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2020-08-31-accounts

CHARITY NUMBER: 292683 COMPANY REGISTRATION NUMBER: 01946972

THORPE HOUSE SCHOOL TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

THORPE HOUSE SCHOOL TRUST

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

PAGE
Governors, Officers and Advisers 1
Annual Report of the Governors 2 - 9
Statement of Governors’ Responsibilities 10
Auditors’ Report 11 - 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 - 30

THORPE HOUSE SCHOOL TRUST GOVERNORS, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

Company name and number: Thorpe House School Trust (no.01946972) (‘the Trust’) Charity registered number: 292683 Principal Office: 29 Oval Way, Gerrards Cross, Buckinghamshire, SL9 8QA

Governing Body and Trustees:

The members of the Governing Body of the Trust are also the current members and directors of the Trust and its trustees for the purpose of charity law. Throughout this report in all capacities they are collectively referred to as the Governors, the Governing Body or the Board.

The Governors who served during the year ended 31 August 2020 were:-

David Ralph Stanning (Chairman) Andrew Charles Bannister Richard John Coward Chris David Gorner (Co-opted member) David Forrest Hoy (resigned 31 August 2020) Roy Alexander MacMillan Amanda Caroline Myers Rennie Raja Jacqueline Joanna Symons (resigned 31 August 2020) Michael Reginald Wakefield Ruth Helen Webber

Senior Leadership Team: Headmaster WPN Pietrek M.A., B.A. (Hons), P.G.C.E Head of Upper School GP Wells B.Hum. (Hons), P.G.C.E Head of Middle School SR Day B.Sc. (Hons), P.G.C.E. (Appointed to SLT in Jan 2020) Head of Prep Department KR Hampshire B.A. (Hons), P.G.C.E (Relinquished SLT role in Dec 2019) Head of Lower School NHM Doran M.A. B.A (Hons), P.G.C.E Head of Curriculum SM Jenkins M.A. B.Sc. (Hons) (Appointed to SLT in Jan 2020) Bursar and company secretary JEM Potter B.A. (Hons), A.C.M.A

Bankers: Lloyds Bank, 33 Packhorse Road, Gerrards Cross, Bucks SL9 8PF

Auditor: Crowe U.K. LLP, Aquis House, 49-51 Blagrave Street, Reading RG1 1PL

Page 1

THORPE HOUSE SCHOOL TRUST

REPORT OF THE GOVERNORS

FOR THE YEAR ENDED 31 AUGUST 2020

The Governors of Thorpe House School present their annual report for the year ended 31 August 2020 under the Companies Act 2006 and the Charities Act 2011, together with the audited financial statements for that year, and confirm that the latter comply with the requirements of the Companies Act 2006, the Company’s Articles of Association and the Charities SORP 2015.

GOVERNORS’ REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Thorpe House School Trust is a private company limited by guarantee incorporated under the Companies Act 1985 on 12 September 1985 and governed by its Memorandum and Articles of Association. It is registered as charity no. 292683 with the Charity Commission.

Governing Body

The members of the Governing Body (‘the Governors’), who are also required under the Articles of Association to be Members of the Trust, have each been elected or have had their election ratified at a full Governors’ meeting on the basis of nominations received from serving Governors and the Headmaster. Governors, who include amongst their number parents of former pupils, an educationalist and professionals from business, are assessed on their eligibility, personal competence and commitment, specialist skills and experience. Each Governor in his or her capacity as a Member of the Trust has agreed to contribute an amount not exceeding £1 in the event of the Trust being wound up.

During the course of this academic year, 10 individuals served as Governors with one co-opted member, with 2 resignations during or at the end of the year. As at 1[st] September 2020, there were 8 Governors and one co-opted member.

Members of the Trust

The current Members of the Trust are the Governors.

Governor Induction and Training

New Governors are provided with a copy of the latest AGBIS Guidelines for Governors explaining their roles and summarising their legal obligations under charity and company law, full Accounts showing the recent financial performance of the Trust for the preceding year, the ISI compliance report and they have made available to them a copy of the Trust’s Memorandum and Articles of Association, the current School Strategic Plan and the ISC census and annual report. They are also briefed on the Board committee and decision-making processes. During their selection and induction, they have meetings with the Headmaster, the Chairman of the Governing Body (or his deputy) and the Chair of the relevant committee to which they may be assigned.

Governors are encouraged to attend appropriate external training events organised by AGBIS or other relevant providers where these will broaden their knowledge and experience and facilitate the undertaking of their role.

At least once a year the full Governing Body is invited to undertake a tour of Thorpe House School (‘the School’) during which the Governors have the opportunity to meet members of staff and inspect the School’s facilities. There is also normally an annual Governors’ Day when Governors are invited to come to the School, to observe lessons and inspect sporting and other facilities and then meet with the staff over lunch or tea in a more social environment. Recent developments promoting the interaction of staff and Governors include further social gatherings and also Strategy sessions at which strategy and associated issues are discussed in open forum, with members of the Senior Leadership Team encouraged to contribute. During the past year, some of these activities have been curtailed because of Covid-19-related restrictions.

Page 2

THORPE HOUSE SCHOOL TRUST REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Governors' Indemnity Insurance

The School has purchased Governors' indemnity insurance through Zurich Insurance plc. to provide cover up to £2 million.

