Registered number: 00610514 Charity number: 307914
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Directors' Report and Financial Statements
For the Year Ended 31 August 2022
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Contents
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Directors and advisers | 1 |
| Directors' report | 2 - 8 |
| Independent auditors' report on the financial statements | 9 - 11 |
| Statement of financial activities | 12 |
| Balance sheet | 13 - 14 |
| Statement of cash flows | 15 |
| Notes to the financial statements | 16 - 33 |
BABINGTON HOUSE SCHOOL LIMITED (A company limited by guarantee)
Reference and Administrative Details of the Charity, its Directors and Advisers For the Year Ended 31 August 2022
| Directors | Ben Roberts, Trustee (appointed 4 November 2021) |
|---|---|
| James Wedgwood Frankish, Trustee (appointed 10 March 2022) | |
| Geoffrey Phillip Scotchbrook, Trustee (appointed 10 March 2022) | |
| Hayley Jane Porter-Aslet, Trustee | |
| Christopher Lloyd Turner, Trustee | |
| William James Magill, Trustee | |
| Mads Hannibal, Trustee | |
| Elizabeth Channon, Trustee | |
| Palin Goodley-Ozcan, Trustee (resigned 4 November 2021) | |
| Ashley Moss, Trustee (resigned 9 June 2022) | |
| Jonathan Bentley, Trustee (resigned 20 November 2021) | |
| Justin Turner, Trustee (resigned 4 November 2021) | |
| Kate Clarke, Trustee (resigned 10 March 2022) | |
| Company registered number 00610514 Charity registered number 307914 Registered office Babington House School Grange Drive Chislehurst Kent BR7 5ES Key Management Personnel Timothy Lello - Headteacher Paul Showell - Head of Seniors Sharon Best - Bursar Beth McDonald-Smith - Head of Preparatory Kate Edwards - Deputy Head of Preparatory Independent auditors Xeinadin Audit Limited Chartered Accountants Statutory Auditors 12 Conqueror Court Sittingbourne Kent ME10 5BH Bankers Barclays Bank PLC 7 High Street Chislehurst Kent |
Page 1
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Directors' Report For the Year Ended 31 August 2022
The Directors present their annual report together with the audited financial statements of the Babington House School Limited for the 1 September 2021 to 31 August 2022. The Annual report serves the purposes of both a Directors' report and a directors' report under company law. The Directors confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) as amended by Update Bulletin 1 (effective January 2015).
Objectives and activities
a. Policies and objectives
The object of the Company is the provision of education and associated facilities.
In setting objectives and planning for activities, the Directors have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Strategies for achieving objectives
The School's aims are set out in its Mission Statement:
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Striving for academic rigour in all areas and encouraging pupils to become confident and able to think for themselves.
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Promoting high standards of behaviour, dress and conduct, benefiting from small class sizes and a strong sense of community.
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A commitment to outstanding music, drama, sport and the arts in their broadest sense and offering a wide array of clubs, societies and extra curricular opportunities.
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Creating a learning environment which caters for the needs of each individual and ensures pupils develop new skills, broaden their knowledge and achieve their potential.
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Within a broad Christian context, the promotion of ideals of honesty, integrity, trust and respect.
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Cultivating a relationship between home and school that promotes mutual cooperation and support.
c. Activities undertaken to achieve objectives
In practice the objectives are achieved via the provision of co-educational day schooling for pupils from 3 years old until 18.
d. Social investment policies
Although Babington House is primarily a fee paying school, a number of scholarship awards are available to talented and bursary awards to disadvantaged children from the local community. The number of scholarship and bursary places is currently 47 (2021: 71) and scholarships and bursary provision paid for from School funds during the year under report amounted to £331,016 (2021: £482,694).
We are also very proud that the school offers a small number of full scholarships to Sixth Form pupils who had previously attended large state schools in deprived areas of SE London. These pupils join our community and make the most of the opportunities here, helping to create a vibrant and diverse community.
Working with a small group of local business people, The Headmaster helped to set up a scheme for some Babington Sixth Form pupils to receive funding through their university courses who would otherwise not be in a position to afford to go to the universities of their choice.
