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2021-08-31-accounts

Prior Park Educational Trust

(a company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

for the year ended 31 August 2021

Company Registration Number: 01521832 Charity Number: 281242

Contents Page
Trustees, Officers and Advisers 3 – 4
Annual Report of the Trustees 5 – 20
Independent Auditor’s Report 21 - 24
Consolidated Statement of Financial Activities 25
Consolidated and Charity Balance Sheets 26
Consolidated Statement of Cash Flows 27
Notes to the Financial Statements 28 - 52

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

Trustees, Officers and Advisers

President, Patrons and Trustees:

The members of the Governing Body who served in office as Trustees throughout the year and subsequently, unless otherwise stated, are detailed below:

PRESIDENT

Sister Jane Livesey CJ, MA (Cantab)

PATRONS

Miss J Bisgood CBE Mr C J B Davy CB Mr D R Hayes The Rt Rev DR Lang BA, Bishop of Clifton Mr F J F Lyons KSG Sir Cameron Mackintosh The Rt Hon the Lord Patten of Barnes CH Commodore C York, KSG

TRUSTEES COMMITTEES Mr J Shinkwin MA (Oxon), PGCE (Chair of Trustees) 5 (Chair), 6 Mr A Alves MA (Cantab) 1 (Chair), 3, 4, 5 Mrs S Hall, ACMA 1, 2 (appointed 01/09/2021) Mr S Head MA (Cantab) 7 (Chair) Mr W Hutchison BA 1, 8 (a ppointed 19/06/2020) Mr J Jarvis LLB, BVC 4 Mr L McKell MA, Med, PGCE 7, 8 (appointed 01/06/2021) Mrs M Moore BA 2 (Chair), 6 (a ppointed 03/10/2020) Rev Prebendary J N Rawlinson, MA, MB, BChir 2 FRCS, FRCEM, Cert Pall Med Dip Th Ms A Shepherd MBE, BA Hons 4 (Chair), 6 (Chair) Mrs J Singleton BA Hons, Dip TEFL 3 (Chair), 8 (Chair) Mr J Webster BA, BArch, MCD, RIBA, MRTPI 1, 3, 5, 9 (Chair) Mr P S J O’Donoghue MA, FCA 1, 2 (resigned 28/06/2021) Mrs N Pearson BA Hons PGCE 2, 8 (resigned 28/06/2021) Mr A Bury MBA, BSc Hons 1, 4 (resigned 25/03/2021) Mr A M H King (Chair of Trustees) 1 (resigned 31/08/2021)

ASSOCIATE GOVERNORS: PRIOR PARK COLLEGE

Mrs N Pearson BA Hons PGCE 2

ASSOCIATE GOVERNORS: THE PARAGON SCHOOL

Professor A Brandon-Jones PhD, PGDip, BSc Hons Mrs A-M Dempsey BCL

ASSOCIATE GOVERNORS: PRIOR PARK SCHOOL GIBRALTAR

Ms M Atack 4 Ms E Lang 4 Mr P Lyon 4 Rear Admiral N J Raby OBE, MSc 4 Mr C Risso 4

(1) Finance, Audit, Investment and Risk (FAIR) Committee (2) Prior Park College Board

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

(3) The Paragon School Board (4) Prior Park School Gibraltar Board

(5) Remuneration Committee

(6) Nominations Committee (7) Safeguarding Committee (8) Education Committee (9) Estates Committee

TRUST SCHOOLS:

Prior Park College The Paragon School Prior Park School Gibraltar

PRIOR PARK COLLEGE ADDRESS:

Prior Park College Ralph Allen Drive Bath, BA2 5AH

THE PARAGON SCHOOL ADDRESS:

The Paragon School Lyncombe House Lyncombe Vale Bath, BA2 4LT

PRIOR PARK SCHOOL GIBRALTAR ADDRESS:

Prior Park School Sacred Heart Terrace Old Town Gibraltar

KEY MANAGEMENT PERSONNEL & PROFESSIONAL ADVISERS:

The Head (College): Mr B Horan MA The Head (The Paragon School): Mrs R Allen, BA, PGCE The Head (Gibraltar): Mr P Watts BSc Director of Operations and Finance and Clerk to the Trustees: Ms E Sandberg LLB (Hons)

SOLICITORS:

Stone King 13 Queen Square Bath BA1 2HJ

BANKERS:

AUDITOR:

Barclays Bank Plc 4-5 Southgate Street Bath BA1 1AQ

RSM UK Audit LLP Chartered Accountants Hartwell House 55-61 Victoria Street Bristol, BS1 6AD

UK REGISTRATION:

GIBRALTAR REGISTRATION:

WEBSITE:

Charity No. 281242, Company No. 01521832 Charity No. 000272, Company No. 00113158 www.priorparkschools.com

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

INTRODUCTION

The Board of Trustees present their annual report for the year ended 31 August 2021 under the Companies Act 2006 and the Charities Act 2011, together with the audited financial statements for the year.

Prior Park Educational Trust (“the Trust”) is a company limited by guarantee and not having a share capital it is governed by its Memorandum and Articles of Association and is known as “Prior Park Schools”.

STRATEGIC REPORT

OBJECTS AND MISSION STATEMENT

The Objects of the Trust as defined in its Memorandum of Association are:-

The Mission Statement of Prior Park Schools is:

In setting our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit and, in particular, to its supplementary public benefit guidance on advancing education and on fee-charging. Further details of the Trust’s benefit to the public over the academic year can be seen in the public benefit and cohesion section on page 11. The Trust runs Prior Park College, The Paragon School and Prior Park School, Gibraltar.

The College and the Paragon School are both situated in Bath. The Paragon School has been part of the Trust since Paragon Educational Trust and Prior Park Educational Trust merged on 10 March 2006. Prior Park School Gibraltar was opened in September 2016.

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

TRUSTEES’ OBJECTIVES & KEY PERFORMANCE INDICATORS

The Trustees directed that the objectives for 2020/21 should be in line with the objectives for the previous year, as follows:

OBJECTIVE ASSESSMENT
To maintain the high level of all-round Christian
education (in the Catholic tradition) within the
schools of the Trust. An enduring objective.		 With the recent appointments of new Heads at Prior
Park College and the Paragon School new initiatives
will be undertaken to ensure the high level of education
across Prior Park Schools. The Prior Executive Board
is in place to ensure that the schools have the
appropriate level of executive leadership and that a
coherent approach is achieved across the Group.
To achieve a financial surplus in order to be able
to make continued investment in the facilities
needed to support the Trust’s activities. An
enduring objective.		 Due to the challenges caused by the Covid-19 pandemic
this objective was put under strain in 2019/20 with the
Trust nevertheless managing to make a small surplus
for the year, largely helped by £0.5m of funding from
the Government’s Furlough Scheme. The Trust made a
healthy surplus in 2020/21 as we started to come out of
the Covid pandemic and pupil numbers stayed strong.
To focus on affordability to ensure that a Prior
Park education remains accessible to as wide a
section of the population as possible.		 Regular affordability discussions are held at both the
FAIR and the full Governing Board meetings. This
issue receives the full attention of both Trustees and the
Prior Executive Board.
To continue to monitor opportunities to strengthen
the existing schools in Bath and Gibraltar
potentially through partnering or acquiring
existing or new schools in support of the Trust’s
primary objective of the advancement of education
within a Christian ethos and environment in the
Catholic Tradition.		 We continue to review opportunities both in the United
Kingdom and abroad to see if there is a fit with the Prior
Park Schools’ vision and ethos.

The Trustees have agreed a detailed set of Key Performance Indicators and performance measures with the Head of each school. These are in line with the vision of Prior Park Schools and the above objectives of the Trustees.

STRUCTURE AND DELIVERY OF GOVERNANCE

Responsibility for Prior Park Schools lies with the Board of Trustees. The Trustees are the Trustees of Prior Park Educational Trust and are the Directors of the Company. They are also the Members of the Company. In the course of administering the Charity, Trustees have paid due regard to the published Charity Commission guidance on the operation of the public benefit requirement.

Trustees are selected and appointed by a general meeting of the Members following the considerations and review of the Nominations Committee. The Articles of Association require that the majority of Trustees are Roman Catholics. There is a written policy for the recruitment of Trustees, and care is taken to ensure that they are drawn from a spread of educational, church, business and other backgrounds, besides maintaining a mix of genders. Written policies also cover the induction and training of Trustees, the avoidance of conflicts of interest and other responsibilities at this level.

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

The Board of Trustees meets once per term to consider matters of policy and strategy. The Board delegates many of its responsibilities to other committees but maintains oversight and responsibility for the decisions of these committees. The most significant of these sub-committees is the Finance, Audit, Investment and Risk (FAIR) Committee, which meets at least 4 times a year to exercise financial oversight and to make decisions on other matters on behalf of the full Board. In addition to the Trustees appointed to FAIR, the Chairs of the Local Boards are also invited to attend. Other Trustees may attend FAIR if they wish. The three Local Boards provide more immediate support and guidance for each school than can normally be provided by either the full Board of Trustees or the FAIR Committee.

