2020-07-31-accounts

Registered number: 00940118 Charity number: 311293

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the company, its Trustees and advisers	1
Trustees' report	2 - 9
Independent auditors' report on the financial statements	10 - 12
Statement of financial activities	13
Balance sheet	14
Statement of cash flows	15
Notes to the financial statements	16 - 31

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2020

Trustees	Ms S J Anthony
	Mr D J H Bolton (retired 30 August 2019)
	Dr S M Carroll (resigned 24 March 2020)
	Ms C R Costello
	Mr A M A Fennell
	Mr A J Fish
	Mr M M Graham
	Ms S Jack
	Mr A W S Kingham
	Ms J L North (appointed 19 June 2020)
	Ms N Ovenden
	Mr A M Possener
	Ms S C Waddington
Company registered number 00940118 Charity registered number 311293 Registered office Town Close House Educational Trust Limited 14 Ipswich Road Norwich NR2 2LR Company secretary Mrs B Ogg Independent auditors Larking Gowen LLP Statutory Auditors King Street House 15 Upper King Street Norwich Norfolk NR3 1RB Bankers Handelsbanken Suite B 1 Prince of Wales Road Norwich NR1 1BD Solicitors Leathes Prior 74 The Close Norwich Norfolk NR1 4DR Headmaster Mr N Bevington

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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2020

The Trustees present their report and audited financial statements for the year ended 31 July 2020 which comply with the requirements of the Charities Acts 1993 and 2006, with other current statutory requirements and with the requirements of the charity’s governing document. The Trustees have adopted the provisions of the 2005 Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.

Principal activity and status

Town Close is an independent preparatory school, established in 1932 and, as Town Close House Educational Trust Limited, providing day education for girls and boys between the ages of 2 and 14. The Trust is a company limited by guarantee (company number 940118), incorporated upon trusts set out in the scheme of the Charity Commission dated 7 October 1968 (registered charity number 311293).

Mission and objectives of the School

The Trust is governed by its Memorandum and Articles of Association. The Trust’s primary objects are “for the public benefit to advance education of young people (under the age of 21) through the provision, support, conduct and maintenance of a day and/or boarding school or schools and such other ancillary educational activities and other associated activities for the benefit of the community.” In furtherance of these objects, Town Close aims, by the education of all its pupils, to develop an awareness of their full potential and encourage them to strive to attain this potential. It expects to equip them with the intellectual, emotional and physical attributes, as well as moral and spiritual values, that they need to live their lives fruitfully.

Structure, Governance and Management

The Trustees are the Governors of the School and Directors of the Company. (The single term ‘Trustee(s)’ is used in this annual report in describing the discharging of their various duties.)

The Trustees who served during the year ended 31 July 2020 were as follows:

SJ Anthony * (Chairman from 31.8.19) DJH Bolton (Chairman until 30.8.19 when he resigned as a Trustee) Dr SM Carroll (resigned as a Trustee on 24.3.20) CR Costello AMA Fennell * (joined the Finance and General Purposes Committee on 1.9.19) AJ Fish * (Chairman of Finance & General Purposes Committee and Joint Deputy Chairman) MM Graham * AWS Kingham S Jack (Joint Deputy Chairman) JL North (from 19.6.20) N Ovenden AM Possener * SC Waddington (indicates membership of the Finance & General Purposes Committee during the year ended 31 July 2020.)

Trustees retire from office by rotation and are eligible for re-appointment in accordance with the Articles of Association. Appointments to vacancies arising during the year are made by the Trustees on the recommendations of the Nominations Committee. This functions of this Committee include reviewing the composition of the Governing Body and its sub-committees, overseeing succession planning and members’ induction and training and development. Trustees receive at least termly reports from the Headmaster on the work of the School, supplemented by monthly management accounts and briefing materials circulated by the Bursar (who is also Clerk to the Governors).

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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

Governing body meetings are often preceded by information sessions from staff on aspects of the School’s academic and other activities. Trustees liaise with staff by attendance at School events and activities, and individual governors attend occasional national and/or local training and information seminars and workshops. In addition to this, one Trustee is appointed to be a Liaison Governor and comes into School regularly to meet with different members of staff. Staff may ask to attend one of these sessions or are selected in rotation by one of the Deputy Heads. The Liaison Governor reports back to Trustees annually or more regularly if required.

The Trustees, meeting formally as the Governing Body at least three times a year and, guided by the Finance and General Purposes Committee, determine the general policy of the School, review its overall management and control, and oversee regulatory compliance in accordance with the terms of its registration with the Department for Education. The day-to-day affairs of the School are run by the Headmaster, with the support of his Senior Management Team, and by the Bursar – a key member of that team.

Key Management Personnel – Pay policy for senior staff

Key management personnel are considered to be the board of directors, who are also Trustees, the Headmaster and the Bursar who, collectively, are in charge of directing and controlling, running and operating the Trust on a day-to-day basis. All directors give of their time freely and no director received remuneration in the year. Details of directors’ expenses and related party transactions are disclosed in note 22 to the accounts.

