DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED ILimit¢d by 8U•rnJtee) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED31 AUGUST 2021 Regi￿tred Company Number.. 1947995 Regisiered Charity Number= 294670 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED REPORT AND FINANCIAL STATEMENTS YEAR ENDED31 AUGUST 2021 CONTENTS P*ge Governors, Report Independeni Auditor's Report Statement of Financial Aaivities 10 Balance Sheet Siatemeni of Cash Flow 12 Statement of Accounting Poli¢ies 13-14 Noies to the Financial Statements DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS? REPORT YEAR ENDED31 AUGUST 2021 REFERENCE AND ADMINISTRATIVE INFORMATION GOVERNORS Mr J Allert Mr D Alexander Mr S A Arn7strong Mr C Casielino Ms A Collier MrKSGim Mrs S Hay IResigTr¢d 30 June 2021} Mr D G Henshall (Co-Chairnian} Mrs S-A Huang {Appoint¢d I September 2021) Ms J Honigsb¢rger (AptK)inted 30 June 2021) Mis5 H Kaur Dr P J Magill (Deceased 29 tkcember 2020) Mr K J Mahoney (C￿Chai￿an) Dr R Maloney (Appointed I Sepiember 2021) Mr B Purkiss (Appoirtied I September 2021) MTS R M Reece (Resigned 2 December 2020) KEY MANAGEMENT PERSONNEL HEADMASTER Mr K H G Entwisle (Appointed I September 2020) BURSAR AND COMPANY SECRETARY Mrs J M Twyford REGISTERED OFFICE 12 Castlebar Road London W5 2DR ARCHITECT ADP Archiiecture L 150 Waierloo Road London SEI 8SB AUDITOR HaysmacintyTe LLP 10 Queen Street Place London EC4R IAG BANK The C(Foperalive Bank 16-18 New Broadway London W5 2XL CHARTERED SURVEYOR Gerald Eve 7 Vere Street London WIM OJB INSURANCE BROKER Hettle Andrews & Associates tAd 2 Bnmswick Square Birniingham Bl 2LP SOLICITOR GBH Law Lid 718 Innovotion Place Douglas Drive Godalming SuTrey GU7 IJX DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT (¢ontlnued) YEAR ENDED31 AUGUST 2021 The governors, who are also the tNstee5 and direclor5 of the charitable ¢ompany Dur5ton House School Educational Trust Limited ('*he Trust"). present their report and th¢ audited financial Statements for the year ended 31 August 2021 and confirni that they comply with the r¢quirements of the Charities Act 2011, the Companitt Act 2006, the Memorandum and Articles of Association and the Charitie5 SORP- Second Edition {¢ffe¢tive l January 2019). GOVERNIIYG DOCUMENTS Durston Ho￿e Sd)ool Educational Tn￿( Limited was set up under tts Memorandum and Articles of Association dated 17 S¢pt¢mber 1985 as a company limited by 8uarantee. number 1947995 and also a charity with the Charity Commi55ion, number 294670. The School, previously privately owned. was established in 1886. AIM The School's straiegic aim, a5 a charitable independenl school opernting for the public t¢n¢fiL 15 th¢ attainment of the highest academic levels with the benefit of a comprehensive extrnrycurricular progrdmm oBJE￿IVEs The princip￿ object of the School is to promole and provide for the advancement of education for boys aged from 4 to 13 years. In ihe ￿rthe[anCe of this obje¢t the goveTllots. as the ¢harity tr￿$. have ¢omplied with ihe duty in s.17 of ihe Charities Act 2011 to have due regard io lh¢ Ch8r5ty Cornmission'$ published general and relevant Su￿Se¢E0r guidance conceming the operation of the Public B¢nefil requirement under thai Act. Objeetives for the Ytar The principal objectives for the year were.. to secure one hundred per cent 5ucc¢ss with regard to Year 8 pupils. ¢nty into senior schools and academic scholarships results in keeping with the s¢hool'$ academic expectstions: to continue and, where possible, in¢re05¢th¢ provision of means-tested bursaries io faciliiate wderficcessto the provision of educat&on at Durston House. to develop the School's profile. with regard to public benefiL ID a manner that will encourage a greater level of involvement in the local community. and to continue the development of plans to Combi￿ the three sections of the 5cIH)ol on to the Catlion lioad 51¢¢. ETHO& STRATEGY AND POLICIES Ethos Durston House is a pr¢pardtory sch(x)I for boys welcoming those from all ethni¢, ¢ultur31 and religious backgrounds. The School is proud of its diversity. It is a cornmunity in which mutual respe¢t aThl wKlerstandin& faimess and opportunilies for all are promoted within the framework of its Christian foundation. StrAtegy The governors Jre responsible for setting strategy. The fo¢u$ of their strategy ts ot) the development of the pupils, their coniinued high levels of academic and co-curriculaT achi¢vement and the bToadening of ae¢ess to the education the school provides. In taking Ihis strdtegy forward the governoTS'. Ensure the range of extra-curricular activities available to pupils is stimul#iing and ¢hall¢nging: Invest in technology and the infrastNcture of the school. and Develop Melh(￿]$ for awarding btsrsaries to ensure wider access to pupils from all backgrounds. Dur5ton Hous¢ School ss a charitable trusi which seeks to benefit the public through Ihe pursuit of its 5taÉed aim5 and w¢lcomes pupils from all baCk￿Ounds. Fees are set ai a level to ensure the financial viability of the school. Access Pollcy It is importsnt that access to the education offered is not restricted to th05¢ who can afford full fees. The governors believe pupils benefit from learning wiihin a diverse community. The governors will make reasonable adjustm¢nts to meet the needs of siaff or pupils who are or become disabled. