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2021-08-31-accounts

REGISTERED COMPANY NUMBER: 00871641 (England and Wales) REGISTERED CHARITY NUMBER: 307330

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

FOR

WALHAMPTON SCHOOL TRUST LTD (A COMPANY LIMITED BY GUARANTEE)

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR

WALHAMPTON SCHOOL TRUST LTD

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

Page
Report of the Trustees 1 to 11
Report of the Independent Auditors 12 to 15
Statement of Financial Activities 16
Balance Sheet 17 to 18
Cash Flow Statement 19
Notes to the Cash Flow Statement 20
Notes to the Financial Statements 21 to 37
Detailed Statement of Financial Activities 38 to 39

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

INCORPORATION

Walhampton School Trust Limited is a charitable company, which was incorporated on 16 February 1966 and registered as a charity on 28 June 1966.

In 1997 Walhampton School merged with Hordle House School to form Hordle Walhampton School. The school’s name was changed to Walhampton in 2013, but we continue to celebrate both our Hordle House and Walhampton heritage.

OBJECTIVES AND ACTIVITIES

Mission and Objectives

The objectives of the company are set out in its Memorandum and Articles of Association. The primary objective is to provide a school for boys and girls, with education based on the Christian Faith.

The School’s motto is "Gaudete Laboribus Omnes": Let us all rejoice in our work.

Our mission, as a co-educational day and boarding school, is to:

Principal activities

The Governors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Walhampton’s principal activities continue to be the provision of day schooling for boys and girls from age 3 to 13, with boarding available to pupils from age 7 to 13.

Page 1

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

OBJECTIVES AND ACTIVITIES

Public benefit

The Governors, as the charity trustees, have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s published guidance concerning the provision of Public Benefit.

We consider that widening access to the opportunities that the School offers, via means-tested bursaries, is an important aspect of the Public Benefit that we provide. During the year 23 children were in receipt of assistance of up to 70% of fees (2020: 29 - 75%).

The charity recognises the extensive facilities that are enjoyed by our children and we encourage local schools, clubs and societies also to use and benefit from the school’s facilities. Restrictions due to COVID-19 meant that we were unable in the year to run our Perry Dalziell cross country event or invite schools to camp on the grounds. However, a number of local children's and adult's sports clubs were able to train at our grounds throughout the year at a heavily subsidised rate. In addition:

Wider benefits to the state and community Volunteers Policy

The School is very grateful to all our Governors who provide their service free of charge. As a charity we recognise the value in accepting volunteer help, but as a School we are mindful of our safeguarding duty to the children in our care. Therefore the School currently enjoys the help only of parents and guardians as volunteers on an ad-hoc basis.

Charitable fundraising

The School supported two main charities this year, with each of the four school Houses involved with various fundraising events through the year. The School is very proud to continue to support a school in Khe Nang in Northern Cambodia in partnership with United World Schools. We also support the Honeypot Children's Charity, which raises money to enhance the lives of young carers aged 5-12 years by providing respite breaks and support. The Walhampton Parents Association also actively supports the House charities as well as other charities during the year.

During the year, despite most of our fundraising activities being on hold due to COVID, one of our members of staff participated in a 36 hour radio marathon raising in excess of £25,000, which was split between the school in Khe Nang, Honeypot Children's Charity, and the School.

Maintenance of an Historic House and Grounds

We are justly proud of our Grade II listed buildings and beautiful grounds and we take seriously our responsibility to maintain and make them available for the enjoyment of the wider community. This involves an appropriate level of additional expenditure each year which is closely monitored.

Page 2

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

STRATEGIC REPORT

Achievement and performance

Operational performance of the school

The COVID-19 pandemic led to a second disrupted academic year for both pupils and staff, and on 4 January 2021, the School closed its physical site in line with Government Guidance to all pupils apart from those designated as children of Key Workers. The School enhanced its already excellent remote learning provision, and all pupils received a full timetable of blended learning, incorporating a mix of teaching methods including Zoom, Google Classroom and project work. The School came together with a singing project from years 3-8, and a whole school arts project to deliver a remote learning tree which is now proudly displayed in the School corridors.

The School reduced its fees by 10% for the Spring term for those learning at home, and by 5% for those learning in school. The school took advantage of the Government flexi-furlough scheme and furloughed a majority of staff for between 20-100% of their time while maintaining a high level of supervision and coordination of the remote learning programme, which was well regarded.

The average number of pupils during the year was 360 (2020 - 366) reflecting some diminution of numbers due to the uncertainties of the pandemic. The numbers of enquiries and registrations continue to be strong as Walhampton's reputation spreads.

Academic achievement

This year 18 senior school scholarships were awarded, including those in academic, sport, drama, art and music (2020 - 7). These awards were complemented by 100% success rate at Common Entrance. Standardised assessments show that our pupils are consistently “significantly above” the national average in English, Maths and Science.

Other areas of note include:

Music and Drama achievements

Music continues to be an integral part of the School with events, concerts and shows throughout the academic year. We continue to have links in the community with the Honeypot charity, for whom we perform in their annual Christmas concert in Romsey Abbey. We currently offer around 220 individual vocal and instrumental lessons each week, delivered by 11 full time and peripatetic music teachers, and pupils are entered for ABRSM, Trinity and Rockschool exams. These have continued remotely throughout the pandemic.