The pay of the Headmaster and Bursar is increased annually in line with any general increase given to teaching staff as agreed by the Governing Body. Their pay is also benchmarked against other Heads and Bursars in similar schools and is reviewed to consider whether it continues to be appropriate in the light of this and of:

(a) performance;

(b) any changes in individual responsibilities or functions;

(c) structural changes in the School;

(d) relative salaries of others on the Leadership scale or those on the main scale;

(e) any other elements agreed by the Committee to be relevant.

In the absence of any significant grounds, under any of these headings, for increasing the fixed salary, the expectation is that their salary will remain at the fixed point.

Public benefit

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken. A working group of the Governing Body has specific, on-going responsibility for oversight of this area, and the Trust continues to review its activities regularly to ensure public benefit is a consideration in all decisions. To this end, a commentary on public benefit forms part of each section of the School’s Development Plan.

The provision of education to a large number of pupils remains the Trust’s core charitable purpose and activity and its fundamental contribution to public benefit. In a practice which accords with principles set out in the Charity Commission’s general guidance on public benefit, Town Close has for some years provided bursary assistance to the parents of a number of pupils who are unable to pay the full fees, and has a means-tested framework for providing such assistance. This has been applied in respect of pupils already in the School and to new admissions. Recipients of bursary awards are spread throughout the School, and from the twenty pupils in receipt of financial support this year, eighteen received a remission of 50% or more.

More broadly, the Trust provides public benefit by opening the School’s sports and other facilities to outside users, including school-age children, some usage being without charge. In addition to the growing demand for such access to the Sports Hall and of the Read Hall for the performing arts, the AstroTurf provides a programme of educational and sporting use by outside parties. This involves a hockey consortium formed with

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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

a local sports club (Norwich Dragons Hockey Club) and what was a local maintained sector school (The Hewett School). While the Hewett School no longer exists, Town Close’s substantial contribution to the development is enabling its successor school (The Hewett Academy), while not a member of the Consortium, to extend hockey provision to pupils for whom there was previously no opportunity whilst enabling the partner hockey club to run free coaching sessions introducing the sport to local children. The Hockey Consortium subsequently sublet land free of charge to another independent school and a second Astroturf was constructed. One of the conditions associated with the sub-lease was that this second pitch must be made available for community use in the evenings and at weekends.

Other activities by means of which Town Close has provided public benefit consistent with its aims and objectives have included: the provision of five free places to the School’s summer holiday club for children from a local school in receipt of pupil premium; free use of the School swimming pool for a local maintained school for children with complex needs; the free use of the main sports field for maintained school events eg sports days; inviting pupils from local maintained and independent schools to hear visiting authors and to watch school performances; the provision of work experience placements for pupils from local schools and for prospective teachers; donating books to other schools, and providing free access to a Puppet Theatre performance and a yoga session to very young children.

The School has also been instrumental in supporting maintained schools across Norfolk to introduce the use of Goblin go-karts. The Head of DT helped them source funding to support the initial cost and then provided training sessions to share learning and to give instruction in how to introduce the project in their schools. He went on to find a suitable venue for a Norfolk-based racing event and coordinated a group of sponsors for this. 18 schools took 25 cars to the event, along with an average of 6 pupils per car. This would not have happened without Town Close’s involvement and without the School agreeing to release the Head of DT to work on this project. Over the last year, the Head of DT has continued to work with Greenpower and, in particular, helped to secure grant funding for maintained schools to introduce the category of go-karts for secondary age pupils (F24). He attended several external events and visited other schools to generate interest in this category, as well as holding meetings and twilight sessions at Town Close School. He secured the use of the Lotus test track for the inaugural F24 event in Norfolk held in June 2019 which attracted participants from across the region and further afield.

While the coronavirus pandemic temporarily stopped some of these activities, a discount was applied to the summer term school fees for all parents in recognition of the financial effect of lockdown on many families. In addition, parents of a further 16 pupils were given greater financial assistance because of the even worse financial impact of the pandemic on their particular financial circumstances. This further assistance was means tested in the same way as normal bursarial support would be. The School also gave free access to a library of recorded lessons and downloadable learning resources created by School staff during lockdown. The online resources hub contains a wide variety of educational resources including music classes, story time, challenge sheets, mindfulness exercises and a range of age appropriate mental health tools and information. The hub is open to anyone with internet access and has already been accessed by over 12,000 visitors to the website.

Strategic objectives and achievements

• Further functionality in the School’s online portal, which links to the Management Information System, was developed.

• School trip planning software was purchased that also integrates with the School’s Management Information System, allowing for more efficient preparation and multiple access points to trip information.

• • Following the successful creation of the woodland walk, the use of play areas was developed further, including by painting new play markings on the Pre Prep tarmac playground and creating an artificial grass play area outside the Nursery to provide extra outdoor space in the winter months.

• The School would have finished its participation in the formal KS2 assessments in 2020 had these not been cancelled due to the pandemic, because of the move from “best fit” to “exact fit”, which is less compatible with the School’s broad-based, subject specialist curriculum. Alternative assessments that maintain the School’s ability to track progress empirically from Pre Prep upwards were explored.

