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2021-08-31-accounts

COMPANY NUMBER: 485057 CHARITY NUMBER: 306316

Financial Statements

For the year ended 31 August 2021

Knighton House School Limited

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31st AUGUST 2021

INDEX
Governors, Officers and Advisers
Governors' Report
Statement of Financial Activities - Current Year
Statement of Financial Activities - Prior Year
Balance Sheet
Cash Flow Statement
Notes to the Financial Statements
Independent Examiners report		 PAGE
1 - 2
3 - 8
9
10
11
12
13 - 21
22

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31st AUGUST 2021

Page 1

GOVERNORS, DIRECTORS AND CHARITY TRUSTEES

The Governors of Knighton House School are the School’s charity trustees under charity law and the directors of the charitable company. The members of the Governing Body who served in office as Governors during the year and subsequently are detailed below

----- Start of picture text -----
(1) (2) (3) (4)
Mr P Slight (Co-Chair) •
Mr I Weatherby (Co-Chair) •
Mr J Grazebrook •
Mrs O Davies •
Mr S Davies Appointed 26th February 2021 •
Mr S Vincent Appointed 26th February 2021 •
----- End of picture text -----

(1)Finance and General Purposes Committee

(2)Education and Safeguarding Committee

(3)Health and Safety Committee

(4)Marketing Committee

During the year, the activities of the Governing Body were carried out through four committees. The membership of these committees is shown above for each Governor. All Governors attend Full Council meetings.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31st AUGUST 2021

Page 2

OFFICERS AND ADVISERS (currently and throughout the year)

OFFICERS

Acting Head: Mrs H Dominey Bursar/School Business Manager, Clerk to The Mrs J Twist Governors and Company Secretary: Principal address and Registered Office: Knighton House School Durweston Blandford Forum Dorset DT11 0PY Website: www.knightonhouse.co.uk ADVISERS Accountants: Lee Stokes FCA Haysmacintyre LLP 10 Queen Street Place EC4R 1AG Bankers: Lloyds Bank 1 High Street West Dorchester Dorset DT1 1UG Solicitors: Humphries Kirk LLP 40 High West Street Dorchester Dorset DT1 1UR

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31st AUGUST 2021 GOVERNORS REPORT

Page 3

The Governors present their annual report for the year ended 31 August 2021 under the Charities Act 2011 and the Companies Act 2006, together with the unaudited accounts for the year, and confirm that the latter comply with the requirements of the Acts, the Memorandum and Articles of Association and the Statement of Recommended Practice applicable to charities (SORP 2015) (Second edition, effective 1 January 2019).

The Governors confirm that they have complied with their duty under section 17 of the Charities Act 2011 to have due regard to the Charity Commission's guidance on public benefit.

REFERENCE AND ADMINISTRATIVE INFORMATION

Knighton House School Limited was incorporated in 1950 and is a company limited by guarantee. The school is a registered charity number 306316 and the company is registered in England and Wales, number 485057. The Governors of the School, who are also the trustees of the Charity, who served during the year are listed on page 1.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Charity is governed by its Memorandum and Articles of Association. The Governors conduct themselves as a board in accordance with the manual of good practice for the Governors of Independent Schools - Guidelines for Governors - issued by the Independent Schools Council.

Governing Body

The structure of the Charity consists of a governing body, the details of which are explained below. Governors are appointed for a term of three years and may then be re-elected.

Recruitment and Training of Governors

The members of the Governing Body are recruited by the Chair with assistance from other members of the Board. A balance of Members is maintained between those with an academic, pastoral, medical, property, financial and legal background. New Governors are inducted into the working of the Charity and its school including Board Policy and Procedures, by the Chairman of the Governors. Training is made available to all Governors either through the attendance on relevant courses and seminars or specific training run in school.

Governors may receive payment for out of pocket expenses, but are not otherwise remunerated.

Organisational Management

The Governors, as the trustees of the Charity, are legally responsible for the overall management and control and the general policy of the School, and meet at least three times a year. The day to day management of the school is delegated to the Head and the School Business Manager. The work to oversee the implementation of the Board's policies is carried out by the Finance and General Purpose Committee (F&GP) which meets termly before each meeting of the Full Governing Body. The F&GP carries out the detailed scrutiny of the accounts, budget, reports, proposals for expenditure, bursaries, risk management and other policy and makes recommendations for acceptance/amendment/ approval to the full Governing Body.

