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2021-08-31-accounts

Company Registration No. 00556463 Registered Charity No. 309086

GOVERNORS’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 FOR

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE)

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 KEY EXECUTIVES AND PROFESSIONAL ADVISORS FOR THE YEAR ENDED 31 AUGUST 2021

Key executives and Professional Advisors

HEADMISTRESS: Ms S Wilson

BURSAR: Mrs R Frier SENIOR LEADERSHIP TEAM: Mrs R Whitton Deputy Head (Pastoral and Boarding Mr D Mitchell Deputy Head (Academics) Mr J Hart Assistant Head (Sixth Form) Miss W Reynolds Assistant Head (Co-curricular and Operations) Ms A Morgan Director of Marketing and Admissions Mrs E Boryer Director of Development BANKERS: Barclays Bank Plc 19 High Street Ascot Berkshire SL5 7LB SOLICITORS: Veale Wasbrough Vizards Orchard Court Orchard Lane Bristol BS1 5WS AUDITORS: Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD COMPANY SECRETARY: Mrs R Frier REGISTERED OFFICE: Heathfield School London Road Ascot Berks SL5 8BQ

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The Governors present their annual report for the year ended 31 August 2021 under the Companies Act 2006, together with the audited accounts for the year, and confirms that the latter comply with the requirements of the Act, the memorandum and articles of association and the Charities SORP 2015.

REFERENCE AND ADMINISTRATIVE INFORMATION

The School was founded in 1899 and became a Charity in 1955 and is registered with the Charity Commission under Charity number 309086. The School is also a company limited by guarantee registered number 556463 (England and Wales). The Trustees of the charity are also Directors of the company and are referred to as Governors in this Report. The Governors are listed below and the executive officers, professional advisors and principal addresses of the Charity are listed on page 1.

Principal activities of the year

The School provides education in Ascot for girls from the ages of 11 to 18, and also runs a summer school for local and overseas students.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.

Governors

The members of the Governing Body are detailed below. The Governing Body is self-appointing. Each Governor is elected for three years and retiring Governors are able to stand for re-election. The number of serving Governors shall not be fewer than ten or exceed twenty.

Organisational Management

The School's Governors, who are also the Charity Trustees and the Company Directors, are legally responsible for the overall management and control of the School and meet at least three times a year. The work of implementing most of their policies is carried out by the members of the five following subcommittees: Finance, Buildings & Development, Educational, Pastoral and Compliance, Marketing, Admissions & Communications and Nominations which meet at regular intervals during the year.

The day-to-day running of the school is delegated to the Headmistress, supported by the senior management team, together with the Bursar. The Headmistress and the Bursar attend meetings of the above committees.

At the date of approval of the financial statements the School Governors are as follows:

Name Position
Mr Tom Cross Brown Chair of the Council, Chair N
Bishop Jonathan Baker EPC
Mrs Sally-Anne Barrett (resigned 12 November 2021) F
The Revd Canon Dr Philip Ursell
Mr Guy Egerton-Smith Chair BD, F
Mr Robert Gregory N
Hon Mrs Frances Stanley Chair MAC
Mrs Sally Tulk-Hart MAC, EPC
Mrs Elizabeth Laybourn (resigned 24 May 2021)
EPC
Miss Charlotte Faber Chair of EPC
Mr Steve Melcher Chair of F

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

Name Position

Mrs Karen Hurt (appointed 25 March 2021) Mrs Anne Lynch (appointed 12 November 2021) EPC Mrs Suzie Cullen (appointed 12 November 2021) MAC Mrs Annabelle More O’Ferrall (appointed 22 March 2022) EPC

Key:

Buildings & Development Sub-committee = BD Marketing, Admissions & Communications Sub-committee = MAC Nominations Sub-committee = N

Education, Pastoral & Compliance Sub-committee = EPC Finance Sub-committee = F

Recruitment and Training of Governors

Potential Governors are identified by members of the Governing Body which seeks to achieve a balance of experience and background in secondary education, finance, business, law, facilities & property management, human resources management, marketing & PR and health & safety compliance. New candidates tour the School and meet the Headmistress and other existing Governors. They are proposed by the Nominations Committee. Once appointed, new Governors are inducted into the workings of the School including Board Policy and Procedures. Training is regularly offered to all Governors on various topics including child protection and safeguarding training. Governors are encouraged to attend external seminars and course to keep them informed and updated on current issued in the sector and regulatory requirements. This includes events run by AGBIS, ISC, ISBA and professional firms.

Key management personnel remuneration

The remuneration of key management personnel (being the Headmistress and Bursar) is set by the Governors, with the objective of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly for their individual contributions to the success of the School. The appropriateness and relevance of the remuneration policy is reviewed annually including reference to benchmarking information to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. Delivery of the School's charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our expenditure.

The School is committed to ensuring equality of opportunity through the creation of an environment in which individuals are treated on the basis of their relevant merits and abilities. The School respects all its members and values the harmonious relationships between them. As a community we are committed to the active promotion of equality between all who live, study or work in the School. Provision is made for individuals with a particular disability and religious, dietary, language or cultural needs, as appropriate.

Consultation with employees at all levels ensures that the views of employees are taken into account when decisions are made that are likely to affect their interests. All staff are briefed at the beginning of each term with shorter briefing sessions held once a week. The Senior Leadership Team meet once a week to discuss strategic plans; there are regular Heads of Department and Heads of Year meetings where teaching and learning strategies are discussed, as well as weekly meetings with Boarding staff.

Chapel

Acknowledging that our students are more than minds that need nurturing or bodies that need training, as they grow, we recognise their need to come to terms with their spirituality.

The Chapel provides a place of peace and quiet reflection, where that spiritual development can begin. Our Chapel is the spiritual centre of the school and is often at the core of people's memories of the school

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

when they leave, and the place they come back to first when they return to visit. Dedicated in 1904, the Chapel was built in the Victorian Gothic style with collegiate seating. Chapel follows current Anglican practice, yet it is a place for all the school community regardless of faith or belief.