Page 2
BABINGTON HOUSE SCHOOL LIMITED (A company limited by guarantee)
Directors' Report (continued) For the Year Ended 31 August 2022
Objectives and activities (continued)
e. Facilities
The school facilities have been well maintained with a new classroom being completed in October 2021. There are plans to build a new classroom block to further enhance the specialist facilities of the school including science labs and 6th form areas. Planning permission is currently being sought through the local authority and it is hoped this building will be in place for 24/25.
Strategic report
Achievements and performance
a. Main achievements of the Charity
The school is one of the highest achieving schools in the London Borough of Bromley. The Board will seek to ensure that educational standards are upheld in line with the Mission Statement so that this position is maintained.
b. Key performance indicators
Though the school does not, of course, measure its success solely in terms of the academic performance of its pupils, the Board is pleased to report that this year's A Level examinations results published in 2021 were remarkable with 79% A - A and 92% A - B grades. Two thirds of our students achieved straight As and A* grades in all their subjects. At GCSE our results were equally impressive with 68% of students achieving 9-7 (7 being the equivalent of the old A Grade). Both A Level and GCSE grades were externally moderated by the examination boards this year and our recommendations (Centre Assessed Grades) were upheld.
We were extremely pleased that these pupils surpassed their expectations due to their hard work and the support they received at Babington. In fact, almost all the students achieved the grades they needed to go on to the universities of their choice. We currently have former pupils at Leeds (Maths), Kings London (Medicine), LSE (Economics), Edinburgh (English), Bristol (Economics), Southampton (Chemistry), Southampton (History), Bath (Physics), UCL (Mechanical Engineering), Birmingham (Dentistry), Birmingham (Pharmacy), Birmingham (Biomedical Science) and Brighton (Business).
We continue to forge strong links with the top universities and industry placements. For example, two pupils are currently on the prestigious degree internship at the major engineering company Thales. Thales will fund the degree course, pay them in excess of £20,000 a year and provide them with jobs at the end of their course. This came out of the work experience we arranged for them at Thales.
Lower down the school we achieved a 90% success rate in the external (Year 6) 11+ grammar school examinations in 2021.
Page 3
BABINGTON HOUSE SCHOOL LIMITED (A company limited by guarantee)
Directors' Report (continued) For the Year Ended 31 August 2022
Strategic report (continued)
Achievements and performance (continued)
c. Review of activities
Charities and community work
The school regularly sends Senior pupils to form part of the Bromley Youth Council, who make an important contribution to the democratic process in the Borough.
The school raises a considerable amount for various charities. These include: Bromley Food Bank, Pedal push for NSPCC, Ramble for BBC Children in Need, Children of the Mountain in Nepal and other fundraising events in the current news, such as the Australian Bush Fires Appeal. We were able to raise a considerable amount of money to install a playground for a school in one of the most deprived areas of Cape Town, South Africa and a group of Babington pupils were fortunate to visit this project last Summer where they met the South African Prime Minister who praised Babington House’s fundraising efforts for the Uthando Charity and awareness building campaign.
The Early Years have achieved Mayor of London’s Healthy Early Years London Award, this focuses on: learning, SEND provision, communication and language, health and well-being – all of the areas judged was heavily evidenced based.
Educational Trips and Outings
Because of the COVID pandemic the school has not been able to run educational trips and outings but recent residential trips before the pandemic included South Africa, Kenya, Sayers Croft, Bore Place, Weymouth and the regular ski trip to the Alps.
Drama Sport and co-curricular
Because of the restrictions placed upon us by the COVID pandemic we have enjoyed less drama and competitive sport than in most years, but we are still top of the Bromley Netball League in the Under 13, 14 and 16 levels. We have represented Kent in our Babington House Ski Team, the SE Region for Swimming and Athletics for the Nationals. The carol services and prize giving award ceremonies were well received by parents. We have enjoyed World Book Week, British Science Week and History Week as cross curricular initiatives. The very well-produced whole school drama productions prior to the pandemic included Alice in Wonderland, Seussical the Musical and A Midsummer Night’s Dream.
d. Factors relevant to achieve objectives
The school aims to enable its students to meet the challenges of the 21st Century and to create a learning environment which caters for the needs of each individual and promotes active learning and individual success.
The School was last inspected November 2016 in which the School was judged to be 'Excellent' in all areas of school life.
The School continues to encourage its pupils to develop a sense of social responsibility and an understanding of the plight of others less fortunate than themselves. Fund-raising schemes have enabled pupils to raise funds for nominated charities and good causes, and in so doing learn more about the activities of the charities and causes in question.