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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

• Following the successful introduction of the new feedback policy, policies and guidance continued to be developed to ensure teachers are deployed as efficiently as possible, managing workload and maximising the effectiveness of the time they deploy.

• A professionally trained school assistance dog was introduced in the Learning Support Department to add further to the School’s provision for wellbeing, mental health and Learning Support.

• Membership of the Town Close Association for alumni continued to be developed, although raising funds for the development of the science, art, music and dining block, that will allow the School to enhance its public benefit and support a wider range of needs within the community was put on hold.

• Continuing investment in good quality teaching and support staff.

• To continue to offer membership of the Teachers’ Pension Scheme to those eligible.

Operational performance

Common Entrance exams were cancelled due to the coronavirus pandemic, which was particularly disappointing for a cohort that seemed destined for excellent results. Entrance exams for most senior schools took place before lockdown and the vast majority of pupils had, therefore, already secured senior school spaces. Pupils in their final year worked particularly hard to achieve excellent results and deserve great credit for their efforts. Their talent was acknowledged by gaining offers for 30 academic scholarships or other awards to a variety of senior schools, the second highest number ever achieved by a Town Close Year 8 cohort and only marginally lower than the unprecedented 34 achieved in 2019. Of particular note was one pupil winning the Oundle Academic Scholarship, one of the most challenging of all senior school awards to win. In addition, 4 awards were offered to Year 6 pupils moving to senior schools at 11.

Key Stage 2 SATS were also cancelled in what was to be the last year of Town Close participating in these before moving to ISEB 11+ Common Entrance exams for Year 6 pupils. Town Close has valued participation in KS2 SATs as they have provided the only standardised external measure of attainment for pupils finishing Year 6. However, the new style and move to exact fit for writing has shifted the focus increasingly to intensive practising of narrow and artificial exercises, which the School has felt do not prepare children well for the requirements of the years ahead. Nevertheless, the School looked well placed to achieve strong results in its final year of KS2 SATs and it was disappointing that the assessments were not possible. This was especially the case given that last year’s results were less strong due to a number of recent joiners not making the expected standard, as well as the school not focusing explicitly on writing assessments involving “exact fit”.

The school encourages the widest possible participation of girls and boys in a broad range of co-curricular and extra-curricular activities, with the year once again seeing many notable successes:

The Town Close F24 racing team, comprised of Year 8 members of the after-school club, competed at Bedford before appearing for the second time in the international finals, this year held at Silverstone. The team came third in the world in the kit car category, an amazing achievement considering the small size of our school and young age of our pupils. Sadly, the pandemic prevented participation in the Year 6 team events scheduled for the summer or the 2020 F24 events.

Once again, the School undertook many successful extra-curricular trips allowing children invaluable learning beyond the classroom. Year 8 pupils stayed at Holt Hall for science and geography field work and Year 7 spent a week at Château de La Baudonnière undertaking French immersion. There were also numerous successful day trips such as Year 8’s trip to Goldsmith Street as part of their geography studies. Sadly, the Year 6 Humanities Trip to Normandy, the Year 4 residential camp to Horsford, the Year 8 Real Adventure trip to the Lake District and all of the Adventure and Skills Academy camping trips had to be cancelled because of the pandemic.

The School hosted a number of successful events including grandparents’ afternoons, the Christmas Fayre and World Book Day, where pupils dressed as characters from literature and gave presentations based on who they were playing and their role in the book concerned. There were successful concerts, including the Christmas Concert, and soloists’ concerts for various year groups. The Carol Service included quality readings delivered

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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

by pupils and outstanding anthems performed by the Chamber Choir, Senior Choir and 4Tissimo Choir. Pre Prep children performed beautiful Nativity plays for each year group, while Year 4 took to the stage with Porridge and Years 7&8 performed Peter Pan the week before lockdown, with performances recorded in front of a pupil audience and shared with parents via YouTube.

In sport, nine children qualified for the IAPS national finals at swimming, though the finals themselves were then cancelled. One pupil became the top Norfolk runner at the Regional Cross Country Championships. The School’s rugby teams had one of their strongest seasons for a while in what has often been the least strong sport for Town Close pupils. There were strong performances by the girls’ teams in the IAPS hockey, strong netball results and the internal House cross-country events all took place just before lockdown.

The School was shortlisted for the Tes Pre Prep/Prep School of the Year Award in January and was named the winner of this very prestigious award at a special ceremony in London in February. The judges cited achievements in engineering, pupil-led initiatives to promote equality and lessen environmental impact and outstanding academic results.

All schools were shut on March 20th except to children of key workers and vulnerable children, due to the pandemic. Given the very short notice of closure, the School was not in a position to deliver virtual lessons for the last week of term but provided work for children online with work packs for younger children. In the summer term, the number of children registered as key worker children and attending school regularly rose to 185, which we believe to be the highest number of any school nationally. Alongside continuing physical provision for these pupils, Town Close developed a remote learning model for all children which, from the start of the summer term, involved a full timetable delivered live via Zoom for pupils in Years 2-8, except games, music and computing. There was an adapted timetable of live lessons and recorded resources for Year 1 and below, reflecting their different needs. This was particularly demanding for academic staff, many of whom were required to teach both virtually and physically at the same time using software with which they were not familiar.

