Crosfields School Trust Llmfted (A ¢ompany limited by yaranteel Annual Report and Consolidated Financial Statements year Ended 31 August 2022 Registered No. 0584278 (England and Wales) Charity No. 309108 Crosfields School Trust Limited CONTENTS P•8e Legal and Administrative information Rep¢)rt of Governors lincludin8 Strate8ic Report) 4.16 Independent Auditorfs Report 17-19 Con5olidHted Ststement of finanual Activities 20 Consolidated and Company Staternent of Finano31 P05iti 21 Consolidated Statement of Cashflows 22 Notes to the Financial Statements 23-42 Crosfield8 School Trust Llmltod LEGAL AND ADMINISTRATIVE INFORMATION For the year ended 31 August 2022 STATUS AND ADMINISTRATION The Crosfields School Trust Limited is a charitable company limited by warantee, incorporalp)J on 21 May 1957 arxl 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 rts Artides of Association. COMPANY NUMBER 00584278 CHARI￿ NUMBER 309108 REGISTERED OFFICE AND ADDRESS Cr05fields School sh1nf￿d Road Shinfidd Reading Berkshire RG2 9BL GOVERNORS The ￿vernorS of the school being also Trustees of the charity and Directors of the charitable company, who served during the year, unless olheTrvise stated, w￿e as fdlows: ** A Atkinson D Ballersby C S Bradr￿d S 8rown K fjark E Dawes C L Fumeaux MJHalth A Hilson R Kap￿r S Lewis J R Lucey B Purewal S Sachdeva J Sefton Jenkins MTUM M Wardrop (Buiklrngs & Estate5 Chair) (Appoint￿ 29 November 2021 > Char of Govtrnors- 1 August 2021 "i@l++ AA AAr (Appointed g May 2022) {EducatK)n & Wellare Chair) {8uildiThJ$ & Estates Chair) IReswJned 29 N4)vemb8r 2021) {Appointed 29 November 2021) {Resigned 29 November 2021) (Financ8 Chair) w@l++ ** "I￿++ AA (Resigned 29 November 2021) Icwate &¢ial Responsibilty LeaJ> (IT Chair} (Safeguarding Lead) (Appointed 23 April 2020) Governors are apwinled by the t￿ard of gover￿)￿ nmalty al the annual general meeting for a term of three years. but are eligible for re-dection. Members of the Finance Committee (FC) Members of the Building & Eslales committ￿ (BECI Members of the HM Bursarfs Remuneration & Appraisal Committee {HMBRAC) Members of the Education & Wetlare Committee {EWC) Members of the Health & Safety Committee (H&S) Members of the IT Committee IITCI Members of the P16 Programme Board ++ Crosfields Sch(•ol Trust Llmlted LEGAL AND ADMINISTRAnVE INFORMATION (conrfnuedj For the year ended 31 August 2022 OFFICERS Head.. C D J Walson C J Purdom Bursar and Company Se•: SENIOR LEADERSHIP TEAM C D J Walson S Dinsdale R Ebbage T Goodhew J Ireland A Mallins P J McDowell A Weslty-smlth K O'Leary C J Purdom K Stone J Phillips s￿nd Master Deputy Head (Academic) Senior School Dewty Head (Pastorall Junior School Deputy Head (Academic) Junior School Deputy Head (Pastorall Senior School Head of Pre-Prep Deputy Head of Pre-Prep Director of Studies Bursar Head of Early Years Director of Extemal Relations PROFESSIONAL ADVISERS BANKERS: Lloyds Bank Unit 3 20 M¥ket Place Wokingham RG40 1AP SOLICITORS: Fidd Seymour P*ks LLP 1 London Street ReadiThJ RG1 4PN Pennington Marthes Cooper LLP Apex Plaza Forbury Road Reading RG1 1AX Veale Wasbrough v￿ardS Nafrow Quay Hwse Nafrow Quay Brisl BS140A AUDITORS.. Haysmxintyre LLP 10 Queen Street Place Lo￿lon EC4R 1AG Crosfields School Tn￿1 Llmtted LEGAL AND ADMINISTRATIVE INFORMATION fconunuedj For the year ended 31 August 2022 INSURANCE BROKERS Marsh Brokers Limited Rocknvood House 17 Perymount Ro Haywards Heath RH16 3DU Crosfields School Trust Limited REPORT OF THE GOVERNORS Forthe year ended 31 August 2022 ANNUAL REPORT The governors present their annual reFrf t￿ett￿ with the financial statements for the year ended 31 August 2022 aThJ confirm that the latter comply with the requirements of the Companies Act 2006, the Charitable Company's Artides of Association (March 2019), the Charities Statement of Re￿Mrnend0d Practice (SORP 201 $1 and Financial Reporting Standard 102 (FRS 102)- The annual report is also the Twstees, ReF*Jrt a5 requiTrd by Part Wll of the Chariltes Act 2011 and the Directors, ReP￿t as required by section 417 of the Companies Ad 2006. Chalr of Govemor's Report When the Board of Govemors made the d￿1510￿ to extend the edU￿tional provision at Crosfields School through to 16, the reality of the thange sgemed quite a distant proposition. Yel in under 4 years. we have delivered upon those promises wth our Senior S¢hod fvlty operational and the first GCSE eohort starting the next stage of their educational journey. The Junior &h¢)ol ￿ntInueS lo thrive and lo carve 115 own identty within the bedrock of the Crosfields, values - ambitious. transfomiational. kind. dNerse. commttted and resilient. We will say farewell to Mr CraKJ Watson as Head in April 2023 and we are ever grateful for his leadership through the recent changes. He will leave behirKI year on year growth in pu￿1 numbers.. a strong team of professional and dedi￿ted teaching and support staff". a curriculum built on ac*lemic rigour that extent1s opportunities beyond the dassroom and new facilities that befft a schocA of our stsndiNJ. Mrs Caroline Townshend Ifomierly Ealon Square School) will be joining the team and leajing us forward as we cons01￿late our recent