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2021-08-31-accounts

REGISTERED COMPANY NUMBER: 02138295 (England and Wales) REGISTERED CHARITY NUMBER: 297106

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

FOR

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 August 2021

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 7
Statement of Financial Activities 8
Balance Sheet 9
Cash Flow Statement 10
Notes to the Cash Flow Statement 11
Notes to the Financial Statements 12 to 20
Detailed Statement of Financial Activities 21 to 22

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 August 2021

The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2021. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Object

The object of the company in accordance with its Memorandum and Articles of Association is the education of boys and girls.

Strategic Aim

The School's strategic aim is to provide a broad and balanced education which enables the children to develop and extend areas of strengths and interest. Extra curricular activities are offered to draw out abilities and academic potential and to develop wider interests in life, thus preparing the children for a successful transition to their chosen senior school.

Objectives for the Year

The Board's main objective continued to be to educate all the School's pupils to at least the same high standard achieved by the School in previous years, so that they will be able to fully benefit from their chosen senior school. Our strategy for achieving this is to maintain a high teacher-to-pupil ratio, tailoring our services as appropriate in each case to suit individual needs.

ACHIEVEMENT AND PERFORMANCE

Achievements & Performance

Over the course of the year we have continued to make improvements to areas around the school.

We were delighted to open our beautiful new oak framed building called Mulberry Lodge in September 2020. This stunning light and bright space provides a wonderful learning environment for our Reception Class children. Later during the year further improvements were made to extend the outdoor play provision beyond the all weather grass surface to ensure a well equipped and spacious play area. Further landscaping works were also carried out to the front of Chestnut House and conversion of the original tack room provided a new office space. A new video entry pedestrian gate system from the main car park has further enhanced security for the school.

In addition to these works there continues to be a rolling plan of maintenance carried out throughout the school. A variety of inspections including PAT testing electrical items, fire safety, Legionella testing etc. is carried out to ensure high standards of health & safety and compliance with regulatory requirements. Due to the on-going situation with Covid-19 the School has also been regularly 'fogged' and risk assessments updated to acknowledge the constantly changing situation.

Although sadly it was not possible for the Year 6 residential to take place, an alternative on-site glamping experience, complete with mini festival and Oscars ceremony was a great success. Speech Day was scaled down for Year 6 families only but available for the whole school to attend via Zoom.

In February places were offered at 11 different schools with children gaining a high level of success in entrance examinations at leading independent and state schools, including academic scholarships at Haileybury and Bishop's Stortford College. Places were also offered at Hockerill, Herts and Essex High School, Gosfield, The Leys and Sancton Wood. This achievement has been greatly helped by the high quality teaching staff which we have been able to both attract and retain.

Children often achieve a high level of success competing in a wide range of sports including Tag rugby, swimming, Triathlon and ski competitions. However continuing Covid-19 restrictions sadly resulted in many of these activities being curtailed during the academic year.

The creative arts are both popular and well represented at Howe Green House. A Nativity entitled 'Baubles' involving all the children from Reception to Year 2 took place behind closed doors and was professionally filmed. By the Summer term we were able to host a small outdoor production of Shakespeare's 'A Midsummer Night's Dream' involving the Year 6 children which was thoroughly enjoyed by the Year 6 parents. Once again we were unable to hold Speech Day in the traditional way but a special Awards Ceremony for our Year 6 leavers was held and attended by their parents.

Despite the pandemic the school has continued to invest in improving the facilities, creating opportunities, helping the children to realise their potential and live life to the full.

Page 1

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 August 2021

FINANCIAL REVIEW

Financial position

The balance sheet shows total funds of £1,949,195.

Also included in total funds is an amount of £79,909 which is restricted. These monies have either been raised for, and their use restricted to specific purposes, or they comprise donations subject to donor imposed conditions. Full details of these restricted funds can be found in notes to the accounts together with an analysis of movements in the year.

Funds totalling £129,395 have been designated, or set aside, by the Governors for specific purposes. These purposes and an analysis of the movements on the funds are set out in the notes to the accounts.

Unrestricted funds of the charity at 31 August 2021 total £1,739,891.