The Chaplain is a central figure in school life who leads Chapel services during the week, on Sundays and on special occasions. The Chaplain is available to all members of the school community and the school's extended community for pastoral care.

Related parties and other connected charities and organisations

The Heathfield Fellowship is a separate entity which continues to raise money to enable pupils to attend the school by way of bursarial support.

St. Mary’s Wantage Bursary Fund is a separate charitable entity, created from the merger of Heathfield School and St Mary’s School Wantage. The object of the charity is for the advancement of education by providing bursaries for pupils to attend Heathfield School.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The objects for which the Association is established are to advance education and training by:

These are set out in the School’s governing document – the Memorandum and Articles of Association of Heathfield School dated 18 October 1955 as amended March 2009.

The Governors confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the School’s aims and objectives and in planning future activities.

Public Benefit Activities

The Governors have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The School is committed to ensuring that it is meeting its main aim and its charitable objective. The School’s aims for the public benefit are:

The Governors are committed to widening access to the School and welcomes pupils from all backgrounds. Each pupil to whom support is offered must, in the opinion of the Headmistress, be likely to make sound academic progress following admission, possess the potential to develop the quality of her work and benefit from participation in the wider, extra-curricular activities on offer at the School. The availability of bursaries is publicised on the School's website. The Governors' policy is to award bursaries on a means tested basis only. The bursaries are available to provide financial support for up to 100% of the annual fees. During

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

2021 a total of £399,263 (2020: £363,741) was awarded in bursaries to 24 (2020: 18) pupils. Many more applications are received than the School can reasonably support.

The School works closely with a number of other partner charities that help identify pupils who could benefit substantively from the education and pastoral support that the School can provide. 7 pupils (2020: 5) receive significant contributions towards their fees from these external grant-making bodies which resulted in full remission of their tuition fees.

The School actively supports the local community, local charities and associations by making its facilities available at less than cost price or free to a variety of different clubs and organisations. The School has started to develop links with local maintained schools. Some specific examples of the School’s outreach programme are:

The swimming pool is host to many local communities and organisations. Schools including Holy Trinity, Kennel Lane, Meadowbrook Montessori and Natures Nursery use the facility at various times throughout the year. In addition to these schools, there are a number of clubs that use the pool on a regular basis. These include, Berkshire Triathlon Squad, Scuba Trust, Bracknell and Wokingham Swimming Club and Windsor Swimming Club. Frogs and Friends Swimming School regularly run lessons at the pool as part of their ‘learn to swim’ programme which is offered to children in and around the local area.

The swimming pool is also used for training as well as tuition. NPLQ (National Pool Lifeguard Qualification) and Swimming Teacher courses are held at the pool and are open to members of the local community.

Fundraising performance

The School views fundraising as a very important source of additional income to enable fees to be kept as low as possible and to reduce reliance on single income streams. The trustees are fully aware of their individual responsibility and accountability to ensure that the School fundraises legally, responsibly and effectively. They are aware of the Charity Commission CC20 guidance and use this and the accompanying checklist to help them evaluate the School’s fundraising performance.

The Development Office continued to run an active communication and engagement programme through the pandemic, raising funds for the Sixth Form Centre capital project. The total amount raised for 2021 was £274,881 (2020: £146,937).

The School did not engage with a professional fundraiser in the year.

The School has a published complaints procedure, available on its website. The number of complaints received during the year in respect of fundraising was none.

Aims and Intended Impact

Heathfield School aims to discover and develop every pupil’s unique talents to enable them to excel.

Heathfield aims to foster:

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT

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These values are engendered through four central pillars:

Community

Pastoral Care and Boarding

Teaching

Co-Curricular

Objectives for the year

Strategies to achieve the year’s objectives

The strategies to achieve the year’s objectives have included:

Admissions

Day girls, first admitted in 2015-16, are growing in number each year and are leading a full part in the life of the school alongside the School’s boarders and have every opportunity to take part in all the activities on offer at Heathfield.

The Headmistress continues to host prep head visits, and the School hosts prep school curriculum and non-

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

curriculum events at Heathfield, aimed at increasing prep schools’ awareness of what we offer and of our growing academic reputation.

Academic Strategy

During the year, we have continued to push forward with an over-arching strategy to improve our growing academic success at Heathfield, including more intensive individual monitoring of staff and pupils' performances in the classroom as well as monitoring girls' study time and their use of it more closely while providing complementary activities to enhance their learning, in the form of conferences and workshops at the school through to a greater variety of co- curricular activities.

Our Learning Support Department continues to provide expert help for girls who require additional support in one or several areas, ensuring that Heathfield's outstanding reputation for helping to fulfil the potential of each individual girl through our value added results is supported and enhanced at every level.

Monitoring current pupils

Our individual monitoring of pupils to highlight their academic strengths and weaknesses, and to give them extra guidance where appropriate, is paying dividends in enabling staff to identify early the areas where girls need extra help. Staff can input such vital details about a child’s performance into our monitoring and tracking system within the school’s intranet so that they share their observations with their colleagues and areas of concern quickly become spotted and therefore acted on.

Monitoring also means that our gifted and talented programme for the brightest pupils has become more defined within the school and has encouraged and nurtured academic development in the brightest girls.

Scholarship programme

Our scholarship programme has continued to grow in profile inside and outside the school. The scholarships attract the brightest pupils to Heathfield, thus helping to improve our academic reputation. Regular monitoring to ensure each girl’s potential is fulfilled also helps us to identify potential scholarship candidates from within the school who are able to compete for a scholarship at appropriate times.

The scholarship awards contain a small financial incentive to make them more attractive to potential parents who may be considering a number of schools.