There are two Co-Chairs, Mr Paul Slight and Mr Iain Weatherby. The F&GP works under the chairmanship of Mr Paul Slight. The other principal sub-committees are the Marketing Committee chaired by Mr Iain Weatherby, the Health and Safety Committee chaired by Mrs Olivia Davies, and the Education and Safeguarding Committee chaired by Mr Iain Weatherby.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31st AUGUST 2021 GOVERNORS' REPORT (continued)

Page 4

Pay policy for senior staff

The pay of the senior staff is reviewed annually and normally increased in line with pay award levels in other schools of similar size.

Risk Management

Risks are identified, assessed and controls established throughout the year by the School Senior Management Team. A formal review of risk is carried out by the Governing Body each year. The Governing Body are satisfied that the major risks to which the charity is exposed are reviewed at least annually and systems have been established to mitigate these risks. Key controls used by the charity to mitigate against the identified risks are:

Principal Risks and Uncertainties

The Governors consider the economic turbulence of recent years and the affordability of fees by parents across the independent sector to be the principal risk faced by the school, the consequence of this is that we see falling pupil numbers and subsequently reduced fee income. The Governors see recruitment and pupil numbers as their top priority in the year ahead.

The board have taking a number of steps to reduce these risks, including;

STRATEGIC REPORT

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The Charity's objects, as set out in the Memorandum and Articles of Association, are to educate children up to the age of 13. The object is clearly for the public benefit. The School is also mindful of extending its charitable benefits to the wider community, through staff supporting teachers at the local state primary school and supporting local events and activities.

Aims and Intended Impact

The fundamental purpose of Knighton House is to provide excellence in all aspects of education for the children entrusted in our care. This is to be achieved through exemplary academic tuition and the development of skills, experience and enjoyment in a full range of sports and creative arts. A broad extracurricular programme benefits the pupils and gives opportunity for personal discovery and developing individual strengths. This is underpinned by excellent pastoral and moral care. The Charity aims to provide an environment where each pupil can develop and fulfil their potential, build competence and self-confidence, and learn and practise working with others so as to prepare them for the opportunities, responsibilities and experience of secondary education, and to inculcate a desire to contribute to the wider community. Governors believe that education is not one dimensional and that the broader preparation, pastoral care and personal development that Knighton gives to its pupils for their next school and for life is essential.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31st AUGUST 2021 GOVERNORS' REPORT (continued)

Page 5

Objectives for the Year

The Board's overarching objectives are unchanged: to ensure the continual improvement of academic performance and to further the rolling programme of education, organisational and infrastructure

The overarching objectives are underpinned by a series of enduring objectives which include:

Strategies to sustain performance against the enduring objectives

Principal activities of the year

The Charity continues to provide education for boys & girls from age 3 to 13 years with full, weekly and flexi boarding for pupils 7 to 13 years. During the year the school continued its development programme in support of educational and welfare priorities and to lay the foundations for further progress in the future. Due to the impact of Covid-19 and the subsequent requirement for children and staff to remain at home where possible, the development of an online educational provision became a priority.

Grant making policy and Public Benefit Considerations

This year the value of scholarships/bursaries and other awards was £502,638 (2020: £489,227). In line with that of other independent schools the School's policy is to award scholarships and other awards on the basis of the individual's educational potential informed by financial need. The policy for bursaries is to relieve hardship where the pupil's education and future prospects would otherwise be at risk. The awards range from 10% - 100% remission of fees.

Volunteers

The Friends of Knighton House (FOKH) continue to help with school fundraising. The FOKH are very active in the wider life of the school, supporting fund raising and encouraging new families.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31st AUGUST 2021 GOVERNORS' REPORT (continued)

Page 6

REVIEW OF ACHIEVEMENT AND PERFORMANCE FOR THE YEAR

Operational performance of the school

Pupil numbers remained stable averaging 94 pupils on roll. Pupil numbers have increased throughout the year with 98 enrolled by the end of the Summer Terms, and 101 pupils enrolled at the start of September 2021.

Curriculum development

The development of our own KED Curriculum and KED at Home continued, focusing on further developing the learning at home product prior to (and during) the second national lockdown period. In addition to this work was undertaken to develop the assessment process further. In January the first boys were welcomed into the Prep school following the decision to move to co-education across the school. Forest School was introduced as a enrichment opportunity furthering our outdoor education programme.

Academic Achievement

Our Alpha year achieved a record number of senior school scholarships, including Music scholarships to Wells Cathedral School, Bryanston and Clayesmore, Performing Arts to Bryanston and Clayesmore , Sport and Equestrian scholarships to Leweston and Clayesmore and Art scholarships to Milton Abbey and Clayesmore, a fantastic achievement from all the girls.