Page 4
BABINGTON HOUSE SCHOOL LIMITED (A company limited by guarantee)
Directors' Report (continued) For the Year Ended 31 August 2022
Strategic report (continued)
Achievements and performance (continued)
e. Fundraising activities and income generation
The School has had funds donated to it by the Babington House School Friends Association which is a voluntary group of parents who meet to organise social events to raise money for the School. Meetings are attended by members of the Senior Leadership Team. The charitable objectives of the BHSFA are as follows:
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To advance the education of pupils in the school in particular by developing effective relationships between the staff, parents and others associated with the school.
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Engaging in activities or providing facilities or equipment which support the school and advance the education of the pupils.
No complaints have been received in respect of fund-raising activities.
Financial review
a. Going concern
As noted below free reserves are in surplus at 31 August 2022, and the cash position is positive and future cash flow projections and budgets indicate that there is no material uncertainty in relation to going concern.
After making appropriate enquiries, the Directors have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
Reserves are held by the School to cope with unexpected events such as falls in income or exceptional items of expenditure. This is important to ensure the School has sufficient reserves while it takes remedial action if necessary, thereby creating stability.
Free reserves of the charity at 31 August 2022 were in surplus by £3,107,625 (2021: £2,584,773), however this includes a loan and a mortgage debt attached to the property of £2,487,856 (2021: £2,178,728) so free reserves excluding any secured balances amounted to a surplus of £619,769 (2021: £406,045). Included in this balance is the receipt of fees in advance which is accounted for as deferred income. There is no future cash flow associated with the receipt of advance fees, this along with the preparation of detailed budgets showing a positive cash flow enables the Trustees to conclude that there is no material uncertainty relating to going concern in this regard. Trustees aim to maintain at least three months of operational costs as cash balances which at 31 August 2022 would amount to £1,401,885 (2021: £1,341,471), the actual cash balance was £898,628 (2021: £739,599).
Page 5
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Directors' Report (continued) For the Year Ended 31 August 2022
c. Principal risks and uncertainties
In consultation with key management the Directors continue to keep the School's activities under review, particularly with regard to any major risks that may arise from time to time. It monitors the effectiveness of the system of internal control and other viable means, including insurance cover where appropriate, by which those risks already identified can be best mitigated. The Directors, Senior Leadership Team and all staff work hard to ensure the school maintains its high quality and holds firm to its core values. They also strive to make sure there is a whole school appreciation of the importance of pupil recruitment. There is also a culture of embracing change and diversification, where this is set to improve the school, such as;
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Selectivity and academic drive in general and the introduction of an 11+ entrance test.
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The school sets its own educational direction, tactics and strategic direction and is courageous in maintaining an outstanding provision which is professionally determined and rigorously maintained.
d. Principal funding
The principal funding source to enable the School to operate in its normal course of business remains the fees paid by parents. The School does not have any endowments.
e. Review of the year
During the year under review the School recorded a surplus of income over expenditure of £522,852 (2021: £176,486).
Structure, governance and management
a. Constitution
Babington House School Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
b. Methods of appointment or election of Directors
New Directors are recruited by approaching individuals whose area of expertise is considered will help the school pursue its endeavours. The school also seeks the active involvement of parents. After meeting existing Directors under the guidance of the Chairman, applicants are either accepted or rejected. Suitable induction training is arranged.
c. Organisational structure and decision-making policies
The Directors, with the help of the Headmaster, are responsible for the overall direction of the school. The running of the school is the responsibility of the Headmaster, with the help of his Senior Leadership Team.
d. Policies adopted for the induction and training of Directors
Suitable induction training is arranged for each new Director appointed.
Page 6
BABINGTON HOUSE SCHOOL LIMITED (A company limited by guarantee)
Directors' Report (continued) For the Year Ended 31 August 2022
Structure, governance and management (continued)
e. Pay policy for key management personnel
The Headmaster's pay and remuneration is set by the Chairman of the Governors, other Governors and advisors following appraisal. The rest of the Senior Leadership Team have their pay and remuneration recommended to the Pay Committee by the Headmaster following appraisals.
f. Related party relationships
There are relationships with some of the Directors who have children in attendance at the school. School fees are charged to these Directors in line with all pupils on an arm's length basis.
g. Financial risk management
The Directors have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Plans for future periods
The School looks to achieve a full roll and it currently has a waiting list in Nursery up to 2023, as well as waiting lists in several other year groups including Reception and Years 4, 5 and 6. The school created two year 7 forms in September 2019 to cater for the high demand for places.