achievements. It is not however a time for complacency aThJ the Bowd recognises thal th8 challeng8s of the current economic and political climate present an e￿$tential threat lo independent education. Our strong and divers8 Board will provide resilient leadership and thoughtful governance to support the n8w Head.. address these issues as they impact upon Crosfields., continue lo wcrfk to a sustainatrAe model of ffth in order lo meet our ambitions and cement our pos11K￿ as a leading Co*(￿cat￿n* day sch(x)l in the area. AIMS. OBJECTIVES AND AcMvmES Crosfields is situated in over fty *res of park and wotsjland. ￿ exceptional facilities and talented staff. It Is a co-educational school with children belween the ages of 3 and 16 wilh our first cohort of Year 10 pupils continuing their journey through our senior sthool in September 2022 (see Strategic Review below). All pupils are given the opportunity to challenge and develop themselves. both inside and outshde of the classroom. An exceptionally friendly school. Crosfields emphasises mannefs. kindness and gocKI behaviour. The girls and boys benefit from 8 vast ran9è of opportunities provKJed by a cnmmitted and talented staff enhanced by excellent facilities which are second to rK)ne. Though they are taught broadly, the children are also tau9hl thoroughly and imaginatively. preparing them for wthatevw the￿ fuiure holds. Crosfields lays the f(MJndalions for the adults. pupils will become. The overall Intent of Crosfields is to provide an exceptional education that is broad. thorough and enjoyable, enabling children lo make the most of themselves and to be considerate of othws. In so doing. il has the following aims.. To provide an environment in whith the chiktren we happy and c4)nfident vthich ts safe, caring and supportive wth exceptiona pastoral we. To provide oppcKtunities of consideratle breadth and depth lo help chilLtren discover their talents. To provide an atmosphere in vthich respect for Ou￿ peop￿ and for the world is r#Jllivated. To encourag6 effort. resilience. and rtsJC￿r. Crosfields School Trust Limited REPORT OF THE GOVERflORS For the year ended 31 August 2022 To encourage the children to be independent thinkers wlh (xitical, inquiriro minds by providing a challenging aCadern￿ curriculum inspires and eroages al pupils. To prepare children to leave Crosfidds ready for the challenges whKh await them al their next sthools and beyond. Currant approach0$ to imp10m0nt th• aim$: The governors have adopted the fdlowng apprnaches to deliver the aims of the school.. To wovide a high standard of academic education f(Y children up to age 16 wthin an environment that encourages Putyls in music, drama, swt and 1Thid ¢o.%S.. . arKI signed on their behalf by.. Iro ovemors The notes on pages 23 10 42 part of these aCC￿nts. 21 Crosfields School Trust Llmited CONSOLIDATED STATEMENT OF CASHFLOWS For the year ended 31 August 2022 Group 2022 Group 2021 Not• Nel income for the reF(￿ling perKKI {as per the Statement of Financial Activities) Adjustments for: Depreciation of tangitde fixed assets Loss on disposal of tangitrAe fixed assets Interest payable (In¢reaseyDecrease in stock (Increaseydecrease in debtors In¢reasel{decrease) in creditors (Oecre8se)fincrease in pension deficit 1fftitxrt￿ liablty {158,815) 799.680 642,288 38,178 177,549 (2141 (26.4661 (541,1251 {3,799 425.540 43,300 1.665 42.S80 871.964 (4.9351 13 Cash genernted from operatlon8 127.596 2.179,794 Cash Ilows from Investlng actlvltles Purchase of tangible fixed assets Sale of investment property 10 11.565.635) 16.467,7241 640.￿0 Net cash used In Investlng actlvhle8 (1,565,635) (5,827,724) Cash Ilows from flnanclng actmtles Repayment of borrowThJ New bank loan Interest paid 1,677,993 (177,S49) 4,392.532 <43,300) Net cash froml(usad In) flnan¢lng a¢tlvlll8s 1,500,444 4.349.232 Increasel(Deuease) In cash and cash equNalent$ in the 701.302 Cash and cash equivalents at the beginning of the year {265.035) Total cash and cash equlvalents at the end of the year 498,672 436,267 Relatlng: Bank balances induded in Cash at bank and in hwKI Bank overdTaft 21 498,672 436,267 498,672 436,267 The notes on pages 23 10 42 fomi part of these acctyjnts. Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS For th¢ year endod 31 August 2022 Accountlng polld•s Company stalus Crosfidds School Trust Limited llhe Comparf) is a rKivate company limrted by warantee, incrKporated in England and Wdes under the Compantes Act 2006. The address of the Company's registered offi¢e and principal place of business is cros￿￿5 School. Shinfield Road. Shinfield. Reading, RG2 9BL. The members of the Company are the wvemors. The Company number and members ofthe Company are named on page Basis of preparation The financial statements have been prepared in ￿KdarK? wtth Ac£ounling and Rep￿tIng by Charities.. Statement of Recommended Practice apPI￿able to charities preparing their accounts in accordance with the Finanual Reportir¥J Slan(Jard applicable in the UK and Republ￿ of Ireland IFRS 1021 {effective 1 January 2019} - Charities SORP (FRS 102}. UK Generally Accepted Acc(yJnting Practice (UK GAAP) inclu(ling the Financial Repc*iing