Charity Registration No. 295808 Company Rggl$trallon No. 02086298 (England and Wal0$1 HOE BRIDGE SCHOOL LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 HOE BRIDGE SCHOOL LIMITED LEGALAND ADMINISTRATIVE INFORMATION Trustees Mrs S E Arnold MsSEWBaber Mrs F J Boulton Mr I P Kalte Mrs S J Lacey Mr T G Smith Mr G Verily Mr P L Walton Mr R J Williams Secretary Mrs C E Beddow Charlty numbèr 295808 Company numbèr 02086298 R•gi$t•r•d offl¢• Hoe Place Old Woking Woking Surrey United Kingdom GU22 8JE Auditor A2ets Audit Services Ashcombe Court Woolsack Godalming Surrey United Kingdom GU7 1LQ Bankers National Westminister 8ank PIC POBox1 2nd floor G3 2 Cathedral Hill Guildford Surrey United Kingdom GU1 3ZR HOE BRIDGE SCHOOL LIMITED CONTENTS Pag8 Trustees, report Independent auditorfs report 9-11 statement of financial activities 12 Balan¢e sheet 13 Statement of cash flows 14 Note$ lo the financial statements 15-28 HOE BRIDGE SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTQRS. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The tiuslees present their report and financial statements for the year ended 31 August 2021. The *nancial statements have been prepared in accordance wlh the accounting policies set out in note I to the financial statements and comply with the S¢h¢ol's Igoverning documentl, the Ctsmpanies Act 2006 and 'Accounting and Reporting by Gharilies.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard appli¢able in the UK and Republic of Ireland {FRS 1021 leffective 1 January 20191" Objectives and activities The objects for which the School is established are to promote and provide for the advancement of education. In furtherance of the objects, the S¢hool'$ principal activity ¢onlinues lo be that of an independent Pre-Prep and Prep School catering for boys and girls from age three to thirteen. Public Benefit In planning the activities for the year, the Governors kept in mind the Charity Commission's guidance on public benefit and in particular ils supplementary guidance on advancing education and fee charging. The a¢livilies benefited both the adults and children of Woking and It5 surrounding 8rea and do not give rise to any detriment or harm to the public. The Governors believe that the bursary system is essential to ensure that children from families who would otherwise be unable lo afford the School's fees may still attend the School. The Govemors keep the School's Bursary policy under constant review to help en$ure the objective of wider access Continues lo be achieved. The bursary system is available to anyone ¥Nho meets the S¢hool'$ entry ￿qUIrementS and based on the parents, means or in cases of hardship, where a pupil's access to continued education at the School is al nsk. for example, in case of redundancy. The Governors in carrying out the means lesling have regard to many matters including bul not limilecl lo family income, investments, savings and personal arcumstances. During the academic year, 17 pupils were awarded means tested bursaries12019-20.' 241. Awards ol bursanes amtsunled lo £99,277 this year, a redu¢tion from £119,830 in 2019-20 when addrtional awards were made to assist families affect by Covid-19. Sibling discounts, whi¢h help families to send their ¢hildren to the Same school, were £72,248 thi5 year12019-20" £82,761). In addition, the School gave discounts to staff at a lee value of £118,12312019-20.' £141,608). Staff discounts are a way of providing assistance lo key workers. The amount made available for Tneans lesled bursaries together wlh all other awards represents 5.0°A of Gro$$ Fee Income12019-20.' 6.1 %). The School does not have any endowment and $0 in funding the bursary system the Governors have to ensure a proper balance beNveen fee paying parents. who are rectsgnised as making personal sacrifices in order lo educate their children al the Schtsol, and those who are awarded bursaries. HOE BRIDGE SCHOOL LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 A number of outreach activities were undertaken during the year in support of local charities and schools, at no cost to the participants.. Headmaster is an active member of a local stale schoL)I partnetship Donalions of books lo local state schools Free use of facilitie5 to local Cricket clubs Hire of dassrooms & facilities at subsidised rates to local language schools iTrusl donation IIAPSI The School has a policy of optimising the use of the School's sporting and other facilitiès via the local community. During the year the School made Ils buildings. grounds and other resources available either at fully subsidised rates or at rates below commercial levels for the public benefit of local children in the following organisalion5'. Pyrford Cricket Club Mandarin, Portuguese & Italian Language Schools Hoe Bridge pupils and the S¢ho(>l community regulady lake part in fundraising acbvitses for local and national charities. most ol which are children based causes. During the year, funds were raised for the following chaiilies-. Kent, Surrey & Sussex AirAmbulance Médecins Sans Frontieres Children In Need Woking Swmathon (Rotary Club of Wokingl The Royal British Legion This year. as in the past, the