**Company Registration No. 01067862 (England and Wales) Charity Registration No. 309911**
# **BEACON EDUCATIONAL TRUST LTD DIRECTORS' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
# **BEACON EDUCATIONAL TRUST LTD COMPANY INFORMATION GOVERNORS, OFFICERS AND ADVISORS**
The Governors who served during the year ended 31 August 2022 were as follows:-
**Directors**
D C L Miller – Chair (All) FEM Mayhew – Vice Chairman (3) M Thompson – Vice Chairman (4) G L Bailey (3) & (5) M Entrican (2) V Fawkes (2) S Gillam (2) R Herbert (1) S Horrocks (2) & (4) P McGlone (1) A Nott (2) J R Pardon (1) & (2) – resigned 31 December 2021 J E Rampin (1) & (3) B Shah (1) A Wansbrough (4) D Thaker – appointed 24 March 2022 (1)
- (1) Member of the Finance and General Purposes Committee
- (2) Member of the Education Committee
- (3) Member of the Admissions and Marketing Committee
- (4) Member of the Human Resources Committee
- (5) Member of the Health and Safety Committee
**Secretary** F Muzika **Company number** 01067862 **Registered Charity number** 309911 **Registered office** Amersham Road, Chesham Bois Amersham Buckinghamshire HP6 5PF **Auditors** Crowe U.K. LLP Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL
## **BEACON EDUCATIONAL TRUST LTD COMPANY INFORMATION GOVERNORS, OFFICERS AND ADVISORS (CONTINUED)**
## **Business address**
Amersham Road, Chesham Bois Amersham Buckinghamshire HP6 5PF
## **Bankers**
National Westminster Bank plc Oakfield Corner, Hill Avenue Amersham Buckinghamshire HP6 5BU
## **Officers**
The Headmaster: N R Baker BA (Hons) PGCE Director of Finance & Operations F Muzika ACA Clerk to the Governors: H J Farrelly
## **BEACON EDUCATIONAL TRUST LTD**
## **CONTENTS**
||**Page**|
|---|---|
|Annual Report of the Governors (Directors)|1 - 6|
|Statement of Governors’ Responsibilities|7|
|Auditors' Report|8 – 11|
|Statement of Financial Activities|12|
|Balance Sheet|13|
|Cash Flow Statement|14|
|Notes to the Financial Statements|15 - 27|
## **BEACON EDUCATIONAL TRUST LTD ANNUAL REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022**
The members of The Beacon Educational Trust Limited Governing Body present their annual report for the year ended 31 August 2022 under the Charities Act 2011 and the Companies Act 2006, thus including the Directors' Report and Strategic Report under the 2006 Act, together with the audited financial statements for the year. The members are Directors, Trustees and Governors and these terms are all used within this report.
## **DIRECTORS' REPORT Constitution and Objects**
The Beacon Educational Trust Limited is a charitable company limited by guarantee. Its Charity registration number is 309911 and the company registration number is 01067862. The registered office and principal address of the company is Amersham Road, Chesham Bois, Amersham, Buckinghamshire, HP6 5PF.
The company is governed by its Memorandum and Articles of Association, which state that its object is to advance the education of the public. In furtherance thereof, the company operates The Beacon School, a preparatory school.
## **Aims, Objectives and Activities**
## **Aims**
The Beacon aims to inspire boys to achieve their best within a happy, safe and stimulating environment, providing education of the highest quality delivered by caring and dedicated teachers. To achieve this, the School continues with the support of parents to:
- Promote high standards of academic achievement through consistent expectation and encouragement.
- Nurture talent and provide opportunity for all in the areas of art, drama, music, sport and technology.
- Enable pupils to develop the social and emotional skills needed to believe in themselves, to show consideration for others and to value diversity.
- Foster lifelong thinking, learning and communication skills to enable pupils to work independently and as part of a team.
## **Primary Objectives**
Key elements of the School's strategy are to:
1. Maintain a broad curriculum that is directed towards independent and lifelong learning.
2. Uphold the traditional values associated with preparatory education, through its pastoral system,
- whilst ensuring that pupils are taught the skills and knowledge they will need to meet the challenges of the changing world.
3. Embed information technology into the curriculum as the principal means of enhancing teaching and learning.
4. Provide new and improved existing buildings and other facilities to support the educational, cultural and pastoral aims of the School.
## **Governance and Management**
## **Governing Body**
The directors serve as trustees of the Charity and under the terms of the above Articles are also members of the company. Each director is elected by the Board of directors on the basis of nominations received from serving directors, the headmaster and others. Directors are selected on the basis of their skills and suitability. The chairman of the Board is responsible for the induction of new directors, which includes making them aware of their responsibilities, the governing documents, administrative procedures, the history and philosophical approach of the company and previous annual reports and accounts. Every director is vetted for safeguarding purposes prior to appointment.
Page 1
## **BEACON EDUCATIONAL TRUST LTD ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
The first term of office for a director shall be: (a) for an ex officio director - while he or she holds office; and (b) for other Directors - three years; provided that the Directors may determine that the Director shall in fact retire at the end of a meeting of the Board of Directors held within twelve months of the end of the Director's term of office. A Director who has served two consecutive terms of three years may be reappointed for a further term not exceeding two years if the Board considers that the Director's reappointment would be in the best interests of the Charity. At the end of that term, the Director may be reappointed by the Board for a further term not exceeding 2 years, subject to the same considerations, and may be appointed for further terms (each term not exceeding 2 years) thereafter on the same basis. A retired Director may be reappointed to hold office, provided that a year has elapsed since he or she last held office as a Director and provided that the Board considers that it would be in the best interests of the Charity for him or her to be eligible for reappointment.
