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2020-08-31-accounts

ST FRANCIS’ COLLEGE TRUST

(A Charitable Company Limited by Guarantee)

GOVERNORS’ REPORT

AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

Charity Registered No: 287694 Company Registered No: 01724197

ST FRANCIS’ COLLEGE TRUST

GOVERNORS’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

Contents

Page
Governors' report 1
Independent auditors' report 7
Statement of financial activities 10
Balance sheet 11
Cash flow statement 12
Notes to the cash flow statement 13
Notes to the financial statements 14

ST FRANCIS’ COLLEGE TRUST

GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Governors (who are also the charity’s trustees and the company’s directors) present their report (which, for the purposes of company law, includes the strategic report and the directors’ report), together with the financial statements of the charity, for the year ended 31 August 2020. These financial statements have been prepared in accordance with the requirements of the Companies Act 2006, the Charities Act 2011 and the Charities SORP (FRS 102).

REFERENCE AND ADMINISTRATIVE INFORMATION

The company was incorporated in 1983 and has been responsible for the College since then; however, the College has been educating girls since 1933.

The company’s charity registration number is 287694 and its company registration number is 01724197. Its registered office and principal address is Broadway, Letchworth Garden City, Hertfordshire SG6 3PJ.

Governors

The Governors at the date of this report and those who served during the year are as follows:

Mr A W Goodwin* (Chairman)
Dr S M Richardson
Mrs P J Barlow Mr G D Ritchie*
Mr M J Dingemans** Mrs A Aldridge*** (Appointed 6 September
2019)
Prof D S Freeth (Resigned 11 October 2019)
Miss E Ismay*
Mrs S J Styles
Mr C G Nott* (Resigned 12 June 2020)

Senior Officers and Professional Advisers

Headmistress: Mrs B Goulding
Bursar: Ms C Eames
Company Secretary: Miss E Ismay
Principal Bankers: Barclays Bank PLC, 5/6 High Street, Hitchin,
Herts SG5 1BH
Solicitors: Veale Wasborough Vizards, Narrow Quay
House, Narrow Quay, Bristol BS1 4QA
Auditors: Keelings Limited, Broad House, 1 The
Broadway, Old Hatfield, Herts AL9 5BG

Page 1

ST FRANCIS’ COLLEGE TRUST

GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management

The College is a company limited by guarantee, with no share capital, and is governed by its Memorandum and Articles of Association.

Organisational Management

The Board of Governors meets to set strategy, determine policy and review operations at least three times a year. The Board is assisted by the Finance, Academic and Estates Committees, which are led by Governors and attended by senior College staff and, occasionally, by professional advisors. The leadership and management of the College is delegated to the Headmistress, supported by the Deputy Headmistress, the Bursar, the Assistant Head, the Head of Sixth Form and the Head of Prep Department (together the Senior Leadership Team). The Governors also meet with the Senior Leadership Team at an 'Away Day' each year to consider broader issues.

Governing Body

The appointment, induction and retirement of governors are conducted in line with policies approved by the Board in March 2010. Nominations are usually received from Governors or the College's senior managers; new Governors may be elected at any general meeting and are selected because of the expertise they bring to the Board. All Governors receive an extensive information pack, giving them information about the College, its governance, management and policies. New Governors are also provided with induction training and all Governors have the opportunity to attend further training and conferences as necessary. A Governors' handbook is issued to all Governors annually. The College is a member of the Association of Governing Bodies of Independent Schools (AGBIS) and draws on guidance issued by that body.

Children of seven governors were educated at the College and two daughters of one other Governor attended the College during the year.

Objects and activities

In accordance with its Memorandum of Association, the object of the College is to promote and provide for the advancement of the education of children in the United Kingdom and elsewhere, such education to be designed to give a sound Christian and moral basis to all children.

The College is a charitable company that seeks to benefit the public by the provision of a stimulating education, based on Christian values, which enables young women to thrive in an ever-changing global environment. The College aims to develop intellectually-creative minds through a rigorous and supportive educational experience, whilst providing every pupil with close individual care. Our community aims to value the unique contribution of each person and to promote social responsibility, self-esteem and selfdevelopment.

Objectives for the Year

Within the general framework of its strategic aims, the College's main objectives for the year were to:

In setting these objectives, the Governors gave appropriate consideration to the Charity Commission’s general guidance on public benefit.

Page 2

GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

ST FRANCIS’ COLLEGE TRUST

To achieve the first of these objectives, the College:

STRATEGIC REPORT

Achievements and performance

Providing high quality teaching and encouraging engagement with the broader community

During the year 355 (2019: 373) pupils attended the College, of whom 56 were boarders (2019: 67).