School chose lo support two charitie5 through an open vote by the children and staff - Kènt, SLtrrey & Sussox Air Ambulancè IKSSI The school decided to support this life saving service which work5 alongside the emergency services to transport patients to hospitals where needed. Last year alone, KSS were called out to help over 2.500 people In life-threalening conditions. They never Stop innovating and improving the care they give, which means every donation Ihey receive is vital. Their mission is to make sure they are available each and every time someone needs them. For 18 hours of the day. they operate with two Crews. For the remaining six, they operate with one crew. Their charity headquarters and forward operating base are located al Rochester Airport. with an aircraft hangar and maintenance operations al Redhill Aerodrome. When the call comes. aircraft can reach any part of the region within 25 minutes. KSS put the people who need them at the heart of everything they do. None of us ever know when we, our family, our friends or our community may need this vital service. AI KSS. there is a team of dispatchers who screen all 999 calls. It is their job lo signal lo crew5 that their help is needed. Highly skilled pilots then take over, flying the medical team safely to ihe scene via the most direct route. They are often challenged lo land in difficult location5 - irrespective of the lime of day or night - to ensure the medics get there as quickly as they can. Each mission is attended by a doctor typically a specialist in anaeslhesia or emergency medicine and a paramedic who is trained in critical care and accustomed to challenging environments. The combination of their specialist skills means patients can be treated wlh wodd class, urgent medical care directly al the scene. Patients may need to be placed into an induced coma to prevent further swelling from a brain injury. They may need a complex surgical procedure lo enable them l() brèathe. They may even need an emergency blood Iranslusion. All of these lif&saving treatments would be demanding in a hospital environment and yet, for the medical teams al KSS, they are Iiealmenls th31 must be administered in all weathers, sometimes at night and in fields, in woods or on remote pathways in order to save lives. After initial treatment. their medical teams de¢ide which hospital 15 in a position lo best support the patient's ongoing care needs, returning lo the skies and transferring them in the quickest time possible. HOE BRIDGE SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED FOR THE YEAR ENDED 31 AUGUST2021 Médecins Sans Frontioros.. In September 2020 the children and stsff had an opportunty to vote for a new intemab'onal charity. A number of charities were pul forward and Médecins Sans Fronlieres was the clear nner. Sometimes known in English as Doctors Wilhoul Borders. Médecin5 Sans Frontiere$ Is an international humanit8rian medical non-government organisation INGOI of French origin be51 known lor its projects in conflict zones and in countries affe¢leO by endemi¢ disease5. Main areas of work include diabetes. drug-resi51anl infections, HIVIAIDS, hepatitis C, tropical and neglected diseases. tubercu105is. vaccines and COVID. In 2019, the group was aGlive in 70 countries with over 35,000 personnel mostly local do¢lors, nurses and other medical professionals, logistical experts, water and sanitstion engineers and adrninistrators. Again the personal contact established with both charities is important to the vthole School community, hèlping lo raise funds. Unfortunately. lo adhere lo our Covid mitigation measures, we were only able lo host a scaled- back version of our annLJal Christmas Fair this year. Nevertheless. a SUTll of £1,600 was raised for our nominated charities which ¥MII be added lo our fundraising in 2021-22 and donated lo the above nominated charities at the end of the year. HOE BRIDGE SCHOOL LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGusf 2021 Achievements and performance The education across the School continues to be dynamic, inspirational and successful," wth the pupi15 developing their skills and thirst for knol￿edge from an eady age. As well as academic success, sporting, musical and artistic success is celebrated throughout and taken together help produ¢e 'Happiness, Confiden¢e and Achievement" in all pupils. The results below of pupils, progression to senior schools of their choice reflect all that we do at Hoe Bridge and are a team effort.. 