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2020-07-31-accounts

1 5 5 3 ri % • B Jewell Iloyal Hospi Ileport and Financial Statements for the year ending 31 July 2020

Bridewell Royal Hospital This page is intentionally left blank

Bridewell Royal Hospital

Contents

Page
Report of the Court 4 - 18
Independent Auditor's Report 19 - 21
Consolidated Statement of Financial Activities 22
Consolidated & Charity Balance Sheet 23
Consolidated Cash Flow Statement 24
Notes to the Consolidated Cash Flow Statement 25
Statement of Accounting Policies 26 - 29
Notes to the Accounts 30 - 41

3

Bridewell Royal Hospital

Report of the Court

Key Information

Financial Results
Total Income
Total Expenditure
(Losses)/Gains on Investments
Net (Expenditure)/Income		 Year Ended
31/07/20
£000s
12,264
12,768
(802)
(1,306)		 Year Ended
31/07/19
£000s
13,887
13,680
331
538		 %
**Change **
(12)
(7)
nm
Operating (Deficit)/Surplus
Core School Activities Operating (Deficit)/Surplus
School Activities Special Projects
Other Charitable Activities		 (504)
(622)
(316)
434
(504)		 207
42
(77)
242
207		 nm
nm
nm
nm
Endowed Funds
Restricted Funds
Unrestricted Funds
Group Information
Number of pupils
% of Boarders
Number of bursary pupils
Average bursary		 15,429
3,629
14,842
Average
2019/20
592
28%
52
£21,700		 16,040
3,806
15,360
Average
2018/19
612
34%
74
£23,500		 (4)
(5)
(3)
%
**Change **
(3)
(18)
(30)
(8)

nm – not meaningful

4

Bridewell Royal Hospital

Report of the Court (Continued)

The Court, the trustee body of Bridewell Royal Hospital which incorporates King Edward’s School Witley and Barrow Hills School, presents its report and audited financial statements for the year ended 31 July 2020.

Bridewell Royal Hospital was established by King Edward VI by Royal Charter of Letters Patent dated 26 June 1553. The Royal Charter of Letters Patent has been amended during subsequent years. The present Constitution is the Scheme made by the Charity Commissioners in November 1988 as amended by Resolutions of the Bridewell Court passed in March 2013 and March 2015. Bridewell Royal Hospital is presided over by HRH The Duchess of Gloucester and is registered with the Charity Commission under registered charity number 311997.

Goals and Objectives

The objects of Bridewell Royal Hospital (the Foundation), laid down in the 1988 scheme, and as amended in 2013 and 2015, are the advancement of education, currently met by providing boarding and day schooling for girls and boys aged 2 to 18 and the provision of bursaries, scholarships and other educational benefits. In particular, the Foundation, as part of its commitment to public benefit, provides financial support primarily for children whose home circumstances make boarding education beneficial. In addition to the endowed funds of the Foundation, there are restricted funds held for special purposes, such as the development of facilities, bursaries, prizes and other educational purposes.

King Edward’s School Witley

King Edward’s vision: The School was founded in 1553 as “a House to lodge Christ in”. King Edward’s School Witley (King Edward’s) provides an environment which nurtures children to achieve success in their chosen fields; to become happy, confident, independent learners; to become fulfilled, active, decent people of integrity, with global awareness, wisdom, humility and a sense of duty; and to be aware of how they have become so.

The aims of King Edward’s are:

5

Bridewell Royal Hospital

Report of the Court (Continued)

Barrow Hills School

Barrow Hills is an independent Christian co-educational school welcoming all and enabling each child to develop their ethical, spiritual and moral values. The School seeks to inspire a love of learning and to encourage all to fulfil their aspirations and potential within an atmosphere of mutual respect and compassion. It encourages a strong sense of all belonging to one family; in the school, in the community and in the wider world.

Pupil Profile: At Barrow Hills children are encouraged to be:

The aims of Barrow Hills are:

These objectives are carried forward while maintaining the affordability of an excellent preparatory education, benefiting from economies of scale without compromising the ‘family feel’ that permeates both Schools. The Schools share resources including sports, performing arts, extra-curricular and boarding opportunities whilst continuing to meet operational objectives and maintain efficient processes throughout the organisation.