Statement of Directors' responsibilities
The Directors (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Directors' report including the Strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Directors to prepare financial statements for each financial . Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Directors are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
Page 7
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Directors' Report (continued) For the Year Ended 31 August 2022
Disclosure of information to auditors
Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
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so far as that Director is aware, there is no relevant audit information of which the charity's auditors are unaware, and
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that Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The directors have appointed Xeinadin Audit Limited as auditor for the year ended 31 August 2022.
Approved by order of the members of the board of Directors and signed on their behalf by:
Christopher Lloyd Turner Director Date:
Page 8
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Independent Auditors' Report to the Members of Babington House School Limited
Opinion
We have audited the financial statements of Babington House School Limited (the 'charity') for the year ended 31 August 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council'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 Directors' 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 Directors with respect to going concern are described in the relevant sections of this report.
Page 9
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Independent Auditors' Report to the Members of Babington House School Limited (continued)
Other information
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Directors' Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Directors' Report and the Strategic Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our 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 Directors' Report including the Strategic Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Directors' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Directors' responsibilities statement, the Directors (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 Directors 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 Directors 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 Directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Page 10
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Independent Auditors' Report to the Members of Babington House School Limited (continued)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of an audit in accordance with ISAs (UK), exercise professional judgement and maintain professional scepticism through the audit. We also:
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Assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud may occur.
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Held discussions with the client regrading their policies and procedures on complience with laws and regulations.
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Held discussions with the client regarding their policies and procedures on fraud risks, including knowledge of any actual suspected or alleged fraud.
We consider the entity's controls effective in identifying fraud. We do not consider there to be significant difficulty in detecting irregularaties.
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 Auditors' report.
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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Alastair Crawford FCA (Senior statutory auditor)
for and on behalf of Xeinadin Audit Limited Chartered Accountants Statutory Auditors 12 Conqueror Court Sittingbourne Kent ME10 5BH
Date:
Page 11
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 August 2022
| Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Total income Expenditure on: Charitable activities 8 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ - 6,003,162 127,203 24 6,130,389 5,607,537 5,607,537 522,852 5,238,954 522,852 5,761,806 |
Total funds 2022 £ - 6,003,162 127,203 24 6,130,389 5,607,537 5,607,537 522,852 5,238,954 522,852 5,761,806 |
Total funds 2021 £ 60,382 5,395,350 101,588 564 |
|---|---|---|---|
| 5,557,884 | |||
| 5,381,398 | |||
| 5,381,398 | |||
| 176,486 | |||
| 5,062,468 176,486 |
|||
| 5,238,954 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 16 to 33 form part of these financial statements.
Page 12
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee) Registered number: 00610514
Balance Sheet As at 31 August 2022
| Note Fixed assets Tangible assets 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Total net assets |
224,381 898,628 1,123,009 (1,364,421) |
2022 £ 8,387,133 8,387,133 (241,412) 8,145,721 (2,383,915) 5,761,806 |
161,314 739,599 900,913 (1,199,089) |
2021 £ 7,646,620 7,646,620 (298,176) 7,348,444 (2,109,490) 5,238,954 |
|---|---|---|---|---|
Page 13
BABINGTON HOUSE SCHOOL LIMITED (A company limited by guarantee) Registered number: 00610514
Balance Sheet (continued) As at 31 August 2022
| Note Charity funds Unrestricted funds Designated funds 18 General funds 18 Total unrestricted funds 18 Total funds |
2,654,181 3,107,625 |
2022 £ 5,761,806 5,761,806 |
2,654,181 2,584,773 |
2021 £ 5,238,954 |
|---|---|---|---|---|
| 5,238,954 |
The Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Directors and signed on their behalf by:
Christopher Lloyd Turner
Director Date:
The notes on pages 16 to 33 form part of these financial statements.