2020121 Sonior School Senior School Year 6 Year 8 TOTAL St George's. Weybridge RGS Reeds 10 St George's. Weybridge RGS Reeds Halliford st Catherine's King Edward's, Witley Priorf$ Field Halliford King Edward's. Witley Charterhouse St John's Gordon'$ Hoe Valley Tormead Salesian st Paul'5 Epsom College Hampton Fren5harll Heights George Abbott Magdalen Surbiton High St Teresa's Sl George's. As¢ol 45 17 62 More details including a videc* and a photograph gallery can be $een on our website.. These results, together wlh the School's other educational. ￿CreatIOnal and operational activities, satisfy the Governors that it has achieved its aims for the year. HOE BRIDGE SCHOOL LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED} FOR THE YEAR ENDED 31 AUGUST 2021 Flnan¢lal r•vl¢w The financial and academic year 2020-21 was been a year of ￿COVery from the Covid-19 pandemic and our staff, parents and pupils have relished the return lo more normal aclivities and managed the short period ol lockdown in the Spring tem even more successfully on the back of the experience in the previous year. The results for the year and the financial position of the School are as shown in the annexed financial statements. The School monilors its financial performance against a series of Key Performance Indicators budget variances. ¢a5hflow ftsrecasls, pupil"teacher ratios. staff Gosl ratios, debtor leve15 and borrowing covenants. Most results achieved for the year were consistent with or better than the Key Perfomiance Indicator larget5.' Target 435 > 10.1 74.8°/0 Achievèmont 450 Pupil numbers laveragel Pupil Teacher ratio Staff Cost.'Net Fees ratio Bad Debts Borrowing ratio limit 74.7° £19,343 Income The financial statements show net incoming resourTrs for the year of £70,010. The principal source of income is school fees which accounted for 94.25°A of the School'5 gross income this year. The remainin9 income was derived from wrap-around care, extra-curricular activities. local authority sources for dedi¢aled classroom support to pupils Wth identified need5 and, to a lesser degree this year, national government grants in the form of Coronavirus Job Retention Support ICJRSI. CharrtablÈ Exp•nditur• Total charitable expenditure increased by 2.75% from £5,686,981 to £5,843,282 as a result of the wder resumption tsf Charitable activity made possible by the les5 reslriclive pandemic measures durin9 the year. Ouring the year. the School obtained an updated valuation of the freehold 18nd and buildings which resulted in an unrealised gain of £1,254.270 12020 £nill being re¢ognised in the Statement of Financial Activities and contributed lo the nel movement in fund5 for the year of £1,324.28012020- £130,108). Impact of Covid 19 on Financial Future This year, the School has built on its experience of dealing with the Covid pandemic and implementation ol sound mitigation measures has enabled the return lo most of our normal activities. A high level of parental confidence in their child's safety has been achieved, resulting in increases in attendance for wrap-around care particularly in Pre-Prep age groups. There has also been a reduction in financial assistance required by the School's families by way of reduced fees, deferred payments and bursari&s. All these factors have had positive impact on the financial outlook for the School, ending the year wlh over 450 puw'ls and providing a sound base for ¢onlinued improvement from 2021-22 onwards. Reserves policy Note 18 to the financial statements shows assets and liabilities attributable to the fund. Unrestricted funds amounted to £8,967.273 bul £11.606,319 is inve51ed In fixed as5els. The Governors have determined that the appropriate level of free resetves which are not invested In tangible fixed assèts should be equivalent lo elve weeks or one school term's expenditure lapprox. £1,948,000>. The free reserves do not meet the largel reserve5 policy as al the balance sheet date. However, the Governors are satisfied that the strength ol the School's balance sheet. realisti¢ financial and cashffow forecasts from good pupil number5 across all year groups, the ongoing popularity of our School and the availability of banking facilities provide them with $ufficient confidence for the S¢hotsl's finan¢ial future. HOE BRIDGE SCHOOL LIMITED TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 Rl$k rgvI8w The trustees have assessed the major risks lo which the School is exposed and are satisfied that systems are in pla￿ to miligale the adverse effects of gueh risks. The main risks lo the S¢hool a￿ pupil ￿¢rUItment and retention, ¢omplian¢e w(thin an ever-changing regulatory environment, maintaining a healthy financial status, recruiting and retaining high calibre teaching and support stsff and preseNing the excellent repulakn'on of the School. Our plans and strategies for managing risk include". an annual review of a Risk Register a programme of activities promoting the benefits of the School an established organisational structure wlh clear lines of reporting formal written policies that are reviewed and updated regularty annual staff updates of regulatory changes, especially for child safeguarding comprehensive strategic planning, budgeting and management accounting proactive steps lo address known and anliupated threats clear authorisatson and approval levels robust staff recruitment procedu￿$ being fully prepared for regulatory inspections delivering consistently excellent results for our pupi15 maintaining strong links wth parents. Plans for futurg peTiod$ achin To Continue to keep abreast of National Curriculum developments and changes lo Common Entrance examination Syllabuses. To further improve curricular links be￿een the Prep and the Pre-Prep Schools. To ¢ontinue lo provide a first class all round education for its pupils. To increase the use of ICT across the curriculum. Staff