Key Management Personnel

The day-to-day running of the School is delegated by the Governing Body to the Headmaster and Bursar, as the key management personnel, who in turn are supported by the other members of the Senior Leadership Team. The Headmaster and the Bursar are encouraged to attend all meetings of the Governing Body’s main committees.

The remuneration of the Headmaster is set by the Board. The Board are also consulted over policy objectives to provide appropriate incentives to encourage enhanced performance and to reward staff fairly and responsibly for their individual contributions to the School’s success.

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other State and independent schools to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere.

Delivery of the Trust’s charitable vision and purpose of providing outstanding all-round education for boys, whilst promoting Christian values, is primarily dependent on the School’s key management personnel.

Organisational Management

The business of the Trust (but not the day-to-day operation of the School) is managed by the Governing Body which meets as a Board at least once in each term. The three main committee groups include the Finance and Estates Committee, the Education and Compliance Committee and the Marketing Strategy and Admissions Committee. Within these is a number of sub-groups which are responsible for all aspects of the School’s operation including finance, buildings, maintenance, safeguarding and compliance, risk management, health and safety, marketing strategy, recruitment and retention of pupils, educational standards, current major projects, and recruitment of governors and key personnel of the School. Committees and sub-groups meet as appropriate and, in the case of the main committees, at least once a term. Since the advent of the Covid-19 pandemic, additional sub-groups have been established to review the immediate impact of the pandemic on the operation of the school and going forward. In addition, most meetings have been held by way of Zoom meetings or similar video conferencing.

The Headmaster is appointed by the Governors to manage the day-to-day operations of the School and as such has delegated authority and responsibility, within the terms of delegation approved by the Governing Body, for all operational matters.

Group Structure and Relationships

The Headmaster, a member of IAPS and the Society of Heads, meets termly with Heads of local IAPS schools, and also with Heads of other local schools. The School is a member of the ISBA and the Bursar meets termly with bursars of local schools. The School is also a member of AGBIS and the Governors are invited to attend relevant training and seminars run by the organisation. From March 2020, as a result of the COVID19 pandemic, training and meetings moved to remote platforms with regular attendance to webinars and meetings encouraged on-line for the Headmaster, Bursar and Governors.

The School continues its work with a number of local charities and schools to widen public access to its schooling, to optimise the use of the School’s cultural and sporting facilities and to awaken in its pupils an awareness of the social context of the education they receive at the School.

Page 3

THORPE HOUSE SCHOOL TRUST REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

STRATEGIC REPORT

ACTIVITIES AND OBJECTIVES

PRINCIPAL ACTIVITY

The Trust was established in 1985 “to promote and provide for the advancement of education of children in the United Kingdom and elsewhere”, and specifically to carry on and develop the School, providing a caring, welcoming and inclusive learning environment for each pupil.

The School, through its Lower (Reception-Year 5), Middle (Years 6-8) and Upper (Years 9-11) Schools, is an independent day school now operating as an all-through school offering a bespoke boy-focused education for boys aged 4 – 16 years.

Strategic objectives

The School’s core objective is to give each pupil every opportunity to achieve his highest possible allround educational standard, such that when he leaves the School he has become a responsible British and global citizen who is resilient, spiritually fulfilled and with positive aspirations.

The School strives to get the best results reasonably possible from boys sitting GCSE at age 16, based on predictions built on a series of different baseline tests during their careers at the School. However, the ambition with pupils of all ages is, through the School’s classroom and extra-curricular programmes, to draw out their abilities and potential, both academic and non-academic, and to awaken and develop wider interests in and awareness of life, to instil proper life values and to motivate them for a successful outcome at the next stage in their education.

Objectives for the year

There has been a strong drive to enhance and improve the school’s facilities and resources and in the past 12 months the following has been accomplished:

Page 4

THORPE HOUSE SCHOOL TRUST REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

ACHIEVEMENTS AND PERFORMANCE

Academic performance

GCSE Results:

From a smaller than usual cohort of just 28 boys, the school achieved a very pleasing set of exam results at GCSE; 37.6% of all grades were achieved at 7-9 (the equivalent of the old A and A* grades). By way of comparison, the national average of top grades is 25.9%. 9 pupils applied for and were offered places at Grammar Schools. Of particular note, History achieved 63% of all grades at 7-9 with Religious Studies at 56%, and Geography at 46%. Across the Sciences, 37.5% of all grades were at 7-9, Maths at 36% and English (Lit and Lang) at 35.7%.

11+ results: Of the 33 boys in the year group, 12 chose to take the exam this year, of whom 4 passed.

Common Entrance results:

As in recent previous years, no pupils chose to sit Common Entrance at age 13.

Significant achievements in areas other than academic subjects, including extra-curricular and sporting successes.

Public Benefit

As required by law, the Governors have continued to have regard to the Charity Commission’s public benefit guidance and in the course of carrying out their duties have endeavoured not only to increase and improve the educational facilities available to pupils but also to extend the School’s activities into the local community, as demonstrated below:

In addition, the School operates an emergency bursary scheme which enables current parents who encounter unexpected short-term financial difficulty to apply for a reduction off one term’s fees. Seven emergency bursaries were awarded in the year ranging from 15% to the full term’s fees being awarded as an emergency bursary.