LAMDA has continued to grow and thrive at Walhampton. We currently have over 100 children enrolled from Year 4 - 8 and are undertaking either individual or paired lessons. The recent set of exam results yielded either high merits or distinctions. We have four current LAMDA focused teachers who each work either one or two days a week. Children continue to enjoy their lessons, which are now timetabled peripatetically and are rotated on a weekly basis so as to minimise formal curriculum time impact.

Page 3

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

STRATEGIC REPORT Achievement and performance

Sport

Sport at Walhampton remains an important part of our curriculum for boys and girls of all abilities. We offer a very wide range that includes horse riding, running clubs, tennis, golf, sailing, kayaking and fishing alongside competitive team sports.

In addition, our pupils have achieved representative honours in:

The School is committed to Sport For All and giving pupils of all abilities an experience and opportunity in all sports. Walhampton hosts the following tournaments/events each year:

Site development

Walhampton is very proud to have maintained our Green Flag Status, awarded by the Eco-Schools Foundation. This is the highest award given in recognition of our commitment to sustainability and eco awareness.

Page 4

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

STRATEGIC REPORT Financial review

Key performance indicators

The Governors are responsible for the setting and review of key performance indicators on the School's operations. This review is delegated to each sub-committee and then reported to the Board on a termly basis. The Education Committee reviews the curriculum and key performance in academic standards, assessment and testing results. The General Purposes Committee is responsible for reviewing staff, health and safety incidents as well as site maintenance/development. The Finance Committee reviews financial performance indicators including fee income, staff costs and parent debtors, in addition to termly management accounts. The Board annually reviews each sub-committee's Terms of Reference to ensure that relevant performance indicators are kept relevant to any changes within our Strategic Risk Register.

As mentioned above, for the second academic year running, the performance of the School has been affected by the restrictions arising from the COVID-19 pandemic. As a consequence of the closure of the School for part of the Spring Term the fees for all year groups were reduced by 10% for those that learnt at home, and 5% for those that attended on site. As a consequence fee income was reduced for this year but this has been offset by the Government's Coronavirus Job Retention Scheme. The school flexi-furloughed the majority of staff, whilst offering pupils a blended learning model which included online zoom classes, and work on google classrooms. This, alongside increased pupil numbers against budget and ongoing tight controls of costs and reduction in spending has allowed the School to end the year in a positive position, in line with its long-term plans for the school.

The school drew down a £350,000 Coronavirus Business Interruption Loan Scheme in September 2020 as a precaution to ensure availability of liquidity in the event of any further potential downside scenario as a result of the pandemic. The proceeds of the loan have been kept on deposit and have not been used.

The net movement in funds for the year amounted to a surplus of £82,844 (2020 - a deficit of £75,417). The School continues to examine its cost base in order to optimise the effectiveness of its operating model. The Governors' objective is that the School will have a strengthened financial model, aligned with the School’s Mission and Objective, in order to deliver sustainable surpluses over time.

Fees for the school year 2020/21 increased by 2.0% on average (2020: 6.0%). Fee income accounted for 88.4% of total income (2020 - 80.4%) which was £5,453,720 (2020 - £5,280,348).

As part of the overall financial plan, and due to limitations throughout the COVID pandemic, limited investment on capital assets has taken place. During the year £106,115 (2020 - £28,317) was spent on our investment in our buildings, grounds and equipment.

As Walhampton is a registered charity, parents have the assurance that all of the School’s income is used for educational purposes. The Governors view our bursary awards as important in helping to ensure that children from families who would otherwise not be able to afford the fees can gain access to the education we offer. Nevertheless, in funding our awards we are careful to ensure a balance between full fee-paying parents, many of whom make considerable personal sacrifices to pay for their child’s education, and those benefiting from the awards. During this spring term the school relaunched the Covid-19 Hardship Bursary Scheme to help a number of parents who were affected by the pandemic.

The closing level of restricted funds was £25,213 (2020 - £18,815) and unrestricted funds was £6,252,438 (2020: £6,175,992) including the designated fund, the net assets of the school being £6,277,651 (2020 - £6,194,807) at the year end.

Investment policy

The strategy for investments is that any surplus funds are held in high interest bearing UK accounts in order to earn an optimum rate of return whilst maintaining a low exposure to risk. Income from investments for the year was £1,196 (2020 - £nil).

Page 5

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

STRATEGIC REPORT Financial review

Reserves policy

The current level of the School's reserves is detailed in note 19 to the accounts.

Free reserves are defined by the Charity Commission as total funds less endowment, restricted and designated funds, pension reserves and unrestricted funds which could only be realised by disposing of tangible fixed assets. As at 31 August 2021 the School's unrestricted funds (excluding designated funds) stood at £6,196,853 (2020 - £6,120,407), of which £6,945,180 (2020 - £7,177,277) was represented by tangible fixed assets, leaving a deficit of free reserves of £748,327 (2020 deficit £1,056,870).

In assessing the viability of the School’s financial plan and strategies, the Governors consider a range of relevant indicators, including actual and forecast financial surplus and cash flow. The Governors believe that the School is able to operate with a deficit on free reserves, as detailed by the Charity Commission, provided the overall reserve position (i.e. including tangible fixed assets) remains positive and provided that forecast cash flows are sufficient to meet all anticipated requirements.

The Governors believe it desirable over the longer term that the School should move towards a positive free reserves balance through the retention of operating surpluses, where to do so is consistent with the needs of the School and with the Strategic Development Plan.

