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2020-08-31-accounts

Crosfields School Trust Limited (A company limited by guarantee)

Annual Report and Consolidated Financial Statements

Year Ended

31 August 2020

Registered No. 0584278 (England and Wales) Charity No. 309108

Crosfields School Trust Limited

CONTENTS

Page
Legal and Administrative information 1 - 2
Report of Governors (including Strategic Report) 3 - 15
Independent Auditor’s Report 16 - 18
Consolidated Statement of Financial Activities 19
Consolidated and Company Statement of Financial Position 20
Consolidated Statement of Cashflows 21
Notes to the Financial Statements 22 - 39

Crosfields School Trust Limited

LEGAL AND ADMINISTRATIVE INFORMATION

For the year ended 31 August 2020

STATUS AND ADMINISTRATION

The Crosfields School Trust Limited is a charitable company limited by guarantee, incorporated on 21 May 1957 and registered as a charity on 1 October 1962.

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

COMPANY NUMBER

COMPANY NUMBER 00584278 CHARITY NUMBER 309108 REGISTERED OFFICE Crosfields School AND ADDRESS Shinfield Road Shinfield Reading Berkshire RG2 9BL

GOVERNORS

The governors of the school being also Trustees of the charity and Directors of the charitable company, who served during the year, unless otherwise stated, were as follows:

A Aitkinson (Appointed 7 December 2020)
** C S Bradfield
* S J Bonner (Resigned 13 December 2019)
# C J Brown
S Brown (Appointed 7 December 2020)
^^/* K Clark
* J M Coles (Resigned 5 September 2019)
**/++/@ C J Dering (Chair of Governors, appointed 20 March 2020)
H C Fitzwilliams (Health & Safety representative, Resigned 1 October 2020)
#/**/@ C L Furneaux (Education & Welfare)
^^ N Graham (Resigned 1 July 2020)
# V A M Grantham (Resigned 17 November 2020)
*/++/@ N Habgood (Resigned 29 March 2020)
**/@ M J Hatch (Buildings & Estates)
# M Judd (Resigned 13 December 2019)
R Kapoor
*/++/@ S Lewis (Finance)
^^ J R Lucey
* B Purewal
S S Sachdeva
^^/@ J Sefton Jenkins (IT)
# M Turner (Safeguarding)
# M Wardrop (Appointed 23 April 2020)

Governors are appointed by the board of governors normally at the annual general meeting for a term of three years, but are eligible for re-election.

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Crosfields School Trust Limited

LEGAL AND ADMINISTRATIVE INFORMATION (continued) For the year ended 31 August 2020

OFFICERS

Headmaster: Bursar and Company Secretary:

C D J Watson C J Purdom

SENIOR LEADERSHIP TEAM

C D J Watson Headmaster C Bennett Deputy Head (Academic) – resigned 31 August 2020 S Dinsdale Deputy Head R Ebbage Deputy Head (Academic) – appointed 1 September 2020 J Ireland Head of Juniors A Mallins Deputy Head (Pastoral) J McDowell Head of Pre-Prep K O'Leary Director of Studies C J Purdom Bursar

PROFESSIONAL ADVISERS

BANKERS:

Barclays Bank PLC Broad Street Reading RG1 2HD

Lloyds Bank 24 Broad Street Reading RG1 2BT SOLICITORS: VWV Narrow Quay House Narrow Quay Bristol BS1 4QA Pennington Manches Cooper LLP Apex Plaza Forbury Road Reading RG1 1AX AUDITOR: BDO LLP Level 12, Thames Tower Station Road Reading RG1 1LX INSURANCE BROKERS: Marsh Brokers Limited Rockwood House 9-17 Perrymount Road Haywards Heath RH16 3DU

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS

For the year ended 31 August 2020

ANNUAL REPORT

The governors present their annual report, together with the financial statements for the year ended 31 August 2020 and confirm that the latter comply with the requirements of the Companies Act 2006, the Charitable Company’s Articles of Association (March 2019), the Charities Statement of Recommended Practice (SORP 2015) and Financial Reporting Standard 102 (FRS 102). The annual report is also the Trustees Report as required by Part VIII of the Charities Act 2011 and the Directors’ Report as required by section 417 of the Companies Act 2006.

Coronavirus has had a tangible impact on our day to day educational provision and undoubtedly will continue to be felt for considerable time. The school has had to adapt and overcome the many challenges presented in order to continue to deliver upon its aims and we hope that these effects will be relatively short-lived.

AIMS, OBJECTIVES AND ACTIVITIES

Situated in over 40 acres, Crosfields is a co-educational school with children between the ages of 3 and 13 with an intention of extending this to 16 (see Strategic Review below). An exceptionally friendly school, Crosfields emphasises manners, kindness and good behaviour. Run broadly on Christian principles the school welcomes children of all faiths and none. The girls and boys benefit from a vast range of opportunities provided by a committed and talented staff enhanced by excellent facilities. Though they are taught broadly, the children are also taught thoroughly, preparing them for a considerable selection of schools. Crosfields lays the foundations for these schools, but it also lays the foundations for the adults the children will become.

Aims

The overall intent of Crosfields is to provide an exceptional education that is broad, thorough and enjoyable, enabling children to make the most of themselves and to be considerate of others. In so doing, it has the following aims:

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

Strategies to Achieve the Annual Objectives

The governors have adopted the following strategies in support of the school:

Principal Activities

In setting the school’s objectives and planning its activities, governors have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee-charging. The role of the Crosfields charitable company is to ensure that Crosfields School functions as a co-educational day school and that it continues to thrive in a competitive environment, through the provision of high standards of education and development of children.

The school welcomes pupils from all backgrounds. To admit a prospective pupil, the school needs to be satisfied that the school will be able to educate and develop that person to the best of their potential and in line with the general standards achieved by their peers. Entrance interviews and assessments are undertaken to satisfy ourselves and parents that pupils can cope with the pace of learning and benefit from the education the school provides. An individual’s gender, ethnicity, race, religion or disability does not form part of our assessment processes. The school is an equal opportunity organisation and is committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. The school will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

The school is committed to safeguarding and promoting the welfare of our pupils and expects all staff and volunteers to share this commitment. A team of trained Designated Safeguarding Leads provide the necessary support within the school to fulfil its statutory duties and promote the welfare of children. A governor is nominated to oversee safeguarding policy and practice in school.

Parents are given regular information about their children’s social and academic progress through parent evenings in addition to half termly Attitude to Learning assessments and traditional end of term/year reports. This year, the normal pattern of reports and parent meetings was disrupted by restrictions under the coronavirus lockdown but virtual online parents meetings have been running successfully since June. The school has maintained regular contact with parents throughout the year through direct communications on our learning at home programme, the weekly newsletter, website and social media.

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

REVIEW OF PERFORMANCE AND ACHIEVEMENTS FOR THE YEAR

Operational Performance

The policy of the charitable company is to achieve a high standard of learning within a safe, happy, caring and stimulating environment. The school aims to develop the particular aptitudes of all pupils and help them to fulfil their potential. The school has high levels of expectation and ensures that appropriate challenges are set across a wide curriculum. Staff appraise curriculum content and teaching methods on a regular basis to ensure a continued high quality of education.

The Independent Schools Inspectorate undertook a Focused Compliance and Educational Quality Inspection in September 2019. The quality of the pupils’ academic and other achievements was found to be excellent and the quality of the pupils’ personal development was also considered excellent. The school met the standards in the schedule to the Education (Independent School Standards) Regulations 2014, and relevant requirements of the statutory framework for the Early Years Foundation Stage, and associated requirements.

The average number of pupils in the school during the year was 570 (555 – 2019).