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT Icontinoed) YEAR ENDED 31 AUGUST 2021 Bursary poli¢y Durston House bursary award5 are available to all who mttt its generdl entry requirements and are made solely. and subject to the entry requirements, on the basis of parentsl means or to relieve hardship where a pupil's educaiion and ￿tUre prospects would otherwise b¢ at risL for ¢xampl¢ in th¢ ¢#st of redundancy. The bwsary awards range from 50Y• 10 IOOYO remission of fee5. Asslstance for tea£hin8 Staff As part of the emphasis on attrdCtin8 and retsining high calibre staff. the School offer5 a 50Yp discount to staff memb¢rs who ¢hoose io ethicate their sons at Durston House. Community The governors see Durston House School a5 a part of a wider community. Wh¢r¢ the School can o$si$i the communiry without detriment to advancing the education of its pupils the governors ore delighted to do $0. A Register of Public Benefit Initiaiives records appropriate Ven￿r¢s. in¢luding targets forthe provision of means temed bursaries as proportion of the total number of pupils on role, and the s¢hool's lith with ihe I￿al community, including community use of the School's playing fields. The Head of Complementary Curri¢ulum a¢t$ Ls the charities coordinator arranging various activities during the year, supported by parents and pupils, to rais¢ furtds for oth¢r organisations. The nominated charities for the year were firsrly the Honey Pot Children's Charity, whi¢h works to ¢nhonce th¢ lives of young carers aged 5-12 years by providing respite break5 and on-going outreach supwrt in the UK and s¢¢ondly. Faling Soup Kii¢h¢n= who provide meals for those in need in the Ealing area. ESTATES DEVELOPMENT The planrting application for the development plans to combtne the ihree section5 of the ￿h0o7 on to the Carlion Road site wag submitted to ihe local planning auihoriiy in January 2020 and grdnied approval. Subsequently. a5 required. it was submitted to the Greater London Authority. where in July 2020. it wa5 r¢￿Sed. The governors conside￿d their Options and agreed that the plans should be revised and updated to addres5 the points on which il wa5 refused. The updated planning appli¢ation will b¢ submilled in due course. The programme of routine maintenance to ensure high standard5 are rnaintained a¢ross all school sit¢s ¢oniinued. STRUCTURE, GOVERNANCE AND MANAGEMENT GovernAnee The Annual General Meeting is held in March eA¢h year. The governors of the School. who are also directors of (he Company. are appointed in accordance with the Memorandum and Articles of Associaiion. Responsibiliiy for ihe overall manag¢ment ond organ15ation of ihe S¢h(trol rests with the governors, who meet ai least on a ternily basis. They are supported in carying out their r¢spon5hbilitie5 by the Edu¢ation and Welfare. Esthies Developmeni Finance. Governance and Marketing Cornmittee5, meeting t¢rn)ly. Membership of th¢ five Committees during 2020-21 w&8 as follows-- Education and Welfare.. D Alexander (Chair), Ms A Collier and D Henshall; Estaies D¢velopment.' K J Mahoney (Chair). J Allen and C Cascelino- Finance C Castelino (Chairl, Ms A Collier, Mr K S Girn, Ms J Honigsb¢rger and K J Mahoney. Governance.. D G Henshall (Chair). Miss H Kaur and Mrs R M Reece. Marketing-. S A Arnistrong (Chair), Mrs S Hay. K J Mahoney and Mrs R M Reece. Following a review of Governance by AGBIS. it wa5 agreed that th¢ M0rk¢ting Committee would be disbanded in September 2021 to be replaced by an Executive Marketing Group with Govemor Tepres¢ntriion. Operational Management The task of runrting the School on a day-t￿aY basis is delegaied to the Headmaster and Bursar. The Headmaster and the Bursar attend the governors, meetings and those of the Education and Welfare, Estate5 Development, Finance, Governance and Markeiing Committees. The Headmaster 15 assisted by the Senior Managernent Tepm comprising the t)eputy Head, the Director of Studies and Head of Co-curricular who also attend meetings of the Education and Welfare Commbttee, the Head of Studies Administration, the Head of Junior School. the Head of Pre-Prep and the Bursar. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT (cOntin￿ed) YEAR ENDED31 AUGusf 2021 Governor Recruitrnent, Indu¢tioD and Tr*iNiDg The Govtrnance Commilltt regularly reviews the mix of 5ki115 that is availabl¢ to the Board. New governors ore appointed by the Board until the date of the next Annual General Meeling at which they pre eligible for election for a period of three years. All new 80vemors receive an induction pack. which explains their role, the role of the B(pard, and details of Charity Commission and Companies House requirements. They are assigned a rnentor, offer¢d a tour of the School and given background inforniation on previous Board decisions, Board papers. current financial positio￿ infomation about ihe School and future developments. Govemors attend a rdnge of ¢ourse5 aimed at keeping them up to date with matters relevant io their role5, including Safeguarding training. These are provided by the Association of Governing Bodies of Independeni Schools (AGBIS). HaysmaC1nt￿e