## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (SOFA: Incorporating an Income and Expenditure account)**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
|**Total**
**Unrestricted**
**Unrestricted**
**Funds**
**Notes**
**Funds**
**2023**
**£**
**£**
**INCOME FROM:**
**Charitable Activities**
School fees receivable
**2**
4,446,264
4,446,264
Registration fees and other
income
**3**
303,091
303,091
**Donations and Grants**
-
3,306
**Other trading activities**
Rental income
-
5,966
**Investments**
**4**
97,844
97,844
**Total income**
4,847,198
4,856,471
**EXPENDITURE ON:**
**Charitable Activities**
School's operations
5,154,132
5,154,132
**Total expenditure**
**5**
5,154,132
5,154,132
(297,661)
Fund balances at 1 September 2022
5,190,749
5,190,749
**FUND BALANCES at 31 August 2023**
**5,190,749**
**4,893,088**
**NET INCOME/(EXPENDITURE) FOR THE**
**YEAR AND MOVEMENT IN FUNDS**|**Total**
**Unrestricted**
**Funds**
**2022**
**£**
4,190,678
199,722
19,515
6,395
15,153|
|---|---|
||4,431,463|
||4,318,867|
||4,318,867|
||112,596
5,078,153|
||**5,190,749**|
There were no acquisitions or discontinued activities during the year. There were no other recognised gains or losses during the year. There was no restricted income or expenditure in 2022 or 2023. The accompanying notes form part of these financial statements.
The expenditure includes an exceptional sum of £549,929 representing depreciation on premises as a result of a capital development project (Project R.Ed) no longer preceding. The £549,929 covers actual expenditure on Project R.Ed over previous accounting periods which had been capitalised but has now been written off.
26
## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **BALANCE SHEET**
## **Company Registration No. 00621311**
## **AT 31 AUGUST 2023**
|**Notes**
**FIXED ASSETS**
Tangible assets
**8**
**CURRENT ASSETS**
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**
**11**
**NET ASSETS**
The funds of the charity are represented by:
**Unrestricted funds:**
**12**
General funds
Designated funds|**£**
**£**
**£**
**£**
2,817,008
3,259,527
70,352
182,406
3,424,440
3,325,701
3,494,792
3,508,107
(1,166,812)
(1,365,185)
2,327,980
2,142,922
5,144,988
5,402,449
(251,900)
(211,700)
4,893,088
5,190,749
4,475,088
3,772,749
418,000
1,418,000
4,893,088
5,190,749
**2023**
**2022**|**£**
**£**
**£**
**£**
2,817,008
3,259,527
70,352
182,406
3,424,440
3,325,701
3,494,792
3,508,107
(1,166,812)
(1,365,185)
2,327,980
2,142,922
5,144,988
5,402,449
(251,900)
(211,700)
4,893,088
5,190,749
4,475,088
3,772,749
418,000
1,418,000
4,893,088
5,190,749
**2023**
**2022**|
|---|---|---|
||||
|||5,402,449
(211,700)|
|||5,190,749|
|||3,772,749
1,418,000|
|||5,190,749|
The accounts were issued and approved by the board of Trustees on 21 November 2023 and signed on their behalf by:
**Mrs G Haddon Mr P Kempe** Director Director
The accompanying notes form part of these financial statements
27
## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **CASH FLOW STATEMENT**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
|||||**2023**|**2022**|
|---|---|---|---|---|---|
|||**Notes**|**£**|**£**
**£**|**£**|
||**Net cash inflow from operations**|||||
||Net cash provided by operating activities|(i)||311,618|525,106|
||**Cash flows from investing activities:**|||||
||Payments for tangible fixed assets||(310,723)
(439,069)|||
||Investment income||97,844
15,153|||
||**Net cash used in investing activities**|||(212,879)|(423,916)|
||Change in cash and cash equivalents in the reporting period|||98,739|101,190|
||Cash and cash equivalents at the beginning of the period|||3,325,701|3,224,511|
||Cash and cash equivalents at the end of the
reporting period|(ii)||3,424,440|3,325,701|
|**(i)**|**RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES**|||||
|||||**2023**|**2022**|
|||||**£**|**£**|
||Net movement in funds|||(297,661)|112,596|
||Depreciation charges|||753,242|218,116|
||Increase in debtors|||112,054|(60,242)|
||Decrease in creditors|||(158,173)|269,789|
||Investment income|||(97,844)|(15,153)|
||**Net cash inflow from operating activities**|||311,618|525,106|
|**(ii) **|**Analysis of cash and cash equivalents**|||||
|||||**2023**|**2022**|
|||||**£**|**£**|
||Cash|||3,424,440|3,325,701|
||**Total cash and cash equivalents**|||3,424,440|3,325,701|
28
## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **1. ACCOUNTING POLICIES**
The principal accounting policies, all of which have been applied consistently throughout the year and in the preceding year are:
## a) **Basis of accounting**
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 (FRS102) (Charities SORP Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The School meets the definition of a public benefit entity under Financial Reporting Standard (FRS) 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## b) **Critical accounting judgements and key sources of estimation uncertainty**
In the application of the accounting policies, Trustees are required to make judgement, estimates, and assumptions about the carrying value 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 ongoing 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 affected current and future periods.