The Charity achieves its objects through the operation of King Edward’s, a thriving co-educational boarding and day senior school, and Barrow Hills, an excellent preparatory, co-educational, day school nearby. The aims and objects of both Schools are inherently charitable in the provision of education to girls and boys; additionally, the founding mission of the Charity finds expression today in the provision of bursary supported boarding education to children who need it within the environment of a mainstream independent school for local and international children seeking an excellent all-round education. Furthermore, every effort is made to provide access to facilities and activities to those otherwise unable to afford them.

6

Bridewell Royal Hospital

Report of the Court (Continued)

In the past year King Edward’s has been home to some 400 children from 42 countries. 52 pupils, from low income families or from home circumstances where a boarding education was deemed beneficial or necessary, were provided a means-tested bursary. 71% of these received fee support of between 81-100%. Barrow Hills has educated some 200 pupils aged 2-13.

In pursuit of its aims the Court and School Governors agree management objectives annually for both Schools. For 2019/20 these were:

High academic standards were achieved in both Schools, with King Edward’s achieving many individual successes at IB and its best results ever at GCSE and A-level. Virtually all candidates secured places at a university of their choice. At Barrow Hills a third of the leavers were awarded scholarships to a range of public schools, including King Edward’s. All 13+ leavers obtained places at their chosen senior schools.

During the year pupils from both Schools have benefited from closer links, including the sharing of facilities, shared events and workshops and specialist teaching. Administrative and organisational improvements have been made across both Schools in areas such as facilities management, human resources, finance and procurement, producing significant economies of scale.

COVID-19

During the summer term, following the UK Government nationally imposed lockdown, both Schools were able to respond quickly by offering a comprehensive remote teaching and learning programme together with the provision of online resources. Pupils at Barrow Hills School were able to use ‘tablets’ provided by the School to facilitate studying from home. Both Schools remained open to a small number of key worker children and bursary pupils including, for some, during the traditional school holiday periods. In addition, in the second half of the summer term, both schools welcomed back small groups of pupils in line with Government guidelines.

7

Bridewell Royal Hospital

Report of the Court (Continued)

Public Benefit

The Schools’ objectives and activities are inherently charitable and every effort is made to ensure that the Schools provide public benefit to those who would otherwise be unable to attend them.

Due consideration has been given to the Charity Commission’s published Guidance on Public Benefit.

Both Schools’ commitment to the wider community and to providing access to facilities and activities to those who would otherwise be unable to afford them continues. King Edward’s has continued to provide regular teaching and support to children from local schools including Science, Maths, Modern Languages, Theatre and Music workshops. Pupils have been providing maths support and enrichment for Gifted and Talented children at Busbridge School and St Mary’s School, Chiddingfold, and pastoral and social support at St Dominic’s School, Hambledon. Barrow Hills has hosted football tournaments, cross-country races and an athletics pentathlon for over 200 children from local schools and some 140 children per week have attended swimming classes at King Edward’s 25m indoor swimming pool. Money has been raised at King Edward’s for our twinned class at Lawson High School in Kenya, CALM, the David School in Sierra Leone and the New Destiny Orphanage in Cameroon among others and at Barrow Hills for UK charities including Parkinson’s UK and Change 1’s Life.

Fundraising and Grantmaking

The Charity aims to generate additional funds by means of voluntary fundraising and investment of endowed and restricted funds so as to further its Charitable objects. The Court sets targets each year in respect of the performance of invested funds and also budgets in respect of voluntary fundraising activity.

In the 2019/20 year voluntary fundraising activity included raising funds for bursary provision as well as work with individuals and trusts and an ongoing Legacy Campaign. Donors are encouraged by means of regular stewardship events, including events for those who have pledged legacies to the Foundation and those who have given annually. The Development and Alumni office control all fundraising activities and subscribe to the Institute of Development Professionals in Education guidelines, which encompass all regulations surrounding fundraising as outlined in the Fundraising Preference Service and Information Commissioner Guidelines.

The Charity did not use a professional fundraiser or commercial participator and did not receive any complaints regarding its fundraising activities. The Charity ensures it protects the public from behaviour which is an unreasonable intrusion on a person’s privacy, is unreasonably persistent or places undue pressure on a person to give money or other property by following Ethical Fundraising Guidelines set by the Institute of Development Professionals in Education.

