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2021-08-31-accounts

Upton House School Limited (A Company Limited by Guarantee)

Incorporated in England and Wales No. 00677794 Registered Charity No. 309095

GOVERNORS' REPORT AND FINANCIAL STATEMENTS

For the year ended

31 August 2021

Upton House School Limited CONTENTS for the year ended 31 August 2021

Page
Council of Management's Report 1 - 10
Auditors' Report 11 - 14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Financial Statements 18 - 31

Upton House School Limited (Company Limited by Guarantee) Members of the Board, Officers and Professional Advisers


Members of the Board, Officers
and Professional Advisers
Registered Charity Name Upton House School Limited
Charity Number 309095
Company Registration Number 677794
Registered Office 115 St Leonard’s Road
Windsor
Berkshire
SL4 3DF
Members
Mrs V Barker
Mrs S C Cairns (Resigned 23 Jun 2021)
Mr G E F Delaney (Resigned 24 Mar 2021)
Mr R A Laubscher (Appointed 11 Nov 2021)
Mrs F R Lloyd
Miss S E Mason
Mr G Parrish (Resigned 24 May 2021)
Mr R D L Smyth
Mr R M Stewart
Dr P M Warwicker
Mrs E S M Wigzell (Resigned 24 Mar 2021)
Mrs K L Wooddridge (Appointed 24 Mar 21)
Mrs R S Nunan (Appointed 23 June 21,
Resigned 10 Dec 21)
Headmistress Mrs R Thornton
Secretary To be appointed
Chair Mrs V Barker
Chair, Finance & General Miss S E Mason
Auditors Moore Kingston Smith LLP
Chartered Accountants and Statutory Auditors
Devonshire House
60 Goswell Road
London
EC1M 7AD
Bankers Handelsbanken plc
Independent House
William Street
Windsor
SL4 1BA
Solicitors Veale Wasbrough Vizards
Narrow Quay House
Narrow Quay
Bristol
BS1 4QA

Page: 1

Upton House School Limited (Company Limited by Guarantee) Report of the Council of Management

The Members, who are also Directors for the purposes of the Companies Act, have pleasure in presenting their report for the year ended 31 August 2021 under the Companies Act 2006 and the Charities Act 2011. The audited financial statements for the year comply with the requirements of the Companies Act 2006, the Company’s Articles of Association and the Charities SORP (FRS 102).

REFERENCE & ADMINISTRATIVE INFORMATION

Upton House School Limited is a charitable company founded in 1936 and incorporated as a company limited by guarantee in December 1960.

Reference and administrative details are shown in the schedule of members of the board and professional advisers on page 1 of the financial statements.

The Members

The Members who served the charity as Trustees during the period were as follows:

Mrs V Barker Mrs S C Cairns (Resigned 23 Jun 2021) Mr G E F Delaney (Resigned 24 Mar 2021) Mr R A Laubscher (Appointed 11 Nov 2021) Mrs F R Lloyd Miss S E Mason Mr G Parrish (Resigned 24 May 2021) Mr R D L Smyth Mr R M Stewart Dr P M Warwicker Mrs E S M Wigzell (Resigned 24 Mar 2021) Mrs K L Wooddridge (Appointed 24 Mar 2021) Mrs R S Nunan (Appointed 23 June 21, Resigned 10 Dec 21)

STRUCTURE, GOVERNANCE & MANAGEMENT

Governing Document

The Company is governed by its Articles of Association dated 23[rd] March 2011.

Governing Body

The Council of Management regularly reviews a skills audit of existing Council members. The Chair, assisted by the Headmistress and Bursar, and other Council members as appropriate, seeks to identify possible new Council members to meet any gaps identified. Trustees are elected as members of the Council at a full meeting of the Council of Management. Trustees, who are also required to serve as Directors of the Company under the Articles of Association, serve for a term of four years and are eligible to stand for re-election for two further terms, or, in exceptional circumstances only, three additional terms.

Trustee Training

Upon election to the Council of Management, new Trustees are given the Governors’ Handbook containing information relating to the school and its management, which is updated as required. New Trustees are also invited to spend time with the Chairs of the Council and the Finance and General Purposes Committee, with the Headmistress and with the Bursar for induction training, prior to attending their first full Council meeting. On-going training for Trustees is in the form of updates at Council meetings and to the Governors’ Handbook, together with the offer to attend specific training courses and conferences for governors run by the Incorporated Association of Preparatory Schools (IAPS), Independent Schools Council, Association of Governing Bodies of Independent Schools, and similar relevant bodies. One Trustee attended such an event during the year.

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Upton House School Limited (Company Limited by Guarantee) Report of the Council of Management

Indemnity Insurance

Indemnity insurance has been taken out in respect of the Trustees.

Organisational Management

The Council of Management meets at least three times a year to determine the general policy of the company and review its overall management and control. The financial management of the company is overseen by the Finance and General Purposes Committee, which meets three times a year, prior to full Council meetings and reports its findings to the Council. The school’s future development plan is drafted by the Headmistress and staff and reviewed annually by the Development Committee, which meets in January or February and reports back to the Council meeting later that term. There is also an Education and Pastoral Committee and a Health and Safety Committee, which both meet termly, a Salaries Committee that meets annually and a Bursary Committee and a Nominations Committee, which meet as required.

The day-to-day running of the school is delegated to the Headmistress supported by the finance team and other members of the Senior Leadership Team (SLT). Together the seven members of the SLT are the key management personnel.

Remuneration, including that of key management personnel, is set by the Council of Management, via the Finance and General Purposes Committee and the Salaries Committee, with the policy objective of ensuring appropriate incentives to encourage excellent performance and in a fair and responsible manner rewarding individual contributions to the company’s success. The appropriateness and relevance of the remuneration policy is reviewed annually including reference to comparisons with other independent schools to ensure that Upton House School remains sensitive to the broader issues of pay and employment conditions elsewhere. The school aims to recruit, subject to experience, at the lower to medium point within the scale, providing scope to be rewarded for excellence. Delivery of the School’s charitable vision and purpose is primarily dependent upon key management personnel and staff costs are the largest single element of our charitable expenditure.

