**No.**
**81**
**28**
**109**|_2021_
_No._
_77_
_30_|
|---|---|---|
||||
|||_107_|
Page 34
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **10. Staff costs (continued)**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
||**2022**|_2021_|
|---|---|---|
||**No.**|_No._|
|In the band £60,001 - £70,000|**2**|_1_|
|In the band £70,001 - £80,000|**1**|_1_|
|In the band £100,001 - £200,000|**-**|_1_|
Key management personnel received remuneration during the year of £337,401 (2021: £331,766)
## **11. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2021 - £NIL)_ .
During the year ended 31 August 2022, expenses totalling _£_ 823 were reimbursed or paid directly to 2 Trustees _(2021 - £930 to 2 Trustees)_ . The expenditure related to travel expenses and retirement gifts.
Page 35
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **12. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2021
Additions
At 31 August 2022
**Depreciation**
At 1 September 2021
Charge for the year
At 31 August 2022
**Net book value**
At 31 August 2022
_At 31 August 2021_
**Stocks**
Consumables|**Long-term**
**leasehold**
**property**
**£**
**5,266,414**
**17,480**
**5,283,894**
**245,510**
**45,374**
**290,884**
**4,993,010**
_5,020,904_|**Motor**
**vehicles**
**£**
**105,997**
**-**
**105,997**
**93,242**
**3,188**
**96,430**
**9,567**
_12,755_|**Fixtures and**
**fittings**
**£**
**2,180,685**
**235,193**
**2,415,878**
**1,724,764**
**160,376**
**1,885,140**
**530,738**
_455,921_
**2022**
**£**
**-**|**Total**
**£**
**7,553,096**
**252,673**|
|---|---|---|---|---|
|||||**7,805,769**|
|||||**2,063,516**
**208,938**|
|||||**2,272,454**|
|||||**5,533,315**|
|||||_5,489,580_|
|||||_2021_
_£_
_8,244_|
## **13. Stocks**
Page 36
**(A company limited by guarantee)**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **14. Debtors**
|**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**2022**
**£**
**132,322**
**7,610**
**80,533**
**220,465**|_2021_
_£_
_36,185_
_24,902_
_140,524_|
|---|---|---|
||||
|||_201,611_|
## **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 2022, and within creditors; amounts falling due within one year, is £34,061 (2021: £27,428). The income paid into these accounts in the year to 31 August 2022 of £7,827 (2021: £5,443) 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 £1,194 (2021: £546) in the year.
## **16. Creditors: Amounts falling due within one year**
|Bank loans
Fees in advance
Trade creditors
Advance fee contracts
Repayable deposits
Other taxation and social security
Other creditors
Accruals and deferred income|**2022**
**£**
**150,000**
**1,317,745**
**120,492**
**37,990**
**18,000**
**263,616**
**405,676**
**183,180**
**2,496,699**|_2021_
_£_
_75,000_
_1,527,307_
_70,634_
_68,659_
_18,000_
_77,368_
_148,232_
_107,513_|
|---|---|---|
||||
|||_2,092,713_|
Page 37
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **17. Creditors: Amounts falling due after more than one year**
|Bank loans
Repayable deposits
Advance fee contracts|**2022**
**£**
**375,000**
**303,415**
**24,475**
**702,890**|_2021_
_£_
_525,000_
_288,460_
_62,466_|
|---|---|---|
||||
|||_875,926_|
The bank loan is secured against a legal charge held by Natwest over the leasehold property of the charitable company.
## **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 2021
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 2022**|**2022**
**£**
**131,125**
**-**
**(68,660)**
**-**
**62,465**|_2021_
_£_
_82,232_
_80,167_
_(31,274)_
_-_|
|---|---|---|
|||_131,125_|
Page 38
**(A company limited by guarantee)**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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|**2022**
**£**
**18,000**
**74,000**
**229,415**
**321,415**|_2021_
_£_
_18,000_
_74,000_
_214,460_|
|---|---|---|
|||_306,460_|
Page 39
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **18. Statement of funds**
## **Statement of funds - current year**
|**Balance at 1**
**September**
**2021**
**£**
**Unrestricted funds**
**Designated funds**
Bursary fund
**50,000**
Capital fund
**150,000**
**200,000**
**General funds**
General Funds - all funds
**5,799,807**
**Total Unrestricted funds**
**5,999,807**
**Restricted funds**
Restricted Funds - all funds
**44,523**
**Total of funds**
**6,044,330**|**Income**
**£**
**Expenditure**
**£**
**-**
**(10,085)**
**-**
**-**
**-**
**(10,085)**
**6,713,069**
**(6,522,565)**
**6,713,069**
**(6,532,650)**
**26,255**
**(57,045)**
**6,739,324**
**(6,589,695)**|**Balance at**
**31 August**
**2022**
**£**
**39,915**
**150,000**|
|---|---|---|
|||**189,915**|
|||**5,990,311**|
|||**6,180,226**|
|||**13,733**|
|||**6,193,959**|
Page 40
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **18. Statement of funds (continued)**
## **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.
During the year £10,085 (2021:£nil) was expended in relation to the Bursary Fund.