The directors usually meet as a Board three or more times per year to determine policy and to monitor the operations of the company. Their role is assisted by the work of the Board Committees which usually meet a few weeks before each regular meeting of the Board. The day-to-day running of the School is delegated to the headmaster who, with the Director of Finance and Operations (“DFO”), is assisted by other members of the School leadership team.
## **Employment Policy**
The School supports the attainment of the highest standards of education through rigorous and continuous evaluation of quality and performance, the application of best practice and a widespread desire to improve standards. The School co-operates with local organisations to widen public access to its facilities.
The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees continues on an ongoing basis with the aim of taking employees into account when decisions are made that are likely to affect their interests.
## **Remuneration Policy for Key Management**
Remuneration of the headmaster and the DFO is set by the Remuneration Committee after appropriate consultation and benchmarking in order to ensure recruitment and retention of quality staff.
## **PROVISION OF INFORMATION TO AUDITORS**
Each of the persons who are directors at the time when this Report is approved has confirmed that:
- so far as that director is aware, there is no relevant audit information of which the School’s auditors are unaware; and
- that director has taken all steps that ought to have been taken as a director in order to be aware of any relevant audit information needed by the School’s auditors in connection with preparing their report and to establish that the School’s auditors are aware of that information.
## **AUDITORS**
A resolution proposing the re-appointment of Crowe U.K. LLP as auditors to the company will be put to the Annual General Meeting.
Page 2
## **BEACON EDUCATIONAL TRUST LTD ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **STRATEGIC REPORT**
## **Mission Statement**
The School’s mission is to inspire boys to achieve their best within a happy, secure and stimulating environment, providing education of the highest quality, delivered by an enthusiastic and committed team of teachers and staff.
## **Strategies to Achieve the Primary Objectives**
To achieve this aim the School will, with the support of parents:
- Promote high standards of academic achievement through consistent expectation and encouragement.
- Nurture talent, and provide opportunities for all, in the areas of art, drama, music, sport and technology.
- Enable pupils to develop the social and emotional skills needed to believe in themselves, show consideration for others and value diversity.
- Foster lifelong thinking, learning and communication skills to enable pupils to work independently and as part of a team.
## **Ten Year Plan**
The Governors are five years into their ten-year strategic plan entitled “The Beacon Vision” which comprises five key components: delivery of exceptional teaching and learning; promotion of well-being for pupils, staff and parents; development of the School site; and the creation of a ‘Beacon Network’. Success will be measured by the School’s ability to encourage initiative, innovation, entrepreneurship and philanthropy in all. In setting these components and planning, the Governors have complied with their duty in Section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit. Despite the unprecedented impact of the global Covid pandemic the Board are comfortable with this plan and that the School continues to maintain progress.
## **Achievements and Performance**
The school has taken two major events in its stride over the past year: a full ISI Educational Quality Inspection in February 2022 and the arrival of our new Headmaster, Mr Nick Baker, in September 2022. Both events unfolded smoothly and successfully. Although expected (it was overdue, having been delayed by the pandemic), inspection is always a challenge. The staff and boys responded extremely well and the inspectors’ judgements of ‘Excellent’ in all categories are a significant accolade.
Outcomes for boys remain strong in terms of number of places and scholarships won at 13+ and also the Buckinghamshire Transfer Test (11+). Now that all Covid restrictions are lifted, boys can once again benefit from the wide range of activities and opportunities that The Beacon offers; we are looking to build further on these in the year ahead.
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## **BEACON EDUCATIONAL TRUST LTD ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Public Benefit**
## **Bursaries and Scholarships**
The Governors continue to be committed to broadening access to the School by offering means-tested bursaries of up to 100% to enable more boys whose parents would not otherwise be able to afford the fees to benefit from the School's education and facilities.
In 2021/22, four boys in the School benefited from 100% fee bursaries, two from 80% and one from 50% bursary, to a total value of £105,486 (2021: £113,544). These bursaries also covered all reasonable educational extras, such as uniform, equipment, School trips and other extra-curricular activities.
## **Beacon Bursary Fund**
The Beacon Bursary Fund is a Charity set up and run independently of the School, by four trustees. Its purpose is to assist with funding for the education of pupils of The Beacon School, whose parents encounter financial difficulties, and who might otherwise have to withdraw their son(s) from the School at a time detrimental to their educational progress. The fund derives its income from parental donations, gift aid and investment income. In 2021/22 financial assistance to the value of £16,397 (2021: £47,447) was given by the fund, the two previous years having been heavily impacted by the pandemic.
## **Community Links**
The School co-operates with local charities and community based organisations in order to widen public access and to share its cultural and sporting facilities. Efforts continue to develop and expand in this respect.
In particular, the School's facilities are offered for modest rents to locally based clubs, and the School hosts sporting and academic competitions in which local Schools participate.
Free use of the school’s swimming pool has continued to be provided for Horizon Sports Club, a local disabled children’s sports charity.
There is a continued focus on giving support via free use of the school’s facilities to The Theatre Shed whose vision is to build a sustainable theatre that brings together many more children and adults from a range of backgrounds to create wonderfully innovative, inspiring, inclusive theatre.
In August the School funded a fortnight’s summer camp free of charge for 30 children of Ukrainian refugee families being hosted locally, including transportation and an interpreter.
The School is always keen to maintain a good working relationship with the neighbouring and the local community. In addition, the school has hosted tea parties for local veterans.