Page 5

THORPE HOUSE SCHOOL TRUST REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Governors also established a temporary Hardship Fund with the specific objective of assisting those parents for whom the impact of the Covid-19 pandemic presented significant financial challenges.

Other activities of benefit to the community or local charities included the following:

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

Total numbers across the School started the year at 279 pupils on the roll and rose slightly through the year (allowing for both recruitment and departures) to a roll of 281 in the Summer term.

The financial statements for the 12-month period to 31 August 2020 show an operational surplus of £266k which is 6.4% of total income. This is a strong financial performance in a year when, despite the impact of Covid-19, there has been continuing investment in improving both the existing facilities and completing and fitting out the building of the new multi-purpose hall and ancillary building as well as refurbishment of the Reception area. It shows careful management of the School’s finances during a period of time heavily impacted by the COVID19 pandemic and the need to offer a fee variation according to year group for the summer term. The Finance committee have ensured reserves are in place to bridge potential difficult periods if the economy continues to be impacted by the repercussions of COVID during the coming financial year.

The Governors regularly review the finances, budgets and spend against budget, together with a monthly cash flow analysis as part of the effective stewardship of the School.

Fund raising

There were no specific fund-raising activities during the year. The Parents’ Association continues to raise funds for the exclusive purpose of enriching the day-to-day life of the boys and last year donated £6.5k towards the refurbishment of an external play area for the Lower School.

The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.

Page 6

THORPE HOUSE SCHOOL TRUST REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Reserves policy

The Finance Committee regularly reviews the situation on cash reserves and invests these at the best available rates of interest, always having regard to the perceived stability of the relevant financial institution and to the potential need for access to such funds at short notice. As at 31 August 2020, the School held £1,972k in cash deposits largely due to the final drawdown on the loan secured to build the multi-purpose hall and building. Existing reserves had been used during the period of the project to reduce the need to drawdown on the loan until necessary and take advantage of reduced interest payments. As a risk management measure these deposits are currently held in two different financial institutions and in deposit accounts that have different notice periods. A policy has been adopted of ensuring that at least two months of operating costs are held in cash at any point of time to meet operational cash flow needs. The reserves policy adopted by the School relates to cash reserves and states at least two months of operating costs are held as cash reserves at any point in time to meet operational cash flow needs. For the financial year 2019/20, this meant that £644k was held to ensure short-term financial obligations such as salaries, loan payments and contracts could be paid in the event of a short-term financial crisis.

In common with other independent schools, the Governors have invested substantial sums into new School buildings and premises in recent years and have a continuing programme of refurbishment, development and investment to maintain and improve educational facilities for the School’s pupils. Current year improvements, including completion of the MPH project, the refurbishment of the School Reception area and creation of a dedicated design technology practical area with separate classroom and a new physics lab have been funded partly from a significant gift from a former parent with the balance coming from cash reserves with a partial drawdown being taken on the new Lloyds loan funding.

The School’s total funds of £3,330k at the year-end comprise wholly of unrestricted funds, as the previously held restricted funds were dedicated to the physics and DT project. These funds represented £7,016k net book value of fixed assets and £4,699k of bank loans. This gives free reserves of £1.012m which is determined by taking the total of unrestricted funds (£3.33m) less tangible fixed assets (£7.016m) and adding back any long term borrowings (£4.699m).

RISK MANAGEMENT

The Governing Body, with particular assistance from the Finance and Estates Committee, continues to keep the School’s operation and activities under constant review, particularly with regard to any major financial and operational risks that may arise from time to time as well as the systems and procedures established to manage them.

The management of safeguarding and child protection, regarded as being of paramount importance by the School and Board, is overseen by at least two designated Governors. These vital aspects of the Governing Body’s responsibilities are now consolidated under the auspices of a reorganised Education and Compliance committee (including at least two Governors as members) that has responsibility for all matters affecting and relevant to the over-riding importance of child safety, protection and welfare (especially mental) of pupils and staff, as well as relevant health and safety and policies generally.

Health and Safety is always a significant area for risk management. The risks range from fire and infrastructure to personal risks (most notably when away from the school on trips and expeditions). The level and breadth of activity at the School remains impressive and the risks associated with all activities are minimised by thorough planning and risk assessment. The Health and Safety committee has a designated Governor who reviews policies, operations and conducts an annual health and safety walkaround. This is in addition to the external consultants who ensure compliance on all health and safety legislation.

Detailed consideration of risk is delegated to the Headmaster and Bursar, assisted by a group of Governors. A comprehensive risk register has been drawn up to enable the Governing Body more easily to identify and review the risks to which the School is exposed and the potential damage to people, property and reputation. This register is regularly reviewed by the relevant committees tasked with monitoring the various risk areas and perceived threats are reviewed at each Board meeting. The Governors evaluate the effectiveness of current plans and strategies for managing all identified major risks for the School, including crisis management.

Page 7

THORPE HOUSE SCHOOL TRUST REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

COVID19 has demanded its own risk assessment. The Return to School (RTS) group has been established which consists of four governors, the headmaster and bursar. The group meet regularly to review the risk assessment relating to COVID measures and discuss the latest Government, Society of Heads and ISBA advice and ensure the correct practices are established and observed in the School, with weekly updates in this context from the Bursar.