Co-Curricular

Similarly, our co-curricular programme was developed to encourage and reflect an emphasis on academics. Making the programme increasingly Sixth Form-led has succeeded in its aim of giving the girls a greater sense of responsibility and helping them to develop leadership and team building qualities.

The initiatives held to highlight and praise the girls’ academic achievements such as special assemblies and the

High Flyer awards are popular with the girls and have a positive effect on the girls’ confidence as they take pride in their achievements.

STRATEGIC REPORT

The following sections of this report constitute the Strategic Report.

REVIEW OF ACHIEVEMENTS AND PEFORMANCE FOR THE YEAR

Academic Achievements

Heathfield celebrated another year of exceptional A-level results with 26% of its students’ results securing A/A, 85% A to B and 96% A* to C. Other results of note included Mathematics in which 75% of students secured

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

an A or A, Photography, religious Studies, Spanish, Drama, Music and Economics in which 100% attained an A or A.

Over 40% of 2021 leavers staying in the UK are destined for leading Russell Group universities such as Exeter, Edinburgh, Durham and Bristol to study a broad range of subjects including Psychology, Politics, Sociology and Animation. Girls also accepted places at Parsons, Paris and King’s College London.

At GCSE, across the board, 61% of grades received by Heathfield students were in the top 9-7/A-A category. Core subjects continued to impress, with a 100% pass in Maths and English Language and 36% of girls securing a 9-7/A-A in Maths, 59% gaining a 9-6/AAB in English Language and 84% 9-6/A-B in English Literature. Girls also performed well in other subjects with 100% 9-7 in Art, Biology, Chemistry, History and Music.

Sport

It has been a quiet year on the sporting field for Heathfield due to the pandemic as inter-school fixtures were unable to take place.

Extra Curriculum Activities:

Music

Seven girls passed ABRSM instrumental and singing examinations during the year, with a range of instruments. One V pupil received a distinction in their Grade VII singing exam whilst a pupil in LVI received a distinction in her Grade VI singing exam.

LAMDA and Dance

Students took 50 LAMDA examinations between October 2020 and June 2021. 12 of these examinations were at the Higher Level – Grades 6-8 – for which the students also receive UCAS points. All 50 LAMDA students achieved a Distinction or Merit, and 100% of the Grade 8/Gold Medal candidates achieved a Distinction (30 UCAS points). The exams were taken both online and ‘in person’ due to Covid restrictions.

In Dance, students have achieved success in RAD Ballet, ISTD Tap and GCSE Dance examinations this year, with exceptional results in such challenging times. Much of their learning was completed online. Girls also participated in Ballet, Street Dance, Dance GCSE, Tap Dance, Pointe-work, Pilates and Yoga classes during the year.

Equestrian Events at Heathfield

Although riding and polo lessons were disrupted by Covid-19 restrictions, Heathfield remained as active as possible encouraging riders and polo players with lessons available three times a week.

Although there were no SUPA schools tournaments, Heathfield played a polo match against Eton at the end of the summer term. There are four polo coaching sessions each week.

Heathfield have an average of 38 pupils attending polo and/or riding lessons. Classes are from beginners (completely new to the activity) to advanced jumping classes. We were oversubscribed with Wednesday riders at Berkshire riding center with a waiting list of keen riders waiting for a place in one of our 4 group lessons.

Heathfield continues to attract competent show jumping, dressage and event riders with several pupils horses at local livery yards to continue their training whilst boarding at school. Many pupils continue with their equestrian disciplines at high levels after their start at Heathfield.

Staff

The Governors wish to express their gratitude to the Headmistress, the Bursar and all other members of the Staff for their continued dedication to the interests of the pupils of Heathfield School.

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The Governors consider that the School is on a sound financial footing, given the increasing pupil numbers year on year since 2018, and views the future with optimism, despite the challenges of the year due to the pandemic. At the year end, the school held cash balances of £2,076,655 (2020: £1,142,429) and investments of £350,540 (2020: £281,176).

At 31 August 2021 the School had net assets of £12,009,207 (2020: £11,183,696), of which freehold property accounts for £10,694,548 (2020: £10,682,974). This is a vital area of focus for the School as the high quality facilities and living quarters are significant contributing factors in attracting new pupils.

During the year a net cash inflow of £934,226 (2020: outflow £362,243) occurred. Cash from operating activities was a net inflow of £434,540 (2020: outflow £368,376) in the year.

The School made an operational surplus of £1,069,883 (2020: £179,965) in the year, which after depreciation and gains on investments, resulted in a surplus of income over expenditure of £825,510 (2020: deficit £397,069). The lost income resulting from the fee reductions, cancelled Summer School, and lettings revenue from the swimming pool as a result of the coronavirus pandemic is estimated at £921,763 (2020: £823,251). This was mitigated by claims made under the CJRS (furlough) scheme totaling £266,305 (2020: £322,878). The School expects to recoup some of the lost income via its Business Interruption insurance cover.

As a registered Charity all surpluses are applied for the benefit of the School.

Reserves Policy

The Governors’ policy is to build up free reserves to meet demands for further expenditure out of annual operating surpluses to equip the School with the up-to-date facilities needed to improve and maintain the standard of educational services and sporting facilities. The Governors are of the opinion that the total reserves, all of which are unrestricted funds, on the Income and Expenditure account of £12,009,207 (2020: £11,183,696) are sufficient to meet the school's obligations for the foreseeable future (see note 15 for note on reserves). After deducting the carrying value of tangible fixed assets held for the charity’s own use, the freely available reserves were £893,660 (2020: £15,803).

The Governors recognise the need to review the reserve levels of the school annually at the year-end as part of its medium-term budget planning. The Governors' policy is to generate reserves to provide funds to continue to enhance the educational facilities and services of the School and to fund future projects, whilst maintaining a contingency in the region of £1,000,000. The Governors intend to review the Reserves Policy annually to ensure that this aim can be achieved.