Prior Park School Gibraltar is a separate company limited by guarantee and a charity registered in Gibraltar. Prior Park Educational Trust is its sole subscriber and exercises effective control via a majority of common directors. Other sub-committees cover Estates, Remuneration, Nominations, Safeguarding and Education. These committees report to the Board of Trustees (via the FAIR Committee), for their respective areas of responsibility.

The Heads of each Prior Park school and the Director of Operations and Finance, each of whose name is given on page 4, are responsible to the Trustees for the day-to-day management of each school and are the senior executives of Prior Park Schools. They meet frequently to review operational performance and to deliver the Trustees’ strategic intent. In addition, each school has an internal governance structure that includes weekly Senior Leadership Team (“SLT”) meetings and weekly senior support staff meetings.

The remuneration of key management personnel is considered by the Remuneration Committee and agreed by the Board of Trustees, with the objective of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly and responsibly for their individual contributions to the success of the Trust.

PERFORMANCE AND ACHIEVEMENTS 2020 – 2021

The number of pupils in Prior Park Schools between 1 September 2020 and 31 August 2021 averaged 1,074 compared to 1,055 in 2019-20.

Prior Park College

Prior Park College (the College) started the year with students returning to on-site classes following the disruption of lessons due to the pandemic. Students were issued with their own Personal Learning Devices (PLDs), school laptops on which lessons, communications with teachers, homework, etc, can be completed. These proved particularly invaluable as the country went back into lockdown during this academic year.

An outline of the 2020/21 school year is given below:

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

The Paragon School

The Paragon School averaged 260 on roll (including 9 in the Squirrels nursery) during 2020/21. Under the new leadership of Rosie Allen and with a new Registrar in place (Susie Rees-Jones), the school has emerged from the pandemic relatively unscathed. There has been a huge amount of interest in The Paragon from families who are relocating, particularly from London and overseas and numbers have remained stable into 2021/22.

Provision for the lockdown of 2021 was strong, with all pupils receiving online lessons for 4 x days a week and Fridays dedicated to STEM, Art, Music and Sport and Outdoor Learning which took the form of pre-recorded lessons. All pupils in Years 5& 6 were provided with a PLD and all other pupils were provided with iPads to ensure that they were able to access lessons. A keyworker club was provided throughout lockdown which was well attended, and Swainswick Explorers were employed each Friday to run outdoor learning sessions with keyworker club attendees. Squirrels continued to run for the duration of the lockdown.

An outline of the 2020-21 school year is given below:

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

Prior Park School, Gibraltar

Prior Park School Gibraltar (the School) started the year with students returning to on-site classes following the disruption of lessons in 2019/20 due to the pandemic.

An outline of the 2020/21 school year is given below:

Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

The waves of the COVID-19 pandemic meant that a large portion of the academic year was disrupted. The School quickly re-implemented a remote-learning programme for students during the government enforced lock-down, which meant that the School could continue to teach the curriculum to all year groups. Feedback on this programme continued to be overwhelmingly positive. Upper VI students who applied to University all received offers from various institutions (Durham, UCL, Sunderland, Oxford Brooke, Edinburgh, Leeds Beckett, Liverpool, De Montfort, Royal Holloway, Bristol).

PUBLIC BENEFIT AND COMMUNITY COHESION

Relief to Families

The Trust has confirmed its commitment for the provision of continued means-tested bursary funding for pupils whose parents would otherwise find the cost of an independent school education unaffordable and of continuing means-tested bursary support for pupils already in receipt of fee assistance through bursaries.

Bursaries are means-tested awards designed to assist pupils who otherwise would be unable to afford a Prior Park Schools education, or for current pupils whose parents have difficulty funding the fees following a change in family circumstances, thereby providing education continuity for the child.

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

The Trust has begun a campaign to raise funds for transformational bursaries. These bursaries are quite often in excess of 100% fee remission which helps cover the costs of uniform, school trips and visits back home. The Trust has teamed up with the charity, Royal Springboard, who help identify and prepare deserving young people for a fully funded place at a boarding school. The cost of one of these bursaries is more than £110,000 and it is hoped that every year, a young girl or boy will be awarded this life changing opportunity.

Relief to the State

During the period, Prior Park Schools educated a total of 1,074 pupils at no cost to the state of either the UK or Gibraltar.

Local Community Cohesion

Indoor and outdoor facilities are normally made available to approximately 20 clubs and six groups within the local community for the advancement of Christian education and/or the Roman Catholic faith.

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

FINANCIAL PERFORMANCE

A summary of the financial results for the year is set out in the consolidated statement of financial activities on Page 25 of the Financial Statements. The key financial indicators are detailed below:

These healthy results are a consequence of a number of contributing factors as follows: A strong level of pupil retention and recruitment across all schools with demand for places growing as a result of the pandemic this was aided by the decision by trustees to not raise the cost of school fees for the 2020/21 year; the first year of surplus for Prior Park School Gibraltar; tight control over the cost base including no pay rise for staff (including teaching increments) and furloughing staff during periods of lockdown; growth in the investment fund and sources of other income secured in year.

In the year ended 31 August 2021, means-tested bursarial awards with a value of £616,911 (2020: £727,263) (including awards of £102,175 (2020: £120,336) from restricted funds) were made. A total of 151 (2020: 146) pupils benefited from these awards. These awards helped to widen access to Prior Park Schools and helped support some current parents with payment towards their children’s school fees during 2020/21.

The Trustees intend to continue to allocate a significant budget to the provision of means-tested bursary support available to prospective applicants to Prior Park Schools. The financial support available ranges from 5% of fees to, in exceptional circumstances, 100% of fees, depending on need. Prior Park Schools total incoming resources limit the overall level of support available.

RESERVES POLICY

It is the general policy of Prior Park Educational Trust to apply as much of their surplus funds as possible towards its charitable objectives and to avoid accumulating excessive reserves. Where considered appropriate and being conscious not to over commit the Trust, borrowings are also considered to fund elements of significant capital projects.

In setting the reserves policy, account is taken of the Trust’s ongoing financial commitment in terms of staffing, technology projects and overheads, including the maintenance of its estates and buildings. The Trust also considers the risk that its income for any particular year may be impacted by a number of factors outside of its control such as political and economic changes, legislation in the industry and changes in the education sector.

The Trustees' policy is to ensure that there is a surplus on the unrestricted funds each year, to be applied for further capital investment in school facilities or in the reduction of borrowings. The Trustees’ aim is for an annual unrestricted fund surplus of 10% of total net income to be generated each year to allow for re-investment into the schools. This policy is supported by external financing as and when necessary, allocated to specific capital projects.

Having considered the above factors it is considered prudent to hold unrestricted liquid reserves at Group level of a minimum of one term’s essential running costs (£4.3m). Based on the position as at 31[st] August 2021, the Group’s liquid reserves currently exceed this level. This calculation will be reviewed and updated annually, as required.

Free reserves, as defined by the Charity Commission, are the undesignated general funds of the Charity excluding the funds invested in tangible fixed assets. If this adjustment was made to the school’s unrestricted reserves, there wouldn’t be any free reserves which is typical of many Independent schools (see notes 19 & 20 to the accounts). This is due to the need for continuing capital expenditure out of retained reserves. The borrowings to finance the building programmes both at Prior Park College and Prior Park School, Gibraltar are at a level which the Trustees are confident can be serviced, based on current cash flow projections. The Trustees are committed to improving

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

the level of reserves across the Group and will do this through the delivery of annual financial surpluses in each school.

The Trustees have also set up the Prior Park Schools 2030 Bursary Fund with the aim to build a bursary fund of £10m by 2030 to assist some parents with the payment of school fees via bursarial support. This fund will consist of a mix of Designated Funds from the Trust and Restricted Funds from donors.

The borrowings to finance the building programmes both at Prior Park College and Prior Park School, Gibraltar are at a level which the Trustees are confident can be serviced, based on current cash flow projections.

All restricted funds (as highlighted in note 19 to the accounts) have either already been spent on developing the schools or are fully committed to particular projects such as bursarial support, the entrepreneurial programme or sports facilities development projects.

The Group balance sheet shows fixed assets of £16,410,512 (2020: £16,460,383) but the majority of these could only be realised by disposing of fixed assets held by the Charity, principally the functional land and buildings from which the Charity carries out its activities.

INVESTMENTS POLICY

The Trust adopted an investment policy in May 2018 with the establishment of the Prior Park Schools 2030 Bursary Fund. This is annually reviewed and updated and currently stands as follows:

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

FUNDRAISING PERFORMANCE

Restricted donations totalling £287,137 (2020: 137,537) and unrestricted donations totalling £48,984 (2020: £0) were either received or pledged during the year. The major donations were towards: the Bursary Funds (both restricted and designated) (£225,662); the Heritage Fund (£63,400); the Sports Fund (£12,000) and the Chapel Fund (£7,809). Prior Park School, Gibraltar also received a donation of £25,000 towards the refurbishment of the outside Ball Court.