## **Charitable Fund Raising**
The School’s on-going commitment to charitable fundraising has continued as demonstrated by events to support a number of national charities including Save the Children, Chiltern, Toybank, Chiltern Foodbank, DEC Ukranian Appeal, NSPCC, Macmillan Cancer Support, Young Minds, Roald Dahl Marvellous Children’s Charity, Rotary Shoe Box Collection, AntiBullying Alliance, Movember, Poppy Appeal, Children In Need, Comic Relief, and CoFarm. We also raise money towards the Beacon Bursary Fund.
## **Volunteers**
The School benefits from the fund-raising activities of parents through The Beacon Parents' Society, whose hard work and support is greatly appreciated by the Governors.
Page 4
## **BEACON EDUCATIONAL TRUST LTD ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Financial Review**
## **Results for the Year**
Total income amounted to £9,006,844 _(2021: £8,028,334)._ Net incoming resources for the year were £523,468 compared with £783,634 in 2020/21.
During the year a total of £374,237 _(2021:_ £1,443,361 _)_ was spent on capital projects to enhance the appearance, security and functionality of the School.
## **Reserves Level and Policy**
The Governors' policy is to build the company's free reserves over the coming five years to £2m, to cover the immediate needs for essential operating expenditure for one term. The Governors plans to achieve this will however inevitably be affected by periodic opportunities to equip the School with the up-to-date facilities needed to maintain the standard of educational services provided for the benefit of future pupils.
The School’s unrestricted funds stood at £16,878,300 _(2021: £_ 16,194,420 _)_ at the end of the period. After adjusting for unrestricted functional fixed assets for the Charity’s own use and the loans connected there to, free reserves stood at £1,770,785 _(2021:_ £827,317 _)_ .
## **FUTURE PLANS**
The company's future plans include:
- Continuing to provide education of the highest quality.
- Implementation of “The Beacon Vision”.
- Maintaining sound financial management.
## **Risk Management**
The Board keeps the School's activities under review and monitors the risks that arise from time to time, together with the systems and procedures established to manage them. The Board monitors the effectiveness of the system of internal controls and other means, including insurance cover, by which those identified risks can be mitigated. The key controls used include:
- Formal agendas for all Board and committee meetings.
- Detailed terms of reference for all committees.
- Comprehensive strategic planning, budgeting and management accounting.
- Established organisational structure and lines of reporting.
- Formal written policies.
- Clear authorisation and approval levels.
- Vetting procedures for the protection of the children.
The major risks are maintenance of academic standards (mitigated via recruitment procedures as well as appraisal process), child protection (mitigated via strict adherence to safeguarding rules) and quality of the School facilities (mitigated by the latest School vision).
Through these procedures, the Board is satisfied that major risks should be identified and mitigated against so far as practicable whilst recognising that systems provide only reasonable but not absolute assurance that all risks are identified.
The School purchases indemnity insurance for the Governors.
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## **BEACON EDUCATIONAL TRUST LTD ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **Risks and Threats to the Independent Schools’ Sector**
Through the School’s links to and membership of the Independent Association of Prep Schools (IAPS) and the Independent Schools’ Bursars Association (ISBA) the School keeps itself abreast of issues facing the sector as a whole.
The School monitors all threats, such as the global Covid pandemic, the general economic climate and BREXIT and will take appropriate action to adjust budgets and plans should it become necessary.
The Governors are confident in the School’s ability to manage these risks.
This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Governors of the Beacon Educational Trust Limited in March 2022 including in their capacity as company directors approving the Strategic Report contained therein and is signed as authorised on its behalf by:
DCL Miller - Chairman **Director**
23 March 2023
Page 6
## **BEACON EDUCATIONAL TRUST LTD STATEMENT OF GOVERNORS’ RESPONSIBILITIES**
The Governors (who are also directors of The Beacon Educational Trust Ltd for the purposes of company law) are responsible for preparing the Governors’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).
Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors 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 incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, 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 and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Crowe U.K LLP _Chartered Accountants_ Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL Tel: +44 (0)118 959 7222 Fax: +44 (0)118 958 4640 www.crowe.co.uk
## **BEACON EDUCATIONAL TRUST LTD INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BEACON EDUCATIONAL TRUST LTD**
## **Opinion**
We have audited the financial statements of The Beacon Educational Trust Limited for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- Give a true and fair view of the state of the charitable company’s affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- Have been prepared in accordance with the requirements of the Companies Act 2006.
## **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:
- The Governors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- The Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
> Crowe U.K. LLP is a limited liability partnership registered in England and Wales with registered number OC307043. The registered office is at 55 Ludgate Hill, London EC4M 7JW. A list of the LLP’s members is available at the registered office. All insolvency practitioners in the firm are licensed in the UK by the Insolvency Practitioners Association. Crowe U.K. LLP is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Crowe U.K. LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global.
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## **BEACON EDUCATIONAL TRUST LTD INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BEACON EDUCATIONAL TRUST LTD (CONTINUED)**
## **Other Information**
The Governors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on Other Matters Prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit
- The information given in the Governors’ report, which includes the Governors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The strategic report and the Governors’ report included within the Governors’ report have been prepared in accordance with applicable legal requirements.
## **Matters On Which We Are Required to Report By Exception**
In 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 strategic report or the Governors’ report included within the Governors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- Adequate accounting records have not been kept; or
- The financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of Governors' remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit
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## **BEACON EDUCATIONAL TRUST LTD**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BEACON EDUCATIONAL TRUST LTD (CONTINUED)**
## **Responsibilities of Governors**
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Governors are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors 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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to Which the Audit was Considered Capable of Detecting Irregularities, Including Fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Charities Act together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014, Health and Safety and General Data Protection Regulations. Auditing standards limit the required audit procedures to identify noncompliance with these laws and regulations to enquiry of the Governors and other management and inspection of regulatory and legal correspondence, if any.