## **Restricted funds**
Restricted income includes donations received during the year of £26,255 (2021:£12,000) for the development of teaching facilities and bursaries. £57,045 (2021:£nil) was utilised during the year to support pupils through the bursary scheme. The restricted fund balance for teaching facilities and bursaries is £nil (2021:£30,790).
£nil (2021:£nil) of the £10,000 restricted donation received in 2014/15 was expended for visits to the Royal Philharmonic, with £3,800 remaining. The restricted fund also includes £9,933 for a variety of purposes.
Page 41
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **18. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Bursary fund
Capital fund
**General funds**
General Funds - all funds
**Total Unrestricted funds**
**Restricted funds**
Restricted Funds - all funds
**Total of funds**|_Balance at_
_1 September_
_2020_
_£_
_-_
_-_
_-_
_5,602,738_
_5,602,738_
_32,523_
_5,635,261_|_Income_
_£_
_-_
_-_
_-_
_6,348,757_
_6,348,757_
_12,000_
_6,360,757_|_Expenditure_
_£_
_-_
_-_
_-_
_(5,951,688)_
_(5,951,688)_
_-_
_(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_|
Page 42
**(A company limited by guarantee)**
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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**
**2022**
**Unrestricted**
**funds**
**2022**
**£**
**£**
-
5,533,315
13,733
3,846,500
-
(2,496,699)
-
(702,890)
13,733
6,180,226|**Total**
**funds**
**2022**
**£**
**5,533,315**
**3,860,233**
**(2,496,699)**
**(702,890)**
**6,193,959**|
|---|---|---|
## **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_
_2021_
_£_
_-_
_44,523_
_-_
_-_
_44,523_|_Unrestricted_
_funds_
_2021_
_£_
_5,489,580_
_3,478,866_
_(2,092,713)_
_(875,926)_
_5,999,807_|_Total_
_funds_
_2021_
_£_
_5,489,580_
_3,523,389_
_(2,092,713)_
_(875,926)_
_6,044,330_|
|---|---|---|---|
Page 43
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 on the sale of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
Increase in creditors
**Net cash provided by operating activities**
**21.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**22.**
**Analysis of changes in net debt**
**At 1**
**September**
**2021**
**£**
Cash at bank and in hand
**3,313,534**
Debt due within 1 year
**(281,659)**
Debt due after 1 year
**(813,460)**
**2,218,415**|**2022**
**£**
**149,629**
**208,938**
**(1,410)**
**-**
**8,244**
**(18,854)**
**305,950**
**652,497**
**2022**
**£**
**3,639,768**
**3,639,768**
**Cash flows**
**£**
**326,234**
**(312,007)**
**135,045**
**149,272**|_2021_
_£_
_409,069_
_234,312_
_(61)_
_568_
_3,211_
_5,160_
_400,468_
_1,052,727_
_2021_
_£_
_3,313,534_
_3,313,534_
**At 31**
**August**
**2022**
**£**
**3,639,768**
**(593,666)**
**(678,415)**
**2,367,687**|
|---|---|---|
Page 44
**DEESIDE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **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 2022 were £32,603 (2021: £18,121) and the amounts payable at 31 August 2022 was £21,264 (2021: £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.
- 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 £595,547 (2021: £577,628) and the amounts payable at 31 August 2022 was £280,107 (2021: £nil).
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.
Page 45
## **DEESIDE HOUSE EDUCATIONAL TRUST LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **24. Operating lease commitments**
At 31 August 2022 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|**2022**
**£**
**153,039**
**463,938**
**881,925**
**1,498,902**|_2021_
_£_
_104,923_
_382,960_
_962,100_|
|---|---|---|
||||
|||_1,449,983_|
The following lease payments have been recognised as an expense in the Statement of financial activities:
||**2022**|_2021_|
|---|---|---|
||**£**|_£_|
|Operating lease rentals|**114,851**|_104,704_|
## **25. Related party transactions**
During the year, 2 Directors received reimbursement of expenses in the amount of £823 (2021: £930 relating to 2 Directors), relating to travel costs.
During the year, one child of one Director and four grandchildren of three other Directors attended the college (2021: two children of one Director and five grandchildren of three other Directors). Fee discounts are awarded on the same basis as available to other parents.
## **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 46