These funds are represented by tangible fixed assets with a net book value of £2,876,764, which leaves the net current assets of the General fund in deficit by £1,807 with long term liabilities of £929,376.

Investment Policy

The Governors may act as Trustees of any property, endowment legacy, bequest or gift given, held or acquired for educational purposes. The Governors may invest the monies of the Company not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, but so that monies representing property subject to the justification of the Charity Commissioners of England and Wales shall only be invested in such securities and with sanction as may for the time being be prescribed by law.

The Charity’s Assets

Acquisitions and disposals of fixed assets during the year are recorded in the notes to the accounts.

Company law requires the Governors to prepare accounts for each financial year which give a true and fair view of the company's financial activities during the year and of its financial position at the end of the year. In preparing accounts giving a true and fair view, the governors' should follow best practice and:

The Governors are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ensure that the accounts comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the sub-committees list objectives for the year against which they report on the achievements and performance of those objectives.

Reserves policy

The Board has examined the requirement for free reserves i.e. those funds not invested in tangible fixed assets, designated for specific purposes, restricted nor otherwise committed. The Board considers that the level of free reserves should be increased as circumstances permit so as to provide the flexibility needed to cover temporary shortfalls in incoming resources due to the timing differences in income flows; and adequate working capital to cover core costs to allow the School to cope and respond to unforeseen emergencies, whilst specific action plans are implemented. Building of such reserves can only realistically be viewed over the medium term and the Board is satisfied that the school remains in a financially sound position and that the present level of free reserves is satisfactory.

Page 2

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 August 2021

FINANCIAL REVIEW

Finance & Premises Committee

Education Committee

Marketing Committee

FUTURE PLANS

Our key objective for the future remains the same as reported above for this year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The Company is governed by its Memorandum and Articles of Association, which were amended in 1996, December 2006 and February 2009.

Governing Body

The Trustees, who are also required under the Articles to serve as Directors of the company, are elected at the AGM on the basis of nominations received from members of the company who are parents of the School.

The Directors try to ensure that at all times there are four parent Governors. Directors also nominate people to serve on the Board from outside the School who have the necessary skills required to contribute fully to the charity's development. The Board consists of not less than three nor more than eleven people. Each Director is elected for a term of between 1 - 3 years and shall not exceed nine years in office.

Organisational Management

The Governors of the School act in the capacity of Company's Directors for the purposes of the Companies Act and in the capacity of Trustees in respect of its charitable objectives under the Charities Act.

The Governors meet as a Board on a termly basis, or more frequently when required, to review and direct the general educational charitable objectives of the Company. Sub-committees consisting of Governors, Head, and other members of the Senior Management Team, meet once or twice per term and cover Finance & Premises, Education and Marketing. The day to day running of the School is delegated to the Head, who is supported by the Bursar and other teaching members of the Senior Management Team.

Trustee Induction and Training

New Directors are provided with an induction pack giving full details of the workings of the School. Trustee training workshops are offered throughout the year with the focus on responsibilities and key issues for school governors, risk management, SORP and the role of the Charity Commission in school regulation.

Key management remuneration

The trustees carry out and annual pay review to ensure that the charity's pay levels are fair, competitive and an effective use of charitable funds.

COVID-19

These accounts have been prepared on the basis of a Going Concern. In light of COVID-19 the Trustees have taken reasonable measures to mitigate the risks to the School including the furloughing of a significant number of staff.

Page 3

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 August 2021

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

02138295 (England and Wales)

Registered Charity number 297106

Registered office

Howe Green House Great Hallingbury Bishops Stortford Hertfordshire CM22 7UF

Trustees

Ms N A Barker-King (resigned 24.2.22) Mrs A J Cutlan-Smyth Chair Mrs E G Lester Chair to 05.08.20 (resigned 5.5.21) Mrs A B White C I McDonald M Dawes C Dunne W Wells Mrs S F Bristow Mrs P S Moore Mrs G C W Rogers Mrs M E Sanders

Company Secretary

Miss S M Parlane

Auditors

Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH

Bankers

HSBC Bank plc 18 North Street Bishop's Stortford Hertfordshire CM23 2LP

The Howe Green Educational Trust Limited, trading as Howe Green House School and Little Oaks Nursery, is a Company limited by guarantee (No. 2138295) having been incorporated under the Companies Act on 8th June 1987.