Develo ment To further develop optimum staffing levels, and lo continue lo plan. deliver. monitor and evaluate professional development for all teaching, non-teaching staff and Governors. Facilities To continue to develop and improve the fabric and facilities of the School. ICT To wnlinue investing in its rolling ￿placement and mobile lechnoltsgy programmes to equip classroom3 across Pre-Prep and Prep Schools with appropriate facilities to enhance their educational experience. Future Develo ment Plan Following the completion In September 2019 of all main elements of a strategi¢ Master Plan that was established 10 years ago. the School is accumulating Ihe resources necessary in preparation for a number of future major developments that are being considered. These are al an eady Stage of preparation and prioritisakn'on. Bursaries To continue to maintain and develop the bursary scheme lo provide assistance wlh fees in appropriate cases. HOE BRIDGE SCHOOL LIMITED TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST2021 structural gov8rnan¢a and mana9omont Hoe Bridge School Limited is a charitable company limited by guarantee and has no share caprtal. The School was established under a Memorandum and Arts"cles of Assorialion, which established the objectives and powers of the School and is governed under its Articles of Association. The School was fonmed on 30 December 1986 and became a registered charity. number 295808, on 32 January 1987. The governing body is a board of Govemors which musl consist of a minimum of three and not more than twenty one members. As Hoe Bridge School Limited is a company and a charity. the Govemors are also the directors and trustees thereof. The Iruslees, who are also the directors for the purpose of company law, and who served during the year and up to the dale of signature of the financial slalements were". Mrs S E Arnold MsSEWBaber Mrs F J Boullon Mr R W Ellis MrlPKatte Mrs S J Lacey MrT G Smith MrG Verity Mr P L Walton Mr R J Williams (Resigned 25 Novefnber 2021} Recruitmont and Training of Govgrnors All Governor5 are co-opted. The Board reviews 115 constituency on a regular basis, analysing the skills available to it and identifying any gaps there might be. The Board re¢ruits addib'onal Govemors, when required, from the parent body, friends of the School, business and professions so as to maintain the lull range of skills and expertisè requiréd to ènsure the ¢onlinuing good pra¢li¢e of the Board, and so to enhance the overall strategic management of the School. A list of potential Governors is maintained. Potential Govemors a￿ initially Interviewed by the Chair and the Headmaster and then Introduced lo the full Board. All new Governors are issued with the AGBIS "Guidelines for Governors" handbook. In addition lo briefings from the Independent Schoo15 Council. Independent Association of Preparatory Schools and the Independent Schools, Bursars Association, Governors may also attend seminars and workshops organised by professional bodies on topics of interest including the Impact of new legislation and regulation on educational charity'es. The trustees have considered the guidance isstjed by the Chanty Commission in respect of the Governance Code and confirm that the trustees are aware of the seven principles set out wthin. The trustees continue lo strive for best practice and a￿ ensuring the Code is adhered lo in the policies and proced4Jres implemented by the School. The Governors as trustees of the School are legally responsible fr)r the overall management and control of the School and meet formally three limes a year. The Governors are a150 represented on functional sub- committees for Finance & 8ursary,' Education & Welfare". and Facilities & IT to enable effective and diligent govemance. These sub-cornmittees meet once per term and report into the full goveming body al ils subsequent meeting. Actrng in a¢¢ordan¢e wi(h the wshes of the Board, the Headmaster has strategic responsibility for the direction of the School as a whole, working wth the Head of the Pre Preparatory School. assisted by the Senior Management Team and the Bursar. The Headmaster. the Head of the Pre Preparatory School, the Bursar and the Clerk lo the Governors attend all formal meetings. The School has no official arrangement wth other parties or charities nor has it entered into any transactions in which the Governors had an interest, other than disclo$ed wthin th• financial $tatemenl$. HOE BRIDGE SCHOOL LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 statement of trustees. responsibilities The Iruslees, yvho are also the directors of Hoe Bridge School Limited for the purposes of company law, are responsible for preparing the Trustees, Report (which Includes the Strategic Report) and the financial statements In accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company Law requires the trustees to prepare financial 51alemenls for each financial year which give a true and fair view of the state of affairs of the School and of the incoming restsurces and application of resources, induding the income and expenditure, of the charitable company for that year. In preparing these financial