Boarding

Boarding numbers remained stable in the early part of the year with a small contingent of full boarders, due to Covid-19 boarding was not open to flexi-boarding during the Autumn term. The boarding house was then closed for the duration of lockdown but re-opened in the Summer term when in addition to the usual full boarding contingent a number of international students joined the boarding house as well as the whole Alpha year who chose to either flexi or full board during the term.

- Charitable Giving/out reach at Knighton

We have extended our charitable reach this year with Julia’s House (a local children’s hospice) being our chosen charity as well as supporting a number of local and national charities throughout the year.

The Booker Scholarship award continued to attract talented local children, with boys being invited to apply for the first time. Four boys and four girls, were given places based on their performance and potential to start at Knighton in September 2021 or sooner.

Sport/Riding

Within the confines of the Covid-19 regulations the children participated in inter-bubble matches during the early part of the year. Following lockdown and the easing of restrictions inter school athletic, rounders and cricket matches resumed seeing the first mixed teams being successfully fielded,

Riding continued to grow with an increasing number of riders. The riding team achieved some exceptional results both individually and as a team and continued to compete in the virtual environment during lockdown.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31st AUGUST 2021 GOVERNORS' REPORT (continued)

Page 7

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The loss of £1.361m has arisen for a number of reasons; reduced fee income that could not be offset by reducing the cost of running the school, sale of the Land and buildings to Bryanston School for the sum of £2.16m, which generated a book loss of £382,840. As a direct result of this sale the bank mortgage had to be cleared which resulted in an early settlement charge of £180,303.

Income was up by £41,753 on prior year, however for a second year running the impact of COVID19 has been devastating. Income has been lost partly due to fewer overseas pupils and fewer boarding pupils. The lettings income during the school in holidays has also been restricted. Total income is over £500K down from pre-covid levels.

GOING CONCERN AND POST BALANCE SHEET EVENTS

In September 2020, the school entered into a sale and leaseback agreement of its premises and land with Bryanston School, releasing internal capital whilst ensuring a sympathetic landlord and strong strategic ally to aid in the further development of the KED curriculum and outstanding offering to students at Knighton House.

In response to the unexpected 2nd and 3rd lockdowns, in June 2021 Knighton House announced its intention to merge with Bryanston School Incorporated, the merger was completed on 1 September 2021.

KEY MANAGEMENT

The Trustees determined that key management personnel (those having the authority and responsibility for planning, directing and controlling the school’s activities) are the Headmaster and the School Business Manager.

RESERVES POLICY

The Governors’ policy on the funding of reserves is based on the Charity Commission document CC19 and therefore recognises the need to build reserves in order to deal with adverse changes in the levels of income and expenditure in future years. The Charity does not currently carry free reserves, with the Balance Sheet showing a deficit. The net liabilities at 31 August 2021 were incorporated in the merger with Bryanston School on 1 September 2021.

INVESTMENT POLICY AND OBJECTIVES

These are set out in the Memorandum and Articles of Association, whereby the school may invest monies not immediately required for its purpose in or upon such investments, securities or property as may be thought fit.

FUTURE PLANS

Following the merger with Bryanston School on 1 September 2021, the Governors will continue to support the transition to and development of the combined School.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) FOR THE YEAR ENDED 31st AUGUST 2021 GOVERNORS' REPORT (continued)

Page 8

GOVERNOR RESPONSIBILITIES

The Governors, as trustees and directors of the company, are responsible for preparing the Governors' Report and accounts each financial year in accordance with applicable law and regulations and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice). The law applicable to charitable companies in England and Wales requires the trustees to prepare accounts each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing the accounts, the governors are required to:

  1. select suitable accounting policies and then apply them consistently;

  2. observe the methods and principles in the Charities SORP;

  3. make judgements and accounting estimates that are reasonable and prudent;

  4. state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the accounts;

  5. prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Governors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the position of the Charitable Company and enable them to ensure that the accounts comply with the Companies Act 2006 and 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.

Approved by the Board of Governors at its meeting on and signed on its behalf by:

………………………………… Paul Slight

Co-Chair of Governors

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31st AUGUST 2021

Page 9

Note
INCOME FROM:
Charitable activities
Fees receivable
2
Other income
3
Other trading activities
Property holiday lettings
Uniform shop sales
Investments
4
Bank and other interest
Rental income
Donations and legacies
Donations
5
Grant income
Government grants
6
Total Income
EXPENDITURE ON:
Trading Activities
School shop
Charitable activities
School Operating Costs
Loss on disposal of fixed assets
Total Expenditure
7-9
Net income/(expenditure) from operations
Net income/(expenditure) for the year
Transfers between funds
Net movement in funds
Total funds brought forward
16
Total funds carried forward
16		 Unrestricted
Fund
612,530
48
18,583
8,467
13
2,100
-
64,136
705,877
7,225
1,673,992
407,046
2,088,263
(1,789,433)
(1,382,386)
34,994
(1,347,392)
579,181
(£768,211)		 Restricted
Funds
-
-
-
-
-
-
21,009
21,009
-
-
-
-
21,009
21,009
(34,994)
(13,986)
107,009
£93,023		 Year to
31/08/2021
612,530
48
18,583
8,467
13
2,100
21,009
64,136
726,886
7,225
1,673,992
407,046
2,088,263
(1,768,424)
(1,361,378)
-
(1,361,378)
686,189
(£675,188)		 Year to
31/08/2020
557,974
734
4,261
6,905
52
2,275
281
112,649
685,133
4,657
1,402,820
-
1,407,476
(722,344)
(722,344)
-
(722,344)
1,408,533
£686,189

The notes on pages 13 to 20 form part of these accounts.

Page 10

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

INCOME FROM:
Charitable activities
Fees receivable
Other income
Other trading activities
Rental income
Property holiday lettings
Uniform shop sales
Investments
Bank and other interest
Donations and legacies
Donations
Grant income
Government grants
Total Income
EXPENDITURE ON:
Raising funds
Property holiday letting expenditure
School shop
Charitable activities
Teaching costs
Welfare
Premises
Support costs
Total Expenditure
Net income/(expenditure) from operations
Gains on the revaluation of fixed assets
Net income / (expenditure) for the year
Transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Fund
578,427
734
2,275
4,261
6,905
52
281
112,649
705,586
-
4,657
759,054
224,947
155,919
262,900
1,407,476
(701,891)
-
(701,891)
-
(701,891)
1,281,072
£579,181		 Restricted
Funds
(20,453)
-
-
-
-
-
-
(20,453)
-
-
-
-
-
-
-
(20,453)
-
(20,453)
-
(20,453)
127,461
£107,009		 Year to
31/08/2020
557,974
734
2,275
4,261
6,905
52
281
112,649
685,133
-
4,657
759,054
224,947
155,919
262,900
1,407,476
(722,344)
-
(722,344)
-
(722,344)
1,408,533
£686,189		 Year to
31/08/2019
1,078,101
1,906
3,500
44,736
7,439
72
108,675
-
1,244,429
8,848
6,235
753,595
288,991
189,473
295,750
1,542,892
(298,463)
-
(298,463)
-
(298,463)
1,706,996
£1,408,533

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) BALANCE SHEET AS AT 31st AUGUST 2021

Page 11

Note
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Stock
11
Debtors
12
Cash at bank and in hand
13
CREDITORS:
Amounts falling due within one year
14
NET CURRENT LIABILITIES
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS:
Amounts falling due after one year
15
NET ASSETS
CAPITAL AND RESERVES
Restricted Funds
16
Revaluation reserve
General funds
Unrestricted funds
16
TOTAL FUNDS
17		 2021
18,818
7,272
19,768
34,290
61,330
(581,643)
(520,314)
(501,496)
(173,693)
(£675,188)
93,023
-
(768,211)
(768,211)
(£675,188)		 2020
2,548,936
10,116
31,776
84
41,975
(1,726,189)
(1,684,213)
864,723
(178,533)
686,189
107,009
823,284
(244,103)
579,181
686,189

For the year ended 31 August 2021 the company was entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies;

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006,

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the special provisions relating to the small companies regime.

Approved by the Board of Governors on , and signed on its behalf by:

…………………………………..........................

Co-Chair of Governors

The notes on pages 13 to 20 form part of these accounts

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) CASH FLOW STATEMENT FOR THE YEAR ENDED 31st AUGUST 2021

Page 12

Note
2021
Net cash used in operating activities
a
(546,152)
Cash provided by/ (used in) investing activities
Proceeds from sale of property, plant & equipment
2,117,160
Purchase of property, plant & equipment
(7,971)
2,109,189
Cash provided by/ (used in) financing activities
Cash inflows from new borrowing
-
Overdraft
(419,129)
Repayment of loans
(919,552)
Interest paid
(190,150)
Net cash provided by (used in)
financing activities
(1,528,831)
CHANGE IN CASH AND CASH EQUIVALENTS
IN THE REPORTING PERIOD
b
£34,206
NOTES TO THE CASH FLOW STATEMENT
a. Reconciliation of net income/(expenditure)
with net cash flow from operating activities
2021
Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
(1,361,378)
Adjustments for:
Depreciation charges
13,883
Loss on disposal of assets
407,046
Interest on loans
190,150
Decrease in stock
2,844
Decrease in debtors
12,008
Increase/(decrease) in creditors
189,294
Net cash flow from operating activities
(£546,152)
Net cash flow from operating activities includes investment income as this forms part of the Charity's
operating income.
b. Analysis of cash and cash equivalents
At 01/09/20
Cashflows
Cash at bank and in hand
84
34,206
Overdraft
(419,129)
419,129
(419,045)
453,335
Debt due within one year
(938,712)
914,712
Debt due after one year
(178,533)
4,840
(£1,536,290)
£1,372,888		 20 20
(375,947)
-
360,283
£(15,664)
2020
(722,344)
14,736
-
42,951
1,200
64,673
222,838
(£375,947)
At 31/08/21
34,290
-
34,290
(24,000)
(173,693)
(£163,403)
-
-
50,000
379,242
(26,009)
(42,951)