As referred to above, the Trustees established the Prior Park Schools 2030 Bursary Fund (designated) in October 2018 with an initial injection of funds totalling £2 million. The investment growth in these funds over this academic year was £347,819 (16%).

The Trustees have complied with the fundraising regulations in this regard by taking the following steps:

S172 STATEMENT

Section 172 of the Companies Act 2006 requires the directors to act in the way they consider, in good faith, would be most likely to promote the success of the charity to achieve its charitable purposes. The Act states that in doing so, the directors should have regard, amongst other matters, to:

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

We operate with local governance committees to ensure that each school is properly and fairly represented in all decisions. We will not unfairly discriminate against anyone and this is reflected in our range of policies.

PRINCIPAL RISKS AND UNCERTAINTIES

The process of identifying and assessing risks, then mitigating them by the establishment of appropriate controls, is continuous. Much of this task lies in the hands of the staff and executives of each school, but key arrangements established by the Trustees include:

The Trustees are satisfied that there is a suitable risk management process in place to plan and mitigate all major risks. This includes an annual review of the risk management policy and plan and scrutiny at both the school executive level and at by the FAIR Committee. However, systems and policies can only provide reasonable, not absolute, assurance that adverse events will not occur.

The key risks have been identified as follows:

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

since the last report regarding the major debtors. The Trust uses legal enforcement action and a debt collection agency to assist with the recovery process. This process has been particularly tightly run over the last six months with debt levels increasing due to pandemic and remedial action required to bring levels back under control.

GOING CONCERN

After making due enquiries, including review of latest financial data and future projections (three year budgets for each school and cash flow projections for the next two years) the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future.

The Trust has a healthy reserve position and with pupil numbers continuing to grow and the cost base under control the Group is in a strong financial position.

For these reasons they continue to adopt the going concern basis in preparing the financial statements.

DIRECTORS’ INDEMNITY INSURANCE

We can confirm that Directors’ Indemnity Insurance was in place for the 2020/21 academic year and going forwards. This is arranged through our broker Hettle Andrews with the cover provided by AXA Insurance UK Plc.

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

STREAMLINED ENERGY & CARBON REPORTING FOR PRIOR PARK SCHOOLS (UK)

GHG emissions and energy use data for period 1 September 2020 to 31 August 2021

Baseline Reporting Year
2019-2020		 Current Reporting Year
2020-2021
UK GHG Emission and
Energy Data (2020)		 UK GHG Emission and
Energy Data (2021)
Energy consumption used to calculate
emissions (kWh); all mandatory energy
sources are included.		 3,435,065.1 3,337,525.9
Scope 1: Emissions from the combustion of
Natural Gas tCO2e		 422.9 392.0
Scope 1: Emissions from combustion of
Fuel for transport and / or heating tCO2e
(see evidence pack for breakdown)		 39.4 41.8
Scope 1: Emissions of Biomass Pellets
tCO2e		 0.0 0.0
Scope 3: Emissions from business travel in
employee-owned vehicles, where the
company repaid mileage claims tCO2e
(average vehicle / fuel source unknown)		 0.7 0.7
Scope 2: Emissions from purchased
Electricity tCO2e		 232.5 224.1
Total gross CO2e based on above (tCO2e) 695.5 658.6
Intensity Ratio 1: kg CO2e gross based on
mandatory fields above per metre square of
Gross Internal Area:
(kg CO2e m-2), being20,039.2 m2		 34.7 kg CO2e m-2 32.9 kg CO2e m-2
Intensity Ratio 2: kg CO2e gross based on
mandatory fields above per pupil:858 UK
based pupils (2019)		 810.6 kg CO2e per Pupil
(858 Pupils)		 773.9 kg CO2e per Pupil
(851 Pupils)

METHODOLOGY

An evidence-based methodology was adopted in accordance with BS EN ISO 14064-3:2019, Section 4.3; verifiable data has been collected from the following sources:

Energy Data:

Energy Metering, Invoices, Supply Summaries / Statements, Repayment Claims for business mileage, Fuel Cards, and correspondence with suppliers.

Previous Audit Data: ESOS Phase 1 & Phase II, SECR Report 2019-20.

Emission Conversions: All emission factors for CO2e, have been calculated using Defra Conversions 2021, as the period covers four-months of 2020 and eight-months of 2021, in accordance with Defra guidelines.

THIRD PARTY VERIFICATION

The energy data has been compiled and audited by Sean Midgley (ESOS Lead Assessor) of Powerful Allies Limited, CIBSE Registration No: ESOS185262.

Company Registration Number: 01521832 Charity Number: 281242 17

Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

ENERGY EFFICIENCY ACTION

Prior Park Schools (PPS) have started a process of decarbonisation of the school estate as follows:

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

EMPLOYMENT POLICIES

EQUAL OPPORTUNITIES

The Trust have given due consideration to applicants and employees with disability as documented in our accessibility plan contained within our set of policies and procedures. The objectives of this policy are as follows:

The Prior Park Schools plan, over time, is to increase the accessibility of provision for all pupils, staff and visitors to the schools. The Accessibility Plan will contain relevant actions to:

This policy is reviewed and updated every three years. The Trust also applies its equal opportunities policy when reviewing candidates for roles at any of the Prior Park Schools. These policies can be accessed via the school’s website.

EMPLOYEE ENGAGEMENT

The Trust seeks to provide employees with information and increase employee engagement in many ways some of which are as follows:

BUSINESS RELATIONSHIPS

During the year the Trust collaborated with local businesses in the following areas:

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) ANNUAL REPORT OF THE TRUSTEES For the year ended 31 August 2021

CONNECTED AND RELATED ENTITIES

The following have not been incorporated in these financial statements as their activities are not under the control of the Trustees of Prior Park Educational Trust: Parents of Prior (POP), Paragon Parents Committee.

RESPONSIBILITIES OF TRUSTEES

The Trustees, (who are also directors of Prior Park Educational Trust for the purposes of company law) are responsible for preparing the Annual Report of the Trustees (and the incorporated 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 which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees confirm that they have complied with their duties in the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The Trustees have referred to the guidance in the Charity Commission’s general guidance on Public Benefit when reviewing the School’s aims and objectives and in planning the School’s future activities. In particular, the Trustees have considered how planned activities will contribute to the aims and objectives they have set.

The Trustees have taken all of the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

AUDITOR

A resolution to reappoint RSM UK Audit LLP as auditor for the ensuing year will be proposed at the annual general meeting.

The Annual Report of the Trustees, incorporating the Strategic Report, was approved by the Board of Trustees on Thursday 9th December 2021 and signed on its behalf by:

BY ORDER OF THE BOARD

Mr A Alves Date: 9[th] December 2021

Company Registration Number: 01521832 Charity Number: 281242

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Prior Park Educational Trust (a company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRIOR PARK EDUCATIONAL TRUST For the year ended 31 August 2021

Opinion

We have audited the financial statements of Prior Park Educational Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2021 which comprise the Consolidated Statement of Financial Activities (incorporating an income and expenditure account), the Group and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

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 group’s or parent 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.

Other information

The other information comprises the information included in the Annual Report of the Trustees other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report of the Trustees. 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.

Company Registration Number: 01521832 Charity Number: 281242

21

Prior Park Educational Trust (a company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRIOR PARK EDUCATIONAL TRUST For the year ended 31 August 2021

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Annual Report of the Trustees.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 20, 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 group’s and parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the

Company Registration Number: 01521832 Charity Number: 281242

22

Prior Park Educational Trust (a company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRIOR PARK EDUCATIONAL TRUST For the year ended 31 August 2021

financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team and component auditors:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the parent charitable company’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with local tax authorities and evaluating advice received from internal/external advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are The Education (Independent School Standards) Regulations 2014, Keeping Children Safe in Education under section 175 of the Education Act 2002, and the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls and income recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates, and performing substantive test of details over a sampling of income transactions.

All relevant laws and regulations identified at a Group level and areas susceptible to fraud that could have a material effect on the consolidated financial statements were communicated to component auditors. Any instances of non-compliance with laws and regulations identified and communicated by a component auditor were considered in our group audit approach.