stalemenls, the trustees are required to.. select suitable accounting policies and then apply them consistentty., observe the methods and principles in the Char￿.e$ SORP., make judgements and estimates that are reasonable and prudent.. state whether applicable UK Accounting Standards have been followed. subject lo any material departures disclosed and explained in the financial statements., and prepare the financial slalements on the going concern basis unless it is inappropriate tts presume that the School will continue in Ope￿Il0n. The tru$lees are responsible for keeping adequate accounting records that disc105e with reasonable accuracy at any lime the financial posrtion of the School and enable them to ensure that the financial slalemenls comply with the Companies Act 2006. They are a150 responsible for safeguarding the assets of the School and hence for taking reasonable steps for the prevention and detection of fraud and other ir￿gUIantie$. The trustees are responsible for the maintenance and integrity of the charity and financial infomab.on included on the School's website. Legislation in the United Kingdom governing the preparation and disseminath.on of financial statements may differ from legislation in otherjLErisdictions. Auditor In accordance wth the company's arb'cles. a resolution proposing that Azets Audit SeNi¢es be r¢appoinled as auditor of the company will be put al a General Meeting. Disclosurg of information to auditor Each of the trustees has confirmed that there is no information of which they are aware which is relevant lo the audit, but of which the auditor is unaware. They have further confimied that they have taken appropriate steps to identify such relevant infomiation and to establish that the auditor is aware of $u¢h information. The truste s, report was approved by the Board of Trustees. att Trustee ## **HOE BRIDGE SCHOOL LIMITED** ## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HOE BRIDGE SCHOOL LIMITED** ## **Opinion** We have audited the financial statements of Hoe Bridge School Limited (the ‘School’) for the year ended 31 August 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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: - give a true and fair view of the state of the charitable company's affairs as at 31 August 2021 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the School in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the School’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of our audit: - the information given in the trustees' r eport, which includes the d irectors ' r eport prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the d irectors ' r eport included within the trustees' r eport has been prepared in accordance with applicable legal requirements. - 9 - ## **HOE BRIDGE SCHOOL LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HOE BRIDGE SCHOOL LIMITED** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the School and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the trustees' r eport. 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or ## **Responsibilities of trustees** As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the School for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the School’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 is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 10 - ## **HOE BRIDGE SCHOOL LIMITED** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HOE BRIDGE SCHOOL LIMITED** ## **Extent to which the audit was considered capable of detecting irregularities, including fraud** Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud. We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: - Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; - Reviewing minutes of meetings of those charged with governance; - Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; - Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. **Robert Southey (Senior Statutory Auditor) for and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor** 3 May 2022 Ashcombe Court Woolsack Way Godalming Surrey United Kingdom GU7 1LQ - 11 - HOE BRIDGE SCHOOL LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021 Unre$tricted Unrestrict&d funds funds 2021 2020 Note$ Grants Income from charitable activities Other income 64,558 248.977 5,572,616 5.334,437 276,118 235.675 Total incom• 5,913.292 5,817,089 ndl Analysls of gxp&ndltur• on charitable activities 5.843.282 5,686,981 Net incoming resources 70,010 130.108 other reco9nised gains and loss•s Revaluats'on of tsngible fixed assets 10 1,254.270 Ngt movomont In funds 1.324.280 130,108 Fund balances * 1 September 2020 7,642,993 7,512,885 Fund balances at 31 August 2021 8,967,273 7.642.993 The slalemenl of financial activities includes all gains and losses re¢ogni5ed in the year. All income and expenditure derive from continuing aclivilies. The statement of financial a¢b'vilies also complies with the requirements for an income and expenditure account under the Companies Act 2006. 