In the view of the Trustees, no assumptions concerning future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment of their carrying amounts in the next financial year.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements, except for the fact that it is no longer considered appropriate to accrue for teachers’ holiday pay or to recognise as a prepayment any time teachers have spent in preparing for the following academic year.
## c) **Going concern**
The accounts have been prepared on a going concern basis. The Trustees review the financial information for the School and consider whether the School is a going concern for a period of at least 12 months from the date of approval of the accounts. The Trustees have assessed the major risks to which the School is exposed, in particular those related to the operations and finances of the School. However, through appropriate consideration of risks as part of its normal risk management processes and mitigating actions both already taken and available to be taken, the Trustees are satisfied that systems are in place to manage the exposure to the major risks and consider it appropriate for the going concern basis to be adopted for these accounts.
## d) **School fees receivable and similar income**
Fees receivable and other fees are accounted for in the year in which the service is provided. Fees receivable represent fees less assisted places and allowances and other income derived from the School’s continuing activities.
29
## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **1. ACCOUNTING POLICIES (continued)**
## e) **Investment income**
Investment income from bank balances and fixed interest securities is accounted for on an accruals basis.
## f) **Voluntary sources, grants and donations**
Voluntary income is accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.
## g) **Expenditure**
Expenditure is accrued as soon as there is a contractual obligation or a liability is considered probable, discounted to present value for longer term liabilities. Expenditure is allocated to expense headings either on a direct cost basis or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates. Bad debts are provided for in accordance with the School's bad debt policy.
## h) **Pension costs**
The School participates in the Teachers’’ Pension Scheme (“TPS”) but the scheme was (with effect from 1 September 2022) closed to new entrants following partial withdrawal. The School also contributes to separate defined contributions schemes for members of staff.
The School contributes to a defined contributions scheme administered by The Pensions Trust (“TPT”) which is only open to non teaching staff. Two members of staff are in a separate defined benefits scheme within the TPT scheme. The School now also contributes to APTIS (an Aviva Pension trust for independent schools). This defined contributions scheme is open to all members of staff.
TPS is an unfunded state pension scheme. The contributions made by the School and teachers do not go into a segregated pension fund. Instead they fund the pensions of teachers across the country who have already retired. Unlike private pension schemes there are no funds ringfenced for the School or its employees. As the School’s share of TPS cannot be identified the pension costs are accounted for as if it were a defined contribution scheme.
## i) **Tangible fixed assets and depreciation**
Depreciation is provided at rates calculated to write off the cost, less estimated residual value of each asset based on current market prices, over its expected useful life, as follows:
Freehold buildings - 2% straight line basis Improvement to properties - 10% straight line basis Computer equipment - 25% straight line basis Fixtures and fittings - 10% straight line basis Motor vehicle - 25% reducing balance basis
## j) **Financial Instruments**
The School only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
30
## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **1. ACCOUNTING POLICIES (continued)**
## k) **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## l) **Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments.
## m) **Leasing commitments**
Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives or the period of the lease whichever is the shorter. The interest element of the obligations is charged to the SOFA over the period of the lease. Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the SOFA on a straight line basis over the lease term. Lease incentives are accounted for over the lease term on a straight-line basis.
## n) **Creditors**
Creditors and provisions are recognised where the School has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## o) **Fund Accounts**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and have not been designated for other purposes.
## Designated funds are set aside by the Trustees for their specific purposes.
## p) **Taxation**
The Company is a registered charity and as such is exempt from income tax and corporation tax under the provisions of section 478 of the Corporation Tax Act 2010. There is a similar exemption for VAT, which is included in expenditure or in the cost of assets as appropriate.