Standard appltsbie in the UK a￿1 RepuNK of IrelaThJ IFRS 102) and the Companies Act 2006. Assets and liabilities are initbalty rwnised at historicl cost or transaction value unless otherwise stated. Monetary amounts in these attounts are rounded to the nearest £ except véhere 0th8rwtse induted. Golng concern The group has net ujrrent liablities of £1.579.913 {2021-. £1.858,891) at the Statement of Financial Position dale. The year ended 31 Auwsl 2022 gave rise to a net reduction in ftjnds of £{158,8151. The deficit was anticipated given the development 5tsge of Project 16 and the physical establishment of the Senior School. In considering whether the 9)iro o)ncem basis is apwowiate. the wvemors have considered the surplus and cash-flow projections prepared for future years. These ind￿ale that the charitable company will be able lo meet its liabilities as they fall due and together with arrangements with their bankers fwecast that the charitable company will be able to operate within the f8ciliiies Current￿ available. The govemcffs have no reason to belwe Ihat the t)Jrrenl facilfties will not be continued 8nd confirm that they are salisfie(J there is m material uncertainty as lo the ￿Ing concern slalus of the charitable company for the period of the going concern assessment made. Accordingly. they continue to adopt the going concern b8sIs in preparing the finanaal statements as oulined in the slalement of governors. responsibilities. In making the assessment, the gOVerr￿ confiThn that they have conshdered a lo 31 August 2024. With regard lo Ihe current accountwig period, the yew ending 31 August 2023, a deficit is expected. The scale of external economic pre55ures is evident. most nolably the rise in energy costs and inleresl rates. and these have put strain on the financial plan for the year. As a resull, r( has t￿n revisiled and budget cuts have been taken and some pr￿$ (hirings and co-curricular activities} have been increased as a counter measure. Additional prudent expenditure controls have been pul in place to curb r￿n-esSentIal spending. In support of the going conc*m assessment. the governors have considered a range of different scenarios which conslder the key variables such as pupil numbers. salary costs. energy costs. other impacts of inflation and interest rates. In doing so. the governors are sa11sf￿ that the forecasts provide them with a reasonable b8SiS to conclude that the charitable o)mpany ￿11 remain a going corKem for th8 f￿eSeeab1e future and lo at least 31 August 2024. Whilst the forecasts indicate that the charitable company sMII be able lo operate within the lending facilities curTenlty available to it. the forecasts currently indKate a wlential breach of lending covenants at the first review al 31 December 2024. This arises undef some (but not all) of the scenarK)s modelled. This is beyond the period of the wng concem assessment made. and 5tep5 are being taken lo minimise tha risk of this cccurring induding those sel out above. Furthermore. man8gemenl and ￿VernorS confirm that th&y are maintaining a close relatK)nship with the charitable company's bankers in relation to the forecast posilk>n. On this basis the 9)vernors confwm tw are SatiSf￿d no material uncertainty arises. 23 Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (conllnuedj For the year ended 31 August 2022 Accountlng pollcles (continued) Basls of consolldatlon The group accounts consdidale the accounts of Crosfields SCt￿l TTUSI Limited and its subsidiary undertaking, Crosfields School Enterpr￿¢$ Limited on a ling by line basis. The accounts are made up lo 31 August 2022. No separate Stalernenl of Financial activities or income and expenditure has been presented for the charitable wmpany alone as permrtled by the Companies Act 2006 and the Charities SORP. The resLdts of the subsidiary uThJertaking for the year are dBdosed in note 3 of the accounts. FRS102 allows qualifying entitie5 certain d￿doSure exempl¥)ns. tharity, onty. has taken advantage of the exemptions for the following disclosure rwuwement: Section 7'Slatement of Cash Flow&"_ presentstion of an entity only Statement of Cash Flow and related notes arKI disclosures. Fund accounllng The funds of the School are acc(MJnted for as Un￿StriCted or restitled im)me. in accordance with the temis of trust imposed by the donors or any appeal to which they may have responded. General funds are unrestricted fvnds that are available for use al the discretion olthe govemoTS in furtherar of the general objeclNes of the charitable company and have not been deS￿Jnated for other purposes. Designated fvnds comwse unrestricted funds that have been sel aside by the governors for particular purposes. The aim of the d8signaled fund is sel out in th8 notes lo the financial slalements. Investment irKome and gains are allocated to the ap￿￿Ow1ale fund. Incom• Al incoming resources are indudgj in the Statement of Financial Activities when the charitable company is legally entiwed lo the income and the am(bunt can te quantrfigj with reasonable accuracy. F8•s and slmllar 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 deductiThJ allcywarw, bursaries and other remissions granted