Wychwood School Limited Report and Financial Statements For the Period Ended 31 October 2020
Registered Charity: 309684 Company Number: 0380424
Wychwood School Limited Report of the Directors for the period ended 31 October 2020
Wychwood School Limited Company Information
Directors (who were formerly known as governors) : Mrs D J Pluck (Chairman) Ms A F E Stewart (Deputy Chairman) J Atkins +(retired 26 November 2020) Mrs S Ballard (retired 26 November 2020) W R C Briant * M Buttery (retired 26 November 2020) J Cole Ms M C Crawford Mrs R J Hayes (retired 26 November 2020) Dr A L Sharpley (retired 26 November 2020) Ms H Jackson (appointed 26 November 2020)
- Members of the finance committee + Parent Governor
Trustees (who are also the non-beneficial shareholders): Ms A F E Stewart W R C Briant Mrs D J Pluck Ms M C Crawford
Key Management Personnel (up until 31 August 2020)
Mrs A K Johnson – Head Ms B M Sherlock – Deputy Head P D Granville - Company Secretary and Finance Manager M Holland – Director Marketing and Admissions
Registered Office and Principal Office:
Wychwood School 74 Banbury Road Oxford OX2 6JR
Statutory Auditors:
Nick Westbury & Co. Limited The Old Engine Shed Whetton's Yard Chapel Street Bloxham Oxon OX15 4NB
Principal Bankers: Barclays Bank PLC
Company number (The company is registered in England and Wales): 0380424
Charity registration number (Registered with the Charity Commission for England and Wales): 309684
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Wychwood School Limited Report of the Directors for the period ended 31 October 2020
Wychwood School Limited
The Directors are pleased to present their annual report together with the audited financial statements of the charitable company for the period ended 31 October 2020.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
REORGANISATION
With effect from 1 September 2020, the business, assets and liabilities of Wychwood School Limited were transferred to Wychwood School (Oxford) Limited, a new private joint venture company, in a transaction which completed on 7 October 2020. The consideration for this disposal was received by the charity partly in cash and partly in shares in Wychwood School (Oxford) Limited such that the company is now a 49% shareholder in the joint venture with Aspire UK Holdings Limited, the purchaser, owning 51%. Wychwood School (Oxford) Limited is not a registered charity.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Constitution and administration
The company was incorporated on 5 May 1943. The ownership of the shares rests with Trustees governed by a settlement dated 16 November 1957. The company is a registered charity and is governed by the Articles of Association dated 28 June 2004.
The Directors, Trustees, Key Management Personnel and professional advisers during the period are shown on page 1.
Organisational management
The Board of Directors determined the general policy of the school. The day to day management was delegated to the Head. Directors are nominated and appointed by the Board and ratified by the Trustees in General Meeting. Directors can be nominated and appointed by the existing Trustees.
The Finance Committee was a sub-committee of the Board with particular responsibility for financial reporting to the full Board. Both the Finance Committee and the full Board met three times a year as a matter of routine. The Finance Committee operated under specific terms of reference, under which certain functions were delegated from the Board. The Finance Committee had its decisions ratified by the full Board.
The Education Committee was also a sub-committee of the Board. It met once a term, was chaired by the Head and included senior teaching staff.
Other areas in which individual Directors took a special interest were child protection, health and safety, boarding and staff liaison.
Following the reorganisation, the Board of Directors will continue to meet once a term with responsibilities focusing on investment, bursary provision and fundraising. Two Directors will be nominated to sit on the Board of Wychwood School (Oxford) Limited.
Directors' induction and training
Directors are briefed on their obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes and business plan and recent performance of the charity. Directors are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
Key Management Personnel Remuneration
Prior to the reorganisation, the Directors considered the Board, the Head and the Senior Management Team as comprising the key management personnel of the charity.
Following the disposal of the school the Directors are now the key management personnel.
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Wychwood School Limited Report of the Directors for the period ended 31 October 2020
All Directors of the company (including those acting as directors of Wychwood School (Oxford) Limited) give their time on a pro bono basis and no remuneration was paid in the period. Details of Directors' expenses and related party transactions are disclosed where necessary in the notes to the financial statements. The Directors are required to disclose all relevant interests and, in accordance with the company’s policy, withdraw from decisions where a conflict of interest arises.