Structure and relationships

Upton House School is an active member of IAPS for the promotion and maintenance of preparatory school standards generally, and also subscribes to a number of other bodies relating to education and independent schools. The school co-operates with other local and national organisations and charities in its efforts to widen public access to the education it can provide and optimise the use of its cultural and sporting facilities and to awaken in its pupils an awareness of the wider social context of the education they receive here.

Principal risks and uncertainties

The Council of Management, via the Finance and General Purposes Committee, reviews the school’s current and planned future activities in the light of any major risks arising from time to time, and the effectiveness of systems and procedures designed to manage them.

Pupil numbers

The Council regards the major risk to the school as falling numbers of pupils on roll. This risk was exacerbated by impact of the United Kingdom’s decision to leave the European Union and also by the continuing impact of the coronavirus pandemic. However, the Council notes there has been significant improvement in pupil numbers from 198 pupils on roll in 2018/19 to 265 pupils in 2020/21. The expectation is from 2021/22 onwards the school will be at capacity with 299 pupils on roll. This pupil number increase is as a direct result of the Council’s strategic review of operations in 2017/18. The outcome was to extend the Nursery operations to 48 weeks a year, followed by extending the main school operations to become a fully co-educational school for boys and girls aged 2 to 11. This was implemented in September 2020.

Page: 3

Upton House School Limited (Company Limited by Guarantee) Report of the Council of Management

The annual cost and income budget is set on a conservative basis to ensure that the school would be able to continue to operate during any temporary reduction in pupil numbers. In the event that such a fall in numbers looked likely to be sustained, the Council would look first to cost reduction.

During the period of enforced closure due to the coronavirus pandemic in 2019/20 and continuing into 2020/21, the Council of Management undertook extensive modelling and decided to reduce fees for pupils from Transition upwards whilst providing a best in class offer via its UptonHouse@Home (UH@H) online learning platform. Nursery pupils, who were thought too young to participate in the full daily timetable of UH@H, were charged a retainer only, and received their own programme of engagement activities provided by the early years’ practitioners on-line and via e-mail. The discounts and online offer in combination were extremely wellreceived by parents and pupils but, of course, impacted significantly on the school’s revenue, together with lost income arising from cancelled activities whilst the school was closed and in order to limit the infection risk once the school re-opened. The school negotiated an extended overdraft, which has not been used, but did draw down a government guaranteed bounce back loan totalling £50,000 in April 2021. The school did make use of the CJRS (furlough) scheme. UH@H has been maintained throughout closure periods and reverting to teaching online, should that ever be necessary again, will be straightforward.

Staffing

The Council also considers that failure to recruit or retain the correct calibre of staff is a potential risk to the success of the school. This is managed through a comprehensive recruitment policy and adherence to the guidelines on safer recruitment. Candidates for all roles are put through a rigorous assessment and interviewed by more than one member of the SLT. New staff members are mentored by a member of the SLT and, should there be any concerns, these are addressed promptly. The school maintains a register of reliable, high quality supply staff to call upon should the need arise. The Council oversees succession planning for the senior operational roles in the school and a panel of Council members interviews for the most senior positions.

Regulatory

The risk of regulatory failure is also carefully managed by taking advantage of all the information available to schools in the form of updates from the various professional bodies of which the school has membership; by ensuring that staff keep up to date with the latest developments in educational thinking and practice through attending courses, reading, and networking; and by employing professional advisers where appropriate.

Reputational

The Council of Management is very conscious of ensuring that the school’s excellent reputation is maintained at all times. Any reputational risk is managed through up to date, appropriate policies and through training to ensure staff behaviour both inside and outside school, particularly in areas such as social networking, is of the highest standard. The school communicates comprehensively with parents and has an open-door policy to ensure that any concerns that may arise are dealt with promptly.

The Council of Management recognises that the risk to the school’s reputation of a breach of safeguarding regulations would be very damaging and ensures that safeguarding matters are given the highest priority. The Deputy Head is an experienced Designated Safeguarding Lead, and two further members of the SLT are also trained designated safeguarding people. The Council has appointed a member to act as the designated safeguarding liaison on its behalf, who meets the safeguarding team at least once a term. All the above attend regular training to ensure that the school has the latest guidance on all safeguarding matters and the school’s safeguarding policy is subject to regular review and update, including review at least once a year by the full Council of Management. All staff receive safeguarding training on joining the school and an annual update.

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Upton House School Limited (Company Limited by Guarantee) Report of the Council of Management

Financial

The Council views the school’s financial position as stable and that the action taken following the strategic review has addressed concerns regarding pupil numbers. Pupil number forward projections are excellent, with the school full in 2021/22. The school has recovered from the pandemic with strong financial projections for 2021/22 onwards, See the graph projections below. The Council is of the opinion the school is now able to start to build reserves to protect against future unforeseen events such as the impact of Coronavirus.

----- Start of picture text -----
Upton House School Financial Projections
5000
4000
3000
2000
1000
0
2018/19 2019/20 2020/21 2021/22 2022/23
-1000
Income £000 Surplus/(Deficit) £000
----- End of picture text -----

Borrowings remain low, the school has a low interest government guaranteed recovery bounce back loan totalling £50,000 received in 2021, with a 6-year repayment term which started in May 2022 and another small remaining loan coming to the end of its 10-year term, was fully repaid in May 2022. The school has an overdraft facility with its bankers which will provide working capital should there be a temporary shortage of funds, but, with prudent budgeting and the strong reputation of the School, the Council does not consider this a major risk.