The notes on pages 13 to 20 form part of these accounts

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st AUGUST 2021

Page 13

CHARITY INFORMATION

The school is a charitable company limited by guarantee, and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. At the Balance Sheet date there were 6 members (2020 : 4).

1. ACCOUNTING POLICIES

a. Basis of Preparation

The financial statements have been prepared on the historical cost basis of accounting, unless otherwise stated in the relevant notes, and in accordance with the Statement of Recommended Practice applicable to charities (SORP 2015) (Second edition, effective 1 January 2019), the Companies Act 2006, Charities Act 2011 and the accounting policies set out below.

b. Going Concern

In light of the losses in recent years, the Governors have been looking into opportunities for a sustainable long-term solution to the School's finances. With effect from 1 September 2021 the School merged with Bryanston School and the net liabilities were transferred into Bryanston School on that date. The accounts have therfore been prepared on a basis other than going goncern.

c. Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, the Governors are required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements.

d. School fees and similar earned income

Fees receivable and charges for services and use of the premises, less any allowances, scholarships, bursaries granted by the School against those fees, but including contributions received from restricted funds, are accounted for in the period in which the services are provided.

e. Investment income

Interest on bank balances is accounted for in the period in which the interest is earned.

f. Donations, legacies, grants and other voluntary income

Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

Voluntary income for the School’s general purposes is accounted for as unrestricted and is credited to the General Fund. Where through the terms of an appeal or from the donor there is a trust law restriction on the use of any voluntary income, the income is credited to the relevant restricted funds or endowment. Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption, or at the value to the School in the case of donated services or facilities.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (Cont'd) FOR THE YEAR ENDED 31st AUGUST 2021

Page 14

1. ACCOUNTING POLICIES (CONTINUED)

g. Expenditure

All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. All costs have been attributed to one of the functional categories of resources expended in the SOFA in accordance with its purpose. Certain expenditure is directly attributable to specific activities and other expenditure is apportioned on the basis of time spent on those activities. Support costs are the administrative costs incurred to enable the school to carry out its charitable activity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. Exceptional costs are charged to their normal expense category. The School is not registered for VAT and all costs include input VAT where this has been charged.

h. Tangible Fixed Assets

Depreciation is provided on all other tangible fixed assets in use at rates and bases calculated to write off the cost less the estimated residual value of each asset evenly over its expected useful life, as follows:

life, as follows:
Furniture and Fittings 10%
Equipment 10%
Motor Vehicles 20%
Computer Equipment 25%

Fixed Assets costing less than £1,000 are not capitalized. The values of fixed assets are reviewed annually for possible impairment.

i. Pension Costs

Retirement benefits to employees of the School are provided through two pension schemes, one defined benefit and one defined contribution. The pension costs charged in the Statement of Financial Activities are determined as follows:

j. Leases

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (Cont'd) FOR THE YEAR ENDED 31st AUGUST 2021

Page 15

1. ACCOUNTING POLICIES (CONTINUED)

k. Financial instruments

The school only holds basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

Financial assets held at amortised cost comprise cash at bank and in hand, together with all debtors other than prepayments and tax recoverable. A specific provision is made for any debts for which recoverability is in doubt. Prepayments are valued at the amount prepaid net of trade discount.

Financial liabilities held at amortised cost comprise all creditors, except social security and other taxes and fees received in advance.