The remuneration of the Head and the Senior Management Team was set by the Directors with the policy objective of rewarding them fairly and responsibly for their contribution to the school’s success and disclosed where necessary in the notes to the financial statements.
OBJECTIVES AND ACTIVITIES
Charitable objects
The chief object of the school was to provide a complete and rounded education and training for girls between the ages of 11 and 18. In carrying out its object the charitable company operated an independent girls' boarding school which is located in North Oxford.
The charity will continue to advance this objective, supporting the girls of Wychwood School through the provision of grants and bursaries and by providing financial support for the school’s development.
Aims and intended impact
The mission of the school has been to enable pupils to realise their academic potential and to develop their individual talents, preparing them for life in the wider community. This will continue to be the mission of Wychwood School (Oxford) Limited.
Sector
The school is, and will continue to be, an active member of the Girls' School Association and the Boarding Schools' Association.
ACHIEVEMENTS AND PERFORMANCE
The school opened at the beginning of the Michaelmas term 2019 with the highest numbers for the previous 7 years, bar one.
The Michaelmas Term progressed very successfully with the usual activities and events, as did the Hilary term until the impact of Covid-19 worldwide forced the country into lockdown. Wychwood remained open for the children of key workers throughout and operated a flexible online learning system that could manage families all trying to work at home together, girls in different time zones and the variable bandwidth and variety of equipment that girls would have access to at home. The curriculum was re-structured in Years 7 to 9 to a valuable skills-based curriculum where the girls learned research and journalism skills to produce newspapers. Those skills included being thorough and paying attention to detail, the ability to accept criticism and work well under pressure, excellent written and verbal communication skills, persistence and determination, the ability to present well, to work well with others, to self-motivate and to be flexible. These are essential foundations for success in many careers and the girls benefitted hugely. In Years 10 and 12 examination preparation moved online and in years 11 and 13 the Wychwood Renaissance Woman project prepared girls for A Levels or University respectively in a better manner than we have ever had the time to do before using MOOCs (Massive Online Open Courses) and internally generated resources in PSHE, careers and cultural activities. SEND pupils were supported by individual 1 to 1 sessions with key members of staff sometimes on a daily basis with regular guidance and discussion using Teams and email and differentiated work while EAL lessons continued following the girls’ individual timetables. Pastorally the progress tutor system was used to great effect to support pupils.
Centre Assessed Grades gave Wychwood very strong results in the summer of 2020 with an excellent 36 % A grades, 58 % AA grades and 84 % AAB grades at A-level. The girls had undertaken an individual and sometimes eclectic variety of subject combinations over some 23 subjects offered and they embraced the EPQ with excellent results of 50 % A and 100 % A*A grades. At GCSE 24 % grade 9, 46% grade 8-9 and 65% grades 7-9 were grades well deserved.
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Wychwood School Limited Report of the Directors for the period ended 31 October 2020
A recovery curriculum was put in place for the beginning of the Michaelmas term 2020 to ensure any learning loss was compensated for which proved almost redundant as the girls were very much where they should have been on return to live schooling. The school has progressed as a single bubble in the Michaelmas term and has been able to continue without sending any groups of children home.
Benefit and social responsibility
The Board of Directors consider that it has complied with Section 17(5) of The Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.
Despite being such a small school, the Board considers it has contributed significantly during the period under review to the public benefit in the following areas:
Financial
As a matter of policy, the school provided access to education to children from less affluent backgrounds. During the period under review, the school supported 27 girls on means tested bursaries, discounts and scholarships at a cost to the school of £158,165.
The school has also assisted and encouraged parents in applying for grants from other charitable bodies prior to entry and by sending out such information to all parents of year 11 girls and any other parents who request the information.
The headmistress of the school delivered joint history and chemistry lessons based around First World War commemoration to primary and preparatory schools in the spirit of We Will Remember. She also delivered assemblies to primary and preparatory schools.