Page 14
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Statement of Cash Flows For the Year Ended 31 August 2022
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Interest paid Repayments of borrowing New loans Repayments of finance leases Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 16 to 33 form part of these financial statements |
2022 £ 931,103 24 (1,000,888) (1,000,864) (74,199) (114,872) 424,000 (6,139) 228,790 159,029 739,599 898,628 |
2021 £ 731,562 564 (803,442) (802,878) (113,624) (2,096,510) 2,200,750 (23,428) (32,812) (104,128) 843,727 739,599 |
|---|---|---|
Page 15
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
1. General information
Babington House School Limited is a charitable company limited by guarantee and an exempt charity incorporated in England and Wales. The registered office is Babington House School, Grange Drive, Chislehurst, Kent, BR7 5ES. The principal activity of the charitable company is to provide education and associated facilities.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Babington House School Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
The Trustees assess whether the use of Going Concern is appropriate ie whether there are any material uncertainties relating to events or conditions that may cast significant doubt on the ability of the Charity to continue as a Going Concern.
The Trustees note that at the 31 August 2022 there are net current liabilities of £241,412. This position is due to the receipt of fees in advance which are included in creditors as deferred income. There is no future cash flow associated with the receipt in advance, this along with the preparation of detailed budgets showing a positive cash flow enables the Trustees to conclude that there is no material uncertainty relating to going concern in this regard.
The Trustees make this assessment for the period of at least one year from the date of approval of these financial statements and have concluded that the Charity has adequate resouces to continue in operational existence for the forseeable future and that there are no material uncertainties about the Charity’s ability to continue as a going concern, thus they have adopted the going concern accounting basis in preparing these financial statements.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 16
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
2. Accounting policies (continued)
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Tangible fixed assets and depreciation
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
- Freehold property 50 years straight line - Office equipment 25-33% straight line Assets under construction - not depreciated
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 17
BABINGTON HOUSE SCHOOL LIMITED (A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
2. Accounting policies (continued)
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.10 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 Finance leases and hire purchase
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Charity. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
2.12 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
The Charity is also a member of a multi-employer plan. Where it is not possible for the Charity to obtain sufficient information to enable it to account for the plan as a defined benefit plan, it accounts for the plan as a defined contribution plan.
2.13 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Directors in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Directors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 18
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
3. Income from donations and legacies
| Unrestricted funds 2022 £ Grants - Total 2021 60,382 4. Income from charitable activities Unrestricted funds 2022 £ Provision of Education 6,003,162 Total 2021 5,395,350 5. Income from other trading activities Income from fundraising events Unrestricted funds 2022 £ Other income 127,203 Total 2021 101,588 |
Total funds 2022 £ - 60,382 Total funds 2022 £ 6,003,162 5,395,350 Total funds 2022 £ 127,203 101,588 |
Total funds 2021 £ 60,382 |
|---|---|---|
| Total funds 2021 £ 5,395,350 |
||
| Total funds 2021 £ 101,588 |
||
Page 19
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
| 6. Investment income Unrestricted funds 2022 £ Interest receivable 24 Total 2021 564 7. School fees receivable Fees Less: Scholarships, bursaries and fee discounts 8. Analysis of expenditure on charitable activities Summary by fund type Unrestricted funds 2022 £ Provision of Education 5,607,537 Total 2021 5,381,398 |
Total funds 2022 £ 24 564 2022 £ 6,230,766 (520,796) 5,709,970 Total 2022 £ 5,607,537 5,381,398 |
Total funds 2021 £ 564 2021 £ 5,996,376 (639,973) 5,356,403 Total 2021 £ 5,381,398 |
|---|---|---|
Page 20
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
9. Analysis of expenditure by activities
| Provision of Education Total 2021 as restated |
Activities undertaken directly 2022 £ 3,210,387 2,999,604 |
Support costs 2022 £ 2,397,150 2,381,794 |