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## **BEACON EDUCATIONAL TRUST LTD**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE BEACON EDUCATIONAL TRUST LTD (CONTINUED)**
The greatest risk of material impact on the financial statements is from irregularities, including fraud, to be within the timing of recognition of non-fee income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance and General Purposes Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, sample testing on non-fee income, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.
## **Use of Our Report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Alastair Lyon Senior Statutory Auditor
For and on behalf of **Crowe U.K. LLP** Statutory Auditor Aquis House 49-51 Blagrave Street Reading RG1 1PL
Date: 24 March 2023
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## **BEACON EDUCATIONAL TRUST LTD STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022**
|Notes
**INCOME AND ENDOWMENTS**
**FROM:**
**Charitable activities:**
School fees receivable
4a
Ancillary trading income
4b
CJRS grant income
**Other trading activities:**
Interest received
Rent and facility hire
**Donations**
**Total**
**EXPENDITURE ON:**
**Charitable activities:**
School operating costs
**Expenditure on raising funds:**
Financing costs
6
**Total**
7a
**Net income and expenditure**
Transfer between funds
**NET MOVEMENT IN FUNDS**
_Funds brought forward 1 September 2021_
**Funds carried forward at 31 August 2022**|**Unrestricted**
**Funds**
**£**
**8,574,317**
**151,326**
**5,867**
**196,570**
**-**
**8,928,080**
**8,236,060**
**28,090**
**8,264,150**
**663,930**
**19,950**
16,194,420
**16,878,300**|**Restricted**
**Funds**
**£**
**-**
**-**
**-**
**-**
**78,764**
**78,764**
**-**
**-**
**-**
**78,764**
**(19,950)**
30,235
**89,049**|**Total**
**2022**
**£**
**8,574,317**
**151,326**
**5,867**
**196,570**
**78,764**
**9,006,844**
**8,236,060**
**28,090**
**8,264,150**
**742,694**
**-**
16,224,655
**16,967,259**|_Total_
_2021_
_£_
_7,783,449_
_177,107_
_-_
_2,116_
_56,572_
_9,090_|
|---|---|---|---|---|
|||||_8,028,334_|
|||||_7,463,078_
_41,788_|
|||||_7,504,866_|
|||||_523,468_
_-_
_523,468_
_15,701,187_
_16,215,565_|
||||||
||||||
All incoming resources and resources expended are derived from continuing operations.
The notes on pages 15 to 28 form part of these financial statements
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## **BEACON EDUCATIONAL TRUST LTD COMPANY NUMBER: 01067862**
## **BALANCE SHEET**
## **31 AUGUST 2022**
|Notes
**FIXED ASSETS**
Tangible assets
8
**CURRENT ASSETS**
Stock
Debtors
9
Cash at bank and in hand
**CREDITORS**: Amounts falling due within one year
10
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**CREDITORS**: Amounts falling due after more than one year
11a
**TOTAL NET ASSETS**
**Unrestricted funds**
13
**Restricted funds**
14
**TOTAL FUNDS**
15|**2022**
**£**
**16,768,350**
**7,669**
**1,848,318**
**4,019,211**
**5,875,198**
**(4,292,501)**
**1,582,697**
**18,351,047**
**(1,383,698)**
**16,967,349**
**16,878,300**
**89,049**
**16,967,349**|_2021_
_£_
_17,254,424_
_5,351_
_1,179,967_
_4,076,265_
_5,261,583_
_(4,719,068)_
_542,515_
_17,796,939_
_(1,572,284)_
_16,224,655_
_16,194,420_
_30,235_
_16,224,655_|
|---|---|---|
These financial statements were approved and authorised for issue by the Board and were signed on its behalf on 23 March 2023.
DCL Miller Chairman
The notes on pages 15 to 28 form part of these financial statements
Page 13
## **BEACON EDUCATIONAL TRUST LTD STATEMENT OF CASH FLOWS**
## **FOR THE YEAR ENDED 31 AUGUST 2022**
|**Cash Flows from Operating Activities**
Net movement in funds
Depreciation
(Profit)/loss on disposal of tangible fixed asset
(Increase)/decrease in stock
Decrease/(increase) in debtors
Increase in creditors
Interest paid
Interest received
**Cash Used in Operating Activities**
**Cash Flows from Investing Activities**
Interest received
Purchase of tangible fixed assets
Proceeds from sale of tangible fixed assets
**Cash Provided used in Investing Activities**
**Cash Flows from Financing Activities**
New loans received
Repayment of long term bank loan
Advanced fees utilised
Receipts from advanced fees
Interest Paid
**Cash used in Financing Activities**
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
**Total cash and cash equivalents at the end of the**
**year**
Cash at bank
**Total cash and cash equivalents at the end of the year**|**2022**
**742,694**
**701,171**
**159,139**
**(2,317)**
**(668,351)**
**(170,109)**
**28,090**
**(202,437)**
**587,880**
**202,437**
**(374,237)**
**-**
**(171,800)**
**-**
**(418,486)**
**(266,790)**
**240,232**
**(28,090)**
**(473,134)**
**(57,054)**
**4,076,265**
**4,019,211**
**At 31**
**August**
**2022**
**£**
**4,019,211**
**4,019,211**|_2021_
_523,468_
_708,257_
_-_
_(112)_
_305,706_
_48,212_
_41,788_
_(58,688)_|
|---|---|---|
|||_1,568,631_
_58,688_
_(1,422,786)_
_-_
_(1,364,098)_|
|||_-_
_(258,105)_
_(199,899)_
_171,074_
_(41,788)_|
|||_(328,718)_|
|||_(124,186)_
_4,200,451_
_4,076,265_
_At 31_
_August_
_2021_
_£_
_4,076,265_
_4,076,265_|
The notes on pages 15 to 28 form part of these financial statements
Page 14
**BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **1. Company information**
The Beacon Educational Trust’s principal activity continued to be the provision of a Day School for 3-13 year old boys. The incorporated Charity (Charity registration number 309911, Company registration number 01067862), is incorporated and domiciled in the UK and is a company limited by guarantee. The address of the registered office is Amersham Road, Chesham Bois, Amersham, Buckinghamshire, HP6 5PF.