Teaching staff took part in regular INSET training and CPD to ensure teaching was of the highest standard and reflected best practice. Academic results underline the standard of teaching; the overall A level pass rate was 100% (2019: 100%), with 60% of pupils achieving straight A/A grades (2019: 42%). At GCSE, 73% of grades were 7-9 (2019: 73%),(or A/A in the old grading structure). Our results continue to be well above the national average. Due to Covid-19, there were no league tables this academic year.

Pupils took part in a wide range of extra-curricular activities that spanned academic, sport, arts and community endeavours. These included participation in the Duke of Edinburgh Award Scheme, which gave pupils an opportunity to serve as volunteers in the local community. Pupils also raised funds for a variety of charities, which included the Kanyike Project (which aims to relieve poverty and provide education to children in Uganda.

The College had a very successful regulatory compliance inspection in January 2020.

The College switched seamlessly to remote learning when the global pandemic forced a nationwide lockdown in March 2020. Staff and pupils successfully ran a full timetable of lessons, co-curricular and extra-curricular provision, online, for the duration of the lockdown, while supporting key workers’ children in College.

It was another outstanding year for University applications, with 97% of our students gaining places for Higher Education and 3% taking a gap year. Our Sixth Form have gone on to study a wide range of subjects, including Medicine, Law and Engineering, at prestigious universities including LSE, Warwick, Durham, UCL and Manchester.

Pupils have also had considerable success at national competition level, in Science Olympiads and UKMT Maths Challenges, as well as LAMDA and ABRSM examinations. They have worked alongside the University of Hertfordshire on genuine primary research into antibiotics in the soil. The Year 11 and 12 cohort have been directly involved in academic research, working successfully on a genome decoding project.

Page 3

ST FRANCIS’ COLLEGE TRUST

GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Providing access to services and facilities for the wider community

Bursaries, scholarships and fee concessions

The College offered means-tested bursaries to parents who might not otherwise be able to afford the fees usually charged by the College. However, the College has no investments or endowments to fund bursaries, so they are necessarily limited. Bursaries of £92,729 (2019: £91,518) were granted in the year to 10 pupils (2019: 9). The College also promoted achievement and access to the College by awarding academic, sports and arts scholarships of £271,398 (2019: £285,123), and by granting fee concessions of £70,771 (2019: £63,037) to staff and parents with more than one child at the College.

Access to facilities

During the first half of the year, before Covid-19 restrictions were imposed, the College made its facilities available to local state schools and a variety of organisations operating for the benefit of young people. State schools used the swimming pool free of charge and pupils from local schools were invited to participate in a variety of events such as drama and music. Letchworth Baptist Church, Letchworth & District Gang Show and other local groups also used facilities at a reduced rate. The College’s mini buses are made available to local Scout and Guide groups at a reduced rate. We provided our Chapel for Remembrance Day 2019 to the congregation of St Michael’s Church.

Financial review and results for the year

The College has reported a surplus of £591,617 for the year, which includes a property revaluation gain of £602,089; without this gain, there would have been a deficit of £10,000 this year (2019: surplus of £312,000). Income declined by £379,000 to £6.1m. A significant element of this is due to the pandemic, which impacted boarding fees, tuition fees (as a fee discount was provided) and other educational and trading income during the latter part of the year. The reduction in pupil numbers in the year was also a factor. These reductions were partially offset by furlough grants and fee inflation. Expenditure reduced by £57,000, to £6.1m, due to continued careful cost control. Cash reduced by £133,000, to £1.3m. The College ended the year with net current assets of £22,000 (2019: £62,000) and total net assets of £4m (2019: £3.4m), of which just £1,336 (2019: £1,336) is restricted.

Reserves are that part of a charity's unrestricted funds that is freely available to spend on any of the charity's purposes. On this basis, the College does not have any Reserves, because its unrestricted funds of £4m (comprising 99.96% of its total funds) have all been invested in tangible fixed assets for use by the College. The Governors have reviewed their Reserves policy and will operate for the foreseeable future without any Reserves, and so their Reserves policy is now to have none. However, this does not imply any relaxation in the execution of their financial obligations towards the College, but simply acknowledges the fact that, subject to having sufficient cash (see the following paragraph), the Governors’ primary aim is to provide the best possible educational facilities, which requires investment in fixed assets and therefore precludes the accumulation of significant Reserves by the College at the current time.

To facilitate their primary aim, the Governors' financial efforts are centered on measures that will increase income and secure efficiency savings, supported by robust financial control through a system of regular management reporting, credit control, budgeting and cash forecasting. After taking account of the adverse impact of Covid-19 on the College’s finances in 2020-21 and critically reviewing budgeted income and expenditure for subsequent years, which show a return to accounting and cash surpluses, the Governors are satisfied that the College will have sufficient cash resources to fund its activities for the foreseeable future. Monthly cash forecasting is regularly updated and benefits from the College almost invariably receiving cash in advance of expenditure being incurred.

