COMPANY NUMBER: 535836 REGISTERED CHARITY NUMBER: 311062 ST CHRISTOPHER SCHOOL {LETCHWORTH) LIMITED GOVERNORS, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 CONTENTS REFERENCE & ADMINISTRATIVE INFORMATION.......................................................................... PUBLIC BENEFIT AIMS AND INTENDED IMPACT........................................................................... GOVERNANCEAND MANAGEMENT............................................................................................... STRATEGIC REPORT....................................................................................................................... REVIEWOF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR... .... ................................. FINANCIAL REVIEW AND RESULTS FOR THE YEAR..........................................,................. STATEMENT OF DIRECTORS. RESPONSIBILITIES..................................................................... INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021...............14 BALANCE SHEET ASAT31 AUGUST2021 ...................................................................................15 STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2021.................................16 COMPANY INFORMATION...................... . .17 ACCOUNTING POLICIES.............................................. FEES RECEIVABLE.................. ... .17 .19 ANALYSIS OF TOTAL RESOURCES EXPENDED............................................ TANGIBLE FIXED ASSETS... ..20 ..22 INVESTMENTS.................................................. ..23 DE8TORS.....................................................................................................................,.......,..23 CREDITORS.. DUEWITHIN ONE YEAR..................................................................................23 CREDITORS.. DUE AFTER MORE THAN ONE YEAR.. ..24 BANKLOAN.........................................................................................................................24 SHARE CAPITAL.................................................. UNRESTRICTED FUNDS.....................................................................................................25 OPERATING LEASE COMMITMENTS.............................................................................25 TEACHERS. PENSION DEFINED BENEFITS SCHEME.............................................. ..25 ST CHRISTOPHER SCHOOL GUILDS LIMITED.................................................................26 CONTRACTS AND COMMITMENTS.............. ....................................................................27 CASH FLOW.........................................................................................................................27 10. 11. ..24 12. 13. 14. 15. 16. 17. Page I
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 REFERENCE & ADIAINISTRATIVE INFORMATION St Christopher School (Lelchworth) Limited is a charitable company formed in 1954, charity registration number 311062, company registration number 535836. The registered ofFsce and princtpal address of the Company is al Barrington Road, Letchworth Garden City, Hertfordshire SG6 3JZ. DIRECTORS The Directors of the Company, who are also the charity trustees, and the Govemors of the School and who served during the year were.. Bertie Leigh Chair IResigned 0910712021) Sarah lthlcoyne" Vice Chair I Chair from 0910712021 Sophie Nolan Resigned 3110712021 Peter Mcmeekin John Simmonds Rabinder Singh Resigned 0510312021 Ben Walker Resigned 1710612021 Dasha Nicholls Rebecca Glover Appointed 0610312021 "Parent of a pupil at the School. The Governors can be contacted through the Chairman who can be written to at the School address. Governors can also be Contacted through the Bursar, who is also Clerk to the Governors. by email at bursar@stchris.co.uk. KEY EXECUTIVES AND PROFESSIONAL ADVISERS Head Emm&Kate Henry Martin Scoble Appointed 1 September 2020 Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG Bursar. Clerk to the Governors and Company Se¢retsry Auditors Principal Bankers Barclays Bank plc Station Place Lelchworth Garden Cty Hertfordshire SG6 3RZ Website www.stchris.co.uk Page 2
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The Board of Directors present their Annual Report for the year ended 31 August 2021 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 slatem8nts for the year. CONSTITUTION AND OBJECTS Sl Christopher School (Lelchworthl Limited is a charitable ¢ornpany formed in 19S4, charity Tegislralion number 311062, company registration number 535836. The Company is governed by its Memorandum and Article$ of Association, last amended on 9 December 1995. OBJECTS, AIMS, OBJECTIVES AND PRINCIPAL ACTIVITIES The Obje¢t of the Company. in accordance with ils Memorandum of Asscriation, is the education of girls, boys or adults of either sex as an interdenominational schogl with religious and ethical teaching based on the broadest principles of national and international fellowship and goodwill. PUBLIC BENEFIT AIMS AND INTENDED IMPACT The School's public benefit aim is to ensure that children leave having achieved their full potential at school and equipped with the skills and self-confidence for their future life and work. The School seeks lo be a continuously developing community of children and adults working together lo enable all lo achieve their best academically and beyond the classroom in an open atmosphere, where all are valued as individuals and encouraged lo develop in curiosity, competence, judgernenl, kindness and courage. 11 aims for pupils to become self-disciplined and self-motivated individuals, who are independent learners and creative thinkers able to make informed choices in a modern wodd with a commitment lo servi. Thus the School seeks lo prepare pupils for happy and fvlfilled lives in the service of others. St Christopher is committed to providing 8 first class education in a caring environment, infomiality, healthy living and seff-government. We aim lo ensure that all achieve the success thèy deserve without relying on contrived competition. We also believe that what happens to them at school is an end in itself as well as being a preparation for later life.. that the purpose of a child is to be a successful and luifilled chikl as well as to grow into a successful and fulfilled adult. Pupils at Sl Christopher School Letchworth are charged fees. The cost of these fees may restriel the number of people able lo benefit from this part of the charity's activities. In order to prevent this, the School makes available bursaries and fee remissions, through its financial planning and in association with an endowment dedicated to the financial support of children attending the School. Bursaries are rneans tested and are open to application by anyone eligible tojoin the School. In 202012021. the School provided £457K (last year £443kl in means tested bursary funding, the equivalent of 4.8 Yo of gross fees (last year 4.70A). This provided up to 1 OOOA remission of the day fee to 41 pupils (last year 50}. This represents 7.80/0 of the pupil body Ilasl year 9.11¥0}. The School has worked with a number of Local Authorities lo make available its educational practice and etho$ lo a number of children who would particularly benefit from it but would not be able to afford the full fee. The School has been taking part in a joint initiative with the Children, Schools and Families department lo support a nuTnber of looked- after children in boarding and day settings. As part of the S¢hool's commitment to providing benefit in the public interest we support a number of broader educational activities. The School operates extramural courses for members of the local community which are open to all. In aédition, its swimming pool is regularly open lo other organisalions, as are the School's games fields. theatre, dance and music facilities. There are also strong links wth regional arts associations. A thriving community service programme makes up an integral part of pupils, activities. In the furtherance of these aims the Governors. as charity Iruslees, have complied with the duly in s. 17 of the Charities Act 2011 to have due regard lo the Charity Commission's published general guidance. Page 3