## **2. ACCOUNTING POLICIES**
## **a) Accounting Convention**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Beacon Educational Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **b) Going concern**
2020 and 2021 have been an unprecedented experience in terms of the Covid global pandemic, the effects of which, economic and otherwise, may continue further into the future both for families and the School. However the School has prepared conservative financial projections for the near to medium term which indicate that even if Government restrictions forced the School site to close again, the School is financially well placed to withstand such headwinds.
Having reviewed the funding facilities available to the School together with the expected on-going demand for places and the School's future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
## **c) Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **d) Incoming resources**
All incoming resources are included in the statement of financial activities when the charitable company is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Amounts billed for termly fees and extra curricula activities are recognised as incoming resources when receivable. Amounts received prior to the balance sheet date for autumn term fees are recorded as fees received in advance, as are amounts received for future fee periods under the fee prepayment scheme. Fees receivable are stated after deducting allowances, bursaries and other remissions granted by the School.
Coronavirus Job Retention Scheme (CJRS) grant income is recognised on a straight line basis over the furlough period of each relevant employee, as permitted by the Charities SORP.
Page 15
**BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **2. ACCOUNTING POLICIES (CONTINUED)**
## **e) Resources expended**
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.
Governance costs comprise the costs of running the company, including external audit, and legal advice for the School’s Governors, and all costs of complying with constitutional and statutory requirements, such as the costs of Committee meetings and of preparing the statutory accounts and satisfying public accountability.
Redundancy and termination payments are included within the accounts on an accruals basis, in line with other expenditure and measure at the best estimate of the expenditure required to settle the obligation at the reporting date.
## **f) Tangible fixed assets**
Depreciation is provided on tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:-
|Freehold buildings|- 2% per annum (straight line)|
|---|---|
|Minor works|- 10% per annum (straight line)|
|Fixtures, fittings and equipment|- 10% per annum (straight line)|
|Motor vehicles|- 25% per annum (straight line)|
|Computer equipment|- 33% per annum (straight line)|
Assets under £500 are not capitalised.
## **g) Pupil Fee Deposits**
The Governors have reviewed the contract terms under which Pupil fee deposits are held by the School. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the School, pupils can leave at earlier dates. The School does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August 2021 have been included within current liabilities. The prior year Pupil fee deposits balance has been similarly re-presented.
## **h) Pension costs**
The School contributes to the Teachers’ Pension Scheme at rates set by the Scheme Actuary and advised to the School by the Scheme Administrator. The scheme is a multi-employer pension scheme and is not possible to identify the assets and liabilities of the scheme, which are attributable to the School. In accordance with FRS 102 therefore, the scheme is accounted for as a defined contribution scheme.
The School also contributes to a defined contribution scheme for non-teaching staff.
The contributions are charged in the Statement of Financial Activities in the year in which they are payable.
The pension costs charged in the year for the Teachers’ Pension Scheme are based on the contributions made to the centralised Government pension scheme run by the Department of Education as stated in note 18 to these financial statements.
## **i) Operating leases**
## **As Lessee**
Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred.
Page 16
## **BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **2. ACCOUNTING POLICIES (CONTINUED)**
## **j) Operating leases (continued)**
## **As Lessor**
In respect of operating leases for which the School is the lessor, the rents received are recognised in the financial statements in the period they relate to.
## **k) Taxation**
The company is a registered Charity. It has no liability to corporation tax on any of its sources of income or on any chargeable gains realised to date
## **l) Financial instruments**
Basic financial instruments include debtors and creditors. Debtors and creditors are initially recognised at transaction value and subsequently measured at amortised cost.
## **3. Significant judgements and estimates**
In the application of the Charity’s accounting policies, which are described in note 2, Governors are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.
The Governors consider there are no material sources of estimation uncertainty on the amounts recognised in the financial statements.
## **4a. FEES RECEIVABLE**
|School fees receivable consist of:
Gross fees
Less: Bursaries & Allowances
Net fees receivable
**NCILLARY TRADING INCOME**
Fees in lieu of notice
School fees refund scheme
School bus
Registration charges
Learning support fees
After school care
Deposits forfeited
Music tuition and instrument hire
Miscellaneous income|**2022**
**£**
**8,698,978**
**(124,661)**
**8,574,317**
**125**
**-**
**81,401**
**22,000**
**33,540**
**11,124**
**750**
**488**
**1,898**
**151,326**|_2021_
_£_
_7,919,078_
_(135,629)_|
|---|---|---|
|||_7,783,449_
_50,922_
_(171)_
_65,144_
_24,375_
_6,179_
_-_
_14,049_
_105_
_16,504_
_177,107_|
## **4b. ANCILLARY TRADING INCOME**
Page 17
## **BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **5. STAFF COSTS**
|**2022**
**£**
Wages and salaries
**4,227,165**
Social security costs
**435,676**
Pension contributions
**677,927**
**5,340,768**
The average number of employees in the year was:-
Teachers and teaching assistants
**101**
Support
**24**
Welfare
**8**
Premises
**6**
**139**
The number of employees whose remuneration exceeded £60,000 was:
**No.**
Between £60,000 - £70,000
**2**
Between £70,000 - £80,000
**2**
Between £80,000 - £90,000
**-**
Between £90,000 - £100,000
**1**
Between £100,000 - £110,000
**1**
Between £110,000 - £120,000
**-**|_2021_
_£_
_3,892,726_
_397,457_
_644,821_|
|---|---|
||_4,935,004_|
||_87_
_23_
_7_
_6_|
||_123_|
||_No._
_3_
_1_
_-_
_-_
_1_
_1_|
Of the employees whose annual remuneration exceeded £60,000, 4 _(2021: 4)_ have retirement benefits accruing under a defined benefit scheme. Total employer contributions in the year to the defined benefit scheme were £70,553 _(2021: £81,887)_ . Of the employees whose annual remuneration exceeded £60,000, 1 ( _2021: 1_ ) has retirement benefits accruing under a defined contribution scheme. Total employer contributions in the year to the Scheme were £6,720 ( _2021: £6,653)_ .