The government announced in September 2018 that the employer contribution rate to the Teachers’ Pension Scheme would increase from 1 September 2019 to 23.68% from 16.48%. The cost to the school was an additional £67,873 in pension contributions in 2020/21 (£65,380 2019/20). The Trustees have consulted with members of this scheme, and it was approved to move the Teacher Pension provision to an alternative provider starting 1 September 2021, reducing the school’s employer contribution back to 16.48% from 1 September 2021. This new scheme is the Aviva Pension Trust for Independent Schools (APTIS), a money purchase scheme.

Plans and strategies for managing risk include maintaining effective internal controls, risk registers, incident-reporting and monitoring systems and insurance cover wherever appropriate.

OBJECTS, PUBLIC BENEFIT AIMS, OBJECTIVES AND PRINCIPAL ACTIVITIES

The object of the Company, in accordance with its Articles of Association, is to promote, advance and carry out the education of children. In the furtherance of this object, the Directors, as the charity Trustees, have complied with the duty in s.17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s published general and relevant sub-sector guidance concerning the operation of the public benefit requirement under that Act.

Strategic Aim and Intended Effect

The strategic aim of Upton House School, for the public benefit as a charitable independent school, is to provide the best education possible for each child, through a lively, challenging, and broad-based curriculum and sound teaching methods, provided in a creative and stimulating environment. The school aims to develop its pupils as courteous, considerate, and wellmannered children through its ethos, values and close working relationship with parents and the local community.

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Upton House School Limited (Company Limited by Guarantee) Report of the Council of Management

Objectives for the year

The main objective of the Council of Management continues to be the provision of the best education possible for all pupils, allowing them to receive individual attention and consideration, thus enabling them to develop at their own pace. The strategy for doing this is to maintain high levels of teaching and pastoral care standards and to provide the best facilities possible.

Specific objectives for the year, which were successfully achieved, were

Principal Activity

The principal activity continues to be the provision of a day school for both boys and girls aged 2-11. At the end of the year there were 89 boys and 176 girls enrolled at the school. Compared with 65 boys and 184 girls in 2019/20, A third of pupils are now boys.

Bursaries & Public Benefit

The school supported 11 (2020 - 9) children with bursaries in the year at a total cost of £82,206 (2020 - £68,965), with need assessed by the Bursary Committee on a means tested basis. The school transferred £70,333 (2020 - £70,333) to the bursary fund to meet this commitment, with balance remaining in the fund for future years. The awards included 3 (2020:4) 100% awards, including 3 hardship awards. The remaining 8 awards were for between 50% and 80%.

In addition to the bursary support above, the school provided a free place to 1 child in Nursery (2019 – 1) at a cost of £3,049 (2020 - £3,049).

In the public interest, the school continues to participate fully and enthusiastically in local events and makes its facilities available, subject to child protection requirements, to local organisations for educational and recreational events and activities for both children and adults. Prior to the pandemic, five organisations hired the school facilities regularly and a further seven did so on an ad-hoc basis. Unfortunately, all letting activity, save for holiday provision for Upton House pupils, had to stop due to the pandemic, however this will resume in 2021/22.

The school lent its two minibuses free of charge to one local maintained primary school and was expecting to lend to a second, but this was cancelled due to the pandemic.

The School paid for the installation and on-going running costs of a community defibrillator installed on its boundary wall during the year.

Upton House School pupils continued with their initiative to reduce single-use plastic in School and at home and met with representatives from other local schools to share their ideas in this area.

Fundraising

The School does not undertake any fundraising activity outside its own community, and any funds raised internally are for the benefit of other charities. Upton House Families (UHF, previously the PTA), which is a separate but linked organisation, raises funds from parents and others for the benefit of the school, which are spent on projects agreed with the school.

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Upton House School Limited (Company Limited by Guarantee) Report of the Council of Management

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Operational performance

In 2020/21 the school has maintained its high standards of pastoral care and academic achievement which were reflected in the May 2017 ISI report that, once again, awarded Upton House the highest possible grade of “excellent” in all areas. This year has seen a continued focus on pupils’ well-being and mental health, with the appointment of a part-time Well-Being Co-ordinator in January 2020, who worked full-time during the closure and for the rest of the term to support the school’s community, pupils, families, and staff.

At the end of the summer term there were 265 pupils (2020 – 249) on roll, we expect to see a continued improvement in pupil numbers into 2021/22 onwards, driven by the decisions taken in previous years to expand the school covering both in the Nursery provision and becoming a fully co-ed school for children aged 2 to 11 years.

In the summer of 2021, 18 girls left the school to move on to senior schools, 15 scholarships were awarded and 47 offers. This summer 2022, 19 girls will leave Upton, with 14 scholarships and 41 offers.

Destination of 2021 Leavers

Destination of 2022 Leavers

The school enhances the educational experience of its pupils by raising awareness of the world around them, by fundraising for local, national, and international charities with donations totalling £11,241 (2020 - £5,535) in the year, £6,334 to Alexander Devine Charity, £4,132 to Wexham Park Hospital Charity and £775 to the NSPCC.

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Upton House School Limited (Company Limited by Guarantee) Report of the Council of Management

Investment performance

The school’s bursary fund is a designated fund and is held in four investment funds managed by the Charities Official Investment Fund (COIF), with a balance held on deposit with the same organisation. The investments were valued at £72,209 as at 31 August 2021 and yielded an overall return of 4% in the year. Trading in the COIF Charities Property fund in which the school had reduced its investment during 2018/19, was suspended from March to August 2020 but has now recommenced. The value of the investment in this fund at 31 August 2021 was £9,860.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The school made an operational surplus of £24,167 (2020 – £19,038) in the year, which after depreciation and unrealised gain on investments, resulted in a net deficit of £ (151,334) (2020 - £ (167,967)). The continued impact for the coronavirus pandemic and associated addition costs including an estimate £17,500 on extra cleaning costs, £12,000 on enabling remote learning to continue in 2020/21. The school also spent an additional £65,000 on marketing the school virtually. The school continued to make claims made under the CJRS (furlough) scheme and statutory sick pay scheme totalling £7,399.