Company Registration Number: 01521832 Charity Number: 281242

23

Prior Park Educational Trust (a company limited by guarantee) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PRIOR PARK EDUCATIONAL TRUST For the year ended 31 August 2021

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

ANNA SPENCER-GRAY (Senior Statutory Auditor)

For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Hartwell House 55-61 Victoria Street Bristol BS1 6AD

Date:

Company Registration Number: 01521832 Charity Number: 281242

24

Prior Park Educational Trust (a company limited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) for the year ended 31 August 2021

Unrest-
ricted
Notes
Funds
INCOME:
£
Income from charitable activities:
School fees receivable
2
14,364,418
Other educational income
3
1,515,947
Donations
4
48,984
Investment income
4,095
Other trading activities:
Rents and lettings
144,213
Other Income (Furlough Claim)
141,099
_
TOTAL INCOME
16,218,756
_
EXPENDITURE ON:
Charitable activities
5
14,473,557
Cost of raising funds
Fundraising
96,266
Finance costs
8
275,253
_
TOTAL EXPENDITURE
14,845,076
_
NET INCOME before gains on investments
1,373,680
Net gains on investments
11
347,819
NET MOVEMENT IN FUNDS
1,721,499
Fund balances brought forward (unrestricted)
15,186,813
Fund balances brought forward (restricted)
-
__
FUND BALANCES CARRIED FORWARD
16,908,312		 Rest-
ricted
2021
2020
Funds
Total
Total
£
£
£
-
14,364,418
13,575,683
-
1,515,947
1,266,463
287,137
336,121
137,537
-
4,095
38,774
-
144,213
122,415
-
141,099
550,104
_
_
_
287,137
16,505,893
15,690,976
_
_
_
189,504
14,663,061
15,011,214
-
96,266
95,635
-
275,253
315,238
_
_
_
189,504
15,034,580
15,422,087
_
_
_
97,633
1,471,313
268,889
-
347,819
66,286
97,633
1,819,132
335,175
-
15,186,813
14,765,646
2,345,461
2,345,461
2,431,453
_
_
__
2,443,094
19,351,406
17,532,274

All of the Trust’s activities relate to continuing operations.

The notes on pages 28 to 52 form part of these accounts

Company Registration Number: 01521832 Charity Number: 281242

25

Prior Park Educational Trust (a company limited by guarantee) GROUP AND CHARITY BALANCE SHEETS as at 31 August 2021

as at 31 August 2021
Group Charity
Notes 2021 2020 2021 2020
£ £ £ £
FIXED ASSETS
Tangible assets 10 16,410,512 16,460,383 14,144,286 14,205,019
Investments 11 2,410,534 2,212,715 2,410,534 2,212,715
Investments in subsidiaries 11 - - 7 7
__ __ __ __
18,821,046 18,673,098 16,554,827 16,417,741
CURRENT ASSETS
Stocks 12 4,641 6,429 4,641 6,429
Debtors 13 635,012 784,099 1,358,624 1,380,967
Cash at bank and in hand 9,496,801 6,298,539 7,962,827 5,543,132
__ __ __ __
10,136,454 7,089,067 9,326,092 6,930,528
CREDITORS: Amounts falling
due within one year 14 (5,531,133) (4,071,052) (4,629,888) (3,541,802)
__ __ __ __
NET CURRENT ASSETS 4,605,321 3,018,015 4,696,202 3,388,726
__ __ __ __
TOTAL ASSETS LESS CURRENT
LIABILITIES 23,426,367 21,691,113 21,251,029 19,806,467
CREDITORS: Amounts falling 15 (4,070,464) (4,147,259) (1,204,448) (1,263,875)
due after one year
Provisions 18 (4,497) (11,580) (4,497)
(11,580)
__ __ __ __
NET ASSETS 19,351,406 17,532,274 20,042,084 18,492,012
__ __ __ __
FUNDS
RESTRICTED 21 2,443,094 2,345,461 2,390,117 2,315,292
__ __ __ __
UNRESTRICTED
Designated 19 2,620,440 2,232,261 2,620,440 2,232,261
General 19 14,287,872 12,954,552 15,031,527 13,944,459
__ __ __ __
16,908,312 15,186,813 17,651,967 16,176,720
__ __ __ __
TOTAL FUNDS 19,351,406
__		 17,532,274
__		 20,042,084
__		 18,492,012
__

The parent company charity, whose net income for the year was £1,550,072 (2020: £286,065), has taken advantage of the exemption under S408 of the Companies Act 2006 of not disclosing its own income and expenditure account.

Approved by the Board of Trustees, and authorised for issue, on 9[th] December 2021 and signed on its behalf by:

A Alves ) ) Trustees J Shinkwin )

The notes on pages 28 to 52 form part of these accounts

Company Registration Number: 01521832 Charity Number: 281242

26

Prior Park Educational Trust (a company limited by guarantee) CONSOLIDATED STATEMENT OF CASHFLOWS for the year ended 31 August 2021

Company Registration Number: 01521832
Charity Number: 281242
Cash flows from operating activities:
Net cash provided by / (used in) operating activities
Interest paid
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Transfer from investments
Proceeds from the sale of property, plant & equipment
Purchase of property, plant & equipment
Net cash used in investing activities
Cash flows from financing activities:
Repayments of borrowing
Cash inflows from new borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Reconciliation of net income to net cash flow from operating activities
Net cash inflow from operating activities:
Net income for the reporting period
Adjustments for:
Depreciation charges
Other recognised gains
Dividends, interest and rents from investments
Interest payable
Decrease / (Increase) in stocks
Net gains on investments
Decrease in debtors
Increase / (Decrease) in creditors
Decrease in provision
Net cash provided by / (used in) operating activities
The notes on pages 28 to 52 form part of these accounts		 27
2021
2020
£
£
3,967,414
(215,032)
(100,378)
(108,162)
_
_
3,867,036
(323,194)
_
_
4,095
38,774
150,000
-
-
-
(757,095)
(214,698)
_
_
(603,000)
(175,924)
_
_
(65,774)
(66,962)
-
-
_
_
(65,774)
(66,962)
_
_
3,198,262
(566,080)
6,298,539
6,864,619
_
_
9,496,801
6,298,539
_
_
2021
2020
£
£
1,819,132
335,175
806,967
796,798
-
-
(4,095)
(38,774)
136,573
146,631
1,788
(1,377)
(347,819)
(66,286)
149,087
185,520
1,412,864
(1,523,699)
(7,083)
(49,020)
_
_
3,967,414
(215,032)
_
_

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

1 ACCOUNTING POLICIES

GENERAL INFORMATION

Prior Park Educational Trust (“the Company”) is a company limited by guarantee, domiciled and incorporated in England.

The Company meets the definition of a Public Benefit entity under FRS102.

The address of the Company’s registered office and principal place of business is Prior Park College, Ralph Allen Drive, Bath, BA2 5AH.

Throughout the year under review the Group consisted of Prior Park Educational Trust, Prior Park Enterprises Limited, Prior Park Holdings Limited and Prior Park School, Gibraltar.

The Company’s and the Group’s principal activities are detailed in the Trustees’ Report on pages 5 to 20. The nature of the Company’s operations and the Group’s operations are also detailed in this section.

BASIS OF PREPARATION

The accounts have been prepared under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice and Financial Reporting Standard hereinafter collectively referred to as “SORP (FRS102)”. The accounts are drawn up on the historical cost basis of accounting.

GOING CONCERN

After making due enquiries, including review of latest financial data and future projections (three year budgets for each school and cash flow projections for the next two years) the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future.

The Trust has a healthy reserve position and with pupil numbers continuing to grow and the cost base under control the Group is in a strong financial position.

For these reasons they continue to adopt the going concern basis in preparing the financial statements.

BASIS OF CONSOLIDATION

These financial statements consolidate the results, assets and liabilities of the School, it’s wholly owned non-charitable subsidiary (Prior Park Enterprises Limited), Prior Park Holdings Limited and Prior Park School, Gibraltar on a line by line basis. The results of the subsidiaries are included from the date on which the Trust took control of them. A separate statement of financial activities (including income and expenditure account) for the Charity itself is not presented as permitted by Section 408 of the Companies Act 2006.

REDUCED DISCLOSURES

In accordance with FRS 102, the Company has taken advantage of the exemptions from the following disclosure requirements:

Company Registration Number: 01521832 Charity Number: 281242

28

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

ACCOUNTING POLICIES (continued)

FEES

Fees receivable consist of charges billed for the school year ending 31 August 2021, less bursaries and allowances. Fees received for education to be provided in future years are carried forward within creditors as deferred income.

EXPENDITURE

Expenditure is accounted for on an accruals basis. Overhead and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year. The irrecoverable element of VAT is included with the item of expense to which it relates.

Governance costs comprise the costs of running the Charity. These include: strategic planning for its future development; external audit; legal advice for the Trustees; and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.

TANGIBLE FIXED ASSETS

Tangible fixed assets are stated in the balance sheet at cost less impairment and accumulated depreciation. Only assets individually costing more than £1,000 are capitalised.

DEPRECIATION

Depreciation is provided on all tangible fixed assets except land and assets under construction at rates calculated to write off the cost of each asset, less its estimated residual value, evenly over its expected useful life, as follows:


useful life, as follows:
Freehold buildings - Buildings - 50 years (or length of the lease if shorter
than 50 years)
- AstroTurf - 20 years
- Driveway - 20 years
Plant and equipment - Boilers - 15 years
- ICT infrastructure - 10 years
- Other - 10 years
- Domestic - 5 years
Musical instruments - 50 years
Motor vehicles - 5 years
Computer Equipment - 3 years

DONATIONS

Donations receivable for the general purposes of the Charity are credited to Unrestricted Funds. Donations for purposes restricted by the wishes of the donor are taken to Restricted Funds where these wishes are binding on the Trustees.