The policy of the Foundation is to offer bursaries, in particular to support children whose circumstances would make a boarding education beneficial, including those from disadvantaged or vulnerable backgrounds. The offer of bursaries is subject to means testing and assessment of boarding need and ability to benefit; guidance is also offered to help candidates seeking additional financial support from other charities that work closely with King Edward’s.

8

Bridewell Royal Hospital

Report of the Court (Continued)

Summary Financial Information

Abridged Financial Information For Year Ended 31 July 2020

Other Charitable Other Charitable Other Charitable
School Activities Activities Total Total
£000s
2020		 £000s
2019		 £000s
2020		 £000s
2019		 £000s
2020		 £000s
2019
Income
School Fees 10,496 12,008 - - 10,496 12,008
Donations and Grants 264 - 147 360 411 360
Investment income - - 750 740 750 740
Bank interest 37 53 - - 37 53
Ancillary trading
(other Educational Income)		 286
284		 281
445		 -
-		 - 286 281
Non-Ancillary trading
(Lettings and other)		 - 284 445
Total Incoming Resources 11,367 12,787 897 1,100 12,264 13,887
Expenditure
Teaching (6,278) (6,568) - - (6,278) (6,568)
Welfare (465) (526) - - (465) (526)
Catering (917) (1,191) - - (917) (1,191)
Premises (2,994) (2,943) - - (2,994) (2,943)
Administration (1,566) (1,483) (38) (33) (1,604) (1,516)
Fundraising - - (110) (157) (110) (157)
Other (Lettings and other) (85) (111) (28) (52) (113) (163)
Bursaries - - (287) (616) (287) (616)
Total Expenditure (12,305) (12,822) (463) (858) (12,768) (13,680)
Net (outgoing) / incoming
funds from Operations
before transfers and
investment gains		 (938) (35) 434 242 (504) 207

Income from School Activities is considered to be all income other than donations and income from investments held in restricted and endowed funds and the School bursary fund, and expenditure from School Activities is all expenditure other than bursaries, fundraising costs and administration expenses specifically related to the endowed funds.

9

Bridewell Royal Hospital

Report of the Court (Continued)

Financial Review

The operating (deficit)/surplus was (£504k) (2019: £207k).

The aggregate Fund balances decreased to £33,900k (2019: £35,206k).

Group Activities

The Group’s income from School activities reduced to £11,367k (2019: £12,787k). Pupil numbers were 592 (2019: 612), boarding pupils of 168 (2019: 206) and day pupils of 424 (2019: 406). Total fees were £10,496k (2019: £12,008).

Group expenditure on School Activities was £12,305k (2019: £12,822k).

Analysis of Expenditure

----- Start of picture text -----
14,000
111
85
12,000 1,483
1,566
10,000
2,943
2,994
8,000
1,717
1,382
6,000
4,000
6,568
6,278
2,000
0
2020 2019
£ 000's
----- End of picture text -----

----- Start of picture text -----
Other
Administration
Premises
Welfare & Catering
Teaching
----- End of picture text -----

10

Bridewell Royal Hospital

Report of the Court (Continued)

Charitable Activities

The Charity is responding to a changing market and widening the pastoral care provided to its bursary pupils. During the summer term, when the School site was largely closed due to COVID-19, King Edward’s was able to accommodate several bursary pupils whose education and wellbeing were supported at School.

Means-tested public benefit and bursary support provided by the Foundation was £287k (2019: £616k). In addition, support from the City of London and major educational charities, in particular, Royal National Children’s Springboard Foundation, the Reedham Trust, the Mitchell City of London Educational Foundation, the Emmott Foundation, Buttle UK, Sir John Cass’s Foundation, The Heights Educational Bursary Trust, the BMTA Trust and the Thornton Smith Plevins Trust provided a further £843k (2019: £1,118k) of bursary funding. The Court and pupils are extremely grateful to these organisations for their ongoing support along with the many Old Witleians and Bridewell Fellows who donate generously.