LLP, the Trust's auditor5, and iHasco. One gov¢rn(Trr spends a day in school each terni shadowing a memttr of staff OT department and one attends a meeting of the Senior Management Tearn. Governors, Interests None of the governors ha$ a finwcial or beneficial interest in the tsusi. Remuner*tlon ofKey Management Personnel Remurteration policy for key management personnel is seiby the governors. The appropriateness and relevance of the remuneration policy. in¢luding reference io comparisons with oiher independent schoo15 is considered, to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. Delivery of the S¢hool's charitable vision and purpose is primarily d¢pendeni on our key management personnel and staff costs are ihe largest single elem¢nt of our clmritable expenditure. STRATEGIC REPORT A¢hi¢vements #nd Perfom#nLY Pupils At the beginning ofthe yearthere were 363 pupils on Toll. During the ¢ourse ofthe y¢ar ntne pupils left the School. There were seven admissions during the cour5¢ of the s¢h(K)l yew,. we therefore ended the school year with 362 pupils. All boys in Year 8 %ored 5uffiri¢nily well in Common Entrance (or individual school entrance examinations) io gain place5 at their hosen schoo15 at 13+. 14 awards wer¢ offered- four John Collet Academic Scholarships and a major music scholarship to St Paul's Sch¢)ol. A 'STEAM' s¢holarship ￿ John Lyon School. a music exhibiiion io Reed5 School. a sports scholarship to Hampton School and an &ad¢mi¢ srholarthip to Merchant Taylor's School. The 43 Year 8 pupils leaving in July 2021 gained entry to the following schools". eighiio Hampion Sch(M)l. five io The John Lyon sch￿1, 14 to Merchant Taylor5', SIX to St Paul's. two to S¢ Benedi¢i's, two to City of ￿ndOn and one each to Reed's, Radley,Northbridge House. Abirygdo￿ Arts Educational, Villier$ High School. 12 pupils left at I l+ gaining enry to the following schoo15.' Six to St Ben¢di¢t'$. one ea¢h to Hampion. H4b¢rdash¢rs', John Lyon. Ada U)velace. Latymer Upper and Ealing Fields. Bursaries One pupil w8S SUPPOrted by Durston House School during the year with a 3511A bursary. Covid-19 The impa¢t of th¢ Coronavirus pandemic (COVID-19) required changes to the nmning of the School and th¢ educational provision for pupils. Th¢ school undertook extensive wot*s in readiness for September 2020. with th¢ installation of handwashing troughs, bespoke signage, the purchase of handwashing station& and the development of new school routin¢5, protocols and timings io allow for th¢ safe retum of pupils. Safeguardin& policies. control measure d￿UMents and risk assessment documentation wer¢ updated in lin¢ with government gknidance. Throughout the Autumn Tenn the school operated a¢wrding to strict guidelines and ¢ontrol measures, including the use of year group bubbles. one-way 'easy flow, movement guidanre for pupils and staff, stagg¢rd start and finish times and an enhanced clrdning regime throughout all srea5 of th¢ school. Meetings and assemblies were delivered via zoom. Lessons were taught in person al school during the Aulumn Tcm. Pareni evenings were delivered via an on- Itne platforni. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT (eontlthued) YEAR ENDED 31 AUCUST 2021 Th¢ Second lockdowil announced immediately prior to the reh]rn to school in January. A full testing regime including twice- weekly testittg was set up, organised and run at ihe Casilebar Pavilion, supported by qualified tes(ing personnel. The school moved fo a full timetable of online provision for all pupils in the school. which continued until the penultimate week of the Spring Tern). Much work was undertaken in providing a full programme of learnin& pastoral suppon sessions through Tutortime as well as a co- curricular programme of study. Safeguarding concerns and rnonitoring of pupil wellbeing was overseen by three senior members of staff, one for each section of the school. Children of key Workers were taughi in school during the Spring Terni. Following 80vernment guidance the risk assessments were updaied. pupi15 rewrned after the Easter holiday and continued with the twice- weekly antigen lateral flow testing for all staff and pupils in Year$ 7 and 8. Remote tea¢hing provision was further d¢v¢loped to allow for 'blended' learning for pupils or staff who were 5¢1f-isol*ing at home, but able to tea¢h and learn. C&5¢s of COVID-19 were kept to a minimum throughout the year, with only one incident lasting fiv¢ days wh¢Tebythe provision needed to swiich ba¢k to a full remote leaming provision due to a higher incidence of COVID related *#ff illne5S. The School was able to claim £IOO.000 from the BusT¥iess Int¢Truption IDsuran¢¢ Policy for the loss of in¢ome thai resulted from the redu¢tion in fees off¢Trd tt) pamt$ in 2019-20 ￿ a resuli of the respons¢ to ihe Coronavirus pandemic with the introductions of Temoie teaching and l¢arning and partial closure of the ￿h(￿l. Starr The staff - fijll and part-Éime, leaching and support- numbered 89 (77 fu114ime equivalents). During the COUTse of the yeBr, three full-lime members of the teaching staff lefi. three ￿]1-fiMe teachers were appointed in (heir place. The Board of Governors wish to express their thanks io the Headmaster and staff for