Despite the significant challenges, the quality of this provision led to a very high number of letters and emails thanking the school and a surge in admissions enquiries later in the summer term. All children in Nursery, Reception, Year 1 and Year 6 were able to return on June 1st, albeit under very different conditions from normal. Despite the restrictiveness of the guidance, which involved segregated bubbles of no more than 15 pupils, the School was able to welcome all pupils from Nursery to Year 8 back on June 22nd for the final three weeks of term. A special outdoor prizegiving was held just for Year 8 pupils at the end of term, which was filmed and edited, with younger prize winners being awarded their prizes in class bubbles. The film was released on YouTube and watched by 543 families, more than would normally attend the event physically. Trustees were very pleased that the School rose to this challenge and, despite all the difficulties encountered, was able to overcome these and to continue to provide for all pupils in a variety of different ways.

Financial review and reserves policy

The School’s principal source of funding is from fee income.

As reported in the statement of financial activities and income and expenditure account later in this Report, the School’s net income for the year, after depreciation, was £546,630 (2019: £355,471). This was another very positive outturn following a pattern of strong performance over the past ten years and more that has facilitated a major development programme and continuous investment in improving the quality of Town Close’s educational provision, and reflects very effective financial planning and management. It should be noted that the cash position as at 31st July 2020 includes advance payments for the entirety of the next school year from parents electing to pay in advance.

In the last year £471,581 was invested in capital items with a large proportion of this being spent on work to renovate and extend the Lodge which was purchased along with the site in 2016. The Lodge is listed and so

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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

the project has been challenging but the building will be a useful asset to the School. The Trust’s pattern of operating performance and the state of the balance sheet continue to leave the Trust well placed operationally and in its capacity to respond to new demands and opportunities that might arise. The School has now been given planning permission for a new science, art, music and dining block allowing fundraising for the project to start in earnest when Trustees consider the time is right.

Given the significant impact of the coronavirus pandemic, Trustees have given consideration to how this might affect the School’s finances in the short to medium term. The majority of the School’s parent body appears to have been financially resilient despite the pandemic, many working in professions where income has not been adversely affected. While pupil recruitment was certainly affected during lockdown, the larger than usual number of late registrations has meant pupil numbers have held up well. Enquires for places continue unabated. However, Trustees are aware that a number of parents’ incomes have been, and will continue to be, adversely affected by the ongoing pandemic and the associated restrictions and will continue to require additional financial support. They are also mindful that the withdrawal of Government support through grants such as the Coronavirus Job Support Scheme and other financial incentives will adversely affect the income of some. Withdrawal from the EU at the end of the 2020 will also have a detrimental impact upon the income and confidence of some current and prospective parents.

Having considered the principal risks and uncertainties, however, Trustees feel that the School’s strong financial position, the strong surplus and the good relationship with the School’s bank mean that it remains appropriate to prepare the financial statements on a going concern basis. It is also possible that economic conditions will result in a shrinking of the wider market for independent education in the medium term but experience suggests that the impact of this will be gradual and that the School will be able to adjust to this in a timely manner should it prove to be necessary. The Trustees nevertheless remain conscious of the continuing economic uncertainty and challenges facing independent schools, and will continue to exercise great care and prudence in their budgeting for the years ahead.

The policy of the Trustees is to maintain reserves at a level that is sufficient to enable the School to continue to operate as a going concern for the foreseeable future. At the present time the reserves, amounting to £7,984,183 (2019: £7,437,553), are fully invested in the fabric of the School. Capitalised expenditure on the School’s premises and equipment has substantially been financed by the Trust’s secured loan facilities, but with a significant contribution from resources generated by the successful operating performance outlined in this and recent Reports.

The Trust is not empowered to deliver any surplus by way of a dividend, bonus or other method to its members.

Objectives and Plans

Objectives for the next year and the medium term include:

• Continuing to assess the risk of the spread of coronavirus within the School and putting in place appropriate control measures to minimise the risk. Maintaining plans for action to be taken in different scenarios potentially caused by the pandemic in order to ensure pupils continue to receive a high quality education and feel safe and secure.

• Developing further functionality in the School’s online portal, which links to the Management Information System, for example integrating reply slips so they can be completed electronically on the portal.

• Embedding trip planning software to allow efficient preparation of trips and multiple access points for information.

• Introducing an electronic recording system for safeguarding records to improve security and access where needed and facilitate smoother and more efficient tracking of concerns.

• Introducing ISEB 11+ Common Entrance exams instead of KS2 SATs.

• Reorganising teacher allocation in art, computing, music, geography, science and English to ensure the most effective distribution possible of specialist teachers, to manage workload and maximise the efficiency of teacher deployment within the timetable.

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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020

• Embark on specialist support dog training for the school assistance dog in the Learning Support Department to add further to her effectiveness in supporting pupil well-being, mental health and Learning Support.

• Developing the membership of the Town Close Association for alumni and raising funds for the development of a science, art, music and dining block, that will allow the School to enhance its public benefit and support a wider range of needs within the community.