The Company does not have a share capital, but its members, in the event of winding up, have guaranteed to contribute to the assets of the Company a sum not exceeding £1 per member. Any surplus on a winding up, after the provision of any pension or allowances to retired employees, shall be given or transferred to another charitable institution with objects similar to that of the Company. The Howe Green Educational Trust Limited is a registered charity (No. 297106) with the Charity Commission for England and Wales.

Page 4

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 August 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the 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 other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Brindley Millen Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. Brindley Millen Limited acquired Hewitt Warin Limited, the previous auditor who had been approved for re-appointment at the AGM.

Apr 26, 2022 Approved by order of the board of trustees on ............................................. and signed on its behalf by:

..............................................................................AJ Cutlan-Smyth (Apr 26, 2022 14:50 GMT+1)

Mrs A J Cutlan-Smyth - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE HOWE GREEN EDUCATIONAL TRUST LIMITED

Opinion

We have audited the financial statements of The Howe Green Educational Trust Limited (the 'charitable company') for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE HOWE GREEN EDUCATIONAL TRUST LIMITED

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are those covered by the Statement of Recommended Practice for Charities (SORP 2019) and the Charities Act 2011. We assessed the risk of material misstatement in respect of fraud by making enquiries of management and trustees and by testing the implementation of accounting controls in place.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above by making enquiries with key personnel and reviewing relevant documentation such as minutes of Trustee meetings and correspondence with regulatory bodies. We considered the risk of fraud through management override by incorporation testing of journal entries and reviewing any requirements to meet performance targets. We also considered, and tested for, the possibility of unauthorised payments to related parties.

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

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.

mwbrindley

mwbrindley (Apr 27, 2022 13:19 GMT+1)

Maurice Brindley FCA BSc (Senior Statutory Auditor) for and on behalf of Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH Date: ............................................. Apr 27, 2022

Page 7

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 August 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Fees receivable
Investment income
3
Total
EXPENDITURE ON
Charitable activities
5
Tutorial costs
Property
Welfare
Management and administration
Finance costs
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
13,072
1,814,136
12
1,827,220
1,166,279
254,592
23,609
240,641
19,692
1,704,813
122,407
1,746,879
1,869,286		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
79,909
79,909		 31.8.21
Total
funds
£
13,072
1,814,136
12
1,827,220
1,166,279
254,592
23,609
240,641
19,692
1,704,813
122,407
1,826,788
1,949,195		 31.8.20
Total
funds
£
39,868
1,796,148
546
1,836,562
1,183,828
200,802
56,657
231,960
20,763
1,694,010
142,552
1,684,236
1,826,788

The notes form part of these financial statements

Page 8

THE HOWE GREEN EDUCATIONAL TRUST LIMITED (REGISTERED NUMBER: 02138295)

BALANCE SHEET

31 August 2021

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
14
NET ASSETS
FUNDS
17
Unrestricted funds:
General fund
Bursaries Fund
Repairs and maintenance fund
Development reserve
Restricted funds:
Restricted capital fund
TOTAL FUNDS		 Unrestricted
funds
£
2,796,855
14,025
414,717
428,742
(426,935)
1,807
2,798,662
(929,376)
1,869,286		 Restricted
funds
£
79,909
-
-
-
-
-
79,909
-
79,909		 31.8.21
Total
funds
£
2,876,764
14,025
414,717
428,742
(426,935)
1,807
2,878,571
(929,376)
1,949,195
1,739,891
40,000
45,000
44,395
1,869,286
79,909
1,949,195		 31.8.20
Total
funds
£
2,864,198
21,778
362,284
384,062
(443,787)
(59,725)
2,804,473
(977,685)
1,826,788
1,629,879
40,000
45,000
32,000
1,746,879
79,909
1,826,788

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on .............................................Apr 26, 2022 and were signed on its behalf by:

A B White

A B White (Apr 26, 2022 15:27 GMT+1)

.............................................