GOVERNMENT GRANTS

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Company Registration Number: 01521832 Charity Number: 281242

29

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

ACCOUNTING POLICIES (continued)

INVESTMENTS AND INVESTMENT INCOME

Fixed Asset Investments are included at their market value as at the balance sheet date. Any surplus or deficit on revaluation is taken to the Statement of Financial Activities (SOFA). Investment income is accounted for in the period in which the company is entitled to receipt.

BAD DEBT PROVISION

The provision for bad debts is calculated based on a detailed review of all outstanding balances as at Year-End. Each individual debt is reviewed and management judgement used to determine an appropriate provision to make in each individual case.

STOCKS

Stocks are stated at the lower of cost and net realisable value.

LEASE COMMITMENTS

Operating lease commitments are charged to the Statement of Financial Activities on a straight line basis over the lease term.

FINANCIAL INSTRUMENTS

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument, and are offset only when the Group currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Trade, group and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate.

Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.

Financial liabilities and equity

Financial instruments are classified as liabilities and equity instruments according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Trade, group and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled. Where the arrangement with a creditor constitutes a financing transaction, the creditor is initially measured

Company Registration Number: 01521832 Charity Number: 281242

30

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

ACCOUNTING POLICIES (continued)

at the present value of future payments discounted at a market rate of interest for a similar instrument and subsequently measured at amortised cost.

Borrowings

Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements 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 Company 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.

The Company, via its management, has made judgements in the following areas:

2 FEES RECEIVABLE

Unrestricted
Funds
£
Gross fees
16,960,134
Remote Learning Discount (Lent Term 2021)
(644,418)
Less bursaries, scholarships and allowances
(1,951,298)
_
14,364,418
_
OTHER EDUCATIONAL INCOME
Unrestricted
Funds
£
Extras
1,064,111
Sundry income
451,836
__
1,515,947		 Restricted
2021
2020
Funds
Total
Total
£
£
£
-
16,960,134
16,799,463
-
(644,418) (1,124,872)
-
(1,951,298) (2,098,908)
_
_
_
-
14,364,418
13,575,683
_
_
_
Restricted
2021
2020
Funds
Total
Total
£
£
£
-
1,064,111
1,063,473
-
451,836
202,990
_
_
__
-
1,515,947
1,266,463		 Restricted
2021
2020
Funds
Total
Total
£
£
£
-
16,960,134
16,799,463
-
(644,418) (1,124,872)
-
(1,951,298) (2,098,908)
_
_
_
-
14,364,418
13,575,683
_
_
_
Restricted
2021
2020
Funds
Total
Total
£
£
£
-
1,064,111
1,063,473
-
451,836
202,990
_
_
__
-
1,515,947
1,266,463
_
2020
Total
£
1,063,473
202,990
_
1,266,463

3 OTHER EDUCATIONAL INCOME

Company Registration Number: 01521832 Charity Number: 281242

31

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

4 DONATIONS

Donations comprise the following:

Unrestricted
Funds
£
Designated Fund donations (note 19)
48,984
Restricted donations (note 21)
-
__
48,984		 Restricted
Funds
£
-
287,137
__
287,137		 2021
Total
£
48,984
287,137
__
336,121		 2020
Total
£
-
137,537
__
137,537

During the year Prior Park Enterprises Limited (PPEL) made a surplus of £49,313 (2020: £37,056). Payment of this surplus will be made via gift aid to PPET within nine months of the year end. PPEL undertakes the letting of the schools and it donates any profit to the Trust. This income is shown on the Statement of Financial Activities under Rents & Lettings.

5 TOTAL EXPENDITURE

Cost of generating funds:
Fundraising Costs
Finance costs
Charitable activities:
Teaching
Welfare
Premises
Marketing and publicity
Support costs of schooling
Extras & Trips
Governance costs
Total Expenditure		 Staff
costs
£
8,009,582
75,785
800,708
-
917,762
-
-
__
9,803,837
 Deprec-
iation
£
448
12,873
710,613
-
-
-
-
__
723,934		 Other
Total
Total
costs
2021
2020
£
£
£
95,266
95,266
95,635
275,253
275,253
315,238
_
_
_
371,519
371,519
410,873
_
_
_
311,277
8,321,307
8,915,080
805,555
894,213
773,139
1,053,744
2,565,065
2,351,153
109,848
109,848
180,589
732,993
1,650,755
1,670,968
1,064,111
1,064,111
1,063,473
57,762
57,762
56,812
_
_
__
4,506,809
15,034,580
15,422,087		 Total
2020
£
95,635
315,238
__
410,873

Note: Depreciation in year of Fixed Assets is £806,966 but is shown above net of amortisation of the applicable funds of £83,032. The donated funds used to purchase the fixed assets being amortised at the same rate as the fixed assets are depreciated.

6
GOVERNANCE COSTS
Governance costs can be analysed as follows:
Fees payable to auditor – audit & other services (see note 9)
Indemnity insurance
Other governance costs
Total		 2021
£
45,070
7,704
4,988
__
57,762		 2020
£
37,835
5,564
13,413
__
56,812

Company Registration Number: 01521832 Charity Number: 281242

32

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

7 STAFF COSTS

Staff costs can be analysed as follows:

Group:

Wages and salaries
Social security costs
Pension costs
Total
Charity:
Wages and salaries
Social security costs
Pension costs
Total		 2021
2020
£
£
8,045,876
8,271,435
712,559
741,446
1,045,402
1,251,130
_
_
9,803,837
10,264,011
_
_
2021
2020
£
£
6,370,690
6,758,905
607,761
649,979
985,559
1,189,390
_
_
7,964,010
8,598,274

None of the Trustees have received any remuneration in this year or the previous year. During the year Trustees' expenses of £4,988 (2020: £13,413) were reimbursed by the Group in respect of travel and accommodation costs during the year in respect of 12 Trustees (2020: 14 Trustees)

The monthly average number of persons employed, full and part time, during the year was:

Group:

Educational
Support staff
Charity:
Educational
Support staff		 2021
Number
212
93
_
305
_
2021
Number
172
81
_
253		 2020
Number
220
87
_
307
_
2020
Number
184
78
_
262

Charity:

Company Registration Number: 01521832 Charity Number: 281242

33

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

7 STAFF COSTS (continued)

Group:

The number of Group employees whose emoluments (excluding employer’s pension and National Insurance contributions) fell in the following bands were:

£60,001 - £70,000
£70,001 - £80,000
£90,001- £100,000
£100,001 - £110,000
£140,001 - £150,000
£160,001 - £170,000		 2021
Number
3
1
2
-
1
1
_
8		 2020
Number
5
1
1
1
1
1
_
10

For these employees the number with retirement benefits accruing in:

For these employees the number with retirement benefits accruing in:
Money purchase schemes was
for which the contributions amounted to
Defined benefit scheme was
for which the contributions amounted to		 2021
5
£47,953
__
3
£47,876		 2020
5
£28,020
__
5
£88,744

Remuneration of Key Group Personnel:

The total remuneration for 2020/21 of the key personnel in the group (as identified on page 4) is £628,469 (2020: £660,060).

8 FINANCE COSTS

Unrestricted
£
Bank & other loan interest
136,573
Other finance costs
138,680
__
275,253		 Restricted
£
-
-
__
-		 2021
Total
£
136,573
138,680
__
275,253		 2020
Total
£
146,631
168,607
__
315,238

Company Registration Number: 01521832 Charity Number: 281242

34

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

9 NET INCOME FOR THE YEAR

This is stated after charging:

This is stated after charging:
2021 2020
£ £
Depreciation of owned assets 806,966 796,798
Auditor’s remuneration (including VAT):
Audit services: fees payable for the audit of the Trust’s financial statements 26,610 26,519
Audit services: fees payable for the audit of the subsidiaries’ financial statements 11,650 6,276
Other services - taxation and other services 6,810 5,040
Operating lease rentals:
Plant & machinery 47,386 37,621

A gain of £347,819 due to growth in the Prior Park Schools 2030 Bursary Fund investment was reported outside of normal operating activities.

Company Registration Number: 01521832 Charity Number: 281242

35

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

10 TANGIBLE FIXED ASSETS (GROUP)

Assets in the
course of
construction		 Land Buildings Astro Turf &
Drive		 Plant &
Equipment		 Motor Vehicles Musical
Instruments		 IT Equipment Total
COST
As at 1 September 2020 75,266 598,274 18,060,578 647,694 2,696,932 109,208 128,845 331,745 22,648,542
Additions 6,826 - 312,150 - 312,704 - - 125,415 757,095
Transfer to Buildings (75,266) - 75,266 - - - - - -
As at 31 August 2021 6,826 598,274 18,447,994 647,694 3,009,636 109,208 128,845 457,160 23,405,637
DEPRECIATION AND IMPAIRMENT
As at 1 September 2020 - - 4,621,846 216,364 989,995 65,795 43,560 250,599 6,188,159
Charge for Year - - 414,413 32,073 260,616 12,873 2,577 84,414 806,966
As at 31 August 2021 5,036,259 248,437 1,250,611 78,668 46,137 335,013 6,995,125
Net Book Value at 31
August 2021		 6,826 598,274 13,411,735 399,257 1,759,025 30,540 82,708 122,147 16,410,512
As at 1 September 2020 75,266 598,274 13,438,731 431,331 1,706,936 43,413 85,285 81,146 16,460,383

All the above assets are held for direct charitable purposes.