their conrributions and effons during the year. especially with regard io the Si8nifieant operationol. safeguarding and Health and Safety challenges faced as a resuh of ihe Covid pandemic. Pastoral Care Durston House is committed to safeguarding and promoting the welfare of pupils and expects all staff and volunteers to sha￿ thi5 commitment. Parents are given regular inforniation about their children's social and academic progre5S through parent ev¢nings in addition to the trdditional end of ￿mI and year reports. The School has 'venical grouping, within the OTganisation of the four 'Houses' and 'Vertical Group, meeiings at which younger and older pupils work wgeiher on a number of projects in¢luding workshops on anli-bullyng. Co-¢urrleuiAr aetivities: Sport During th¢ Aulumn T¢mi all rompetitive football fixture5 and matrhes b¢hv¢¢n ￿h0O15 had to b¢ rancelled in accordance with GOV￿lMent Guidance on the CoroDaYiru5 pand¢rnic and the School wa5 Glo%d during the rugby seJ50n. In the Sumrner Terni approximately 80*/0 of cricket fixture5 were able to be played, albeit 5ubjed to the coronaviru5 r¢5trittion5. Musle Many of the pupi15 learn at least one mu5iral instrument and belong to Wdrious ensemble gmups. Boys in Years 3-8 are invited to perform as sol0 prti5ts or ensembles at the Annual Music Concert. In 202￿21, owing to Government Guidance due io the Coronavirus pandemic, thi5 ¢ould not tske place in St Peter's Church for a setond year rurtntrtg. The Junior School and Upper & Middle School choirs were unable io perfonn at this concert or at the annual Carol Service. A scaled down concert at ihe end of the Summer Temh was enjoyed by all. Drama Despite restrictions imposed due to the Coronavirus pandemic, pupils througly)ut the school were able to perforni in their end of terni productions. The Pre-Prep were filmed perfomiing their Christhias productions in their separate forni bubbles under COVID- 19 restrictions. These were shared with parents on the VLE in December 2020. In the Summer Tenn. live perforniance5 With addilional health and safety measures in place were perforn)ed by Year 3 presenring Aesop's Fable4 Year 4. The Tempest and Year B- Oliver. Trips Outings The extension of the curriculum beyond the classroom continued io feaftwe in the school calendar although. owing to the restrictions imposed by the Coronavirus pandemic. some of the planned Outings to place5 of educational and CUl￿ra] interest were not possible. The Trips Policy includes funded residential trip5 for all pupils in Years 4 to 8. In 2020-21 only the Year 7 and 8 trip5 to th¢ Lake Dismct and an Action Adventure Centre could go ahead. Year 3-6 enjoyed school-ba5ed activtlies and learn building activity days at Opera(ion Encounier. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT (eontlll•ed) YEAR ENDED 31 AUCUST 21)21 Envlronmental Initiativeg". Cutting the'carbon footprint, The School contirtues to take very seriously the imryjrtanee of ertViTonmentsl sustriftability in its day-to4ay operations. This is demonstrated by many practical environmental and recycling programmes io reduce emissions in the building5 and by educational initiatives. The school hopes that by setting a good example &4 an institulioffj it ¢an help to inflts¢nc¢ the ¢xp¢¢tations and b¢haviour of its pupils as fvDJr¢ ¢itiz¢ns and leadeTS. FinaA¢ial Review The gov¢mors believe that in order fr>r any successful school to maintsity upgrade and improve the facilities it offtrs there has to b¢ a financial surplus for the required investment in future projects. Therefore financial tsrgets have been set to assist in the budgeting process and in monitoring wfom)ance. The present targds include: a) surplus as a percentage of Djition fees of 89 b) cash flow as a percentage of tuition fees of15•/• c) teaching Staff costs of noi more than 55Ph of tuition ftt The a¢tual restslts for the year show the following= a) A sujylus for the year of £60.310 (2020= £130.193X I'h of tuition fees (2020- 30/0) b) Sutplus from opeNions before depreciation of £459.688 (2020= £538.577). P/• of tuition fees (2020.. 11•/0) c) Teaching staff costs of £3,046.575 (2020= £2.870.353). 57Yo of wition fee5 (2020= 57Y¢J) The Surplus for the year decreased by £69.882 on 2020. The main fathors behind this were.. a) An increase in fees income of £266.269 primarily as a result of no fee reductions for the Covid pandemic being granted (2019.'25°h) b) A decrease in overall staff costs of £57.678 (1.4°h) and an increase in expenditure of £105.000 on pension contributions as a result of the moye from Teachers Pensions to the Aviva APTIS Scheme. c) An increase in expenditure of £150,192 on maintenance d) Funding of £24,540 received from the Coronavirus Job Retention Scheme (CJRS) and income of £IOO.000 from the Business Intemiption Insurdnce Scheme, included in incom< not nett￿ off against costs. Reserves Poll¢y Th¢ Tru5t'S UTife5tri¢ted funds stood at £8.4 million * ¢h¢ year-end. most of whi¢h is deployed to fund tangible fixed asseis totslin8 £5.5 million. At the year end, free reserves stood at £2.9 million. The need for day-tQ-day working capital is by earefvl management of short-terrn liquid resources. Free reserves are monilored teTmly by refer¢n¢e to ¢a5h flow projections io year-¢nd and for a further fiv¢ year5 wh¢n major capitsl projects are being ¢onsidered. This ha5 allowed the governors to plan the investm¢nt of substantial sums in the new Junior School building the development of th¢ existing buildings in recent years. The policy is therefore to continue to build reserves out of annual operating surpluse5. The S¢h¢y)l inlends to continue the slandard of edu¢ali(Trn#l services currently provided. Plans for future periods The governors, strategy is io invest in high quality facilities for education. They have been working on plans to ¢ombine the ihree se¢tions of the S¢hool on to the Carlton Road sit¢ for some time and pr¢s¢nted these to stoff. parents and th¢ publi¢ for ¢onsultation in October 2018. Following approval by th¢ lo￿] plaT)ning authority in January 2020, il was subsequently refvsed by the Greater London Auihority in July 2020. Th¢ plans are being revised and uptsted io 4ddress the points on which il wa$ refused. Achieving a high *andard of ￿demIC resulis is a constant aim whilst rnaintaining the breadth and depth of the edu¢ation provided. Future plans ar¢ financed primarily from fee inwm¢ and froTn r¢serves. The ggv¢rnors Tnaintain an equilable balance ensuring Current pupi15 benefit whi1s1, atth¢ sametime. ensuring a sound infrastructure and financial base arepreserved forthe next generation of pupils. just gs ¢urrent pupils b￿efit today from investmeni Tnth in the pasi. PrlDelpal rlsks and uneertainties The governor5 together with the Senior ManageTnent Tea￿ have 8sse55ed and ¢ategoris¢d the risks ihat the S¢hool is, or may brforne, exposed to ensure that the￿ are saii5fa¢tOry Sy51ems established ￿ mit1￿1¢ th09¢ risks. They believ¢ the principal risks facing the School are the difficultie5 in attracling key staff to a London school, the eff¢¢t of managing ¢omplian¢e and ihe current political climate. Appropriale risk mitigation rneasure5 #re taken in every case. Th¢ asse5sm¢nl of risks and potential risks are detailed in ihe Risk Man8gem¢ni Risk Ass¢5sment ¥Dd reviewed ternily by the Committees. Mr D G Henshall has the role of ov¢rs¢eing risk manag¢m¢Ttt and r¢portlDg on it to th¢ full board of governors. DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED GOVERNORS, REPORT (eolltlDued) YEAR ENDED 31 AUGUST 2021 Coronavir￿5 Pand¢rni¢. The most 5ignifbcant strategic risk during thi5 finarÈcial period ha5 been the impact on all aspects of the school's life #nd function of th¢ Coronaviws pandemic. For mu¢h of the Spring Terni the school delivered its syllabus and a wide range of supporting aetiviti¢s on-lin¢. The School ¢ontinu¢s to manage this risk through the ¢*refvl appli¢aiion of COVID-19 related Gov¢Tnm¢nl guLdan¢¢ for 5¢hool$, ¢ompr¢hensive risk asse$5menls, stri¢t hygiene. cleaning and so¢ial distan¢ing regimes. ar¢design¢d iimdable. pTrparntion of awell-te$t¢d virtually delivered syllabus wh¢reihis isrequir¢d, affordable f¢es. Stri¢t spending controls, and ¢arefvl and timely ¢ommuni¢otions with 011 stJk¢hold¢rs. STATEMENf OF GOVERNORS, RESPONSIBILrriES The governors (who are also directors of Dursion HoLse School Educaiional Trnst Ltmiied for the putwjses of company law) are responsible for preparing ihe Governors, Report and the financial sraiemenis in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generdlly Accepied Accounting Practice). Company law requires the governors to prepare fmancial ststemerÈts for each financial year which give a mie and fair view of the siaie of affairs of the charitable company and of the incoming resources and application of resources. including the income and expenditure. of the chariiable for that period. In preEMring ihese fuuncial sthtements. the governors are required to.. Select suiiable accounting policies and then apply them conSi￿entlY. Obs¢rv¢ the methods and prsnciples in the Chariiies SORP. Make judgcments and estirn8le5 that are reasonable and prudent; State whether applicable UK Accounting standards have been followed, subject to any material departure5 disclosed and explained in the financial statements- Prepare the financial sthtrments on the goingconcem basis unlth8 it is inappropriaie to presume thatthe charitable company will continue in business The governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of the financial position of ihe charitable company and enable ihem to ensure thai the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and (rther irTegularitie& So far as each of the governoT5 is awaTe ￿ the time the report is approved: There is no relevant audit infoTmation of which the companls auditors are unaware. and The governor5 have taken all steps that they oughtio have taken to make thern5elves awareofany relevant audit inforniation and to establish that the auditors are aware of thai inforrnation. Approved by ihe Board of Governor5 at its meeting on l DeWTr￿r 20214nd signed on its behalf by: David Henshall Co-chairnan Kevin Mahoney Cfrchaiman INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED Oplnlon We have audited the financial swements of Dursion House School Educational Trust Limiied for the year ended 31 August 2021 which comprise S￿ternent of Financial Activilie5, Balance SheeL Staiement