Page 4

ST FRANCIS’ COLLEGE TRUST

GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Investment policy

The Governors have the power to invest the College's funds as they see fit. However, as relatively little surplus cash was held, and returns on interest-bearing deposits were poor, cash was held in instant-access accounts and investment returns were negligible.

Future plans

The Governors intend to continue their current strategies of aiming to increase pupil numbers through active marketing and maintaining the School's position in a competitive market by providing high quality education for our girls and encouraging wider engagement with the broader community.

Long leasehold properties

As the College’s long leasehold residential property is not required directly for charitable purposes and was let throughout the year, the Governors valued the property at the year-end and categorised it as an investment property in these accounts. In the informed opinion of the Governors, the value of remaining long leasehold property, being the College itself, is greater than its book value; the property has been revalued for insurance purposes within the past five years.

Risk Management

With the assistance of the Bursar, the Governors have assessed the major risks to which the College is exposed and have satisfied themselves that systems have been established, or that other appropriate measures have been taken, to mitigate those risks, insofar as is reasonably practicable, but it is recognised that systems cannot give absolute assurance that risks have been eliminated. Procedures are in place to monitor health, safety, welfare (including safeguarding) and ongoing financial viability, and to implement any recommendations made following internal or external reviews, for example, ISI inspections. The Governors and the Senior Leadership Team continue to keep the College’s activities under review, including consideration of any major risks that might be present from time to time. The principal risk faced by the College is cash depletion, which could jeopardise the ability of the College to function. As noted in the Financial Review, measures are being taken to address this risk.

Statement of Governors’ responsibilities

The Governors are responsible for preparing the Governors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Governors to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and of the incoming resources and their application, including the income and expenditure of the charitable company for that period. In preparing these financial statements, the Governors are required to:

Page 5

ST FRANCIS, COLLEGE TRUST GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2020 Tlie Goveriiors al'e re5poiisible for keepiiig propel. accoiiiiliiig records iliat disclose witli reasoi)able ac¢Liracy at ai)y tiine tlie fii)ai)cial positioii of tlie cliarilable compaiiy ai)d eiiable tliein to eiisiiip that tlie fiiiaiicial slateinei)ts coinply witli tlie Coinpaiiie5 Act 2006. Tliey are also IESP0115ible for safegiiai'diiig Ilie assets or Ilie cliarilable coinpaiiy alid l)ence for takii)g reasoi)abl¢ steps for Ilie pi'eveiitioii aiid deteclioi) of fraLid ai)d otlier irregularities. So fai. as tlie Govei'11015 are aware.. Iliere is iio Itlevant audit ii)fonnalioi) lii)formatioii needed by tlie cl)arilable company's auditors in coiiiiect102) witli tlieir work) of wliicli tlie cl)ai'itable coinpaiiy's aiiditoi's are iii)aware, aiid Il)ey l)ave takeii all tlie steps tliat tliey oiiglit to liave takei) to Inake tlieinselves aware of all relevai)t aiidit ii)formatioii aiid to establisli iliat ilie aLiditors al'e aware of tliat ii)foimaiioi). Auditors Tlie College's aiiditors were Nicliolsoiis, wl)o Inei'ged will) Joiies Hiii)t & Keelii?gs aftei. tl)e College's yeai'_ eiid. Tl)e coinbii)ed fiiin uses a coinpaiiy witliii) ils groiip, Keeliiigs Liinited, to provide aiidit Services aiid so tlie Govenioi's appoiiited K¢¢lillgs Liinited as tlie College's aliditors. Tl)is report was approved by tlie Boai'd of Goveriiors at it5 Ineetiiig 01) 18 May 2021 ai)d sigiied by order of tlie Boai'd by: Miss E Isinay Coinpai)y Secretary Page 6

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST FRANCIS’ COLLEGE TRUST

Opinion

We have audited the financial statements of St Francis College Trust (the “Charity”) for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where the Governors (who are also the directors of the Charity for the purposes of company law and its trustees for the purposes of charity law):

Page 7

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST FRANCIS’ COLLEGE TRUST

Other information

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

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

We have nothing to report in this regard.

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 Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors’ annual report.