Company Registration Number: 1521832 Charity Number: 281242

36

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

10 TANGIBLE FIXED ASSETS (CHARITY)

Assets in the
course of
construction		 Land Buildings Astro Turf &
Drive		 Plant &
Equipment		 Motor Vehicles Musical
Instruments		 IT Equipment Total
COST
As at 1 September 2020 - 598,274 15,693,351 647,694 2,517,121 109,208 128,845 168,314 19,862,807
Additions 6,826 - 165,079 - 305,503 - - 125,415 602,823
As at 31 August 2021 6,826 598,274 15,858,430 647,694 2,822,624 109,208 128,845 293,729 20,465,630
DEPRECIATION AND IMPAIRMENT
As at 1 September 2020 - - 4,278,212 216,364 935,517 65,795 43,560 118,340 5,657,788
Charge for Year - - 314,142 32,073 242,575 12,873 2,577 59,316 663,556
As at 31 August 2021 4,592,354 248,437 1,178,092 78,668 46,137 177,656 6,321,344
Net Book Value at 31
August 2021		 6,826 598,274 11,266,076 399,257 1,644,532 30,540 82,708 116,073 14,144,286
As at 1 September 2020 - 598,274 11,415,139 431,330 1,581,604 43,413 85,285 49,974 14,205,019

All the above assets are held for direct charitable purposes.

Company Registration Number: 1521832 Charity Number: 281242

37

Prior Park School (a company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) for the year ended 31 August 2021

11 INVESTMENTS

In October 2018 the PPS Bursary Fund 2030 was established which initial funds of £2m. The fund saw growth in value of £347,819 (2020: £66,286) during the financial year:


growth in value of£347,819(2020: £66,286) during the financial yea
r:
2021 2020
£ £
Opening Balance 2,212,715 2,146,429
Transfer of funds to other designated funds (see note 19) (150,000) -
Net gains on investment 347,819 66,286
_ _
Closing Balance as at 31 August 2021: 2,410,534 2,212,715
_ _

The above investment was placed with Stanhope Capital and the portfolio consists of a mix of global equities, bonds and commodities to ensure a fully diversified portfolio. The value shown is the market value as at 31[st] August 2021.

The investment was placed under the terms of the Prior Park Educational Trust investment policy and is monitored by the FAIR Committee on a regular basis.

The following notes detail the investments of the Charity in the other Group Companies:

Charity:
Shares at cost		 2021
£
7
_
7
 2020
£
7
_
7

PRIOR PARK HOLDINGS LIMITED (Company number: 09598950)

Prior Park Holdings Limited was incorporated on 19 May 2015 and commenced trading on 1 September 2018. The principal activity of the company is to provide educational and management services to satellite schools within the Prior Park Group. A summary of the subsidiary’s results for the year to 31 August 2021, and its balance sheet position is shown below:


and its balance sheet position is shown below:
2021 2020
£ £
TURNOVER 270,441 220,048
Cost of sales (141,864) (149,012)
-------------------- --------------------
GROSS PROFIT 128,577 71,036
Administrative expenses (1,410) -
-------------------- --------------------
OPERATING PROFIT 127,167 71,036
Interest payable and similar charges - -
-------------------- --------------------
PROFIT BEFORE TAXATION 127,167 71,036
Taxation - -
-------------------- --------------------
PROFIT FOR THE FINANCIAL YEAR 127,167 71,036
AND RETAINED EARNINGS ========= =========

Company Registration Number: 1521832 Charity Number: 281242

38

Prior Park School (a company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) for the year ended 31 August 2021

11 INVESTMENTS (continued)

Fixed and Current assets
Current liabilities
Called up share capital
Profit and loss account		 2021
2020
£
£
922,034
675,794
(794,866)
(653,002)
_
_
127,168
22,792
_
_
1
1
127,167
22,791
_
_
127,168
22,792

PRIOR PARK ENTERPRISES LIMITED (Company number: 2224611)

On 29 August 2008, the entire issued share capital of Prior Park Enterprises Limited was gifted to the Trust. No consideration was paid for the shares. Their value to the Trust was considered to be equal to the value of the net assets of the company at the date of transfer. The subsidiary runs the commercial activities of Prior Park Schools. A summary of the subsidiary’s results for the year to 31 August 2021, and its balance sheet position is shown below:

Turnover
Expenditure
Gross Profit
Administrative Expenses
Net profit before taxation
Taxation
Net profit after taxation
Current assets
Current liabilities
Called up share capital
Profit and loss account		 2021
£
60,392
(6,507)
_
53,885
(4,572)
49,313
-
_
49,313
_
67,615
(18,296)
_
49,319
_
6
49,313
_
49,319
 2020
£
41,546
(412)
_
41,134
(4,078)
37,056
-
_
37,056
_
48,002
(10,940)
_
37,062
_
6
37,056
_
37,062

Company Registration Number: 1521832 Charity Number: 281242

39

Prior Park School (a company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) for the year ended 31 August 2021

11 INVESTMENTS (continued)

PRIOR PARK SCHOOL, GIBRALTAR (Company number: 00113158, Charity number: 000272)

Prior Park School, Gibraltar is a wholly owned subsidiary of the Trust, involved in the establishment of the School in Gibraltar. The School was opened on 7[th] September 2016 and there were 227 pupils attending in the 2020/21 academic year.

Unrest-
ricted
Funds
INCOME:
£
Income from charitable activities:
School Fees receivable
2,704,414
Other educational income
93,458
Donations
-
Other income
2,491
_
TOTAL INCOME
2,800,363
_
EXPENDITURE ON:
Charitable activities
2,555,008
Cost of raising funds
Fundraising
-
Finance costs
76,734
_
TOTAL EXPENDITURE
2,631,742
_
NET MOVEMENT IN FUNDS
168,621
_
Fund balances brought forward (unrestricted)
(1,088,754)
Fund balances brought forward (restricted)
-
_
FUND (DEFICIT) / EARNINGS CARRIED
(920,133)
FORWARD		 Rest-
ricted
2021
2020
Funds
Total
Total
£
£
£
-
2,704,414
2,197,772
-
93,458
113,440
57,621
57,621
5,493
-
2,491
109,045
_
_
_
57,621
2,857,984
2,425,750
_
_
_
34,814
2,589,822
2,396,265
-
-
-
-
76,734
81,219
_
_
_
34,814
2,666,556
2,477,484
_
_
_
22,807
191,428
(51,734)
_
_
_
-
(1,088,754) (1,067,452)
30,170
30,170
60,602
_
_
_
52,977
(867,156) (1,058,584)

In the prior year, all activities related to unrestricted funds, with the exception of donation income of £5,493 and expenditure on charitable activities of £35,925 which related to restricted funds.

Company Registration Number: 1521832 Charity Number: 281242

40

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

FIXED ASSETS
Tangible assets
CURRENT ASSETS
Debtors
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
NET CURRENT ASSETS
TOTAL ASSETS PLUS CURRENT LIABILITIES
CREDITORS: Amounts falling due after one year
NET LIABILITIES
FUNDS
Restricted
Unrestricted Funds
General
Total deficit		 2021
£
2,266,226
2,266,226
56,555
1,381,758
1,438,313
(959,445)
478,868
2,745,094
(3,612,250)
(867,156)
52,977
(920,133)
(867,156)		 2020
£
2,255,364
2,255,364
140,661
716,669
857,330
(1,287,895)
(430,565)
1,824,799
(2,883,383)
(1,058,584)
30,170
(1,088,754)
(1,058,584)

Company Registration Number: 1521832 Charity Number: 281242

41

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

12 STOCKS (GROUP AND CHARITY)

Goods for resale
13
DEBTORS
Trade debtors
School fees
Other debtors
Prepayments and accrued income
Amounts owed by group undertakings		 2021
2020
£
£
4,641
6,429
_
_
Group
Charity
2021
2020
2021
2020
£
£
£
£
41,197
1,018
-
-
219,201
171,587
203,711
155,682
206,746
229,967
180,827
157,776
167,868
381,527
156,573
323,965
-
-
817,513
743,544
_
_
_
_
635,012
784,099
1,358,624
1,380,967		 2020
£
6,429

14 CREDITORS: Amounts falling due within one year

Group Charity
2021
2020		 2021 2020
£
£		 £ £
Current instalments due on bank loans (note 17) 65,137
65,297		 48,470 48,631
School fees received in advance 2,423,461
1,576,530		 1,916,476 1,315,158
Trade creditors 457,017
311,663		 429,096 230,398
Taxation and social security payable 164,947
206,521		 164,947 206,521
Other creditors 2,079,699
1,692,272		 1,767,949 1,550,598
Accruals 340,872
218,769		 302,951 190,496
_
_		 _ _
5,531,133
_
4,071,052
_		 4,629,889
_		 3,541,802
_

15 CREDITORS: Amounts falling due after more than one year

Group Charity
2021
2020		 2021 2020
£
£		 £ £
Bank loans (note 17) 4,044,110
4,109,723		 1,178,094 1,226,339
School fees received in advance 26,354
37,536		 26,354 37,536
_
_		 _ _
4,070,464
_
4,147,259
_		 1,204,448
_		 1,263,875
_

Company Registration Number: 1521832 Charity Number: 281242

42

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

16 DEFERRED INCOME:

DEFERRED INCOME:
Group Charity
£ £
Brought forward fees in advance 1,614,066 1,352,694
Cash received in 2020/21 2,404,972 1,897,988
Amounts utilised in 2020/21 (1,569,223) (1,307,852)
_ _
Carried forward fees in advance 2,449,815
_		 1,942,830
_

The deferred income shown above relates to payments of school fees and activity charges before 31/8/2021 for the 2021/22 school year, with the exception of £26,354 which relates to the payment of school fees beyond the 2021/22 school year.