Achievements

The children leave Crosfields to attend a very wide range of schools including local grammar and state schools, independent day schools and boarding schools. The school recorded very high levels of passes enabling entry into grammar schools at Year 6. 9 scholarships were awarded to our pupils in Year 6 and 8 for entry to their chosen senior school. A further 8 scholarship awards were made to our own pupils entering Year 7. All children in Year 8 passed their Common Entrance exams and were successful in attaining places at their chosen schools.

The academic year was undoubtedly marred by the arrival of coronavirus, the restriction of activities in school and the eventual closing of all schools on 20 March 2020. With just a week left of term, a basic learning from home package was put in place. During the Easter break, the school provided childcare facilities for the children of key workers supported by members of staff on a voluntary basis. Teaching staff spent the holidays preparing for remote teaching and learning and for the start of the Summer Term, comprehensive programmes of directed learning, recorded lessons and live teaching across the whole curriculum were in place using SeeSaw and Microsoft Teams. The school reopened for pupils in Nursery, Reception, Year 1 and Year 6 on 1 June 2020. By the end of term, all pupils up to Year 6 were provided with the opportunity to be in school full time. Pupils in Year 7&8 had at least 3 days in school on a rotational basis before the summer holidays. Online support continued for pupils who were unable to return.

12 pupils were selected by the Mathematics Association to take part in a final Bonus Round of the Primary Maths Challenge. In the first stage of the competition 65,000 pupils nationally and internationally took part and only 2,000 are selected for the bonus rounds. This is the highest number of Crosfields children for the past five years. Pupils also participated in the annual Turing Cryptography Competition and the Junior School learned to play Mancala to bolster their maths skills.

Across the year groups, pupils participated in the Junior Language Challenge to learn new languages. 2 pupils from Crosfields were awarded in the top three.

The Learning Empowerment Team support around 12% of pupils with diagnosed learning needs including DCD (Developmental Coordination Disorder/Dyspraxia), dyscalculia, ADHD, ASD, Executive Function, hearing impairment, Speech, Language & Communication and Social Emotional & Mental Health (anxiety). There are also pupils with slow processing, weak working memory or fine and gross motor needs who are provided with additional assistance even though they have not had a specific need diagnosed. 26% of pupils have English as an Additional Language and a number of them are supported through a trained teacher in school.

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REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

Crosfields School Trust Limited

REVIEW OF PERFORMANCE AND ACHIEVEMENTS FOR THE YEAR (continued)

Achievements (continued)

The first two terms of the 2019/20 academic year saw a number of wide-ranging day trips take place across the whole school. In the Autumn Term, some of the places visited included Reading, Ure Museum of Greek Archaeology, The Look Out Discovery Centre, Kidzania and the Houses of Parliament. In the Spring Term children visited Butser Ancient Farm, Watts Gallery Artist Village and Bletchley Park. Unfortunately, due to coronavirus, the ski trip to Italy and a trip to Norway were cancelled, alongside the residential trips for Years 2 - 8 during the Summer Term.

For the second year running, we also had children involved with the Barnardo’s Young Supporters Concert at the Royal Albert Hall. We also had all of Year 5 and 6 involved in two musical events – Wellington College Young Singers Day and Young Voices at the O2.

The co-curricular programme offers all pupils the opportunity to explore, create and find something that interests them. Many learn new skills and many continue to build on skills they already have, but all of them are able to do this within their school environment giving them the security and confidence to try new experiences. Many activities are done purely for pleasure, fitness or curiosity however some provide the opportunity to compete, be graded or take exams. Over the year we have seen awards in gymnastics for 12 pre-prep children and a pupil won a silver medal in the IAPS Judo 10-13 year old boys competition. 60 children were successful in LAMDA examinations with 80% passing at distinction. A new event was the Strictly School Dancing competition that saw Years 1&2 placed second, Years 3&4 third and Years 5&6 winners in their respective age groups. On top of this are numerous dance exams in ballet and modern, once again nearly all receiving the top mark of distinction. A limited programme of extra-curricular activities, including peripatetic music lessons, were offered remotely during the Summer Term.

Over 100 children were registered to take part in Woodley Festival this year, with about half of the children actually performing. The festival had to close its doors early owing to the national lockdown but Crosfields children were still commended for their performances and children across the whole school were involved. In response to this, pieces were shared within school and celebrated within school collects. The Junior School Play and Pre-Prep Cantata at the end of the Spring Term were shared with families online so that children still had the experience of performing to an audience.

We also had 2 firsts for Crosfields. Our ski teams competed in the BISS National Ski Championships at Hemel Hempstead and the English Ski School Association competition in Southampton. Success included a 5th place in the U14 girl’s competition and 3rd place in the Junior girls team event. Two pupils were selected for the National Schools Team. In rowing, we had children competing at the British Indoor Championships where all our competitors achieved personal bests and 3 were placed in the top 10 in the country. In the South of England Indoor Championships, our Year 7 team won silver medals in the relay and we won bronze in the Year 8 boys individual race.

Sport continues to thrive at the school with an emphasis on including all the children in fixtures where possible, however fixtures have been on pause since early March due to coronavirus. The programme consists of rugby, football, netball, hockey and cricket with fixtures also in cross country, basketball, badminton, tennis and athletics. The Head of Cricket has provided a tangible improvement in cricket coaching for girls and boys and links have been established with local cricket clubs to assist with player development pathways.

The Under 9A team had a particularly successful football and rugby season and the U13 Sevens team won the Crosfields Sevens tournament. Two pupils were selected for the ISFA South-Central representative football team in 2019-2020, one pupil achieved rugby academy selection at London Irish and six pupils achieved final selection for Berkshire age group cricket teams. U11 and U13 netball and hockey teams competed at IAPS tournaments and the U8A team were unbeaten in hockey and netball fixtures. Girls football was introduced to the games curriculum with the U10A team runners-up in the Wellington College tournament. Sadly most girls football fixtures were cancelled due to the emerging coronavirus situation.

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

REVIEW OF PERFORMANCE AND ACHIEVEMENTS FOR THE YEAR (continued)

Achievements (continued)

Early in the academic year Crosfields competed for the first time in the English Schools swimming relay competition with Years 7&8, narrowly missing out on the finals. In January, five of the Crosfields swimmers qualified for the Berkshire and Buckinghamshire County Swimming competition, all achieving finals places and accomplishing a total of twelve medals, five of which were gold. Three of these swimmers also achieved regional qualification. During the year Crosfields hosted over fifteen visiting schools allowing over 120 children the chance to compete in the pool from Year 3 through to Year 8. We also hosted a qualifying round of the IAPS Swimming Competition and achieved individual and relay qualification to the national final. This was subsequently cancelled due to coronavirus.

Early in the year, Year 7 pupils constructed wire sculptures. Once under lockdown, a Youtube station was set up to allow children to continue their art experience at home. Microsoft Teams was used as a platform to communicate with the children but also to exhibit children’s artwork and celebrate their creations. Pupils were invited to submit designs for a flag competition judged by the Marine Conservation Society. The winning design will fly from the school flagpole later in the year.

GOVERNANCE AND MANAGEMENT

Governance

Governors are elected by the Board at the annual general meeting and will normally serve for an initial period of 3 years but are eligible to stand for re-election. Governors are selected for the relevant experience and specialist skills which they provide to the school in order to enhance debate and decision making and enable the Board of Governors to carry out its duties effectively and efficiently. There has been some movement in members of the Board of Governors over the course of the past year and the Board consists currently of 16 governors drawn from a wide range of professions including legal, accountancy, hospitality, local government, project management and as well as past and current parents and experienced educators. Governors do not receive any remuneration for their time. All governors are made aware of the need for independence and to declare any conflict of interest which may arise between the school and their own personal or business affairs.

The Board operates within the framework of the Charity Governance Code and applies its principles throughout its work and decision-making.