12- HOE BRIDGE SCHOOL LIMITED BALANCE SHEET AS AT31 AUGUST2021 2021 2020 Notes Fixed assets Tangible assets 11 11,606,319 10,317,860 Curront assets Debtors Cash at bank and in hand 12 1.390,466 961 1,419,495 1,278 1,391.427 1,420,773 Creditors: amounts falling due within ono yaar 13 12,639.447) 12,625,127) Nel Current liabilities 11,248,020) 11.204.354) Totsl a$$et$ 1¢$$ ¢urr•nt liabilities 10,358,299 9,113.506 Creditors: amounts falling due after morè than on• ygar 14 11,391.0261 11.470.513) N¢t assots 8,967,273 7,642,993 Income funds Unrestricted funds- 9eneral 8,967,273 7.642,993 8,967.273 7,642,993 The finan¢ial $tatements were approved by the Trustees on ......................... 10 atte Tru Company Règistration No. 02086298 13. HOE BRIDGE SCHOOL LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST2021 2021 2020 Notès Cash flows from operating activitie5 Cash generated froryvlabsorbed byl operations 22 344,305 {399,5161 Invostlng activitlès Purchase of tsngible fixed assets Proceeds on disposal of tangible fixed assets 1285,203) (381,8821 2,051 Nét cash u$•d in invg$ting a¢tlvltl•$ 1283.1521 1381,8821 Financlng a¢tlvities Proceeds of new bank loans Repayment of bank loan5 1,050,000 {79,4871 Net cash lused in}Igenerated from finan¢ing a¢tiviti&$ 179,4871 1,050,000 Net Ide¢reasellincTeasa in cash and cash equivalants 118,3341 268,602 Cash and cash equivalents al beginning of year 1159,1391 1427,7411 Cash and Cash equivalonts at end of year 1177,4731 1159.139) Relating to: Cash al bank and in hand Bank overdrafts included creditors payable wrthin one year 961 1.278 1178,4341 1160,4171 14- HOE BRIDGE SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2021 Accountlng poll¢Ses The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years piesented unless olhenM5e stated. Charity inforniation Hoe Bridge School Limited is a charitsble COTnpany limited by guarantee incorporated in England wlh company registration number 02086298 and charity number 295808.The registered office is Hoe Place. Old Woking, Woking, Surrey, GU22 8JE, United Kingdom. 1.1 Accounting convention The financial statements have been prepared in accordance with the School's Arts'cles of Association. the Companies Act 2006 and A¢¢ounling and Reporting by Charilie5". Slalemenl of Recommended Praciice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (effective 1 January 20191. The School is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterting, which is the functional currency of the School. Monetary amounts in these financial statements are rounded 1¢ the nearest £. 1.2 Going ¢on¢ern After reviewing the School's forecasts and projections, the trustees have a reasonable expectation that the Schoos has adequate resources lo continue in operation for the foreseeable fLrture. The School therefore continues lo adopt the going concern basis in preparing ils financial stslements. However, not all future events or conditions can be predicted and the trustees address specifically any risks to the S¢hool's finanual future in the Financial Review section of their annual report. 1.3 charitable fund$ Unrestricted funds a￿ available for use al the discretion of the Iruslees in furtherance of their charitable objectives. 1.4 In¢omè Fees iecèivable are accounted for in the peritsd in which the 5ervi¢e is provided. Fees receivable are stated after deducting allowances for scholarships and other remissions by the School from its unrestri¢ted funds. Grants are included in the Slalemenl of Financial Activities on a receivables basis. The balan¢e ol in¢ome received for specific purposes bLJt not expended dunng the period is shown In the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt ils recognition Is deferred and included in ¢reditor$ as deferred income. Vvhere enlilletnenl occurs before income is received, the income is accrued. Government Grants Coronavirus Job Retention Scheme grants are included in the Statement of Financial Activities on a receivable basis. The income received and related expenditure are included as unrestricted fund5. 15- HOE BRIDGE SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Accounting policigs IContinued} 1.5 EX￿ndIt￿rn l expenditure 1$ accounted ftsr on an accruals basis. All expenditure 15 classified under activity headings that aggregate all costs related to the category. Charitable costs include the ¢osl of running the School. leaching staff costs and other educational costs necessary lo further the purposes of the School.. Governance costs represent the ¢tssls of the management of the School and of complying with conslitulional and statutory requirements. The irrecoverable VAT is charged against the category of resour¢es expended for which il wa5 incurred. All expenditure is recognised once there is legal or constructive obligation lo make a payment to a third party. 