by the school. Fees receNed for education to be pmwded in future years are carried fonward as fees rece￿ed In advance In the Statement of Financial Position. These fees are released to the Statement of Financial Activities over the period in which the s(*cx)I provKles the serrfic*s in future years. Expendlture Expenditure is accounted for (m ￿ ￿Ual basts. ExpeThJiture is dlocated to speufTrc activities without the need for apportiorffnent. The irrecoverable element of VAT induded wilhin the item of expense lo which il relates. Governance costs comprise the costs of runnirKJ the charitable company, such as the costs of board and committee meetings, preparing statulcry accounls and satiS￿ng public accountability. During the year. the SdK)ol ha5 revised ils analysis of expenditure and staff numbers reportiTrJ lo reflect expenditure more accurately belween appropriate calegories. 24 Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (contlnuedj For the year ended 31 August 2022 Accountlng pollcles (continued) Donated 8ervSces Donated seTvices and facilities are onty induded as income (with an equNalent amount in resources expended} where the benefil lo the tharity is reasonabty quantifiatAe, measurable and malerial. The value tAaced on these resources is the estimated market value to the charity of service or facility received. Grant Incomo Payfflents received from the 9)vemment for fudoughed employees are a of grant. This grant money Is receivable as compensation for expenses already incu￿ed. ar￿ where this is not in respecl of future related costs, is recognised in inm in the perth in which it b￿orneS receivable and the related expense Is ir￿rred. Opwatlng1&2s•8 Rentals appllcable lo opwaling leases are charged to the Stalemenl of Financial Activit￿ on a strawJhl line basis ov¥ the perit)J in which the cost is ￿K￿rred. Tanglble flxed a88Ots and depreclatlon Expenditure on fixed assets is cwilalised except for ex￿ndItUre inr#Jrred on Ihe r8￿cement of assets of low value with a short lrfe. Subsequent costs of repair. renoval¥)n and reFlacemenl expendiiure are wrillen off as incurred in the consolidated slalemanl of f￿￿n￿al activilies. unless il is probable that such costs will generate future economic benefits. School buildings we recorded at their hKslorical cost to th8 charitable company. Depreciation is prov￿ed on all tangible assets, except free￿)Id larKI, in (Yder to write off the￿ cost less residual value over I￿1r estimated useful lives al the following annual rates- Stralght Ilne basls Freehold property: Buildings Artrfictal turf pitch" Sensixy garden Furnlture, fixtures WKI gquipmont: Tractor Computer equipment (￿luCat￿)na1) Computer equipment (administrative) Other 12-20 yws 10 15 25 15 Items wsling less Ihan £5.000 are V￿rtten off as an expense as a￿uired. he artrficial pitch is spltt belween the swpad and carpel which is depreciated over 12 years and all other items are depreciated over 20 y￿s. Inv•stm•nts In subsldlarles Investrments in subsidiaries are stated al cost less any assessed impaimienl in the asset. Stocks Stocks we valued al the lower of cost arKI realisable value. 25 Crosfields School Trust Llmlted NOTES TO THE FINANCIAL STATEMENTS (conllnuedj For the yoar •nd•d 31 August 2022 Accountlng pollcles (continued) Panslon schemes The charitable company contributes to the Teachers. Pension Scheme, which 15 a defined benefit scheme, al rates sel by the Scheme Actuary and advised to the Board by ￿ Scheme Adminislralor. The scheme is a mulli-employer pension scheme and rt is nol r*)ssible lo idenllfy the assets and liabilities of the scheme attributable lo the charitable company. In accordance wlh FRS 102 therefore, the scheme is accounted for as a defined contribution scheme and Contributions are accounted frx when advised by the scheme administrator. The charitable company also contrilmjtes into a defined contribulion scheme for non4eaching Staff and a defined benefit scheme for senior management. The present vahje of fUt￿e contributions relatiro to the fundiro of a penS￿)n deficit is recognised as a liabilty. Flnanclal Instruments The group has elected to apply the provisions of Secthjn 11 'Basic FinanLial Instruments, and Sectlon 12 'Other Financial Instruments Issues. of FRS 102. in full. to all of its financial inslrufflenls. Financial assets and financial liabilities are recconised vthen group becomes a party to the conlracfual provisions of the inslnjmenl. and are offset only when the Group has a legal enforceable right to sel off the recognlsed amounts and intends either to selue on a net basis. or to realise and settle the liability slmultaneously. Financi818SS8ts Trade. group and other debtors (including ￿Ued income) which are receivable wthin one year and which do not constitute a financing transa￿lon are initially measured at the transaction prKe and subsequently measured al amortised cost. being the transact￿ Fffice less any amounts setued and any impairments losses. A provision for impairment of trade deblcffs is eslablished when there is objeclive evidence that the amounts due will not be collected acc(￿dIr￿j lo the original terms of the contract. Impairment losses