Crosfields School is a member of the Incorporated Association of Preparatory Schools (IAPS) for the promotion and maintenance of preparatory school standards. It also maintains membership of the Independent School Bursar’s Association (ISBA) and Association of Governing Bodies of Independent Schools (AGBIS).

Recruitment and Training

New governors are frequently existing or former parents and already have a good knowledge of the school. An induction programme is in place to cover the responsibilities of governors as trustees and directors. Governors have made extensive use of the AGBIS webinar programme this year. Visits are encouraged to provide a broader perspective on the governance and management of the school although this has been restricted as a result of coronavirus measures for much of the year.

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

GOVERNANCE AND MANAGEMENT (continued)

Organisational Management and Structure

The full Board of Governors meets each term, or more frequently if required, and determines the overall policy of the school. There are 6 sub committees: the Education and Welfare Committee (EWC) focusing on curriculum and welfare; the Finance Committee (FC) focusing on financial and legal matters; the Building and Estates Committee (BEC) focusing on the maintenance and development of all existing and proposed new buildings and facilities; the IT Committee (ITC) focusing on IT infrastructure, support, training and IT teaching and learning; the Remuneration and Appraisal Committee responsible for recommending the remuneration package of the Headmaster and Bursar (re-established Autumn 20) and for undertaking their biennial performance appraisal and the Health & Safety Committee (H&S) to ensure that the entire premises of the school, including outdoor facilities, are fit for purpose and suitable for the age of children cared for and the activities undertaken. Members of the Senior Leadership Team have been invited to join the various Committees to broaden their experience.

In addition, Governors have established a P16 Programme Board to oversee the educational developments, infrastructure and finance for the new senior school. The Board comprises the Chair of Governors, the Chairs of the main Committees, Headmaster and Bursar.

During lockdown and subsequently, meetings have been held virtually using Microsoft Teams.

The Senior Leadership Team, as detailed on page 2 of this report are responsible for the day to day management of the school and support various committees throughout the year. A member of staff is seconded to the Senior Leadership Team each academic year to give them an opportunity to broaden their experience and skills in preparation for more senior roles. Both the Headmaster and Bursar provide termly reports to the Board of Governors. A Compliance and Governance Co-ordinator was appointed in September 2019 to assist the work of the Bursar as Clerk to the Governors. The Chairman and Chairs of Committees met virtually on a frequent basis during lockdown to provide practical and moral support to the Headmaster and Bursar. The focus was on operational matters, financial sustainability and remote learning provision.

The Senior Leadership remuneration is based on the school’s leadership scale. Yearly inflationary awards may be made for all staff and are agreed through the budget setting cycle.

Serious Incidents

A serious incident has been reported to the Charity Commission in relation to a historical safeguarding issue. The matter is under investigation by the Police. An independent review of safeguarding policy and practice is being undertaken.

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

PUBLIC BENEFIT

Bursary Policy

The governors are committed to broadening access to the school through transformational bursaries. It is important that access to the education the school offers is not restricted only to those who can afford the fees. Crosfields pupils benefit from learning within a diverse community. A great deal of learning occurs through social interaction, conversation and shared experiences which help pupils develop an understanding of the perspectives of other people that will be vital in their adult lives.

Transformational bursaries are awarded for a high proportion or even full fee and provide for children with significant potential but for whom independent education would be otherwise wholly out of reach. The governors also acknowledge that there is a need to provide fee assistance to those families who need some support with the payment of schools fees. All bursaries are discretionary and may be awarded in the form of a discount depending on the financial, compassionate or other pertinent circumstances of applicants. Bursary awards are subject to testing of parental means.

In 2019-20, 7 pupils in Years 7 – 8 were recipients of substantial bursary awards in excess of 60% of the fees (£86,406) and a further 3 pupils were provided with fee assistance following a change in family circumstances (£15,720).

Crosfields has no endowment income. In funding our awards, we are mindful of the need to maintain a balance between fee-paying parents, many of whom make considerable personal sacrifice to fund their child’s education, and those benefiting from the awards. Fee discounts are offered to staff in order to attract and retain the best staff. Further details of our bursary policy and how to apply are available from the school.

Community Engagement

The school provides support to the wider community in a number of ways:

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

GOVERNANCE AND MANAGEMENT (continued)

Community Engagement (continued)

Volunteers

The Crosfields Parents Association is a thriving organisation established to support the school. It achieves this by a full programme of charitable events ongoing throughout the school year. Additionally, the school is very well supported by a large number of parental volunteer helpers.

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

FINANCIAL REVIEW

The financial year generated net incoming resources of £38k (2019 £218k). Income from all activities was £7.5m (2019 £7.5m) with expenditure totalling £7.4m (2019 £7.3m).

As the school prepares for the opening of its senior school, the number of children in the school increased in the financial year to an average of 570. The total number of pupils enrolled at the start of the current year was 592.

The school has a wholly owned trading subsidiary through which non-charitable activities are undertaken. The surplus generated from the trading company is gift aided back to the school.

Reserves Policy

The policy of the governors, through effective budgetary control, is to seek to generate an annual surplus of income over expenditure that enables the school to continue a programme of refurbishment and development whilst servicing its loans and securing its long-term viability. This has been particularly important this year in determining the extent of borrowing necessary for the P16 programme.

The finances, budgets and spend are regularly reviewed at the Finance, Building and Estates, P16 Programme Board and Board of Governors meetings. The school’s unrestricted funds at the end of the year were £7.856m, all of which has been deployed in premises and equipment for use by the school. The governors are of the opinion that the school is well placed to operate efficiently with the day to day working capital being met by careful management of school fees and other sources of income received and bank overdraft where necessary. The school does not have any current free reserves as it is investing in the development of the P16 programme.

The Board convened an EGM in June 2020 to meet its obligations under s124 of the Charity Act 2011 and agreed to enter into a development loan of £8.5m with Lloyds Bank to fund the development of the new senior school building and enabling works. This will enable funds to be drawdown over a period of 30 months whilst construction takes place. The loan then converts into a 12 year term loan with interest only payments for the first 2 years.

Going Concern

Like many, or perhaps most, independent schools, Crosfields concluded that it would be inappropriate to charge the same level of school fees for the Summer Term for a variety of reasons. Governors decided upon a 20% reduction in fees for all pupils except for those in Nursery for whom teaching provision was reduced to 2 ½ days per week and a commensurate fee reduction applied. With national lockdown and restrictions placed on sporting venues, the school’s facilities were closed for 4 months, further reducing the school’s income stream. Meanwhile, prudent management ensured operational costs were reduced wherever possible. 68 members of teaching support and support staff were furloughed under the Government Covid-19 Job Protection Scheme for between 2 and 5 months reflecting the reduced level of day to day activity in school.

The governors reviewed the school’s financial plans in May 2020 in respect of the funding of the P16 infrastructure development and again in June 2020, as part of their normal annual review for setting a budget for the next academic year. Principal financial risks were also considered. On both occasions, they were satisfied that the school had sufficient resources to continue operating for the foreseeable future.

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

Going Concern (continued)

Since then, the effect of coronavirus has also been assessed by the Finance Committee on behalf of the Board in November 2020 reviewing the school’s ongoing forecasts and projections to ensure that it remains financially viable. With regard to the next accounting period, the year ending 31 August 2021, the most significant areas that are likely to affect the charity’s net assets are maintenance of pupil numbers and fee income; continued income stream from Enterprises in the event of a further lockdown; an increase in operating costs to meet coronavirus secure measures; general inflationary pressures including BREXIT; the costs of the employer’s contribution to the teachers’ pension scheme and unplanned delays or additional costs to the building of the new senior school. These are being monitored closely in order that any deterioration in the situation can be mitigated. Since the year-end, the school’s investment property, Isgoed, has been sold with no gain or loss on disposal.