This policy will be monitored by the Finance Committee and reviewed annually.

Page 6

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

STRATEGIC REPORT

Principal risks and uncertainties

The Governors, with particular assistance from the Senior Leadership Team, the Education Committee, the General Purposes Committee and the Finance Committee, review the school’s current and planned future activities in the light of any major risks and the effectiveness of systems and procedures designed to manage them.

The principal risks currently facing the School, and the strategies for mitigating those risks, are summarised as follows:

A formal review of the charity’s risk management process is undertaken on an annual basis with final approval being given by the Board at their autumn term meeting including approval of the Strategic Risk Register. The key controls used are:

Future Developments

Although site development remains a key priority for Walhampton, there are no significant investments planned for the forthcoming year. There is a rolling maintenance program in place to ensure that our buildings and facilities are appropriately maintained and this continues to be a key priority.

The strategic aim remains for Walhampton to be one of the leading preparatory schools in the country. With our excellent staff, extensive grounds, fabulous facilities and ambitious plans we are well positioned to meet this aim.

Financial Effects of Significant Events

COVID-19 has been a significant influence in this reporting period, but the Governors are satisfied with the way this has been handled by the Leadership Team and all staff, together with the support of parents and pupils and that the financial result for the year appropriately reflects the outcome of these efforts in a very challenging environment. This is monitored closely by the Finance Committee.

Page 7

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing body

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

The Governors, who are also required under the Articles to serve as members of the Company, are elected by the Board at a full Governors’ Meeting having been nominated on the basis of their particular skills, experience, competence and availability.

Prospective Governors are required to complete a self-declaration confirming that they are not disqualified from being a charity trustee. Once elected Governors are required to complete an annual declaration of interests form in accordance with the School’s Conflict of Interest Policy.

Qualifying Third Party Indemnity Provisions

The Company has maintained throughout the financial year Directors’ liability insurance in respect of itself and its Directors. The cost in the year was £254 (2020 - £884).

Organisational Management

The school is controlled by the Board of Governors, which meets as a full Board three times a year to determine the general policy of the charitable company and to review its overall management and control. The following committees have been established under terms of reference approved by the Board: Education, General Purposes, Finance and Remuneration. The Education, General Purposes and Finance Committees meet termly and the minutes of these meetings are made available to all Board members. The Remuneration Committee normally meets during the summer term and its recommendations are presented orally to the Board.

The implementation of the Board’s policies and day-to-day running of the school is delegated to the Headmaster and the Bursar, as key management personnel, who are supported by other senior members of staff. The remuneration of the Headmaster and the Bursar is set by the Board following recommendations made by the Remuneration Committee in accordance with its terms of reference.

Group Structure and Relationships

Walhampton is a member of the Independent Association of Preparatory Schools (IAPS), the Independent Schools Bursars’ Association (ISBA) and the Boarding Schools Association (BSA).

The school co-operates with a number of local charities, schools and other organisations, as described in the Public Benefit section above. The aim of such cooperation is to widen access to the schooling that we provide, to optimise the educational use of our cultural and sporting facilities, and to awaken in our pupils an awareness of the wider social context of the education they receive at Walhampton.

We benefit from an active Walhampton Parents' Association, which arranges social events to help strengthen the School community and to raise funds to enhance our facilities. The school also benefits from a rapidly growing network of alumni from both Hordle House and Walhampton, whose support we greatly appreciate.

Trustee Training

New Governors are provided with an information pack on their appointment, giving details of the workings of the school, Board policy and procedures, and their obligations as a charity trustee. They are also invited to visit the school to meet with the Head, Bursar and other staff as appropriate, and to tour the School.

Governors are encouraged to visit the school regularly during their tenure, to observe lessons and to meet with staff and pupils. They also undergo formal training in a variety of ways including briefings during routine meetings and dissemination of written guidance documents.

Page 8

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 00871641 (England and Wales)

Registered Charity number

307330

Registered office

Main Road Lymington Hampshire SO41 5ZG

Trustees

Mr J E A Barnes Mrs H A M Cox (resigned 30.9.2020) Mrs K Host-Verbraak Mrs S J Keen Mrs H K Leavesley Mr C E Nicholson Mr L I Pearce Mr D I Rawlinson Mr D A Shakespeare Dr M Sopher Mrs C Trotter Mr M Winter

Mr D I Rawlinson is the Chair of the Board of Governors.

The members of the Education Committee are Mr J Barnes (Chair, from 1 January 2021) Mrs Kost-Verbraak (Chair, to 31 December 2020), Mrs H A M Cox (to 30 September 2020), Mr L I Pearce and Mr M J Winter.

The members of the Finance Committee are Mr D A Shakespeare (Chair), Mrs S J Keen and Mrs C Trotter.

The members of the General Purposes Committee are Mr C Nicholson (Chair), Mrs H Leavesley and Dr M Sopher.