Investment Policy

The Governors' policy is to invest in secure forms of investment that provide a reasonable level of income. The Finance Sub-committee keeps under review the investment risks and rewards.

Going concern accounting Policy

The Governors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the School to continue as a going concern. The Governors have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Governors have considered the School’s forecasts and projections and have taken account of the CBILS loan drawn down in the year to aid cash flow along with pressures on fee income, particularly in the light of the impact of the COVID-19 pandemic which occurred before these financial statements were approved and is explained in more detail in the Principal Risks section of the Governors’ Report in these financial statements. After making enquiries the Governors have concluded that there is a reasonable

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

expectation that the School has adequate resources to continue in operational existence for the foreseeable future.

As such the School can expect to be able to meet its liabilities as they fall due in the period of at least 12 months from the date of approval of these accounts.

On this basis the Governors have concluded that the School is a going concern. The financial statements do not include any adjustments that would result from the School not being able to meet its liabilities as they fall due.

Future Plans

The STEM building was completed for the start of the 2015-16 academic year and a further five building projects have been granted planning permission. The construction of a Sixth Form Study and Wellbeing Centre commenced in August 2021 and is scheduled to be completed by September 2022.

The School is continuing to raise academic standards and to attract academically able pupils to the School.

In September 2022, the School will admit weekly boarders for the first time, whilst continuing to offer full boarding and day places.

PRINCIPAL RISKS AND UNCERTAINTIES

The most significant risk to the charity, and indeed most independent schools, is a significant drop in pupil numbers, which would affect income. The Governors work to ensure the School has the first class resources required to attract and retain pupils.

The highest costs to Heathfield are staff and pastoral costs which are paid in arrears. Conversely, school fees are received termly in advance resulting in a surplus of working capital. Any cash flow risk which will arise from the commission of any building projects will be reduced by extensive forward planning by the Governors, coupled with significant cash balances held by Heathfield which can be utilised as required.

Credit risk is the risk of financial loss to Heathfield if a fee payer fails to meet their obligations. Heathfield minimises this risk by taking deposits from each student and monitoring amounts not received on a regular basis.

Health and Safety is always a significant area for risk management. The risks range from fire to personal risks (most notably when away from the School on trips and expeditions). The risks associated with all activities are minimised by thorough planning and risk assessment.

During the financial year like all schools in the country the School was and will continue to be impacted by the Covid-19 pandemic. The School mitigated the financial impact as optimally as it reasonably could by taking advantage of the Government’s Job Retention Scheme and reducing other costs where possible. The Governors considered the likely financial impact on the School including the uncertainty over the pupil numbers and its commercial letting activities and summer school and camp. There was a negative financial impact in the shortterm, with a reduction in fee and commercial income, but the Governors consider the School remains financially viable in the long term, and consequently have concluded that the Going Concern basis remains applicable. The risk of the Coronavirus pandemic has been added as a specific risk to the Risk Management Table.

Through the risk management processes established for the School, the Governors are satisfied that themajor risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. The

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 GOVERNORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

charity's exposure to risk is reviewed consistently throughout the year.

The key controls used by the Charity include:

STATEMENT OF GOVERNORS' RESPONSBILITIES

The Governors, who are also the Trustees, are responsible for preparing a Governors' Report and 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 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 the financial statements, the Trustees are required to:

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the Governors are aware at the time the report is approved:

BY ORDER OF THE BOARD

Mr Tom Cross Brown Chairman of the Governors

Date: 22 March 2022

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HEATHFIELD SCHOOL FOR THE YEAR ENDED 31 AUGUST 2021

Opinion

We have audited the financial statements of Heathfield School (‘the 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 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 Auditor’s 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees 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 there is 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:

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HEATHFIELD SCHOOL FOR THE YEAR ENDED 31 AUGUST 2021

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

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 trustees’ responsibilities statement set out on page 2, 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.

Auditor’s 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 auditor’s 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HEATHFIELD SCHOOL FOR THE YEAR ENDED 31 AUGUST 2021

in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any

14

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HEATHFIELD SCHOOL FOR THE YEAR ENDED 31 AUGUST 2021

party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shivani Kothari (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date: 1 April 2022

15

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

2021 2021 2021 2020
Unrestricted Restricted Total Total
Funds Funds Funds Funds
Notes £ £ £ £
INCOME FROM:
Charitable activities
School fees 1a 6,053,040 - 6,053,040 6,059,351
Donations and grants 1b 1,441,186 - 1,441,186 469,815
Other trading activities
Rental income 1c 97,917 - 97,917 78,454
Investments 1d 39,305 - 39,305 50,815
Total income 7,631,448 - 7,631,448 6,658,435
EXPENDITURE ON:
Raising funds 2,503 - 2,503 2,502
Charitable activities 2 6,873,370 - 6,873,370 7,002,973
Total expenditure 6,875,873 - 6,875,873 7,005,475
Net gains/(losses) on investments 9 69,935 - 69,935 (50,028)
NET INCOME/(EXPENDITURE) 825,510 - 825,510 (397,068)
Reconciliation of funds
Fund balances brought forward at 1
September 15 11,183,697 - 11,183,697 11,580,765
Fund balances carried forward at
31 August 15 12,009,207 - 12,009,207 11,183,697

All amounts derive from continuing activities.

All gains and losses recognised in the year are included in the Statement of Financial Activities.

