. 

} 

. 

Charity registration number 299714 

Company registration number 02274600 (England and Wales) 

## SANDS SCHOOL 

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 



- SANDS SCHOOL 

z 

CONTENTS , 

||Page|
|---|---|
|Trustees’ report|1-5|
|Independent examiner's report|6|
|Statement of financial activities|7|
|Balance sheet|8-9|
|Statement ofcash flows|10|
|Notestothefinancialstatements|11-24|





## SANDS SCHOOL 

## LEGAL AND ADMINISTRATIVE INFORMATION 

|Trustees|MissA McCarthy-Sommerville||
|---|---|---|
||Mr E Cohen||
||E Daniels|(Appointed 14April 2022)|
||Mrs H Bodiley|(Appointed 14April 2022)|
||Mr D Mackenzie|(Appointed 9 February 2023)|
||MsT Browett|(Appointed 9 February 2023)|
|School administrator|MrS Bellamy||
|Charity number|299714||
|Company number|02274600||
|Principal address|Greylands||
||48 East Street||
||Ashburton||
||Devon||
||TQ13 7AX||
|Registered office|30 Fore Street||
||Totnes||
||Devon||
||TQ9 5RP||
|Independentexaminer|Darnells CharteredAccountants||
||Quay House||
||Quay Road||
||Newton Abbot||
||Devon||
||TQ12 2BU||
|Bankers|Lloyds Bank||
||31 Fore Street||
||Totnes||
||Devon||
||TQ95HH||





## SANDS SCHOOL 

## TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2022 

The Trustees present their annual report and financial statements for the year ended 31 July 2022. 

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's Memorandum & Articles of Association, the Companies Act 2006 and the Statement of Recommended Practice for charities applying FRS102. 

## Objectives and activities 

The overall objectives and principal activities of the Charity are to promote and provide for the advancement of education of children through the governance of Sands School in the County of Devon. Sands School is a day school which principally provides education in Ashburton to children from the ages of 11 to 17. Sands is a Democratic School by which we mean a place in which children and staff have the opportunity to be active, voting members, deciding and/or ratifying decisions made by the School meeting and/or other delegated sub-groups. Our intention is thus to help them become contributing members of the wider society, comfortable with their rights and responsibilities. 

Our aims for the children's academic development within the School are based on the individual child. We aim to allow the curriculum to be a tool used by the pupil and teacher to make learning rewarding and a good preparation for life beyond school. We offer students the chance to develop an approach to learning that is personalised and encourages critical thinking and creativity. The teaching offers a medium for the development of open-minded and emotionally intelligent children. 

Philosophy: 

At the heart of our model is the idea that students should help design their place of learning and remain actively involved in the making of its rules and contributing to its philosophy; that students and teachers should be equal partners in the running of the School and that students should map their own route through their school careers with guidance from the adults. The result is a place where play is still important even to 16 year olds, where talking and recreation are valued and students tend to be relaxed, happy and involved in class because they have made a conscious decision to attend. 

The average number of pupils in the school for the year was 75 (2021: 63). 

Objectives and Strategies for the Year: 

We do not have specific objectives in particular years other than to maintain pupil numbers at a level which secures the School's continued viability. Within this objective we endeavour to keep the School as affordable as possible through keeping the fees low, offering means-tested bursaries and securing charitable funding for eligible students. 

Every year we promote the advancement of learning through principles of democratic education as the opportunities arise. This includes attending educational events and hosting visitors interested in finding out about democratic education. 

=e 



## SANDS SCHOOL 

## TRUSTEES’ REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2022 

## Public Benefit: 

Trustees and management are aware of the on-going development regarding public benefit and charitable status of Charities and Independent Schools and the Trustees have had due regard to guidance published by the Charity Commission on public benefit. 

The School's principle public benefit is in its function of developing the incorporation of democratic principles in education. The School hosts visits from teachers and school groups from across the world to learn about how students can be actively engaged in all aspects of the provision of their education and see the positive impact that this engagement has across school life. 

It is one of the principles of the School that as far as possible access to an education at Sands should not be restricted by the ability to pay. This is achieved through a redistributive bursary system, support in accessing funding from other charitable sources and through the very generous willingness of the staff to offer their services for remuneration well below the normal market rates. As a result the school fees are kept relatively low at £11,316 per year compared with the average day school rate of £15,655 (calculated by the Independent Schools Council). 

