Registered number: 01053039 Charlty number: 309100 LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) TRUSTEES. ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020
LUDGROVE SCHOOL TRUST LIMITED (A company Ilmlted by guarantee) CONTENTS Page Reference and admlnlstratlve details of the Charity. it5 directors and advisers Trustees. Annual Report Trustees. Responslbllltie5 Statement io Independent Auditor's Report Consolldated Statement of Financial Activities 14 Consolidated Statement of FinancTal Position 15 Company Statement of Financial P051tion 16 Consolidated Statement of Cash Flows 17 Notes to the Flnancial Statements 18-37
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020 Directors P D Edey, Chairman C L Butterworth, Deputy chaimian G W Barker N R Brooks R N T Cormack R M den Besten A B Henshilwood A J Hinchliff B J Holden W S Johnston M A Smyth-osbourne D D Vigors R M Wiggin Company secretary M E Brittain Company reglstered number 01053039 Charlty registered number 3091(M) Page 1
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020 Reglstered office Ludgrove School Wokingham Berkshire RG40 3AB Audltor Nexla Smith & Williamson Chartered Accountants Statutory Auditor Onslow House Onslow Street Guildford Surrey GU1 4TL Bankers Barclays Bank PIC POBox61 Bracknell Berkshire RG12 1GJ Natwest Bank PIC 13 Market Place Reading RG1 2EG Bank of Scotland 600 Gorgie Road Edinburgh EH11 3XP Page 2
LUDGROVE SCHOOL TRUST LIMITED (A company limlted by guarantee) TRUSTEES, ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 AUGUST 2020 The directors present thelr annual report and the flnanclal statements for the year ended 31 August 2020. The financial statements consolidate the results of the School and Ludgrove School Foundation Limited. Legal and admlnlstrative details The School is a private company limited by guarantee incorporated under the Companies Acts 1948 to 1967, registered number 01053039, and a registered charity? number 309100. The Company was incorporated on 4 ay 1972 and its governing document is the Memorandum and Articles of Associatlon. Dlrectors The directors, who are a150 governors and trustees. of the School at 31 August 2020 and during the year were: P D Edey, Chairman C L Butterworth, Deputy chairman G W Barker N R Brooks E C Chappell Iresigned 11 March 20201 R N T Cormack R M den Besten lappointed 24 June 20201 A B Henshilwood A J Hinchliff lappointed 12 February 20201 B J Holden W S Johnston M A Smyth-osbourne D D Vigors R M Wiggin D D Vlgors and R M den Besten have boys who attended the khool during the year. Fees were pald on normal commercial terms. There are no trustees other than the directors. Meeting5 of the full board of directors were held three times during the year, virtually in the summer term. As well as these meetings, there is frequent communication between the directors and there are sub-cornmittee meetings with appropriate professional advisors in attendance. A Covid-19 Sub-committee of Directois was set up to a5515t the School and provide oversight in relation to dealing with the effect of Covid-19 on the School. Regular contact is maintained wth the headmaster between full board meetings. Details of new legislatlon, new regulations and news of other significant developments which will affect the School, together with appropriate training material, are sent to the directors as they arise. The Board is responsible for identifylng, recruiting and appolnting new directors. New directors are inducted by individual board members, the headmaster and company secretary. The day to day runnlng of the School is delegated to the headmaster, S W T Barber and deputy headmaster, W S D Austen. Page 3
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) TRUSTEES. ANNUAL REPORT {INCORPORATING THE STRATEGIC REPORTI CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 Objectlves and actlVTtTes The principal aim and activity of the Company continues to be the provision and promotion of a first class education. Ludgrove seeks to be a school where boys can grow and develop in a happy, caring environment, learn an awareness and concern for others around them and achieve their full potential, at the same time as providing facilitie5, employment and resources for the local community of Wokingham. The Company's strategies for achieving its aims include the recruitment, employment and training of a high quality, caring and professional workforce. the maintenance of a high standard of academic, moral and personal education. the maintenance, continual improvement and, when necessary, the addition of facilities at the School,. and making available and seeking opportunities for the use of the School's grounds and facilitles by other schools, clubs and other organisations in the local community. The School had 191 (2019.. 191) pupils on the register at the year end. The School rose to the extraordinary challenges thrown up by the Covid-19 pandemic, whlch meant the School was required to be c105ed physically for most of the Summer term. Teaching took place virtually and every effort was made to provide as complete an all round educatlon as was possible in the circumstances. Some staff were furloughed for the Summer term but all received 100% of thelr salaries. Fee5 charged to parents were reduced to reflect the fact that the pupils were not able to attend the School for most of the term, resulting in a substantially reduced surplus for the Summer term. Throughout, the School followed the relevant guidance. The School was one of the first in the country to welcome some boarders back once permitted to do so. Achlevements and performance As always we remain unashamedly ambltlous for our boys in whatever they do, partTcularly on the academic front and it is a fact that every year, with a non-selective intake in Year 4, our boys achieve incredible academic success. We were delighted that all the top year boys gained entry to twelve distinguished schools, Including ten to Eton, fourteen to Radley, four to Harrow, three each to Marlborough and Sherborne, two to Wellington, and one each to Bryanston, Charterhouse, St. Paul's, Stowe and Winchester. When one thinks of a curriculum it Is very easy to focus on the academic side of things. However, life outside the classroom is just as much a part of a child's education and sporting activity) cultural, musical and artistic studies cotbtinue to be an important part of life at the School. Sadly, Covid-19 meant such activitTes could only take place remotely in the Summer Terffl, but before that, team games of football and rugby were played against other schools at all ages and at all levels of ability. Additional matches are arranged in hockey, tennis, squash, five5, 5wimming* golf, chess, general knowledge, judo and athletics. Music and drama continue to play an important role in School life and all the boys take part in public speaking and poetry reciting events as well as in debates. The theatre, in its Slxth year, continues to exceed expectation5 prov?ding another spectacular dimension to our comrnunity. It has wthout doubt enhanced the confidence and character of the boys providing a 215t Century platform for their performance5. It is a150 a venue which attracts high quality 5peaker5 and the lectures enjoyed this year have significantly enriched us all. Once again the Chapel Choir sang at a charity Carol Service at St. Luke's Church, Chelsea, in aid of the Henry van Straubenzee Memorial Trust. The School's dramatic production 'Oliverl in December involved over forty boys. Sadly, Covid restrictions prevented both the Middle School (Year 61 Play and the Fours, (Year 5) Summer Production from taking place. During the summer holidays the construction of the Exploration Centre neared Tts completion and there was continued investment in ICT as well as a refurbishment of some dormitories. Likewise, there was re- painting of the exterior of the Chapel and extensive general repairs and redecoration. Page 4