The school offered primary school extension days in challenging subjects like mathematics, the sciences and modern foreign languages. The Experimenters’ Club provided access to our laboratories at no cost to groups from the primary maintained sector during the holidays to take part in science activities taught by the school’s chemistry teacher.
We have provided career-enhancing opportunities for young people wishing to pursue a career in teaching in the English by offering short term placements to Swiss teacher-training students and occasional short-term shadowing opportunities to local students.
Educational
The school consistently delivers academic results which are above the national average and which show excellent added value. Our analysis of public examination results implemented over the last year indicate excellent value added for boarders and strong value added across the cohorts at GCSE and A-level, including groups such as SEND, SEMH, EAL and AA girls.
The school prepares girls for global citizenship in many ways, for example a mock election, through language learning, the assembly programme which includes presentations from world religions and which focuses on personal development with an emphasis on Women’s Rights, internal forums and lectures and external events such as the High Sheriff’s law lecture and Safe Drive, Stay Alive. Annual work experience in years 9 and 11 ensures that the girls experience the requirements of the working world and they share their diverse experiences with the remaining girls once back at school. Boarding develops and promotes the people skills that so many employers identify as lacking in many young people entering the work place but which are evident in boarders.
All subjects at Wychwood are taught by well-qualified subject specialists. At a time when there is growing concern at the lack of adequately qualified teachers in subjects such as geography, mathematics and the sciences Wychwood is able to continue to provide excellent teaching, benefitting current cohorts and also helping to reduce the potential deficit in these subject specialists in future generations. This is especially true of Mathematics and Chemistry where the uptake at A level continues to be strong in the Sixth Form. Girls have entered Mathematics Challenges at all NC stages and have enjoyed the competition and intellectual stimulation. The science department has extended the curriculum through lectures in Oxford and London, and through effective use of the resources available to us in Oxford by attending days on Space Research, robotics and chemistry conferences.
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Wychwood School Limited Report of the Directors for the period ended 31 October 2020
The strong focus on the Arts at Wychwood continues with girls going to the best art colleges in the country after a Wychwood education.
Fundraising
The girls and staff have engaged in imaginative fundraising to support groups such as Sisters for Change, Macmillan Nurses, Breast Cancer Research, Rape Crisis, the British Heart Foundation, Royal Marsden Cancer, The Samaritans Christmas Concert, Collection Christmas Jumpers, Save The Children Day Shelter Box and the British Legion
As a small school our philosophy is to focus our support on charities with which girls or staff have a personal connection so that the money we donate has real meaning.
SEND
Wychwood has a strong and supportive approach to those children who have Special Educational Needs. A SENDCo co-ordinates support lessons and other provision for those with learning needs. Specialist support for dyslexia, dyspraxia, dyscalculia and at an organisational level is available. All girls are baseline-tested on entry and regular staff discussion ensures careful monitoring and the application of PPs – Pupil Profiles formerly referred to as IEPs (Individual Educational Plans). EHC plans are supported if necessary. Regular communication with parents is a feature of the holistic support offered. Providing for these needs is in itself a public good.
Boarding
At Wychwood there are both boarders and day girls with sensitive home situations or similar problems. The strong pastoral emphasis of the school means that such children can be helped to overcome their difficulties and to progress, at no cost to the state, and sometimes at minimal cost to the family. Boarding numbers have held firm against the national trend during the period. The varied and interesting programme offered in the evenings and weekends has contributed to this. The Golden Ticket programme where boarders can invite friends for a sleepover with the aim of encouraging more to board has flourished this year and our gap analysis of public exam results at A-level shows a strong correlation between success and boarding.
Community involvement
The school’s facilities have been opened to drama groups, choirs, dance groups, ballet companies and other singing and dancing groups.
Senior girls have been engaged in charitable work in the local community, for example helping in schools, nurseries, care homes and charity shops. This benefits not only the community but those pupils engaged in the work by developing their social responsibility.
There have been free adult education evening classes staffed by the school.
FINANCIAL REVIEW
The Statement of Financial Activities is set out on page 11. This shows net incoming resources of £77,944 (2019: net outgoing resources of £22,114). The net surplus on disposal of its assets was £6,037k of which £3,509k was reinvested in the joint venture.