KEY MANAGEMENT PERSONNEL

KEY MANAGEMENT PERSONNEL
Headmaster Mr T N Mills BA (Hons), PGCE (resigned 31 December 2020)
Head Mr J Timms (appointed 1 January 2021)
Interim Bursar and Company Secretary Mr S J Launchbury MA (fixed term expired 31 December 2020)
Bursar and Company Secretary Mrs N J Slowey, BSc (Hons), ACMA, MBA (appointed 1 January
2021)

Company Secretary

Mrs N J Slowey

Page 9

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

REFERENCE AND ADMINISTRATIVE DETAILS Auditors

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR

Professional Advisers

Bankers: Lloyds Bank PLC, 39 High Street, Lymington, SO41 9ZF

Solicitors: Moore Barlow LLP, The Oriel, Sydenham Road, Guildford, GU1 3SR

Previous Auditors: RSM UK Audit LLP, Highfield Court, Tollgate, Chandlers Ford, Eastleigh, SO53 3TY (Resigned 31st December 2020)

Insurance Brokers: Hettle Andrews & Associates Limited, 2 Brunswick Square, Birmingham B1 2LP (Appointed 1 September 2021)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Walhampton School Trust Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Hopper Williams & Bell Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Page 10

WALHAMPTON SCHOOL TRUST LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 13 November 2021 and signed on the board's behalf by:

Mr D I Rawlinson - Trustee

Page 11

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WALHAMPTON SCHOOL TRUST LTD

Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 12

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WALHAMPTON SCHOOL TRUST LTD

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

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

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

Page 13

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WALHAMPTON SCHOOL TRUST LTD

Our responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

Page 14

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WALHAMPTON SCHOOL TRUST LTD

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michaela Johns FCCA (Senior Statutory Auditor) for and on behalf of Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR

13 November 2021

Page 15

WALHAMPTON SCHOOL TRUST LTD

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
5
School fees
Other tuition services
Other income
Other trading activities
4
Total
EXPENDITURE ON
Raising funds
6
Charitable activities
7
School operating costs
Other
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
436
4,830,643
380,752
181,222
40,247
5,433,300
84,811
5,265,443
6,600
5,356,854
76,446
6,175,992
6,252,438		 Restricted
funds
£
20,420
-
-
-
-
20,420
-
14,022
-
14,022
6,398
18,815
25,213		 2021
Total
funds
£
20,856
4,830,643
380,752
181,222
40,247
5,453,720
84,811
5,279,465
6,600
5,370,876
82,844
6,194,807
6,277,651		 2020
Total
funds
£
26,405
4,293,678
374,126
546,021
40,118
5,280,348
84,047
5,267,685
4,033
5,355,765
(75,417)
6,270,224
6,194,807

The notes form part of these financial statements

Page 16

WALHAMPTON SCHOOL TRUST LTD

BALANCE SHEET 31 AUGUST 2021

Notes
FIXED ASSETS
Tangible assets
13
CURRENT ASSETS
Debtors
14
Cash at bank
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
16
NET ASSETS		 Unrestricted
funds
£
6,945,180
1,261,197
1,137,680
2,398,877
(2,452,311)
(53,434)
6,891,746
(639,308)
6,252,438		 Restricted
funds
£
-
-
25,213
25,213
-
25,213
25,213
-
25,213		 2021
Total
funds
£
6,945,180
1,261,197
1,162,893
2,424,090
(2,452,311)
(28,221)
6,916,959
(639,308)
6,277,651		 2020
Total
funds
£
7,177,277
1,350,318
368,459
1,718,777
(2,347,888)
(629,111)
6,548,166
(353,359)
6,194,807

The notes form part of these financial statements

continued...

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WALHAMPTON SCHOOL TRUST LTD

BALANCE SHEET - continued 31 AUGUST 2021

FUNDS
19
Unrestricted funds:
General fund
Revaluation Reserve
Desginated Fund
Restricted funds:
Houses
Sports relief
Anonymous donor
Other
TOTAL FUNDS		 2,993,570
3,203,283
55,585
6,252,438
4,622
248
13,167
7,176
25,213
6,277,651		 2,917,124
3,203,283
55,585
6,175,992
4,622
248
13,167
778
18,815
6,194,807

The financial statements were approved by the Board of Trustees and authorised for issue on 13 November 2021 and were signed on its behalf by:

Mr D I Rawlinson - Trustee

Mr D A Shakespeare - Trustee

The notes form part of these financial statements

Page 18

WALHAMPTON SCHOOL TRUST LTD

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Finance costs paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Loans issued
Net cash provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2021
£
555,949
(6,600)
549,349
(106,115)
1,200
(104,915)
350,000
350,000
794,434
368,459
1,162,893		 2020
£
250,071
(4,033)
246,038
(28,317)
2,389
(25,928)
-
-
220,110
148,349
368,459

The notes form part of these financial statements

Page 19

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Profit on disposal of fixed assets
Finance costs
Decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operations		 2021
£
82,844
337,747
(735)
6,600
89,120
40,373
555,949		 2020
£
(75,417)
390,006
-
4,033
57,450
(126,001)
250,071

2.

ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Debt
Debts falling due within 1 year
Debts falling due after 1 year
Total		 At 1.9.20
£
368,459
368,459
-
-
-
368,459		 Cash flow
£
794,434
794,434
(70,000)
(280,000)
(350,000)
444,434		 At 31.8.21
£
1,162,893
1,162,893
(70,000)
(280,000)
(350,000)
812,893

The notes form part of these financial statements

Page 20

WALHAMPTON SCHOOL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES

Charity information

Walhampton School Trust Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Main Road, Lymington, Hampshire, SO41 5ZG.

Basis of preparing the financial statements

These accounts have been prepared in accordance with FRS102 "The Financial Reporting standard applicable in the UK and Republic of Ireland" ("FRS102"), "Accounting and Reporting by Charities" the Statement of Recommended Practice for charities applying FRS102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS102.