of Cash Flow and note5 lo the financial statemen includinga summary of significant accounting policies. The financial reporting framewoTk that has been applied in their preparation is applicable law and United Kingdom Ac¢ounting St¥ndards. including Financial Reporting Standard 102 The Fina￿[￿1 ReporliKg Siondardappli¢able ihe UK andRepublic oflrelondlunited Ktngdom Generally Accepted Accountirtg Pra¢ti¢e). In our opinion, the finanei81 statements.. give a twe and fair view of the st#1¢ of the ¢haritable ¢omparty's affairs &% at 31 Augus¢ 2021 and of the ¢haritable ompany's net mov¢meDt in fi￿￿$, including the in¢ome and exp¢nditur¢. for th¢ year th¢n ¢nd¢d; have been properly prepared in accordance with United Kingdorn Generally A¢¢epted Accounling Pra¢ti¢e' and have been prepared in accordance with the requirements of the Companie5 Aci 2006. B*si$ for opinN)n We conducied our audii in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are fijnher described in ihe Auditor's reswTrnsibilitie5 for ihe audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requiTements that are relevant lo our audit of the financial siaternents in the UK. including the FRC'S Ethical Standard, and we have fvlfilled our other ¢thical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined 15 Sufficient and appropriat¢ to provide a basis for our opinion. Coneluslons relating to golng eoncer In auditing the financial staieTnents, we have concluded that the truslees. use of the going ¢on¢ern basis of a¢¢oun¢in8 in the prepaTation of the financial slatements is appropriate. Bas¢d on the work we have perfomed, w¢ haye not ideniified any mat¢rial uncertainties relating to events or conditions that. individually or ¢olle¢tively. may cast signific￿t doubl on the Charitys ability 10 Continue as a going ¢on¢em for a period of at least ¢welv¢ months from when the finart¢ial st41em¢rtts ar¢ outhorised for issu¢. Our responsibilities and the respon$ibiliiies of the ttitstres with respect to going concern are described in the relevant section5 of this r¢port. Other Informailon The trustees are responsible for (he other infomiaiion. The other infom)￿lOn comprises the infomiaiion included in ihe Governors, Rewrt. Our opinion on the financial siatemenis doe5 not cover the other inforniation and, except to the extent otherwise explicitly stated in our repotL we do not express any fonn of assurance conclusion theTeon. In connection with our audii of the financial staiements. our responsibility is to read the other inf0m￿tiOn and, in doing so, consider whether the other inforniaiion is materially inconsisteni with the financial statements or our knowledge obiained in the audil or otherwise appears to be materially missla￿d. If we identify such rnaTeria] irKonsi5tencie5 or apparent material misstat¢ment& we are required to deteTmine whether there is a material misstaiement in the financial 5tstemenls or a maierial mi5Statenent of the other inforniation. If, based on ihe work we have perforned. we conclude that there 15 a material misstatement of thi5 other infomation, we are required to Tew)n facL We have nothing to rew)rt in thi5 regard. Oplolons on other matters preseribed by the Companles Aet 2006 In our opinion, based on the Work undertaken in the course of the audit.. the inforniaiion given in the GovernoTS' Report (which includes the Str￿e8￿C report and the directors, report prepared for the putposes of company law) for the financial yvdr for which the financial Statements are prepared is consistent with the financial statements; and the strategic re￿rt and the direuors. report included within the GovernoTS' Report been prepared in accordance with applicable legal requirements. M4tters on whlch we are required to report by exception In the light olthe knowledge and understanding of the charitsble company and its envtronmeni obtsined in the course of the audit, we have not identified material miss(atements in the Governors. Repon (which incorporates the straregic report and the dir¢¢tors' rep)rt). We hav¢ nothing to report in respect of the following matters in relation to which the Companies Act 2006 require5 US to report to you if, in our opinion.. adequaie accounting records hve not bttn kept by the charitable company. or lh¢ ¢haritabl¢ ¢ompany finan¢ial statements ar¢ not in agreement with the accouniing re¢ords and rewrns; or certain di%losures of I￿Slee$, remuneration s￿CIfIed by law are not mad¢. or we have not received all the inforniarion and explanaiions we require for our audit. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DURSTON HOUSE SCHOOL EDUCATJOIYAL TRUST LIMITED Responslbillties of trnstees for the fin*nel*l statements As explained more fvlly in the Statement of Governor5, Responsibilities Sel out on page 7, the tru5tee5 (who are also the directors of the charitable company for the purpose5 of company law) are re5ponsibl¢ for the prepar4tion of the financial statements and for being satisfied that they giv¢ a true and fair vkew, and for such internal control a5 the trust¢es determine is n￿eSS2ry to ¢nable the pr¢paration of fmancial ￿ateMentS ar¢ fre¢ from material misstatern¢nL whether due to fraud or ¢Tror. In preparing the financial stsiements, the trustees are responsible for assessing the charitable comparty's ability io continue os a 80in8 ¢on¢¢rn, disclosing, as applicable, matters related to going concern and using the going eoncem basis of accounting unless the trustees either intend to liquidate the charitable company or io ce&8e operations. or have no realistic aliemaiive bui to do so. Audftor'j respon$lbllltle$ for the *udlt of tb¢ Iln4tt¢1#l s¢*t¢th¢ttt$ Our objectives are to obtain reasonable assurance about wheiher rhe financial siatemenrs as a whole are free from material missfaiement, whether due io fraud or error, and to issue an auditor's repon th￿ includes our opinion. Reasonable assufdnce is high level of assurance. bu¢ is not a guaranitt thai an audit conducted in accordance with ISAS {UK) will always delect a material misstaiemeni when it exists. Misstatements can arise from fraud or etTor and are considered material if, individually or in the aggregaie. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. IJTegulaTities, including fraud are instsnces of non-compliarKe with laws and regUl￿10n5. We design procedure5 in line with our responsibilities, outlined above, to deteci M￿erIal misstatements in respect of irregularities. including frau(L The extent to which our procedures are capab5e of detecting irre8ulariti¢s, including fraud is detailed below.. Based on our und¢TStanding of the charitable company and the environment in which it operdte5, we identified that the principal risks of non-compliance with laws and regulation5 related try complian￿ with the regulatory T¢quirernents (Trf th¢ Charity Commission and the Independent Schools Inspe¢ror4te, and we ￿)nsideredthe extentto which non-complimre tni8ht hav¢ a material effect on the financial ststements. We also considered those laws and r¢gulation5 that have a direct irnpact on the pr¢pJrJtion of the financial statements such as the Companies Act 2006. the Charitie5 Act 2011, and payoll tax¢5. W¢ evaluaied manageTnent'5 Opportunities for frdudulent nwiipuiation of the financial statements (including the risk of override of ontrols), and determined that th¢ principal risks w¢r¢ related to posting inappropriate journal entri¢s and management bias in making accounling estitnates and judgernents. Audit proc¢dures perfi)rn*d by the ettgagemertt team included.. Inspecting correspondence with regulators and tax authoritie5- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud. Evaluating management's controls designed to preveni and deieci irre8ulartties' Reviewing rninutes of GovernoT5' m¢etings during the year- Identifying and testing journals, in particular journal entries posted ai the year £70,001- £80,CK)O £80,001- £90,(M)o £140,001- £150,000 Defined benefits pension contributions for six employees whose emolument5 exceeded £60.000 were £89,298 {2020.. £97,393). Defined contribution pension contributions for one employee whose emolument exceeded £60.￿0 were £l1.965 (2020.. £11,964). TANGIBLE FIXED ASSETS Freehold 14nd and bulld1￿ Improvement lo freehold prem15¢S Furn5ture #nd equlpm¢nt Tot*1 Cost At 31 August 2020 Additions 5,357.197 4.084.ISXb 123.152 284.622 41.911 9.726,009 165.063 At 31 August 2021 5,357,197 4.207,342 326,533 9,891,072 Depreci•tion At 31 August 2020 Charge for the year 2.278,519 79.971 1,570.965 271.189 181,604 48,218 4.031,088 399,378 At 31 Augusi 2021 2.358,490 1,842.154 229,822 4.430,466 Net Book V4lue At 31 August 2021 2.998,707 2,365,188 96,711 5,460,6th5 A¢ 31 August 2020 3,078,678 2.513226 103,018 5.694,922 Included in freehold land ond buildings is land with a book value of £1.358,666 which is noi dep￿lated. INVESTMENT IN SUBSIDIARY The company has art investment in a subsidiary undertaking which comprises a holding of 100 ordinary thar¢s of £1 each, being the whole of the issued share capital of Durston House School Limited, a company registered in England. The subsidiary U￿lertakIng has been dornwit throughout the year and the preceding year and has no assets or liabilities. 17 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMEm (CDlltlDued) YEAR ENDED 31 AUGUST 2021 DEBTORS 2021 2020 Fee debtor$ Pupil disbursements Other debtors PrePa￿ents Accrued income 64,668 3,125 20,269 14,374 17.915 90,70S 28,609 31.532 80.989 120,351 231,835 CREDITORS 21121 2020 Amounts falllng dve wlthln otte year Acceptance fee5 Fees in advance Trade cr¢dit(Ys Other taxes and social security Other creditors and accrua15 36,000 656,826 10,100 85.931 269,000 51,6 620,243 33,595 86,474 220,959 1.057,857 1.012,871 Amounts f*llsng due after more thaD one year Acceptance fees 625.6(K) 632.100 ANALYSIS OF NET ASSETS BETWEEN FUNDS TotAI Funds 2021 Bursary Fund General Funds Fixed assets CuTrent assets Creditor5 a￿ within one year Creditor5 due after one year 5.460,606 4.586,719 (1.057,857) (625,600) 5.460,606 4.602,217 (1,057,857) (625,600) 15,498 Net a5S¢tS 15,498 8.363,868 .379.366 2021 BursAry Fund (eumlllatlve movtmettts) Transfers from Reserves Donations received Bursaries awarded 446.110 103,752 (534,364) 15.498 18 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL sfATEMENf6 (CoThtinued) YEAR ENDED 31 AUGUST 2021 ANALYSIS OF NET ASSETS BETWEEN FUNDS (eontlnued) Comparn¢ive inforn7atiDTr Total Fund$ 2020 Bur$4ry