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

Page 8

INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ST FRANCIS, COLLEGE TRUST Re8poDsibili¢ie8 of ¢he Goverllors As explained more fully in the Statement of Governors, Responsibilities stal¢ment (set out on pages 5 and 6). the Governors ar¢ responsible for the preparation of the financial statements and for b¢ing satisfied that they give a true and fair view, and for such internal control as thcy dct¢rtnine is n¢c¢ssary lo enabl¢ the preparation of financial ststements that are free from material misstat¢men¢ wh¢th¢r due to fraud or error. In preparing the financial statements, the Governors are responsible for assessing the Charity's ability to continue as a going ¢on¢ern, disclosing, as appli¢abl¢, matters related to going con¢ern and using the going concern basis of accounting unless the Governors either intend to liquidat¢ the Charity or to cease operations, or have no realistic alternative but to do so. Our responsibilities for the audit of the finallcial statements Our objectives are to obtsin reasonable assurdnce about whether the financial statements as a whole are free from material misststemenL whether due to fraud or error, and to issue an auditors, report that includes our opinion. Reasonable assurance is a high level of assurdnce, but is not a guarantee that an audit conducted in a¢Cordan￿ with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or ¢rror and are considered material if, individually or kn the aggregate, they could reasonably be expected to influenc¢ th¢ ¢¢onomi¢ decisions of users tak¢n on th¢ basis of these financial statements. A further description of our reswnsibilities for the audil of the financial ststements is located on the Financial Reporting Council's website at.. www.frc.org.uklauditorsr¢sponsibilities. This description fonns part of our auditors, report. Use of our repor¢ This report 15 made solely to the Charity's members, as a bodyy in a¢¢ordan¢¢ with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken 50 that we might state to th¢ Charity's members ihose matters we are required to state to them in an auditors, report and for no other purpose. To the fi]Ilest extent perniitted by law, w¢ do not acoepl or assume responsibility to anyone other than the Charity's members as a body for our audit work. for this reporL or for th¢ opinions we have fornied. Domenico Maurello (Senior Statutory Auditor) for and on behalf of Keelings Limited Statutory Auditors, Chartered Tax Advisers and Chartered Certified Accountants Broad House l The Broadway Old Hatfield Hertfordshir¢ AL9 5BG 18 May2021 Page 9

ST FRANCIS' COLLEGE TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
Funds
Notes
£
INCOME:
Donations
-
Government grants
14
-
Charitable activities:
College fees
3
5,443,767
Other educational activities
3
315,570
Ancilliary trading income
3
129,756
Other trading activities
4
60,003
Total incoming resources
5,949,096
EXPENDITURE:
Charitable activities:
College operating costs
7
5,959,568
Total expenditure
5
5,959,568
(10,472)
Gain on investment property revaluation
8
602,089
591,617
Funds brought forward 1 September 2019
3,409,534
Funds carried forward 31 August 2020
14
4,001,151
NET OPERATING
(including property revaluation)
(DEFICIT)/INCOME
Net Income		 Restricted
Fund
£
2,204
151,778
-
-
-
-
153,982
153,982
153,982
-
-
-
1,336
1,336		 Total
2020
£
2,204
151,778
5,443,767
315,570
129,756
60,003
6,103,078
6,113,550
6,113,550
(10,472)
602,089
591,617
3,410,870
4,002,487		 Total
2019
£
6,546
-
5,772,226
379,184
189,082
135,131
6,482,169
6,170,077
6,170,077
312,092
-
312,092
3,098,778
3,410,870

All incoming resources and resources expended are derived from continuing operations.

As depreciation was again not charged this year on long leasehold property, the net surplus on an historical cost basis was also £591,618 (2019: £312,092).

The notes form part of these financial statements

Page 10

ST FRANCIS, COLLEGE TRUST (COMPANY NUMBER: 01724197) BALANCE SHEET AS AT 31 AUGUST 2020 2020 2019 Not¢5 FIXED ASSETS Tallgible assets 4,629,663 4,086.573 ctiRRENT ASSETS Debtors Cash at bank and in Iwid 138,112 1.308,336 199,104 1,441,145 1.446.448 1,640.249 CREDrroRS: Amounts falling due within one yehr io ,424,137 1,577,990 NET CURRENT ASSETS 22.311 62.259 TOTAL ASSETS LESS CURRENT LIABILrriES 4.651.974 4,148,832 CREDITORS: Amounts ffilling due after more thAD one year 649,487 737,962 TOTAL NET ASSETS 4,002,487 3,410,870 FUNDS OF THE CEL41UTY: Restricted funds Unrestricted fimds Fair value reserve 14 14 14 1.336 3,346,837 654,314 1,336 3,357,309 52,225 TOTAL FUNDS 14 4,(X)2,487 3,410,870 Approved by the Board on 18 May 2021 and signcd on its behalf by: •J& AW Goodwin - ChairnMI of Governors A Aldridge - Governor TELC notes forni part of these financial sialements Page 11