In the context of financial risk, the Governors remain acutely aware of the challenges to parents across the independent sector in terms of affording school fees. The current economic climate resulting from the pandemic will almost certainly have an impact on the affordability of fees, whilst increased costs for the School, such as the substantial increase in employers’ contribution relating to teachers’ pensions and the additional costs associated with ensuring a safe environment for pupils during the pandemic, will continue to challenge the School’s ability to control its costs and generate a surplus to invest in the benefit of the boys’ education.

The Governors and management recognise the importance of focusing on sustaining pupil numbers, with their direct and significant financial impact on the School’s viability. The School continues to thrive at senior level, but Lower School numbers, although satisfactory, need to grow and the School continues to focus in recruiting and retaining pupils at the youngest end of the School. The Governors recognise that there is a careful balancing act to be undertaken between maintaining fees at a manageable level and continuing to provide the facilities and teaching experience that parents demand and deserve for their boys.

FUTURE PLANS

Prior to the impact of the Covid-19 pandemic, the Governors met as a committee in January 2020 to discuss strategy and determine key areas of focus. It was agreed that from September 2020, the nursery offering would cease due to low intake, with a potential positive being the development of partnerships and links with existing nursery competitors to secure numbers for the school’s future reception classes. Unfortunately, progress in this respect has been inhibited by Covid-19 restrictions. The School will continue to be an all-through school for boys aged 4-16 years, maintaining a traditional ethos where strong British values are actively encouraged, whilst encouraging knowledge of all faiths to recognise the School’s increasing ethnic diversity.

The Board continues with its policy of looking to improve and expand the School’s facilities as rapidly as can be achieved and funds permit. Plans are in place to develop the Lower School hall into a studio for use as a teaching space for drama and productions. Investment will continue in technology to enhance learning in the classroom and to enable seamless remote teaching. The enhancement programme where Year 9 boys study 9 GCSEs alongside an enrichment programme which includes Mandarin, first aid, additional minor indoor sports, independent learning, charity initiatives and current affairs is in place to commence in the autumn term.

PROVISION OF INFORMATION TO AUDITORS

Each of the persons who is a Governor at the time when this Governors’ report is approved has confirmed that so far as he or she is aware, having taken all the steps that ought reasonably to have been taken as a Governor in order to be aware of any information needed by the Trust's auditors in connection with preparing their report and to establish that there is no relevant audit information of which the Trust's auditors are unaware.

Page 8

THORPE HOUSE SCHOOL TRUST REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 RE-APPOINTMENT OF AUDrroRS In accordanGe with s.485 of the compan￿ Act 2006, a resolullon prowjsing the re-appointment of Cn)we U.K. LLP as auditors to th8 (yjmpany will be piopos8d at the 2021 Annual General M8eling. ApprovgJ and aLrthorisad by the Board on 27/11120 and slgned on its behalf by D R Slannlng Chaim)an Page 9

THORPE HOUSE SCHOOL TRUST STATEMENT OF GOVERNORS’ RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2020

The Governors (who are also directors of Thorpe House School Trust for the purposes of company law) are responsible for preparing the Governors’ Annual Report (incorporating the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Governors to prepare financial statements for each financial period. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the governors are required to:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 10

Crowe U.K. LLP

Chartered Accountants Member of Crowe Global Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL, UK Tel +44 (0)118 959 7222 Fax +44 (0)118 958 4640 www.crowe.co.uk

AUDITORS’ REPORT TO THE MEMBERS OF THORPE HOUSE SCHOOL TRUST

Opinion

We have audited the financial statements of Thorpe House School Trust for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet 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 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Crowe U.K. LLP is a limited liability partnership registered in England and Wales with registered number OC307043. The registered office is at 55 Ludgate Hill, London EC4M 7JW. A list of the LLP’s members is available at the registered office. Authorised and regulated by the Financial Conduct Authority. All insolvency practitioners in the firm are licensed in the UK by the Insolvency Practitioners Association. Crowe U.K. LLP is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Crowe U.K. LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global.

Page 11

AUDITORS’ REPORT TO THE MEMBERS OF THORPE HOUSE SCHOOL TRUST (CONTINUED)

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ 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 12

AUDITORS’ REPORT TO THE MEMBERS OF THORPE HOUSE SCHOOL TRUST (CONTINUED)

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 9 the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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.

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

Janette Joyce

Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

Aquis House 49-51 Blagrave Street Reading RG1 1PL

Date: 21 December 2020

Page 13

THORPE HOUSE SCHOOL TRUST STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Notes
INCOME FROM:
Charitable activities:
School fees receivable
4(a)
Other income
4(b)
Non-ancillary trading
income
Rental income
Investments:
Investment income
Voluntary sources:
Donations
Government grant income
Other income
Total
EXPENDITURE ON:
Charitable activities:
School operating costs
5
Raising Funds:
Financing costs
Marketing and advertising
Total
5
Net income
6
Transfers between funds
Other recognised gains/(losses):
(Losses)/gains on investments
NET MOVEMENT IN FUNDS
FUNDS BROUGHT FORWARD
FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
3,836,838
125,989
51,550
3,996
6,940
104,585
2,453
4,132,351
3,703,833
113,213
49,294
3,866,340
266,011
59,080
(292)
324,799
3,005,159
3,329,958		 Restricted
Funds
£