ST CHRISTOPHER SCHOOL (LETCHWORTH} LIMITED GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The School is committed to an international approach. There are pupils from a wide mnge of social. cultural and national backgrounds. There is an extensive exchange programme with overseas schools. Pupils continue to take part in an established exchange in France and an exchange programme with a Spanish school. The School maintains close links with a number of schools in India and pupils 2nd staff teach at a local school as part of the Rajasthan expedition. However, due lo the global pandemic, these trips and exchanges have been restrided during this period. In the furtherance of these aims the Governors, as charity trustees, have complied wsth the duty in s. 17 01 the Charities Act 2011 to have due regard lo the Charity Commission's published general and relevant sub-sector guidance concerning the operation of the Public Benefit requirement in that Act. GOVERNANCE AND MANAGEMENT GOVERNING BODY The Directors, who are also required under the Articles to serve as members of the Company. are elected at 8 full Directors, Meeting on the basis of the Board's specifications concerning eligibility. personal competence, specialist skills and local availability. Under the Company's Articles of Association. the number of Governors may not be less than three or greater than twelve, al least two of whom must be aelively engaged in educational work. One-third of ils members are required to retire by rotation al each AGM. The first appointed, or longest serving since last reappointment, is the first to retire. Members retiring by rotation can be re-elected. The Governors Consist of individuals with a range of backgrounds., including former parents and a parent nominated by the Parents, Circle as well as serving Heads of other independent schools and a local resident Delails of the Governors. together with the School's officers and principal advisers are given on page 2. TRUSTEE RECRUITMENT AND TRAINING The Board is a $elf-appointing body. Board members a appointed for terms of four or five years and can be re-elected although the practice in the case of kne parent governor is not lo do 50. New DirecloTS are inducted into the workings of the School. and also of the Company as a registered charity, including Board Policy and Procedures, by the Chairman and Bursar. Guidance information and courses are made available lo all govemors at the Company's expense, through the Independent sch1$ Coun¢il and the Association of Goveming Bodies of Independent Schools. ORGANISATIONAL MANAGEMENT The Directors meet as a Board at least four limes a year to determine the general policy of the Company and review its overall management and control, for which they are legally responsible. This includes the review of the budgets and annual accounts and reports. The Head and the Bursar attend all meetings of the governors. The day-to-day running of the School is delegaleé to the Head and the Bursar, supported by other members of the Senior Leadership Team and together this group are the key management personnel. The Senior Leadership Team consists of the Head, Bursar, Deputy Head, Head of Junior School, Acadernic Director, Director of Aclivilies, Director of Pastoral Care and the Marketing and Communications Manager. Rernuneralion is Set by the governors, with the objective of providing appropriate incentives to encourage enhanced performance and of rewarding fairly and responsibly individual contributions to the School's success. Remuneration of all staff at the School is based on pay scales. The appropriateness and relevance of the scales is reviewed annually, including reference to Comparisons wf(h olher independent schools lo ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. We aim to recruit, subject to experience, at the lower to medium point within a band, providing scope for rewarding excellence. Delivery of the School's charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure. Page 4
ST CHRISTOPHER SCHOOL {LETCHWORTH) LIMITED GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 There is a long-established School Coun¢il, which is chaired by an elected senior pupil. Motions passed by the Council have to be ratified by a meeting of the whole Senior School. While policies and rules can be created through the School Council, the Head has an overall veto, although in practice il is rarely exercised. The School is committed to ensuring that self-government continues to be an important part of pupils, experience at the SChC. GROUP STRUCTURE AND RELATIONSHIPS The Company has a wholly owned non-charitable subsidiary, St Christopher School Guilds Limited, with the School receiving any surpluses earned by the company as a covenanted donation. During the year ended 31 August 2021, the St Christopher School Guilds Limited was inath've. Sl Christopher S¢hool is an active member of the Society of Heads and the Boarding Schools Association for the promotion and maintenance of school standards generally. The School also has a thriving network of Old Scholars who ar8 an integral part of the St Chris community. EMPLOYMENT POLICY The School aspires to SUPF)Ort excellence in education through rigorous and continuous evaluation of quality and performance, the application of best practice and a widespread desire lo improve standards. The School is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given lo their training and employment needs. Communication with employees continues through normal management channels in a variety of forms. STRATEGIC REPORT MISSION STATEMENT Sl Christopher School seeks to be a continuously developing community of children and adults working together to enable all to achieve their best. We seek excellen in academics and beyond the classroom, encouraging open atmosphere, where all are valued as individuals and encouraged lo develop in curiosity, competence, judgement, kindness and courage. Our aim is that pupils should become self-disciplined and self-motivated people who are independent learners and creative thinkers. each one able to make informed choices wth a commitment to service, informality, healthy living and self-government. Thus the School seeks to prepare PUFMIS for happy and fulfilled live5 Irs the service of others. OBJECTIVES FOR THE YEAR St Christopher will remain a truly independent school and we are committed to celebrating our differences and the successes that these bring to the young people who are the life blood of this School. We Continue to strive for ways to enable as many different children from as many diffenI backgrounds to take advantage of this unique education. Specific objects'ves for the year include.. 1. Evaluation of Teaching and Learning 2. Review of the Boarding offer wth associated investment requirements 3. Completion of the Teacher Pension Scheme ITPSI consultation 4. Review of the budget setting and monitoring procesges During the year the following achievements were made against these objectives.. Page S