16

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 BALANCE SHEET FOR THE YEAR ENDED 31 AUGUST 2021

Notes
FIXED ASSETS
Tangible assets
8
CURRENT ASSETS
Investments
9
Stocks
10
Debtors
11
Cash at bank and in hand
CREDITORS -Amounts falling
due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
Creditors
Amounts falling due after more
than one year
13
Provisions for liabilities and
charges
14
Net assets
FUNDS
15
Restricted funds
Unrestricted funds
Income and expenditure account
School Funds		 2021
£
350,540
24,343
1,621,659
2,168,265
4,164,807
(2,001,578)		 2021
£
11,115,547
2,163,229
13,278,776
(1,241,102)
(28,467)
12,009,207
-
12,009,207
12,009,207		 2020
£
281,176
20,885
523,381
1,142,429
1,967,871
(1,320,222)		 2020
£
11,167,894
647,649
11,815,543
(595,627)
(36,219)
11,183,697
-
11,183,697
11,183,697

Approved by the Board of Governors of Heathfield School on 22 March 2022 and signed on its behalf by

Mr Tom Cross Brown - Governor

Mr Steve Melcher - Governor

17

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 AUGUST 2021

2021
Note
£
Net cash inflow/(outflow) from operating activitie
(a)
526,150
Cashflows from investing activities
15,557
Interest paid
(2,503)
Proceeds from disposal of investments
312,606
(312,035)
Payments to acquire tangible fixed assets
(263,939)
Net cash inflow from investing activities
(250,315)
Cashflow from financing activities
Loan received
750,000
Increase/(Decrease) in cash and cash equivalents in the year
1,025,836
Cash and cash equivalents at beginning of the year
1,142,429
Cash and cash equivalents at end of the year
2,168,265
Reconciliation of net expenditure to net cash flow from operating activities
2021
£
825,510
Adjustments for:
Net (gains)/losses on investments
(69,935)
Loss on disposal of tangible fixed assets
1,978
Investment income
(15,557)
Interest paid
2,503
Depreciation charges
314,308
Increase in stock
(3,458)
Increase in debtors
(1,098,278)
Increase/(decrease) in creditors
576,831
Decrease in provisions
(7,752)
Net cash inflow/(outflow) from operating activities
526,150
Net cash:
Balance at
31 August
2020
Cash
Movements
£
£
Cash at bank and in hand
1,142,429
1,025,836
Bank loan
-
(750,000)
Net cash
1,142,429
275,836
Investment income and interest received
Payments to acquire investments
(a) Net expenditure including endowments		 2020
£
(368,376)
32,062
(2,502)
-
-
(23,427)
6,133
-
(362,243)
1,504,672
1,142,429
2020
£
(397,069)
50,028
-
(32,062)
2,502
527,006
(4,325)
(6,484)
(501,024)
(6,949)
(368,377)
Balance at 31
August 2021
£
2,168,265
(750,000)
1,418,265

18

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

ACCOUNTING POLICIES

Heathfield School Limited is a charitable company, incorporated in England and Wales and limited by guarantee. The address of its principal place of business is given on page 1 and the nature of its operations are set out in the Governors’ Report.

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.

(a) Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value through income and expenditure within the Statement of Financial Activities.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

(b) Going concern

The Governors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the School to continue as a going concern. The Governors have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Governors have considered the School's forecasts and projections and have taken account of pressures on fee income, particularly in the light of the impact of the COVID-19 pandemic which occurred before these financial statements were approved and is explained in more detail in the Principal Risks section of the Governors� Report in these financial statements. After making enquiries the Governors have concluded that there is a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the governors continue to adopt the going concern basis for the preparation of the financial statements.

(c) Income

All income is recognised when the School has entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Fees receivable

These represent fees charged to pupils with incidental fees and disbursements disclosed separately and are accounted for in the period in which the service is provided. Fees received in advance of education to be provided in future years are held as liabilities until either taken to income in the term when used or else refunded.

Donations

All monetary donations are included in full in the statement of financial activities when received, provided that there are no donor-imposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the pre-condition has been met. Donations receivable for the general purpose of the Charity are credited to Unrestricted Funds. Donations for purposes restricted by the wishes of the donor are taken to Restricted Funds where these wishes are legally binding on Heathfield School’s Governors.

The value of donated services and gifts in kind provided to the School are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the School can

19

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

Donations continued

be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the School's policies.

Grants receivable

Revenue grants, including government grants, are credited as incoming resources when they are receivable provided conditions for receipt have been complied with, unless they relate to a specified future period, in which case they are deferred.

Grants for the purchase of fixed assets are credited to restricted incoming resources when receivable and transferred to unrestricted funds up to the level of expenditure incurred. Depreciation on the fixed assets purchased with such grants is then charged against unrestricted funds.

(d) 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 accounted for on an accruals basis and is classified under the following activity headings:

· Costs of raising funds comprise the finance costs incurred by the School.

· Expenditure on charitable activities includes the costs of the academic and pastoral care provided to the pupils.

Governance costs, which comprise the regulatory costs of running the charity, have been allocated wholly to the charitable activities of the School. All expenditure is inclusive of irrecoverable VAT.

(e) Grant making policy

Bursaries from restricted funds are included as expenditure in the period for which the award is given. Bursaries and scholarships from unrestricted funds towards school fees at school are treated as a reduction in those fees.

(f) Tangible fixed assets

The School prepares a budget for capital expenditure at the start of each academic year which is approved by the Finance Committee.

Depreciation is provided on cost less residual value at the following rates in order to write off assets over their estimated useful lives

Freehold buildings - St Mary’s Theatre and STEM building 2%
Freehold buildings - Access road 10%
Freehold buildings - Other Not depreciated
Freehold buildings - Swimming pool 3⅓%
Equipment 10% - 20%
Motor vehicles 20%

The Charity holds no inalienable or historic assets.

The policy for depreciating freehold buildings is to provide a charge of 2% on cost less residual value. However, no depreciation has been charged on the main school buildings as an annual impairement review is undertaken. This considers the maintenance programme to keep buildings in good repair, and an annual insurance review to identify any significant issues.

Assets costing more than £1,000 are capitalised and carried in the balance sheet at historical cost. Assets under the course of construction are not depreciated until they are complete and brought into use.