Investment powers

The Trustees are empowered to invest funds in a manner appropriate to the financial requirements of the School, having regard to the security of any investments made and the requirements of the Charity Commissioners’ order. The only investment held by the School has provided capital funding to The Central Norwich Hockey Consortium, a registered charity of which it is a member. The funding is recognised as a programme related investment and assisted with the construction of an AstroTurf hockey pitch which is available to the School and for community use (see note 9)

Asset cover for funds

The Trustees are satisfied that on a fund-by-fund basis the assets are sufficient to fulfil all the School’s current obligations.

Systems review and risk management

The Trustees’ Risk Management Policy and accompanying risk register are monitored by a working group comprising a number of Trustees and the School’s Bursar. The work of this group is grounded in the operational aspects of the School, but it also has an important strategic role in reviewing higher level issues such as the educational, economic, legal and political context in which the School operates, and thereby helps to inform the Trustees’ strategic planning and decision-making. The Risk Management Working Group reports at least annually to the Trustees. This committee in turn seeks specific advice and guidance on systems matters from the appointed auditor or from other professional advisers when required.

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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED IA company limited by guaranteè) TRUSTEES. REPORT IcoMfiNUEDI FOR THE YEAR ENDED 31 JULY 2020 statomant of Trustees. rnsponsibilities The Trustees Iwho are also directors of Tovm Close H(MJse Edu(ab"onal Trust Limited for the purposes of company lawl are respon&ble for preparing the Tnjstees. Annual Report and the financial statements in accordance with aP￿Ie8b1e law and regulat￿5. Company law requires the Trustees to prepare financk81 statements for ￿ financial year. Under that law. the Tnjstees have de¢ted to prepare financk81 ststements in accordance with United Kingdom A¢counling Standards (United Kingd(￿ Generally Accepted AccounliThJ Praclio). The financial atements are required by law lo give a true arKI fair view of the stale of affairs of the charilable company and of the inccrning reSoUr￿S and aKpli(31ion of resources, including the income and eX￿nditure. ol the charitable company for that period. In preparing the financial stalements, the Trustees are required to.. select suitable accounting wlicies then appty them consistently; observe the meth(xls and principles In the Charities SORP." make judgments and estimates that are rea￿)na￿e and prudenl", pfepare the financial statements on the going concem basis Un￿ it is inapwopriate to presume that the charitable company wll con)"nue in bU￿nesS. The Trustees are rewngble for keeping ade(wJate &ownting record5 that disclose wilh reasonable accuracy. al any time. the financial position of the charitable company and ena￿e them lo ensure that the financial stslemenls comply wlh the Companies Act 20(￿. They are also iespongble for safeguarding the assets of the Charitab￿ wmpany and hence for taking reasonable steps for the prevenbon and detection of fraud and other irregularities. In $0 far as each of the Trustees is avBre'. there is no relevant audit information of wh￿h the tharilatAe company's auditOT is unware,. and Ihe Tiuslees have taken all steps thal they ought to have taken to make themselves aware of any relevant audit infomation and to esta￿lsh that the auditor is aware of the infomation. Auditor Larking Gowen have been appointed as au(fitor in aC￿rdanCe $485 (41 of the Companies kl 20LE. ON BEHALF OF THE TRUSTEES Sarah Anthony Chair of Governors Date". 20 November 2020 Page 9

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

Opinion

We have audited the financial statements of Town Close House Educational Trust Limited (the 'charitable company') for the year ended 31 July 2020 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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 July 2020 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Trustees 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.

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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' 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.

Opinion 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 Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 Trustees' report including the Strategic report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees' 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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TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (CONTINUED)

Responsibilities of trustees

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 Trustees 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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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 Auditors' 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 so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

J Grimmer FCA DChA (Senior statutory auditor) for and on behalf of Larking Gowen LLP Statutory Auditors Norwich King Street House 15 Upper King Street Norwich Norfolk NR3 1RB

Page 12

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2020

Note Income from: Charitable activities: School fees School trips Holiday activities Income from other activities 4 Total income Expenditure on: Costs of generating funds Fundraising and publicity Charitable activities: School expenses 5 School trips Repairs, renewals and grounds Interest payable Other support cost - governance Total expenditure Net income Transfers between funds 14 Net income Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	General funds 2020 £ 5,161,949 31,282 69,680 145,439 5,408,350 31,854 4,675,266 40,306 164,734 31,470 78,283 5,021,913 386,437 160,193 546,630 7,437,553 546,630 7,984,183	Restricted funds 2020 £ - - - 160,193 160,193 - - - - - - - 160,193 (160,193) - - - -	Total funds 2020 £ 5,161,949 31,282 69,680 305,632 5,568,543 31,854 4,675,266 40,306 164,734 31,470 78,283 5,021,913 546,630 - 546,630 7,437,553 546,630 7,984,183	Total funds 2019 £ 5,302,479 82,743 73,412 186,450
				5,645,084
				39,069 4,805,366 107,276 196,760 58,439 82,703
				5,289,613
				355,471
				-
				355,471
				7,082,082 355,471
				7,437,553

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 16 to 31 form part of these financial statements.