During this year one third of the students received bursaries, mostly equivalent to either one quarter or one third of full fees. Although this is the norm, the School can and does offer assistance above this level. Bursaries given by the School totalled £52,470, a figure equivalent to 6.1 per cent of the total fees due. 

The School is very keen and open to being a part of our local community. Thanks to some very generous help our newly renovated sports court is now available for use by the neighbouring state primary school and as a public tennis court. 

## Achievements and performance 

## Operational performance 

The objectives of the charity are to provide a democratic education to the pupils at Sands School and to promote the benefits of democratic education. 

The School does not believe that aggregate exam results or other outcome statistics are a meaningful measure of its performance. Being a small and genuinely inclusive School, pupils outcomes can only be understood at an individual level. 

The School normally hosts a large number of visitors interested in democratic education but this was curtailed by the COVID 19 pandemic. 

## Financial review 

## Results for the Year: 

Total unrestricted net school fees and associated income for the year amounted to £733,484 (2021: £557,739). There was a surplus on ordinary continuing activities for the year of £21,363 (2021 deficit of £64,490). 

The results reflect a strong increase in the total numbers of students on roll following the pandemic, and an increased interest in alternative education provision following the experiences of lockdown. 

The principal funding sources of the charity are the parents who send their children to the School. 

At 31 July 2022 total funds, which includes buildings and other tangible assets, amounted to £679,050 (2021: £657,687) with restricted funds of £13,000 (2021: 22,446). 

## Property 

The Directors consider that the market value of the land and buildings exceeds the carrying value included in the financial statements by at least £750,000. 

=D x 



## SANDS SCHOOL 

## TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2022 

## Reserves Policy: 

The Charities SORP defines reserves as that part of a charity's funds that is freely available to spend. The Charities SORP also specifically allows funds held as tangible fixed assets for charity use to be excluded from reserves. This recognises that certain assets, like our buildings and equipment and mini-buses are used operationally and their disposal would adversely impact on the School's ability to deliver its aims. 

For the purposes of this policy reserves are defined as net financial assets, that is, cash deposits less restricted funds, loans and creditors (net of debtors). At the end of this financial year the balance was £370,113 up from £347,438 in the previous year. 

The Trustees have agreed that in future the level of reserves held shall be limited to the amount required to meet all of the conditions set out below with any reserves in excess of this being applied for the charitable purposes of the School: 

1. Cash flow requirement: after allowing for creditors falling due within one year the School should aim to maintain free cash reserves of between £30,000 and £40,000. Of this up to £10,000 should be held for day- to-day operational needs with the remainder being held on short term deposit. Free cash reserves in excess of this should be used to reduce long term borrowings. 

2. Uncertainties: based on past experience the School roll can fall significantly as a result of poor economic conditions and the School needs to be able to survive on a reduced roll for a period of three years without needing to borrow money or cutting costs to a point where the quality of education offered would be significantly diminished. Based on the current operational budget, a fall in roll down to 60 would result in a £100,000 annual loss. However, it is expected that some additional cost reduction would be put in place so a total of £255,000 would be sufficient to cover losses for three years. 

3. Strategic requirement: the School may decide in future to undertake developments which would require significant investment. In this case the Trustees would aim to accumulate additional reserves set aside for these developments. 

Review of the School's reserves position at 31 July 2022: 

## Cash flow: 

The School has sufficient funds to meet its cash flow requirements for the coming year. Free cash and bank funds stood at £425,148 with creditors falling due within one year of £133,399. 

## Uncertainties: 

Although the COVID pandemic has continued to affect the School in other ways there was a significant recovery in recruitment for the start of 2021-22 with a full intake year and many other year groups full. There are expected to be continuing costs directly associated with the pandemic, principally maintaining a higher than normal level of staffing to cover staff absence due to illness and to support students having to learn remotely. 

## Strategic requirements: 

Ideally the School will need to find significant funds for capital investment over the coming years, in particular the replacement of the slate roof on the main building. 

## Policy for 2022-23 

The Governors expect to be closer to breakeven with additional temporary staffing being largely offset by the recovery in roll. 