17 BANK AND OTHER LOANS

Group:

Bank loans repayable by instalments are due for repayment as follows:

Bank loans repayable by instalments are due for repayment as follows:
2021 2020
£ £
Repayable within one year 65,137 65,297
Repayable within one to two years 150,596 147,470
Repayable within two to five years 465,496 455,271
Repayable beyond five years 3,428,018 3,506,982
_ _
4,109,247 4,175,020
_ _
Charity:
Bank loans repayable by instalments are due for repayment as follows:
2021 2020
£ £
Repayable within one year 48,470 48,629
Repayable within one to two years 50,596 47,4710
Repayable within two to five years 165,496 155,271
Repayable beyond five years 962,002 1,023,600
_ _
1,226,564
_		 1,274,970
_

Note regarding loan held by the Charity:

The Charity currently has a bank loan which was taken out to help fund the building of the Sports Hall at Prior Park College repayable over 25 years at a fixed rate of 4.3%.

The bank holds security in respect of this loan over the following freehold properties: Gate Lodge, Fyfield House and Creffield House, all on Ralph Allen Drive, Bath and Prior Lodge, North Road, Bath.

Company Registration Number: 1521832 Charity Number: 281242

43

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

Note regarding additional loans held by the Group:

Prior Park School, Gibraltar (“PPSG”) also has 2 loans:

The first with SPG Limited with a facility to drawdown up to £2m, is unsecured and is repayable in line with the Funding Agreement between SPG Limited and PPSG, dated 11 March 2016. The total drawdown (net of repayments taken in lieu of school fees) as at 31[st] August 2021 was £1,248,804 (2020: £1,294,173). Total accumulated accrued interest as at 31[st] August 2021 was £133,878 (2020: £105,877). Repayment of both the principal and the interest on this loan is to be made as soon as reasonably practicable under the terms of the Funding Agreement. The interest rate is 2% per annum.

The second loan is with Gibraltar International Bank with a facility to drawdown up to £1.5m. This loan is secured on PPSG’s leasehold interest in the site at Sacred Heart Terraces and is repayable in line with the terms of the loan facility with the bank. The total drawdown as at 31[st] August 2021 was £1.5m (2020: £1.5m). The interest rate is 3% above Bank of England base rate per annum.

These loans were put in place to facilitate the refurbishment of PPSG’s buildings and to cover the initial set up costs of PPSG.

18 PROVISIONS

The following provision was established during 2017/18 to reflect the ongoing liability to pay for scholarships and bursaries potentially until August 2026 in relation to children at Prior Park Preparatory School under the terms of the sale to Wishford Schools.

Provision as at 31stAugust 2020
Payments to Wishford during 2021/21
Changes to provision for future years
Provision as at 31stAugust 2021		 2021
£
11,580
(7,083)
-
_
4,497

19 UNRESTRICTED FUNDS (GROUP)

At 31 August 2021 total unrestricted funds amounted to £16,908,312 (2020: £15,186,813). Included within this total are funds which the Trustees have designated for specific purposes as detailed below:

Position as per 2020/21 Accounts:

Unrestricted Fund Fund
balance as at
1st
September
2020		 Income Expenditure Net Income /
(expenditure)		 Adjustments
/ Transfers		 Fund
balance as at
31st August
2021
Gillan
Bursary
Fund		 19,546 - (8,625) (8,625) - 10,921
Designated Bursary
Fund		 - 48,985 - 48,985 150,000 198,985
PPS 2030 Bursary
Fund		 2,212,715 347,819 - 347,819 (150,000) 2,410,534
Designated
Funds
Total		 2,232,261 396,804 (8,625) 388,179 - 2,620,440
General Fund 12,954,552 15,956,940 (14,623,620) 1,333,320 - 14,287,872
Total 15,186,813 16,353,744 (14,632,245) 11,721,499 - 16,908,312

Company Registration Number: 1521832 Charity Number: 281242

44

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

Comparative position as per 2019/20 Accounts:

Unrestricted Fund Fund
balance as at
1st
September
2019		 Income Expenditure Net Income /
(expenditure)		 Adjustments
/ Transfers		 Fund
balance as at
31st August
2020
Gillan
Bursary
Fund		 28,171 - (8,625) (8,625) - 19,546
PPS 2030 Bursary
Fund		 2,146,429 66,286 - 66,286 - 2,212,715
Designated
Funds
Total		 2,174,600 66,286 (8,625) 57,661 - 2,232,261
General Fund 12,591,046 15,553,439 (15,189,933) 254,315 - 12,954,552
Total 14,765,646 15,619,725 (15,198,558) 311,976 - 15,186,813

The Gillan Bursary Fund was established in the Summer of 2018 by a legacy donation from a former pupil of Prior Park College. The fund will be used to support pupils with bursarial support in coming years.

The Designated Bursary Fund has been established this year to hold funds donated by staff and parents during the Covid pandemic and to hold the release of any funds from the PPS 2030 Bursary Fund. It will also be used to hold any non-restricted donations from parents and former pupils.

The Prior Park Schools 2030 Bursary Fund was established during 2018/19 as a designated fund with the aim of building towards £10m by 2030 (see note 11). The fund will then be used to support bursarial funding requests from that date onwards.

Note: £150,000 was transferred out of the PPS 2030 Bursary Fund (from the accumulated growth in the fund) to ensure that sufficient liquid funds were available to support any emergency bursary requests during the 2021 and 2022 as parents recover from the Covid-19 pandemic. It is intended that further funds will be placed back into the PPS 2030 Bursary Fund once bursary requests return to a per pandemic level.

20 UNRESTRICTED FUNDS (CHARITY)

The table below shows how the Charity’s unrestricted funds have moved since last year, with prior year movement shown for comparison purposes:

2020/21 2019/20
Total Charity Unrestricted Funds brought
forward		 13,944,459 13,660,497
Plus: Unrestricted Funds Surplus in Year 1,087,068 283,962
Less: Transfer of Funds to Designated Fund:
PPS 2030 Bursary Fund		 - -
Total Charity Unrestricted Funds carried
forward		 15,031,527 13,944,459

Company Registration Number: 1521832 Charity Number: 281242

45

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

21 RESTRICTED FUNDS (GROUP & CHARITY)

The following table details the in-year restricted fund movements. The restricted funds all relate to the Charity with the exception of the following funds which are in relation to Prior Park School, Gibraltar: The Gibraltar IT & DT Technology fund (open and closed), the Gibraltar Ball Court, Library, Bursary, Facilities and Events Funds.

Restricted Fund Fund balance as
at 1st September
2020		 Income Expenditure Expenditure Net Income /
(expenditure)		 Adjustments
/ Transfers		 Fund balance
as at 31st
August 2021
Open Funds Amortisation
&
depreciation		 Other
Bursary (general) 162,844 38,204 - 35,350 2,854 - 165,698
Bursary (specific) 74,877 108,103 - 64,125 43,978 - 118,855
Chapel 80,246 7,809 - 950 6,859 - 87,105
Entrepreneurial 241,064 - - - - - 241,064
Big School Room 49,040 - - - - - 49,040
Sports Fund 638 12,000 - - 12,000 - 12,638
Heritage Fund 2,330 63,400 - - 63,400 - 65,730
Gibraltar - IT & DT
Technology		 1,847 - - 1,847 (1,847) - -
Gibraltar - Bursary - 30,371 - 2,700 27,671 - 27,671
Gibraltar - Facilities - 750 - - 750 - 750
Gibraltar – Events - 1,500 - 1,500 - - -
Gibraltar - Library 306 - - - - - 306
Closed Funds
Mansion Steps 50,738 - 1,103 - (1,103) - 49,635
Science Project 9,339 - 1,557 - (1,557) - 7,782
Sports Centre 504,813 - 11,281 - (11,281) - 493,532
Piano 34,099 - 929 - (929) - 33,170
College Freehold 115,971 - 4,004 - (4,004) - 111,967
Old Gymnasium 197,642 - 6,835 - (6,835) - 190,807
Sixth Form Centre 110,085 - 3,870 - (3,870) - 106,215
Campaign 509,529 - 11,580 - (11,580) - 497,949
Organ 38,756 - 1,200 - (1,200) - 37,556
Chapel Improvements 69,687 - 4,478 - (4,478) - 65,209
All Weather Pitch 7,225 - 422 - (422) - 6,803
Sports Facilities 20,903 - 2,613 - (2,613) - 18,290
Covid-19 Appeal 14,465 - 2,893 - (2,893) - 11,572
Paragon
Parents
Association		 21,000 - 1,500 - (1,500) - 19,500
Gibraltar – Ball Court - 25,000 750 - 24,250 - 24,250
Gibraltar - IT & DT
Technology - closed		 28,017 - 28,017 - (28,017) - -
Total 2,345,461 287,137 83,032 106,472 97,633 - 2,443,094