Reserves policy
The charity has small endowment and donor imposed restricted reserves which will be maintained in accordance with donor wishes. £1,500k of its general reserves have been designated to support the development of the school by way of a loan to Wychwood School (Oxford) Limited. The Directors consider the remaining unrestricted reserves to be adequate.
Investment policy
There are no restrictions on the charity’s power to invest. The Board’s policy is to maintain capital value and distribute returns in accordance with its objectives.
GOING CONCERN
The Directors consider the charity has adequate resources to continue for the foreseeable future. For this reason, it adopts a going concern basis in preparing these financial statements.
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Wychwood School Limited Report of the Directors for the period ended 31 October 2020
PLANS FOR THE FUTURE
The Board will maintain a close involvement with the school’s operations through its Board nominated directors of Wychwood School (Oxford) Limited. The Board will seek to restructure with expertise in investment, bursary provision and fundraising. It will continue to keep closely involved with the Wychwood Association.
Under its new ownership, the school will continue to focus on its core objective of preparing girls for the next stage of their lives, providing them with the pastoral security from which they can be confident in expanding their horizons, both personal and academic.
PRINCIPAL RISKS AND UNCERTAINTIES
Risk management
Risk management is an integral part of good governance to which the charity is committed. Covid-19 introduced additional uncertainty into the school’s operations. The school made efforts to mitigate the risks by following government guidelines with regards to the virus.
The Directors of the charity have assured the school, under its new ownership by the joint venture, of future support and further investment to enable it to move forward.
Health and Safety Risk
A Health and Safety committee has met internally on a termly basis to monitor and improve the school's health and safety performance.
Third party indemnity provisions
The school has in place directors' and officers' liability insurance for the purpose of indemnifying the Directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. This insurance was in force during the period, and is in force as at the date of approving this report.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for preparing the report and financial statement in accordance with applicable law and regulations
Company law requires the Directors to prepare their annual report and financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Director must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the profit or loss of the charitable company for that period. In preparing these financial statements, the Directors are required to:
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select suitable accounting policies and then apply them consistently
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make judgements and estimates that are reasonable and prudent
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business
The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Wychwood School Limited Report of the Directors for the period ended 31 October 2020
Disclosure of information to Auditors
In so far as the Directors are aware:
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there is no relevant audit information of which the charitable company's auditor is unaware
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the Directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information
This report was approved by the Board on 26th November 2020
Mrs D J Pluck, Chairman of the Board
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Wychwood School Limited
Independent Auditors' report to the Members of Wychwood School Limited
Opinion
We have audited the financial statements of Wychwood School Limited (the ‘charitable company’) for the period ended 31 October 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 October 2020 and of its net income for the period then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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:
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the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The directors are responsible for the other information. The other information comprises the information included in the Report of the Directors, 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.
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Wychwood School Limited
Independent Auditors' report to the Members of Wychwood School Limited (Continued)
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the Directors for the financial period for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Directors has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of Directors.
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
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors 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 directors 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 directors are responsible for assessing the 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 directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 Council's website at: https://www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor's report.
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Wychwood School Limited
Independent Auditors' report to the Members of Wychwood School Limited (Continued)
Use of our report
This report is made solely to the 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.
Nicholas Westbury FCCA (Senior Statutory Auditor) for and on behalf of Nick Westbury & Co. Limited Accountants and Statutory Auditors
21 December 2020
The Old Engine Shed Whetton's Yard Chapel Street Bloxham Oxon OX15 4NB
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Wychwood School Limited
Statement of Financial Activities for the period ended 31 October 2020 (including the income and expenditure account)
| Notes INCOME: Donations and legacies Charitable activities: School fees 2 Investment income 3 Other income Lettings and sundry income Coronavirus Job Retention scheme Total income EXPENDITURE: Charitable activities: School expenditure 4 Total expenditure Net income/(expenditure) and net movement in funds Profit from the disposal of assets to joint venture Total funds at 1 September 2019 Total funds at 31 October 2020 |
Unrestricted Funds Discontinued activities £ 5,047 2,272,946 8,203 11,363 67,707 2,365,266 2,287,322 2,287,322 77,944 6,037,568 6,115,512 890,830 7,006,342 |
Restricted Funds Continued activities £ 14,400 - 315 - - 14,715 15,200 15,200 (485) - |
Endowment Fund Continued activities £ - - 52 - - 52 52 52 - - - 10,424 10,424 |
Total 2020 £ 19,447 2,272,946 8,570 11,363 67,707 2,380,033 2,302,574 2,302,574 77,459 6,037,568 6,115,027 965,238 7,080,265 |
Total Year to 31 August 2019 £ 4,557 2,284,880 4,693 62,996 - |
|---|---|---|---|---|---|
| 2,357,126 | |||||
| 2,379,240 | |||||
| 2,379,240 | |||||
| (22,114) - |
|||||
| (485) 63,984 63,499 |
(22,114) 987,352 |
||||
| 965,238 |
The statement of financial activities included all gains and losses recognised in the period.