Distribution of Bursary Awards

As part of the Foundation’s commitment to provide public benefit, means tested bursaries were distributed to 52 pupils (2019: 74), with an average bursary of £21,700 (2019: £23,500). 71% (2019: 65%) of these pupils received awards of between 81-100% of fees. In addition, the cost of School uniform and materials provided to all pupils is included within fees. Bursary awards are distributed broadly across the forms and the vast majority are awarded to boarding pupils from the United Kingdom. In addition to bursaries, 55 pupils were in receipt of scholarships (2019: 49) across the full range of academic, arts, music and sports.

Future Plans

The Charity appointed new Heads at both Schools in September 2019. In addition to the continued focus on the educational and pastoral enhancements for pupils, the intention is to invest further in the school buildings and facilities which in 2019/20 included new cricket nets, refurbishing the tennis courts surface, enhancements to the sports hall complex, relining the swimming pool, substantial classroom refurbishments and a major upgrade of the Upper Gurdon’s playing fields. A Governor Working Group has been meeting, together with the Heads, to produce a new 10 year Strategic Plan covering the academic curriculum, teaching and learning in and beyond the classroom, re-purposing buildings, future bursary provision and further development of the Charity in order that its objectives continue to be delivered in a manner fully relevant to the 21st century.

11

Bridewell Royal Hospital

Report of the Court (Continued)

Investment Performance

For the year to 31 July 2020 the achieved total return on the Endowed Fund was -0.39% (2019: 4.81%).

Whilst the Endowed Fund achieved a negative return in 19/20, the Court considers this to be a short-term impact of market conditions relating to the COVID-19 pandemic and that the long term aim of maintaining the real value of the Endowed Fund while increasing the amount of total return applied to fund bursaries will still be met.

Policies

Investment Policy

From 1 August 2007, the Governors have managed all their investments on a total return basis, adopting an investment policy of “preserving the real value of the endowment held in investments, whilst maximising the amount available to meet the needs of each generation of beneficiaries”.

In seeking a balance between the interests of current and future beneficiaries the Governors consider, with their Investment Advisers, the appropriate balance between the proportion of the total return that should be applied as income and the proportion that should be retained and accumulated within the Endowed Fund. Governors are conscious that a relatively stable pattern of application is important in allowing the Schools to make sustainable bursary awards, so while the application has been approved each year, this has been determined within a policy set and reviewed every three years. The most recent review was conducted in 2019 and it was agreed that the application for 2019/20 would be 3.25% of the average value of the Endowed Fund over the twelve quarters to 31 December 2018, with the application for the subsequent two years being, subject to circumstances, based on the average value to 31 December 2019 and 2020. The income received by the school in cash from the Endowed Fund in 2019/20 was £91k higher than the figure calculated using this formula and it was decided that in the current exceptional, Covid related circumstances the application to income for the year would be increased to the income actually received.

Reserves and Liquidity Policy

The Court’s policy on Reserves is to maintain sufficient current assets and cash deposits in the General Fund to mitigate the risks to income from unforeseen sources: the provision of sufficient resources to carry out planned repairs and improvements; and to provide a contingency for unanticipated and uninsured estates expenditure. As at 31 July 2020 unrestricted reserves were represented by net current assets and cash deposits of £2,365k (2019: £2,614k) including cash in the Designated School Bursary Fund of £851k (2019: £761k), less final term deposits due after more than one year of £858k (2019: £784k). The Governors consider that sufficient current assets and cash deposits are maintained to mitigate the above mentioned risks. In addition, the Court seeks to ensure that there are sufficient liquid funds so that the operations of the Schools may continue for at least twelve months.

The Court and the Sub-Committees review the financial and other operating aspects of both Schools on a termly basis, enabling the principal risks and uncertainties facing the Charity to be monitored. These aspects, as identified by both the Governors and key management personnel, are further reviewed on an annual basis by the Court through a formal business risk assessment process with interim reviews by the Finance & General Purposes sub-committee. Each Autumn, the Governors have an additional meeting to discuss business strategy.

12

Bridewell Royal Hospital

Report of the Court (Continued)

Impact of COVID-19

Following the national lockdown due to the Coronavirus pandemic, the Schools discounted the summer term fees to reflect no boarding provision, the change to remote learning and to assist parents at this difficult time. To provide certainty to parents the 2020/21 school fees were frozen at 2019/20 levels. The impact of the summer term discount was a £1.4m reduction in income. To mitigate this loss, and to protect jobs at both schools, the Group participated in the UK Government’s Coronavirus job retention scheme, receiving £264k of grant income. Other savings were made in catering, transport and utilities amounting to circa. £400k. Whilst uncertain, the Charity does not believe that the impact of the COVD-19 virus will have a long-term material adverse effect on its financial condition or liquidity.