A B White - Trustee

....................................AJ Cutlan-Smyth (Apr 26, 2022 14:50 GMT+1) ......... A J Cutlan-Smyth - Trustee

The notes form part of these financial statements

Page 9

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

CASH FLOW STATEMENT

for the Year Ended 31 August 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Finance costs paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 31.8.21
£
186,571
(19,692)
166,879
(55,351)
1,731
12
(53,608)
-
(60,838)
(60,838)
52,433
362,284
414,717		 31.8.20
£
205,836
(20,753)
185,083
(374,978)
5
546
(374,427)
331,449
(46,344)
285,105
95,761
266,523
362,284

The notes form part of these financial statements

Page 10

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE CASH FLOW STATEMENT for the Year Ended 31 August 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest received
Finance costs
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operations		 31.8.21
£
122,407
41,054
(12)
19,692
7,753
(4,323)
186,571		 31.8.20
£
142,552
31,728
(546)
20,753
(16,174)
27,523
205,836

2. ANALYSIS OF CHANGES IN NET DEBT

At 1.9.20 Cash flow At 31.8.21
£ £ £
Net cash
Cash at bank 362,284 52,433 414,717
362,284 52,433 414,717
Debt
Debts falling due within 1 year (57,702) (771) (58,473)
Debts falling due after 1 year (914,295) 61,609 (852,686)
(971,997) 60,838 (911,159)
Total (609,713) 113,271 (496,442)

The notes form part of these financial statements

Page 11

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the Year Ended 31 August 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements and assessment of going concern

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

In light of COVID-19 the Trustees have taken reasonable measures to mitigate the risks to the School including the furloughing of a significant number of staff.

The financial statements are presented in sterling (£).

Critical accounting judgements and key sources of estimation uncertainty

In preparing financial statements it is necessary to make certain judgements, estimated and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements.

Useful economic life of tangible fixed assets:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

School fees relating to the current financial year are included in income, Fees paid in advance are carried forward to be credited to income in the financial year to which they relate. Grants receivable are included in income when any conditions relating to them have been fulfilled.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

All assets with a cost greater than £1,000 and with an expected useful life exceeding one year are capitalised.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

No depreciation is provided on freehold property and classrooms as the property is to be maintained regularly so that its residual value will not be less than the cost of the property. Any depreciation charge arising would not be material.

Taxation

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

Fund accounting

General funds are available for use at the discretion of the Governors in furtherance of the general objectives of the company.

Designated funds comprise general funds which have been set aside at the discretion of the Governors for specific purposes. The purposes and use of the designated funds is set out in the notes to the accounts.

continued...

Page 12

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2021

1. ACCOUNTING POLICIES - continued

Fund accounting

Restricted funds comprise gifts of cash for the restricted purpose of providing fixed assets for charity use, or for purchasing other identified specific items for charity use.

All income and expenditure is shown in the statement of financial activities.

Net current assets

Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash, current bank accounts and deposit bank accounts with no withdrawal limitations.

Creditors

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

Funds received to acquire tangible fixed assets

Where funds are received to enable the Charity to acquire fixed assets for use in the delivery of its services, the funds are held as restricted income until the assets are acquired. When assets are purchased from such funds the restriction is regarded as discharged and the funds are transferred representing tangible fixed assets.

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially settled at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Going Concern

The trustees have considered forecasts in the light of the Covid-19 pandemic and are satisfied that there are no material uncertainties in the charity;s status as a going concern.

2. DONATIONS AND LEGACIES

2. DONATIONS AND LEGACIES
31.8.21 31.8.20
£ £
Donations and sundry income 13,072 39,868
3. INVESTMENT INCOME
31.8.21 31.8.20
£ £
Deposit account interest 12 546

continued...