LUDGROVE SCHOOL TRUST LIMITED (A company Ilmited by guarantee) TRUSTEES. ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 Public Beneflt Ludgrove strives to fulfil its charitable objects to promote and provlde for the advancement of education for the benefit of both its pupils and the wider community. The Governors, as charity trustees, have a duty to report in their Annual Report on the public benefit provided by the School. The Govemors have given consideration to the Charity Commisslon's general guidance on publlc benefit, and in particular to it5 supplementary public benefit guidance on running a charity and charging for services, and have concluded.. 1. That there are clearly identifiable beneflts from the School's work which relate directly to Its aims as set out above. 2. There 15 no significant detriment flowing directly from the School's work which we consider needs to be balanced against those benefits; 3. That the benefits which the schcK>l provides are wdely available. A bursary policy has been established and funds put aside to provide a genuine opportunity for those who cannot afford the School's fees to benefit from it. Bursary pollcy The School has a subsidiary charitable foundation to raise money to be available for the funding and advert15ing of scholarshTPS and bursaries to be offered by the School. Until the foundation has raised sufficient fund5 to be able to provide such funding, the School makes a budgetary provision of an appropriate and affordable proportion of gross fee income to be applied to means tested bursaries Iranging up to 100% remission of fees). This bursary funding is available for all prospective and existing pupils including those in receipt of Contlnuity of Education Allowance and those supported by the Royal National Children's SpringBoard Foundation. Ludgrove is proud to be a RNCSF approved school. A bursary policy is in operation and is available to be viewed on the School's website. In addition, the School has arrangements in place with certain public schools for the Identification of potential bursary candidates. Ancillary or Incldental educatlonal and other assoclated actlvitie5 Locally Ludgrove does not exist in isolation and is part of the wider community. It offers educational support to members of the public on different levels, employs many local people and wherever possible supports local suppliers and businesses. During the year the school facilities were used on numerous occasions for the educational benefit of teachers and pupi15 from other schoo15. It is our intention lo build on existing relationships to forge stronger links with local communlty schoo15. in pafticular.. During the first national lockdown the school has sUPPOrted the community by producing 500 protective visors which were distributed to local schools, surgeries, care homes and hospices. With the national Shortage of PPE, organisations of this type were struggling to source items such as this and were treTnendously grateful of the support. In addition, a number of furloughed staff volunteered to cook, pack and deliver meals for vulnerable school age children and their familie5 in conjunction with the Grub Club, a local organisation set up to feed children in recelpt of free school meals during school holidays. The staff volunteered thelr time and the school allowed use of the kitchen and provided the ingredients. While the school was closed deliveries to 160 people in 33 families were taking place twce weekly. During the lockdown links were forged with local care homes and a large number of our boys corresponded wth, and sent Easter cards to, elderly resident5 which was greatly appreciated. Page 5
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) TRUSTEES. ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 Ludgrove has entered into a partnership with a cluster of six local state schools and employs a part-time administrator who is responsible for identifying and implementing opportunities for collaborative working with those schools. In addition, Ludgrove provides a budget to allow the organisation of a range of curriculum enrichment events, ranging from large scale events reaching 1,000 + students to targeted activities designed to focus on small groups with specific needs. Ludgrove provldes the use of the pool and pay5 the salary of a specialist swlmming teacher to work with poor and non-swimmer5 in years 7 and 8, from a local state-funded secondary school, with a view to making them competent swimmers. This will be continued on a rolling basis with candidates for the prograrne being identified each year at the start of their secondary school career5. Lltdgrove has made a specialist EAL teacher available one day a week to work one-to-one and with small groups of children with little or no English in KS1 and KS2 at three local state-funded primary schoo15. The schools do not have the specialist resources to provide the right level of support so Ludgrove's input both releases local school staff to work elsewhere and ensures that the children make the best progress posslble with their English language development. Ludgrove has made a specialist teacher of Classics available one morning per week to deliver 'Archaeology of Language, course to gifted and talented English students in years 7, 8 and 9 at a local state-funded secondary school. About 180 children are benefitting from this experience During the year a quantity of surplus books wa5 identified and distrlbuted to local state schools to be made available to children who otherwise would have no access to books during school holidays. This helps to ensure that literacy skills do not deteriorate during perlods away from school. Ludgrove's drama department lent a variety of props and costumes to local state-funded primary schools for use In thelr end-of-year productions. In addition to the above, the minibuses, swimming pool and sport5 hall are all used by the wider community. Six members of staff are currently serving on the governing bodies of local state schools. The School will continue to further foster links with the local community and Local Authority funded Schools focusing on the provision of access to the School's facilities and opportunities to share expertise in academic, cultural and sporting activities as well as regularly reviewing how it can best deliver its charitable objectives. Fundralslng All fundraising activities for the School are carried out by OL¢r staff with assistance from parents for speciflc fundraising events. The School does not use professional fundraisers. All fundraising activities are managed by the Head of Development and monitored by the directors. The School's subsidiary charity> The Ludgrove School Foundation, carries out fLtndraising activity for the Group and during the year raised £95,97912019'. £850.3441 in donations. Page 6