are recognised in the statement of financial activities. FinancialliabililEs Financial instruments are classrf￿ as liabilitw xcordiThJ to the substance of the conlraclual arrangements entered into. Trade. wup and other creditors (including accruals) Payab￿ within one year that do not Jnslitule a finanung transaction are initially measured at the transaction price and subsequently measured at amortised cost. b￿n9 trans&tion wice less any am￿jnts settled. Where the arrangements with a C¥edit￿ constitutes a finanung transaction. the creditor Is initially measured at the present value of future tiayments di8counted at a market rale of interest for a slmilar instrument and subsequenlly measured al amorttsed ¢osl. Borrowings Borrowngs are initially recognised at the tran$￿tts￿ price. Induding transaction costs. and subsequently measured at amortised cost usirKJ the effective interest meth¢￿1. Interest expense is recognised on the basis of Ihe effective interest method and bs induded in interest payable and similar charges. Derecognising financial assets and liabilities A financial asset is derecognised only when the contractual r￿ts to cash flow5 expire or are setded, or subsequ6nUy all the risks and rewards of ownership are transferred lo another party, or if some significant risks or rewards of ownership are retained bul control of the asset has transferred to another party that is able to sell the asset in its entirely to an unrdaled Ihir(I party. A financial liability lor part thereofj is derecognised when the oblpJation spe¢ifth in the contract 15 distharged. Ca￿lled w expires. Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS {GontinuodJ For the y9ar gnded 31 August 2022 Accountlng pollcles (continued) Taxatlon The tax expense for the comprises current and deferred Lix. Tax is recognised in the statement of financial affairs. The current corwralion tax charge is calculated on the basi8 of tax rates and laws that have been enacted or subslanlNdy enacted by the reiM)rting dale in the UK. Crhlcal accountlng estlmates and areas of Judgement Estimates andjudgemenls are continually evaluated and are based on histor￿1 experience and olherfactors, induding expectations of futwe events Ihal are bdieved lo be rea50nabie uThJer the circumstsnces. The group makes estimates and assumptions cor￿eming the future. The resulting accounting eslimales and assumption5 will. by definition, seldom equal the related actual results. The eslimates and assumptions that have a signrficanl Tisk of causing a malerial adjuslment lo the carying amounts of assets and liabilities within the next financial year we disixjssed bel￿1. Significant eslimates induded wtlhin the financi￿ slalements indvde provision for fee deblors. which Trquire a judgement by management wrding the likelihood of recovery. Management review and assess fee debtors on an individual account basis and w)vide for debts as approwiale. Depreciallon is another key estimate in the accounts which requires management judgement over the useful Ilfe of the assets. The policy has been sel (yjl in the notes above. 27 Crosfields School Trust Llmited NOTES TO THE FINANCIAL STATEMENTS (Gondnued) For the year ondod 31 August 2022 Foes rnGgivablo 2022 2021 Feos receivable ¢on$ist of.. Gross fees Less.. Total bursaries, grants and allowan Less: COVID 19 Discounts 9.538.511 (531.087 8,538,440 {429,7771 {150.9591 9,007,424 7,957,704 Al fees receivable were uwestrthd in the wrent a￿1 prior year. Tradlng Incomg and gxpondituro Crosfields School Trust Limited owns 100% of crosf￿d$ Schod EnterFrfises Limited. This company hires out the sports hall. swimming pool arml other faciltti.es at Crosfields SclM)d and donates rts annual taxable profits to Ihe charitable company under the Gift SL*eme. Trading results extracted from its audited financial slaternonts are shown below: 2022 2021 Tumover Administrative expenses Government grants {HMRC Furlough scheme) 275.328 {176.477) 178,609 (182,048) 18,978 Profit for the year Gift a#J 98.851 (98.8511 15,539 115,5391 Net assels 28 Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (contlnued) For the year ended 31 August 2022 Donatlons and legacles Total 2022 Total 2021 Donations HMRC Fudough s¢heme income 767 45,949 63,112 767 109.041 Anclllary Income Total 2022 Total 2021 Extra 2.479.297 223.776 (356.628) 5.826,367 642,288 1411,3291 AI 31 ALbgusl 2022 S710,881 2,346.445 6.057.326 Net book value Al 31 August 2022 7.737.706 .177.071 772.948 16.687.725 Al 31 August 2021 7.855.163 7.541.913 405.480 15.802.556 33 Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (contlnuod) For the year endgd 31 August 2022 11 Fixed assets investmMts- Group and Charity 2022 2021 Investmont in subsidiarios ICh¥rity only) Investment in subsidiary company R•glstered Company number Shares held Company Cla88 Crosf￿dS School Enterprises Limited Crosfields School sh7nf￿1￿ Road. Shinfidd. ReadiThJ. Berkshire. RG2 9BL 08332333 Ordinary 100 12 Debtors Group 2022 Group 2021 Charlty 2022 Charlty 2021 Trade debtors Other debtors Amounts owed by subsidiary undertaking Prepayments and accrue(l income 81,610 3,729 74,673 2,017 60,464 3,729 82,356 201220 65.927 2.017 115.940 188.311 220,621 202,804 279,494 352,769 372.195 Amounts owed by sToup undertakirws are interest free and repayable on demand. 