## Investment policy: 

The Trustees’ policy is to invest surplus cash whenever possible on short term deposit. The Trustees are satisfied that the return is commensurate with the objective of minimising risk. 

-3- 



## SANDS SCHOOL 

## TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2022 

## Risk Management: 

The School has considered the principal risks to which it is subject and has taken adequate steps to mitigate those risks. These include an annual review of the financial risks the School may face and the implementation of satisfactory procedures to ensure that the School offers a safe and constructive environment for children. 

Key controls include regular risk assessment checks of all areas and regularly reviewed policies, which are available to parents, the Independent Schools Inspectorate and other interested parties. 

The Governors are always conscious of the need for the School to operate within its available financial resources and to have adequate working capital. 

## Plans for future periods 

We do not have specific objectives in particular years other than to maintain pupil numbers at a level which secures the School's continued viability. Within this objective we endeavour to keep the School as affordable as possible through keeping the fees low, offering means-tested bursaries and securing charitable funding for eligible students. 

Every year we promote the advancement of learning through principles of democratic education as the opportunities arise. This includes attending educational events and hosting visitors interested in finding out about democratic education. 

There are currently no plans for significant changes or investments. 

## Structure, governance and management 

Sands School is a company limited by guarantee governed by its Memorandum and Articles of Association, and was incorporated on 6 July 1988. It is registered as a charity with the Charity Commission. The liability of the Members is limited. In the event of the Company being wound up every Member of the Company undertakes to contribute such amount as may be required (not exceeding £1) to the Company's assets. 

The Trustees, who are also the directors for the purpose of company law, and those who served during the year and up to the date of signature of the financial statements were: Miss A McCarthy-Sommenrville 

Mr E Cohen 

S Bolton (Appointed 14 April 2022 and resigned 12 June 2022) E Daniels (Appointed 14 April 2022) Mrs H Bodiley (Appointed 14 April 2022) Mr D Mackenzie (Appointed 9 February 2023) Ms T Browett (Appointed 9 February 2023) 

## Appointment of Trustees: 

Under the Articles of Association subscribers to the Memorandum of Association and such other persons as the Board of Directors shall admit to membership shall be the Members of the Company. The number of Members shall not exceed 50. In the event of the retirement of a Trustee all Members are invited to nominate candidates. 

The members of the Board of Trustees should be appointed by the Company in general meeting. The Board has the power to fill a casual vacancy at any time. 

-4 = 



## SANDS SCHOOL 

## TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2022 

## Organisation: 

The Board of Trustees (who are also the directors) delegate the management of the affairs of the School to a Board of Governors. The Board of Governors are accountable to the Trustees and are required to operate within the budget and conditions agreed by the Trustees. The power of appointing Governors remains with the Trustees. 

In accordance with the Conduct of the School as laid out in its Instrument of Government, School management is effected by discussion and consensus and due regard is taken by the Governors of the views and wishes of the staff and pupils on all matters relating to the management, conduct and underlying philosophy of the School and behaviour in the School. Financial matters and decision making is dealt with separately from the students. 

The Governors meet once a term (or more often if necessary) and receive reports from the Administrator, the Bursar and the Student Governors. At these meetings Governors officially confirm staff appointments and approve bursary policy and term budgets, but most of the time is usually taken up with comment and advice. The Governors generally support and advise the Administrator and the School Meeting. The day to day management of the School is the responsibility of the Administrator, Sean Bellamy and the Bursar, Pamela Gallamoy. 

## Trustee Induction and Training: 

New Trustees are already familiar with the practical work of the Charity as they are normally recruited from the governing body of Sands School. They are inducted during the course of a normal business meeting by democratic vote. New Trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the decision making processes, the recent financial performance of the Company and current practice in pursuance of the objects of the Company. Documents made available to them are the Sands School Memorandum and Articles of Association, the Charity Commission's "Welcome" document, the Charity Commission's "CC3 Responsibilities of Charity Trustees" and a Companies House booklet concerned with directors’ responsibilities as they relate to Companies House. 

The Board remain conscious of the on-going need to make available training (formal or informal) as and when required. 

## Related Parties: 

Sands School is a member of the International Democratic Education Network and co-founder of the European Democratic Education Network. 