The financial statements are prepared in sterling, which is the functional and presentational currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

Going Concern

At the time of approving the financial statements and despite the impact of COVID-19 the Governors have assessed the charity’s forecasts and plans for the coming twelve months. They have noted the financial handling of the School during this crisis and the support that parents have demonstrated during the period of lockdown. They have taken into consideration the financing in place including the Coronavirus Business Interruption Loan (CBILS) and the increased overdraft facility. The school, in conjunction with the bank, will review the overdraft facility when it is renewed in July 2021 and, dependent on circumstances at the time, take a decision to retain the overdraft at an increased level or, preferably, revert to the pre-pandemic level. In addition, they have noted the uplift in pupil numbers since the start of the September term.

They have concluded that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the governors continue to adopt the going concern basis of accounting in preparing the financial statements.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met or are fully within the control of the charity, there is sufficient certainty that receipt of the income is considered possible, and the amount can be measured reliably.

Donated services and facilities

Under the Charities SORP (FRS 102), donated services and facilities are calculated as value to the charity, instead of cost to the donor. Donations received for the general purposes of the company are credited to unrestricted funds. Donations subject to specific wishes of the donors are credited to restricted funds or to endowed funds where the amount is required to be held as permanent capital.

Income from charitable activities

Tuition fees are included within the Financial Statements on a receivable basis. Amounts invoiced in advance are deferred and carried forward within creditors, whilst amounts due but not yet received in the year are shown within debtors. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the company.

Fees received in advance of education to be provided in future years under an Advance Fee Payments Scheme contract are held until either taken to income in the term when used or else refunded.

Trading income, which includes letting, is accounted for on a receivable basis.

continued...

Page 21

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES - continued

Income

Interest income is accrued on a time-apportioned basis, by reference to the principal outstanding at the effective interest rate.

All income was generated in the UK.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

Coronavirus Job Retention Scheme: the accrual model has been used to recognise the grant on a systematic basis over the periods in which the related staff costs are incurred.

Business Interruption Payment (BIP) under the Coronavirus Business Interruption Loan: The BIP is payable in respect of the loan interest for the first 12 months, together with any related fees. The accrual model has been used to recognise the income on a systematic basis over the periods in which the related finance costs are incurred.

Expenditure

All expenditure is accounted for on an accruals basis. Expenditure is allocated to expense headings either on a direct cost basis, or apportioned to time spent, where it is not possible to directly attribute the expense.

Allocation of support costs

Support costs comprise of the costs of running the School, including strategic planning for its future development, also external audit fees, any legal advice for the board of governors and all costs of complying with constitutional and statutory requirements, such as the cost of governors meetings and of preparing statutory accounts and satisfying public accountability.

Charitable funds

General funds

General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the company and which have not been designated for any other purpose.

Designated funds

Included within designated funds is the JB & PL Bursary fund. Investments previously held by a separate connected charity, JB & PL Bursary Trust, were transferred to the school with the consent of the Charity Commission. The fund is to provide for future bursaries.

Restricted funds

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise where specified by the donor or when funds are raised for particular restricted purposes.

Fund transfers

Resources are transferred from Unrestricted Funds to Restricted Funds where expenditure meeting the criteria laid down by a donor of restricted income exceeds this income.

continued...

Page 22

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES - continued

Charitable funds

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

Tangible fixed assets

Tangible fixed assets are measured at cost (or deemed cost for land and buildings at the date of transition to FRS 102) less accumulated depreciation and any impairment losses.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the depreciable amount of each asset to its estimated residual value on a straight line basis over its expected useful life, as follows:

Freehold land and buildings - 1% to 10% on cost according to category
Fixtures and fittings - 5% and 25% on cost
Motor & maintenance equipment - 12.5% and 20% on cost

Freehold land is not depreciated.

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 net income/(expenditure) for the year.

Capital assets donated are capitalised in fixed assets and are included in income. Assets within a project are looked at in total and if the total is less than £250 they are not capitalised.

Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents

Cash and cash equivalents include cash in hand.

Taxation

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

continued...

Page 23

WALHAMPTON SCHOOL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES - continued

Taxation

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The Charity contributes to the Teacher’s Pension Scheme which is a defined benefit ‘final salary’ scheme for teaching staff. The scheme is administered by Teachers’ Pensions on behalf of the Department for Children, Schools and Families. The assets of the scheme are held separately from those of the school and the charity has applied the multi-employer exemption under FRS102 to account for the scheme as a defined contribution scheme.

The Charity has arranged a defined contribution scheme for staff who are not eligible to join the Teachers’ Pension Scheme. The pension costs charged represents the contributions payable by the School during the year in accordance with FRS102 in that contributions are charged to the SOFA account in the period in which they are due.

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.

Basic financial assets

Basic financial assets, which include 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.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

continued...

Page 24

WALHAMPTON SCHOOL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES - continued

Financial instruments

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank overdrafts 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Liabilities are recognised within the financial statements in respect of all expenditure for which the entity has a measurable obligation, be it constructive or legal, at the balance sheet date. Any expenditure which is committed to, but not measurable at this time, is disclosed within the notes to the financial statements as a contingent liability.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

continued...

Page 25

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Charity's accounting policies, the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Classification of leases

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to Walhampton School Trust Limited.