-

-
-
-

-

-
-
-
-
-
-
-
-
-
(59,080)
-
(59,080)
59,080
-		 2020
£
3,836,838
125,989
51,550
3,996
6,940
104,585
2,453
4,132,351
3,703,833
113,213
49,294
3,866,340
266,011
-
(292)

265,719
3,064,239
3,329,958		 2019
£
4,174,978
167,959
19,226
-
951
-
8,941
-
2,664
4,374,719
3,779,050
95,095
58,521
3,932,666
442,053
-
78
442,131
2,622,108
3,064,239

The notes on pages 17 to 30 form part of these financial statements

Page 14

THORPE HOUSE SCHOOL TRUST BALANCE SHEET 31 AUGUST 2020 COMPANY NUMBER 01946972 2020 2019 Notes FIXED ASSETS Tangible assets Investments 7,014,537 4.951,807 7,016267 4,953,829 CURRENT ASSETS Debtors Cash at bank and in hand 10 76,522 1972 623 118,937 1063 385 2.049,145 1,182,322 CREDrroRS: Amoun15 fallin9 due withln one year 11 1062 160 NEf CURRENT ASSErs 1055 712 120 162 TOTAL ￿SEr3 LESS CURRENT LIA8ILrnES 8.071.979 5.073.991 CREDITORS: Amounts falling due after more than one year 12 4 742 021 2 009 752 TOTAL NET ASSETS 3 064 239 THE FUNDS OF THE CHARrrY.. Unre5trictod funds Restrictad income funds 3,329,958 3,005, 159 TOTAL FUNDS 17 Approved and authodsed for issue by the Board of Govemors on 27/11170£o and sign8d on its behalf by D R Stanning Chairma The rK)t8s on pages 17 to 30 fo￿ part of these flnancial stst8ments Page 15

THORPE HOUSE SCHOOL TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

CASH FLOW STATEMENT
Cash flows from operating activities
Net movement in funds
Depreciation
Decrease/(increase) in debtors
(Decrease)/increase in creditors
(Decrease)/increase in concessionary loan
Dividends and interest from investments
Loan interest paid
Investment losses/(gains)
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Dividend and interest income
Net cash used in investing activities
Cash flows from financing activities
Net inflow from bank loans
Loan interest paid
Repayments of bank loan
Net cash provided by financing activities
CHANGE IN CASH AND CASH
EQUIVALENTS IN THE PERIOD
Cash and cash equivalents at the beginning
of the period
Cash and cash equivalents at the end of
the period		 2020
£
£


265,719

167,838

42,415

(204,966)
(38,000)

(3,996)
110,839

292

340,141

(2,004,068)

3,996
(2,000,072)


2,699,733
(110,839)

(19,725)



2,569,169
909,238

1,063,385
1,972,623		 2019
£
442,131
132,412
(3,017)
286,392
-
(951)
72,037
(78)
928,926
(1,656,255)
951
(1,655,304)
529,021
(72,037)
-
456,984
(269,394)
1,332,779
1,063,385

The notes on pages 17 to 30 form part of these financial statements

Page 16

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. COMPANY INFORMATION

The School’s principal activity in the period under review was the provision of a Day School for 3-16 year old boys. The incorporated charity (registered number 01946972 and charity number 292683), is incorporated and domiciled in the UK. The address of the registered office is Thorpe House School, Oval Way, Gerrards Cross, Buckinghamshire, SL9 8QA.

2. ACCOUNTING POLICIES

a)

Accounting Convention

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Thorpe House School Trust School meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

b) Going concern

At the time of approval of the Annual Report, the COVID-19 pandemic continues to evolve and the long term impact on the charity, in common with other businesses, is unknown. The Governors have reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the pupils as well as employment of staff. The charity currently holds significant cash balances which can be supplemented, if needed, by an overdraft facility. Demand for school places at Thorpe House School remains strong for the academic year 2020/21. Conservative cash flow modelling with sensitivity analysis indicates that the cash reserves of the charity are adequate to meet the charity’s obligations as they fall due. Accordingly, the Governors believe the School’s financial resources are sufficient to ensure the School will continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis.

c)

Funds

Unrestricted funds are available for spending within the objects of the company.

Restricted funds are to be used for specified purposes laid down by the donor. Expenditure for those purposes is charged to the fund. When buildings are completed funds are transferred from Restricted to Unrestricted as the restriction on the donation has been fulfilled.

d) Income

All incoming resources are included in the statement of financial activities when the charitable company is legally entitled to the income, the receipt is probable and the amount can be quantified with reasonable accuracy.

School fees represent amounts receivable for educational services provided, including extras. Other income includes chargeable extras, school trips, registration fees, school transport, temporary boarding fees and similar income. Charges for services and use of premises are accounted for in the period in which the service is provided. Bursaries are charged in the period when the offer is conveyed to the recipient except in those cases where the offer is conditional. Such Bursaries are recognised as expenditure when the conditions attaching are fulfilled.

Income from donations is recorded when the amount and receipt is probable.