ST CHRISTOPHER SCHOOL {LETCHWORTH) LIMITED GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 1. Evaluation of Teaching and Learning. The Head conducted a whole range of interviews and discussions with individual members of staff prior to formally starting at the school. Included within this feedback was the desire for increased assessment and support surrounding lesson observations and continual improvement. Restructured to focus on academic ambition and review of implemented plans a5 part of a perf0rrnan management cycle. 2. Review of the Boarding offer with associated investment requirements. The Boaiding offer has been consolidated onto the main school site to enable a continued vibrant and cohesive Boarding community. Further evaluation of the future boarding offer continues to enable a costed and coherent delivery. 3. Completion of the Teacher Pension {TPSI consultation. The consultation of the future of the teachers pensions began in January 2020. Due to the global pandemic and national lockdowns the consullalion was paused in March 2020 and resumed in September 2020. A range of indivKlual consultations. whole staff meetings, working party sessions with staff and governors., and engagement with parents all fed into and led to a decision from the governors on 5 December 2020 to exil the TPS bul delay that exil untsl the end of the academic year on 31 August 2021. 4. Review the budget setbng and monitoring processes. Due lo covid-19 and the wider environment the entire in-year budget and capital programme were reassessed and re- profiled lo ensure prlIty of funding and effort to support the approach during lockdowns both academically and welfare. An initial review of the budget setting approach has also been Conducted and resulted in a more consultative approve with all budget holders and heads of departments. Budget monitoring against individual budget lines has also been established through the academic year lo ensure value for money and focus on quality delivery. PRINCIPAL ACTivrrY The Company's principal activity conb'nues to be the provision of education to boys and girls from the ages of 3 10 18 at its Montessori Nursery, Junior School and Senior School. Due to the global pandemic and the national lockdown portions of the school year were either laught rernolely or through blended learning with some in school and others isolating at home. Staff and pupils reacted with real dedication and professionalism throughout this difficult period lo ensure that the children continued to receive a balanced curriculum. The Junior School's children are aged from 3 to 11. nearly all of whom will proceed to the Senior School. Currently there are 97 pupils in the Junior School. The Head of the Junior School is responsible for the leadership and management of the Junior School on a day-to-day basis, under the overall direction of the Head of the School. The Senior School has children from the age of 11 to 18. There are three lorm entry into yeafS 7 and 8 and four into Year 9 up lo GCSE and 20 subjects are available at ASIA Level in the Sixth Form. There are currently 331 children in the Senior School of whom 53 are in the Sixth Form. National exams were cancelled this year due to Covid-19. Instead Centre-Assessed Grades (CAGS) were used to assKJn grades based on a range of evidence. including teacher assessment. This has, again. been a challenging process although lessons had been identified and leamt from 2019120. GRANT4JIAKING The School offers bursaries lo those parents whose income is such that they would not otherwise be able lo pay the full fees. The School encourages applications on behalf of young people who would benefit from a Sl Christopher education, regardless of their background or ability to pay. The School offers fee-assistance of up to 1 Ooya of the fees on a means-tested basis. The awards afe based on an assessment by the Head of how much a child will be able lo benefit from the School and the degree of asslstance required. The Bursary Committee meets once a term to consider bursary applications and Page 6
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 review the progress of each bursary holder. The availability of all awards for fe&as51Stance, together wrth the terms and conditions of awards. are advertised on our website at www.stchris.co.uk. The Robertson Bursary Trust ftjnds a small number of pupils annually lo attend the Sixth Form, to enable them lo complete their A levels at St Christopher. The fvnd was set up by the Robertson family, who have played an important part in the St Christopher community as pupils, active Old Scholars and on the Board of Govemors for many years. All awards are based on parental income and are conditional for their continuance on appropriate levels of performance and good behaviour. The School is also able lo make some awards in conjunction with Robertson Bursary Trust awards up to and including 1 OOih> of the fees. FUNDRAISING Governors have not empk)yed any third paty to fundraise on their behalf, nor has the School conducted any fundraising activity in the year. The School will not accept a donation given by someone who knowingly lacked capacity at the lime of donating and if this information later materialised, would promptly return the donation. During the year, no complainls have been received about our tundraising. REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR OPERATIONAL PERFORMANCE OF THE SCHOOL The pupils have been incredibly resilient throughout the most challenging and potenbally disruptive period in their educational careers. They have remained engaged in their learning across the subject areas and both teaching and non-teaching staff have been innovative and hard working. All terms were impacted due to Covid-19, including the introduction of on-site asymptomatic lateral flow testing. This testing facility was sel up and operated entirely by the non-teaching staff in addition lo their daily ¥oles. demonstrating again the stron9 ethos at st Chris. The School is committed to helping a number of chIldn with individual needs, providing that balance is maintained within the School and at each year group. Our excellent team of lulors and other non- teaching staff continue to complement a highly effective and dedicated leaching stsff. The School is committed to robust procedures for safeguarding children. A number of key staff have 2ttended NCSL training on safer recruitment and Child Protection training confomis to Stalulory requirements for all staff. A governor, Dr Dasha Nicholls. has specific responsibility for safeguarding. The Governors undertake a public benefit audit annually lo monitor the benefits that the School is providing as a charity. In addition to the School's direct educational activities and the access that it provides thTough bursaries, the School allows other organisations, including maintained schools and charities, to use its facilities at a reduced rale or at no charge. The School actively investigates ways of increasing its engagement with local, national and internation81 organisalions to ensure that a wide seth'on of the public benefits from the School's activities. The School's community work. both here and abroad, continues lo be a real strength of the School, further recognising the School's commitment to service. All Lower Vl students are required lo cornplete significant period of community work. All children in the Senior School are required to support a local charity or group. This support may be through fundraising or it may be through offering physical assistance. The opportunities ft)r this year have been largely reduced due to the pandemic. although opportunities continue to be explored. We continue actively to support overseas projects and exchanges. although. again, these have had to be cancelled or postponed due lo the pandemic. Page 7