13 Credltop4: ￿ount9 falllng wlthln on• y Group 2022 Group 2021 Charlty 2022 Charlty 2021 Bank overdraft (secured) Bank loan Trade creditors Taxal￿n and soclal se(#Jrity Accruals School fees receNed in advance Deposits held Other creditors Deferred Income Pension liability {Note 16) 355.031 242.311 355,031 242,311 831,956 106,948 184,487 804,249 329,085 270,402 831,956 106,948 182.558 804.249 329.085 270.402 67,105 1,003,842 401,010 61,384 210,350 43,859 65,263 1,003,842 401,010 61,384 210,350 43,859 47,658 47,658 2,384,892 2.574.785 2,383.050 2.572.856 School fees received in advance rdate5 to fees for Ihe next sdwjol year. bthich some parents pay in advance. Deposits held include an amount of £371.3SO (2021: £299.0001 relating lo acceptance deposits, all of which are considered as owed wtthin one year given that only one tem)s notice is required lo be given by pupils. Amounts owed to group undertakings are i)lerest free and repayable on demaThl. Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (condnued) For the year endod 31 August 2022 14 Loan credltor 2022 2021 Amounts falllng due after more than one year Bank loan 6,964644 5,287.651 The bank loan is repayable by instslments: - due after fNe years - due within Iwo to five years - due within one to hvo years 1,806,573 4429.190 374,850 2,950.151 2.337,500 - due after more than one year - due wlhin one year 6,610,613 355.031 5.287,651 6.965.644 5,287,651 There is one loan in place included within the loan creditor. Thts is for a facilty in place of £8,500,000. As al the year end. £6.965.645 has been drawn dcpwn and is repayable by 31 December 2034. Interest rs charged at 2.16% above base rale. The bank loan is secwed by way of a fixed charge over the charitatAe CoMpan￿S freehold land and Iwildings. 15 Deflned bonefit pgnslon scheme Ilablllty The movement on the penSK￿ provision is as follows.. 2022 2022 2021 2021 Provision k 47,658 52.593 Employer contributions relating to the r￿0very plan (5.136) {4,986) Unwinding of the dis(xJunt rate Impact of the change in recovery ptan during the year 17.281) 8.126 (3971 AmerKlment lo contribution Sch￿ule (3.799) 14,9351 Net movement Provision cjfv 43,859 47.658 The above provisron relates to the requirement under the FRS102 that the charity must ￿cOgnIse as a liabilty the present value of future contribut￿)nS relating lo the funding of a pension deficit. For further details see Note 20. Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (Gontsnuod) For tho ygar gndod 31 August 2022 16 Operating laas• commltm•nt At 31 August 2022 the ￿uP total fijt￿e minimum lease payments uThler non-ca￿ellab1e operating lease$ as follows.. 2022 2021 Due within one year Due between one and fNe years 23.120 60.925 3,048 84,045 3,048 17 Capttal commltments At 31 August 2022 the school had the following capital commilments: 2022 2021 Contracts for fu￿re Gapilal expendIlu￿ provided in the finanoal statements 75.635 551.382 18 Analysls of net assèts betW￿n funds Group 2022 Net current assetsl {Ilabllltlesl Flxed Long temi Ilabllllles Total General fund Restricted fund 1&687.725 (1.584.058) 4,145 {6.610,613) 8,493,054 4,145 16,687,725 (1,579,913) 16,610,613) 8,497,199 Group 2021 Not current Flxod Long temi Ilabllllles (Ilabllttles) Total General fund Restricted fund 15,802,556 (1.864.398) 5.507 (5.287.651) 8.650.507 5.507 15.802.556 {1.858.8911 15.287.651) 8.656.014 Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (condnu•d) For th• y•ar •nd•d 31 August 2022 18 Analys1$ of net assets betymn funds (conunued) Charlty 2022 Net current assetsl {Ilabllltles) Flxed assets Inv88tments Long teTm Ilabllltles Total General fund 16.687,725 11,5M058) (0,610,613) 8,493,055 4,145 Restricted fund 4145 16,687,725 11,579,913) 16,610,613) 8.497.200 Charlty 2021 Not Gurront assetsl Flx•d Long term Ilabilities Total General fund Restr￿ted furKI 15.802.556 (1.875.185) 5.507 (5.287.651) 8.639.721 5.507 15.802.556 (1.869,678) (5.287.651) 8.845,228 19 Total Funds Group 2022 Balance Balancg 31 August Transfersl September 2021 kncome Expendhure galnsltax 2022 Unrestrlcled funds General fund 8,650.507 9,537,473 (9,694,926) 8,493,054 Reslrictgd fund Books fund Bursary fund Laptop fund 1,362 4.145 (1,362 4.145 Total roStrict•d 5.507 4.145 Tolal funds 8.656.014 .537,473 {9.W.288) 8.497.199 37 Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2022 19 Total Funds Icontinued Group 2021 Balance 1 sopternbor 2020 Transfersl Gainsftax 8alan¢g 31 August 2021 In¢omo Expondi￿r9 R8striGtod fund Books fund Bursary lund Laptop fund 1,362 4.145 40.422 1.362 4.145 (40.4221 Total r•strlct8d 45.929 (40.422> 5,507 General fund 7.856.334 8.333.131 (7.579.380) 40.422 8.650,507 7.856.334 8.379.080 (7.579.380) 8.656.014 Charlty 2022 Balance 1 September 2021 Balance 31 August 2022 Transforsl galnsltax Incomo Expendhuro General fvnd 8,639,721 9,360,996 (9,507,062) 8,493,055 R8strfctgd fund Books fund Bursary furbj Laptop fund 1.362 4.145 11,362) 4,145 Total rnstrictod 5.507 (1.3621 4.145 Total funds 8.645.228 9.360.996 {9.509.0241 8,497.200 