The Trustees' report was approved by the Board of Trustees. 

TrusteeE Daniels =e Dated: 12 April 2023 

= 5 = 



## SANDS SCHOOL 

## INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SANDS SCHOOL 

| report to the Trustees on my examination of the financial statements of Sands School (the charity) for the year ended 31 July 2022. 

## Responsibilities and basis of report 

As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). 

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, | report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination | have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. Independent examiner's statement Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. | confirm that | am qualified to undertake the examination because | am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies. 

| have completed my examination. | confirm that no matters have come to my attention in connection with the 

examination giving me cause to believe that in any material respect: 

- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or 2 _ the financial statements do not accord with those records; or 

- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or 

- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

| have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. 

## Denes 

Lisa Dickinson ACA FCCA Darnells Chartered Accountants 

Quay House Quay Road Newton Abbot Devon TQ12 2BU 

Dated: 14 April 2023 

«6 



## SANDS SCHOOL 

## STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2022 

|||Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|---|
|||funds|funds||funds|funds||
|||2022|2022|2022|2021|2021|2021|
||Notes|£|£|£|£|£|£|
|Income from:||||||||
|Voluntary income|2|11,040|-|11,040|1,505|-|1,505|
|Incoming resources||||||||
|from charitable activities|3|733,484|79,950|813,434|557,739|51,091|608,830|
|Investment income|4|82|-|82|145|-|145|
|Other income|6|652|-|652|25,449|-|25,449|
|Total income||745,258|79,950|825,208|584,838|51,091|635,929|
|Expenditure on:||||||||
|Charitable activities|7|714,449|89,396|803,845|648,090|51,091|699,181|
|Net income/(expenditure) for||||||||
|the year/||||||||
|Net incoming/(outgoing)||||||||
|resources||30,809|(9,446)|21,363|(63,252)|-|(63,252)|
|Other recognised gains|and losses|||||||
|Other gains or losses|11|-|-|-|(1,238)|-|(1,238)|
|Netmovement in funds||30,809|(9,446)|21,363|(64,490)|-|(64,490)|
|Fund balances at 1||||||||
|August 2021||635,241|22,446|657,687|699,731|22,446|722,177|
|Fund balances at 31||||||||
|July2022||666,050|13,000|679,050|635,241|22,446|657,687|



The statement of financial activities includes all gains and losses recognised in the year. 

All income and expenditure derive from continuing activities. 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 

2 Ti 



## SANDS SCHOOL 

## BALANCE SHEET 

## AS AT 31 JULY 2022 

|||2022||2021||
|---|---|---|---|---|---|
||Notes|£|£|£|£|
|Fixed assets||||||
|Tangible assets|12||295,937||287,803|
|Current assets||||||
|Debtors|13|95,614||68,321||
|Cash at bank and in hand||425,148||457,095||
|||520,762||525,416||
|Creditors: amounts falling due within||||||
|one year|15|(133,399)||(147,752)||
|Net current assets|||387,363||377,664|
|Total assets less current liabilities|||683,300||665,467|
|Creditors: amounts falling due after||||||
|more than one year|16||-||(7,780)|
|Provisions for liabilities|17||(4,250)||-|
|Netassets|||679,050||657,687|
|Income funds||||||
|Restricted funds|20||13,000||22,446|
|Unrestricted funds|||666,050||635,241|
||||679,050||657,687|



= Bis 



## SANDS SCHOOL 

## BALANCE SHEET (CONTINUED) 

## AS AT 31 JULY 2022 

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2022. 

The Trustees' acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company. 

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. 

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

The financial statements were approved by the Trustees on 12 April 2023 

E Daniels ZA Trustee . 