Beyond 2021, financial modelling continues to support the position that a strong surplus will be generated under normal operations and planned CAPEX in support of P16 is achievable. The cash-flow projections for future years indicate that the school will be able to meet its liabilities as they fall due from within current banking facilities.

Governors review the ongoing risks on a termly basis and are aware that Covid-19 and BREXIT constitute significant external risk largely out with their control. There are also risks to the future projections beyond the next 12 months based on pupil numbers and a pessimistic view representing a 6% fall in pupil numbers overall would have a substantial impact on income. Bank covenants and loan repayments could still be met but there would be pressure on future capital expenditure. Governors would have to reassess the affordability of such plans before making any commitments.

The national lockdown announced on 4th January 2021 has meant a return to remote learning for all but vulnerable and key worker children. The governors have considered this and do not believe that it will have a negative impact on the forecasts prepared.

As such, governors remain satisfied that the school can continue operating for the foreseeable future and accounts have been prepared in the knowledge that the school is a financially viable organisation. The governors have reviewed the accounts, financial model, future plans and risks and are confident that the charity is a going concern.

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

STRATEGIC REVIEW

Future Development – Project 16

The governors, in conjunction with the Headmaster, made a strategic decision to extend the school through to 16 years of age (year 11, GCSEs) in response to parental demand and the local market for independent education (Project 16 – P16). The school’s vision is:

Design work for the new senior school building comprising 9 classrooms, library, performance space, café, medical facilities and administrative functions was finalised and planning permission was awarded by Wokingham Borough Council in February 2020. A tender process was undertaken in respect of the main construction contract and the enabling works but owing to the uncertainties surrounding the coronavirus situation, the build project was paused in early April 2020. This pause enabled governors to re-evaluate the school finances in light of reduced income streams during the Summer Term and risks associated with the longer term impact on the school. The underlying financial model was reworked and a new submission made to the Bank to agree funding. This was approved and enabling works started in July 2020 and the main contractor in September 2020.

Numbers for our first P16 cohort – Year 7 in September 2019 – was particularly strong and will provide a sound foundation upon which to establish the new senior school. Pupil recruitment for the current Year 7 entry was undoubtedly impacted by the delay in planning permission, national lockdown and our inability to engage with prospective families in person. The Department of Education has approved an increase in pupil numbers for the whole school to 610 for September 2020.

Staff recruitment has been particularly strong and new secondary specialists have been appointed in Maths, English and Science for September 2020. Work is progressing well in respect of schemes of work, pastoral support and co-curricular provision for the senior years.

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

School Development Plan

Alongside P16, the Headmaster has established a new School Development Plan to ‘To Inspire and To be Inspired.’ The plan has 3 distinct strands Welfare, IT and Inspiring Talks with initiatives for pupils, staff and parents running throughout. The move to learning at home promoted acceleration in the IT programme. Governors provided funds for 40 staff laptops in April 2020 and this was matched by a generous donation which enabled all teaching staff to work fully remotely. Skill levels amongst staff and pupils increased substantially and these have been brought back into the classroom across all curriculum areas for the start of the new academic year.

Risk Management

The Board of Governors conducts regular reviews of major risks to the school and its activities, focusing on those risks that may arise from time to time and which may affect the charitable company’s viability and reputation. The principal uncertainty currently facing the school is the impact of the ongoing coronavirus outbreak. The governors and Senior Leadership Team continue to monitor the outbreak, including Government advice, and acknowledge that the organisation faces a prolonged period of uncertainty. While the evolving nature of the situation means it is not possible to accurately quantify the potential future financial and operational impact, the school is in a good financial position to help manage this risk. Steps are being taken, on an ongoing basis, to balance income and expenditure in order to protect educational and welfare provision and jobs for this academic year and beyond.

A rigorous risk assessment was put in place for the return to school in June. This is regularly reviewed and updated in light of the latest government guidance for schools and workplaces. The school is currently operating as near to normal as possible with year group pods and social distancing. Contingency plans are in place to return to remote teaching and learning and business support should the need arise as a result of a local outbreak or more widespread lockdown.

Other key risks are financial uncertainties with regard to the potential loss of mandatory business rate relief, BREXIT, the employer’s contribution to the teachers’ pension scheme and the continued presence of key employers in the area. Alongside this, governors have noted that sustaining and growing pupil numbers and fee affordability continue to require focus.

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Crosfields School Trust Limited

REPORT OF THE GOVERNORS (continued) For the year ended 31 August 2020

GOVERNORS RESPONSIBILITIES

The governors (who are also directors of Crosfields School Trust Limited for the purposes of Company law) are responsible for preparing the Strategic Report, the Report of the Governors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

The governors confirm that they have complied with the duty in section 17 (5) of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The governors have referred to the guidance in the Charity’s Commission general guidance on Public Benefit when reviewing the school’s aims and objectives and in planning the school’s future activities. In particular, the governors have considered how planned activities will contribute to the aims and objectives they have set.

The governors confirm that so far as they are aware, there is no relevant audit information of which the charitable company's auditors are unaware. They have taken all the steps that they ought to have taken as governors in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.

Approved by the Board of Governors on ………………... and signed on their behalf by:

………………………………………….

C J Dering Chairman of Governors

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Crosfields School Trust Limited

Report of the Independent Auditor to the Governors of Crosfields School Trust Limited

Opinion on financial statements

We have audited the financial statements of Crosfields School Trust Limited ("the Parent Charitable Company") and its subsidiary ("the Group") for the year ended 31 August 2020 which comprise the Consolidated Statement of Financial Activities (Incorporating an Income & Expenditure Account), the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Group and the Parent Charitable Company in accordance with the ethical requirements 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

16

Crosfields School Trust Limited

Report of the Independent Auditor to the Governors of Crosfields School Trust Limited (continued)

Other information

The governors are responsible for the other information. The other information comprises the information included in the Report of the Governors, other than the financial statements and our auditor's report thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

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 Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic Report or the Report of the Governors.

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:

17

Crosfields School Trust Limited

Report of the Independent Auditor to the Governors of Crosfields School Trust Limited (continued)

Responsibilities of governors

As explained more fully in the governors' responsibilities statement set out on page 10, the governors (who are also the directors of the charitable company for the purpose 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 governors 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 governors are responsible for assessing the Group's and the Parent 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 governors either intend to liquidate the Group's and the Parent 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

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councils website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Heather Wheelhouse (Senior Statutory Auditor) for and on behalf of BDO LLP, statutory auditor Reading United Kingdom

Date 27 January 2021

BDO LLP is a limited liability partnership registered in England & Wales (with number OC305127)

18

Crosfields School Trust Limited

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income & Expenditure Account) For the year ended 31 August 2020

Note
Income from:
Donations and legacies
4
Charitable activities
Fees receivable
2
Ancillary income
5
Other trading activities
Income from trading activities
3
Rents and lettings
7
Investment income
6
Total income
Expenditure on:
Charitable activities
8
Cost of raising funds
8
Costs of trading activities
3,8
Total expenditure
Net income before tax
Tax payable
11
Transfers between funds
21
Net gain on investment
13
Net movement in funds
Total funds brought forward
Total funds carried forward
21		 Unrestricted funds
General
Designated
funds
funds
£
£
182,463
-
6,901,236
-
159,546
-
177,457
-
21,641
-
13,012
-
_
_
7,455,355
-
___
___
7,216,027
-
2,388
-
188,874
-
___
___
7,407,289
-
___
___
48,066
-
___
___
(10,248)
-
1,526
(1,526)
-
-
___
___
37,818
-
7,816,990
1,526
___
___
7,856,334
-

 Total
2020
£
182,463
6,901,236
159,546
177,457
21,641
13,012
___
7,455,355
___
7,216,027
2,388
188,874
___
7,407,289
___
48,066
___
(10,248)
-
-
___
37,818
7,818,516
___
7,856,334
 Total
2019
£
29,952
6,833,976
295,542
244,231
20,900
20,645
_
7,445,246
_
7,077,331
1,993
165,820
_
7,245,144
_
200,102
_
-
-
18,000
_
218,102
7,600,414
___
7,818,516

The amounts relate to continuing activities. All gains and losses recognised in the year are included in the statement of financial activities.