Fund G¢ntrnl Fullds Fixed assets Current assers Creditors due within one year Creditor5 du¢ after one y¢ar 5.694,922 5,694,922 4,248,665 4269,104 (1,012,871) 11,012,871) (632.100) {632,100) 20,439 Net a55ets 20,439 8298,616 ,319,055 2020 Bursary Fund (cvmulAtive movemenlj) Trdn5fer5 from R¢s¢rve5 Donations received Bursaries awarded 446,110 103,002 (528,673) 20,439 (o) Th¢ Bursary Fund represents accumulaied income and expendttiwe which has been designated for use in the funding of pupil bursaries. (b) Unrestricied funds represent accumulaied income from ihe Schcrt)I's activities and other sources that are available for the general purposes of the S¢hool. 10. LIABILITY OF THE MEMBERS Th¢ ¢ompany is limited by guarantee. The maximum liability of each member. in the event of the company winding up due io insutTiciertt funds, is £1. Th¢ eompany had twelve members as ￿ 31 August 2021 all of whom were directors. RELATED PARTY TRA14SAcfIoNS Mr S Hay. 50n of Mrs S Hay, a governor. 15 dirertor of a company ihat provided website 5UPPOrt s¢rvi¢¢s to lh¢ School. The company was paid £7,632 (2020- £4,JCN)) for their service5 during The year. No balance was oweil by the School as at 31 August 2021 (2020- £Nil). 19 DURSTON HOUSE SCHOOL EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMETh {ContiDued) YEAR ENDED31 AUGUST 21121 12. PENSION COMMITMENTS Teaching staff The School participated in the Teachers. Pension Scheme {'Yhe TPS-) for its leaching staff in 2021￿2]. The pension charge forihe year includes contributions payable to iheTPS of£421.111 (2020.. £433.332) and atthe year-end £Nil (2020.. £51,073) was accnjed in respecr of contribuiions to ihis scheme. The School withdrew from the Te￿h¢r$, Pension S¢heme with ¢ffe¢t from 31 Augusi 2021 and frIMn I September 2021 pensions for the teaching Siaff are provided through the Aviva APTIS Pension Scheme. The TPS is an unfunded multi-employer defined benefits pension 5cherne governed by The T¢achers' Pensions R¢gulations 2010 las amended) and The Teachers, Pension ￿herne Regulation$ 2014 (as amend¢d). Mernb¢r% contribute on a'pay as you go" basis with contributions from m¢mber5 and the employ¢r btillg ¢redited to th¢ Ex¢he4uer. Retirement other pension benefits are paid by public fund5 provided by Parliomeni. The employer contribution rale is set by ihe Secretary of Stai¢ following scherne valuation5 undertaken by the Government Acruary's Departrnent. The m05t recenl actuarial valuation of th¢ TPS Wds prepared as ai 31 March 2016 and the Valuation ReporL whi¢h was published IA Marth 2019, confmed that the employercontribution rate ftjr the TPS would increase from 16.4Vr* to 23.60kn frotn I Sept¢mber 2019. Employ¢rs are also required to pay a scheme administration levy of 0.080/0 giving a lotal ¢mploy¢r contribution rnte of 23.68QA. The 31 Ma￿h 2016 Valuation Report was prepared in accordance with the benefits set oui in the scheme regulalions and under the apprO￿h sp¢¢ifi¢d in the DtrKtion4 as they applied at 5 March 2019. However, the assumptions were considered and s¢t bythe Department for Education prior to the ruling in ihe'McCloudlSargeant case.. This case has required the court$ to consider cases regarding the implementsiion of the 2015 refom)s to Public Service Pension5 including ihe T¢achers' Pensions. on 27 Jurte 2019 the Supreme Court denied the government pern)ission to appeal the Court of Appeal's judgmeni that transitional provisions inrroduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The govemmeni is respecting the Court's decision and has said it will engage fully with the Employm¢fjt Tribunal as well as employer and member representsiives io agree how the discriminY4tions will be ￿MedI¢d. The gov¢rnm¢nt announeed on 4 February 2021 that it intends to prO￿d with a deferred choice underpin under which members will be abl¢ to ¢hoose either legacy or refom)ed scheme benefits in respect of their service during the period between l April 2015 ond 31 Mar¢h 2022 at the point ihey become payable. The TPS is subjea to a c051 cap mechanism which was in plac¢ io protect 18xp2yers against unfor¢se¢n 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 Mccloudlsargeant case and until there is cenainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020. and aconsuliation was launched on 24June on pr(>posed¢hanges to the ¢ost ¢ontrol mechanism following a review bythe Government Actu￿. The ¢on$ultation ¢10s￿ io r¢sponse on 19 Au8us(2021 and the Government is currently analy5ing the responses. In view of the above rulings and decisions the assumplions used in th¢ 31 Mar¢h 2016 Actuarial Valuation may become inappropriate. In thi5 scenario, a valuation prepared in accord8n¢¢ with T¢vis¢d benefits and suitably revised assumption5 would yield different results than those conlained in the ActUaTiai Valuation. Until the cost cap mechanism review 15 compleied il is not p)ssibl¢ to conclude on any financial impact or fuiure changes to the contribuiion rdte5 of ihe TPS. Accordingly no provision for any additional past benefit p¢nsion costs is included in these financial 51atements. Non-teaehing staff The school's contrib￿lOn5 to the pension xhem¢$ of non-ieaching staff in the year were £106,613 (2020: £140.337). 20