ST CHRISTOPHER SCHOOL ILETCHWORTHI LIMITED GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 St Christopher believes that education works bestwhen it is a partnership beiween the child, the School and parents. To this end our Parents, Circle is one of the oldest parent teacher organisats.ons in the country and we are proud that it supports the wider life antj community of the School. All parent helpefs are appropriately vetted. FINANCIAL REVIEW AND RESULTS FOR THE YEAR During the year the School made a surplus of £258.6k {2020'. Deficit £180.6kl before investment gains or losses. Fee income al the Junior School and the Senior School rose by 6.50/0 against 2020, this takes account of the fee discount given during the Summer Term during the first national lockdown when the school was teaching all children remotely. The cash flows for the School has naturally been impacted by the fee reduction and the net asset position of £10.1 m million12020'. £9.7 millionl reflects this. The results for the year are set out on page 14 of the accounts. RESERVES At the balance sheet date, the School held unrestricted funds tolalling £10,057k12020'. £9.798k). The School's buildings represent £11,195k and other fixed assets lots1 £10,471 k. The School has limhed fe reserves as all surpluses not reinvested in tsngible fixed assets are designated for future projects or risk mitigation (see below). the Governors have examined the School's cash flows and are satisfied that they are adequate for the purpose of continuing as a going concem for the foreseeable future and therefore will continue as a going concem. For some years the Governors have had an established policy of keeping a cash reserve at a level equating lo beeen one and three months, expenditure1£750k lo £2,250kl. Al the year end, the cash reserve was £2.505k. representing just over three monlh's expenditure. FUTURE PLANS Sl Christopher will remain a truly independent school and we are committed lo celebrating our differen¢es and the successes that these bring lo the young people who are the life blood of this School. We continue to strive for ways to enable as many different children from as many different backgrounds to tske advantage of this unique education. Specific pkns for the next year include.. 1. Development of 2022- 2032 strategic plan. 2. Continue lo evaluate and update the whole chikl element of the St Chris offer. including PSHE and safeguarding. 3. Continue to focus on added value and rigour within leaching and learning. 4. Maintain pandemic flexibility. 5. Review and assess governance arrangements. RISK MANAGEMENT The Board and the Staff Senior Leadership Team ¢ontinue lo keep the School's activities under review, partieularly with regard to any major risks that may arise from lime to lime as well as the systems and procedures established lo manage them. They monitor the effectiveness of the system of internal controls and other viable means, including insurance cover where appropriate. by which those risks already identified can best be managed. A formal review of the School's risk management processes is undertaken on an annual basis. Page 8
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED GOVERNORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The key Controls used by the School include.. Formal agendas for all Board activity Comprehensive strategic planning, budgeting and management accounting Established organisational structure and lines of reporting Formal written policies Clear authorisalion and approval levels., and Vetting procedures as required by law for the protection of the vulnerable The Governors have reviewed the princip81 areas of the School's operations and considered the major risks faced in each area. The principal risks against which the School has to guard are.. a failure to protect our pupils, staff. faciliti'es and systems., a failure to maintain the quality of our staff,. and the experience of the pupils, a failure to manage the impact of adverse economic conditions. Through the risk management processes established for the School the Governors are satisfied that the major risks have been adequately managed. APPRECIATION Governors acknowledged the sustained commitment and hard work of the Head, staff. pupils and parents. We recognise that it is as a result of their work in that the School thrives, develops and meets the needs of its pupils Governors are most grateful for this and for the continued support of parents, fomer pupils and other friends of the School. DIRECTORS The Directors during the year under review and the shares in the company in which they were interested at the beginning and end of the year were.. Ordlnary shares of £1 each At 31 August 2021 AI 1 September 2020 Bertle Lelgh Sarah Kilcoyne Sophle Nolan Peter M¢Meekin John Simmonds Rabindgr Singh Ben Walker Rebecca Glovor Dasha Nicholls Page 9
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED STATEMENT OF DIRECTORS. RESPONSIBILITIES STATEMENT OF DIRECTORS, RESPONSI8ILrriES The Directors are responsible for preparing the Directors, Report and the financial statements in accordance with applicable law and regulations. Company law requires the Directors lo prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Stsndardsl and applicable law. Under company law the Directors must not approve the financial statements unless they are satisfied Ihat they give a true and fair view of the stale of affairs of the charitable company and of the surplus or deficit of the charitable company for that period. In preparing these financial stalemenls. the Directors are required to.. select Suitable ac¢ounting policies and then apply them consistently. make judgments and accounting estimates that are reasonable and prudent., prepare the financial statements on the going GonTrm basis unless it is inappropriate to presume that the charitable company will continue in business. The Directors are responsible for ensuring that adequate accounting records are maintained that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any lime the financial posilH)n of the charitable company and enable them lo ensu that the financial statements comply with the Companies Act 2006. They are also sponsible for safeguarding the assets of the charitable company and ensuring their proper application in a¢¢ordance with charity law, and hence for taking reasonable steps for the prevention and dete¢lion of fraud and other irregularities. So far as each Director is aware, there is no relevant audit information of which the cornpany's auditor is unaware. Each Diredor has taken all the steps that helshe ought to have taken as a Director in order lo make himselflherself aware of any relevant audit information and lo establish that the company's auditor is aware of that information. AUDITOR Hayma¢intyre LLP has indicated its wllingness to be reappointed as statutory auditor. This Annual Report. prepared under the Charitw Act 2011 and the Companies Act 2006, was approved by the Goveming Body of St Christopher School (Letchworthl Limited on 5 December 2020, including in their capacity as company directors approving the Strategic Report contained therein, and is signed as authorised on rts behalf by: Peter Mcmeekin Chairman Date.. 2(lléfL 2ozL Page 10