ST FRANCIS' COLLEGE TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

Cash flows from operating activities
Net movement in funds
Interest payable
Depreciation
Gain on investment property valuation
Decrease (increase) in debtors
Decrease in creditors
Cash (absorbed) generated by operating
activites
Cash flows from investing activites
Purchase of tangible fixed assets
Net cash used by investing activities
Cash flows from financing activities
Bank loan repayments
Interest
Net cash used by financing activites
Change in cash in year
Cash at the beginning of the year
Cash at the end of the year		 £
£
591,618
14,793
89,493
(602,089)
60,991
(157,906)
(594,718)
(3,100)
(30,495)
(30,495)
(84,421)
(14,793)
(99,214)
(132,809)
1,441,145
1,308,336
2020		 £
£
312,092
16,445
108,771
-
(49,575)
(207,665)
(132,024)
180,068
(26,895)
(26,895)
(83,098)
(16,445)
(99,543)
53,630
1,387,515
1,441,145
2019		 £
£
312,092
16,445
108,771
-
(49,575)
(207,665)
(132,024)
180,068
(26,895)
(26,895)
(83,098)
(16,445)
(99,543)
53,630
1,387,515
1,441,145
2019
180,068
(26,895)
(99,543)
53,630
1,387,515
1,441,145

The notes form part of these financial statements

Page 12

ST FRANCIS' COLLEGE TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE CASH FLOW STATEMENT

1. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

Net cash
Cash at bank and in hand
Debt
Bank loan:
Debt due within 1 year
Debt due after 1 year
Total		 Balance at
1 September
2019
1,441,145
1,441,145
(84,609)
(459,635)
(544,244)
896,901		 Cash flow
(132,809)
(132,809)
(3,099)
87,521
84,422
(48,387)		 Balance at
31 August
2020
1,308,336
1,308,336
(87,708)
(372,114)
(459,822)
848,514

The notes form part of these financial statements

Page 13

ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. COMPANY INFORMATION

The charitable company is incorporated in England & Wales; the address of the company's registered office is Broadway, Letchworth Garden City, Hertfordshire SG6 3PJ.

2. ACCOUNTING POLICIES

Basis of Preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102 (effective 1 January 2015). The College meets the definition of a public benefit entity set out in FRS102. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of the College's long leasehold residential property.

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

Critical accounting Judgements and key sources of estimation uncertainty

In the application of accounting policies, the Governors are required to make judgements, estimates and assumptions that effect the amounts repoirted for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on the financial statements:

Tangible Fixed Assets

Tangible fixed assets costing more than £1,000 are capitalised at cost, inclusive of any incidental expenses of acquisition. The Governors review the College’s fixed assets annually for indications of impairment and make provisions as necessary. As noted below, depreciation is not provided on the College's investment property, but otherwise depreciation is provided as follows in order to write off each asset over its estimated useful life:

Long leasehold property

Motor vehicles - at 20% on cost Fixtures, fittings, furniture and equipment - at rates varying between 10% and 33% on cost Computers - at 25% or 33% on cost

Page 14

ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (continued)

Investment Property

Investment property is included at fair value and is valued annually by the Governors. Any surplus or deficit arising from changes in fair value during the year is recognised in the Statement of Financial Activities. The net fair value gains are unrealised and so are credited to a separate fair value reserve.

In accordance with FRS102, depreciation is not provided for in respect of investment properties. Such properties are held for their investment potential and not for consumption by the charity. This is a departure from the Companies Act 2006, which requires all properties to be depreciated, but the Governors consider that to depreciate them would distort the true and fair view of the financial statements.

Financial Instruments

The financial assets and financial liabilities of the College are all basic financial instruments, as defined by FRS102. Bank loans, hire purchase and finance leases, repayable acceptance fees and fees billed in advance for more than one term are initially recognised at transaction value and measured subsequently at amortised cost. All other financial instruments are initially recognised at transaction value and measured subsequently at their settlement value.

Going Concern

After reviewing the College's financial projections, the Governors have a reasonable expectation that the College will continue to operate for the foreseeable future and so these financial statements are again prepared on the going concern basis.

Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the College and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the College for particular purposes. The aim and use of each restricted fund is set out in these notes to the financial statements.

Incoming Resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the performance conditions attached to the income have been satisfied, receipt is probable, and the income receivable can be measured reliably.

Amounts billed for termly fees and extra-curricular activities are recognised as incoming resources when receivable. Amounts received prior to the balance sheet date for subsequent terms are recorded as fees received in advance. Fees receivable are stated after deducting allowances, bursaries and other remisssions granted by the College.

Government Grants

Income from Government grants is recognised when the College is entitled to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.