Page 13

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED IA company limited by guarantee) REGISTERED NUMBER: 00940118 BALANCE SHE AS AT 31 JULY 2020 2020 2019 Note Fixed assets Intangible assets Tangible assets 150.0 8,216.850 1r5,000 8,018,565 10 8.366,850 8,253,565 Currnnt assets Debtors Cash al bank and in hand 113,548 IA53.465 152.918 1, 113, 590 1.567.013 1,266. Creditors.. amounts falling due within one year 12 11.075,041) (1, 136,585) Net curr•nt assets 491.972 129,923 Total assets l•ss current liabilitie$ 8.858.822 8,383,488 Creditors.. amounts falling due after more than one year 13 (874,639 (945,935) Total n•t a8set8 7.984,183 7.43T,553 Charity funds Unrestricted funds 14 7.984.183 7,437.553 Total funds 7,984,183 7,437.553 The Trustees acknoYAedJe their responybilities for complying wth the requirement$ of the Act with respect to accounting records and preparation of financial statements. The financial statements were approved and auth(xised for issue by the Trustees and signed on their behalf by.. Ms S J Anthony Fish Dale.. 20 November 2020 The notes on pages 16 to 31 form part of these fin￿e181 ststemenls. Page 14

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2020

Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Repayments of borrowing Net cash used in financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 16 to 31 form part of these financial statements	2020 £ 861,456 (471,581) (471,581) (50,000) (50,000) 339,875 1,113,590 1,453,465	2019 £ 899,447 (358,291) (358,291) (1,285,969) (1,285,969) (744,813) 1,858,403 1,113,590

Page 15

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. General information

Town Close House Educational Trust Limited is a charitable company limited by guarantee, charity number 311293 and company number 00940118. The registered office is Town Close House Educational Trust Limited, 14 Ipswich Road, Norwich, NR2 2LR.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Town Close House 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.

2.2 Going concern

Having considered the principal risks and uncertainties, in particular the challenges posed by the coronavirus pandemic and the resulting economic conditions, the Trustees feel that the School’s strong financial position, the strong surplus and the good relationship with the School’s bank mean that it remains appropriate to prepare the financial statements on a going concern basis.

Further detail is provided in the Trustees' report.

2.3 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 16

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Intangible assets and amortisation

The School has provided capital funding to The Central Norwich Hockey Consortium (a registered charity). Funding has assisted with construction of astroturf hockey pitches and associated facilities, which are available for school and community use. The funding is recognised as a programme related investment stated at cost less amortisation. The investment is being amortised by way of an annual grant to The Central Norwich Hockey Consortium on a straight line basis over 15 years, the period during which the school expects to utilise the facilities.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on the following basis:

Programme related investment - 15 years

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 17

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Freehold land - Not depreciated - Freehold buildings 20 to 50 years Motor vehicles - 5 years - Furniture, fittings and 10 years equipment - Computer equipment 3 years Assets in course - Not depreciated during the period of of construction construction

2.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.10 Financial instruments

The company 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 18

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

2. Accounting policies (continued)

2.11 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

2.12 Pensions

Retirement benefits to employees of the school are provided by the Teachers' Pension Scheme ("TPS"). This is a defined benefit scheme.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the School in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs 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.

3. Turnover

Gross Fees Less: Bursaries and remissions Less: Covid-19 discount	2020 £ 5,836,289 (345,033) (329,307) 5,161,949	2019 £ 5,679,404 (376,925) - 5,302,479

Page 19

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

4. Income from other activities

Unrestricted funds 2020 £ Swimming pool income 21,247 Other hirings 15,864 After School care income 56,762 Other income 21,652 Fundraising 4,752 Music lessons 25,162 Coronavirus Job Retention Scheme grant - 145,439	Restricted funds 2020 £ - - - - - - 160,193 160,193	Total funds 2020 £ 21,247 15,864 56,762 21,652 4,752 25,162 160,193 305,632	Total funds 2019 £ 41,106 20,104 72,027 21,079 8,647 23,487 - 186,450

During the year the School received exceptional government funding as part of the Coronavirus Job Retention Scheme. Funding represents some of the costs of employing certain staff unable to carry out their duties as a result of the coronavirus crisis.

5. School Expenses

Teaching salaries Domestic and grounds staff salaries Housekeeping and provisions Depreciation Amortisation Teaching materials and other school expenses General support costs - staff costs - other	2020 £ 2,873,514 405,096 347,112 333,296 25,000 212,599 360,277 118,372 4,675,266	2019 £ 2,794,664 459,737 407,523 333,040 25,000 288,274 366,926 130,202
		4,805,366

Page 20

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

6. Governance costs

Staff costs Audit fees Professional fees General office expenses	2020 £ 35,632 8,955 20,544 13,152 78,283	2019 £ 31,359 7,237 31,142 12,965
		82,703

10% of general office expenses are allocated to governance. Staff costs are allocated on the basis of estimated time spent, being 9% allocated to governance.