The net income from discontinued operations was £77,944.
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Wychwood School Limited
Balance Sheet as at 31 October 2020
| Notes Fixed assets Tangible assets 7 Investments at cost 8 Current assets Stocks 9 Debtors 10 Cash at bank and in hand Liabilities Creditors: amounts falling due within one year 11 Net assets/ (current liabilities) Long term liabilities Creditors: amounts due in more than one year 12 Net assets The funds of the charity Called up share capital 13 Endowment fund 14 Restricted income funds 14 Unrestricted income funds: 14 General funds Designated funds Total charity funds |
- 658,679 3,170,376 |
2020 £ - 3,509,081 3,571,684 - 7,080,765 500 10,424 63,499 5,506,342 1,500,000 7,080,765 |
5,492 44,408 3,732 |
31 August 2019 £ 1,595,545 - (543,210) (86,597) |
|---|---|---|---|---|
| 3,829,055 (257,371) |
53,632 (596,842) |
|||
| 965,738 | ||||
| 500 10,424 63,984 890,830 - |
||||
| 965,738 |
Ms A F E Stewart Director Approved by the Board on 26th November 2020
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Wychwood School Limited
Cash Flow Statement for the period ended 31 October 2020
| Notes Cash (expended)/provided by operating activities 17 Cash flows from investing activities Investment income Proceeds from the sale of assets to joint venture Purchase of shares in joint venture company Cash provided by investing activities Increase in cash and cash equivalents in the period 16 Cash and cash equivalents at the start of the period Cash and cash equivalents at the end of the period |
2020 £ (870,101) 8,570 7,592,247 (3,509,081) 4,091,736 3,221,635 (51,259) 3,170,376 |
31 August 2019 £ 38,484 |
|---|---|---|
| 4,693 - - |
||
| 4,693 | ||
| 43,177 (94,436) |
||
| (51,259) |
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Wychwood School Limited Notes to the Financial Statements for the period ended 31 October 2020
1 Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Wychwood School Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value. The presentation currency is £ sterling.
Reconciliation with previous Generally Accepted Accounting Practice
In preparing the financial statements, the Directors have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required. No such adjustments were considered necessary.
Going concern
As set out in the Report of the Directors, the directors believe that the company has adequate resources to continue in operational existence for the foreseeable future and they believe it is appropriate to apply the going concern basis of accounting in preparing the financial statements.
Frequency of reporting
In accordance with the provisions of the Companies Act 2006 the directors have extended the current period by two months to ensure that the transfer of the school could be included in the accounts. As results the comparative amounts may not be entirely comparable.
Income
Income is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Investment income is included when receivable and the amount can be measured reliably by the charitable company.
Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of the charitable company. Designated funds are unrestricted funds of the charitable company which the Directors have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charitable company’s work or for specific projects being undertaken by the charitable company.
Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Expenditure on charitable activities includes the costs undertaken to further the purposes of the charity and their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
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Wychwood School Limited Notes to the Financial Statements for the period ended 31 October 2020
Depreciation
The Directors considered that the buildings fronting Banbury Road and Bardwell Road were an important part of the school's character and consequently ensure that they were fully maintained in order that their useful lives be extended indefinitely. It was therefore considered inappropriate to provide for depreciation. Depreciation is provided on all other tangible fixed assets, including other buildings and internal improvements, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:
Buildings 2% straight line Furniture, fittings and equipment 10 to 33% (reducing balance or straight line) Vehicles 25% reducing balance
Investments
Interests in joint ventures are accounted for using the equity method. They are initially recognised at cost. The carrying amount is then adjusted for the post-acquisition change in the company’s share of the net assets in the joint venture. The carrying amount of the investment is subsequently adjusted through the Statement of Financial Activities to reflect the company’s share of the results.
Stock
Stock has been valued at cost with a deduction for old or obsolete items computed on a consistent basis over many years.
Deferred income
Monies received relating to the Autumn term, billed to parents at the end of the Summer term, have been deferred and passed to the joint venture.
Leasing and hire purchase commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the charitable company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation were treated in the balance sheet as a liability.
The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.
Rentals paid under operating leases were charged to income on a straight-line basis over the lease term.
The charitable company had defined contribution pension schemes for staff. Contributions to the Scheme are recognised as they become payable.
Taxation
Wychwood School Limited is a registered charity and as such is exempt from income tax and corporation tax under provisions of Section 478 of the Corporation Tax Act 2010. There is no similar exemption for VAT, which is included in expenditure or in the cost of assets as appropriate.
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Wychwood School Limited Notes to the Financial Statements for the period ended 31 October 2020
----- Start of picture text -----
31 August
2 Income from charitable activities - School fees 2020 2019
£ £
School fees 2,431,111 2,369,279
Less: bursaries and awards (158,165) (84,399)
2,272,946 2,284,880
31
August
3 Investment income 2020 2019
£ £
Bank interest receivable 9 15
Interest on overdue fees 8,561 4,678
8,570 4,693
4 Analysis of expenditure on charitable activities - School expenditure
31
Staff Other August
costs costs Depreciation 2020 2019
£ £ £ £ £
Teaching 1,308,000 63,102 391 1,371,493 1,383,563
Welfare 242,057 66,769 - 308,826 347,361
Premises - 237,977 40,495 278,472 239,464
Support costs 222,968 120,815 - 343,783 408,852
1,773,025 488,663 40,886 2,302,574 2,379,240
31
August
5 Analysis of support and governance costs 2020 2019
£ £
Administrative staff costs 222,968 189,236
Advertising and recruitment 32,356 56,688
Telephone and fax 9,098 6,794
Printing, postage and stationery 19,729 19,017
Miscellaneous costs 43,518 48,017
Annual audit of the financial statements 4,100 6,014
Bank charges 2,555 3,330
Bank interest 542 2,321
Bad debts 8,917 77,435
343,783 408,852
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16
Wychwood School Limited Notes to the Financial Statements for the period ended 31 October 2020
- 6 Staff costs, employee benefits, Director and Key Management Personnel - remuneration and expenses
| and expenses | ||
|---|---|---|
| Wages and salaries Employer national insurance Pension costs - defined contribution schemes Pension costs - defined benefit scheme (see below) Death in service insurance etc. |
2020 £ 1,477,508 123,034 163,433 - 9,050 1,773,025 |
31 August 2019 £ 1,436,751 128,525 15,930 146,387 - |
| 1,727,593 |
The charitable company participated in the Teachers' Pension Scheme (England and Wales) ("the TPS") for its teaching staff until 31 August 2019.
The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pension Scheme Regulations 2014. Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
From 1 September 2019 the TPS scheme was replaced by APTIS a defined contribution scheme operated by AVIVA.
| Average number of employees: Teaching Music teachers Welfare Premises Support |
2020 - - - - - - |
31 August 2019 31 8 4 3 17 |
|---|---|---|
| 63 |
The above is based on a head count and includes both full time and part-time employees.
The total cost of one employee's wages and benefits-in-kind fell in the band £70,000 to £80,000. This employee also received retirement benefits accruing under a defined contribution scheme.
No wages or expenses were paid to the Directors in the period.
Until 31 August 2020 the Key Management Personnel of the charitable company comprised the Directors, the Head and the Senior Management Team. From the 1 September 2020 the Key Management Personnel comprised of the Directors. The total employee benefits of the Key Management Personnel of the charitable company were £215,970 (Year ended 2019: £218,825).