## Company registration number 02274600 

«Su 



## SANDS SCHOOL 

## STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022 


**----- Start of picture text -----**<br>
||||||||||
|---|---|---|---|---|---|---|---|---|
|2022|2021|
|Notes|£|£|£|£|
|Cash|flows|from|operating|activities|
|Cash|(absorbed|by)/generated|from|23|
|operations|(7,823)|125,164|
|Investing|activities|
|Purchase|of tangible|fixed|assets|(15,036)|(5,086)|
|Proceeds|on|disposal|of tangible|fixed|
|assets|1|-|
|Interest|received|82|145|
|Net cash|used|in|investing|activities|(14,953)|(4,941)|
|Financing|activities|
|Repayment of bank|loans|(9,171)|(8,394)|
|Net cash|used|in|financing|activities|(9,171)|(8,394)|
|Net|(decrease)/increase|in|cash|and|cash|
|equivalents|(31,947)|111,829|
|Cash|and|cash|equivalents|at|beginning|of year|457,095|345,266|
|Cash|and|cash|equivalents|at end|of year|425,148|457,095|

**----- End of picture text -----**<br>


## i 

## ee 

-10- 



## SANDS SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 

- 1 Accounting policies 

## Charity information 

Sands School is a private company limited by guarantee incorporated in England and Wales. The registered office is 30 Fore Street, Totnes, Devon, TQ9 5RP. The Charity's place of business is Greylands, 48 East Street, Ashburton, Devon, TQ13 7AX. 

1.1 Accounting convention These accounts have been prepared in accordance with the Charity's Memorandum and Articles of Association, “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 (FRS102) (effective 1 January 2019)", the Companies Act 2006 and UK Generally Accepted Accounting Practice. The charity is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1. 

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 

1.2 Charitable funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. 

- Restricted funds are subject to specific conditions by funders as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts. 

1.3. Incoming resources Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Income from school fees is included in incoming resources in the period that the student has received tuition from the school. 

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

1.4 Resources expended Resources expended are included in the statement offinancial activities on an accruals basis, and are recognised when there is a legal or constructive obligation to pay for expenditure. 

Certain expenditure is directly attributable to specific functional activities and has been included in those cost categories. Certain other costs, which are attributable to more than one functional activity, are apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities or based on the estimated use of the resource concerned or space occupied. 

The charity is not registered for VAT. All expenditure is therefore stated inclusive of VAT where applicable. 

-W- 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

## 1 Accounting policies 

## (Continued) 

- 1.5 Tangible fixed assets 

   - Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. 

Depreciation is provided to write off the cost or valuation, less any residual value of all fixed assets except freehold land and buildings over their estimated useful lives. It is calculated at the following rates:- 

Plant and machinery over 4 years on a straight line basis Fixtures, fittings & equipment over 5 years ona straight line basis Motor vehicles over 5 years on a straight line basis 

Freehold land and buildings are not depreciated as in the opinion of the Trustees the useful economic life and residual value are such that any depreciation would be insignificant. Impairment reviews are carried out periodically, and whenever there is evidence that the value of a tangible asset, or class of asset, may be impaired. 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement offinancial activities. 

## 1.6 Impairment of fixed assets 

At each reporting end date, the Charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. 

- 1.7. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 

1.8 Financial instruments The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument. 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 

-12- 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

- 1 Accounting policies 

## (Continued) 

## Basic financial assets 

Basic financial assets, which include investments, debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. 

## Derecognition of financial assets 

Financial assets are derecognised only when the contractual rights to the cash flows from the assets expire or are settled or when the Charity transfers the financial assets and substantially all the risks and rewards of ownership to another entity. 

## Basic financial liabilities 

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 

## Derecognition of[financial][liabilities] 

Financial liabilities are derecognised when the Charity's contractual obligations expire or are discharged or cancelled. 

- 1.9 Provisions 

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises. 

## 1.10 Pensions 

The Charity contributes to the Teachers' Pension Scheme (England and Wales) at rates set by the Scheme Actuary and advised to Council by the Scheme Administrator. 

The Charity also contributes to a defined contribution scheme for staff not within the Teachers’ Pension Scheme. 

- 1.11 Leases 

Rentals payable under operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, are charged to income on a straight line basis over the term of the relevant lease. 

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the statement of financial activities on a straight line basis. 

-13- 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

1 Accounting policies 

## (Continued) 

## 1.12 Support costs 

Support costs include expenses which enable charitable activities and fund generating to be undertaken. These costs include finance and human resources and are allocated on a basis consistent with the use of the resource. 

## 1.13 Governance costs 

Governance costs comprise the costs of running the charity, including strategic planning for its future development, any legal advice for the Trustees, and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability. 