Funds held by the charity fall into the following categories:

m. Stock

Stocks are stated at the lower of cost and net realisable value.

n. Government grants

Grant funding, including discretionary grants and the Government's Coronavirus Job Retention Scheme, are accounted for under the accrual model. These are considered revenue grants and are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

2. FEES RECEIVABLE

2. FEES RECEIVABLE
Net Pupils' fees
Pupils' extras
Gross pupil Fees
Remissions
Greenwood Bursaries
3. OTHER INCOME
Registration fees
Interest charged on debtors
4. UK INVESTMENT INCOME
Rental income
Bank interest
5. DONATIONS
Voluntary donations		 2021
581,462
31,068
£612,530
2021
1,122,373
505,916
34,994
£581,462
2021
48
-
£48
2021
2,100
13
£2,113
2021
21,009
£21,009		 2020
524,986
32,988
£557,974
2020
1,017,229
471,790
20,453
£524,986
2020
257
477
£734
2020
2,275
52
£2,327
2020
281
£281

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (Cont'd) FOR THE YEAR ENDED 31st AUGUST 2021

Page 16

6. GOVERNMENT GRANTS
Coronavirus Job Retention Scheme
Dorset County Council - COVID support grant
Apprenticeship Incentive Scheme
7. EXPENDITURE
Direct charitable expenditure includes:
Depreciation
Loss on disposal of assets
Interest payable
Management and administration expenditure includes:
Auditor's remuneration
-
for audit
-
for accountancy
-
for payroll
8. STAFF COSTS
Wages and salaries
Social security costs
Pension contributions
The average number of employees in the year was:
Teaching
Welfare
Premises
Administration
The number of employees whose emoluments exceeded £60,000 was:
£60,000 - £70,000		 2021
38,907
23,229
2,000
£64,136
2021
13,883
407,046
190,150
-
5,959
68
2021
910,026
71,184
116,908
£1,098,118
2021
29
12
1
6
48
1		 2020
105,149
7,500
-
£112,649
2020
14,736
-
42,951
6,600
2,160
2,428
2020
877,885
68,594
121,057
£1,067,537
2020
28
16
1
6
51
1

The School considers its key management personnel to be the Headmaster and School Business Manager, who were paid £107,612 (2020: £105,045) in the year. The Governors received no remuneration in either of these years.

PENSIONS

Unless they opt out, teaching staff belong to the Teachers’ Pension Scheme (TPS) which is operated by the Government for school teachers in England and Wales. In accordance with FRS102 the contributions have been accounted for as if this were a defined contribution scheme. During the year to 31 August 2021, the total contributions to the general fund were £150,341 (2020 - £158,152). Contributions totalling £113,073 (2020 - £64,799) were payable to the scheme at the year end.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers' Pension Scheme Regulations 2014. 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 following scheme valuations undertaken by the Government Actuary’s Department. The latest actuarial valuation of the TPS was prepared as at 31 March 2016 and the valuation report, which was published in March 2019, confirmed an employer contribution rate for the TPS of 23.6% from 1 September 2019. Previously the rate was 16.48% of pensionable salary. Employers are also required to pay a scheme administration levy of 0.08% giving a total contribution rate of 23.68%.

A defined contribution scheme operates for support staff, total contributions for the year were £13,626.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (Cont'd) FOR THE YEAR ENDED 31st AUGUST 2021

Page 17

9. ANALYSIS OF EXPENDITURE

ANALYSIS OF EXPENDITURE
Staffcosts
Raising funds
Holiday letting costs
-
School shop costs
-
-
Direct charitable expenditure
Teaching
742,172
Welfare
179,503
Premises
30,387
952,062
Support costs
School administration
146,056
Finance costs
-
Governance costs
-
146,056
TOTAL EXPENDITURE £1,098,118
GOVERNANCE COSTS
Auditors' remuneration: Audit
Other
Legal and professional fees
ANALYSIS OF EXPENDITURE
Staffcosts
Raising funds
Holiday letting costs
-
School shop costs
-
-
Direct charitable expenditure
Teaching
729,609
Welfare
187,173
Premises
34,459
951,241
Support costs
School administration
116,296
Finance costs
-
Governance costs
-
116,296
TOTAL EXPENDITURE £1,067,537
GOVERNANCE COSTS
Auditors' remuneration: Audit
Other
Legal and professional fees		 Othercosts
-
7,225
7,225
30,183
45,524
209,023
284,731
64,212
190,150
22,899
277,262
£569,217
Othercosts
-
4,657
4,657
23,885
37,775
114,884
176,543
76,392
42,951
24,661
144,004
£325,204		 Depreciation 2021
Total
-
7,225
7,225
777,060
225,028
245,987
1,248,075
212,868
190,150
22,899
425,917
£1,681,217
2021
-
6,027
16,872
£22,899
2020
Total
-
4,657
4,657
759,054
224,947
155,919
1,139,920
195,288
42,951
24,661
262,900
£1,407,476
2020
6,600
4,588
13,473
£24,661		 2020
Total
-
4,657
4,657
759,054
224,947
155,919
1,139,920
195,288
42,951
24,661
262,900
1,407,476
2020
6,600
4,588
13,473
£24,661
2019
Total
8,848
6,235
15,083
753,595
288,992
189,473
1,232,060
206,488
43,878
45,384
295,750
1,542,892
2019
5,100
4,686
35,598
£45,384
-
-
-
4,705
-
6,577
11,282
2,600
-
-
2,600
£13,882
Depreciation
-
-
-
5,559
-
6,577
12,136
2,600
-
-
2,600
£14,736