Page 15

ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (continued)

Resources Expended

Expenditure is recognised when there is a legal or constructive obligation for a payment to a third party, settlement is probable and the amount of the obligation can be measured reliably. Value added tax is not recoverable and is therefore included in the relevant expense.

All expenditure is classified under headings that aggregate all costs related to the category; where costs cannot be attributed directly to particular headings, they are allocated to activites on a basis consistent with the use of the resources.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charitable company. They include the cost of board meetings, Governors’ insurance and audit fees.

Pension Schemes

The College contributes to the Teachers’ Pension Defined Benefits Scheme, which is a multi-employer pension scheme, at rates set by the Scheme Actuary and as advised to the College by the Scheme Administrator. It is not possible to identify the assets and liabilities that are separately attributable to the College and therefore, in accordance with FRS102, the scheme is accounted for as a defined contribution scheme. Contributions payable for the year, as advised by the Scheme Administrator, are charged to the SOFA.

For non-teaching staff, the College also contributes to individual personal pension schemes. These are all defined contribution schemes. Contributions payable for the year are charged to that year's SOFA.

Operating Leases

Rentals payable under operating leases are charged to the SOFA on a straight line basis over the lease term.

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ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

3. INCOME FROM CHARITABLE ACTIVITIES

Gross tuition fees
Less: scholarships, bursaries, discounts and allowances
Other educational income
Language, music, dance and other tuition
College trips and courses
Other activities
Ancillary trading income
Coach, taxis and other pupil travel
Exam fees
Pupil insurance
Registration & entrance fees
After-school clubs
Other activities
4.
Letting of College facilities
Letting for Summer School
Non-repayable acceptance fees and charges for late fees
5.
The year’s surplus is stated after charging:
Depreciation – owned assests
Operating lease rentals
Auditors’ remuneration for audit (inc Vat)
Auditors’ remuneration for other services (inc Vat)
Bank loan interest
Governors’ liability insurance
ACTIVITIES FOR GENERATING FUNDS
EXPENDITURE
College fees		 2020
£
5,921,481
(477,714)
5,443,767
233,224
73,918
8,428
315,570
81,766
3,563
10,352
13,528
3,139
17,408
129,756
2020
£
58,003
-
2,000
60,003
2020
£
89,493
21,959
7,000
5,000
14,793
964		 2019
£
6,229,054
(456,828)
5,772,226
256,146
113,551
9,487
379,184
135,409
9,211
10,418
11,565
4,908
17,571
189,082
2019
£
95,869
33,762
5,500
135,131
2019
£
108,772
44,188
7,000
5,000
16,445
876

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ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

6. STAFF COSTS

Staff costs comprise:

Salaries and wages
Social security
Pension contributions		 2020
£
3,042,472
292,866
512,398
3,847,736		 2019
£
3,067,700
288,044
376,492
3,732,235

The above staff costs include a termination payment of £3,464 (2019: £nil).

The average weekly number of employees during the year was as follows:

Teaching staff
Non-teaching staff		 Full-time
Full-time
Individuals
equivalent
Individuals
equivalent
79
63
79
63
34
23
37
28
2019
2020
113
86
116
91

One employee (2019: one) received emoluments that fell between £100,000 and £110,000. With respect to this employee, the College is contributing to a defined benefit pension scheme.

One employee (2019: nil) received emoluments that fell between £70,000 and £80,000, and no employees (2019: one) received emoluments that fell between £60,000 and £70,000. With respect to this employee, the College is contributing to a defined contribution pension scheme.

During the year, no remuneration (2019: £nil) was paid to Governors. In addition to the Governors, the key management personnel of the College included the Headmistress, the Deputy Headmistress, the Director of Studies, the Head of Sixth Form, the Head of Prep Department and the Bursar. The aggregate employment payments to or for these employees amounted to £489,433 (2019: £391,495 - in the 2019 accounts, this amount was stated as £382,160, as some employer's pension contributions were inadvertently omitted). The increase in cost is due to the Head of Sixth Form joining the Senior Leadership Team in September 2019 and employer's pension contributions for teaching staff rising from September 2019.

7. ANALYSIS OF TOTAL RESOURCES EXPENDED

Charitable activities
Governance
Teaching
Welfare
Premises
Support
College operating costs
Total resources expended		 Staff
2020
2019
Costs
Other
Depreciation
Total
Total
£
£
£
£
£
3,335,350
289,578
24,885
3,649,813
3,602,511
-
610,928
7,179
618,107
790,737
177,164
609,861
50,250
837,275
740,204
462,999
484,386
7,179
954,564
1,010,797
-
53,791
-
53,791
25,828
3,975,513
2,048,544
89,493
6,113,550
6,170,077

Staff costs include payments of £127,777 (2019: £131,029) to peripatetic and agency staff.