None of the Governors received any remuneration during the year ( _2021: Nil)_ . During the year four _(2021: one)_ Governors were reimbursed travelling expenses, webinar tickets, training day expenses and subscription expenses totalling £4,784 _(2021: £92)._
Key management personnel consists of the Headteacher and the Director of Finance and Operations. They received aggregate remuneration (including employer’s national insurance and pension contributions) of £371,616 ( _2021: £283,079_ ).
During the year termination payments totalling £19,530 _(2021: £12,202)_ were paid to one _(2021: Two)_ employee.
## **6. FINANCING COSTS**
|On bank loans and overdrafts
Advance payment of fees discount|**2022**
**£**
**21,578**
**6,512**
**28,090**|_2021_
_£_
_35,144_
_6,644_|
|---|---|---|
|||_41,788_|
**BEACON EDUCATIONAL TRUST LTD**
Page 18
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **7a. EXPENDITURE – Analysis of total resources expended**
|**2021**
**Charitable activities:**
Teaching costs
Welfare costs
Premises costs
Support costs
Governance costs
**Cost of generating**
**funds:**
Finance costs
**TOTAL RESOURCES**
**EXPENDED**
_2021_
_Charitable activities:_
_Teaching costs_
_Welfare costs_
_Premises costs_
_Support costs_
_Governance costs_
_Cost of generating_
_funds:_
_Finance costs_
_TOTAL RESOURCES_
_EXPENDED_|**Staff**
**costs**
**£**
**4,163,647**
**149,021**
**135,395**
**855,943**
**36,762**
**5,340,768**
**-**
**5,340,768**
_Staff costs_
_£_
_3,809,569_
_101,983_
_122,257_
_864,819_
_36,376_
_4,935,004_
_-_
_4,935,004_|**Other**
**£**
**443,785**
**419,110**
**656,118**
**649,601**
**25,507**
**2,194,121**
**28,090**
**2,222,210**
_Other_
_£_
_355,270_
_295,926_
_705,776_
_433,540_
_29,305_
_1,819,817_
_41,788_
_1,861,605_|**Depreciation**
**£**
**141,915**
**-**
**527,685**
**31,571**
**-**
**701,171**
**-**
**701,171**
_Depreciation_
_£_
_152,624_
_-_
_529,404_
_26,229_
_-_
_708,257_
_-_
_708,257_|**2022**
**£**
**4,749,347**
**568,131**
**1,319,198**
**1,537,115**
**62,269**
**8,236,060**
**28,090**
**8,264,150**
_2021_
_£_
_4,317,463_
_397,909_
_1,357,437_
_1,324,588_
_65,681_
_7,463,078_
_41,788_
_7,504,866_|_2021_
_£_
_4,317,463_
_397,909_
_1,357,437_
_1,324,588_
_65,681_|
|---|---|---|---|---|---|
||||||_7,463,078_|
||||||_41,788_|
||||||_7,504,866_|
||||||_2020_
_£_
_4,192,040_
_379,184_
_1,416,526_
_1,301,020_
_51,228_|
||||||_7,339,998_|
||||||_58,146_|
||||||_7,398,144_|
**7b. NET INCOMING RESOURCES**
|These are stated after charging/(crediting):
Auditors’ remuneration
Depreciation on tangible fixed assets
: owned assets
Profit/(Loss) on disposal of tangible fixed assets|**2022**
**£**
**18,360**
**701,171**
**(146,826)**|_2021_
_£_
16,410
719,790
-|
|---|---|---|
Page 19
## **BEACON EDUCATIONAL TRUST LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **8. TANGIBLE FIXED ASSETS**
|**Cost or valuation**
1 September 2021
Additions
Disposals
Transfers
31 August 2022
**Depreciation**
1 September 2021
Charge for the year
Disposals
31 August 2022
**Net book values**
**31 August 2022**
_31 August 2021_|**Freehold land**
**& buildings**
**£**
22,282,836
134,541
(186,627)
12,756
22,243,506
5,597,859
527,686
(40,864)
6,084,681
**16,158,825**
_16,684,977_|**Assets under**
**the course of**
**construction**
**£**
25,065
-
(12,309)
(12,756)
-
-
-
-
-
**-**
_25,065_|**Furniture &**
**equipment**
**£**
972,576
179,878
(10,442)
-
1,142,012
557,364
86,338
(9,375)
634,328
**507,684**
_415,212_|**Computer**
**equipment**
**£**
819,212
59,818
-
-
879,030
742,209
55,577
-
797,786
**81,244**
_77,003_|**Motor**
**vehicles**
**£**
198,254
-
-
-
198,254
146,087
31,570
-
177,657
**20,597**
_52,167_|**Total**
**£**
**24,297,943**
**374,237**
**-**
**(209,378)**|
|---|---|---|---|---|---|---|
|||||||**24,462,802**|
|||||||**7,043,519**
**701,171**
**(50,239)**|
|||||||**7,694,452**|
|||||||**16,768,350**|
|||||||_17,254,424_|
Page 20
## **BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **9. DEBTORS**
|Fees and disbursements
Other debtors
Prepayments|**2022**
**£**
**1,658,280**
**7,248**
**182,790**
**1,848,318**|_2021_
_£_
_1,064,466_
_11,367_
_104,134_|
|---|---|---|
|||_1,179,967_|
2022 fees and disbursements include the Autumn 2022 fees that were invoiced prior to the year end.