Capital expenditure during the year was £61,642 (2020 - £67,180), £7,640 was invested in planning for a new front porch, £18,700 was invested to replace the sliding gates and £19,900 in relation to the rubber external flooring. The balance was spent on various maintenance projects.

Gross donations received totalled £5,643 (2020 - £35,740), of which £1,206 related to matched funding donation towards our IT investment, £810 from Form 6 collection to invest in new screens and the balance Upton families who were delighted by the school’s response to the pandemic and chose to donate the balance of their fees, or in some cases a different amount, in the Summer Term. Grants were received from the Royal Borough of Windsor and Maidenhead totalling £1,497 (2020 - £3,919), being a surplus of nursery education funding, which was applied to the support of the early years department and including a specific grant of £270 to support 2 disadvantaged children.

The Council of Management agreed to transfer £70,333 (2020 - £70,333) from unrestricted reserves to a designated fund to increase the ability of the school to award bursaries. Considering the level of bursaries awarded this year, and the investment gain, the net balance on the designated bursary fund was £92,261 at the end of the year.

Investment powers and policy

These are governed by the Articles of Association, which permit funds to be invested in any manner provided appropriate advice is taken. The Council of Management keeps under review the investment risks and rewards. The only investments currently held are those of the designated bursary fund.

Reserves and financial health

At the end of the year, there were restricted reserves of £nil (2020 - £nil). After the transfer of £70,333 to the designated bursary fund, the balance of unrestricted reserves was £3,233,603 (2020 - £3,379,376).

These funds are invested in the school’s fixed assets and are therefore not expendable as free reserves. Free reserves are defined as reserves which are freely available and exclude restricted funds, designated funds, and any fixed assets.

In common with other independent schools, the Council of Management have invested substantial sums into the school site in recent years and have a continuing programme of refurbishment, development, and investment to develop and maintain excellent facilities for our pupils. Although the free reserves are at a negative balance, this illustrates the extent of investment in the school, and is a common practice by independent schools which have to finance their own capital investment plans. The Council considers that, given the value of fixed

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Upton House School Limited (Company Limited by Guarantee) Report of the Council of Management

assets owned by the school, the available banking facility, and the expected increase in the pupil roll, there is no urgent need to build up a free reserve. The Council recognises that the level of reserves fluctuates during periods of investment in the school and arrangements with the bank are in place to provide an adequate ‘safety net’ when and if required. The Reserves Policy is reviewed on an annual basis with due consideration of risks.

EQUALITY, DIVERSITY AND INCLUSION

At Upton House School we are committed to providing equality of opportunity for all pupils and staff, and to providing a working environment which is free from discrimination, prejudice and harassment. We encourage respect and consideration for others and recognise and value the school as a safe place for learning. The staff at Upton recognise that inequalities exist in all levels of society and believe that, as educators, we have a crucial role to play in eliminating racism, sexism and all forms of discrimination. We can promote equality by dealing with bullying, racial abuse and sexism immediately and by educating the young people in our care without prejudice.

PLANS FOR FUTURE PERIODS

The key objective for the future remains as reported above. The Council of Management will continue to maintain and update the facilities of the school as required. Any funds surplus to operational requirements, and which are not required to update the school’s facilities, will be directed into the bursary fund, to widen access to the opportunities offered by Upton House School, and/or used to reduce the school’s borrowing and build up free reserves.

RESPONSIBILITIES OF THE MEMBERS

The Members (who are also Directors and Trustees of Upton House School for the purposes of company law) are responsible for preparing the Report of the Council of Management and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

The Members are responsible for keeping proper accounting records which 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. The Members 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.

DISCLOSURE OF INFORMATION TO AUDITORS

In so far as the Members are aware:

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Upton House School Limited (Company Limited by Guarantee) Report of the Council of Management

AUDITORS

The appointment of auditors will be proposed at the annual general meeting in accordance with section 485 of the Companies Act 2006.

Approved by the Council of Management on 23 May 2022 and signed on its behalf:

Mrs V Barker Chair

Registered office: 115 St Leonard’s Road, Windsor, Berkshire, SL4 3DF

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Upton House School Limited (Company Limited by Guarantee) Independent Auditors Report

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UPTON HOUSE SCHOOL

Opinion

We have audited the financial statements of Upton House School (‘the company’) for the year ended 31 August 2021 which comprise of 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.

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Upton House School Limited (Company Limited by Guarantee) Independent Auditors Report

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:

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 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 9, 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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Upton House School Limited (Company Limited by Guarantee) Independent Auditors Report

higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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:

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Upton House School Limited (Company Limited by Guarantee) Independent Auditors Report

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 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.

23 May 2022

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

Devonshire House 60 Goswell Road London EC1M 7AD

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Upton House School Limited STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure statement) for the year ended 31 August 2021

Notes
INCOME FROM:
Charitable Activities
School fees
3
Other educational income
4
Other income
Other trading income
5
Investments
Investment Income
6
Voluntary sources
Grants and donations
7
Total income and endowments
EXPENDITURE ON:
Costs of raising funds
8
Interest and other costs
Charitable activities
8
Education
Total expenditure
8
Net operating income/(expenditure)
Net gains on investments
13
Net income/(expenditure)
Transfer between funds
Net movement in funds
Fund balances brought forward
Fund balances carried forward
19, 20		 Unrestricted
funds
£
2,914,151
261,651
4,915
643
13,042		 Restricted
funds
£
-
-
-
-
790		 Total
2021
£
2,914,151
261,651
4,915
643
13,832		 Total
2020
£
2,420,071
275,213
5,766
713
223,406
3,194,402 790 3,195,192 2,925,169
12,826
3,338,586		 -
790		 12,826
3,339,376		 12,532
3,082,496
3,351,412 790 3,352,202 3,095,028
(157,010)
5,676		 -
-		 (157,010)
5,676		 (169,859)
1,892
(151,334)
-		 -
-		 (151,334)
-		 (167,967)
-
(151,334)
3,477,198		 -
-		 (151,334)
3,477,198		 (167,967)
3,645,165
3,325,864 - 3,325,864 3,477,198

All of the above amounts relate to continuing activities.