## 1.14 Employee benefits 

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment or to provide termination benefits. 

## 2 Voluntary income 

||Unrestricted|Unrestricted|
|---|---|---|
||funds|funds|
||2022|2021|
||£|£|
|Donations and gifts|11,040|1,505|
|Donations and gifts|||
|Elmgrant Trust|-|1,500|
|Leonard Stocks Trust|11,040|-|
|Other|-|5|
||11,040|1,505|



-14- 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 

## FOR THE YEAR ENDED 31 JULY 2022 

- 3 Incoming resources from charitable activities 

||Net school|Net school fees and|
|---|---|---|
||fees and|associated income|
||associated||
||income||
||2022|2021|
||£|£|
|Net school fees and associated income|813,434|608,830|
|Analysis by fund|||
|Unrestricted funds|733,484|557,739|
|Restricted funds|79,950|51,091|
||813,434|608,830|



## 4 Investment income 

|||Unrestricted|Unrestricted|
|---|---|---|---|
|||funds|funds|
|||2022|2021|
|||£|£|
|Interest|receivable|82|145|



-15- 



## SANDS SCHOOL 

. 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

## 5 Breakdown of Incoming resources 

||2022|2021|
|---|---|---|
||£|£|
|Fees Receivable|829,843|680,844|
|Lunches|14,008|7,501|
|Buses/Trips/Camps|18,672|9,944|
|Bursaries given|(52,470)|(69,135)|
|Discounts given|(68,002)|(53,440)|
|Staffdiscount|(7,567)|(15,767)|
|COVID discount|-|(2,208)|
|LEAfunding|73,575|51,091|
|Europaisher grant|5,375|-|
|Eclect grant|-|-|
||813,434|608,830|



## 6 Other income 

||Unrestricted|Unrestricted|
|---|---|---|
||funds|funds|
||2022|2021|
||£|£|
|Coronavirus Job Retention Scheme grant|-|25,449|
|Sundryincome|652|-|



-16- 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

## 7 Charitable activities 

||Costs of|Costs of|
|---|---|---|
||operation of|operation of|
||school|school|
||2022|2021|
||£|£|
|Staffcosts|461,165|393,211|
|Depreciation and impairment|6,901|6,791|
|Restricted expenditure|-|6,288|
|Supply teachers and cooking contractors|22,712|10,878|
|Counselling costs|3,955|2,211|
|Books, teaching supplies and exam fees|36,535|22,123|
|Food and refreshments|11,654|6,340|
|Camp, trip and educational visit costs|23,366|3,624|
|(Profit)/Loss on disposal ofassets|1|-|
|Rent and rates|5,422|6,468|
|Repairs and cleaning|50,156|55,457|
|Insurances|8,953|9,970|
|Light and heat|10,167|5,084|
||640,987|528,445|
|Share ofsupport costs (see note 8)|144,523|151,698|
|Share ofgovernance costs (see note 8)|18,335|19,038|
||803,845|699,181|
|Analysis byfund|||
|Unrestricted funds|714,449|648,090|
|Restricted funds|89,396|51,091|
||803,845|699,181|



-17- 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

|8|Support costs|||||||
|---|---|---|---|---|---|---|---|
|||Support|Governance|2022||2021|Basis of|
|||costs|costs||||allocation|
|||£|£|£||£||
||Staffcosts|110,358|-|110,358||106,709|Time spent|
||Motor running and travelling|6,837|-|6,837||6,230|Direct|
||Bad debts|7,120|-|7,120||17,316|Direct|
||Advertising and publicity|250|-|250||1,102|Direct|
||Recruitment, training and workshops|4,068|-|4,068||9,126|Direct|
||Printing, postage and stationery|7,187|-|7,187||3,901|Direct|
||Telephone and communication|1,798|-|1,798|.|1,897|Direct|
||Equipment rental|3,884|-|3,884||2,843|Direct|
||Bank charges|1,120|-|1,120||748|Direct|
||Interest payable|685|-|685||1,742|Direct|
||Sundries|1,216|-|1,216||84|Direct|
||Independent examiner's fees - external||||||Governance|
||scrutiny|-|2,280|2,280||2,280||
||Independent examiner's fees - other||||||Governance|
||services|-|7,396|7,396||6,526||
||Legal, professional and consultancy||||||Governance|
||fees|-|8,659|8,659||10,232||
|||144,523|18,335|162,858||170,736||
||Analysed between|||||||
||Charitableactivities|144,523|18,335|162,858||170,736||



Governance costs includes payments to the independent examiner of £2,280 (2021: £2,280) for independent examination fees and £7,396 (2021: £6,526) for other services. 