The notes on pages 22 to 39 form part of these accounts.

19

Crosfields School Trust Limited

CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION At 31 August 2020

Registered number 00584278
Note
Fixed assets
Tangible fixed assets
12
Investment property
13
Investments in subsidiaries
13
Current assets
Stocks
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due
within one year
15
Net current liabilities
Total assets less current
liabilities
Creditors: amounts falling due
after more than one year
16
Net assets
Funds
Unrestricted funds
General fund
21
Designated fund
21		 Group
2020
£
9,760,371
640,000
-
___
10,400,371
___
1,798
332,074
61,803
___
385,675
(2,034,593)
__
(1,648,918)
___
8,751,453
(895,119)
___
7,856,334
___
7,856,334
-
___
7,856,334
 Group
2019
£
9,000,056
640,000
-
_
9,640,056
_
3,422
287,857
42,872
_
334,151
(1,875,691)
__
(1,541,540)
_
8,098,516
(280,000)
_
7,818,516
_
7,816,990
1,526
___
7,818,516
 Charity
2020
£
9,760,371
640,000
1
___
10,400,372
___
1,798
312,326
45,360
___
359,484
(2,019,189)
__
(1,659,705)
___
8,740,667
(895,119)
___
7,845,548
___
7,845,548
-
___
7,845,548
 Charity
2019
£
9,000,056
640,000
1
_
9,640,057
_
3,422
270,731
1,776
_
275,929
(1,895,881)
__
(1,619,952)
_
8,020,105
(280,000)
_
7,740,105
_
7,738,579
1,526
___
7,740,105

The charitable company has taken advantage of section 408 of the Companies Act 2006 not to publish its own Statement of Financial Activities. The parent company's net income for the year, was £105,443 (2019 - £192,056).

The financial statements were approved and authorised for issue by the Board of Governors of Crosfields School Trust Limited on .................................... and signed on their behalf by:

…..……………………………… C J Dering Chair of Governors

The notes on pages 22 to 39 form part of these accounts.

20

Crosfields School Trust Limited

CONSOLIDATED STATEMENT OF CASHFLOWS For the year ended 31 August 2020

Note
Net income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation of tangible fixed assets
Interest receivable
Investment property rental income
Gain on investment property
Interest payable
Decrease in stock
(Increase)/decrease in debtors
Increase/(decrease) in creditors
(Decrease)/increase in pension deficit contribution liability
Cash generated from operations
Cash flows from investing activities
Interest received
6
Rental income
Purchase of tangible fixed assets
11
Net cash used in investing activities
Cash flows from financing activities
Repayment of borrowing
New bank loan
Interest paid
Net cash from/(used in) financing activities
Decrease in cash and cash equivalents in the year
Cash and cash equivalents at the beginning
of the year
Total cash and cash equivalents at the end
of the year
Relating:
Bank balances included in cash at bank and in hand
23
Bank overdraft		 Group
2020
£
37,818
442,104
(75)
(12,937)
-
13,768
1,624
(34,217)
(127,890)
(3,738)
_
316,457
_
75
12,937
(870,626)
___
(857,614)
___
(400,000)
895,119
(13,768)
___
481,351
___
(59,806)
_
(205,229)
___
(265,035)
_
61,803
(326,838)
___
(265,035)
 Group
2019
£
218,102
420,635
(795)
(19,850)
(18,000)
18,346
251
68,361
155,428
11,853
_
854,331
_
795
19,850
(1,409,060)
_
(1,388,415)
_
(120,000)
-
(18,346)
_
(138,346)
_
(672,430)
_
467,201
_
(205,229)
_
42,872
(248,101)
_
(205,229)

The notes on pages 22 to 39 form part of these accounts.

21

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 August 2020

1 Accounting policies

Company status

Crosfields School Trust Limited ("the Company") is a private company limited by guarantee, incorporated in England and Wales under the Companies Act 2006. The address of the Company's registered office and principal place of business is Crosfields School, Shinfield Road, Shinfield, Reading, RG2 9BL. The members of the Company are the governors. The Company number and members of the Company are named on page 1.

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - Charities SORP (FRS 102), UK Generally Accepted Accounting Practice (UK GAAP) including the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated.

Monetary amounts in these accounts are rounded to the nearest £ except where otherwise indicated.

Going concern

The group has net current liabilities of £1,648,918 (2019 - £1,541,540) at the Statement of Financial Position date. The year ended 31 August 2020 gave rise to a net movement in funds of £37,818. In considering whether the going concern basis is appropriate, the governors have considered the surplus and cash-flow projections prepared for future years. These indicate that the charitable company will be able to meet its liabilities as they fall due and together with arrangements with their bankers forecast that the charitable company will be able to operate within the facilities currently available. The governors have no reason to believe that the current facilities will not be continued and confirm that there is no material uncertainty as to the future of the charitable company. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the statement of governors' responsibilities.

COVID-19 has created material uncertainty for schools in assessing their forward plans. The two main areas of uncertainty relate to the operating model and the financing of the school.

Operating model

Despite difficult wider economic pressures, pupil numbers have continued to grow and the school anticipates an average of 593 pupils this year versus 595 within our forecast (2019 – 566). Fee income for 2020 – 2021 should be close to budget but income from Enterprises and other school activities has been affected already by the continued Covid-19 restrictions under which the school operates. The forecast for the end of the year is currently £105,299 below target revenue of £8.6m but with pupil recruitment continuing, it may be possible to recover some of this. Expenditure is under tighter than ever control and is forecasted to be £7.77m against a budget of £7.85m. The end of financial year forecast shows a cash generation figure of £382,453 (post P16 and CAPEX expenditure) and a surplus of £152,542 against a budget of £168,003. This position has been boosted by the sale of Isgoed, an investment property purchased in 2018. Whilst there was no profit or loss on the sale, the proceeds of £640,000 are a welcome boost to cashflow.

Fee debtors have been understandably higher than in the past. The school provided some fee relief for families in financial difficulties and offered some flexibility in payment terms. Debtors currently stand at £192,641 across 51 pupils. These debts are being actively managed by the Finance Team but 5 have been referred to a third party for collection. We expect the debts to be cleared by the end of the academic year.

22

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

1 Accounting policies (continued)

Going concern (continued)

Financing

The P16 Financial Model which looks in detail at the implications of P16 development, including growth in pupil numbers (income), staff recruitment, expenditure patterns and exceptional costs alongside the capital development plan, was reviewed by Crowe in August 2019 and again in May 2020 as part of the finalisation of the development loan from Lloyds Bank. The report supported the methodology, validated the underpinning principles and provided assurance to Governors in respect of their responsibilities under s124 of the Charities Act.

The P16 Financial Model has been refreshed with the most up to date data and it continues to demonstrate that a strong surplus will be generated under normal operations and planned CAPEX in support of P16 is achievable. The cash-flow projections for future years indicate that the charitable company will be able to meet its liabilities as they fall due and, together with banking arrangements, forecast that the charitable company will be able to operate within the facilities currently available. The school currently operates under a bank overdraft facility of £750k renewable 30 May 2021, and has refinanced their loan during the current year. The loan repayments commence two years after the initial drawdown. The loan facility is available for £8.5m which is repayable by 31 December 2034.