The accompanying notes form part of these financial statements.

Page 15

Upton House School Limited

BALANCE SHEET as at 31 August 2021

Notes
FIXED ASSETS
Tangible assets
12
Investments
13
CURRENT ASSETS
Stocks
14
Debtors
15
Cash at bank and in hand
16
NET CURRENT LIABILITIES
TOTAL ASSETS LESS CURRENT LIABILITIES
17
NET ASSETS
FUNDS
Unrestricted funds - general
19
Unrestricted funds - designated
19
CREDITORS: Amounts falling due within
one year
CREDITORS:Amounts falling due after
more than one year		 2021
£
3,827,493
74,039		 2020
£
3,947,025
67,724
3,901,532
26
107,477
238,546		 4,014,749
897
76,641
141,597
346,049
(734,601)		 219,135
(604,579)
(388,552) (385,444)
3,512,980
(187,116)		 3,629,305
(152,107)
3,325,864 3,477,198
3,233,601
92,263		 3,379,376
97,822
3,325,864 3,477,198

Approved by the Council of Management and signed on its behalf on 23 May 2022

Mrs V Barker Chair of the Board of Governors

The accompanying notes form part of these financial statements. Company Number: 00677794

Page 16

Upton House School Limited

CASHFLOW STATEMENT for the year ended 31 August 2021

CASH FLOW STATEMENT
Notes
Net cash inflow from operating activities
25
Cash flows from investing activities:
Bank interest received
Dividends received
Interest element of finance lease rental payments
Proceeds from sale of investments
Payments to acquire fixed assets
Payments to acquire investments
Net cash outflow from investing activities
Financing:
Loans received
Loans repaid
Net cash outflow from financing activities
Increase/(decrease) in cash
beginning of the reporting period
end of the reporting period
Cash and cash equivalents at the
Cash and cash equivalents at the		 2021
£
160,557
4
639
1,239
-
(61,642)
(639)		 2020
£
142,357
129
584
4,021
-
(67,180)
(583)
(60,399) (63,029)
50,000
(53,209)		 -
(53,210)
(3,209) (53,210)
96,949
141,597		 26,118
115,479
238,546 141,597

Page 17

Upton House School Limited ACCOUNTING POLICIES for the year ended 31 August 2021

1 ACCOUNTING POLICIES

Upton House School Limited is a company limited by guarantee with registered number 00677794, incorporated and domiciled in England and Wales. Its registered office is 115 St Leonard's Road, Windsor, Berks, SL4 3DF.

1.1 BASIS OF PREPARATION

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.

These financial statements are prepared on the going concern basis, under the historical cost convention as modified by the revaluation of investments and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been applied consistently throughout the year, are set out below.

1.2 GOING CONCERN

During the year the charitable company made a loss of £151,334 (2020: £167,967) and had net assets of £3,325,864 (2020: £3,477,198) at the balance sheet date. The Trustees 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 charitable company to continue as a going concern.

The School’s activities, together with the factors likely to affect its future development, performance and position are set out in the Report of the Council of Management. There has been a significant improvement in pupil numbers going into 2021/22 and interest in the School from prospective families remains high.

The School has produced forecasts and projections for at least 12 months from the date of approval of these financial statements and these show that the School should be able to operate without the need to draw down on its current overdraft facility.

After making appropriate enquiries, the Council of Management has concluded that there is reasonable expectation that the charitable entity remains financially viable in the long-term and it will have adequate resources to continue in operational existence for the foreseeable future and it is there for appropriate to prepare the financial statements on the going concern basis.

On this basis the Council of Management have concluded that the School is a going concern and continues to adopt the going concern basis in preparing the financial statements. 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.

1.3 COMPANY LIMITED BY GUARANTEE

The Company is limited by guarantee, the guarantors at the present time being the Members, to the extent of £1 each.

Page 18

Upton House School Limited ACCOUNTING POLICIES for the year ended 31 August 2021

1.5 DONATIONS AND FUND ACCOUNTING

Donations received for the general purposes of the School are included as unrestricted funds. Donations restricted by the wishes of the donor or the terms of an appeal are taken to restricted funds. Donations required to be retained as capital in accordance with the donor’s wishes are accounted for as endowments – permanent or expendable according to the nature of the restriction. Voluntary income received by way of grants is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific service, are recognised when the company becomes unconditionally entitled to the grant. Income is deferred when the donor attaches conditions outside the charitable company's control or specifies that the resources are to be used in a future accounting period.

1.6 EXPENDITURE

Expenditure is allocated to expense headings, which aggregate all costs relating to the category either on a direct cost basis, or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates.

All costs associated with the provision of education are allocated to Charitable Expenditure. Only the costs directly associated with, or incurred solely in, Raising Funds are allocated to this category. For example, the costs of kitchen and domestic staff who are employed on a short term basis during the school holidays are allocated to the Costs of Raising Funds whereas the costs of the permanent staff are allocated to Charitable Expenditure because they would have to be paid in any event. Likewise, only premises costs that are incurred because of, or to support, the letting activities are allocated to the Costs of Raising Funds.

Governance costs comprise the costs of running the Trust, including strategic planning for its future development, external audit, and all other costs of complying with constitutional and statutory requirements.