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) TRUSTEES. ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 No complaints relating to fundraising activities have been received by the School during this financial year. The School does not currently subscribe to any speciflc fundraising standards or scheme5 but con5ider5 that it has set appropriate standards for the operations and management of its fundraising activilie5. In particular the School considers that its processe5 and controls should ensure that vulnerable people and other members of the public are protected f rom any unreasonable intrusion. Reserves polTCy The Group's reserves of £11,715.364 (2019.. £11,959.497) are held to enable the School to meet its objectives. The unrestrlcted reserves are substantially represented by fixed assets enabling the School to provide its services. During the year an amount of £893,715 was transferred from designated funds to unrestricted funds to cover Exploration Centre cost5 and to offset the small 1055 suffered in the Summer term a5 a result of the School closure in the School 12019.. £477,946 was transferred from unrestricted funds into designated funds). The Group also holds £770,616 (2019.. £1, 191,362) in restricted funds, as explained in note 19. £479,630 was transferred from restricted funds in the year, mainly in respect of the cost of the Exploration Centre which has been partially funded by donations restricted for this purpose. Investment policy The Company's investments are held a5 cash. This cash and the Companys unrestricted funds are held by three different banks. Some of the cash that Is not immediately required Is held on time dep051tS. Market value of land and buildings The directors do not consider it possible to quantify the difference between the net book value and the market value of the Company's fixed assets without a professional valuation. Guarantee Each of the directors has guaranteed to contrlbute to the asset5 of the Company a sum of £1 in the event of a deficiency on winding up. Voluntary help During the year various individuals gave their time in supporting the School's activitie5. The valije of this substantial support cannot be readily quantified and has not been included In the financial statements. Flnanclal Review The surplus for the year amounted to £180,867 {2019.. £1,231,267). This surplus is before actuarial gains and losses on the defined benefit pension scheme. The actuarial loss for 2020 was £425,000 (2019.. £933,000) and the net decrease in funds totals C244,133 (2019.. £298,267). At the year end, the Group had retained reserves of £11,715,364 (2019.. £11, 959,497) of which £9,947,243 (2019.. £8,535,351) relates to tangible fixed assets in the school and the balance of these funds is to be used in financing current and future developments. During the year there was capital expenditure of £1,704,254 (2019.. £521. 113). The principal key financial performance indicator5 monitored by the governors are number of boys and operating surplus. The operating surplus has reduced on the prior year as a result of the directors, policy of seeking to keep fees as manageable as possible, while maintaining the necessary investment in the school and its staff. The number of boys in the school at the year end was 191 12019: 191 I and the directors consider this to be satisfactory. Page 7
LUDGROVE SCHOOL TRUST LIMITED {A company limited by guarantee) TRUSTEES. ANNUAL REPORT {INCORPORATING THE STRATEGIC REPORT) CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 The Ludgrove School Foundatlon The Ludgrove School Foundation, a wholly owned subsldiary of Ludgrove School Trust Llmited and a registered charity with the objects of the advancement of education, in particular by the support and promotion of Ludgrove School, had a deficlt for the year of £811,800, after making donations of £863,114 to the School (2019.. surplus of £790,368), and is consolidated in these accounts. Remuneratlon of Key Management Personnel The remuneratlon of staff is set by the board w5th the objective of providing appropriate incentives to encourage first class performance and of rewarding members of staff fairly for their contributions to the success of the School. Dellvery of the School's charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single component of the School's charrtable expenditure. Staff remuneration is reviewed annuallyj Wth benchmarking exercises against other comparable independent schools carried out as appropriate to ensure the School remains aware of the broader issues of pay and employment condition5 elsewheie. Impact of COVID-19 In early 2020, a coronavirus pandemic, COVID-19, emerged. The duration of this pandemic and the wider economic impacts are as yet unknown. In the UK there were immediate social and economic restrictions imposed, including the Government mandated closure of all schools. Ludgrove responded by arranging for the boys to travel home immediatelyi and the School buildings closed on 23 March 2020. The boy5 participated in lessons remotely for the duration of the Summer Term with a partial re-opening for some groups of boys from 1 June 2020. Plans for future periods The Exploration Centre was partially opened Trn September 2020 and promises to be an excellent addition to the School. The School was open as usual throughout the Michaelmas Term 2020 but closed again. as directed by the Government, for the first half of the Lent Term 2021. Robust remote learning plans are in place and the school is confident in its ability to function effectively remotely and safely physically depending on the guidelines laid down by the authorities. Principal risks and uncertalntles The board has assessed the major risks to which the School is exposed, In particular those related to the operations and finances of the Sch(x)l and is satisfied that system5 are in place to mitigate exposure to the major risks. The directors. risk assessment process has identified those risks standard in owning and operating any private school. These include inter alia financiallfiscal, operational, legallregulatory, strategic, and reputational risks. These are regularly and carefully monitored by the directors and appropriate risk management measures implemented. The Company keep5 a risk register, to which newly identified risks are added as and when they are noted. Consideration is given to appropriale mitigation of all risks identified. The whole register is reviewed annually by the directors. The School put in place and maintains a separate COVID-19 related risk register. Page 8
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) TRUSTEES, ANNUAL REPORT {INCORPORATING THE STRATEGIC REPORT) CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 The principal risks to the school arise as a result of the importance of maintaining Its outstanding reputation. This ensures thal that school is able to attract sufficient boys and to recruit and retain the highest quality Staff. This is of paramount importance to the directors who closely monitor all the factors that influence these areas to ensure that any risk to the school is minitnal. The high level of demand for place5 and the school's excellent track record of supporting boys with gaining places at their first choice of public School are testament to their success in managing these risks. In addition, the school has a significant deficit on its defined benefit pension scheme. Thls scheme is now closed, and the directors have approved a deficit repayment plan. The repayment plan carefully balance5 the need to reduce the deficit with the operational needs of the school and will have a very limited Impact on operational finances. The governors have appointed a dedicated board of directors to manage the risks associated with the scheme,. these directors work closely with a team of professional adviser5 to manage and mlnimise any risks associated with the scheme and to ensure compliance wth all legislatlon. Provision of information to auditors Each of the persons who are directors at the time when thls Directors, Report Is approved has confirmed that: so far a5 that director is aware, there is no relevant aLsdlt information of whlch the Charitable Company's auditors are unaware,. and that director has taken all the step5 that ought to have been taken as a director in order to be aware of any information needed by the Charitable Company s auditor5 in connection with preparing their report and to establish that the Charitable Company's auditors are aware of that information. This report, incorporating the Group Strategic Report, was approved by the directors on and signed on their behalf by: LO March 2021. P Edey Director Page g