Page 13

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2021

4. INCOME FROM CHARITABLE ACTIVITIES

Activity
School Fees charged
Fees receivable
Little Oaks Fees
Fees receivable
Essex County Council Free Early
Education Entitlement Grant
Fees receivable
Lunches
Fees receivable
Grants
Fees receivable
Registration fees
Fees receivable
Supervision fees
Fees receivable
Bursaries awarded
Fees receivable
Grants received, included in the above, are as follows:
Coronavirus job retention scheme
5.
CHARITABLE ACTIVITIES COSTS
Tutorial costs
Property
Welfare
Management and administration
Finance costs		 Direct
Costs
£
1,166,279
254,592
23,609
14,045
-
1,458,525		 31.8.21
£
1,458,933
223,639
59,721
33,032
34,474
4,050
287
-
1,814,136
31.8.21
£
34,474
Support
costs (see
note 6)
£
-
-
-
226,596
19,692
246,288		 31.8.20
£
1,453,839
126,892
60,295
55,200
108,768
2,668
1,195
(12,709		 31.8.20
£
1,453,839
126,892
60,295
55,200
108,768
2,668
1,195
(12,709
1,796,148
31.8.20
£
108,768
Totals
£
1,166,279
254,592
23,609
240,641
19,692		 31.8.20
£
108,768
1,704,813
6.
SUPPORT COSTS
Management and administration
Finance costs		 Governance
Finance
costs
£
£
-
226,596
19,692
-
19,692
226,596		 Totals
£
226,596
19,692
246,288

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.8.21 31.8.20
£ £
Auditors remuneration 5,898 5,784
Depreciation - owned assets 41,054 31,728

continued...

Page 14

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2021

8. TRUSTEES' REMUNERATION AND BENEFITS

No Governors received remuneration in their capacity as trustees during the year (2020: none).

Trustees' expenses

No Governors received reimbursement in their capacity as trustees during the year. (2020: none)

9. STAFF COSTS

2021 2020
£ £
Staff costs during the year were as follows:
Wages and salaries 1,025,233 1,066,708
Social security costs 89,987 86,075
Other pension costs 97,491 113,163
1,212,711 1,265,946

Two employees earned between £60,000 and £70,000 per annum (including benefits) during the year (2020: two). One employee earned between £85,000 and £95,000 per annum (including benefits) during the year (2020:one).

The number of employees, analysed by function was:

The number of employees, analysed by function was:
2021 2020
Teaching staff 34 35
Office management / Ancillary 10 11
44 46

The Governors consider that the Key Management Personnel of the organisation comprise the Board of Governors, Head, Deputy Head, Head of Pastoral and Bursar. Total Key Management Personnel remuneration in the year was £266,540 (2020: £256,493)

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Fees receivable
Investment income
Total
EXPENDITURE ON
Charitable activities
Tutorial costs
Property
Welfare
Management and administration
Finance costs
Total
NET INCOME		 Unrestricted
funds
£
39,868
1,796,148
546
1,836,562
1,183,828
200,802
56,657
231,960
20,763
1,694,010
142,552		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-		 Total
funds
£
39,868
1,796,148
546
1,836,562
1,183,828
200,802
56,657
231,960
20,763
1,694,010
142,552

Page 15

continued...

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2021

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Restricted
funds
funds
£
£
RECONCILIATION OF FUNDS
Total funds brought forward
1,604,327
79,909
TOTAL FUNDS CARRIED FORWARD
1,746,879
79,909
11.
TANGIBLE FIXED ASSETS
Fixtures
Freehold
and
Computer
property
fittings
equipment
£
£
£
COST
At 1 September 2020
2,784,219
172,218
104,234
Additions
21,316
10,280
23,755
Disposals
-
(8,655)
(26,808)
At 31 August 2021
2,805,535
173,843
101,181
DEPRECIATION
At 1 September 2020
67,277
60,783
68,413
Charge for year
-
17,853
23,201
Eliminated on disposal
-
(6,924)
(26,808)
At 31 August 2021
67,277
71,712
64,806
NET BOOK VALUE
At 31 August 2021
2,738,258
102,131
36,375
At 31 August 2020
2,716,942
111,435
35,821
The tangible fixed assets are used exclusively for the educational purposes of the charitable company.
12.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.21
£
Other debtors
5,026
Prepayments and accrued income
8,999
14,025		 Total
funds
£
1,684,236
1,826,788
Totals
£
3,060,671
55,351
(35,463)
3,080,559
196,473
41,054
(33,732)
203,795
2,876,764
2,864,198
31.8.20
£
20,127
1,651
21,778

Page 16

continued...