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST CHRISTOPHER SCHOOL {LETCHWORTH) LIMITED Opinion We have audited the financial statements of St. Christopher School {Letchworthl Limited for the year ended 31 August 2020 which comprise of the Slalement of Financial Aclivilies, the Balance Sheet. the Statement of Cash Flows and the notes lo 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 Fin8ncial Reporting St8nd8rd applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Praclicel. In our opinion, the financial statements. give a true and fair view of the slate of the charitable company's affairs as at ended 31 August 2021 and of the charitable company's nel movement in funds. including the 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 1nlernab.onal Standards on Auditing IUKI IISAS IUKII 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 charity in accordance with the ethical requirements that are relevant to our audit of the financia5 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 concem In auditing the financial statements. we have concluded that the trustees, use ofthe going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have ttrformed. we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubl on the charitsble company's ability to continue as a going concern for a period of at least fv4elve months from when the financial statements are authorised for issue. Our responsibilib'es and the responsibilib'es of the trustees with respect to going concem are described in the relev8nl section$ of this ieport. Other Infomiatlon The trustees are responsible for the other information. The other information comprises the inforrnation included in the Governols Report. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit of the finanaal statements. our responsibility is to read the other informatw)n and. in doing so, consider whether the other information is materially inconsistent with the financial statements or OUT knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslatemenls. we are required to determine whether there is a material misslatemenl in the financial ststements 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 InfoallOn. we are required lo report that fact. We have nothing to report in this regard. Page11
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED Opinlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Govemor's Report {which includes the strategic report and the diredors, report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared is consistent with the financial statements., and the strategic report and the directors, report included within the Governor's Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptson In the light oflhe knowledge and understanding ofthe charitable company and ils environment obtained in the course of the audit, we have not identified rnalerial misslalements in the Governor's Report (which incorporates the strategi¢ report and the directors. report}. We have nothing to report in respect of the following matters in relation to which the Companies Act 20C6 requires us to report to you if. in our opinion.. adequate accounting records have not been kept by the charitsble company., or the charitsble company financial statements are not in agreement with the accounts'ng records and returns., or certain disclosures of trustees, remuneration specified by law a not made.. or we have not received all the information and explanations we require for our audit. Responslbilities of trustees for the financlal staternents As explained more fully in the trustees, responsibilities statement Iset out on page 101, the trustees (who are also the directors of the charitable company for the purposes of company lawl 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 a free from material misstatement, whether due to fraud or error. In preparing the financia5 statements, the trustees are responsible for assessing the charitable company's ability lo continue as a going concern. disclosing, as applicable. matters related to going concern and using the going Concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations. or have no realistic altemative bul to do so. Auditor's responsibilities for the audit of the financial slatements Our objectives are to obtain reasonable assurance about whether the financial statements as a who are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assuran, but is not a guarantee that an audit conducted in accordance with ISAS {UKI wi51 always detect a material misslalement when it exists. Misststements can arise from fraud or error and are considered materh31 if, individually or in the aggregate, Ihey could reasonably be expected lo influence the economic decisions ot users taken on the basis of these finanaal statements. Irregularities, including fraud, are instances of non-compliance with laws and gUlatiOns. We degign procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities, including fraud. The exlenl to which our procedures are capable of deteth'ng irregularities, induding fraud is detailed below.. Based on our understsnding of the charitable company and the environment in which it operates, we identified that the principal risks of non-complian with laws and regulations related lo independent school regulations, safeguarding regulations, health and safety requirements, GDPR, employment law and Charity Commission's general guidance and we considered the extent lo which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, and consider other factors such as payroll taxes and VAT. Page 12
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED We evaluated management's incentives and opportunities for fraudulent manipulation of the financial Statements {including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in rtain accounting estimates and judgements such as the valuation of investment properties. Audit procedures performed by the engagement team included.. Discussions with management including consideration of known orsuspecled instances of non- Complian with laws and regulation and fraud,. Evaluating management's controls designed to prevent and detect Ifregularilies., Identifying and testing journals, in particular journal entries posted with unusual descriptions.. and Challenging assumptions and judgements made by management in their critical accounting estimates and challenge of the underlying assumptions. 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.uklaudilorsresponsibilities. This description foms part of our auditor's report Use of our report This report is made solely to the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken 59 that we might slate to the charitsble company's members those matters we are required lo state to them in an Auditorfs 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 companls mernbers as Ixjdy, for our audit work, for this report, or for the opinions we have formed. Adam Halsey (Senlor Statutory Auditor) 10 Queen Street Place London EC4R 1AG For and on tehalf of Haysmacintyre LLP, Statutory Auditors Date: 26 April 2022 Page 13