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) Trustees, Responsibilities Statement The trustees Iwho are also directors of the Charitable Company for the purposes of company lawl are responsible for preparing the Trustees, Annual Report lincorporating the Strategic Report) and the financial Statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statement5 for each financial year which give a true and fair view of the state of affairs of the Charitable Company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financSal statements, the trustees are required to: select suitable accounting FX)licie5 and then apply them cons1Stently' observe the methods and principles in the CharTrties SORP. make Judgments and accounting estimates that are reasonable and prudent,. state whether applicable UK accounting standards have been followed, subject to any material departure5 disclosed and explained in the fTnancTal Statements. and prepare the financial Statements on the going concern ba515 unless it is inappropriate to presume that the charitable group will continue in bus7ness. The trustees are responsible for keeping adequate accountlng record5 that are sufficient to show and explain the Charitable CoTnpany's transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 10
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF LUDGROVE SCHOOL TRUST LIMITED Opinion We have audited the financial statements of Ludgrove School Trust Limited {the 'Parent Charitable Company'l and its subsidiary (the 'GrcxJp' I for the year ended 31 August 2020 which comprise the Consolldated Statement of Financial Activities, the Consolidated and Company Statements of Financial Position, the Consolidated Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting f ramework 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: give a true and fair view of the state of the Group's and of the Parent Charitable Company's affairs as at 31 August 2020 and of the Group's income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {1SAs {UKI) 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 Group and Parent 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. ConcluSTons relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAS (UK) requlre us to report to you where: the trustees, use of the going concern basis of accounting in the preparation of the financial statements 15 not appropriate. or the trustees have not disclosed in the flnancial statements any identified material uncertainties that may cast significant doubt about the Group's or the Parent Charitable Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authori5ed for issue. Page 11
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF LUDGROVE SCHOOL TRUST LIMITED (continued) Other informatlon The other information comprises the information included in the Trustees, Annual Report and Consolidated Financial Statements, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other Information. Our opinion on the financial statements does not cover the other information and, except to the extent otheNise explicltly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otheNise appears to be materially misstated. If we identify such material Tnconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Tru5tees' Annual Report, which includes the Strategic Report and the Directors, Report prepared for the purposes of company law, for the financial year for whlch the financial statements are prepared is consistent with the financial statements. and the Strategic Report and the Directors, Report included within the Trustees, Annual Report have been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exceptlon In the light of the knowledge and understanding of the Group and the Parent Charitable Company and their environment obtained in the course of the audlt, we have not identified material misstatements in the Strateglc Report or the Directors, Report Included within the Trustees, Annual Report. We have nothTng to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate and sufficient accounting records have not been kept by the Parent Charitable Company• or returns adequate for our audit have not been received from branches not visited by us,. or the Parent Charitable Company financial statemen15 are not in agreement with the accounting records and returns,. or certain disclosures of trustees, remuneration Specified by law are not made. or we have not receTved all the Information and explanations we require for our audit. Responsibilitie5 of trustees As explained more fully in the Trustees, Responslbllltles Statement set out on page 10, the trustees (who are directors of the Parent Charitable Company for the purposes of company lawl are responsible for the preparation of the financial statement5 and for being satisfied that they give a true and fair view, and for such internal control a5 the trustee5 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Page 12
LUDGROVE SCHOOL TRUST LIMITED (A company limlted by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF LUDGROVE SCHOOL TRUST LIMITED {contlnued) In preparing the financial statements, the trustees are responsible for assessing the Group'5 and the Parent Charitable Company's ability to continue a5 a going concern, disclosing) as applicable, matters related to going concern and using the going concern basls of accounting unless the trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audlt of the flnanclal statements We have been appointed as auditor under the Companles Act 2006 and under section 151 of the Charities Act 2011, and report in accordance with those Acts and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements a5 a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our oplnion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Mi55tatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economlc decisions of users taken on the basi5 of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.or .uk/auditorsres onsibilitie5. This description forms part of our auditor's report. Use of our report This report 15 rnade solely to the Parent Charitable Company's members and trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken 50 that we might state to the Parent Charitable Company's members and trustees, those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume responsibility to anyone other than the Parent Charitable Company* and the Parent Charitable Company's members and trustees as a body, for our audit work, for this report, or for the opinion5 we have formed. Julle Mutton (Senior Statutory Auditor) for and on behalf of Nexla Smlth & Williamson Statutory Auditor Chartered Accountants Onslow House Onslow Street Gulldford Surrey GU14TL Date: 19 April 2021 Page 13