Total funds 2022 £ 5,607,537 5,381,398 |
As restated Total funds 2021 £ 5,381,398 |
|---|---|---|---|---|
Analysis of direct costs
| Staff costs Examination fees Education requisites School Trips Non-payroll staff costs Total 2021 as restated |
Provision of Education 2022 £ 3,029,161 11,447 96,394 51,412 21,973 3,210,387 2,999,604 |
Total funds 2022 £ 3,029,161 11,447 96,394 51,412 21,973 3,210,387 2,999,604 |
As restated Total funds 2021 £ 2,876,104 8,817 78,856 26,377 9,450 |
|---|---|---|---|
| 2,999,604 | |||
Page 21
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
9. Analysis of expenditure by activities (continued)
Analysis of support costs
| Staff costs Depreciation Legal & Professional Advertising Catering Utility charges Motor and travel Printing, postage and stationery Debt collection costs Staff training and recruitment Telephone Computer and IT Bad debt cost School activities Premises Insurance Interest Other Non - Payroll Staff Costs Governance costs Total 2021 as restated |
Provision of Education 2022 £ 705,467 260,375 28,605 67,927 305,811 40,083 50,870 103,087 21,834 104,934 17,425 136,002 (3,601) 97,526 261,229 39,703 74,199 46,396 25,733 13,545 2,397,150 2,381,794 |
Total funds 2022 £ 705,467 260,375 28,605 67,927 305,811 40,083 50,870 103,087 21,834 104,934 17,425 136,002 (3,601) 97,526 261,229 39,703 74,199 46,396 25,733 13,545 2,397,150 2,381,794 |
As restated Total funds 2021 £ 627,704 268,755 61,166 54,424 325,331 27,030 34,278 78,671 22,819 69,020 16,175 120,822 84,241 24,369 205,575 34,908 113,624 186,929 14,853 11,100 |
|---|---|---|---|
| 2,381,794 | |||
10. Auditors' remuneration
| As restated | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Fees payable to Xeinadin Audit Limited for the audit of the Charity's annual | ||
| accounts | 8,340 | 8,340 |
| Fees payable to Xeinadin Audit Limited and its associates in respect of: | ||
| All non-audit services not included above | 5,358 | 4,980 |
Page 22
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
11. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2022 £ 2,989,911 287,157 457,560 3,734,628 |
2021 £ 2,823,198 239,273 441,337 |
|---|---|---|
| 3,503,808 |
The average number of persons employed by the Charity during the year was as follows:
| Teaching staff Classroom support Administration |
2022 No. 49 43 18 110 |
2021 No. 53 25 34 |
|---|---|---|
| 112 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| In the band £60,001 - £70,000 | 1 | 1 |
| In the band £70,001 - £80,000 | 1 | 1 |
| In the band £100,001 - £110,000 | - | 1 |
| In the band £110,001 - £120,000 | 1 | - |
Key management personnel comprise the Senior Leadership Team. The total benefits received by key management personnel, including pension contributions, in the year was £412,713 (2021: £457,732).
12. Trustees' remuneration and expenses
During the year, no Directors received any remuneration or other benefits (2021 - £NIL) .
During the year ended 31 August 2022, no Director expenses have been incurred (2021 - £NIL) .
Page 23
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
13. Tangible fixed assets
| Cost or valuation At 1 September 2021 Additions Transfers between classes At 31 August 2022 Depreciation At 1 September 2021 Charge for the year At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 |
Freehold property £ 7,280,842 291,138 867,411 8,439,391 376,648 85,856 462,504 7,976,887 6,904,194 |
Office equipment £ 1,257,005 313,868 - 1,570,873 1,064,945 174,519 1,239,464 331,409 192,060 |
Assets Under Construction £ 550,366 395,882 (867,411) 78,837 - - - 78,837 550,366 |
Total £ 9,088,213 1,000,888 - |
|---|---|---|---|---|
| 10,089,101 | ||||
| 1,441,593 260,375 |
||||
| 1,701,968 | ||||
| 8,387,133 | ||||
| 7,646,620 |
Included in land and buildings is freehold land at deemed cost of £2,325,000 (2021 - £2,325,000), which is not depreciated.
Included within the net book value of Equipment is £Nil (2021 - £3,703) relating to assets held under hire purchase agreements. The depreciation charged in respect of these assets during the year was £3,703 (2021 - £22,221).
14. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income |
2022 £ 111,980 20,528 91,873 224,381 |
2021 £ 88,717 5,097 67,500 161,314 |
|---|---|---|
Page 24
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
15. Creditors: Amounts falling due within one year
| Bank loans Trade creditors Other taxation and social security Obligations under finance lease and hire purchase contracts Other creditors Accruals and deferred income Deferred income at 1 September 2021 Resources deferred during the year Amounts released from previous periods |
2022 £ 120,568 209,542 67,887 - 443,304 523,120 1,364,421 2022 £ 224,083 343,984 (207,466) 360,601 |
2021 £ 131,156 137,783 72,467 6,139 497,769 353,775 |
|---|---|---|
| 1,199,089 | ||
| 2021 £ 138,176 286,001 (200,094) |
||
| 224,083 |
Income has been deferred in respect of school fee income, extra curricular activity income and school trip income received relating to the next financial year.