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ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 September 2019
Additions
Reclassification
Revaluation
At 31 August 2020
DEPRECIATION
At 1 September 2019
Charge for the year
Reclassification
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019		 Investment
property
£
-
-
97,911
602,089
700,000
-
-
-
-
700,000
-		 Long
Leasehold
Land and
Property
£
5,336,151
-
(125,000)
-
5,211,151
1,464,493
-
(27,089)
1,437,404
3,773,747
3,871,658		 Motor
Vehicles
£
97,584
-
-
-
97,584
97,584
-
-
97,584
-
-		 Fixtures,
Fittings,
Furniture
and
Equipment
£
1,624,051
1,795
-
-
1,625,846
1,431,913
71,786
-
1,503,699
122,147
192,138		 Computers
£
363,291
28,700
-
-
391,991
340,515
17,707
-
358,222
33,769
22,776		 Total
£
7,421,076
30,495
(27,089)
602,089
8,026,571
3,334,505
89,493
(27,089)
3,396,908
4,629,663
4,086,571

The College owns a long leasehold residential property that had previously been made available to former headmistresses as part of their remuneration arrangements. Since the property is not required by the current Headmistress and was let throughout the year to a third-party, it has been shown above as an investment property. It was previously carried within Long Leasehold Land and Property at the Governors' 1996 valuation of £125,000, less depreciation of £27,089. With the assistance of a local firm of estate agents familiar with the property, the Governors revalued the property to £700,000 at 31 August 2020, resulting in a revaluation gain of £602,089.

The investment property is used to raise funds for charitable activities, while all other fixed assets are used directly for charitable activities.

If the long leasehold residential property had not been revalued, it would have been included at the following historical cost:

Cost
Aggregate depreciation
Net book value		 2020
£
45,000
(18,736)
26,264		 2019
£
45,000
(18,736)
26,264

In the opinion of the Governors, the College's remaining long leasehold property, being the College itself, has a market value in excess of its carrying value.

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ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

**9. ** DEBTORS
2020 2019
£ £
Debtors for fees and lettings 24,832 37,231
Prepayments and accrued income 113,280 161,873
138,112 199,104
10. CREDITORS: Amounts falling due within one year
2020 2019
£ £
Bank loan 87,708 84,609
Trade creditors 187,493 215,918
Fees received in advance 857,696 989,446
Repayable acceptance fees 24,250 101,498
Social security and other taxes 72,894 70,879
Other creditors 57,865 48,515
Accrued expenses 136,231 67,125
1,424,137 1,577,990
The College receives acceptance fees when pupils join and these are repayable when they leave. Acceptance
fees held for pupils who have left, or who are expected to leave before the next balance sheet date, are
included within creditors falling due within one year, with the balance shown as repayable after one year.
11. CREDITORS: Amounts falling due after more than one year
2020 2019
£ £
Bank loan 372,114 459,635
Repayable acceptance fees 277,373 241,679
Fees received in advance - 36,648
649,487 737,962
12. FEES RECEIVED IN ADVANCE
Fees received in advance comprise the following:
2020 2019
£ £
Fees received in respect of the next academic year 857,696 989,446
Fees received in respect of subsequent academic years - 36,648
857,696 1,026,094

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ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12. FEES RECEIVED IN ADVANCE (continued)

The movement during the year in respect of fees received for subsequent academic years is as follows:

Balance at 1 September 2019
Transferred to creditors due within one year
Balance at 31 August 2020		 £
36,648
(36,648)
-

13. BANK LOANS, HIRE PURCHASE AGREEMENTS AND FINANCE LEASES

The College’s borrowings mature as follows:

Bank loans:
In less than one year
In more than one year but less than two years
In more than two years but less than five years
After five years		 2020
£
87,708
90,375
281,739
-
459,822		 2019
£
84,609
87,183
277,783
94,669
544,244

Bank borrowings are secured on the College’s assets. The College’s bank loans of £459,822 are repayable in monthly instalments by April 2025; interest is payable at a variable rate, which at the balance sheet date was 2.6% pa (2019: 3% pa).