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME ft EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020 Unrestricted RestrTCted Deslgnated funds funds funds 2020 2020 2020 Total funds 2020 Total funds 2019 Note INCOME FROM: Donations Charitable activitie5 Other trading activities Investments Other income 29,876 4,850,745 17,238 13,239 120,663 68,932 98,808 4,850,745 17.238 13,239 120,663 814,960 5,426,767 16,349 15,359 1,097 TOTAL INCOME 5,031,761 68,932 5,100,693 6,274, 532 EXPENDITURE ON: Raising funds Charitable activities 33,416 4 876 362 33.416 4 886 410 28,160 5 015 105 TOTAL EXPENDITURE 4 909 778 4 919 826 5 043 265 NET INCOME BEFORE OTHER RECOGNISED GAINS AND LOSSES 121,983 58.884 180,867 1,231,267 Transfers between funds 20 1,373,345 {479,6301 1893,7151 Other recognised {Ios5esllgain5'. Actuarial losses on defined benefit pension schemes 425,oaoi 1425,0001 933,0001 NET INCOME I MOVEMENT IN FUNDS FOR THE YEAR 1.070.328 {420,746) 1893,715) 1244.1331 298,267 Reconciliation of funds: Total funds at I September 2019 7,250,775 1, 791,302 3,517,360 11, 959,497 11,661,230 TOTAL FUNDS AT 31 AUGUST 2020 .321,103 770,616 2,623,645 11.715, 364 11,959,497 All activities relate to continuing operations. The notes on pages 18 to 37 form part of these financial statements. Page 14
LUDGROVE SCHOOL TRUST LIMITED {A company Ilmited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2020 2020 2019 Note NON CURRENT ASSETS Property, plant and equipment 15 9,947,243 8,535,351 Investments 16 2 121 411 2 119 964 12,068.654 10,655,315 CURRENT ASSETS Trade and other recelvables 17 205,490 352,746 Cash and cash equlvalents 2 722 752 4 047 819 2,928,242 4,400,565 CURRENT LIABILITIES Trade and other payables 18 1 544 532 1 604 383 NET CURRENT ASSETS 1 383 710 2 796 182 TOTAL ASSETS LESS CURRENT LIABILITIES 13,452.364 13,451,497 PROVISIONS FOR LIABILITIES Pension liabillty 22 11,737.000) fl,492,000) NET ASSETS CONSOLIDATED FUNDS Designated funds 20 2,623,645 3,517,360 Restricted funds 20 770,616 1,191,362 Unrestricted funds 20 8 321 103 7 250 775 TOTAL FUNDS 11 959 497 The financial statements were approved by the directors on l 0121 Li and signed their behalf, by: P Edey Page 15
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2020 2020 2019 Note NON CURRENT ASSETS Property, plant and equipment 9.947.243 8.535,351 Investments 16 2 121 411 2 119 964 12,068.654 10,655.315 CURRENT ASSETS Trade and other receivables Cash and cash equivalents 17 933,214 1 609 776 191,699 3 012 154 2,542,990 3,203,853 CURRENT LIABILITIES Trade and other payables 18 1 534 452 1 594 643 NET CURRENT ASSETS 1 008 538 1609210 TOTAL ASSETS LESS CURRENT LIABILITIES 13,077,192 72,264,525 PROVISION FOR LIABILITIES Pension liability 22 1 737 000 1 492 000 NET ASSETS 10 772 525 CHARITY FUNDS Designated funds 20 2.623,645 3,517,360 Restricted funds 20 764.664 410,456 Unrestricted funds 20 7 951 883 6 844 709 TOTAL FUNDS The unconsolldated net surplus of Ludgrove School Trust Limited for the year was £567,667 (2019.. deficit of £492,371). The flnancTal statement5 were approved by the directors on 101312021 and Signed on their behalf, by: P Edey The notes on pages 18 to 37 form part of these financial Statements. Page 16
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020 2020 2019 Note CASH FLOWS FROM OPERATING ACTIVITIES: Net cash generated from operating activities 208,472 1.560,802 CASH FLOWS FROM INVESTING ACTIVITIES: Interest received Purchase of property, plant and equipment Increase in fixed asset Investments 13,239 (1,545.331) 15,359 1311,6591 Net cash used in Investing activltles 1 533 539 298 036 Change in cash and cash equivalents in the reporting period (1, 325,067) 1,262,766 Cash and cash equivalents at the beginning of the reporting period 4.047.819 2,785,053 CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD 404781 NOTE TO THE STATEMENT OF CASH FLOWS: RECONCILIATION OF NET INCOME TO NET CASH GENERATED FROM OPERATING ACTIVITIES 2020 2019 Net income before other reco£ni5ed gains and losses Interest received Depreciation of property, plant and equipment Decreaselllncreasel in trade and other receivables IDecreasel/lncrease in trade and other payables Defined benefit pension scheme adjustments 180,867 113,2391 292,362 147,256 1218,7741 180 000 1,231,267 115,359 286,190 1161,0541 151,758 NET CASH GENERATED FROM OPERATING ACTIVITIES The note5 on pages 18 to 37 form part of these financial statements. Page 17
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 ACCOUNTING POLICIES 1. 1 Basis of preparatlon of financial statements The consolidated accounts are prepared under the Companies Act 2006 and the hlstorical c05t conventlon, in accordance with applicable United Kingdom Generally Accepted Accounting Practice Including FRS 102 "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" IFRS 1021 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with FRS 102 (effective 1 January 20191- Icharities SORP IFRS 10211. Ludgrove School Trust Limited is a school offering educatlon to boys aged 8 to 13, which meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. The Parent Company has taken advantage of the exemptlon available to qualTfying entities under FRS 102 from preparing a Statement of Cash Flows. 1.2 Basis of consolldation The consolidated financial statements present the results of Ludgrove School Trust Limited and its subsidiary undertaking I'the Group'l. The Company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and expenditure account. 1.3 Going concern The School has revised its cashflow pmjections to take account of the COVID-19 related closure from January 2021. The full impact of the pandemic is as yet unknown but the directors have reviewed the funds available to the School together with the expected ongoing demand for places and the future projected cash flow5, and have concluded that the school has adequate resources to continue its activities for the foreseeable future. Additionally, despite the current uncertainty in the wider economy, the strength of the School's Balance Sheet is such that the directors consider that there is currently no material uncertainty over the school's financial viability. Accordingly, they contTnue to adopt the golng concern basis in preparing the financial statements. 1.4 Company status The School Is a registered charity and a private company limTted by guarantee incorporated in England and Wale5. The members of the Company are the directors named on page 1. The registered offTce is Ludgrove School, Wokingham, Berkshire, RG40 3AB. In the event of the Company being wound up, the liability in respect of the guarantee TS limited to £1 per member of the Company. Page 18
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 1.5 Fund accounting General funds are unrestrlcted funds which are available for use at the discretion of the directors in furtherance of the general objective5 of the Company and which have not been designated for other purposes. Designated funds comprlse unrestricted funds that have been set aside by the directors for particular purposes. The alm and use of each designated fund is set out in the notes to the financial statements. Restricted funds represent unspent monles received for a particular donor-specified purpose, as explained in the notes to the financial statements. 1.6 Income All incotning resources are included in the Consolidated Statement of Financial Activities when the Company has entitlement to the funds, it is probable that monies will be received, and the amount can be measured with sufficient reliability. Donated services or facilities, which comprise donated services, are Included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there 15 no financial cost borne by a third party. Income tax recoverable In relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Fee income represents fees, extra5 and disbursements, received for the education of the pupils attending the school, less discount5. Income received from the rendering of tuition service5 IS recognised over the period the service is provided. 1.7 Expenditure Expenditure is accounted for on an accrua15 basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Charitable expenditure comprises those costs incurred by the charity in the delivery of it5 activities and services for its beneficiaries. It includes both cost5 that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with meeting the constitutional and Statutory requirements of the Charity and Include the audit fees and costs linked to the strategic tnanagement of the Charity. All resources expended are inclusive of irrecoverable VAT. Page 19