ST CHRISTOPHER SCHOOL {LETCHWORTHI LIMITED STATEMENT OF FINANCIAL ACTIVITES WHICH INCORPORATES THE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021 INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021 Notes 2021 2020 Income from Charltable Activities 9.378,792 8,826,302 Grants & Donatlons In¢orning Rosouiees from Other Trading Athltles Lettings 168,214 550.197 11X,234 113,689 Investments Bank and other interest Other Income 855 37,617 1,510 8,536 Total Incomg 9,691,712 9,500,234 EXPENDITURE Cost of Raising Funds Charltable Activities Education and grant making 9,450,821 9,680,873 Total Expendlture 9.450,821 9.680,873 Net incoming resources bgfore gain and lo¥ses 240,891 (180,639) Net Gain on investments 17,705 24.563 Net movement in funds 258.596 (156.076) BalanS brought forward al 1 September 2020 9.798.167 9.954,243 Balances Garried forward at 31 August 2021 10 056,763 9 798.167 The results sel our above all relate to continuing operation5 and relate entirely to unrestricted funds. The notes on pages 18 to 28 form part of those accounts. Page 14
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED BALANCE SHEET AS AT 31 AUGUST 2021 BALANCE SHEET AS AT 31 AUGUST 2021 Notes 2021 2020 TANGIBLE FIXED ASSETS School buildings and equipment 9.598,857 10,126,724 INVESTMENTS 1,700,007 1,680.007 CURRENT ASSETS Debtors Cash 1 S7.142 2,505.172 416,983 920,920 2.662,314 1.337.903 CREDITORS: amounts due within one year 3,600,703 .495,837 NET CURRENT LIABILITIES 938,389 1, 157,934 TOTAL ASSETS LESS CURRENT LIABILITIES 10,360,475 10,648,797 CREDITORS: amounts due after more than one year Loan & Fees in Advance 303.712 850.630 TOTAL NET ASSETS 10,056.763 9,798,167 CAPITAL AND RESERVES Called up share capital 11 40 40 UNRESTRICTED FUNDS General Reserve Designated Reserves 9,854,085 202,638 9,798,127 TOTAL UNRESTRICTED FUNDS 12 10,056,723 9.798.127 10.056,763 9,798,167 Approved and authorised for issue by the Directors on and signed on their behalf by Peter Memeekin Directors Alison Burrows Date.. 2£ hO£IL 2oZL Tho notes on pages 18 to 28 form part of these accounts. Page 15
ST CHRISTOPHER SCHOOL ILETCHWORTH) LIMITED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2021 STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2021 Notes 2021 2020 Cash flows from Operating Actlvltles: Nel cash Provided by operating activities 117al 1,792.042 (8.687) Cash flows from Investing Aclivities: Payments for tangible fixed assets Payments for investments 1170,7401 (548,796) 1170,7401 (548.796) Interest ReiVed Interest Paid on Loan Property Rental Income Proceeds from sale of fixed assets Transfer lo investment properties Management charges for rental property 855 (12.759) 57.675 1,510 (11,220J 59,548 12.295} 8,409 35.067 (5,437J 9,218 35.183 Net cash flows used in investing activities: 1135.6731 (513,613) Cash flows from Financing Activlties- New Loan Repayments on Loan Cash flows used in financing actlvltles: 500,QOO 26,535 473,465 72,117 172.1171 Change in cash and cash equivalents In the reporting period 1,584,252 48,835 Cash and cash equivalents al the beginning of the reporting period 920.920 969, 755 Cash and cash equivalgnts at the end of the reportlng {17b) period 2,505.172 920.920 The notes on pages 17 to 28 forrn parl of these accounts. Page 16
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 1. COMPANY INFORMATION The School is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 16 July 1954 (company number 5358361 and registered as a charity on 19 February 1963 (charity number 311062). 2. ACCOUNTING POLICIES al Basls of Preparation The financial statements have been prepared under the historical cost convention in aceordanee with Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS102 second edition, effective 1 January 20191. the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021. The functional currency of the School is considered to be GBP because that is the currency of the primary economic environment in which the School operates. After reviewing the School's forecasts and projections, the Govemors have a reasonable expectation that it has adequate resources to continue in operational existence of the foreseeable future and consider there were no material uncertainties over the School's financial viability. The School therefore ¢ontinues to adopt the going concern basis for preparing ils financial slalements. The School owns the whole of the share capital of St Christopher School Guilds Limited, which is dormant. In the opinion of the Govemors the 8Ctivilies of the company are ntst material in the context of the overall accounts and therefore consolidated accounts are not prepared. The company results and nel assets position al the balance sheet date are set out in note 14. Critical Accounting Judgements and Key Source5 of Estimatlon Uncertsinty In the application of the accounting policies. Trustees are required to make judgement, estimates and assumptions about the carrying value of assets and Siabilib'es that are not readily apparent from other sources. The estimates and underfying assumptions are based on historical experience and other factors that are considered lo be relevant. The Iruslees consider the value of investment properties by reference lo informal information prOved by the School's lelling agent. If there is a change in the tenancy or signifi¢ant market volatility, then the trustees will consider the need for a formal professional revaluation. b} Tangible Fixed Assets Depreciation is provided on all tangible fixed assets in use, other than freehold land, at rates and bases calculated to write off the cost less estimated residual value of each assel over its expected useful life, as follows.. Long leasehold property, acquired prior lo 1979 - over the term of the lease Long asehold property - beeen 25 and 50 years Motor vehicles - over 5 years Fixtures, fittings and equipment - beeen 5 and 10 years Leasehold improvements - over 20 years Plant - over 20 years Computer equipment - over 3 years Page 17