Page 17

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (Continued)

e) Government grant income

Grants are accounted for under the performance model as permitted by the Charity SORP. The grant income is therefore recognised on a straight line basis over the period of related expenditure.

f) Resources expended

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Expenditure is allocated to expense headings either on a direct cost basis, or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates.

g)

Fixed assets

The School has applied the ‘deemed cost’ provisions of FRS102 in that valuations of previously revalued land and buildings will not be further revalued.

Depreciation is calculated to write down the cost of all tangible fixed assets by equal annual instalments over their expected useful lives. The rates applicable are:-

Freehold buildings 2%-10% per annum Fixtures and Fittings 5% - 25% per annum Plant and equipment 20% per annum

Assets purchased for less than £500 or individual computers, are written off to the Statement of Financial Activities on acquisition.

h) Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

i) Pensions

The School operates a contributory superannuation scheme under the Teachers’ Superannuation Regulations 1976 (amended). The pension costs charged in the period for the Teachers’ Pension Scheme are based on the contributions made to the centralised Government pension scheme run by the Department of Education as stated in note 19.

The charity contributes to the Pensions Trust Growth Plan for certain of its employees. This is in most respects is a money purchase arrangement, but does include certain guaranteed benefit elements. The Plan is a multi-employer scheme. It is not possible in the normal course of events to identify the share of the underlying assets belonging to the individual participating employers and accordingly, in accordance with FRS102, is accounted for as a defined contribution scheme with contributions being recorded as they become payable. The School is not currently required to pay deficit contributions.

The contributions for both Schemes are charged in the Statement of Financial Activities in the period in which they are payable.

j) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

k) Operating Leases

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

Page 18

THORPE HOUSE SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (Continued)

l) Financial instruments

Basic financial instruments include debtors and creditors. Debtors and creditors are initially recognised at transaction value and subsequently measured at amortised cost. Note 21 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to fixed asset investments and debtor balances excluding prepayments, and financial liabilities referring to all creditor balances excluding deferred income.

m) Pupil Fee Deposits

The Governors have reviewed the contract terms under which Pupil fee deposits are held by the School. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The School does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2020 have been included within current liabilities. The prior year Pupil fee deposits balance has been similarly represented.

n) Taxation

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

3. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the charity’s accounting policies, which are described in note 2. Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The Governors consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.

4. INCOMING RESOURCES

a) SCHOOL FEES

The School’s fee income comprised:
Gross fees
Less: bursaries and allowances		 2020
£
4,173,967
(337,129)
£ 3,836,838		 2019
£
4,491,597
(316,619)
£ 4,174,978

Page 19

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

4. INCOMING RESOURCES (continued)

b) CHARITABLE ACTIVITIES

Other income:
Charitable extras - income
Registration fees
5.
TOTAL RESOURCES EXPENDED
Staff costs
£
Charitable activities
School operating costs:
Teaching costs
2,254,383
Welfare costs
108,301
Premises costs
49,707
Support costs
342,859
2,755,250
Raising funds
Bank charges
-
Interest paid
-
Marketing and advertising
-
-
TOTAL RESOURCES
EXPENDED
2,755,250		 Depreciation
£
-
-
99,813
68,025
167,838
-
-
-
-
167,838		 2020
116,689
9,300
£
125,989
Other
£
230,726
99,550
272,174
178,295
780,745
2,374
110,839
49,294
162,507
943,252		 2019
157,759
10,200
£
167,959
2020
£
2,485,109
207,851
421,694
589,179
3,703,833
2,374
110,839
49,294
162,507
3,866,340

Total governance costs included above are £14,477 (2019: £14,020).

Page 20

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

5. TOTAL RESOURCES EXPENDED (continued)

2019 COMPARATIVE

Staff costs
Depreciation
£
£
Charitable activities
School operating costs:
Teaching costs
2,280,633
-
Welfare costs
120,870
-
Premises costs
46,325
89,482
Support costs
325,463
42,930
2,773,291
132,412
Raising funds
Bank charges
-
-
Interest paid
-
-
Marketing and advertising
-
-
-
-
TOTAL RESOURCES
EXPENDED
2,773,291
132,412
NET INCOME
Net incoming resources are stated after charging:
Depreciation - owned assets
Operating lease payments
Goodwill amortisation
Auditors’ remuneration – audit fees		 Other
£
313,847
154,993
220,021
184,486
873,347
23,058
72,037
58,521
153,616
1,026,963
2020
£
167,838
41,722
-
11,245		 2019
£
2,594,480
275,863
355,828
552,879
3,779,050
23,058
72,037
58,521
153,616
3,932,666
2019
£
132,412
55,170
-
10,920

6. NET INCOME

Page 21

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

7. STAFF COSTS

Wages and salaries
Social security costs
Pension costs (see note 19)		 2020
2,182,840
182,334
390,076
£ 2,755,250		 2019
2,267,629
211,183
294,479
£ 2,773,291

The average monthly number of persons employed by the School during the period was:

Teachers
Admin and housekeeping		 No.
46
27
73		 No.
49
24
73

There were no redundancy payments in the period (2019: £13,125).

The number of employees whose emoluments exceeded £60,000 were:

£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000
£90,000 - £100,000		 2020
1
-
1
-		 2019
1
-
-
1

Retirement benefits are accruing for the two (2019: two) higher paid employees. Contributions in the year totalled £23,009 (2019: £18,523) .