LUDGROVE SCHOOL TRUST LIMITED {A company Ifmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 1.8 Property) plant and equipment All assets costing more than £2,000 are capitalised. Property. plant and equipment are stated at cost less depreciation. Depreciation is not charged on freehold land. Depreciation on other assets is provided at rates calculated to write off the cost of those assets, le5S their estimated residual value, over their expected useful lives on the following bases: Freehold building5 Leasehold buildings Freehold land Plant and machinery Motor vehicles 2% straight-ITne over the term of the lease not depreciated 15% straight-line 25% reducing balance Included in leasehold properties are buildings held under short leases which are being depreciated at the rate of 2% per annum. In the director5, opinion the leases will be renewed indefinitely. 1.9 Operatlng leases Rentals under operating leases are charged to the Consolidated Statement of Financial Activities on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a 5traight-line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. 1.10 Taxation As a charity, the Company and its subsidiary are exetnpt from tax on income and gain5 under current tax legislation to the extent that these are applied to charitable objects. No tax charges have arlsen in the Group. The Group is unable to recover the input VAT associated with the supply of goods and services as the provision of education is exempt from VAT. The Irrecoverable VAT is included In the total cost applicable to each expense heading. 1. 11 Penslons The Company operates a defined contribution penslon scheme and the pension charge represents the amounts payable by the Company to the fund In respect of the year. The Company additionally maintains a funded deflned benefit pension scheme called the Ludgrove School Staff Pension Scheme. This scheme ceased to accrue benefits for active members as from 31 August 2011. Under the provlslons of FRS 102, any surplus or deficit on the pension scheme 15 included in the Companys Balance Sheet. Page 20
LUDGROVE SCHOOL TRUST LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 1.11 Pensions Ic<Jntlnuedl A defined benefit plan deflnes the pension beneflt that the employee vrill receive on retirement, Usually dependent upon several factors including age, length of service and remuneration. The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the reporting date less the fair value of the plan assets at the reporting date. The defined benefit obligation is calculated using the projected unit credlt method. Annually the GroLJP engages independent actuaries to calculate the obligation. The present value Is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denorninated in sterling and that have terms approximating the e5tirnated period of the future payments I'dlscount rate, l. The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Grwp's policy for similarly held assets. This includes the use of appropriate valuation techniques. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other recognised gainsllosses. These amounts together wth the return on plan agsets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability,. The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where Included in the cost of an asset, comprises- lal the increase in pension benefit liability arising f rom employee service during the period. and Ibl the cost of plan introductions, benefit changes, curtailwnents and settlement5. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This C05t is recognised in the Income and expenditure account as 'Finance expense,. 1.12 Financial instruments The charity has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. Basic financial assets. including trade and other receivable5, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is mea5uied at the present value of the future receipts discounted at a market rate of interest. Such assets are 5ubseqLtently carried at amortised cost using the effective interest method. Ai the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment Ioss IS the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognlsed in profit or loss. Page21
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 1.12 Flnancial instruments (contlnued) If there is decrease in the Impairment loss arising from an event occurring after the impaimient was recognised, the impalrment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the Impairment not previously been recognised. The Impairment reversal is recognised in profit or loss. Financial liabilities are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability. BasTC financial liabilities, Including trade and other payable5 and bank loans, are Initially recognised at transaction price, unless the arrangement constitute5 a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of Tnterest. Trade payables are obligations to pay for goods or service5 that have been acqulred in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current1SabilTties. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost uslng the effective interest method. Financial liabilities are derecognised when the liab711ty Is eXting5hed. that is when the contractual obligation is discharged, cancelled or expires. KEY SOURCES OF ESTIMATION UNCERTAINTY AND JUDGEMENTS The preparation of financial statements in conformity with generally accepted accounting practice require5 tnanagement to make estimates and judgements that affect the reported amount5 of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Defined beneflt penslon scheme The Charity has an obligation to pay pension beneflts to employees. The costs of these benefits and the present value of the obligation depend on a number of factors including life expectancy, salary and pension increases, and the discount rate on corporate bonds. The directors make appropriate judgements and estimates based on professional advice received from the scheme's actuary. The discount rate used as at 31 August 2020 has reduced to 1.60% from 1.90% at the previous year end. This has resulted in a signifTcant increase in the present value of scheme liabilities and therefore an increase in the net deficit recorded on the Balance Sheet. Useful lives of depreclable assets Management reviews its estimate of the useful lives of depreciable assets at each reporting date based upon the utillty of assets. Page 22
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 INCOME FROM DONATIONS Unrestricted funds 2020 Restricted Deslenated funds funds 2020 2020 Total fund5 2020 Total funds 2019 Donations Included in donations income of E814,960 for the year ended 31 August 2019 15 £780,906 which relates to restricted funds and the balance of £34,054 relates to unrestricted funds. INCOME FROM CHARITABLE ACTIVITIES Unrestricted fund5 2020 Restrlcted Designated funds funds 2020 2020 Total funds 2020 Total funds 2019 Fees receivable Extras Non-refundable registration fee5 Discounts and bursaries Release of refundable deposits 4.736,690 263,964 4,736,690 263,964 5, 178,900 352,961 10,497 (160,406) 10,497 {160,406) 14,285 (117,470) (1,909) All income from other charitable activities In 2019 relates to unrestricted funds. INCOME FROM OTHER TRADING ACTIVITIES Unrestricted funds 2019 Restricted Deslgnated fund5 funds 2019 2019 Total funds 2020 Total funds 2019 Rent receivable Other income 4,098 13,140 4.098 13,140 4.098 12,251 All income from other trading activities in 2019 relates to unrestricted funds. Page 23