## 9 Trustees 

None of the Trustees (or any persons connected with them) received any remuneration during the year (2021: Enil) and no Trustees were reimbursed expenses (2021: fnil). 

-18- 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 

## FOR THE YEAR ENDED 31 JULY 2022 

## 10 Employees 

The average monthly number of employees during the year was: 

||2022|2021|
|---|---|---|
||Number|Number|
|Teaching|21|19|
|Administration|4|4|
|Maintenance|1|1|
|Counselling|1|1|
|Total|27|25|
|Employment costs|2022|2021|
||£|£|
|Wages and salaries|498,010|438,825|
|Social security costs|33,163|28,290|
|Other pension costs|40,350|32,805|
||571,523|499,920|



Redundancy totalling £3,685 was paid to three members of staff in the year (2021: £-). 

There were no employees whose annual remuneration was more than £60,000. 

11 Other gains or losses 

||||Unrestricted|
|---|---|---|---|
||||funds|
||||2021|
||||£|
|Foreign|exchange|losses/(gains)|1,238|



-19- 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

## 12 Tangible fixed assets 

|Tangible fixed assets||||||
|---|---|---|---|---|---|
||Land and|Plantand|Fixtures, Motorvehicles||Total|
||buildings|machinery|fittings &|||
||||equipment|||
||£|£|£|£|£|
|Cost||||||
|At 1 August 2021|277,865|47,605|113,728|26,219|465,417|
|Additions|-|8,341|-|6,695|15,036|
|Disposals|-|-|-|(12,091)|(12,091)|
|At 31 July2022|277,865|55,946|113,728|20,823|468,362|
|Depreciation and impairment||||||
|At 1 August 2021|-|39,228|112,170|26,216|177,614|
|Depreciation charged in the year|-|5,438|542|921|6,901|
|Eliminated in respect ofdisposals|-|-|-|(12,090)|(12,090)|
|At 31 July 2022|-|44,666|112,712|15,047|172,425|
|Carrying amount||||||
|At 31 July 2022|277,865|11,280|1,016|5,776|295,937|
|At31July2021|277,865|8,377|1,558|3|287,803|



Based on an assessment of the value of the property with local estate agents and developers the directors are of the opinion that at 31 July 2022 the market value of land and buildings exceeds the carrying value by at least £750,000. 

In the opinion of the directors, the net book value of non-depreciable assets included above is in the region of £400,000. 

13 Debtors 

|Debtors|||
|---|---|---|
||2022|2021|
|Amounts falling due within one year:|£|£|
|Fee debtors|79,145|57,269|
|Other debtors|5,375|-|
|Prepayments and accrued income|11,094|11,052|
||95,614|68,321|



## 14 Loans and overdrafts 

|Loans and overdrafts|||
|---|---|---|
||2022|2021|
||£|£|
|Bank loans|7,011|16,182|
|Payable within one year|7,011|8,402|
|Payableafteroneyear|-|7,780|



= 20= 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

## 14 Loans and overdrafts 

## (Continued) 

The bank loan is secured by a fixed and floating charge over the company's freehold property and is repayable by instalments over a period of 20 years commencing 2 April 2003 at a fixed rate of interest of 7.01493%. 