31
**WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **Note 2 FEES RECEIVABLE**
|Fees receivable consists of
Gross fees
Less: Assisted places and staff concessions|**Total**
**2023**
**£**
4,557,643
(111,379)
**4,446,264**|**Total**
**2022**
**£**
4,310,314
(119,636)|
|---|---|---|
|||4,190,678|
## **Note 3 REGISTRATION FEE AND OTHER INCOME**
|Registration and other fees including initial deposits forfeited
Sundry income
Clubs income|**Total**
**Total**
**2023**
**2022**
**£**
**£**
132,784
81,776
24,912
8,013
145,395
109,933
**303,091**
199,722|
|---|---|
## **Note 4 INVESTMENTS - BANK AND OTHER INTEREST**
|Bank interest
Interest on late fees|**Total**
**2023**
**£**
97,844
-
**97,844**|**Total**
**2022**
**£**
14,913
240|
|---|---|---|
|||15,153|
32
**WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **Note 5 ANALYSIS OF EXPENDITURE**
## **a) Total expenditure**
|**Charitable expenditure**
Teaching
Welfare
Premises
Project R.Ed
**Total expenditure**
School administration and
governance|Staff costs
(note 6)
£
2,369,463
50,170
101,333
-
455,295
**2,976,261**|Depreciation
(note 8)
£
-
-
203,313
549,929
-
**753,242**|Other
Costs
£
853,304
370,971
34,075
-
166,279|**Total**
**2023**
**£**
3,222,767
421,141
338,721
549,929
621,574|
|---|---|---|---|---|
||||**1,424,629**|**5,154,132**|
Support costs, included within Other costs, are allocated on the basis of staff headcount. The depreciation charge for the year of £753,242 above includes £549,929 written off in relation to Project R.Ed.
|**b) Governance included in support costs**
**2023**
**£**
13,900
1,725
**15,625**
**PRIOR YEAR**
Other
Staff costs
Depreciation
Costs
£
£
£
**Charitable expenditure**
Teaching
2,250,599
-
740,217
Welfare
44,751
-
321,807
Premises
96,857
218,116
29,558
472,718
-
144,244
**Total expenditure**
**2,864,925**
**218,116**
**1,235,826**
Remuneration paid to auditor for audit services (excluding VAT)
Remuneration paid to auditor for non-audit services (excluding
VAT)
Trustees were reimbursed expenses of £19 in the year (2022: £98).
School administration and
governance|**2023**
**£**
13,900
1,725|2022
£
13,625
2,725|
|---|---|---|
||**15,625**|16,350|
|||**Total**
**2022**
**£**
2,990,816
366,558
344,531
616,962|
||**1,235,826**|**4,318,867**|
33
## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **Note 6 STAFF COSTS**
|**2023**
**£**
The aggregate payroll costs for the year were:
Wages and salaries
2,354,019
Social security costs
246,986
Pension costs
375,256
**2,976,261**
**2023**
**£**
228,170
The number of higher paid employees whose annual emoluments were £60,000
or more was:
**2023**
**No**
£70,001 - £80,000
1
£90,001 - £110,000
1
The average number of employees during
**2023**
**No**
Teaching
53
Office and non-teaching staff
11
64
Total amount of employee benefits (including employer pension
contributions) of key management personnel:|2022
£
2,247,969
243,198
373,758|
|---|---|
||2,864,925|
||2022
£
221,603|
||2022
No
1
1
2022
No
51
12|
||63|
## **Note 7 TRUSTEES**
None of the Trustees (or any persons connected with them) received any remuneration during the current or preceding year.
34
## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **Note 8 TANGIBLE FIXED ASSETS**
|**TANGIBLE FIXED ASSETS**||
|---|---|
|**Cost**
At 1 September 2022
Additions
At 31 August 2023
**Depreciation**
At 1 September 2022
Charge for the year
At 31 August 2023
**Net Book Value**
At 31 August 2023
At 31 August 2022|**Freehold**
**Fixture**
**land and**
**Property**
**and**
**Computer**
**Total**
**buildings**
**improvements**
**fittings**
**equipment**
**£**
**£**
**£**
**£**
**£**
4,259,108
759,860
777,287
580,484
6,376,739
7,348
252,914
34,563
15,898
310,723|
||4,266,456
1,012,774
811,850
596,382
6,687,462|
||1,595,897
420,107
573,986
527,222
3,117,212
605,510
85,137
29,741
32,854
753,242|
||2,201,407
505,244
603,727
560,076
3,870,454|
||2,065,049
507,530
208,123
36,306
2,817,008|
||2,663,211
339,753
203,301
53,262
3,259,527|
35
## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **Note 9 DEBTORS**
|Fees receivable
Prepayments and accrued income
Other Debtors
**Note 10**
**CREDITORS: AMOUNTS FALLING DUE**
**WITHIN ONE YEAR**
Fees in advance and Deposits
Trade creditors
Accruals
Other tax and social security
Other creditors
**Note 11**
**CREDITORS: AMOUNTS FALLING DUE**
**AFTER MORE THAN ONE YEAR**
Deposits|**2023**
**£**
1,326
29,779
39,247
**70,352**
**2023**
**£**
1,069,914
22,194
25,933
-
48,771
**1,166,812**
**2023**
**£**
251,900
**251,900**|2022
£
125,147
54,623
2,636|
|---|---|---|
|||182,406|
|||2022
£
1,132,243
86,810
16,350
61,477
68,305|
|||1,365,185|
|||2022
£
211,700|
|||211,700|
36
## **WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **Note 12 TOTAL UNRESTRICTED FUNDS**
|**Balance**