7. Auditors' remuneration

	2020	2019
	£	£
Fees payable to the company's auditor for the audit of the company's
annual accounts	8,955	7,237

8. Staff costs

Wages and salaries Social security costs Contribution to pension schemes	2020 £ 2,968,954 230,969 474,596 3,674,519	2019 £ 3,035,142 216,792 372,749
		3,624,683

Staff costs include a sum of £31,370 in respect of redundancy settlements (2019: nil).

Page 21

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

8. Staff costs (continued)

The average number of persons employed by the company during the year was as follows:

	2020	2019
	No.	No.
Average no. of employees	128	130

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

	2020	2019
	No.	No.
In the band £70,001 - £80,000	1	1
In the band £100,001 - £110,000
	1	1

Company pension contributions in respect of the employee whose earnings were between £70,001 and £80,000 were £22,438 (2019: £16,022). Company pension contributions in respect of the employee whose earnings were between £100,001 and £110,000 were £17,772 (2019: £12,114).

The key management personnel comprise the Headmaster and the Bursar. The total employee remuneration (including employer's national insurance costs) of the key management personnel was £221,035 (2019: £205,339).

Page 22

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

9. Intangible assets Cost At 1 August 2019 At 31 July 2020 Amortisation At 1 August 2019 Charge for the year At 31 July 2020 Net book value At 31 July 2020 At 31 July 2019	Programme Related Investments £ 375,000
	375,000
	200,000 25,000
	225,000
	150,000
	175,000

The School has provided capital funding to The Central Norwich Hockey Consortium (a registered charity). Funding has assisted with the construction of astroturf hockey pitches and associated facilities, which are available for school and community use. The funding is recognised as a programme related investment and stated at cost less amortisation. The investment is being amortised by way of an annual grant to The Central Norwich Hockey Consortium on a straight line basis over 15 years, the period during which the School expects to utilise the facilities.

Page 23

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

10. Tangible fixed assets

Freehold property £ Cost or valuation At 1 August 2019 11,101,994 Additions 40,202 At 31 July 2020 11,142,196 Depreciation At 1 August 2019 3,662,692 Charge for the year 214,920 At 31 July 2020 3,877,612 Net book value At 31 July 2020 7,264,584 At 31 July 2019 7,439,302 Debtors Due within one year Trade debtors Prepayments and accrued income	Motor vehicles £ 215,520 - 215,520 168,578 13,761 182,339 33,181 46,942	Furniture, fittings and equipment Assets in the course of construction £ £ 1,702,561 328,056 84,069 347,310 1,786,630 675,366 1,438,296 - 104,615 - 1,542,911 - 243,719 675,366 264,265 328,056 2020 £ 25,883 87,665 113,548	Total £ 13,348,131 471,581
			13,819,712
			5,269,566 333,296
			5,602,862
			8,216,850
			8,078,565
			2019 £ 47,339 105,579 152,918

11. Debtors

Page 24

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

12. Creditors: Amounts falling due within one year

Bank loans Fee deposits Trade creditors Other taxation and social security Fees in advance Other creditors Accruals and deferred income	2020 £ 50,000 21,600 71,498 62,916 681,947 81,839 105,241 1,075,041	2019 £ 50,000 20,700 122,805 63,784 640,293 46,138 192,865
		1,136,585

13. Creditors: Amounts falling due after more than one year

Bank loans Fee deposits	2020 £ 737,500 137,139 874,639	2019 £ 787,500 158,435
		945,935

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Bank loans Amount due in less than one year Amount due within one to two years Amount due within two to five years Amount due over 5 years	2020 £ 50,000 50,000 150,000 537,500 787,500	2019 £ 50,000 50,000 150,000 587,500
		837,500

The bank loan is secured by a legal charge over the property at 14 Ipswich Road, Norwich. The loan carries interest at a rate of 2.3% over the bank base rate and is repayable by quarterly repayments of £12,500 with a bullet repayment of £512,500 at maturity on 13 April 2026.

Page 25

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

14. Statement of funds

Statement of funds - current year

Balance at 1 August 2019 £ Unrestricted funds Designated funds Designated Funds 84,263 General funds Unrestricted funds 7,353,290 Total Unrestricted funds 7,437,553	Income £ - 5,408,350 5,408,350	Expenditure £ - (5,021,913) (5,021,913)	Transfers in/out £ Balance at 31 July 2020 £ - 84,263 160,193 7,899,920 160,193 7,984,183	Transfers in/out £ Balance at 31 July 2020 £ - 84,263 160,193 7,899,920 160,193 7,984,183
				7,899,920
				7,984,183

Following a receipt of a donation of £84,263 in 2013 the Govenors decided to designate these funds to specific projects in the future in the name of the Timothy Alston Foundation. There have been no movements in this fund since receipt.

Restricted funds

Restricted funds
Government grants Total of funds	- 7,437,553	160,193 5,568,543	- (5,021,913)	(160,193) -	-
					7,984,183

The transfer between unrestricted and restricted funds reflects the CJRS government grant being applied to fund the costs of furloughed staff.