1.7 TEACHING COSTS

Supplies of games equipment, books, stationery and sundry materials are written off when the expenditure is incurred.

1.8 NETTING OFF OF EXPENSES AND RELATED INCOME

No netting off of expenses and income takes place within the accounts unless the School has received income from and incurred expenses on special fundraising events or activities. Under these circumstances it may include only the net figure in the Statement of Financial Activities.

1.9 FUND ACCOUNTING

All unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Designated funds are unrestricted funds earmarked by the Council of Management for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor.

Page 19

Upton House School Limited ACCOUNTING POLICIES for the year ended 31 August 2021

1.10 FIXED ASSETS AND DEPRECIATION

All fixed assets are used in direct furtherance of the School’s objectives. Fixed assets are included in these financial statements at their original cost less accumulated depreciation and accumulated impairment losses provided to date. Individual assets of any category costing less than £500 are not capitalised in the accounts.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Freehold buildings and improvements -50 years Plant and machinery - 5% on cost Fixtures and fittings - 15% on cost Vehicles - 15% on cost Freehold land Not depreciated

The cost of freehold property represents the historical value recorded in the books of Upton House School consisting of £4,590,991, the value placed in 2001 on the land and buildings and the net cost of additions since that date. The Council are of the opinion that the current value of the School's land and building is substantially in excess of the figure shown in the financial statements. The buildings have an insured value of £12,280,922 (2020: £11,814,399).

1.11 STOCKS

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

1.12 PENSIONS

Full-time and part-time teaching staff employed under a contract of service are eligible to contribute to the Teachers’ Pension Scheme (TPS). The TPS, a statutory, contributory, final salary scheme is administered by Capita Teachers’ Pensions on behalf of the Department for Education and Skills. The scheme is defined benefit.

The School also pays contributions into a Group Personal Pension Scheme for Support staff. The Scheme is a defined contribution pension scheme. The assets of the Scheme are held separately from those of the School in an independently administered fund. The Pension Scheme charge represents contributions payable by the School in accordance with the rules of the Scheme.

1.13 LEASES AND HIRE PURCHASE CONTRACTS

Rentals paid under operating leases are charged to the Statement of Financial Activities evenly over the period of the lease.

1.14 INVESTMENTS

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

1.15 CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.16 FINANCIAL INSTRUMENTS

The School has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company 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 15, 16 and 17 for the debtor and creditor notes. Page 20

Upton House School Limited ACCOUNTING POLICIES

for the year ended 31 August 2021

1.17 TAXATION

The Company is a registered charity and is exempt from taxation as afforded by Section 505 ICTA 1988.

1.18 EMPLOYEE BENEFITS

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

2 KEY ESTIMATES & JUDGEMENTS

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

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

In the opinion of the Council of Management, the estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements

Useful economic lives

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment and note 1.10 for the useful economic lives for each class of asset.

Recoverable value of fee debtors

The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 15 for the net carrying amount of the debtors and associated impairment provision.

Page 21

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

3 FEE INCOME
The School’s activities are carried out within the UK.
The School's fee income comprised:
Gross fees
Less: Discounts
Less: Bursaries
Less: Scholarships		 2021
£
3,118,821
(122,463)
(82,207)
-		 2020
£
2,567,392
(77,638)
(68,965)
(718)
2,914,151 2,420,071

Included within the above is an amount of £nil (2020: £nil) which relates to restricted income.

4 OTHER EDUCATIONAL INCOME
Extras and disbursements
Registration fees
Fees in lieu of notice
Other income		 2021
£
231,121
11,750
14,330
4,450		 2020
£
243,073
8,400
21,132
2,608
261,651 275,213

Included within the above is an amount of £nil (2020: £nil) which relates to restricted income.

5 OTHER TRADING INCOME
Rent and lettings
(Loss)/Profit on sale of fixtures and fittings		 2021
£
4,915
-		 2020
£
6,060
(294)
4,915 5,766

Included within the above is an amount of £nil (2020: £nil) which relates to restricted income.

6 INVESTMENT INCOME
Interest received
Dividend income		 2021
£
4
639		 2020
£
129
584
643 713

Included within the above is an amount of £nil (2020: £nil) which relates to restricted income.

7 DONATIONS AND GRANTS

DONATIONS AND GRANTS
Donations and gifts
Coronavirus Job Retention Scheme grant
Other grants		 2021
£
5,643
7,399
790		 2020
£
35,740
152,110
35,556
13,832 223,406

Included within the above is an amount of £790 (2020: £3,319) which relates to restricted income.

Page 22

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

8 EXPENDITURE

(a)
Costs of Raising Funds
Teaching
Welfare
Premises and Estates
Administration
Finance Costs
Governance
Total Expended		 £
1,868,805
-
51,316
268,580
-
-
Staff costs
(note 9)		 Other
£
269,293
204,811
213,068
258,469
12,826
23,860		 Depreciation
£
-
-
91,967
89,207
-
-		 Total
2021
£
2,138,098
204,811
356,351
616,256
12,826
23,860
2,188,701 982,327 181,174 3,352,202

Included within teaching costs, other is an amount of £790 (2020: £3,319) relating to restricted expenditure.