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 INCOME FROM INVESTMENTS Unrestrlcted funds 2020 Restricted Designated funds funds 2020 2020 Total fund5 2020 Total funds 2019 Investment income All Investment income in 2019 relates to unrestricted funds. OTHER INCOME Unrestricted funds 2020 Restricted Designated fund5 fund5 2020 2020 Total funds 2020 Total funds 2019 Insurance proceeds Job Retention Scheme grant income 1,097 120,663 120,663 120.663 120,663 All other income in 2019 relates to unrestricted funds. EXPENDITURE ON FiAISING FUNDS Unrestricted funds 2020 Restricted Designated funds funds 2020 2020 Total funds 2020 Total funds 2019 Bank charges Fundraising events Fundraising administration Staff costs 1,926 2,217 9,558 21,641 2,217 9,558 21,641 26,234 33,416 33.416 All expenditure on raising funds in 2019 relates to unrestricted funds. Page 24
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 EXPENDITURE BY CHARITABLE ACTIVITY Unrestricted funds 2020 Restrlcted Deslgnated funds funds 2020 2020 Total funds 2020 Totol funds 2019 Staff costs Direct costs Depreciation Support costs Inote 10) 3.000.104 655,474 292,361 928,423 3.000,104 665.522 292,361 928,432 2, 956.205 881,675 286, 190 891,035 10,048 10 48 4 886 410 Included in direct costs in 2019 is £13,252 which relates to restricted funds. All other expendlture on charitable activities in 2019 relates to unrestricted f unds. 10. SUPPORT COSTS Basis of Allocation Support costs Total 2020 Total 2019 Other finance expense (note 131 Office costs Pretnises Garden & grounds Professional fees Other support costs Donations Governance costs Direct Direct Direct Direct Direct Direct Direct Direct 26,000 1,788 575,439 75,849 47,604 133.428 5.009 63,306 26,000 1,788 575,439 75.849 47,604 133,428 5,009 63,306 13,(X)O 3,840 561, 143 80,996 66,301 142,526 1,269 21,960 928 23 891 All expenditure on support costs relates to unrestricted funds. 11. NET INCOME This is stated after charqlng: 2020 2019 Depreciation of tangible lixed assets.. owned by the Charitable Group Auditor's remuneration: statutory audit of the Group Statutory audit of the subsidiary Statutory audit of the pension fund accounting services tax advisory 292,362 286, 190 15.000 8,400 10,788 39,144 1,944 6,160 9,600 9,540 54,258 1, 920 Operating lease renta15 Page 25
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 12. STAFF COSTS Staff c05ts were as follows: 2020 2019 Wages and salarie5 Social security Costs Defined contribution penslon cost5 Defined benefit penslon cost (note 221 2.492,417 234,317 295,011 2,521,339 236,411 169.689 55,000 The average monthly number of employees during the year w35 as follows.. 2020 No. 2019 No. Teaching, pastoral and household Maintenance AdmTnistration 93 93 106 706 The number of higher paid employees wa5: 2020 No. 2019 No. In the band £60,001 £70.(X)o In the band £90,001 £100,000 In the band £100,001 £110,000 The Charity and Group's key management personnel comprise the directors, the headmaster, the deputy head and the bursar. Total remuneration pald to key management personnel was £281,991 (2019.. £227,915). 13. DIRECTORS. REMUNEFiATION During the year, no directors received any remuneratTron (2019.. none). During the year, no directors received any benefits In kind (2079.. none). During the year retirement benefits were accruing to no directors (2019.. none) in respect of defTned benefit pension schemes. During Lhe year, no directors were reTmbur5ed expenses (2019.- noneJ- Page 26
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 14. FINANCE EXPENSE 2020 2019 Interest income on pension scheme assets Interest on pension scheme liabilities 172,000 (198.000) 221,000 (234,000) Net Interest on net defined benefit liability 15. PROPERTY. PLANT AND EQUIPMENT Assets under the course of construction Land & Buildings Plant & machinery Motor vehlcles Total Group and Company Cost At 1 September 2019 383,714 10,412,279 1.452.351 30,469 12.278.813 AddTtions 1 591 737 1 704 254 At 31 August 2020 1 975 451 10 472 843 1 504 304 30 469 13 983 067 Depreciation At 1 September 2019 2,598.189 1,119,319 25.954 3,743,462 Charge for the year 208 728 292 362 At 31 August 2020 2 806 917 1 201 824 4 035 824 Net book value At 31 August 2020 7 665 926 480 9 947 243 At 31 August 2019 7 814 090 alLQL2 4 515 a52L351 Included in net book value of land and buildlngs Is: 2020 2019 Freehold land and buildings Long leasehold Short leasehold 9,316,514 62,015 7,922,577 62,980 Page 27
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 16. FIXED ASSET INVESTMENTS Other Investments Group and Company Market value At 1 September 2019 Additions 2,119,964 At 31 August 2020 The investments held are held in sterling cash accounts. 17. TRADE AND OTHER RECEIVABLES Grou Com an 2020 2019 2020 2079 Trade receivables Amounts owed by group undertaklngs Prepayments and accrued income Grant receivables Other recelvables 70.573 88,598 69,073 736,806 126.856 88,598 594 102,028 126.856 7,582 479 278,028 46, 120 479 479 933 214 agL£ Page 28
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 18. TRADE AND OTHER PAYABLES: Amounts falling due within one year Grou Com an 2019 2019 2020 2019 Other payables Accruals Deferred Income (note 191 220,114 505,952 818,466 226,478 405,960 971,945 220,114 495.872 818.466 226,478 396,360 971,805 1 534 452 1594 643 19. DEFERRED INCOME Deferred income relates to school fees pald in advance. Grou Com an 2020 2019 2020 2019 As at 1 September Amounts released to SOFA Amounts deferred in the year 971,945 1971,9451 818,466 817,856 {817,856J 977,945 971,805 {971,8051 818,466 817,856 (817,856) 971,805 A5 ai 31 August 818 Page 29
LUDGROVE SCHOOL TRUST LIMITED {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 20. STATEMENT OF FUNDS - GROUP Brought forward 1 September 2019 Carried Forward 31 August 2020 Income Expendlture Transfers inlout Gain51 ILosse51 General Funds - all funds 7 250 775 4 909 778 5 031 761 1 373 345 425 000 8 321 103 Designated funds Strategic reserve Long-term investment reSee Bursary reserve FacTlitie5 developtnent reserve 750,(M)O 750,000 750,000 750,000 40,002 140,0021 Special projects reserve 1 977 358 853 713 1 123 645 Total designated fund5 Restricted fund5 3 517 360 893 715 2 623 645 Learning SLWPOrt COVID-19 hardsh5p fund Exptoration Centre 10,456 10,456 27.996 732 164 47.464 10,0481 {9,4201 470 210 1 180 906 Total restrlcted funds 1 191 362 479 630 770 616 Total of funds 1 715 364 Page 30
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1 AUGUST 2020 20. STATEMENT OF FUNDS (continued) - COMPANY Brought forward 1 September 2019 Carrleé Forwarc. 31 Au8usI 202( Gain51 {Losse51 Income Expendlture Transfers inlout General Futsds - all funds 6 844 709 5 004 449 4 896 312 1 424 037 425 000 7 951 883 Desi8nated fund5 Strategic reserve Long-term Investment reserve Bursary reserve Facilities developtnent reserve 750,000 750.000 750,OOC 750,OOC 40,002 140.0021 853 713 Special projects reserve Total designated funds Restricted funds 1 977 358 1 123 645 3 517 360 893 715 2 623 645 Leaming support COVID-19 hardship fund Bursary fund Exploration Centre Total restricted funds 10,456 10.456 22,044 31.464 10,048 853 066 19,4201 110.0481 400 000 520 902 732 164 410 456 894 578 530 322 764 664 Total of funds 425 000 Page 31