Page 26

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

14. Statement of funds (continued) Statement of funds - prior year Unrestricted funds Designated funds Designated Funds General funds Unrestricted funds Total Unrestricted funds	Balance at 1 August 2018 £ 84,263 6,997,819 7,082,082	Income £ - 5,645,084 5,645,084	Expenditure £ - (5,289,613) (5,289,613)	Balance at 31 July 2019 £ 84,263 7,353,290 7,437,553

15. Analysis of net assets between funds Analysis of net assets between funds - current period

Unrestricted funds 2020 £ Tangible fixed assets 8,216,850 Intangible fixed assets 150,000 Current assets 1,567,013 Creditors due within one year (1,075,041) Creditors due in more than one year (874,639) Total 7,984,183	Total funds 2020 £ 8,216,850 150,000 1,567,013 (1,075,041) (874,639) 7,984,183

Page 27

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

15. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior period

Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total	Unrestricted funds 2019 £ 8,078,565 175,000 1,266,508 (1,136,585) (945,935) 7,437,553	Total funds 2019 £ 8,078,565 175,000 1,266,508 (1,136,585) (945,935) 7,437,553

16. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges Amortisation charges Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash provided by operating activities 17. Analysis of cash and cash equivalents Cash at bank and in hand Total cash and cash equivalents	2020 £ 546,630 333,296 25,000 39,370 (82,840) 861,456 2020 £ 1,453,465 1,453,465	2019 £ 355,471 333,040 25,000 (41,177) 227,113 899,447 2019 £ 1,113,590 1,113,590

Page 28

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

18. Analysis of changes in net debt

Cash at bank and in hand Debt due within 1 year Debt due after 1 year	At 1 August 2019 £ 1,113,590 (50,000) (787,500) 276,090	Cash flows £ 339,875 50,000 - 389,875	Other non- cash changes £ - (50,000) 50,000 -	At 31 July 2020 £ 1,453,465 (50,000) (737,500) 665,965

19. Capital commitments

	2020	2019
	£	£
Contracted for but not provided in these financial statements
Acquisition of tangible fixed assets	-	188,000

20. Pension commitments

The School participates in the Teachers' Pension Scheme ("the TPS") for teaching staff. The pension charge for the year includes contributions payable to the TPS of £335,256 (2019: £276,958) and at the year-end £Nil (2019: £44,029) was accrued in respect of contributions to this scheme. The amounts outstanding at the end of the year are £331 (2019: £331) to the non-teaching staff defined contribution scheme.

The latest actuarial valuation of the TPS related to the period ended 31 March 2016.

Teachers' Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, unfunded, defined benefit scheme, governed by the Teachers' Pensions Regulations 2010, and the Teachers’ Pension Scheme Regulations 2014. These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

Valuation of the Teachers' Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of

Page 29

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

20. Pension commitments (continued)

benefits and many other factors.

The previous actuarial valuation was carried out as at 31 March 2012 and determined the contributions for the period, which were paid at a rate of 16.48%. This rate has been paid since September 2015.

The latest valuation of the Teachers’ Pension Scheme has now taken place, in line with directions issued by HM Treasury and using membership data as at 31 March 2016. As a result of this valuation TPS employers will pay an increased contribution rate of 23.68% from September 2019 (this includes the administration levy of 0.8%).

A copy of the latest valuation report can be found on the Teachers’ Pension Scheme website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The School has accounted for its contributions to the scheme as if it were a defined contribution scheme.

Scheme changes

The arrangements for a reformed Teachers’ Pension Scheme, in line with the recommendations made by Lord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, were implemented from 1 April 2015.

In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, have rejected the Government’s application for permission to appeal the Court of Appeal’s ruling. The case will now be referred to an Employment Tribunal for a decision regarding the remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination.

HM Treasury are clear that the ruling has implications for the other public service schemes, including the Teachers’ Pension Scheme. Those implications are currently being considered and any impact on scheme costs is expected to be looked at within the next scheme valuation, which is currently scheduled to be based on April 2020 data and implemented in April 2023.

Page 30

TOWN CLOSE HOUSE EDUCATIONAL TRUST LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

21. Operating lease commitments

At 31 July 2020 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Operating leases which expire Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years	2020 £ 15,864 41,081 123,875 180,820	2019 £ 27,951 37,594 131,875
		197,420

22. Related party transactions

Five trustees (2019: 9) had expenses totalling £1,008 (2019: £1,352) reimbursed by the School in relation to travel expenses. During the year, no Trustees received any remuneration or other benefits (2019 - £nil).

Dr R Carroll is the wife of Dr S M Carroll (governor - resigned on 24/03/2020) who is engaged as the School doctor and was paid £4,400 (2019: £5,000) in the year.

The Company is a founding co-member of the Central Norwich Hockey Consortium Limited, a registered charity. The School's funding is recognised as a programme related investment. The School hires the hockey pitch operated by the consortium and during the year fees totalling £7,500 (2019: £6,287) were payable. The School currently expects to use the facilities for a period of 15 years and is amortising the original investment by way of annual grant to the consortium. A grant of £25,000 was made to the consortium in the year (2019: £25,000).

Page 31