1.6 Tangible fixed assets Tangible fixed as5els are initialty measured al cost and subsequently measured at cost or valuation. net of depreciation and any impairment losses. Depreciation is recognised so as to write off the ¢osl or valuatson of assets le55 their re51dual values over their useful live5 on the following ba5es'. Freehold buildings IT equipment Fixtures, fittings & equipment Sports equipment Other assets Over SO years 25% strai9ht line 20% reducing balance 10% reducing balance 15% reducing balance Freehold land and assels in the course of construction are not depreciated. The gain or loss arising on the disposal of an asset is determined as tre diffe￿nCe be￿een the sale proceeds and the ¢arrying value of the asset, and is recognised In net incomellexpenditurel for the year. 1.7 Cash and ¢a$h equivalents Cash and cash equivalents include cash in hand, deposits held al call with banks, other short-temi liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.8 Financlal Instrumènts Financial instruments are recognised in the School's balance sheet when the School becomes paty tg the contractual provision5 of the instrument. Basic financAal instruments are initially recognised at the transaction price. unless the arrangement onslilules a financing Iransaclion, where It 15 recognisec* al the present value of the future payments discounted at a market rate of interest for similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised are reviewed for objective evidence of impairment al the end of each rep¢rting dale. If there is objective evidence ot impairment, an impairment lo$s Is recognised in profil or loss immediately. 16- HOE BRIDGE SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 A¢¢ounllng polScl•$ {Continuedl 1.9 Ernployee benefits Teaching staff employed by the School are eligible for membership of the Teachers Pension Scheme, which is a national. statutory contributory, unlunded defined benefit s¢heme administered by the Teachers Pension Agency, an executive agency of the Department of Education and Employment. Pension G051s are assessed in accordance wlh the advice of the G¢vernmenl Actuary. The Sch()ol ha$ arranged a defined benefit conlnbulion pension scheme for those members who are not eligible to join the Teachers Pension Scheme. The assets of this scheme are held separately from those of the charity. Pension costs charged in the Statemenl of Financial Activities represent the contributions payable by the School in the year. Critlcal accounting ostlmatg$ and ludg&morts The preparation of the finan¢ial slalemenls requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other faclors, including expectations of future events that are believed lo be reasonable under the circumstances. Accounting estimates and assumptiong are made concerning the futu￿ and. by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of ¢ausing a material adjuslmenl lo the carrying amounts of assets and liabilities wlhin the next financial year are as follows.. Critical judgements lil U$•ful •¢onoml¢ liv¢$ of tangible fixed a5$ets The 8nnual depre¢ialic>n charge Is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assèsserl annually. They are amended where necessary lo reflect current estimates based on technological advancement, lulure investments, economic Ljtilisation. and the physical condition of assets. See Note 8 for the carying amounts of tangible fixed assets. lill Impaimient of assets Nonr to sell them lo another entity. 12 Debtors 2021 2020 Amounts falling dua ￿thIn ona ygar: Trade debtors Other debtors Pfepaymenls and accrued income 1,313,599 347 76.520 1,301.203 62.116 56,176 1,390,466 1,419,495 13 Creditors.. amounts falling dua wlthln one year 2021 2020 Notes Bank loans and overdiafts Other tsxalion and social securty Deferred income Trade ¢redilor5 Other creditors Accruals and deferred income 15 257,921 83,555 1,795,840 83.553 382.028 36.550 239,904 76,154 1,743.739 187,531 354.975 22,824 16 2,639,447 2.625.127 Included wlhin other creditors are fee deposits totalling £289,25012020- £287.0001- -23- HOE BRIDGE SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2021 14 Credltors: amounts falllng due after moro than on• year 2021 2020 Notes Bank loans 15 1,391,Q26 1.470.513 1S Loans and overdrafts 2021 2020 Bank overdraft5 Bank loans 178,434 1,470,513 160.417 f,550.000 1,848.947 1,710,417 Payable wthin one year Payable after one year 257.921 1,391,026 239,904 1,470,513 Amounts included above which fall due after five years Payable by instalments Payable tslher than by in$lalrnenls 39.744 1,033,333 119,231 1,033.333 1,073,077 1.152.564 The lon*lerm loans are secu¥ed by fixed char9es as follows.. On the 14 October 2014 National Westrninster Bank PLC created a debenture over all assets of Htse Bridge School Limited. this security is not limited. On the 26 July 2D16 National Weslmin5teT Bank PLC created a legal charge over Hoe Place, 224 Old Woking Road, GU22 8JE, this security is not limited. 