Teaching
Welfare
Premises and Estates
Administration
Finance
Governance
Total Expended
(b)
Governance Costs include:
Auditors' remuneration
- Audit Fees
- Additional prior year audit fees incurred
- Accountancy Fees
- Other Audit services		 £
1,789,988
-
38,953
257,608
-
-
Staff costs
(note 9)		 Other
£
267,562
163,963
202,684
156,383
12,532
16,458		 Depreciation
£
-
-
94,466
94,431
-
-		 Total
2020
£
2,057,550
163,963
336,103
508,422
12,532
16,458
2,086,549 819,582 188,897 3,095,028
2021
£
16,357
1,143
3,540
2,820		 2020
£
10,880
2,958
1,000
1,620

Page 23

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

8 EXPENDITURE (continued)
(c)
Administration & Finance Costs
Salaries
National Insurance
Pension Costs
Other Staff Related Costs
Operating Leases
Postage and stationery
Telephones
Marketing and advertising
Inspection costs
Miscellaneous - Administration
Bad debts
Depreciation
Legal and Professional Fees
Bank charges and interest
Loan Interest
Other Finance
9 STAFF COSTS
Wages and salaries
Redundancy and settlement costs
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Teaching
Premises
Support
The number of employees whose emoluments exceeded
£60,000 in the year was as follows:
£60,000 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000		 2021
£
226,363
23,619
18,598
42,852
17,112
3,600
6,036
108,050
2,673
13,535
9,633
89,207
54,978
1,218
1,239
10,369		 2020
£
216,112
21,334
20,162
22,345
13,319
5,970
4,353
43,659
3,773
15,280
4,577
94,431
43,107
1,376
4,021
7,135
629,082 520,954
2021
£
1,733,675
9,282
159,798
285,946		 2020
£
1,655,625
-
152,158
278,766
2,188,701 2,086,549
2021
No.
57
2
8		 2020
No.
61
2
8
67 71
2021
No.
1
-
-
1		 2020
No.
1
1
1
-
2 3

Key management personnel include the Headmistress, Deputy Head, Bursar and Heads of Departments. The total number of key management personnel receiving pay and benefits is 7 (2020: 7). The total pay and benefits received by key management personnel were £510,718 (2020: £564,124) including Employers' NI and pension contributions.

Page 24

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

10 PENSIONS

The school participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £223,226 (2020: £184,962) and at the year-end £nil (2020 - £24,160) 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 consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

The School additionally operates a money purchase Group Personal Pension Scheme. Contributions on behalf of staff within this scheme are made to the Legal and General Group plc. Total contributions made to the Personal Pension Schemes during the year were £62,720 (2020 - £63,018). Contributions to these schemes are charged to the statement of financial activities as they fall due.

The total pension contributions which were still outstanding as at the year end were £7,779 (2020: £7,329).

Page 25

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

11
NET INCOME FOR THE YEAR
Net income is stated after charging:
Depreciation of tangible fixed assets
Loan Interest
Operating lease rentals – other
Auditor’s remuneration
Audit services for the school- current year
12
TANGIBLE FIXED ASSETS
Freehold
Property
£
Cost:
at 1 September 2020
4,590,791
Additions
7,640
at 31 August 2021
4,598,431
Depreciation:
at 1 September 2020
1,128,077
Charge for year
91,967
Disposals
-
at 31 August 2021
1,220,044
Net book value:
at 31 August 2021
3,378,387
at 31 August 2020
3,462,714		 11
NET INCOME FOR THE YEAR
Net income is stated after charging:
Depreciation of tangible fixed assets
Loan Interest
Operating lease rentals – other
Auditor’s remuneration
Audit services for the school- current year
12
TANGIBLE FIXED ASSETS
Freehold
Property
£
Cost:
at 1 September 2020
4,590,791
Additions
7,640
at 31 August 2021
4,598,431
Depreciation:
at 1 September 2020
1,128,077
Charge for year
91,967
Disposals
-
at 31 August 2021
1,220,044
Net book value:
at 31 August 2021
3,378,387
at 31 August 2020
3,462,714		 Plant
&
Equipment
£
409,609
-		 Fixtures
&
Fittings
£
1,012,969
54,002		 2021
£
181,174
1,239
17,112
16,357
Motor
Vehicles
£
49,175
-		 2020
£
188,897
4,021
13,319
10,880
Total
£
6,062,544
61,642
4,598,431 409,609 1,066,971 49,175 6,124,186
1,128,077
91,967
-		 151,466
20,481
-		 800,370
63,638
-		 35,606
5,088
-		 2,115,519
181,174
-
1,220,044 171,947 864,008 40,694 2,296,693
3,378,387 237,662 202,963 8,481 3,827,493
3,462,714 258,143 212,599 13,569 3,947,025

The Handlesbanken loan of £39,907 included within creditors is secured over a fixed and floating charge on the land and buildings.

13 INVESTMENTS

INVESTMENTS
Valuation at 1 September 2020
Additions
Gains/(Losses) arising from movements in valuations
Valuation at 31 August 2021		 Listed
investments
£
67,724
639
5,676		 2021
£
67,724
639
5,676		 2020
£
65,249
583
1,892
74,039 74,039 67,724

Page 26

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

14 STOCK
Stock Clothing
15 DEBTORS
Fees and extras
Less provision for doubtful debts
Other debtors
Prepayments and accrued income
16 CREDITORS
Amounts falling due within one year:
Loans
Trade creditors
Taxation and social security costs
Fee Deposits
Fees in advance
Other creditors
Accruals
Deferred income:
Brought forward
Released in year
Received in year
Carried forward		 2021
£
26		 2020
£
897
26 897
2021
£
76,883
(27,073)
-
57,667		 2020
£
27,428
(17,464)
125
66,552
107,477 76,641
2021
£
43,457
46,834
40,829
9,500
479,058
18,649
96,274		 2020
£
53,209
26,832
36,823
11,600
350,272
35,219
90,624
734,601 604,579
2021
£
350,272
(350,272)
479,058		 2020
£
325,437
(325,437)
350,272
479,058 350,272

Deferred income relates to schools fees received in advance for the following term.