Charfty 2021 Balance 1 September 2020 Balance 31 August 2021 Transfersl galnsltax Income Expendlture Restricted fund Books fund Bursary fund Laptop fund 1,362 4,145 40,422 1,362 4,145 (40,422) Total ré$triclad 4S,929 {40,422) 5,507 Gonoral fund 7.845.548 8.151.083 (7,397.3321 40,422 8.639.721 7.845.548 8.197.012 (7.397.332} 8.645.228 Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2022 General funds are unrestricted funds that are aVaila￿e for use al Ihe discretion of the wvemors n furtheran of the general objectives of the charitable company and have not been designated for other pvrpose5. Incoming resources of the charity indudes £98.851 (2021: £15,539) of grft aid received from 11$ subsidiary. The wrie fund is monies sel aside for the provision of wizes awarded to chiklren. Restricted funds ￿ as follow￿. Book fund rdales to donatiws raised for spendiNJ on school books. Bursary fund relates to donalions for S￿ndir￿J on fulure bjrsaiies. Laptop fvnd relates to a donatTh received in the current year lo fund the purchase of 40 laptops. These assets were purdwed in the ￿ &)d therefore thts fund has been transferred to unTeslricted. 20 Pgnxlons The d￿ritable company op￿￿eS three perts￿n scheme5: al Te2chers' Pension Scheme The School partI￿paleS in the Teachers. Pension Scheme (Ihe TPS"} its leaching staff. The pension charge for the year indudes conlritrmjtions payat4e to Ihe TPS of £663,929 (2021.. £597,285} and al Ihe year- end {£162)12021- £72,051 } vms ac(¥ued in re8￿t of contributions to Ihis ￿e. The TPS is an unfunded mulli*mployer defined benefits pensK)n Sd￿ffle governed by The Teachers. Pensions Regulat￿nS 2010 {as amended) and The Tethrs, Pension Scheme Regulations 2014 {as amended). Members contribute on a.pay as you go" basis with contributions from members and the employer being credited to the Exchwjuer. ReliTemenl and other pensh)n benefts are paid by wblic funds provided by Parfiamenl. The emFAoyer Contribut[(￿ rale is set by the Secretary of State followlng scheme ValUat￿S undertaken by the Government Actuary's Department. The most Trcenl actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report. which was published in March 2019. confirmed that the employer contribution rale for the TPS would irKrease from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a sc*eme administration levy of 0.08% givin9 a total employer contribution rale of 23.68%. The 31 March 2016 Valuation Rewt was prepared in accordance wtlh the benefits set out in the scheme regulations aTKJ under the approach speCffj￿d in the Directions. as they applied al S March 2019. However, the assumptions were consNJered and sel by the Department for Education wior to the ruling in the 'M¢CloudlSargeant case.. Thrs case has required the courts lo consider cases regarding the implemenlat*)n of the 2015 refomis lo PutAic serv￿ Pensions induding the Teachers. Pensions. On 27 June 2019 the Supreme Court denied the g)vemment permission lo appeal the Court of Appeal's judgment that transitional provIs￿nS inlrcrtluced to the refomied pension schemes in 2015 gave rise to unlawfvjl age discriminath)n. The govemment is respecting the Court's decision and has said it will engage fully with the Employment Tribuna as well as emFloyer and member representatNe5 lo agree how the dlscriminations will be remedth. The govemmenl announced on 4 Felyuary 2021 that il intends to proceed with a deferred choice underpin under which members will be able to thoose either legacy or refom)ed scheme benefits in respect of their service during the perM)d between 1 April 2015 and 31 March 2022 at the point they become payable. Crosfields School Trust Llmited NOTES TO THE FINANCIAL STATEMENTS (conllnued) For Ihe year ended 31 August 2021 20 Ponsions (continued) The TPS is subject lo a cosl cap mechanism wh￿h was put in plxe to prolect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 an￿unCed that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost Cap mechanism following the Court of Appeal's rulirwJ in the McCloudlSarg8anl case and until there is certainty about the value of pens￿nS to employees from April 2015 ork%￿ards. The pause was lrfted in July 2020. and a consultation was launched on 24 June on wop)sed changes to the cost conlrd mechanism following a review by the Govemmenl Actuary. The consultat￿ closed to response on 19 August 2021 and the Govemmenl is currently analysing the responses. In view of the above rulings and decisions the assumpkn'ons used in the 31 March 2016 Acbjarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and sulta￿Y revised assumptions woukl yield different results than those Conta￿￿1 in the Actuarial Valuation. Unb'l the cost cap meehanism review is eompleled it is not t)ossible to condude on any financial impact or future changes to the contritsjlion rates of the TPS. Accordingty no provision for any additional past benefit pension costs is inchjded in these financial statements. Staff Grou PenS￿n Scheme The charitable Company runs a defined conlribution scheme for support staff with Aeg)n.. The cost for the year represents the charilatAe ￿)mpanIS contributions to the scheme of £138.97012021.' £121.5091 