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 Long leasehold property is considered by the directors to have a sufficient ewnomic life to allow it lo be amorbsed over ils lease term of 100 years, as al 31 August 2014. Its service potential is such that the directors consider the carrying value. The directors will review this position annually. The Sehool capilalises all items over £1,000. c) Inveslment Propertles Investment properties are stated at their market value at the balance sheet date. No depreciation is provided for in respect of investment properties in accordance with FRS102. Such properties are held for their investment potential and not for consumption within the business. This is a departure from the Companies Act 20CE which requires all properties to be depreciated. however the trustees consider that to depreciate them would not enable the financial slalements lo give a true and fair view. dl Fees and other edueatlonal Income Fees receivable are staled after deducting scholarships, bursaries and other allowances granled by the school and amounts in respect of co-curricular activib'es for the education of pupils, such as school trips. and is shown in the statement of financial activities nel. This presentation has been adopted lo allow 8 fuller understanding of the total amounts involved within the school's operations and is in line with generally accepted praetice within the sector. e) Expendlture Expenditure is accounted for on an accruals basis. Overhead and other Costs not directly attributable lo partlcular functional acts'vity categories are apportioned over the relevant categories on the basis of management estimates of the amounts attributable to that activity in the year, either by reference to staff time or space occupied, as appropriate. The irrecoverable element of VAT is included with the item of expense lo which it lates. Support staff costs include staff, depreciation, other costs and govemance Costs which compromise the costs of complying with constilulional and statutory requirements. Support costs are allocated across expenditure categories within the Statement of Financial Activities on the basis of departmental activity. fj Operating leases Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and reIvable as an in¢ents've to sign an operating lease are similarly spread on a straight-line basis over the lease lemi. gl Pensions The School conlributes to the Teachers, Pension Defined Benefits Scheme al rates set by the Scheme Actuary and advised lo the Board by the Scheme Adminislralor. The Scheme is a multi-employer pension scheme and il is not possible to identify the assets and liabililles of the Scheme whi¢h are attributable to the School. In accordance with FRS102 the Scheme is accounted for as a defined contribution scheme. The School also contributes to a defined contribution pension scheme for its non-leaching staff. h) Funds Unreslricled School ftjnds are available for use at the discretion of the Governors in furtherance of the general obltIveS of the School and which have not been designated for other purposes. il Financial Instruments Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised. Page 18
ST CHRISTOPHER SCHOOL {LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 Financial assets held at amortised cost comprise cash at bank and in hand together with trade and other debtors, together wrth all debtors (gross of any bad debt provision) excluding prepayments. A specific provision is made for debts for which recoverability is in doubL Cash al bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities indude all creditors excluding deferred income, taxation and social securfty, provisions and estimated accruals. Assets and liabilities held in foreign currency are translated lo GBP at the balance sheet date at an appropriate year end exchange rate. j) Government grants Grants received under the furfough scheme have been oUnted for an accruals basis and are included in other income. FEES RECEIVABLE 2021 2020 Fee5 receivable consists of.. School Fees Less.. Bursaries Alowances 9,601,158 9.012,437 1457.4041 (443,245) 441.507 396,520 8,702.247 8,172,672 other fees receivable 560,272 601,055 Fees Receivable 9.262,519 8,773,727 Coaching charges Swimming Pool Income 280 115,993 859 51,T16 Total Income from Charitsble Aclivrttes 9,378,792 8.826,302 Page 19
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 ANALYSIS OF TOTAL RESOURCES EXPENDED 2021 staff costs Other Dgpreclatlon Total Cost of Taising Funds Charitable Activities: Education Welfare Prernises Swimming Pool Costs Support Costs 4,822,655 849,507 233,944 119.422 634.977 510,399 305,860 760,436 9,463 505,404 5.333,054 1.155,367 1.693,134 128,885 1.140,381 698.754 6,660.505 2.091,562 698,754 9,450,821 2020 Cost of ralslng Funds Charitable Actlvftles.. EduGation Welfare Premises Swimming pool costs Support Costs 4, 787,255 611,302 222,346 142.576 1.099.593 482,025 340, 726 675,815 38,553 579,825 88.653 23.090 588.572 5,357,933 975, 118 1,486, 733 181,129 1.679,960 542 6,863,072 2.116,944 700, 857 9.680,873 Included within Other Costs above were Governance costs of £20912020.. £5881 relating lo expenses. 2021 2020 other expenditure includes.. Auditor's remuneration.. for audit linc VATI Operating lease rentals- other Depreciation 20,040 37,350 698,607 16,500 71.435 700,857 Staff Costs Wages and salaries Social Security costs Pension contribub'ons 5,287.863 476.238 916,404 6.660,505 5.427,897 493,13t 942.044 6, 863,072 The staff costs Include agency staff costs of £128k {2020.' £94,340) and redundancy costs of £43.642. Page 20
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 The average number of employees in the year was.. 2021 Average FTE Average Actual No. No. 78 78 25 33 37 48 20 25 12 12 172 196 2020 Average FTE No. 70 23 38 22 11 164 Average Actual No. 78 31 45 21 13 188 Teachers Academic Support Welfare Premises Administration Total Neither the Directors nor persons connected with them received any remuneration oi other benefits from the School or any connected organisalion. Rglatgd Party Transactions 2021 2020 Reimbursement of trustee expenses Number of trustse reimbursed £0 £0 The Trustees received no remuneration but did receive reimbursement of expenses. There were no transactions wrth related parties. The number of employees whi)se emoluments exceeded £60,000 We.. 2021 No. 2020 No. £60,001- £70,000 £70,001- £80,000 £90,001- £100,000 £100,001- £110.000 £110,001- £120,000 £120,001- £130,0 The total aggregate remuneration for key management was £950,185 {2020.' £779,465) were charged to the Statement of Financial Activities during the year. Page 21
00 0 to
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 INVESTMENTS 2021 2020 Investment properties bld Transfer from fixed assets lrnprovements and additional costs Gains on revaluation 1.680.000 1.650,000 2.295 17.705 5,437 24,563 Investment properties cl 1,700.000 1,680,000 Investment in subsidiary undertaking (note 14} 1,700,007 1,680,007 In 2013, properties were transferred from tangible fixed assets to investment properties following a change of use and in January 2019 a further property was transferred. The market value of all 4 properties as al 31 August 2021 was estimated by Iwal real estste agents using their knowledge of the local market for such assets. The Trustees valued these properties at £1,697,705 based on this informal advice. DEBTORS 2021 2020 Fees Other debtors Prepayments and accrued income 18,669 21,109 117,364 180,305 8,729 227,949 157,142 416,983 CREDITORS: DUE WITHIN ONE YEAR 2021 2020 Bank Loan Inole 10) Fees in advance Parental deposits Trade creditors Other taxes and social security A¢¢ruals and deferred income Other creditors 581,397 132, 065 1.859.848 1,226, 658 628.078 642,541 213,869 89,055 125,806 130,519 52.734 135,243 138,971 139. 756 3,600,703 2.495,837 Parenlal deposits Parents pay a deposit on accepting a place for their child and the money is returned subject lo offset of outstanding costs after their child leaves the school. The Governors have concluded that the School does not have an unconditional fight to retain the individual deposits for al least 12 months after the balance Sheet date so present refundable deposits are within current liabilities. Page 23