16. Creditors: Amounts falling due after more than one year
| Bank loans Accruals and deferred income Included within the above are amounts falling due as follows: Between one and two years Bank loans Between two and five years Bank loans Over five years Bank loans |
2022 £ 2,367,288 16,627 2,383,915 2022 £ 142,060 439,408 1,785,820 |
2021 £ 2,047,572 61,918 |
|---|---|---|
| 2,109,490 | ||
| 2021 £ 137,503 |
||
| 434,164 | ||
| 1,475,905 |
Page 25
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:
| Payable or repayable other than by instalments | 2022 £ 1,785,820 1,785,820 |
2021 £ 1,475,905 |
|---|---|---|
| 1,475,905 |
The loan balance comprises two loans from Lloyds Bank Plc.
The first loan was taken out in June 2021. The loan is secured by a legal charge over the freehold land and buildings and by a debenture over the assets of the Charitable Company. The loan is repaid in monthly instalments with interest charged at 3.45% for 60 months, then 2.45% above base rate going forward. The loan is repayable in 15 years from the first drawdown.
The second loan was taken out in July 2022. The loan is secured by a legal charge over the freehold land and buildings and by a debenture over the assets of the Charitable Company. The loan is repaid in monthly instalments with interest charged at 2.45% above base rate. The loan is repayable in 15 years from the first drawdown.
17. Financial instruments
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Financial assets | ||
| Financial assets measured at fair value through income and expenditure | 898,628 | 739,599 |
Page 26
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
18. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds Designated Funds Building fund Old Babingtonians General funds General fund Total Unrestricted funds |
Balance at 1 September 2021 £ 2,149,814 447,094 57,273 2,654,181 2,584,773 5,238,954 |
Income £ - - - - 6,130,389 6,130,389 |
Expenditure £ - - - - (5,607,537) (5,607,537) |
Balance at 31 August 2022 £ 2,149,814 447,094 57,273 |
|---|---|---|---|---|
| 2,654,181 | ||||
| 3,107,625 | ||||
| 5,761,806 |
Designated funds represent amounts set aside for the upkeep and improvement of the school building.
Page 27
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
18. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds Designated Funds Building fund Old Babingtonians General funds General fund Total Unrestricted funds |
Balance at 1 September 2020 £ 2,149,814 583,106 - 2,732,920 2,329,548 5,062,468 |
Income £ - - 57,273 57,273 5,500,611 5,557,884 |
Expenditure £ - - - - (5,381,398) (5,381,398) |
Transfers in/out £ - (136,012) - (136,012) 136,012 - |
Balance at 31 August 2021 £ 2,149,814 447,094 57,273 |
|---|---|---|---|---|---|
| 2,654,181 | |||||
| 2,584,773 | |||||
| 5,238,954 |
19. Summary of funds
Summary of funds - current year
| Designated funds General funds |
Balance at 1 September 2021 £ 2,654,181 2,584,773 5,238,954 |
Income £ - 6,130,389 6,130,389 |
Expenditure £ - (5,607,537) (5,607,537) |
Balance at 31 August 2022 £ 2,654,181 3,107,625 |
|---|---|---|---|---|
| 5,761,806 |
Page 28
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
19. Summary of funds (continued)
Summary of funds - prior year
| Designated funds General funds |
Balance at 1 September 2020 £ 2,732,920 2,329,548 5,062,468 |
Income £ 57,273 5,500,611 5,557,884 |
Expenditure £ - (5,381,398) (5,381,398) |
Transfers in/out £ (136,012) 136,012 - |
Balance at 31 August 2021 £ 2,654,181 2,584,773 |
|---|---|---|---|---|---|
| 5,238,954 |
20. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 £ Tangible fixed assets 8,387,133 Current assets 1,123,009 Creditors due within one year (1,364,421) Creditors due in more than one year (2,383,915) Total 5,761,806 |
Total funds 2022 £ 8,387,133 1,123,009 (1,364,421) (2,383,915) |
|---|---|
| 5,761,806 |
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total |
Unrestricted funds 2021 £ 7,646,620 900,913 (1,199,089) (2,109,490) 5,238,954 |
Total funds 2021 £ 7,646,620 900,913 (1,199,089) (2,109,490) |
|---|---|---|
| 5,238,954 |
Page 29
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
21. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Interest paid Interest received Increase/(decrease) in creditors Decrease/(increase) in debtors Profit / (loss) on disposal of fixed assets Net cash provided by operating activities 22. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 23. Analysis of changes in net debt At 1 September 2021 £ Cash at bank and in hand 739,599 Debt due within 1 year (131,156) Debt due after 1 year (2,047,572) Finance leases (6,139) (1,445,268) |