and al the yearénd £20.60512021: £16.234) was ax¥ued in respect of contributions to this scheme. The Pensions Trust The charitable company pathipates in The Pensions Trust scheme, {the ISBA'S recommended pensions scheme for Bursars), which is a multi-employer scheme provKliThJ benefits lo some 61 non-associaled employers. The scheme is a defined benefit scheme in the UK. 11 is not possible for the charitable company to obtain sufficient information lo enable it to ac￿￿nt for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defmd contribution scheme. The scheme is subject to the fvrKling legi￿at￿)n ouljined in the Pensions Act 2004 which ￿rne into force on 30 December 2005. This, to￿ wth documents issued by the Pensions Regulalc( and TechnKal Actuarial Standards issued by the Financial Reporting Cwncil, sel out the framework for fijnding defined benefit occupational pension thmes in the UK. The scherne 15 classrfEd as a last-fflan standingJrdngemenf. Therefore the charttable company is potentially liable for other participaliThJ employers. ot￿lgatI()n¥ rf Ihose em ￿0yerS are unable to meet their share of the scheme deficit following withdrawal from the stheme. PartKipating employers are legally required to meet their share of the scheme defiot on an annutty purthase on wtthdrawal from the scheme. A full actuarial valuation ts the xheme was carri￿1 out wtth an effective date of 30 September 2020. This acluerial valuation was certffied on 22 December 2011 and showed assets of £201.1 m. liabilities of £256.3m and a defi'ut of £55.2m. To eliminate thbs fiJnding shortfall. tn￿le8S and the participating employers have agreed that additional contributions will be paid. The recovery plan contributions are all(￿ted lo each part￿ipati￿j employer in line wilh their estimated sh￿e of the scheme liabllities. Total conlribulM)ns paid inlo the scheme by the charita￿8 company amounted lo £8,632 {2021: £8,100>. At the year-end afN)unts recorded in creditors were £Nd (2021: £Nil). Full details are available regarding The Pensions Tnjst on their website Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (continued) For thg year •ndgd 31 August 2022 20 Pènsltyns (contlnu Following the year4KI. the Sthool was infomed ofa potential ￿ation event as the last activety conlTibuling member leftthe Scheme on 31 October 2022. The School has been advised that rfa Section 75 debt becomes payable on withdrawal it will be in the order of £179.000. Al dale of these accounts, the School is Investigating the options available to it underthe scheme rules induding the wssibilty of bringing an additional contributing member into the Scheme in order lo avoid Ihe trwrng of the Section 75 debt. Al the date these accounts were approved this work remains ongoing. Given that the conditions arose foll(Iwing the year end. this represents a non-adjustiro [￿￿-balance sheet event and it is rKJt therefore refleLted in the balance sheet at 31 August 2022. 21 Analys58 of net debt Balance 1 Septembgr 2021 Balance 31 August 2022 Cashfiow•% Cash at bank and in harKI Bank overdrafts Debt due wthin 1 year Debt due after 1 year 62.405 498.672 {355.031) (1.322.962) 1355,031) (6.610.613) 15,287,6S1) (4,851.384) (1.615.588) (6.466.972) 22 Rdated party transactlons Owtng to the nature of the sclmxl's opwal#)ns and th8 comF#)Sition of the 9)veming body being drawn from local public and private sector organisalK)ns. it is inevitable thal transactions will lake place with organisalions in which a governor may have an interest. Al transactts)ns involving these cffganisalions are in accordanGe with the schod's normal procedures. The total donations in aggregate receNed from govwnoTS ￿ the year were £nil {2021.. £40.4221 The school has a number of pupils who are famly rnembers of govemors. Fees are payable at the same level as other pupils and entitlement to fee remission is considered in line wilh the school's slated policy for such awards. Transactions be￿en the schcd arKI its subsidiary cros￿ldS S￿1 Enterprises Lwnited are disdosed 2022 2021 R￿harged expenses Grft Aid Amounts ¢)wed bylllol Crosfields School Enterprises Limited 176,477 98.851 82.356 129,918 15,539 115,940 There were no other related party transaC￿n in the ye¥. 41 Crosfields School Trust Limited NOTES TO THE FINANCIAL STATEMENTS (continuod) For tho year ended 31 August 2022 23 Comparatlve Statement of Flnanclal Actmtles General funds Restrlcted funds Total 2021 Note Income from: Donations and legaues Charitable ￿tIVitIeS Fees receivable Ancillary income Other trading activities Income from trading activities Rents and lettings 63.112 45.929 109.041 7,957,704 109.933 7,957,704 109,933 178,609 23,773 178,609 23,773 Totsl Incom• 8.333.131 45.929 8.379.060 Expendlturé on: Charitable activiltes 7.379.730 7.379.730 Cost of ra5&ng funds I7.e￿I2 17.602 Costs of trading aclivtties 182.048 182.048 Total expendlture 7.579.380 7.579,380 Net Income before tax 753.751 45,929 799,680 Tax payablB Transfers bglwggn funds 19 40.422 (40,422) Nol Inwn• and movam•nt In funds 794.173 5.507 7tr3.680 Total funds brought fopmard 7.8S6.334 7.856.334 Total funds carrled foThvard 19 8.650.507 S.507 8.656.014 42