20

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

(g) Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in “net gains/(losses) on investments" in the SOFA.

(h) Stock

Stock is included at the lower of cost and net realisable value.

(i) Debtors

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

(j) 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.

(k) Creditors and provisions

Creditors and provisions are recognised where the School has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(l) Financial Instruments

The School 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 School's balance sheet when the School 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.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 11, 12 and 13 for the debtor and creditor notes.

(m) Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

(n) Pension costs

Retirement benefits to employees of the School are provided by Royal London for teachers and the TPT Retirement Solutions Independent Schools’ Pension Scheme ('ISPS’) for non-teaching staff. Both schemes are a defined contribution scheme.

Contributions to the ISPS are expensed in the Statement of Financial Activities. See note 17 for details.

(o) Benefits in kind and gifts

Gifts donated to the school and any services provided by the Governors have been included in the financial statements.

21

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

(p) Operating leases

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

(q) Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the charity.

Restricted funds are created when donations are made either for a particular area or purpose, the use of which is restricted. Expenditure is charged to the Statement of Financial Activities when incurred.

(r) Critical accounting estimates and areas of judgement

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

Useful Economic Lives - The annual depreciation charge for property, plant and equipment is sensitive to change in the estimated useful economic lives and residual value of assets. These are reassessed annually and amended were necessary to reflect current circumstances.

1 ANALYSIS OF INCOME

(a) Charitable activities
Fees receivable
Less: bursaries, scholarhsips and discounts
Less: COVID discount
Summer school
Registration fees
Extras and disbursements		 2021
£
6,588,240
(531,740)
(266,763)
5,789,737
-
26,996
236,307
6,053,040		 2020
£
6,588,497
(467,955)
(468,251)
5,652,291
-
29,000
378,060
6,059,351

All bursaries, scholarships and discounts were made to individuals in accordance with the School’s grantmaking policy.

(b) Donations and grants
Coronovirus Job Retention Scheme grant
Donations received		 2021
Unrestricted
Funds
£
266,305
1,174,881
1,441,186		 2021
Restricted
Funds
£
-
-
-		 2021
Total
Funds
£
266,305
1,174,881
1,441,186		 2020
Total
Funds
£
322,878
146,937
469,815

All donations and grants income in 2020 related to unrestricted funds.

22

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

(c)
Other trading activities
2021
2021
Unrestricted
Restricted
Funds
Funds
£
£
Rental income
97,917
-
All income from other trading activities in 2020 related to unrestricted funds.
(d)
Investment income
2021
2021
Unrestricted
Restricted
Funds
Funds
£
£
Interest receivable
39,305
-
All investment income in 2020 related to unrestricted funds.
2(a)
Analysis of expenditure
2021
Staff costs
Other
Charitable activities
£
£
Teaching
3,011,934
340,476
Premises
926,561
1,034,294
Support costs (note 2b)
832,125
413,672
Finance costs (note 2c)
-
2,503
4,770,620
1,790,945
2020
Staff costs
Other
Charitable activities
£
£
Teaching
2,924,756
460,339
Premises
853,379
950,553
Support costs (note 2b)
811,877
475,064
Finance costs (note 2c)
-
2,502
4,590,012
1,888,458
2(b)
Support costs
Salaries and National Insurance
Printing, postage and stationery
Marketing and development
Computer costs
Bad debts & stock write off
Legal & Professional fees
Non-teachers' CPD
General expenses
Governance Costs (note 3)
2(c)
Finance costs
Interest and charges		 2021
Total
Funds
£
97,917
2021
Total
Funds
£
39,305
Depreciation
£
-
314,308
-
-
314,308
Depreciation
£
-
527,006
-
-
527,006
2021
£
832,125
17,549
85,666
90,094
42,072
88,538
5,986
64,747
19,020
1,245,797
2,503		 2020
Total
Funds
£
78,454
2020
Total
Funds
£
50,815
Total
£
3,352,410
2,275,163
1,245,797
2,503
6,875,873
Total
£
3,385,095
2,330,938
1,286,941
2,502
7,005,476
2020
£
811,877
16,609
104,219
131,192
42,212
84,690
6,106
53,526
36,510
1,286,941
2,502

23

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

3
Governance Costs
Legal & Professional fees
Audit fees
4
Operating Surplus
The operating surplus is stated after charging:
Depreciation and other amounts written off tangible assets
Operating lease charges
Auditor's remuneration - audit fee		 2021
£
-
19,020
19,020
Funds
2021
£
314,308
24,437
19,020		 2020
£
15,984
20,526
36,510
Funds
2020
£
527,006
20,372
20,526

The average monthly number of employees (including staff who are also trustees) during the year was:

Teaching staff
Administration and support
Employment costs
Wages and salaries
Social security costs
Employer's pension contributions
Temporary staff costs
Other		 2021
No.
53
78
131
Total
2021
£
3,963,854
373,121
423,854
-
9,792
4,770,621		 2020
No.
51
75
126
Total
2020
£
3,636,407
353,839
597,471
1,164
1,131
4,590,012

Included in the above are termination payments of £9,792 for one individual (2020: £1,131).

Employees earning £60,000 per annum or more received remuneration in the following bands:

2021 2020
No. No.
£60,000 - £69,999 3 2
£70,000 - £79,999 - 1
£80,000 - £89,999 1 -
£90,000 - £99,999 - 1

The employers pension contributions for the above employees was £22,844 (2020: £48,374).

24

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

6 Key Management Personnel

The charity considers that the key management personnel comprise the governors and the senior leadership team - who are the Headmistress, Deputy Head (Pastoral & Boarding), Assistant Head (Cocurricular), Deputy Head (Academic), Assistant Head (Sixth Form), Bursar & Clerk to the Governors, Director of Development and the Director of Marketing & Admissions. The total employee benefits including pension costs of the key management personnel of the school were £614,051 (2020: £658,638).