Governors review the ongoing risks on a termly basis and are aware that Covid-19 and BREXIT constitute significant external risk largely out with their control. There are also risks to the future projections based on pupil numbers. A pessimistic view of pupil numbers for 2021/22, representing a 6% fall in pupil numbers overall, when extrapolated out over the following 4 years would have a substantial impact on income. Bank covenants and loan repayments could still be met but there would be pressure on the funding of Phase 2 of the building plans. Governors would have to reassess the affordability of such plans before making any commitments.

Basis of consolidation

The group accounts consolidate the accounts of Crosfields School Trust Limited and its subsidiary undertaking, Crosfields School Enterprises Limited on a line by line basis. The accounts are made up to 31 August 2020. No separate Statement of Financial activities or income and expenditure has been presented for the charitable company alone as permitted by the Companies Act 2006 and the 2019 Charities SORP. The parent company's net income for the year was £105,443 (2019 - £192,056).

The results of the subsidiary undertaking for the year are disclosed in note 3 of the accounts.

FRS102 allows qualifying entities certain disclosure exemptions. The charity, only, has taken advantage of the exemptions for the following disclosure requirement:

23

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

1 Accounting policies (continued)

Fund accounting

General funds are unrestricted funds that are available for use at the discretion of the governors in furtherance of the general objectives of the charitable company and have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the governors for particular purposes. The aim of the designated fund is set out in the notes to the financial statements.

Investment income and gains are allocated to the appropriate fund.

Income

All incoming resources are included in the Statement of Financial Activities when the charitable company is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Fees and similar income

Fees receivable, charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, bursaries and other remissions granted by the school.

Fees received for education to be provided in future years are carried forward as fees received in advance in the Statement of Financial Position. These fees are released to the Statement of Financial Activities over the period in which the school provides the services in future years.

Expenditure

Resources expended are accounted for on an accrual basis. Resources expended are allocated to specific activities without the need for apportionment. The irrecoverable element of VAT is included within the item of expense to which it relates.

Governance costs comprise the costs of running the charitable company, such as the costs of board and committee meetings, preparing statutory accounts and satisfying public accountability.

Donated services

Donated services and facilities are only included as income (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated market value to the charity of the service or facility received.

Grant Income

Payments received from the government for furloughed employees are a form of grant. This grant money is receivable as compensation for expenses already incurred, and where this is not in respect of future related costs, is recognised in income in the period in which it becomes receivable and the related expense is incurred.

Operating leases

Rentals applicable to operating leases are charged to the Statement of Financial Activities on a straight line basis over the period in which the cost is incurred.

24

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

1 Accounting policies (continued)

Tangible fixed assets and depreciation

Expenditure on fixed assets is capitalised except for expenditure incurred on the replacement of assets of low value with a short life. Subsequent costs of repair, renovation and replacement expenditure are written off as incurred in the consolidated statement of financial activities, unless it is probable that such costs will generate future economic benefits.

School buildings are recorded at their historical cost to the charitable company. Depreciation is provided on all tangible assets, except freehold land, in order to write off their cost less residual value over their estimated useful lives at the following annual rates:

Straight line basis
Freehold property: - %
Buildings - 2-12
Sensory garden - 10
Furniture, fixtures and equipment:
Tractor - 15
Computer equipment (educational) - 33.33
Computer equipment (administrative) - 25
Other - 15

Items costing less than £5,000 are written off as an expense as acquired.

Investment property

Investment property is carried at fair value. The governors consider any changes in the fair value on an annual basis, with current market conditions taken into account, and the valuation adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in Statement of Financial Activities.

Investments in subsidiaries

Investments in subsidiaries are stated at cost less any assessed impairment in the asset.

Stocks

Stocks are valued at the lower of cost and net realisable value.

Pension schemes

The charitable company contributes to the Teachers' Pension Scheme, which is a defined benefit scheme, at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme attributable to the charitable company. In accordance with FRS 102 therefore, the scheme is accounted for as a defined contribution scheme and contributions are accounted for when advised by the scheme administrator.

The charitable company also contributes into a defined contribution scheme for non-teaching staff and a defined benefit scheme for senior management. The present value of future contributions relating to the funding of a pension deficit is recognised as a liability.

25

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

1 Accounting policies (continued)

Financial Instruments

The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument, and are offset only when the group has a legal enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise and settle the liability simultaneously.

Financial assets

Trade, group and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairments losses.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the statement of financial activities.

Financial liabilities

Financial instruments are classified as liabilities according to the substance of the contractual arrangements entered into. Trade, group and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled.

Where the arrangements with a creditor constitutes a financing transaction, the creditor is initially measured at the present value of future payments discounted at a market rate of interest for a similar instrument and subsequently measured at amortised cost.

Borrowings

Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Derecognising financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or subsequently all the risks and rewards of ownership are transferred to another party, or if some significant risks or rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the statement of financial affairs.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the UK.

26

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

1 Accounting policies (continued)

Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Significant estimates included within the financial statements include provision for fee debtors, which require a judgement by management regarding the likelihood of recovery. Management review and assess fee debtors on an individual account basis and provide for debts as appropriate. The valuation of the investment property is also considered to require judgement, this will be considered on an annual basis based on market conditions.

Depreciation is another key estimate in the accounts which requires management judgement over the useful life of the assets. The policy has been set out in the notes above.

2 Fees receivable

Fees receivable consist of:
Gross fees
Less: Total bursaries, grants and allowances
Less: COVID 19 Discounts		 2020
£
7,835,717
(448,769)
(485,712)
___
6,901,236
 2019
£
7,230,847
(396,871)
-
___
6,833,976

All fees receivable were unrestricted in the current and prior year.

3 Trading income and expenditure

Crosfields School Trust Limited owns 100% of Crosfields School Enterprises Limited. This company hires out the sports hall and swimming pool at Crosfields Sports Centre and donates its annual taxable profits to the charitable company under the Gift Aid Scheme. Trading results extracted from its audited financial statements are shown below:

Turnover
Administrative expenses
Government grants (HMRC Furlough scheme, see note 4)
Tax charge in relation to Gift Aid (see note 11)
_
Profit for the year
_
Net assets		 2020
£
177,457
(188,874)
32,541
(10,248)
__
10,786
__
10,787
 2019
£
244,231
(165,820)
-
-
_
78,411
_
78,412

27

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

4
Donations and legacies
General
Designated
funds
funds
£
£
Donation of IT support
29,952
-
HMRC Furlough scheme income
152,511
-
___
_
182,463
-
_
_
All donations and legacies were unrestricted in the current and prior year.
5
Ancillary income
General
Designated
funds
funds
£
£
Extra-curricular activities
141,423
-
Other income
18,123
-
___
_
159,546
-
_
_
All ancillary income was unrestricted in the current and prior year.
6
Investment income
General
Designated
funds
funds
£
£
Bank interest receivable
75
-
Investment property rental income
12,937
-
___
_
13,012
-
_
___
All investment income was unrestricted in the current and prior year.
7
Other income
General
Designated
funds
funds
£
£
Rents receivable
21,641
-

 Total
2020
£
29,952
152,511
___
182,463
_
Total
2020
£
141,423
18,123
___
159,546
_
Total
2020
£
75
12,937
___
13,012
___
Total
2020
£
21,641
 Total
2019
£
29,952
-
___
29,952
_
Total
2019
£
270,610
24,932
_
295,542
_
Total
2019
£
795
19,850
_
20,645
___
Total
2019
£
20,900

All other income was unrestricted in the current and prior year.