## 15 Creditors: amounts falling due within one year 

|15|Creditors: amounts falling due within one year||||
|---|---|---|---|---|
||||2022|2021|
|||Notes|£|£|
||Bank loans|14|7,011|8,402|
||Other taxation and social security||2,466|12,243|
||Trade creditors||21,398|54,684|
||Other creditors||87|58|
||Deposits helds||74,251|67,002|
||Accruals and deferred income||28,186|5,363|
||||133,399|147,752|
|16|Creditors: amounts falling due after more than one year||||
||||2022|2021|
|||Notes|£|£|
||Bank loans|14|-|7,780|
|17|Provisions for liabilities||2022|2021|
||||£|£|
||Repayment ofCoronavirus Job Retention Scheme grant||||
||At 1 August 2020||-|17,682|
||Reversal ofprovision||-|(17,682)|
||Brazel judgment||||
||Provision for Brazel judgement on holiday pay for support staff||4,250|-|
||||4,250|17,682|



## 18 Legal status 

The Charity is a company limited by guarantee having no share capital. In the event of the winding up, each member agrees to contribute a sum not exceeding £1. The members of the Company are the School governors and include the directors named on page 4. There were four members at 31 July 2022. 

“D4 = 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

## 19 Retirement benefit schemes 

## Defined contribution schemes 

The School's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the NEST pension scheme for it's non teaching staff. 

Contributions of £2,466 were payable at 31 July 2022 (2021: £5,183). 

## (a) Teachers' Pension Scheme 

Introduction The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. 

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%. 

The 31 March 2016 valuation report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/ Sergeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to public service pensions including the Teachers’ Pensions. 

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the courts decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they became payable. 

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal's ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. The consultation closed to response on 19 August 2021 and the Government is currently analysing the responses. 

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

Until the cost cap mechanism review is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements. 

The employers pension costs paid to the TPS in the period amounted to £34,282 (2021: £28,298). 

## (b) NEST pension scheme 

The School also runs a defined contribution scheme for its non teaching staff. The employer's contribution was £6,068 (2021: £4,507) for the year. 

-22- 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

## 20 ~Restricted funds 

The income funds of the charity for the year included the following restricted funds: 

|||Movement|in funds||
|---|---|---|---|---|
||Balance at 1|Incoming|Resources|Balance at 31|
||August 2021|resources|expended|July 2022|
||£|E|£|£|
|Learning support|-|73,575|(73,575)|-|
|Meadowbrook|13,000|-|-|13,000|
|Europaisher Radiopodcast|9,446|6,375|(15,821)|-|
||22,446|79,950|(89,396)|13,000|



## The restricted funds arise as follows: 

Learning support - funds received solely to assist specific pupils. 

Meadowbrook - funding received from the Meadowbrook Trust to be used to improve the sports court. Europaisher Radiopodcast - funding received for students to participate in an European exchange programme. 

## 21 Analysis of net assets between funds 

||Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|
||funds|funds||funds|funds||
||2022|2022|2022|2021|2021|2021|
||£|£|£|£|£|£|
|Fund balances at 31|||||||
|July 2022 are|||||||
|represented by:|||||||
|Tangible assets|295,937|-|295,937|287,803|-|287,803|
|Current assets/(liabilities)|374,363|13,000|387,363|355,218|22,446|377,664|
|Long term liabilities|-|-|-|(7,780)|-|(7,780)|
|Provisions|(4,250)|-|(4,250)|-|-|-|
||666,050|13,000|679,050|635,241|22,446|657,687|



22 ~Related party transactions 

Transactions with related parties During the year the charity entered into no transactions with related parties (2021: none). 

moe 



## SANDS SCHOOL 

## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 

|23|Cash generated from operations||2022|2021|
|---|---|---|---|---|
||||£|£|
||Surplus/(deficit) forthe year||21,363|(63,252)|
||Adjustments for:||||
||Investment income recognised in statementoffinancial|activities|(82)|(145)|
||Foreign exchange differences||-|(1,238)|
||Depreciation and impairment oftangible fixed assets||6,901|6,791|
||Movements in working capital:||||
||(Increase)/decrease in debtors||(27,293)|148,079|
||(Decrease)/increase in creditors||(12,962)|52,611|
||(Decrease)/increase in provisions||4,250|(17,682)|
||Cash (absorbed by)/generated from operations||(7,823)|125,164|
|24|Analysis ofchanges in netfunds||||
|||At 1 August 2021|Cash flows|At 31 July 2022|
|||£|£|£|
||Cash at bank and in hand|457,095|(31,947)|425,148|
||Loans falling duewithin one year|(8,402)|1,391|(7,011)|
||Loans falling due aftermore than one year|(7,780)|7,780|-|
|||440,913|(22,776)|418,137|



-24-