16 Deferred incom• 2021 2020 Arising from fees received in advance 1.795.840 1,743,739 -24- HOE BRIDGE SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 17 Retirement benefit schemes Defined contribution sch&m•$ The School participates in the Teachers, Pension Scheme { the TPS I for ils leaching staff. The pension charge for the year includes contribubons payable to the TPS of £531,10912020 - £546,030). The Teachers, Pension Scheme ITPSI is a stslutory. conlribulory, defined benefit scheme, govemed by the Teachers, Pension Scheme Regulations 2014. All teachers have the option to opt out of the TPS following enrolment. The TPS is an unftjnded scheme lo which both the member and employer makes contributions. as a percentage of salary. These contributsons are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Padiament. Valuation of th• T•a¢heTS' Pension Scheme The Government Actuary. using normal a¢tuarial principle5, conducts a fomal actuarial review of the TPS in accordance wth the Public Service Pensions (Valuations and Employer Cost Capl Directions 2014 published by HM Treasury every 4 years. The aim of the review is lo specify the level of futu conlribulions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The lalesl actuarial valuation of the TPS was carried out as al 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consuttab.on are". ernployer cf)nlribulion rates set at 23.68% of pensionable pay (including a 0.08% employer administration charge) lolal scheme liabilities Ipensions currently in payment and the estimated cost of future benefits) for service to the effective dale of £218,100 million, and notional a55els leslimated fulure contributions together wth the notional investments held at the valuation datel of £196,100 fnillion giving a notional past $ervi¢e deficit of £22,000 million the SCAPE rate, set by HMT, is used to delemiine the notional investment return. The current SCAPE rate 1$ 2.40h above the rate ol CPI. The assumed real rale of return is 2.40A in excess of prices and 2°A in excess of earnings. The rale of real earnings growth is assLsmed to be 2.2V.. The assumed nofflinal rale of return including earnings growth is 4.45°A. The next valuation result Is dLse lo be implemented from 1 April 2023. A copy of the valuation report and supporting documentation is on the Tea¢hers' Pensions website. Under the definitions set OLrt in FRS 102, the TPS is an unftjnded multi-employer pension scheme. The Company has accounted for rt5 contributions lo the scheme as if il were a defined contributloll 5cherne. The Cornpany has set out above the information available on the scheme. On 31 August 2021, the School wrthdrew from the Teachers, Pension Scheme, replacing it wth the Aviva Pension Trust for Independent Schools IAPTISI scheme. The School a150 administers a defined contribution scheme for support staff. The cost for the year of the School's ¢onlributions was £45.02912020- £42,506). Pension contributs"on$ of £71.00012020- £73.1391 were outstanding al the year end. 25- HOE BRIDGE SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGusf2021 18 Analysis ol net assets betsveen fvnds Unr•$tri¢t¥d Unreslricled funds funds 2021 2020 Fund balances al 31 August 2021 are represented by.. Tangible assets Current asselsllliabilitiesl Long term liabilities 11,606,319 10,317.860 11,248.0201 11,204.3541 11,391,028) 11,470.5131 8.967.273 7.642.993 19 Op•rating l&as• commitm•nts At the reporting end date the School had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows.. 2021 2020 Wlhin one year Be￿een fvjo and five years In over five years 42.913 157.618 31.335 42,412 168,951 61,861 231.866 271,224 Lease payment5 recognised as an expense during the year totalled £45,96612020- £56,3311- 20 Capitsl ¢ommitments 2021 2020 Contracted for bul not provided in the financial stalemenls.. Acquisition of propety, plant and equipment 82,000 82.000 21 Relal•d party transactions Remuneration of key management personnel The remuneralioll of key managernent personnel is as follows. 2021 2020 Aggregate compensation 711,737 730,818 -26- HOE BRIDGE SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 21 Rèlat•d party tran$a¢tion$ Icontlnuedl Transactions with relatèd partios During the year the School entered into the followng transactions with related parties.. School f¢¥$ Provision of prof•ssional sèrvl¢es 2027 2021 2020 2020 Mrs S Lacey Mr P Walton Mrs SAmold Other related parbes 15.581 15,391 15,907 15,859 15,552 6,934 9,710 31,411 46.879 6.934 9,710 Included in trade debtors al year end 15 a lolal amount of £5,97312020- £10,290) due from the Iruslees in respect of the transactions noted above. The Iruslee Mr P Walton 1$ a partner of Penninglons Manches LLP, transactions with whom are diseltssed under other related parties. Included in trade creditors at year end is an amount of £nil12020- £6,674) due lo Penningtons Manches LLP. 22 Cash generated from operations 2021 2020 Surplus for Ihe year 70,010 130.108 Adjustments for Depre¢ialion and impairment of tangible ffixed a55els 248,964 239.376 Movements In working capital.. Decrease in debtors IDecrease) in creditors Increasel{decreasel in deferred income 29.028 155,798) 52,101 85.504 {794.9491 {59,5551 Cash genarat&d fromllabsorbgd by} opèration$ 344,305 1399,5161 -27- HOE BRIDGE SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2021 23 Analysls ol ¢hang&s In net {debtllfunds At I Sopiomber 2020 Cash flo At 31 August 2021 Cash al bank and in hand Bank overdrafts 1,278 1160,4171 13171 {18.0171 961 1178,4341 1159,1391 118,334} 1177,4731 Loans falling due within one year Loans falling due after more than one year 179,4871 11,470.5131 179.4871 11.391,0281 79,487 11,709,139) 61,153 11,647,986) 24 Company limited by guaranto0 The members of the School guarantee lo ¢onlnbute an amount not exceeding £1 to assets of School in the event of a winding up. -28-