The Court is satisfied that there are systems in place to mitigate adequately the major risks to which the Foundation is exposed. The principal risks together with the key controls include:

Risk Categories Current Principal Risks
and Uncertainties		 Key Controls
Objectives &
Mission		 - Reviewed by Court
Charity, Law &
Regulation		 None beyond sector wide
challenges		 Reviewed by Court and Sub-Committees
Governance &
Management		 Governance and management
split across two Schools		 Bridewell Court directly governs both Schools
since September 2016
External Influences Sector wide challenges
including Brexit		 Specific post-Brexit strategy formed part of the
Court’s agenda
Operational
Processes		 Asset protection Established authorities, procedures and limits
Pupil recruitment Pupil recruitment and retention Monthly data monitored
Technological Sector wide reliance on
technological systems		 Reviewed by Education & ICT Sub-Committee
Academic - Reviewed by Education & ICT Sub-Committee and
Court
Pastoral - Safeguarding Policy, Central DBS Register and
Child Protection
Financial Ensuring financial commitments
aligned annually with
anticipated fee income		 Financial Planning and Budgeting overseen by
Finance & General Purposes Sub-Committee and
Court with Interim Monthly Key Data reports.
Long-term bursary support Investment in Development Fundraising with
Governor Sub-Committee oversight
Privacy - Data Protection Policy
Environmental,
Health & Safety		 - Monitored by Health & Safety Sub-Committee

13

Bridewell Royal Hospital

Report of the Court (Continued)

Structure & Governance

The structure, governance and operation of Bridewell Royal Hospital is in accordance with the 1988 Constitution as amended in March 2013 by appropriate Resolutions of the Court under section 280 of the Charities Act 2011. The Constitution was amended by further Resolutions of the Court in 2015 to facilitate the merger of King Edward’s with Barrow Hills and to provide an appropriate governance structure for the future management of the Schools, while maintaining throughout the close ties with the Corporation of London. In May 2019 the Court undertook a review of the Constitution to ensure that certain aspects fit with more general legal requirements, with a particular focus on employment and safeguarding issues. Some of these amendments are currently being discussed with the Charity Commission prior to being formally adopted.

Organisational Management

The Court as the direct Governing Body of the Schools, meets at least once each term, usually chaired by the Treasurer on behalf of the Vice-President.

The Constitution includes Articles of Government for each School which include:

Management of the Foundation’s Endowed Fund is delegated under the terms of the Constitution to the Estates Governors’ Committee. Subject to reporting all actions and proceedings to the Court, the Committee is empowered to appoint Investment Advisers, set investment policy and monitor results. The Committee meets twice each year, receiving written and verbal reports from the appointed Investment Advisers. On behalf of the Committee the Investment Accountant maintains regular communication with the Investment Advisers, reviewing investment activity and monthly valuations, bringing any significant matters to the attention of the Committee.

In addition to receiving the report of the Estates Governors Committee, the Court receives reports from the sub-committees: Finance & General Purposes; Education & ICT, and Health and Safety. Each School Management Group presents strategic, operational and academic matters to these sub-committees, together with reporting progress against Annual Objectives, all of which are then subsequently presented to the Court for approval. In addition, selected governors oversee Health & Safety, Governor Induction & Training, Staff Liaison, Learning Support and Child Safeguarding.

14

Bridewell Royal Hospital

Report of the Court (Continued)

The Finance and General Purpose Sub-Committee each year makes recommendations to the Court in respect of the pay and remuneration of the officers and key management personnel. In doing so, regard is had to the performance of the Schools and the individuals together with sector comparatives (published by the professional bodies in the sector).

Group Structure and Relationships

Bridewell Royal Hospital comprises two trading schools, King Edward’s School Witley and Barrow Hills School, along with a wholly owned non-charitable subsidiary, KES Enterprise Limited.