## **10. CREDITORS:** Amounts falling due within one year
|Bank loans
Other loans
Trade creditors
Deposits
Other taxes and social security
Other creditors
Autumn fees in advance
Fee prepayment schedule
Accruals and deferred income|**2022**
**£**
**189,941**
**24,000**
**167,439**
**605,131**
**110,995**
**11,490**
**2,888,719**
**206,542**
**88,244**
**4,292,501**|_2021_
_£_
_478,655_
_24,000_
_167,474_
_562,567_
_95,619_
_83,338_
_2,835,023_
_174,286_
_298,106_|
|---|---|---|
|||_4,719,068_|
## **11a. CREDITORS:** Amounts falling due after one year
|Bank loans
Other loans
Fee prepayment schedule|**2022**
**£**
**1,086,894**
**168,000**
**128,804**
**1,383,698**|_2021_
_£_
_1,184,666_
_200,000_
_187,618_|
|---|---|---|
|||_1,572,284_|
Page 21
**BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **11b. LOAN MATURITY**
## **Bank loans are repayable as follows:**
|In less than one year:
In more than one year but less than two years:
In more than two years but less than five years:
After more than five years:|**2022**
**£**
**189,941**
**122,900**
**368,700**
**595,294**
**1,276,835**|_2021_
_£_
_478,655_
_152,309_
_456,927_
_575,431_|
|---|---|---|
|||_1,663,322_|
The bank loans are secured by a specific charge on the company’s freehold properties.
The first bank loan has an outstanding balance at the year- end of £1,209,794 and is repayable by equal quarterly amounts over 25 years. Interest is payable at 1.75% above base rate.
The second bank loan has an outstanding balance at the year- end of £67,041 and is repayable by equal termly amounts over 20 years. Interest is payable at 2.22% above base rate.
|**Other loans are repayable as follows:**
In less than one year:
In more than one year but less than two years:
In more than two years but less than five years:
After more than five years:|**2022**
**£**
**24,000**
**24,000**
**72,000**
**72,000**
**192,000**|_2021_
_£_
_24,000_
_24,000_
_72,000_
_104,000_|
|---|---|---|
|||_224,000_|
The loan is to finance pool repairs. It is not secured and is repayable over ten years.
## **12. FEE PREPAYMENT SCHEDULE**
Lump sums may be paid to the Trust as advance payment of future fees. Assuming students will remain in the School, advance fees received will be applied as follows:
|Within 1 year
Within 2 to 5 years
The balance represents the accrued liability.
The movements during the year were:
_Balance at 1 September 2021_
Amounts received
Amounts utilised in the payment of fees
**Balance at 31 August 2022**|**2022**
**£**
**206,542**
**128,804**
**335,346**|_2021_
_£_
_174,286_
_187,618_|
|---|---|---|
|||_361,904_|
|||**£**
_361,904_
240,232
(266,790|
|||**£**
**335,346**|
Page 22
## **BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **13. UNRESTRICTED FUNDS**
|**Unrestricted funds**
**Total**
**ESTRICTED FUNDS**
Restricted funds
**Total**|_At 1_
_September_
_2021_
_£_
_16,194,420_
_16,194,420_
_At 1_
_September_
_2021_
_£_
_30,235_
_30,235_|Incoming
Resources
£
8,928,080
8,928,080
Incoming
Resources
£
78,764
78,764|Resources
expended
£
(8,264,150)
(8,264,150)
Resources
expended
£
-
-|Transfer of
funds
19,950
19,950
Transfer of
funds
£
(19,950)
(19,950)|**At**
**31 August**
**2022**
**£**
**16,878,300**|
|---|---|---|---|---|---|
||||||**16,878,300**|
||||||**At**
**31 August**
**2022**
**£**
**89,049**
**89,049**|
## **14. RESTRICTED FUNDS**
Restricted funds relate to donations from the Beacon Parent Society for the purchase of various assets, to donations from leaver parents to provide bursaries and to donations to the Headmaster’s Fund. The transfer to unrestricted funds represents bursaries that were initially funded by unrestricted funds, but were later deemed to be covered by funds donated and restricted for this use.