7 Taxation

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

8 Tangible Fixed Assets

Cost
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
Eliminated on disposals
At 31 August 2021
Net Book Value
At 31 August 2021
At 31 August 2020		 Freehold
properties
£
12,523,980
172,635
-
12,696,615
1,841,006
161,061
-
2,002,067
10,694,548
10,682,974		 Equipment
£
3,466,809
91,304
(24,759)
3,533,354
2,981,889
153,247
(22,781)
3,112,355
420,999
484,920		 Total
£
15,990,789
263,939
(24,759)
16,229,969
4,822,895
314,308
(22,781)
5,114,422
11,115,547
11,167,894

The insured value of the Main School, Sports Hall, Swimming Pool, St Mary’s Theatre and other buildings is £46,575,701.

All tangible fixed assets are used for direct charitable purposes. The school does not own or have the use of any inalienable or historic assets. No impairment of the freehold property was evident, which has been confirmed by the insurance valuation.

The school had capital commitments of £1,984,908 (2020: £nil) at 31 August 2021.

25

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9 Investments

Investments
At 1 September
Additions
Disposals
Net gains/(losses)
At 31 August
Historical cost		 2021
£
281,176
312,035
(312,606)
69,935
350,540
312,035		 2020
£
331,204
-
-
(50,028)
281,176
386,742

Of the investments held £350,540 (2020: £nil) relates to Fidelity Investments and £nil (2020: £281,176) relates to Edinburgh Investment Trust Plc, which are listed on the London Stock Exchange.

10
Stock
Household and consumable materials
11
Debtors
Tuition fees receivable
Bad debt provision
Other debtors
Prepayments and accrued income
12
Creditors: Amounts falling due within one year
Trade creditors
Loan
Tuition fees in advance (see below)
Other taxes and social security costs
Other creditors
Accruals and deferred income
Total tuition fees in advance brought forwards
Released in year
Received in year
Total tuition fees in advance carried forwards
Repayable in one year or less, or on demand
Repayable in one year or more (see note 13)		 2021
£
24,343
2021
£
576,565
(98,322)
22,699
1,120,717
1,621,659
2021
£
168,171
112,500
1,291,158
95,036
287,178
47,535
2,001,578
2021
£
878,388
(878,388)
1,291,158
1,291,158
1,291,158
-
1,291,158		 2020
£
20,885
2020
£
417,167
(98,322)
11,352
193,184
523,381
2020
£
51,628
-
875,356
81,053
268,157
44,028
1,320,222
2020
£
1,267,825
(1,267,825)
878,388
878,388
875,356
3,032
878,388

26

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

13
Creditors: Amounts falling due after more than one year
Fees paid in advance
Loan
Fee deposits		 2021
£
-
637,500
603,602
1,241,102		 2020
£
3,032
-
592,595
595,627

During the year the school obtained a loan from Barclays Bank plc under the Government's Coronavirus Business Interruption Loan scheme. Interest is payable at Bank of England base rate plus 3.35% from December 2021 and the loan is repayable by November 2026. The amount due in more than five years is £37,500. There is a charge outstanding over properties owned by the School in relation to these loans.

Fee deposits
Repayable in one year or less, or on demand
Repayable between one and two years
Repayable between two and five years
Repayable in five years or more
Total
Fees paid in advance
Repayable in one year or less, or on demand
Repayable between one and two years
Repayable between two and five years
Total
14
Provision for liabilities
Balance at 1 September
Released in year (see note 17)		 84,500
109,620
423,482
70,500
603,602
1,291,158
-
-
-
2021
£
36,219
(7,752)
28,467		 83,494
188,500
331,095
73,000
592,595
875,356
3,032
-
3,032
2020
£
43,168
(6,949)
36,219

27

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15 Funds
Unrestricted Funds
General
Unrestricted Funds
General		 Balance at
31 August
2020
£
11,183,696
Balance at
31 August
2019
£
11,580,765		 Income
£
7,631,448
Income
£
6,658,434		 Expenditure
£
(6,875,873)
Expenditure
£
(7,005,475)		 Gains &
Transfers
£
69,935
Gains &
Transfers
£
(50,028)		 Balance at
31 August
2021
£
12,009,206
Balance at
31 August
2020
£
11,183,696

16 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Creditors falling due after 1 year
Provisions for liabilities and charges		 Unrestricted
Funds
£
11,115,547
4,164,807
(2,001,578)
(1,241,102)
(28,467)
12,009,207		 Restricted
Funds
£
-
-
-
-
-
-		 Total
Funds
£
11,115,547
4,164,807
(2,001,578)
(1,241,102)
(28,467)
12,009,207

All net assets in 2020 were represented by unrestricted funds.

28

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17 Pension obligations

The School employees belong to two principal pension schemes: Royal London Scheme for teaching staff; and TPT Retirement Solutions Independent Schools’ Pension Scheme (ISPS) for non-teaching staff. Both are defined contribution schemes. In addition, a small number of employees belong to TPT Retirement Solutions Growth Plan (TPTGP) defined benefit scheme however this is closed to new members.

Teachers Pension Scheme (TPS)

The School participated in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff until 31 August 2020. The pension charge for the year includes contributions payable to the TPS of £nil (2020: £496,255) and at the year-end £nil (2020 - £57,867) 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. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

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

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation. Until the cost cap mechanism review is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17 Pension obligations continued

TPT Retirement Solutions

The scheme is subject to the funding legislation outlines in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension scheme in the UK.