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 20. STATEMENT OF FUNDS Icontinued) Des18nated funds The Strategic reserve has been set up to cover possible future expenditure of an exceptional nature. The Long-term investment reserve has been set up to cover future expenditure on the School's land and buildings. The Facilities development reserve has been set up for the provision of future development requirements of the School. The Special projects reserve has been set up for potential future requirements of the school. Restricted funds The Learning support fund was created by the donation of funds specifically for learning support. The Bursaries f und was created by the donation of funds in the subsidiary charity specifically for the purpose of providing bursaries. The Hardship fund was created by donations in response to the COVID-19 pandemic and will be used to fund bursaries for families in rbeed as a result of the pandemic. The Exploration Centre fund was created by the donation of funds specifically for the creation of a new Exploration Centre within the school grounds. Page 32
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS GROUP Unrestrlcted Restricted Designated funds funds funds 2020 2020 2020 Total funds 2020 Total funds 2019 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Provisions for liabilities and charge5 9,947,243 9,947.243 8.535,351 2,121,411 2.119,964 2,928.242 4,400,565 (1,544.532) (1,604,383) 2.121.411 502.234 1,655,392 {1.544.5321 770,616 (1,737,000) (1,737,000) (1,492.000) 8 321 103 770 616 2 623 645 11 715 364 11959 497 All tangible fixed assets for 2019 relate to unrestricted funds. All fixed asset investments for 2019 relate to designated funds. Included within current assets for 2019 is E1,191,362 relating to restricted funds, E1,397,396 relating to designated fund5, Wlth the balance of £1,811,807 relating to unrestricted funds. All creditors and provisions for liabilities and charges for 2019 relate to unrestricted funds. COMPANY Unrestrlcted Restricted De57gnated funds funds funds 2020 2020 Z020 Total funds 2020 Total fund5 2019 Tangible fixed assets F7xed asset investments Current assets Creditors due within one year Provisions for liabilities and charge5 9,947.243 9,947,243 8,535,351 2,121,411 2,121,411 2,119.964 502.234 2,542,990 3,203,853 (1,534,452) (1,594,643) 1,276,092 {1,534,4521 764,664 {1,737.0001 (1,737,000) (1,492,000) All tangible fixed assets for 2019 relate to unrestricted funds. All fixed asset investments for 2019 relate to designated funds. Included within current assets for 2019 is £410,456 relating to restricted funds. £1,397,396 relating to designated funds, with the balance of £1,396,001 relating to unrestricted funds. All creditors and provisions for liabilities and charges for 2019 relate to unrestricted funds. Page 33
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 22. PENSION COMMITMENTS Ludgrove School Trust Limited operates a Group Personal Penslon scheme, a defined contribution scheme, for the benefit of certain employees. Contributions in the year were £295,011 (2019.- £766,582). The Group also operates a defined benefit pension scheme. ContributTons by both employees and the Company are held in director administered funds completely independent of the Companys finances. The profit and loss charge is based upon actuarial advice by a professionally quallfled actuary. The Scheme's Actuary 15 not an ewnployee of the sponsoring employer. The amounts recognised in the Balance Sheet are as follows: 2020 2019 Present value of funded obligations Fair value of scheme asset5 (10,668,000) 9 131 000 (10,631.000) Net balance The amounts recognised in the Consolidated Statement of Financial Activities are as follow5.' 2020 2019 Past service cost - Guaranteed Minimum Pension equalisation 55.000 Net interest cost No amounts (2019.. £NII) were included In the cost of assets. Page 34
LUDGROVE SCHOOL TRUST LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 22. PENSION COMMITMENTS (continued) MoveTnents in the present value of the defined benefit obligatlon and the fair value of scheme assets were as follows: Assets Llabilltles Total At 1 September 2019 Interest income on scheme 35setS Expected return on assets Interest cost Actuarial gains I Ilossesl Contributions by the employer Past service cost Benefits paid At 31 August 2020 9.139,000 172,000 4,000 (10.631,0001 (1,492,000) 172,000 4,000 1198,000) 1429,000) 206.000 {198.0001 {429,0001 206.000 390 000 390 000 10 868 000 1 737 000 The date of the most recent actuarial valuation of the scheme assets and liabilitles was 5 August 2019. The Group expects to contribute £nil (2019.. £200,000) to its defined benefit pension scheme Tll 2021 representing contributions made by the school. Principal actuarial assumptions at the balance sheet date lexpre55ed as weighted averages): 2020 2019 Pension revaluation in deferment ICPI, maximum 5% wlth effect f rom 6 April 1999 to 31 July 20071 Pension revaluation in deferment ICPI, maximum 2. 5% with effect from 1 August 20071 Discount rate Pension escalation in payment IRPI, max 2.5% with effect from 1 August 20071 Pension escalation in payment IRPI, max 5% with effect from 6 April 1999 to 31 July 20071 RPI inflation CPI inflation 2.40% 2.40% 1.60% 2.50% 1.90% 2.10% 2. 10% 3.10% 3.20% 2.40% 3.20% 3.30% 2.50% Page 35
LUDGROVE SCHOOL TRUST LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 23. OPEFiATING LEASE COMMITMENTS At 31 August 2020 the Group had annual commitments under non-cancellable operating leases as follows: Land and bulldlngs 2020 2019 Other 2020 2019 Group and Company Explry date: Less than 1 year Between 2 and 5 years Greater than 5 years 46,143 28.053 40, 923 28,053 12.609 6.572 20 17,376 2,604 24. CAPITAL COMMITMENTS The School has a capital commitment in respect of construction costs of the Exploration Centre which amounted to £524,54912019.' £nill at the year end. 25. RELATED PARTY TIiANSACTIONS The Foundation made bursary grants of E10,048 (2019.. £20, 130J and grants in support of the Exploration Centre building project of £853,06612019: Enill to the School during the year. £736,80612019.. £Nill was outstanding at the year end. The Headmaster's wife wot*s at the school and received remuneration in the year of £51,266 12019: £53,304). The Deputy Headmaster'5 wife also works at the school and received remuneration in the year of £35,94012019'. £34,9781. During the year, the Group received donations from Iru5tees of £30012019: £5.0001. There have been no other related party transactions in the reporting period that require disclosure. 26. CONTROLLING PARTY There is considered to be no ultimate controlling party. Page 36
LUDGROVE SCHOOL TRUST LIMITED {A company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 27. SUBSIDIARY Percentage shareholding Company name Country Description The Ludgrove School Foundation United Kingdom 100% Charitable foundation The Charity is the ultimate controlling party of The Ludgrove School Foundation Limited a5 established by its memorandum and articles of association dated 7 August 2012, company number 08170775 and charity number 1149573. The objective of The Ludgrove School Foundation Limited 15 to distribute funds available to Ft in support of charitable purposes approved by its directors. The asset5 and liabilities of the subsidiary which have been included in the consolidated accounts are shown below as are a summary of its income and expenditure. The registered office of The Ludgrove School Foundation is Ludgrove, Wokingham, RG40 3AB. Summary of subsidiary assets and Ilabllltles 2020 2019 Debtors Cash Creditors 9,082 1.112,976 746 886 161,641 7,035,665 Net Assets Income and expendlture summary 2020 2019 Voluntary income Costs of generating voluntary income Donations Professional fees Governance costs IDeficitllsurplus 95,979 133,416) 1863.1141 1741 850,344 (26,234} (20, 130) (1,926) 1811,800) 790,638 Funds brought foNard 1 186 972 396 334 Total 375 172 1 186 972 Page 37