**1 September**
**2022**
**£**
**General fund**
Unrestricted - General fund
3,772,749
**Designated funds**
Norah K Read Assisted Places
Fund
18,000
Means Tested Assisted Places
Fund
150,000
Development Fund
250,000
Project R.Ed Fund
1,000,000
1,418,000
**5,190,749**
**TOTAL UNRESTRICTED FUNDS**
**(PRIOR YEAR)**
**Balance**
**1 September**
**2021**
**£**
**General fund**
Unrestricted - General fund
3,700,153
**Designated funds**
Norah K Read Assisted Places
Fund
18,000
Means Tested Assisted Places
Fund
150,000
Development Fund
210,000
Project R.Ed Fund
1,000,000
1,378,000
5,078,153|**Balance**
**1 September**
**2022**
**£**
3,772,749
18,000
150,000
250,000
1,000,000
1,418,000|**Income**
**£**
4,856,471
-
-
-
-
-|**Expenditure**
**£**
(4,281,423)
-
(66,868)
(255,912)
(549,929)
(872,709)|**Transfers**
**Balance**
**between**
**31 August**
**funds**
**2023**
**£**
**£**
127,291
**4,475,088**
-
**18,000**
66,868
**150,000**
255,912
**250,000**
(450,071)
**-**
(127,291)
**418,000**|
|---|---|---|---|---|
||**5,190,749**|**4,856,471**|**(5,154,132)**|**-**
**4,893,088**|
|||**Income**
**£**
4,431,463
-
-
-
-
-|**Expenditure**
**£**
(3,818,833)
(9,685)
(53,081)
(170,856)
(266,412)
(500,034)|**Transfers**
**Balance**
**between**
**31 August**
**funds**
**2022**
**£**
**£**
(540,034)
3,772,749
9,685
18,000
53,081
150,000
210,856
250,000
266,412
1,000,000
540,034
1,418,000|
||5,078,153|4,431,463|(4,318,867)|-
5,190,749|
The Norah Read Assisted Places Fund (established in memory of the School's founder) exists to provide means tested assistance to parents of pupils already attending the School who experience a change in their financial circumstances.
The Means Tested Assisted Places Fund was established to provide means tested assistance with fees for pupils attending the School from the September following their 7th birthday.
The Development Fund has been established in order to allocate financial resources to medium term property improvements including fixtures and fittings.
Project R.Ed is no longer being considered by Governors and therefore all costs associated with this project have been written off during 2022/23.
37
**WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **Note 13 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**Tangible**
**Net current**
**Long-term**
**fixed assets**
**assets**
**creditors**
**£**
**£**
**£**
General funds
2,817,008
1,909,980
(251,900)
Designated funds
-
418,000
-
Total funds
**2,817,008**
**2,327,980**
**(251,900)**
**ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR**
**Tangible**
**Net current**
**Long-term**
**fixed assets**
**assets**
**creditors**
**£**
**£**
**£**
General funds
3,259,527
724,922
(211,700)
Designated funds
-
1,418,000
-
Total funds
3,259,527
2,142,922
(211,700)|**Total**
**2023**
**£**
**4,475,088**
**418,000**|
|---|---|
||**4,893,088**|
||**Total**
**2022**
**£**
3,772,749
1,418,000|
||5,190,749|
## **Note 14 CAPITAL COMMITMENTS**
The Head, together with the Trustees, continues to implement the Development Plan for the School. The School had no capital commitments at 31 August 2023 (2022: £83k in respect of alterations to the School's buildings).
## **Note 15 RELATED PARTY TRANSACTIONS**
During the year Trustees incurred travel expenses of £19 (2022: £98). During the year total donations received from the Trustees amounted to £Nil (2022: £232). There were no other related party transactions in the current or preceding year.
38
**WOODFORD GREEN PREPARATORY SCHOOL LIMITED**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **Note 16 PENSION COMMITMENTS**
## **Teachers' Pension Scheme**
The School participates in the Teachers’ Pension Scheme (the “TPS”) for its teaching staff. The potential financial impact of further increases in employer contributions to the Teachers’ Pension Scheme has been mitigated by the implementation of “phased withdrawal” whereby the School’s participation in the Scheme was closed to new entrants with effect from 1st September 2022. The pension charge for the year includes contributions payable to the TPS of £373,054 (2022: £309,186) and at the year-end £Nil (2022 - £Nil) 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%.
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 on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a 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.
In view of the above rulings and decisions the assumptions used in the 31 March 2016 actuarial valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the actuarial valuation.
Until the cost cap mechanism review 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.
## **APTIS**
The School now also contributes to APTIS (an Aviva Pension trust for independent schools). This defined contributions scheme is open to all members of staff.
39