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued
for the Year Ended 31 August 2021
13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 15)
Social security and other taxes
Other creditors
Fees in Advance
Acceptance Fees
Accruals and deferred income
14.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans (see note 15)
Acceptance fees
15.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans and overdrafts
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
16.
SECURED DEBTS
The following secured debts are included within creditors:
Bank loans		 31.8.21
£
58,473
23,484
20,779
270,048
16,100
38,051
426,935
31.8.21
£
852,686
76,690
929,376
31.8.21
£
58,473
57,700
173,100
621,886
31.8.21
£
911,159		 31.8.20
£
57,702
22,720
25,250
284,365
20,000
33,750
443,787
31.8.20
£
914,295
63,390
977,685
31.8.20
£
57,702
59,700
181,900
672,695
31.8.20
£
971,997

There are three commercial mortgages in operation The first is repayable by monthly instalments over 30 years with interest at 1.6% over base. The second is repayable by monthly instalments over 20 years with interest at 2.7% over base. The third is repayable by monthly instalments over 30 years with interest at 1.97% over base. They are secured by legal charges over the freehold land and buildings. The bank has a fixed and floating charge over all other assets.

continued...

Page 17

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2021

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Bursaries Fund
Repairs and maintenance fund
Development reserve
Restricted funds
Restricted capital fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Development reserve
TOTAL FUNDS
Comparatives for movement in funds
At 1.9.19
£
Unrestricted funds
General fund
1,519,327
Bursaries Fund
40,000
Repairs and maintenance fund
45,000
Development reserve
-
1,604,327
Restricted funds
Restricted capital fund
79,909
TOTAL FUNDS
1,684,236		 At 1.9.20
£
1,629,879
40,000
45,000
32,000
1,746,879
79,909
1,826,788
Incoming
resources
£
1,814,825
12,395
1,827,220
1,827,220
Net
movement
in funds
£
123,261
(12,709)
-
32,000
142,552
-
142,552		 Net
movement
in funds
£
110,012
-
-
12,395
122,407
-
122,407
Resources
expended
£
(1,704,813 )
-
(1,704,813 )
(1,704,813 )
Transfers
between
funds
£
(12,709)
12,709
-
-
-
-
-		 At
31.8.21
£
1,739,891
40,000
45,000
44,395
1,869,286
79,909
1,949,195
Movement
in funds
£
110,012
12,395
122,407
122,407
At
31.8.20
£
1,629,879
40,000
45,000
32,000
1,746,879
79,909
1,826,788

continued...

Page 18

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2021

17. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Bursaries Fund
Development reserve
TOTAL FUNDS		 Incoming
resources
£
1,817,271
(12,709)
32,000
1,836,562
1,836,562		 Resources
expended
£
(1,694,010 )
-
-
(1,694,010 )
(1,694,010 )		 Movement
in funds
£
123,261
(12,709)
32,000
142,552
142,552

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Bursaries Fund
Repairs and maintenance fund
Development reserve
Restricted funds
Restricted capital fund
TOTAL FUNDS		 At 1.9.19
£
1,519,327
40,000
45,000
-
1,604,327
79,909
1,684,236		 Net
movement
in funds
£
233,273
(12,709)
-
44,395
264,959
-
264,959		 Transfers
between
funds
£
(12,709)
12,709
-
-
-
-
-		 At
31.8.21
£
1,739,891
40,000
45,000
44,395
1,869,286
79,909
1,949,195

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Bursaries Fund
Development reserve
TOTAL FUNDS		 Incoming
resources
£
3,632,096
(12,709)
44,395
3,663,782
3,663,782		 Resources
expended
£
(3,398,823 )
-
-
(3,398,823 )
(3,398,823 )		 Movement
in funds
£
233,273
(12,709)
44,395
264,959
264,959

The bursary fund was established to provide short term hardship grants and long term bursary awards for pupils at the discretion of the Governors. During the year no transfers were made to or from this fund (2020: £12,709 to the bursary fund)

The repairs and maintenance fund was established to provide for the cost of maintaining the property of the company at the discretion of the Governors.