Bad debts

Trade debtors are reviewed on an annual basis to determine whether a bad debt provision should be made against any items. Only where the trustees consider recovery of a debt to be unlikely is a provision made.

Deemed cost of fixed assets

Upon transition of FRS 102 in the previous period, specific fixed assets were revalued to deemed costs based on assumptions made by a Property Consultant. The trustees are satisfied that the assumptions made were appropriate.

3. DONATIONS AND LEGACIES

Unrestricted
Restricted
funds
funds
£
£
Donations
436
20,420
OTHER TRADING ACTIVITIES
Unrestricted
Restricted
funds
funds
£
£
Other lettings income
32,280
-
Lettings income - external
7,967
-
40,247
-		 2021
Total
funds
£
20,856
2021
Total
funds
£
32,280
7,967
40,247		 2020
Total
funds
£
26,405
2020
Total
funds
£
31,283
8,835
40,118

4. OTHER TRADING ACTIVITIES

continued...

Page 26

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

5. INCOME FROM CHARITABLE ACTIVITIES

Activity
Gross fees less: bursary,
scholarship and other
allowances
School fees
Other tuition services
Other tuition services
Registration fees & retained
deposits
Other income
Grant income
Other income
Grants received, included in the above, are as follows:
Grant income
6.
RAISING FUNDS
Raising donations and legacies
Unrestricted
Restricted
funds
funds
£
£
Marketing
84,811
-
7.
CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
School operating costs
3,899,046		 2021
£
4,830,643
380,752
15,511
165,711
5,392,617
2021
£
165,711
2021
Total
funds
£
84,811
Support
costs (see
note 8)
£
1,380,419		 2020
£
4,293,678
374,126
83,404
462,617		 2020
£
4,293,678
374,126
83,404
462,617		 2020
£
4,293,678
374,126
83,404
462,617
5,213,825
2020
£
462,617
2020
Total
funds
£
84,047
Totals
£
5,279,465		 2020
£
462,617
2020
Total
funds
£
84,047

continued...

Page 27

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

8. SUPPORT COSTS

SUPPORT COSTS
Staff Governance
Other costs costs Totals
£ £ £ £
School operating costs 271,827 977,277 131,315 1,380,419

The charity identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs are apportioned between staff costs and general support.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

9. NET INCOME/(EXPENDITURE)

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

2021 2020
£ £
Auditors' remuneration 8,000 18,200
Depreciation - owned assets 337,747 390,006
Surplus on disposal of fixed assets (735) -

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

Trustees' expenses

Expenses of £nil were reimbursed during the year for no Governors (2020 - £327; one).

Other

During July and August 2021, one member of the Governing body undertook some consultancy support in Marketing following one member of the marketing team being diagnosed with cancer and sadly passing away during the Summer holidays. Permission was sought from the Charities Commission for the supply of this service to satisfy a clause in the School's Articles of Association. The total value of work undertaken during July and August was £2,800. The consultancy support will continue until such time the team has been recruited and is in place.

continued...

Page 28

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2021
£
2,906,938
261,031
393,180
3,561,149		 2020
£
3,143,973
273,398
425,931
3,843,302

The average monthly number of employees during the year was as follows:

Teaching
Administrative & domestic		 2021
64
31
95		 2020
69
33
102

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£140,001 - £150,000		 2021
4
-
4		 2020
3
1
4

Contributions were made into the Pension Schemes for the higher paid employees of £52,789 (2020: £63,974).

The total remuneration of key management personnel, who are noted on page 1 is £257,463 (2020: £445,873). The reason for this decrease is that the roles considered 'key management personnel' have changed from last year to this year (2021: 2 roles, 2020: 4 roles).

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
School fees
Other tuition services
Other income
Other trading activities
Total
EXPENDITURE ON
Raising funds		 Unrestricted
funds
£
6,407
4,293,678
374,126
546,021
40,118
5,260,350
84,047		 Restricted
funds
£
19,998
-
-
-
-
19,998
-		 Total
funds
£
26,405
4,293,678
374,126
546,021
40,118
5,280,348
84,047

continued...

Page 29

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
Charitable activities
School operating costs
5,266,502
Other
4,033
Total
5,354,582
NET INCOME/(EXPENDITURE)
(94,232)
RECONCILIATION OF FUNDS
Total funds brought forward
6,270,224
TOTAL FUNDS CARRIED FORWARD
6,175,992
13.
TANGIBLE FIXED ASSETS
Fixtures
Freehold
and
property
fittings
£
£
COST
At 1 September 2020
9,176,477
1,101,582
Additions
92,410
9,784
Disposals
-
-
At 31 August 2021
9,268,887
1,111,366
DEPRECIATION
At 1 September 2020
2,347,186
762,413
Charge for year
242,672
86,397
Eliminated on disposal
-
-
At 31 August 2021
2,589,858
848,810
NET BOOK VALUE
At 31 August 2021
6,679,029
262,556
At 31 August 2020
6,829,291
339,169		 12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
Charitable activities
School operating costs
5,266,502
Other
4,033
Total
5,354,582
NET INCOME/(EXPENDITURE)
(94,232)
RECONCILIATION OF FUNDS
Total funds brought forward
6,270,224
TOTAL FUNDS CARRIED FORWARD
6,175,992
13.
TANGIBLE FIXED ASSETS
Fixtures
Freehold
and
property
fittings
£
£
COST
At 1 September 2020
9,176,477
1,101,582
Additions
92,410
9,784
Disposals
-
-
At 31 August 2021
9,268,887
1,111,366
DEPRECIATION
At 1 September 2020
2,347,186
762,413
Charge for year
242,672
86,397
Eliminated on disposal
-
-
At 31 August 2021
2,589,858
848,810
NET BOOK VALUE
At 31 August 2021
6,679,029
262,556
At 31 August 2020
6,829,291
339,169		 - continued
Restricted
funds
£
1,183
-
1,183
18,815
-
18,815
Motor and
maintenance
equipment
£
228,793
3,921
(9,306)
223,408
219,976
8,678
(8,841)
219,813
3,595
8,817		 Total
funds
£
5,267,685
4,033
5,355,765
(75,417)
6,270,224
6,194,807
Totals
£
10,506,852
106,115
(9,306)
10,603,661
3,329,575
337,747
(8,841)
3,658,481
6,945,180
7,177,277