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Wychwood School Limited Notes to the Financial Statements for the period ended 31 October 2020
7 Tangible fixed assets
| 7 Tangible fixed assets |
|||
|---|---|---|---|
| Cost At 1 September 2019 Disposals in the period At 31 October 2020 Depreciation At 1 September 2019 Charge for the period Eliminated on disposals At 31 October 2020 Net book value At 31 October 2020 At 31 August 2019 8 Investments Share of net assets in joint venture – valued on equity method Investment in Wychwood School (Oxford) Limited – 49% of net assets |
Freehold land and buildings £ 2,162,527 (2,162,527) - 647,384 27,707 (675,091) - - 1,515,143 |
Equipment £ 577,602 (577,602) - 497,200 13,179 (510,379) - - 80,402 2020 £ 3,509,081 |
Total £ 2,740,129 (2.740,129) |
| - | |||
| 1,144,584 40,886 (1,185,470) |
|||
| - | |||
| - | |||
| 1,595,545 | |||
| 31 August 2019 £ - |
Investment in Wychwood School (Oxford) Limited
On 1 September 2020 a joint venture company, Wychwood School (Oxford) Limited (company number 12763747) assumed the responsibility for operating the School. The joint venture is wholly owned by Wychwood School Limited and Aspire UK Holdings Limited. Aspire UK Holdings Limited have the right to appoint three directors to the board, and Wychwood School Limited have the right to appoint two directors to the board. Aspire UK Holdings Limited own 51% of the investment in the joint venture, and Wychwood School Limited 49%.
The investment is recorded at cost at 7 October 2020 and the directors consider this represents a fair valuation at 31 October 2020
| 9 Stocks Raw materials and consumables |
2020 £ - |
31 August 2019 £ 5,492 |
|---|---|---|
18
Wychwood School Limited Notes to the Financial Statements for the period ended 31 October 2020
| 10 Debtors Trade debtors Prepayments and accrued income Loan to joint venture company |
2020 £ 8,679 - 650,000 658,679 |
31 August 2019 £ 7,313 37,095 - |
|---|---|---|
| 44,408 |
Loan to Wychwood School (Oxford) Limited
During the period Wychwood School (Oxford) Limited has been advanced £650,000 to finance school development. The loan has been made available for five years and will attract interest at a rate of 3% above the Bank of England base rate, or 3% in the event that the Bank of England base rate falls below 0%.
| 11 Creditors: amounts falling due within one year 2020 £ Bank loans and overdrafts - Trade creditors - Other taxes and social security costs - Other creditors - Accruals and deferred income 12,775 Due to joint venture company 244,596 257,371 Included in trade creditors is £nil (2019: £278,239) relating to fees received in advance. 12 Creditors: amounts due in more than one-year 2020 £ Trade creditors - 13 Share capital 2020 31 August 2019 2020 No No £ Allotted, called up and fully paid: Ordinary shares of £1 each 500 500 500 |
2020 £ - - - - 12,775 244,596 |
31 August 2019 £ 54,991 473,602 30,625 3,138 34,486 - 596,842 2019 £ 86,597 31 August 2019 £ 500 |
31 August 2019 £ 54,991 473,602 30,625 3,138 34,486 - |
31 August 2019 £ 54,991 473,602 30,625 3,138 34,486 - |
|---|---|---|---|---|
| 257,371 | 596,842 |
19
Wychwood School Limited Notes to the Financial Statements for the period ended 31 October 2020
14 Analysis of fund balances between the net assets
| At 1 September 2019 Net movement in the period Transfer between funds At 31 October 2020 Represented by: Fixed assets Net current assets |
Unrestricted Funds £ 890,830 6,115,512 - 7,006,342 3,509,081 3,497,261 7,006,342 |
Restricted Funds £ 63,984 (485) - 63,499 - 63,499 63,499 |
Endowment Fund £ 10,424 - - 10,424 - 10,424 10,424 |
Total 2020 £ 965,238 6,115,027 - |
|
|---|---|---|---|---|---|
| 7,080,265 | |||||
| 3,509,081 3,571,184 |
|||||
| 7,080,265 |
The directors have designated £1,500k of unrestricted funds to be used as a loan to help support development of the school in the joint venture company, of which £650k was to be drawn down at completion on 7th October.