The key management personnel of the Charity consist of the Trustees and the Senior Management Team as noted on page 1. Key management personnel received aggregate remuneration (including employer pensions and employer NI) of £522,554 (2019: £480,959) .

No remuneration (2019: £Nil) was paid to members of the Board of Governors and expenses of £120 (2019: £98) were reimbursed to one Governor.

Page 22

THORPE HOUSE SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

8. TANGIBLE FIXED ASSETS

DEEMED COST
At 1 September 2019
Additions
Transfer
Disposals
At 31 August 2020
DEPRECIATION
At 1 September 2019
Transfer
Charge for the period
Disposals
At 31 August 2020
NET BOOK
VALUES
31 August 2020
31 August 2019		 Freehold
land and
buildings
£
3,437,104
40,500
3,245,129
-
6,722,733
272,793
-
84,396
-
357,189
£ 6,365,544
£ 3,164,311		 Plant and
equipment
£

35,535

-

-
(14,512)
21,023

35,535

-

-
(14,512)
21,023
£
-
£
-		 Fixtures
and fittings
£
812,851
394,317
-
-
1,207,168
487,633
-
83,442
-
571,075
£
636,093
£
325,218		 Assets under
course of
construction
1,462,278
1,795,751
(3,245,129)
-
12,900
-
-
-
-
-
£
12,900
£ 1,462,278		 Total
2020
£
5,747,768
2,230,568
-
(14,512)
7,963,824
795,961
-
167,838
(14,512)
949,287
£ 7,014,537
£ 4,951,807

As at 1 August 2011 the Trust owned leases on the land and buildings known as Thorpe House School, including Heywood House and the school playing fields, with terms of 75 years commencing on 1 September 1985. On 18th May 2012 the Trust completed the acquisition of the underlying freehold interests in the sites. In addition the Trust Acquired the former Kingscote School, excluding the playing field, on 9th August 2012 and then its playing field on 11th September 2014, renaming the site Thorpe House Pre-prep.

The entirety of the freehold properties were revalued at £3,150,000 on 16th September 2015 by Martin & Pole, Chartered Surveyors. The Freehold Property values comprise both the previously granted leases, which continue in force, and the newly acquired freehold interests, as encumbered by these leases.

The School has applied the ‘deemed cost’ provisions of FRS102 in that valuations of previously revalued land and buildings will not be further revalued.

Page 23

THORPE HOUSE SCHOOL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

9.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 August
Additions
Disposal
Revaluations
At 31 August
10.
DEBTORS:Amounts falling due within one year
Trade debtors
Prepayments and accrued income
11.
CREDITORS:Amounts falling due within one year
Bank loan & overdrafts (see Note 13a)
Concessionary loan (see Note 13b)
Trade creditors
Other taxes and social security
Other creditors
Deposits held
Accruals and deferred income
Included within accruals and deferred income are tuition fees
terms:
Deferred Income
Deferred income at 1 September 2019
Resources deferred in the year
Amounts released from previous years
Deferred income at 31 August 2020		 2020
2019
£
£
2,022
1,944
-
-
-
-
(292)
78
1,730
2,022
2020
2019
£
£
10,469
44,518
66,053
74,419
£
76,522
£
118,937
2020
2019
£
£
121,119
8,880
24,000
-
120,247
223,200
53,331
63,568
49,079
35,016
188,118
188,050
437,539
543,446
993,433
1,062,160
received in advance for future
2020
2019
£
£
362,115
315,468
298,591
362,115
(362,115)
(315,468)
298,591
362,115

Page 24

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

12. CREDITORS: Amounts falling due after more than one year

Bank loan (see Note 13a)
Concessionary loan (see Note 13b)		 2020
£
4,577,521
164,500
£ 4,742,021		 2019
£
2,009,752
-
£ 2,009,752

13. LOANS AND OTHER BORROWINGS

a) The bank loans are repayable as follows:-

Within one year
Between one and two years
Between two and five years
Over five years		 2020
£
121,119
126,004
409,840
4,041,677
4,698,640		 2019
£
8,880
53,280
213,120
1,743,352
2,018,632

There were two different Lloyds loan arrangements in the financial period, secured by a legal charge over the School’s property.

b) The concessionary loan is repayable as follows:-

Within one year
Between one and two years
Between two and five years
Over five years		 2020
£
24,000
30,600
92,700
41,200
188,500		 2019
£
-
-
-
-
-

The concessionary loan relates to the enclosure, including changing rooms and pool plant equipment, installed over the existing external pool. The cost of this project was paid for by an external swim school provider in exchange for hiring the pool to deliver swimming lessons. The loan will be repaid over a total period of 8 years.

Page 25

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

14. ANALYSIS OF MOVEMENT IN NET DEBT

Cash at bank and in hand
Bank loan
Concessionary loan
Closing net debt		 At 1 September
2019
£
1,063,385
(2,018,632)
-
(955,247)		 Cashflow
£
909,238
(2,680,008)
(188,500)
(1,959,270)		 At 31 August
2020
£
1,972,623
(4,698,640)
(188,500)
(2,914,517)

15. CAPITAL COMMITMENTS

At 31 August 2020, the School had capital commitments £12,900 ( 2019: £1,751,128).