## **15. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**2022**
Tangible fixed assets
Net current assets
Long term liabilities
Total
_2021_
_Tangible fixed assets_
_Net current assets_
_Long term liabilities_
_Total_|**Unrestricted**
**funds**
**£**
16,768,350
1,473,698
(1,383,698)
£16,858,350
_Unrestricted_
_funds_
_£_
_17,254,424_
_512,280_
_(1,572,284)_
_£16,194,420_|**Restricted**
**funds**
**£**
-
108,999
-
£
108,999
_Restricted_
_funds_
_£_
_-_
_30,235_
_-_
_£_
_30,235_|**Total funds**
**£**
**16,768,350**
**1,582,697**
**(1,383,698)**
**£ 16,697,349**
_Total funds_
_£_
_17,254,424_
_542,515_
_(1,572,284)_
_£ 16,224,655_|**Total funds**
**£**
**16,768,350**
**1,582,697**
**(1,383,698)**
**£ 16,697,349**
_Total funds_
_£_
_17,254,424_
_542,515_
_(1,572,284)_
_£ 16,224,655_|
|---|---|---|---|---|
||||**£**||
||||||
|||||_£ 16,224,655_|
Page 23
**BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **16. COMMITMENTS**
At the year end, the School had no contracted capital commitments ( _2021: £Nil)._
## **17. OPERATING LEASES**
## **17a. Operating Lease Commitments**
At 31 August 2022 the School had annual commitments under non-cancellable operating leases as follows:
|**EXPIRY DATE:**
Less than 1 year
Between one and five years|**2022**
**£**
**21,102**
**18,161**
**£**
**39,263**|_2021_
_£_
_12,092_
_6,888_|
|---|---|---|
|||_£_
_18,980_|
## **17b. Operating Leases as Lessor**
At 31 August 2022 the School was due to receive the following amounts under non cancellable operating leases:
|Due in 1 year
Due in 2-5 years
Due in more than 5 years|**2022**
**£**
**45,000**
**180,000**
**135,000**
**£**
**360,000**|_2021_
_£_
_39,600_
_180,000_
_180,000_|
|---|---|---|
|||_£_
_399,600_|
During the year payments made for operating leases totalled £20,282 _(2021: £9,065)_
## **18. PENSION SCHEME**
The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £630,899 ( _2021: £598,133)_ and at the year-end £64,630 ( _2021: £70,431_ ) was accrued in respect of contributions to this scheme.
The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.
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## **BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **18. PENSION SCHEME (continued)**
The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.
On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.
The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched in June 2021 on proposed changes to the cost control mechanism following a review by the Government Actuary. Following the public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.
The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.
Until the 2020 valuation is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial statements.
## _**Other Pensions**_
In addition to the above, the Company contributes on a new consolidated defined contribution basis to personal pension plans which was launched in Spring 2021. Contributions totalling £47,028 _(2021: £46,537)_ were payable to these funds for the year.
There were unpaid contributions of £12,774 _(2021: £7,632)_ at the year end.
## **19. RELATED PARTY TRANSACTIONS**
During the year there were amounts paid to the Beacon Educational Trust Limited from the Beacon Bursary Fund in respect of School fees of £16,397 _(2021: £23,884)._ The year-end balance owed by Beacon Bursary Fund to the Beacon Educational Trust is £4,983 ( _2021: £3,351)_ .
There was also amounts paid to The Independent Association of Prep Schools (IAPS), for which a Governor is the Chairman, in respect of membership fees £9,186 (2021: £7,881).
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## **BEACON EDUCATIONAL TRUST LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
**FOR THE YEAR ENDED 31 AUGUST 2022**
## **20. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS**
|Increase/(decrease) in cash in the year
Loan repayments
New loan drawn
Advanced fees utilised
Receipts from advanced fees
Change in net funds/(debt)
Net funds/(debt) at 1 September
**Net funds/(debt) at 31 August**|**2022**
**£**
**(57,054)**
**418,486**
**-**
**266,790**
**(240,232)**
**387,990**
**1,827,039**
**£**
**2,215,029**|_2021_
_£_
_(124,186)_
_258,105_
_-_
_199,899_
_(171,074)_|
|---|---|---|
|||_162,744_
_1,664,295_|
|||_£_
_1,827,039_|
## **21. ANALYSIS OF CHANGE IN NET FUNDS / (DEBT)**
|Cash at bank and in hand
Bank loans
Other loans
Advanced fees scheme|_Net funds as_
_at 1_
_September_
_2021_
_£_
_4,076,265_
_(1,663,321))_
_(224,000)_
_(361,904)_
_£ 1,827,040_|Cash
Change
£
(57,054)
386,486
32,000
26,558
£
387,990|**Net funds as**
**at 31**
**August**
**2022**
**£**
**4,019,211**
**(1,276,835)**
**(192,000)**
**(335,346)**
**£ 2,215,030**|
|---|---|---|---|
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**BEACON EDUCATIONAL TRUST LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022**
## **22. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES**
|_Notes_
_INCOME AND ENDOWMENTS FROM:_
_Charitable activities:_
_School fees receivable_
_Ancillary trading income_
_CJRS grant income_
_Other trading activities:_
_Interest received_
_Rent and facility hire_
_Donations_
_Total_
_EXPENDITURE ON:_
_Charitable activities:_
_School operating costs_
_Expenditure on raising funds:_
_Financing costs_
_Total_
_Net income and expenditure_
_Transfer between funds_
_NET MOVEMENT IN FUNDS_
_Funds brought forward 1 September 2020_
_Funds carried forward at 31 August 2021_|_Unrestricted_
_Funds_
_£_
_7,783,449_
_177,107_
_-_
_2,116_
_56,572_
_-_
_8,019,244_
_7,463,078_
_41,788_
_7,504,866_
_514,378_
_-_
_514,378_
_15,680,042_
_16,194,420_|_Restricted_
_Funds_
_£_
_-_
_-_
_-_
_-_
_-_
_9,090_
_9,090_
_-_
_-_
_-_
_9,090_
_-_
_9,090_
_21,145_
_30,235_||_Total_
_2021_
_£_
_7,783,449_
_177,107_
_-_
_2,116_
_56,572_
_9,090_|
|---|---|---|---|---|
|||||_8,028,334_|
|||||_7,463,078_
_41,788_|
|||||_7,504,866_|
|||||_523,468_
_-_|
|||||_523,468_
_15,701,187_|
|||||_16,215,565_|
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