Page 27

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

17 CREDITORS DUE AFTER ONE YEAR
Amounts falling due after more than one year:
Bank loan
School fee deposits
Fees in advance
Movement on loans
In one year or less
Between one and two years
Between two and five years
After five years
Deposits held maturing as follows:
In one year or less
Between one and two years
Between two and five years		 2021
£
46,450
130,300
10,366		 2020
£
39,907
112,200
-
187,116 152,107
2021
£
43,457
10,648
31,945
3,857		 2020
£
53,209
39,907
-
-
89,907 93,116
2021
£
9,500
9,100
121,200		 2020
£
11,600
6,900
21,700
139,800 40,200

The School has a bank loan in place with Handelsbanken. The term of the bank loan is 10 years to 2022. The bank loan attracts interest at 2.3% above the LIBOR 3 month rate, reviewed quarterly in May, August, November and February each year. The School has the option to fix the rate on any quarterly review date but so far has chosen not to. The bank loan is secured with a first legal fixed charge over all land and buildings. The bank loan was fully repaid in May 2022.

The school took out a bounce back loan with HSBC in April 2022 for £50,000. The loan is taken out over a period of 6 years with repayments starting in May 2022. The first year of the loan is interest free, thereafter the interest is charged at 2.5%.

18 FINANCIAL INSTRUMENTS

2021 2020
£ £
Carrying amount of financial assets
Financial assets measured at fair value through profit and loss 74,039 67,724

Page 28

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

19 STATEMENT OF FUNDS

Unrestricted funds:
General reserve
Designated fund/Bursaries
Total restricted
Total funds
Unrestricted funds:
General reserve
Designated fund/Bursaries
Total restricted
Total funds		 £
3,379,376
97,822
at 1
September
2020		 Income
£
3,193,763
639		 Expenditure
£
(3,269,205)
(82,207)		 Transfer
Between
Funds
£
(70,333)
70,333		 Gains/
(losses)
£
-
5,676		 £
3,233,601
92,263
at 31 August
2021
- 790 (790) - - -
3,477,198 3,195,192 (3,352,202) - 5,676 3,325,864
£
3,551,316
93,849
at 1
September
2019		 Income
£
2,921,137
713		 Expenditure
£
(3,022,744)
(68,965)		 Transfer
Between
Funds
£
(70,333)
70,333		 Gains/
(losses)
£
-
1,892		 £
3,379,376
97,822
at 31 August
2020
- 3,319 (3,319) - - -
3,645,165 2,925,169 (3,095,028) - 1,892 3,477,198

The Designated Bursary fund represents monies raised for the purpose of assistance with school fees for pupils of the school.

The Restricted funds represent nursery education funding which was spent on resources and training in relation

Page 29

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

20 ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets
Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets		 Unrestricted
funds
£
3,827,493
-
346,049
(734,601)
(187,116)		 Designated
funds
£
-
74,039
18,224
-
-		 Restricted
funds
£
-
-
-
-
-		 2021
Total
£
3,827,493
74,039
364,273
(734,601)
(187,116)
3,251,825 92,263 - 3,344,088
Unrestricted
funds
£
3,947,025
2,475
219,135
(604,579)
(152,107)		 Designated
funds
£
-
65,249
-
-
-		 Restricted
funds
£
-
-
-
-
-		 2020
Total
£
3,947,025
67,724
219,135
(604,579)
(152,107)
3,411,949 65,249 - 3,477,198

21 COMMITMENTS UNDER OPERATING LEASES

at 31 August 2021, the company had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

Due within one year
Due between two and five years		 2021
Equipment
21,830
35,052		 2020
Equipment
21,285
28,045
56,882 49,330

22 RELATED PARTIES

During the year the School made direct payments to third parties for Trustees' training in relation to their role. The cost of these, plus travel expenses to attend, amounted to £125 (2020: £114). There was a reimbursement of Trustee expenditure of nil (2020: £nil) during the year.

One (2020: two) Trustees have a total of one (2020: two) child being educated at the School.

The current Headmistress has two children being educated at the School, both in receipt of staff discount.

Three (2020: One) Trustees received gifts during the year for a total of £495 (2020: £195) on their retirement.

During the year the School solicited IT services to support the response to the coronavirus pandemic from the spouse of the Headmistress and employed the spouse of another related party to the value of £80,902 (2020: £51,476). During the year the school employed children of senior management to the value of £30,669 (2020: nil).

During the year the School incurred costs of £nil (2020: £2,525) in relation to the hire of a swimming pool at a school of which a Trustee is the Headteacher.

Page 30

Upton House School Limited NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

23 COMPANY STATUS

The Company is a registered charity and is limited by guarantee. Members' liability is limited by individual guarantees to a maximum of each in accordance with the Articles of Association.

24 CAPITAL COMMITMENTS

At 31 August 2021 the school was contracted to capital expenditure totalling £nil (2020: £nil).

25 NOTES TO THE CASHFLOW STATEMENT

NOTES TO THE CASHFLOW STATEMENT
Reconciliation of operating result to net cash inflow from
operating activities
Net movement in funds
Gains on investments
Depreciation
Bank interest received
Dividends received
Interest payable
Profit/(Loss) on sale of Fixed Assets
Increase/(Decrease) in creditors
(Increase)/Decrease in debtors
(Increase)/Decrease in stocks
Analysis of changes in net debt
Cash and cash equivalents
Cash
Overdrafts
Cash Equivalents
Borrowings
Debt due within one year
Debt due after one year
Total
At 1
September
2020
141,597
-
-		 Cash
flows
96,949
-
-		 2021
£
(151,334)
(5,676)
181,174
(4)
(639)
(1,239)
-
168,240
(30,836)
871		 2020
£
(167,967)
(1,892)
188,897
(129)
(584)
(4,021)
294
95,943
31,913
(97)
160,557 142,357
Other non-
cash
changes
-
-
-		 At 30 August
2021
238,546
-
-
141,597
-53,209
-39,907		 96,949
53,209
-50,000		 0
-43,457
43,457		 238,546
-43,457
-46,450
-93,116 3,209 0 -89,907
48,481 100,158 0 148,639

Page 31