16. OPERATING LEASE

At 31 August 2020 Thorpe House School Trust had future minimum lease payments under noncancellable operating leases as detailed below:-

Plant and machinery
Within one year
Within two to five years		 2020
£
48,463
117,254
£
165,717		 2019
£
26,267
36,633
£
62,900

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2020

Fixed assets
Net current assets
Long term Liabilities
At 31 August 2020
2019
Fixed assets
Net current assets
Long term Liabilities
At 31 August 2019		 Unrestricted
funds
£
7,016,267
1,055,712
(4,742,021)
£ 3,329,958
Unrestricted
funds
£
4,953,829
61,082
(2,009,752)
£ 3,005,159		 Restricted
funds
£
-
-
-
£
-
Restricted
funds
£
-
59,080
-
£
59,080		 Total
Funds
2020
£
7,016,267
1,055,712
(4,742,021)
£ 3,329,958
Total
Funds 2019
£
4,953,829
120,162
(2,009,752)
£ 3,064,239

Page 26

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

18. RESTRICTED FUNDS

2020
Restricted Funds
Educational Fund
Total		 Balance at 1
September
2019
£
59,080
59,080		 Incoming
Resources
£
-
-		 Resources
expended
£
-
-		 Transfers
£
(59,080)
(59,080)		 Balance at
31 August
2020
£
-
-

Educational Fund: this fund is for the purpose of improving the educational experience for the pupils. There was a transfer of £59,080 from the Educational fund to the General funds of the School to cover majority of the refurbishment of the Design Technology and Science labs.

2019
Restricted Funds
Educational Fund
Total		 Balance at 1
September
2018
£
59,080
59,080		 Incoming
Resources
£
-
-		 Resources
expended
£
-
-		 Balance at
31 August
2019
£
59,080

59,080

19. PENSION SCHEME

a) Teaching Pension Scheme

The School participates in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff. The pension charge for the period includes contributions payable to the TPS of £354,873 (2019: £264,290) and at the year-end £41,225 (2019: £34,317) 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 2019, confirmed an employer contribution rate would increase from 16.4% to 23.6% from 1 September 2019. Employers are also currently 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.

Page 27

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

19. PENSION SCHEME (continued)

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

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

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

Until a remedy to the discrimination conclusion has been determined by the Employment Tribunal 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.

b) Non-Teaching Pension Schemes

Pension Trust

The School’s non-teaching staff are entitled to membership of the Pension Trust Growth Plan (“the Plan”). This is a multi-employer pension plan which in most respects is a money purchase arrangement, although it does include certain guarantee elements as described below.

Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from normal retirement dates. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase of an annuity.

The rules of the Plan give the Trustee the power to require employers to pay additional contributions in order to ensure that the statutory funding objective under the Pensions Act 2004 is met. The statutory funding objective is that a pension scheme should have sufficient assets to meet its past service liabilities, known as Technical Provisions. The School is not currently required to pay deficit contributions.

Contributions totalling £35,203 (2019: £30,155) were payable in the period. At the year-end £6,267 (2019: £nil) was owing in respect of contributions to this scheme.

Page 28

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

20. RELATED PARTIES

The wife of a governor, R MacMillan, is employed by the school as the Head of Learning Support.

The total salary and employers pension contributions paid during the year in respect of the above was £58,515 (2019: £59,790) .

21. FINANCIAL INSTRUMENTS

Financial assets measured at amortised cost
Financial assets measured at fair value
Financial liabilities measured at amortised cost		 2020
£
1,986,204
1,730
5,195,032		 2019
£
1,119,922
2,022
2,646,229

The company’s income, expense, gains and losses in respect of financial instruments are summarised below

Interest income and expense:
Interest and dividend income
Interest expense
Impairment losses		 2020
£
3,996
110,839
21,714		 2019
£
951
72,037
103

Included within financial assets measured at amortised cost are cash at bank, trade debtors and other debtors and accrued income.

Included within financial assets measured at fair value are Investments.

Included within financial liabilities measured at amortised cost are trade creditors, accruals, other creditors, deposits held and bank loans.

Page 29

THORPE HOUSE SCHOOL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2020

22. COMPARISON STATEMENT OF FINANCIAL ACTIVITIES

INCOME FROM:
Charitable activities:
School fees receivable
Other income
Investments:
Investment income
Voluntary sources:
Donations
Other income
Total
EXPENDITURE ON:
Charitable activities:
School operating costs
Raising Funds:
Financing costs
Marketing and advertising

Total
Net income
Transfers between funds
Other recognised gains/(losses):
Gains/(losses) on investments
NET MOVEMENT IN FUNDS
FUNDS BROUGHT FORWARD
FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
4,174,978
167,959
-
20,177
-
8,941
2,664
4,374,719
3,779,050
95,095
58,521
3,932,666
442,053
-
78
442,131
2,563,028
3,005,159		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
59,080
59,080		 Total funds
12 months
ended 31
August 2019
£
4,174,978
167,959
-
20,177
-
8,941
2,664
4,374,719
3,779,050
95,095
58,521
3,932,666
442,053
-
78
442,131
2,622,108
3,064,239

Page 30