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (Cont'd) FOR THE YEAR ENDED 31st AUGUST 2021

Page 18

10. TANGIBLE FIXED ASSETS

11.
12.
13.
**14. **		 Land &
Plant &
Furniture
Computer
Motor
Buildings
Equipment
& Fittings
Equipment
Vehicles
COST
At 01/09/2020
2,500,000
160,324
149,955
149,757
13,000
Additions
-
-
-
7,971
-
Disposals
(2,500,000)
(138,946)
(143,689)
(148,581)
-
At 31/08/21
-
21,378
6,266
9,147
13,000
DEPRECIATION
At 01/09/2020
-
145,011
119,769
146,320
13,000
Charge for the year
-
3,136
5,622
5,124
-
Disposals
-
(135,556)
(122,885)
(148,570)
-
At 31/08/21
-
12,591
2,506
2,874
13,000
NET BOOK VALUE
At 31 August 2021
-
£
8,786
£
3,760
£
6,272
£
-
£
At 31 August 2020
2,500,000
£
15,313
£
30,186
£
3,437
£
-
£
STOCK
2021
Finished goods for re-sale
7,272
DEBTORS
2021
Fees and extras
15,346
Prepayments and accrued income
4,422
£19,768
CASH AT BANK AND IN HAND
2021
Bank current and deposit accounts
34,057
Cash in hand
233
£34,290
CREDITORS: Amounts falling due within one year
2021
Bank overdraft
-
Bank loans
10,000
Other loans
14,000
Trade creditors
4,312
Tax & social security
152,755
Accruals
95,458
Deferred income (fees and deposits received in advance)
71,101
Other creditors
234,017
£581,643
Movements on the deferred income account:
B/F
Released
Added
Fees
41,209
(41,209)
48,404
Deposits
24,440
(10,829)
9,086
65,649
(52,038)
57,490		 TOTAL
2,973,036
7,971
(2,931,217)
49,790
424,100
13,882
(407,011)
30,971
18,819
£
2,548,936
£
2020
10,116
2020
25,615
6,161
£31,776
2020
14
70
£84
2020
419,129
924,712
14,000
21,594
164,128
29,682
65,649
87,294
£1,726,189
Carried forward
48,404
22,697
71,101

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (Cont'd) FOR THE YEAR ENDED 31st AUGUST 2021

Page 19

15. CREDITORS: Amounts falling due after one year
Bounce Back Loan Scheme
Between one and two years
Between two and five years
After 5 years
Other loans
Between one and two years
Between two and five years
After 5 years
TOTAL		 2021
10,000
29,167
-
£39,167
14,000
42,000
78,526
£134,526
£173,693		 2020
10,000
30,000
8,334
48,334
14,000
42,000
74,200
130,200
£178,534

The bank loan is a 25 year fixed interest loan (4.57%pa), expiring May 2041, secured by a legal charge on the school’s freehold property. This loan was paid back in full in April 20020 upon sale of the building to Bryanston School incurring a early payment charge of £180,303 which has been recognised in the income statement.

The Coronavirus Bounce Back Loan Scheme is an unsecured fixed interest loan (2.5%pa) over 6 years. The first 12 months' interest will be covered by the UK Government's Business Interruption Payment. The Other loans are 10 year fixed interest loans (3%pa) secured against the school's balance sheet.

16. FUNDS

Jubilee Appeal
Old Knightonians
Jubilee Appeal
RESTRICTED FUNDS
Greenwood Bursary Fund
Greenwood Bursary Fund		 At 01/09/20
Income
Expenditure
Transfers
At 31/08/21
12,771
-
-
-
12,771
94,238
-
-
(34,994)
59,244
-
21,009
-
-
21,009
£107,009
£21,009
-
(34,994)
£93,023
At 01/09/19
Income
Expenditure
Transfers
At 31/08/20
12,771
-
-
-
12,771
114,690
-
(20,453)
-
94,238
£127,461
£0
(£20,453)
-
£107,009

The Jubilee Appeal is an 'All Rounder Appeal' and all funds raised will be directed towards five particular areas that typify the breadth of a Knighton House School education.

The donations to the Greenwood Bursary Fund are shown in the SOFA net of bursaries awarded and paid out in the year, as these are deducted from fee income and not shown separately. Greenwood Awards are offered to support pupils joining in Year 3 and 4.