The Restricted capital fund consists of monies which were donated under Project 2012 for the restricted purpose of construction of the Cedar Wall building and associated development works and represents part of the capital cost of the building.

continued...

Page 19

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 August 2021

18. RELATED PARTY DISCLOSURES

At the end of the year four Governors were parents of children at the school (2020 - 4 Governors). School fee charges are on normal commercial terms and Governors derive no financial benefit.

There are no further related party transactions

19. ULTIMATE CONTROLLING PARTY

In the opinion of the Governors, there is no ultimate controlling party.

20. LIMITED LIABILITY

The company is limited by guarantee and hence has no share capital. The amount guaranteed is £1 per member. There were 68 members of the company at 31 August 2021 (2020 - 82).

21. CHARITABLE STATUS

The company is a registered charity (Charity Registration Number 297106).

22. PENSION COMMITMENTS

Pension costs include payments by the company to APTIS (Aviva Pension Trust for Independent Schools) a Defined Benefit Contribution Scheme for teaching staff with employer contributions at 16.4% and under auto-enrolment to NEST Workplace Pension Scheme.

Following Consultation the School exited the Teachers' Pension Scheme as at 31st August 2020 due to the significant increase in the level of employer contributions.

Employer contributions to APTIS and the NEST workplace pension scheme are recognised as an expense in the Statement of Financial Activities when they fall due.

Page 20

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 August 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations and sundry income
Investment income
Deposit account interest
Charitable activities
School Fees charged
Little Oaks Fees
Essex County Council Free Early Education
Entitlement Grant
Lunches
Grants
Registration fees
Supervision fees
Bursaries awarded
Total incoming resources
EXPENDITURE
Charitable activities
Tutorial costs Teachers salaries
Peripatetic Teachers
Teaching materials
Outings
Coach hire and pool hire
Training
Information technology
Property Maintenance salaries
Rates
Insurance
Heating Oil
Electricity
Cleaning and cleaning material
Repairs and maintenance
Garden maintenance
Depreciation
Profit/Loss on disposal on fixed asset
Welfare Lunches
Covid 19 costs
Support costs
Finance
Bank charges
Overdraft interest
Loan interest		 31.8.21
£
13,072
12
1,458,933
223,639
59,721
33,032
34,474
4,050
287
-
1,814,136
1,827,220
1,043,729
1,408
49,575
12,492
4,915
10,765
35,260
34,460
9,093
25,317
1,991
30,503
48,411
57,231
12,934
41,055
1,732
23,609
14,045
1,458,525
-
1,462
18,230
19,692		 31.8.20
£
39,868
546
1,453,839
126,892
60,295
55,200
108,768
2,668
1,195
(12,709)
1,796,148
1,836,562
1,082,077
26,594
29,703
10,140
10,905
9,749
19,236
23,516
11,119
20,491
2,990
26,872
31,335
57,708
1,658
31,727
5
52,612
16,173
1,464,610
156
1,218
19,535
20,909

This page does not form part of the statutory financial statements

Page 21

THE HOWE GREEN EDUCATIONAL TRUST LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

for the Year Ended 31 August 2021

DETAILED STATEMENT OF FINANCIAL ACTIVITIES
for the Year Ended 31 August 2021
Finance
Governance costs
Office / Ancillary salaries
Auditors' remuneration
Telephone
Postage and stationery
Sundry expenses
Accountancy
Legal and professional
Marketing, Advertising and Website
Subscriptions
Bank charges including loan fees
Total resources expended
Net income		 31.8.21
£
133,114
5,898
6,714
11,199
7,834
8,139
19,386
30,317
3,419
576
226,596
1,704,813
122,407		 31.8.20
£
140,159
5,784
2,819
4,612
9,699
8,100
15,783
15,325
6,160
50
208,491
1,694,010
142,552

This page does not form part of the statutory financial statements

Page 22