2022 2021 £ £ 522,852 176,486 260,375 268,755 74,199 113,624 (24) (564) 136,768 14,224 (63,067) 158,514 - 523 931,103 731,562 2022 2021 £ £ 898,628 739,599 898,628 739,599 Cash flows At 31 August 2022 £ £ 159,029 898,628 10,588 (120,568) (319,716) (2,367,288) 6,139 - (143,960) (1,589,228) |
|---|---|
Page 30
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
24. Capital commitments
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Contracted for but not provided in these financial statements | ||
| Acquisition of tangible fixed assets | 9,799 | 335,651 |
25. Pension commitments
The Charity's employees belong to two principal pension schemes: the Teachers' Pension Scheme for England and Wales (TPS) for teaching and related staff which is a multi-employer defined benefit scheme, and; a Group Personal Pension Plan for other staff members, which is a defined contribution scheme.
The latest actuarial valuation of the TPS related to the period ended 31 March 2016.
Contributions amounting to £60,847 are payable to the schemes as at 31 August 2022 (2021 - £55,048) and are included within creditors.
Teachers' Pension Scheme
The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership.
Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.
The Teachers' Pension Budgeting and Valuation Account
Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go ‘basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.
The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.
Valuation of the Teachers' Pension Scheme
As a result of the latest scheme valuation employer contributions were increased in September 2019 from a rate of 16.4% to 23.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover administration expenses.
The next valuation is expected to take effect in 2023.
A copy of the latest valuation report can be found by following this link to the Teachers’ Pension Scheme website:https://www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuationreport.aspx
Page 31
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
25. Pension commitments (continued)
Scheme Changes
In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, rejected the Government’s application for permission to appeal the Court of Appeal’s ruling and subsequently referred the case to an Employment Tribunal to determine a remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination.
Since then, claims have also been lodged against the main public service schemes including the TPS. The Department has conceded those in line with the rest of the government. In July 2020 HM Treasury launched a 12-week public consultation which will provide evidence to support the delivery of an appropriate remedy for the affected schemes, including TPS.
A final remedy will be determined once the results of the consultation are established.
In December 2019, a further legal challenge was made against the TPS relating to an identified equalities issue whereby male survivors of opposite-sex marriages and civil partnerships are treated less favourably than survivors in same-sex marriages and civil partnerships. The Secretary of State for Education agreed not to defend the case. In June 2020, the Employment Tribunal recorded its findings in respect of the claimant. DfE is currently working to establish what changes are necessary to address this discrimination.
Any impact of these events will be taken into account when the next scheme valuation is implemented. This is scheduled to be implemented in April 2023, based on April 2020 data.
Defined contribution scheme
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £46,462 (2021 - £40,109) Amounts totaling £6,938 (2021 - £7,673) were payable to the fund at the balance sheet date and are included in creditors.
Page 32
BABINGTON HOUSE SCHOOL LIMITED
(A company limited by guarantee)
Notes to the Financial Statements For the Year Ended 31 August 2022
26. Operating lease commitments
At 31 August 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years |
2022 £ 16,700 16,685 33,385 |
As restated 2021 £ 29,083 33,385 |
|---|---|---|
| 62,468 |
27. Members' liability
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.
28. Related party transactions
Various Directors paid fees totalling £40,189 (2021: £37,155) to the charity as the parents of pupils attending the school. At the year end there were outstanding fees of £Nil (2021: £Nil). All fees are on arm's length terms.
During the year, expenditure amounting to £Nil (2021: £136,476) was paid to Gen2 Property Ltd, of which Hayley Jane Porter-Aslet is a Director, relating to project management fees regarding the building works in year. The balance outstanding at year end is £Nil (2021: £nil).
Page 33