The net book value at 31 August 2021 represents fixed assets, which are all used for direct charitable purposes.

Land and buildings with a carrying amount of £584,019 as at 1 September 2014 were revalued at 31 August 2015 to £3,787,302 by Aitchison Raffety Property Consultants, independent valuers not connected with the charity on the basis of fair value, taken as deemed cost as part of the charity’s transition to FRS 102.

continued...

Page 30

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

13. TANGIBLE FIXED ASSETS - continued

The Governors decided to bring specific land and buildings to deemed cost representing their fair value as at 31 August 2015. There was no material difference to the value at transition at 1 September 2014. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

At 31 August 2020, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £409,756 (2020 - £448,100).

The Governors are of the opinion that the open market value of the freehold land and buildings exceed its book value, and the Governors believe there is no need for an impairment of the freehold land and buildings.

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
1,213,929
305
46,963
1,261,197		 2020
£
1,284,747
7,865
57,706
1,350,318

During the year, the School increased the provision for bad debt to £65,000 (2020 - £40,000).

During the year, the School released provisions for bad debt of £nil (2020 - £nil) to the Statement of Financial Activities. The total value of debtors written off in the year is £25,000 (2020 - £nil).

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts (see note 17)
Trade creditors
Social security and other taxes
Other creditors		 2021
£
70,000
56,418
66,681
2,259,212
2,452,311		 2020
£
-
52,549
84,024
2,211,315
2,347,888

continued...

Page 31

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 17)
Other creditors		 2021
£
280,000
359,308
639,308		 2020
£
-
353,359
353,359

The advanced payments of fees received have been set against future tuition fees. The advanced fees form part of the general funds of the charity.

The School operates an advanced payment of fees scheme whereby parents can enter into a contract to pay the School a lump sum to be used towards future years' tuition. Assuming pupils remain at the School, the advance fees will be applied as follows:

2021 2020
Within one year £197,440 £280,309
Within one to two years £104,729 £137,675
Within two to five years £215,169 £195,810
After five years £39,410 £19,874
Total £556,748 £633,668

17. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years		 2021
£
70,000
70,000
210,000		 2020
£
-
-
-

continued...

Page 32

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Revaluation Reserve
Desginated Fund
Restricted funds
Houses
Sports relief
Anonymous donor
Other
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Other
TOTAL FUNDS		 At 1.9.20
£
2,917,124
3,203,283
55,585
6,175,992
4,622
248
13,167
778
18,815
6,194,807
Incoming
resources
£
5,433,300
20,420
5,453,720		 2021
£
18,491
42,841
61,332
Net
movement
in funds
£
76,446
-
-
76,446
-
-
-
6,398
6,398
82,844
Resources
expended
£
(5,356,854)
(14,022)
(5,370,876)		 2020
£
31,634
11,547
43,181
At
31.8.21
£
2,993,570
3,203,283
55,585
6,252,438
4,622
248
13,167
7,176
25,213
6,277,651
Movement
in funds
£
76,446
6,398
82,844

19. MOVEMENT IN FUNDS

continued...

Page 33

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement At
At 1.9.19 in funds 31.8.20
£ £ £
Unrestricted funds
General fund 3,011,356 (94,232) 2,917,124
Revaluation Reserve 3,203,283 - 3,203,283
Desginated Fund 55,585 - 55,585
6,270,224 (94,232) 6,175,992
Restricted funds
Houses - 4,622 4,622
Sports relief - 248 248
Anonymous donor - 13,167 13,167
Other - 778 778
- 18,815 18,815
TOTAL FUNDS 6,270,224 (75,417) 6,194,807
Comparative net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 5,260,350 (5,354,582) (94,232)
Restricted funds
Houses 4,622 - 4,622
Sports relief 248 - 248
Anonymous donor 13,167 - 13,167
Other 1,961 (1,183) 778
19,998 (1,183) 18,815
TOTAL FUNDS 5,280,348 (5,355,765) (75,417)

continued...