Company Registration Number: 1521832 Charity Number: 281242

46

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

Open Funds:

Closed Funds:

Company Registration Number: 1521832 Charity Number: 281242

47

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

Comparative position as per 2019/20 Accounts:

Restricted Fund Fund balance as at
1st September 2019		 Income Expenditure Expenditure Net Income /
(expenditure)		 Adjustments
/ Transfers		 Fund balance
as at 31st
August 2020
Open Funds Amortisation Other
Bursary (general) 118,911 62,231 - 18,298 43,933 - 162,844
Bursary (specific) 141,301 35,615 - 102,039 (66,424) - 74,877
Chapel 76,991 3,255 - - 3,255 - 80,246
Entrepreneurial 241,064 - - - - - 241,064
Big School Room 49,040 - - - - - 49,040
Sports Fund 1,882 - - 1,244 (1.244) - 638
Heritage Fund 500 1,931 - 101 1,830 - 2,330
Gibraltar - IT & DT
Technology		 24,630 - - 7,508 (7,508) (15,275) 1,847
Gibraltar - Bursary - 5,493 - 5,493 - - -
Gibraltar - Library 306 - - - - - 306
Closed Funds
Mansion Steps 51,841 - 1,103 - (1,103) - 50,738
Science Project 10,895 - 1,557 - (1,557) - 9,339
Sports Centre 516,094 - 11,281 - (11,281) - 504,813
Piano 35,029 - 929 - (929) - 34,099
College Freehold 119,975 - 4,004 - (4,004) - 115,971
Old Gymnasium 204,477 - 6,835 - (6,835) - 197,642
Sixth Form Centre 113,955 - 3,870 - (3,870) - 110,085
Campaign 521,109 - 11,580 - (11,580) - 509,529
Organ 39,956 - 1,200 - (1,200) - 38,756
Chapel
Improvements		 74,165 - 4,478 - (4,478) - 69,687
All Weather Pitch 7,648 - 423 - (423) - 7,225
Sports Facilities 23,516 - 2,613 - (2,613) - 20,903
Covid-19 Appeal - 29,012 - 14,547 14,465 - 14,465
Paragon
Parents
Association		 22,500 - 1,500 - (1,500) - 21,000
Gibraltar - IT & DT
Technology - closed		 35,668 - 22,926 - (22,926) 15,275 28,017
Total 2,431,453 137,537 74,299 149,230 (85,992) - 2,345,461

Company Registration Number: 1521832 Charity Number: 281242

48

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

22 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Unrestricted Restricted Endowment Total Funds
Funds Funds Funds 2021
£ £ £ £
Tangible Fixed Assets 14,736,276 1,674,236 - 16,410,512
Investments 2,410,534 - - 2,410,534
Current Assets 9,377,044 768,858 - 10,145,902
Liabilities (9,615,542) - - (9,615,542)
_ _ _ _
16,908,312
_		 2,443,094
_		 -
_		 19,351,406
_

23 SHARE CAPITAL

The company is limited by guarantee and has no called-up share capital. As at 31 August 2021 there were 12 members of the Trust and each has a limited liability of £1.

24 PENSION COSTS

TEACHERS PENSION SCHEME

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £678,207 (2020: £1,099,251) and at the year-end £75,259 (2020 £124,362) was accrued in respect of contributions to this scheme.

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

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2020, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2020. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

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

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

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

Company Registration Number: 1521832 Charity Number: 281242

49

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

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

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

The School undertook a consultation exercise with teaching staff during 2019/20 with the conclusion that the school will also offer the APTIS scheme (run by Aviva) for those teaching staff who wish to join this scheme from 1[st] September 2020 onwards. The School now offers the option to remain in the TPS (with the additional employers pension contribution made up via a deduction from gross salary) or to join the APTIS scheme at a choice of contribution levels.

CONTRIBUTIONS TO PENSION FUNDS

The Trust makes contributions to the Teachers’ Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the College by the Scheme Administrator. The Scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the Scheme which are directly attributable to the Trust. In accordance with the SORP (FRS102) the Scheme is accounted for as a defined contribution scheme and contributions are accounted for when advised as due by the Scheme Administrator (see above for further details).

As detailed above, UK teaching staff have the option to remain in TPS but to pay the additional employer contribution as a deduction from their gross pay or to move across to the APTIS Master Trust Scheme, run by Aviva from 1[st] September 2020.

From 1[st] September 2021 APTIS is also the default pension scheme for support staff with the incumbent Support Staff Group Personal Pension Scheme run by Aviva now closed to new members. Employer contributions into APTIS were at either 5.1% or 4% (depending on the employee’s choice of pension contributions) of annual basic pay during 2020/21. The former rate has been increased to 7.5% from 1[st] September 2021. These contributions are recorded accordingly in these financial statements.

The APTIS scheme is a defined contribution scheme run by Aviva under a Master Trust Arrangement. There were £26,388 of contributions accrued at Year End regarding employers’ contributions from August 2021. The Trust also operates a salary sacrifice scheme for staff members who wish to make their pension contributions via this method into APTIS.

25 COMMITMENTS UNDER OPERATING LEASES

The Company as a lessee:

The total future minimum lease payments under non-cancellable operating leases for plant and machinery are as follows:

Amounts due:
Within one year
Between one and five years
After five years		 2021
£
266,958
412,476
-
_
679,434		 2020
£
200,616
430,102
4,164
_
634,882

Company Registration Number: 1521832 Charity Number: 281242

50

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

26 CAPITAL COMMITMENTS

The Trust has no capital commitments at the Year End (2020: £175,000).

27 RELATED PARTY TRANSACTIONS

Prior Park Enterprises Limited (“PPEL”), Prior Park Holdings Limited (“PPHL”) and Prior Park School, Gibraltar (“PPSG”) are wholly owned subsidiaries of Prior Park Educational Trust (“PPET”). Related party transactions during the year were as follows:

28 ANALYSIS OF NET DEBT

The following note is provided in addition to the Cash flow statement:

As at 1.9.2020 Cash Flows Other non-
cash changes		 As at 31.8.2021
Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year
TOTAL		 6,298,539
1,989,425
1,208,837
9,496,801
(65,296)
-
159
(65,137)
(4,109,724)
-
65,615
(4,044,109)
2,123,519
1,989,425
1,274,611
5,387,555

Company Registration Number: 1521832 Charity Number: 281242

51

Prior Park Educational Trust (a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

29 2019/20 SOFA SHOWING SPLIT BETWEEN UNRESTRICTED AND RETRICTED FUNDS

Unrest-
ricted
Funds
INCOME:
£
Income from charitable activities:
School fees receivable
13,575,683
Other educational income
1,266,463
Donations
-
Investment income
38,774
Other trading activities:
Rents and lettings
122,415
Other Income (Furlough Claim)
550,104
_
TOTAL INCOME
15,553,439
_
EXPENDITURE ON:
Charitable activities
14,787,685
Cost of raising funds
Fundraising
95,635
Finance costs
315,238
_
TOTAL EXPENDITURE
15,198,558
_
NET INCOME before gains on investments
354,881
Net gains on investments
66,286
NET INCOME after gains on investments
421,167
Other recognised gains:
Re-measurement of future remission liabilities
-
NET MOVEMENT IN FUNDS
421,167
Fund balances brought forward (unrestricted)
14,765,646
Fund balances brought forward (restricted)
-
__
FUND BALANCES CARRIED FORWARD
15,186,813		 Rest-
ricted
2020
2019
Funds
Total
Total
£
£
£
-
13,575,683
13,869,392
-
1,266,463
1,195,844
137,537
137,537
244,307
-
38,774
49,972
-
122,415
231,822
-
550,104
-
_
_
_
137,537
15,690,976
15,591,337
_
_
_
223,529
15,011,214
14,641,578
-
95,635
118,110
-
315,238
176,720
_
_
_
223,529
15,422,087
14,936,408
_
_
_
(85,992)
268,889
654,929
-
66,286
146,429
(85,992)
335,175
801,358
-
-
97,437
(85,992)
335,175
898,795
-
14,765,646
13,857,346
2,431,453
2,431,453
2,440,958
_
_
__
2,345,461
17,532,274
17,197,099

Company Registration Number: 1521832 Charity Number: 281242

52