The Old Knightonians held a auction in May 2021 and raised a sum of £21,009, these funds are to be awarded as Scholarships to pupils in the next school year.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (Cont'd) FOR THE YEAR ENDED 31st AUGUST 2021

Page 20

16. FUNDS (Cont'd)

UNRESTRICTED FUNDS
Revaluation reserve
General funds
Revaluation reserve
General funds		 At 01/09/20
Income
Expenditure
Transfers
At 31/08/21
823,284
-
-
(823,284)
-
(244,103)
705,877
(2,088,263)
858,278
(768,211)
£579,181
£705,877
(£2,088,263)
£34,994
(£768,211)
At 01/09/19
Income
Expenditure
Revaluation
At 31/08/20
823,284
-
-
823,284
457,788
705,585
(1,407,476)
-
(244,103)
£1,281,072
£705,585
(£1,407,476)
-
£579,181

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Tangible fixed assets
Net current assets
Long term liabilities
Tangible fixed assets
Net current assets
Long term liabilities		 2021
Unrestricted
Restricted
Total
Funds
Funds
Funds
18,818
-
18,818
(613,336)
93,023
(520,313)
(173,693)
-
(173,693)
(£768,211)
£93,023
(£675,188)
2020
Unrestricted
Restricted
Total
Funds
Funds
Funds
2,441,927
107,009
2,548,936
(1,684,213)
-
(1,684,213)
(178,533)
-
(178,533)
£579,181
£107,009
£686,189

18. OPERATING LEASES

At 31 August 2021 the School had future minimum lease payments under non-cancellable operating leases as follows:

Amounts due within one year 2021
2020
-
201
£0
£201
Equipment		 2021
2020
1,338
6,829
£1,338
£6,829
Motor Vehicles

The total amount charged as an expense during the year for operating leases was £5,945 (2020: £7,030).

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (Cont'd) FOR THE YEAR ENDED 31st AUGUST 2021

Page 21

19. CAPITAL COMMITMENTS and CONTINGENT LIABILITIES

As at 31 August 2021 there were no capital commitments (2020: £-)

20. RELATED PARTY TRANSACTIONS

During the current and previous year, no Governor received any remuneration or reimbursed expenses.

Three governors made loans to the school in 2018/19, totalling £95,000, which were outstanding at the year end. The loans are secured on the net assets of the School and attract interest at 3% per annum.

21. POST BALANCE SHEET EVENTS

On 1 September 2021 Knighton House School merged with Bryanston School Incorporated (Company registration number 226143, registered charity number 306210). As a result of the merger the net liabilities of Knighton House School have been incorporated in to the combined

22. COVID-19

During the academic year the school and country have felt the continued impact of the COVID-19 pandemic and the assorted measures put in place by Government to control its transmission through the population, including two further lock-downs in the Autumn and Spring of 2020 and 2021. While the school remained open to the children of key workers, it was otherwise closed for these periods and was substantially unable to benefit from the government furlough schemes as all teaching staff were required to remain on the payroll for either home schooling or onsite teaching for key workers children.

Fees were held at prior year levels to reflect the impact on normal school life for parents and pupils. In addition the usual overseas boarders and summer term visiting pupils from overseas were unable to travel to the UK, causing addition loss of revenue.

While most of the support staff were furloughed, the majority of the academic staff continued to work throughout the assorted lockdowns. CJRS grants were applied for, but despite the clear impact on the school from COVID-19 a CBILS loan was not forthcoming from the school’s bankers. However, the the school applied for, and received, a 'Bounce Back' loan to help with its cashflow.

The loss of revenue due to Covid-19 has been estimated to be approximately £500,000.

KNIGHTON HOUSE SCHOOL LIMITED (LIMITED BY GUARANTEE)

Page 22

INDEPENDANT EXAMINERS REPORT TO THE GOVENORS OF KNIGHTON HOUSE SCHOOL LIMITED FOR THE YEAR ENDED 31st AUGUST 2021

I report to the Governors on my examination of the accounts of Knighton House School Limited for the year ended 31 August 2021 which are set out on pages XX.

Respective responsibilities of trustees and examiner

The governors (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”). The governors are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination

Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the requirements of the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I can confirm that I am qualified to undertake the examination because I am a registered member of the Institute of Chartered Accountants in England and Wales which is one of the listed bodies

I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts 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 accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.

I 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 accounts to be reached. However I draw your attention to accounting policy 1b of the financial statements which describes the School’s merger and transfer of net liabilities to Bryanston School on 1 September 2021.

Lee Stokes FCA

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

26-May-22