28

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

8 Analysis of expenditure

2020
Charitable activities
School operating costs
-
Teaching
-
Welfare
-
Premises
-
Support costs
-
Governance
costs
Bank charges and interest
Bad debts
Cost of raising funds
Cost of trading activities
Total expenditure
2019
Charitable activities
School operating costs
-
Teaching
-
Welfare
-
Premises
-
Support costs
-
Governance
costs
Bank charges and interest
Bad debts
Cost of raising funds
Cost of trading activities
Total expenditure		 Staff costs
£
3,900,888
382,476
96,727
532,896
14,382
-
-
___
4,927,369
_
-
138,521
___
5,065,890
_
Staff costs
£
3,717,757
433,349
88,368
479,709
10,971
-
-
_
4,730,154
_
-
124,612
___
4,854,766
 _
 Other
Depreciation
£
£
471,657
75,818
236,832
1,281
889,458
365,005
177,647
-
26,855
-
23,071
-
21,034
-
___
___
1,846,554
442,104
_
_
2,388
-
50,353
-
___
___
1,899,295
442,104
_
_
Other
Depreciation
£
£
801,575
53,790
242,928
1,664
721,897
365,181
106,643
-
22,520
-
29,792
-
1,187
-
_
___
1,926,542
420,635
_
_
1,993
-
41,208
-
_
______
1,969,743
420,635

 Total
2020
£
4,448,363
620,589
1,351,190
710,543
41,237
23,071
21,034
___
7,216,027
_
2,388
188,874
___
7,407,289
_
Total
2019
£
4,573,122
677,941
1,175,446
586,352
33,491
29,792
1,187
_
7,077,331
_
1,993
165,820
___
7,245,144


All expenditure on charitable activities was unrestricted in the current and prior year.

29

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

9 Expenditure

Charitable activities include:
Operating lease charges
Depreciation
Auditors' remuneration (excl VAT)
Audit fees - Crosfields School Trust
- Crosfields School Enterprises Limited
Preparation of statutory accounts
Taxation - compliance services to the subsidiary
Loan interest		 2020
£
4,276
442,104
17,500
2,500
2,000
750
13,768
 2019
£
4,157
420,635
12,500
2,500
1,200
900
18,346

The employer's liability insurance of the charitable company includes indemnity insurance for the governors. The cost of this insurance is £360 (2019 - £669).

10 Staff costs

Wages and salaries
Social security costs
Pension contributions
Pension deficit contribution cost
he average number of employees during the year was as follows:
Teaching
Welfare
Premises
Support
Trading		 2020
£
3,956,634
397,565
715,429
(3,738)
___
5,065,890
___
2020
Number
88
21
3
13
18
___
143
 2019
£
3,959,482
377,798
505,633
11,853
_
4,854,766
_
2019
Number
85
29
3
13
26
___
156

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

The governors received Nil remuneration or other benefit for the year (2019 - Nil). The governors were reimbursed for expenses totalling £462 in the year (2019 - Nil).

30

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

10 Staff costs (continued)

The numbers of employees whose remuneration exceeded £60,000 during the year, were:

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£110,001 - £120,000
£120,001 - £130,000
The number of those higher paid employees who accrued benefits under
a defined benefit pension scheme during the year, were:
Pension contributions for above employees		 2020
Number
3
-
1
-
1
_
4
_
£
68,864
 2019
Number
2
-
-
1
-
_
3
_
£
47,415

Aggregate employee costs of the senior leadership team, as disclosed on page 2, including salary, benefits, pension contributions and national insurance) in the year totalled £752,501 (2019 - £687,705).

During the year, severance pay was awarded to 2 employees, with payments for compensation and pay in lieu of notice totalling £15,726 (2019 - Nil employees - £Nil).

11 Taxation

The tax charge has been recognised in the current period in Crosfields School Enterprises Limited due to the late payment of the 2018 gift aid payment to the parent company.

31

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

12 Tangible fixed assets – Group and Charity

Cost
At 1 September 2019
Additions
At 31 August 2020
Depreciation
At 1 September 2019
Charge for year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019
13
Fixed assets investments- Group and Charity
Investment property
At 31 August 2019
Revaluation during the year
At 31 August 2020		 Furniture,
Freehold
fixtures and
property
equipment
£
£
11,862,276
2,876,419
1,021,014
181,405
_
_
12,883,290
3,057,824
_
_
3,370,366
2,368,273
244,965
197,139
_
_
3,615,331
2,565,412
_
_
9,267,959
492,412
_
_
8,491,910
508,146
_
_		 Total
£
14,738,695
1,202,419
_
15,941,114
_
5,738,639
442,104
_
6,180,743
_
9,760,371
_
9,000,056
_
Total
£
640,000
-
_
640,000
_

The property was purchased during the year ended 31 August 2018. The governors have considered the value of the property at the year-end date based on the section 119 report and valuation as provided by Haslams an independent professionally qualified valuer, as at 30 September 2020. The valuations were undertaken in accordance with the Royal Institute of Chartered Surveyors' Appraisal and Valuation Manual. This has resulted in a gain on investment of £Nil (2019 - £18,000).

32

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

13 Fixed assets investments- Group and Charity (continued)

2020
Investment in subsidiaries (Charity only)
£
Investment in subsidiary company
1
_
Registered
Company
Company
Office
number
Class
Crosfields School
Enterprises Limited
Crosfields School Shinfield Road,
Shinfield, Reading, Berkshire, RG2 9BL
08332333
Ordinary
14
Debtors
Group
Group
Charity
2020
2019
2020
£
£
£
Trade debtors
122,126
87,088
108,076
Other debtors
45,753
-
45,753
Amounts owed by subsidiary
undertaking
-
-
4,302
Prepayments and accrued income
154,195
200,769
154,195
___
_
___
322,074
287,857
312,326


 2019
£
1
_
Shares held
%
100
Charity
2019
£
69,962
-
-
200,769
_
270,731

Amounts owed by group undertakings are interest free and repayable on demand.

15 Creditors: amounts falling due within one year

Bank overdraft (secured)
Bank loan
Trade creditors
Taxation and social security
Amounts owed to subsidiary
undertaking
Accruals
School fees received in advance
Deposits held
Other creditors
Pension liability (Note 17)		 Group
2020
£
326,838
-
536,106
115,206
-
108,135
455,161
254,585
185,969
52,593
___
2,034,593
 Group
2019
£
248,101
120,000
200,434
97,302
-
100,444
647,997
209,950
195,132
56,331
___
1,875,691
 Charity
2020
£
326,838
-
536,106
115,206
-
102,984
455,161
254,585
175,716
52,593
___
2,019,189
 Charity
2019
£
248,101
120,000
200,434
97,302
25,615
95,019
647,997
209,950
195,132
56,331
___
1,895,881

School fees received in advance relates to fees for the next school year, which some parents pay in advance. Deposits held include an amount of £243,100 (2019 - £208,500) relating to acceptance deposits, all of which are considered as owed within one year given that only one terms notice is required to be given by pupils.

Amounts owed to group undertakings are interest free and repayable on demand.

33

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

16 Loan creditor

Amounts falling due after more than one year
Bank loan
The bank loan is repayable by instalments:
- due after five years
- due within two to five years
- due within one to two years
- due after more than one year
- due within one year		 2020
£
895,119
___
604,205
268,536
22,378
___
895,119
-
___
895,119
 2019
£
280,000
_
-
160,000
120,000
_
280,000
120,000
___
400,000

There is one loan in place included within the loan creditor. This is for a facility in place of £8,500,000. As at the year end, £895,119 has been drawn down and is repayable by 31 December 2034. Interest is charged at 2.16% above base rate.

The bank loan is secured by way of a fixed charge over the charitable company's freehold land and buildings.

17 Defined benefit pension scheme liability

The movement on the pension provision is as follows:

2020
£
Provision b/fwd
Employer contributions relating to the
recovery plan
(4,841)
Unwinding of the discount rate
591
Impact of the change in recovery plan
during the year
512
___
Net movement
Provision c/fwd		 2020
2019
£
£
56,331
(3,876)
834
14,895
___
(3,738)
___
52,593
 2019
£
44,478
11,853
___
56,331

The above provision relates to the requirement under the FRS102 that the charity must recognise as a liability the present value of future contributions relating to the funding of a pension deficit. For further details see Note 23.