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 August 2020 are represented by:
Tangible fixed assets
Current assets
Creditors due within one year
Creditors due after one year		 Unrestricted
Funds
£
4,629,663
1,445,112
(1,424,137)
(649,487)
4,001,151		 Restricted
Funds
£
-
1,336
-
-
1,336		 Total
£
4,629,663
1,446,448
(1,424,137)
(649,487)
4,002,487

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ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14. STATEMENT OF FUNDS (continued)

Fair value reserve
Government Grants
Total funds
Unrestricted funds
Restricted funds:
Equipment Fund		 Balance at
1 September
2019
£
3,357,309
52,225
-
1,336
1,336
3,410,870		 Incoming
Revaluation
Resources
Gain
£
£
5,949,096
-
-
602,089
151,778
-
2,204
-
153,982
-
6,103,078
602,089		 Resources
Expended
£
5,959,568
-
151,778
2,204
153,982
6,113,550		 Transfers
£
-
-
-
-
-
-		 Balance at
31 August
2020
£
3,346,837
654,314
-
1,336
1,336
4,002,487

The increase in the fair value reserve is attributable to the revaluation of the College's long leasehold residential property.

The Government Grants were in respect of the Coronavirus Job Retention Scheme and were applied towards payroll costs.

The Equipment Fund comprises donations and grants received to purchase specific items of equipment. If there is no restriction on how or where the equipment is to be used, then, once the purchase has been made, the cost of the equipment is transferred to unrestricted funds. The balance of the fund represents unspent cash.

15. TAXATION

The charitable company is a registered charity and is exempt from taxation on income arising from and/or expended on charitable activites; no liability for taxation has arisen during the year.

16. COMMITMENTS UNDER OPERATING LEASES

Annual commitments under non-cancellable operating leases are as follows:

Expiring:
- within one year
- between two and five years		 2020
£
3,591
23,814
27,405		 2019
£
-
63,957
63,957

17. LEGAL STATUS OF THE CHARITY

The charity is a company limited by guarantee and has no share capital. The liability of each member, in the event of a winding-up, is limited to £1.

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ST FRANCIS’ COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18. PENSION SCHEMES

The College participates in the Teachers’ Pension Scheme (England and Wales) (‘the TPS’) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £486,358 (2019: £360,500). At the year-end, £55,746 (2019: £45,091) was owed in respect of this scheme.

The TPS is an unfunded, multi-employer, defined benefits pension scheme governed by the Teachers’ Pensions Regulations 2010 and, from 1 April 2014, the Teachers’ Pension Scheme Regulations 2014. 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 from public funds provided by Parliament.

The employer contribution rate is set following scheme valuations undertaken by the Government Actuary Department. The most recent actuarial valuation was as at 31 March 2016, published on 5 March 2019. This has set the new employer contribution rate at 23.6% with effect from 1 September 2019, an increase of 44%.

To comply with legislation, employees who did not already participate in a workplace pension scheme were enrolled automatically into a new group personal pension plan on 1 May 2014. This scheme is a defined contribution scheme and employees have the right to opt out of it. Contributions to this scheme and to other defined contribution schemes are held in funds administered independently by insurance companies.

The College’s total pension contributions payable for the year were £509,610 (2019: £376,492). At the balance sheet date, the College owed pension contributions of £56,353 (2019: £45,902).

19. ULTIMATE CONTROLLING PARTY

The College is controlled by the Board of Governors.

20. RELATED PARTY TRANSACTIONS

No remuneration or expenses was paid to any Governor during the year, but the College did pay £964 (2019: £876) for Governors’ indemnity insurance. During the year, one Governor (2019: one) was charged tuition fees of £33,807 (2019: £33,691), on the same terms as other parents. Two members (2019: two different members) of the Senior Leadership Team were charged tuition fees totalling £21,082 (2019: £11,458), after receiving the usual discounts available to staff members and scholarships.

The college was charged £678 (2019: £nil) for the supply of furniture by a business in which the spouse of a member of the Senior Leadership team has an interest. At the balance sheet, no amounts (2019: £nil) were owed to this business.

Page 23

ST FRANCIS' COLLEGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

21. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
Funds
£
INCOME:
Donations
-
Charitable activities:
College fees
5,772,226
Other educational activities
379,184
Ancilliary trading income
189,082
Other trading activities
135,131
Interest receivable
-
Total incoming resources
6,475,623
EXPENDITURE:
Charitable activities:
College operating costs
6,163,531
Total expenditure
6,163,531
NET INCOME
312,092
Funds brought forward 1 September 2018
3,097,442
Funds carried forward 31 August 2019
3,409,534
22.
FINANCIAL INSTRUMENTS
Financial liabilities measured at amortised cost
Interest on financial liabilities measured at amortised cost		 Restricted
Fund
£
6,546
-
-
-
-
-
6,546
6,546
6,546
-
1,336
1,336
2020
£
761,445
14,793		 Total
2019
£
6,546
5,772,226
379,184
189,082
135,131
-
6,482,169
6,170,077
6,170,077
312,092
3,098,778
3,410,870
2019
£
924,069
16,445

Financial instruments measured at amortised cost comprise bank loans, repayable acceptance fees and fees billed in advance for terms other than the imminent one.

Page 24