Page 34

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

19. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Revaluation Reserve
Desginated Fund
Restricted funds
Houses
Sports relief
Anonymous donor
Other
TOTAL FUNDS
A current year 12 months and prior year 12 months combined
are as follows:
Unrestricted funds
General fund
Restricted funds
Houses
Sports relief
Anonymous donor
Other
TOTAL FUNDS		 Net
movement
At
At 1.9.19
in funds
31.8.21
£
£
£
3,011,356
(17,786)
2,993,570
3,203,283
-
3,203,283
55,585
-
55,585
6,270,224
(17,786)
6,252,438
-
4,622
4,622
-
248
248
-
13,167
13,167
-
7,176
7,176
-
25,213
25,213
6,270,224
7,427
6,277,651
net movement in funds, included in the abo
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
10,693,650
(10,711,436)
(17,786)
4,622
-
4,622
248
-
248
13,167
-
13,167
22,381
(15,205)
7,176
40,418
(15,205)
25,213
10,734,068
(10,726,641)
7,427

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

Restricted funds

The school gratefully received £20,420 (2020: £19,998) from various donors for various causes such as funds for the child therapy room, Walhampton sports vests, Cambodia School and Murray Parish Charity.

Unrestricted funds

The designated fund is income set aside to provide for future Bursaries. Some expenditure from this fund is likely to be incurred in the next financial year.

continued...

Page 35

WALHAMPTON SCHOOL TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

20. RELATED PARTY DISCLOSURES

Information on related party transactions is in Note 10 of the accounts.

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the governors as shown in the report of the Governing Body.

22. COMPANY STATUS

The School is a company limited by guarantee. In the event of the company being wound up, the members’ liability is limited to £1 each. There are 12 members (2020 - 12).

23. RETIREMENT BENEFIT SCHEMES

The School participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £343,824 (2020: £375,225) and at the year-end £41,066 (2020 - £42,966) was accrued in respect of contributions to this scheme.

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/Sargeant 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 Court’s 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. A consultation was launched by the government on 16 July 2020 and closed to responses on 11 October 2020.

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 the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

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.

continued...

Page 36

WALHAMPTON SCHOOL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

23. RETIREMENT BENEFIT SCHEMES - continued

Until the consultation and the cost cap mechanism review are 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.

During the Summer of 2021, the School entered into a period of consultation with a view to leaving the Teachers Pension Scheme. On 19th June 2021, the Governing Body agreed to leave the Pensions Scheme as at 31 December 2021, and offer teaching staff a Defined Contribution Scheme with Royal London. The contributions offered were 17% Employer contribution and a 5% employee contribution.

Support Staff Pension Fund

The School operates the following schemes for non-teaching staff:

The IAPS Pension Scheme which is a defined contribution scheme; the school contributes up to 7% of salary and the employees contribute no less than 2% of salary. Total employer contributions for the year were £26,455 (2020 - £37,284). Total contributions outstanding at 31 August 2021 amounted to £4,523 (2020 - £6,211).

On 1 August 2014 the School also entered into The People’s Pension Scheme in response to the new requirement to enrol eligible employees automatically. It is a defined contribution scheme, with both employee and employer currently contributing 1% of salary, as required by the legislation. Total employer contributions for the year were £22,067 (2020 - £12,631). Total contributions outstanding at 31 August 2020 amounted to £4,585 (2020 - £2,767).

Page 37

WALHAMPTON SCHOOL TRUST LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
funds
£
INCOME AND ENDOWMENTS
Donations and legacies
Donations
436
Other trading activities
Other lettings income
32,280
Lettings income - external
7,967
40,247
Charitable activities
Gross fees less: bursary, scholarship and other
allowances
4,830,643
Other tuition services
380,752
Registration fees & retained deposits
15,511
Grant income
165,711
5,392,617
Total incoming resources
5,433,300
EXPENDITURE
Raising donations and legacies
Marketing
84,811
Charitable activities
Wages
2,067,270
Social security
172,778
Pensions
343,824
Other costs
977,425
Depreciation
337,749
3,899,046
Other
Financing costs
6,600
Support costs
Other
General support
258,540
Carried forward
258,540		 Restricted
funds
£
20,420
-
-
-
-
-
-
-
-
20,420
-
-
-
-
-
-
-
-
14,022
14,022		 2021
Total
funds
£
20,856
32,280
7,967
40,247
4,830,643
380,752
15,511
165,711
5,392,617
5,453,720
84,811
2,067,270
172,778
343,824
977,425
337,749
3,899,046
6,600
272,562
272,562		 2020
Total
funds
£
26,405
31,283
8,835
40,118
4,293,678
374,126
83,404
462,617
5,213,825
5,280,348
84,047
2,790,690
273,398
425,931
768,010
390,006
4,648,035
4,033
219,579
219,579

This page does not form part of the statutory financial statements

Page 38

WALHAMPTON SCHOOL TRUST LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

2021 2020
Unrestricted Restricted Total Total
funds funds funds funds
£ £ £ £
Other
Brought forward 258,540 14,022 272,562 219,579
Loss on sale of tangible fixed assets (735) - (735) -
257,805 14,022 271,827 219,579
Staff costs
Wages 839,668 - 839,668 353,283
Social security 88,253 - 88,253 -
Pensions 49,356 - 49,356 -
977,277 - 977,277 353,283
Governance costs
Auditors' remuneration 8,000 - 8,000 18,200
Accountancy fees 3,100 - 3,100 4,000
Legal and professional fees 119,961 - 119,961 23,376
Governors' liability insurance 254 - 254 885
Governors' expenses reimbursed - - - 327
131,315 - 131,315 46,788
Total resources expended 5,356,854 14,022 5,370,876 5,355,765
Net (expenditure)/income 76,446 6,398 82,844 (75,417)

This page does not form part of the statutory financial statements

Page 39