34

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

18 Operating lease commitment

At 31 August 2020 the group had total future minimum lease payments under non-cancellable operating leases as follows:

Due within one year
Due between one and five years
Due between two and five years
Capital commitments
At 31 August 2020 the school had the following capital commitments:
Contracts for future capital expenditure not provided in the financial
statements
Analysis of net assets between funds
Group
Net current
2020
Fixed
assets/
assets
Investments
(liabilities)
£
£
£
Unrestricted
funds
Designated fund
-
-
-
General fund
9,760,371
640,000
(1,648,918)
___
___
___
9,760,371
640,000
(1,648,918)
_
_
_
Group
Net current
2019
Fixed
assets/
assets
Investments
(liabilities)
£
£
£
Unrestricted
funds
Designated fund
-
-
1,526
General fund
9,000,056
640,000
(1,543,066)
_
_
_
9,000,056
640,000
(1,541,540)


 2020
£
3,612
2,412
-
___
6,024
_
2020
£
200,939
_
Long term
liabilities
£
-
(895,119)
___
(895,119)
_
Long term
liabilities
£
-
(280,000)
_
(280,000)
 2019
£
5,966
2,412
2,412
___
10,790
_
2019
£
273,911
_
Total
£
-
7,856,334
___
7,856,334
_
Total
£
1,526
7,816,990
_
7,818,516

19 Capital commitments

At 31 August 2020 the school had the following capital commitments:

20 Analysis of net assets between funds

35

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

20 Analysis of net assets between funds (continued)

Charity
Net current
2020
Fixed
assets/
assets
Investments
(liabilities)
£
£
£
Unrestricted
funds
Designated fund
-
-
-
General fund
9,760,371
640,001
(1,659,705)
___
___
___
9,760,371
640,001
(1,659,705)
_
_
_
Charity
Net current
2019
Fixed
assets/
assets
Investments
(liabilities)
£
£
£
Unrestricted
funds
Designated fund
-
-
1,526
General fund
9,000,056
640,001
(1,621,478)
_
_
_
9,000,056
640,001
(1,619,952)
_
_
_
21
Unrestricted funds
Group
2020
Balance
1 September
Incoming
Resources
2019
resources
expended
£
£
£
Designated fund
Prize fund
1,526
-
-
___
___
___
General fund
7,816,990
7,455,355
(7,407,289)
___
___
___
7,818,516
7,455,355
(7,407,289)
_
_
_
Group
2019
Balance
1 September
Incoming
Resources
2018
resources
expended
£
£
£
Designated fund
Prize fund
1,524
2
-
_
_
_
General fund
7,598,890
7,445,244
(7,245,144)
_
_
_
7,600,414
7,445,246
(7,245,144)


 Long term
liabilities
£
-
(895,119)
___
(895,119)
_
Long term
liabilities
£
-
(280,000)
_
(280,000)
_
Transfers/
gains/tax
£
(1,526)
___
(8,722)
___
(10,248)
_
Transfers/
gains/tax
£
-
_
18,000
_
18,000
 Total
£
-
7,845,548
___
7,845,548
_
Total
£
1,526
7,738,579
_
7,740,105
_
Balance
31 August
2020
£
-
___
7,856,334
___
7,856,334
_
Balance
31 August
2019
£
1,526
_
7,816,990
_
7,818,516

36

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

21 Unrestricted funds (continued)

Charity
2020
Balance
1 September
2019
£
Designated fund
Prize fund
1,526
___
General fund
7,738,579
___
7,740,105
_
Charity
2019
Balance
1 September
2018
£
Designated fund
Prize fund
1,524
_
General fund
7,546,526
___
7,548,050
 Incoming
resources
£
-
___
7,356,309
___
7,356,309
_
Incoming
resources
£
2
_
7,253,378
___
7,253,378
 Resources
expended
£
-
___
(7,250,866)
___
(7,250,866)
_
Resources
expended
£
-
_
(7,079,325)
___
(7,079,325)
 Transfers/
gains/tax
£
(1,526)
___
1,526
___
-
_
Transfers/
gains/tax
£
-
_
18,000
___
18,000
 Balance
31 August
2020
£
-
___
7,845,548
___
7,845,548
_
Balance
31 August
2019
£
1,526
_
7,738,579
___
7,740,105

General funds are unrestricted funds that are available for use at the discretion of the governors in furtherance of the general objectives of the charitable company and have not been designated for other purposes. Incoming resources of the charity includes £78,411 of gift aid received from its subsidiary.

The prize fund is monies set aside for the provision of prizes awarded to children.

22 Pensions

The charitable company operates three pension schemes:

a) Teachers' Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. Valuation of the Teachers’ Pension Scheme The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019.

37

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

22 Pensions (continued)

a) Teachers' Pension Scheme (continued)

The key elements of the valuation and subsequent consultation are:

The employer’s pension costs paid to TPS in the period amounted to £585,199 (2019: £381,584). At the yearend £69,676 (2019: £52,060) was payable in respect of contributions to this scheme.

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The school has accounted for its contributions to the scheme as if it were a defined contribution scheme. The school has set out above the information available on the scheme.

b) Support Staff Group Pension Scheme

The charitable Company runs a defined contribution scheme for support staff with Aegon, administered by Maybury Financial Planning LLP, the school's independent financial advisors. The cost for the year represents the charitable company's contributions to the scheme of £118,391 (2019 - £119,490).

c) The Pensions Trust

The charitable company participates in The Pensions Trust scheme, (the ISBA's recommended pensions scheme for Bursars), which is a multi-employer scheme providing benefits to some 66 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charitable company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

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

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

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2017. This actuarial valuation was certified on 27 December 2018 and showed assets of £149.4m, liabilities of £187.6m and a deficit of £38.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid.

38

Crosfields School Trust Limited

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2020

22 Pensions (continued)

c) The Pensions Trust (continued)

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

Total contributions paid into the scheme by the charitable company amounted to £8,100 (2019 - £4,558). At the year-end amounts recorded in creditors were £Nil (2019 - £Nil).

Full details are available regarding The Pensions Trust on their website www.tpt.org.uk

23 Analysis of net debt

1
Cash at bank and in hand
Bank overdrafts
Debt due within 1 year
Debt due after 1 year		 Balance
September
2019
£
42,872
(248,101)
(120,000)
(280,000)
___
(605,229)
 Non-cash
Cashflows
movements
£
£
18,931
-
(78,737)
-
120,000
-
(615,119)
-
_
_
(554,925)
-

 Balance
31 August
2020
£
61,803
(326,838)
-
(895,119)
___
(1,160,154)

24 Related party transactions

Owing to the nature of the school's operations and the composition of the governing body being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a governor may have an interest. All transactions involving these organisations are in accordance with the school's normal procedures.

In the current period £613 was paid to Twyford Surgery, a surgery owned by a governor, for flu jabs (2019 - £560).

The school has a number of pupils who are family members of governors. Fees are payable at the same level as other pupils and entitlement to fee remission is considered in line with the school's stated policy for such awards.

Transactions between the school and its subsidiary Crosfields School Enterprises Limited are disclosed below:

2020 2019
£ £
Recharged expenses 155,191 165,820
Gift Aid 78,411 52,365
Amounts owed by/(to) Crosfields School Enterprises Limited 4,302 (25,615)

25 Post balance sheet events

In October 2020, the charitable company completed the sale of a wholly owned and unencumbered investment property known as Isgoed. The sale realised profits of £629,000 after associated sale costs.

39