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 CREDITORS: DUE AFfER MORE THAN ONE YEAR: 2021 2020 From one lo two years.. Fees in advance Loan {nole 101 24.675 205.011 25,470 726,460 From to five years.. Fees in advance Loan 74.026 74,025 Five years onwards.. Fees in advance Loan 24,675 Totsl 303,712 850.630 10. BANK LOAN 2021 2020 Amounts falling due.. Within one year Within one to years Within two to five years 581,397 205,011 132,065 726,460 Total 786,408 858,525 The Bank Loan consists of a mortgage with Barclays Bank plc dated 24 May 2017 and Covid-19 Busines$ Interruption Loan ICBILI dated 9 April 2020. The mortgage was raised in 2017 to partly fund the purchase of Elmscott linveslmenl property) and is secured upon the propety. The kjan is repayable monthly and the interest rate is 2.75% over base. The Covid Business Interruption Loan {CBILI was raised in 2020 for £500,000. The loan is repayable over 2 years after the Business Interruption Period (BIP) has passed. During the BIP 112 months from the draw down dale) the interest is paid by UK Government. The loan is repayable monthly and the interest rate is 2.300A over base. 11. SHARE CAPITAL No. 2021 Value 2021 Value 2020 2020 Allotted and fully paid.. Ordinary shares of £1 each 40 40 40 40 The ordinary shareholders have no rights to re¢eive any dividend or bonus out of proffts and no rights lo surplus assets on a winding up. Page 24
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 12. UNRESTRICTED FUNDS 1 September Surplusllloss) 2021 Tran8fera 31 August General funds 9,798.127 258.596 1202,6381 9,854,085 Designated funds Fees reserve Capital reserve 30,000 172,638 30,000 172,638 Total designated fund$ 202,638 202,638 Total unrestricted funds 9,798,127 258,596 10,OS6,723 2020 I September surplu{10$$) Transfers 31 August General funds 9,954,203 (156,076J 9,798.127 Total unrestricted funds 9.954.243 (156,076) 9.798.127 Two designated reseNes were set up during the year. being the fees reserve and capital reserve. The School have transferred £30,000 from general funds to the Fees reserve to ensure mitigation against future fee payments. The School transferred £172.638 from general funds to the Capital reseNe lo enable investment in site and specifically infrastructure projects. 13. OPERATING LEASE COMMITMENTS 2021 2020 Total value of minimum lease payments over remaining lrfe.. Within one year Within kn to five years More than five years 31,060 51,215 31,060 82,275 14. TEACHERS, PENSION DEFINED BENEFITS SCHEME The School participates in the Teachers, Pension Scheme rthe TPS") for ils teaching staff. The pension charge for the year indudes contribution$ payable lo the TPS of £1,010,508 {2020: £747,270) and at the year-end £nil {2020.. £nil) was accrued in respect of contributions to this scheme. The TPS is an unfUred mulli*mployer defined benefits pension scheme govemed by The Teachers, Pensions Regulations 2010 las amended) and The Teachers, Pension Scheme Regu18tion$ 2014 las amended). Members contribute on a'pay as you go" basis with contributions from members and the employer being credited tr) the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rate is sel by the S6rretsry of Slate following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepad 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 16.40/0 to 23.60k from 1 September 2019. Employers are also required to pay a scheme adminislralion levy of 0.080k giving a total employer contribution rate of 23.680A. Page 25
ST CHRISTOPHER SCHOOL {LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 The 31 March 2016 Valuation Report was prepared in accordance with the beneflls sel out In the scheme regulations and under the approach specified In the Directions, as they applied al 5 March 2019. However, the assumptions were considered and sel by the Department for Education prior lo the ruling in the 'McCloudlSargeant ¢ase'. Thi5 case has required the courts to consider cases regarding the implementation of the 2015 refomis lo 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 di5criminalion. 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 WISE be remedied. The government announced on 4 February 2021 that it intends to proceed wtth a deferred choice underpin under which members will be able lo choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 al the point they become payable. The TPS is subject to a cost cap mechanism which was pul in place lo 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 Mecloudlsargeanl 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 consullalion, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming lo 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 revision is completed it is not possible to conclude on any financial impact or future changes lo the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements. The School also runs a defined contribution pension seheme for non-leaching staff. The cost for the year presents the School's contribution to the scheme of £224.74312020'. £194,774). 15. ST CHRISTOPHER SCHOOL GUILDS LIMITED The school holds a 1000A interest in a trading company, St Christopher School Guilds Limited (company number 32259761. with the School receiving any surpluses earned by the company as a ¢ovenanted distribution. From 1 September 2011, all letting transactions are dealt through St Christopher School and Sl Christopher School Guilds Limited is currendy dormant. The financial statements of the company at 31 August, which are not consolidated with the School financial statements. showed the following position.. 2021 2020 Net Assels Page 26
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 16. CONTRACTS AND COMMITMENTS Capitsl expenditure of £nil has been ¢onlracted for as at 31 August 2021 {2020 £5.907). 17. CASH FLOW {al Reconciliatlon of Net Incoming Rgsources to Net Cash Inflow from Operations 2021 2020 Net incoming resources 258 596 180,639 Elimination of non-operating cash flows-. Interest received Interest of loan repaid Rental Income from investment Cost of Management of Rental Properties Gains on investment properties Depreciation charges Decreasellincreasel in Debtors {Decrease}lin¢rease in Creditors 18551 12,759 {57,675} 8,409 {17.7051 698,607 259,841 630,065 (1,510) 11,220 (59,548J 9,218 700,858 (77,651) (410,635) 171,952 Net cash inflow from operations Ibl Analysis of cash and cash equivalents Cash hgld and at bank 2.505.172 920,920 (c) Analysls of changes In net funds Balance at 1 September 2020 Balance at 31 August2021 Cash Flows Cash at bank & in hand Loan {nole 101 920,920 858 535 62,385 1,584,252 2,505,172 786 418 1,718,754 1,656,369 Recon¢iliotion of Net Cash Flow to movement In net debt 2021 2020 Increaselldecreasel in cash in the year Cash oufflow from decrease in debt Movement in net Idebtyfunds In the year Opening nel funds Closing net funds 1,584,252 (48.835) 473,465 (522,300) 584, 685 62,385 1,656,369 1718,754 Page 27
ST CHRISTOPHER SCHOOL (LETCHWORTH) LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021 Page 28