The scheme is classified as a ‘last-man standing arrangement’. Therefore the company is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme of £11,243,000 per annum. This is payable monthly from 1 April 2019 to 31 January 2025 and increases by 3% each on 1st April

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Reconciliation of opening and closing provision:
Provision at start of period
Recognised in year
Unwinding of discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of change in assumptions
Remeasurements – amendments to the contribution schedule
Income and expenditure impact:
Interest expense
Recognised in year
Remeasurements - impact of change in assumptions
Remeasurements – amendments to the contribution schedule		 2021
£
36,219
-
175
(7,889)
(38)
-
28,467
175
-
(38)
-		 2020
£
43,168
-
380
(7,660)
331
-
36,219
380
-
331
-

All movements on the pension provision are recognised in the Statement of Financial Activities as staff costs.

The assumed discount rate applied is 0.63% per annum (2020: 0.55%). This rate is the equivalent single discount rate which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

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HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17 Pension obligations continued

Royal London Scheme

The School joined the Royal London Pension Sceme for its teaching staff on 1 September 2020. The pension charge for the year includes contributions payable to Royal London of £338,747 (2020: £nil) and at the year-end £45,481 (2020: £nil) was accrued in respect of contributions to this scheme.

18 Indemnity insurance

During the year the company purchased insurance for the directors of the school against liabilities arising from negligence in relation to the company as permitted under section 233 of the Companies Act 2006 with the approval of the Charities Commission. £37,017 (2020: £27,882) was paid for an all risks combined liability insurance policy. Included in this was public liability insurance and professional indemnity insurance relating to the trustees.

19 Company limited by guarantee

As the company is limited by guarantee, in the event of winding up the members will be required to pay £1.

20 Related party transactions

None of the trustees received any remuneration or reimbursed expenses for their role as trustee during the current or previous year.

The Chairman is also a trustee of St Mary’s School Wantage Bursary Fund. The charity raises funds to support bursaries provided by the School. During the year an amount of £10,199 (2020: £11,493) was donated to the School and at the year end £nil (2020: £nil) was owed to the School.

21 Controlling interest

The company is controlled by its Board of Governors.

22 Operating lease commitments

At 31 August 2021 the school had total commitments under non-cancellable operating leases falling due as set out below:

Due within:
Less than one year
Between one and five years		 2021
£
20,473
19,167
39,640		 2020
£
22,603
39,641
62,244

23 Contingent Liabilites

Post the year end a legal case has arisen that could result in a future liability for the school. No financial liability can be quantified at this stage.

31

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

INCOME FROM:
Operating activities:
Fees
Bursaries, scholarships and remissions
Summer school
Extras and disbursements
Rent
Other income
Donations received
Registration fees
UK Investment income		 2021
£
6,321,477
(531,740)
-
236,307		 2021
£
6,026,044
97,917
-
1,174,881
26,996
39,305		 2020
£
6,120,246
(467,955)
-
378,060
100,726
4,481,329
472,831
454,578
181,115
273,714
594,638
121,200		 2020
£
6,030,351
78,454
146,937
29,000
50,815
7,365,143 6,335,557
EXPENDITURE ON:
Cost of raising funds
Cost of activities in furtherance of charity objects
Summer school
92,065
Direct costs
4,515,638
Indirect costs
493,562
Overhead costs
431,587
Administrative costs
146,488
Extras and disbursements
161,809
Support costs
658,373
Governance costs
107,558
Net income/(expenditure)
Net gains/(losses) on investments
Net surplus/(deficit) after net gains on
investments		 2,488
5,841,149
765,931
6,609,568
755,575
69,935
825,510		 2,466
5,964,293
715,838
6,682,597
(347,040)
(50,028)
(397,068)

These notes do not form part of the statutory financial statements.

32

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2021 2021 2020 2020
£ £ £ £
A Summer school
Summer school receipts - -
Summer school costs (92,065) (100,726)
Loss on activities (92,065) (100,726)
B Direct costs
Teachers’ pay 2,894,424 2,842,768
SSP and maternity pay etc 44,947 (5)
Teachers’ costs 112,872 142,657
Redundancy payments 9,792 1,131
Housemistresses and nursing pay 369,607 294,363
Boarding, Surgery and Pastoral costs 41,791 27,299
Housekeeping pay 216,251 184,904
Housekeeping costs 45,369 38,650
Catering costs 377,442 337,190
Stationery - 1,970
Library 2,634 2,424
Subscriptions and incidentals 13,208 19,439
Weekend activities 37,486 33,183
Chapel 1,317 909
School vehicles 32,225 27,442
Depreciation 314,309 527,006
Loss on disposal of fixed assets 1,964 -
4,515,638 4,481,330
C Indirect costs
Grounds costs 13,793 23,840
Facilities pay 193,651 196,714
Facilities costs 181,756 111,324
Security 19,734 23,269
Swimming pool 30,411 51,314
Recruitment 54,217 66,370
493,562 472,831
D Overhead costs
Rates and water 50,396 49,384
Telephone and Postage 17,646 14,142
Insurance 45,770 47,842
Electricity, Gas and Oil 228,610 213,308
Computer support costs 89,166 129,901
431,587 454,577

These notes do not form part of the statutory financial statements.

33

HEATHFIELD SCHOOL (LIMITED BY GUARANTEE) REGISTERED NUMBER: 00556463 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

E
Administrative costs
Office costs
Advertising and marketing
Travel and entertaining
Alumni and events
Bad debt provision
F
Extras and disbursements
G
Support costs
Administration pay
Admissions pay
Marketing pay
IT support pay
Commissions paid
Admission costs
H
Governance costs
Legal fees
Audit fees
Professional fees
I
Net gains/(losses) on
investments		 2021
£
12,676
78,516
8,547
6,642
40,108
354,970
66,900
119,786
92,230
24,487
-
20,353
19,020
68,185		 2021
£
146,488
161,809
658,373
107,558
69,935		 2020
£
16,518
96,270
18,676
7,439
42,212
342,994
67,008
101,945
79,212
3,480
-
26,647
20,526
74,027		 2020
£
181,115
273,714
594,639
121,200
(50,028)

These notes do not form part of the statutory financial statements.

34