Restricted income funds comprise:
| At 1 September 2019 Net movement in the period At 31 October 2020 Represented by: Net current assets |
Piano, treadmill, hall lights and drive way Funds £ 800 (800) |
Bursary Fund £ 39,889 199 |
Schuller Memorial Fund £ 23,295 116 |
Total 2020 £ 63,984 (485) |
|
|---|---|---|---|---|---|
| - - - |
40,088 40,088 40,088 |
23,411 23,411 23,411 |
63,499 | ||
| 64,499 | |||||
| 64,499 |
The Piano Fund represents money given to purchase a new Baby Grand Piano for the hall. During the period a further £5,000 of donations were received and a new piano was purchased for £5,995.
The Treadmill Fund represents money given to purchase a new Treadmill, During the year donations of £3,400 were received and the treadmill purchased.
During the period £6,000 was donated to replace the lights in the hall and to repair the driveway. The entire fund was spent by 31 October 2020.
The Bursary Fund represents money given to provide bursaries to cover all or part of the fees for pupils who would not otherwise be able to attend the school.
The Schuller Memorial Fund is used for French related activities.
The Endowment Fund is a prize fund. The income from the fund may be used to fund an annual prize in respect of poetry and/or prose-poetry competition and to buy books for the Charlotte Kell collection of poetry and art. The amount of the endowment represented by accumulated income at 31 October 2020 is £191 (31 August 2019: £139). No prize was awarded in the period due to Covid.
20
Wychwood School Limited Notes to the Financial Statements for the period ended 31 October 2020
15 Other financial commitments
At the period/year end the charitable company had total commitments under non-cancellable operating leases as set out below:
| Land and buildings 2020 £ Operating leases which expire: within one year - within two to five years - in over five years - - |
Land and buildings 31 August 2019 £ - - - - |
Other 2020 £ - - - - |
Other 31 August 2019 £ - 10,576 - |
|---|---|---|---|
| 10,576 |
During the period the charitable company paid a total of £26,863 in operating lease rentals (Year ended 31 August 2019: £20,988)
| 16 Analysis of changes in cash Cash at bank and in hand Overdrafts Total |
and cash equivalents At 1 September 2019 Cash flows £ £ 3,732 3,166,644 (54,991) 54,991 (51,259) 3,221,635 |
Non-cash changes £ - - - |
At 31 October 2020 £ 3,170,376 - |
|---|---|---|---|
| 3,170,376 |
17 Reconciliation of net movement in funds to net cash flow from operating activities
| Net movement in funds Disposal of assets to joint venture company Depreciation charges Investment income Decrease/(increase) in stocks (Increase)/decrease in debtors (Decrease) in creditors Net cash (expended)/provided by operating activities |
2020 £ 6,115,027 (6,037,568) 40,866 (8,570) 5,492 (614,271) (371,077) (870,101) |
31 August 2019 £ (22,114) - 43,999 (4,693) (744) 42,870 (20,834) |
|---|---|---|
| 38,484 |
21
Wychwood School Limited Notes to the Financial Statements for the period ended 31 October 2020
18 Related party transactions
Directors are charged school fees at the normal rate, and are not entitled to discounts by virtue of being a governor.
During the period the company transferred its freehold property, debtors and liabilities to its joint venture company, Wychwood School (Oxford) Limited at an open market value of £7,059,580. In consideration the company received 9,608 B ordinary shares in Wychwood School (Oxford) Limited, which represents 49% of the shares, and £3,600,357 in cash.
During the period Wychwood School (Oxford) Limited has been advanced £650,000 for school development. The loan has been made available for five years and will attract interest at a rate of 3% above the Bank of England base rate, or 3% in the event that the Bank of England base rate falls below 0%.
Two of the directors of the company, Mrs D J Pluck and Ms A F E Stewart are also directors of Wychwood School (Oxford) Limited for which they receive no remuneration.
22