KES Enterprise Limited, which was incorporated on 2 February 2004, provides special educational needs and other services and facilities to the Schools and other educational bodies that occupy the Schools’ premises on a temporary basis. The financial results are consolidated in these accounts.

By reason of its foundation and governance, the Foundation has a significant and special relationship with the City of London, a major benefactor and supporter of the Foundation since 1553. It promotes relationships with the Corporation and the Inner London Boroughs to reflect their historical connection with the Foundation, as well as to direct bursarial support to children in need of boarding education from these Boroughs. The Foundation works closely with other educational grant-making charities to enhance the funds available to provide bursaries for children in need of a boarding education.

The Schools have positive links with the local community, including work experience, community service and an annual arts programme that serves the local community and attracts many visitors, including school visits.

Recruitment and Training of Governors

The Nominations Committee recommends candidates for appointment to the Court. The Corporation of the City of London appoints up to 12 Governors, currently 5 Aldermen and 3 members of Common Council. Between 8 and 18 Co-Opted Governors are appointed by the Court. New Governors are introduced to the workings of the Charity by the Treasurer and the Clerk, and to the Schools through the Heads and Director of Finance. Governors are encouraged to attend relevant courses from BSA / AGBIS and other bodies.

15

Bridewell Royal Hospital

Report of the Court (Continued)

The Court

The Court The Court
President: HRH The Duchess of Gloucester GCVO
Vice President: Alderman Sir David Wootton MA (Cantab) Retired October 2020
Alderman Sir Peter Estlin BSc FCA _From October 2020_1) 2)
Treasurer & Chair of Governors: Mrs J S Voisin BA Hons (Oxon) 1) 2) 3) a+b 4) a+b
Co Mr D J D Allen BSc FCA 1) 2)
Co The Venerable Stuart Beake MA (Cantab)
 3) a
Co Mr K I R Bannister BSc (Hons)
From September 2020		 1) 2)
Co Mr R E T Bennett LLB
 1)
Co Employment Judge B G Burgher LLB (Hons) PGDip EC Law
Co Mrs E C Cairncross BA
 2 )
Co Mr M J Chadwick ACA CTAI
 1) 2) 3) a+b
Ald Alderman Sir Peter Estlin BSc FCA
Vice President from October 2020		 1) 2)
Ald Alderman T R Hailes BA (Hons) Hon LLD MStJ JP
 1)
CC Mrs C W Haines BA CertEd DipM
Co Mr A J W Hudson MA (Cantab) PGCE NPQH
Retired December 2019
Ald Alderman A J N King MSc 1)
Co Mrs J Lunnon BA (Hons) 3) a
Ald Alderman N S L Lyons MA (Cantab) 1)
Co Mr C R Marriott MA BEd (Hons) 3) a+b
Co Dr A D Pinkerton PhD FRGS 2) 3) a
Co Mr S H Ravenscroft LLB 2)
CC Deputy R D Regan OBE FCIS 2)
Co Mr G W Rockingham BSc (Hons) MRICS
CC Mr I C N Seaton MBE LLB 1) 2)
Co Mr R A J Stovold 1) 4) a+b
Ald Alderman Estate Governors Committee 1)
CC Common Council Finance & General Purposes sub-committee 2)
Co Co-Opted School Governor Education & ICT sub-committees 3) a KESW; b BHS
Health & Safety sub-committees 4) a KESW; b BHS
As at 20 November 2020
Clerk: Mr A C Lewis BSc MRICS

The Court delegates day-to-day management of the Charity to the following officers and key management personnel; Head – King Edward’s School Witley : Mrs J R Wright BA (Hons) PGCE Head – Barrow Hills School Witley: Mr P J Oldroyd BA PGCE Director of Finance & Administration: Mr A C Lewis BSc MRICS

16

Bridewell Royal Hospital

Report of the Court (Continued)

Administration & Advisers

Principal Offices Bridewell Royal Hospital
King Edward’s School Witley Barrow Hills School
Petworth Road Roke Lane
Wormley Witley
Godalming Godalming
Surrey Surrey
GU8 5SG GU8 5NY
Auditor Menzies LLP
Centrum House
36 Station Road
Egham
Surrey
TW20 9LR
Solicitor Moore Barlow LLP
The Oriel
Sydenham Road
Guildford
Surrey
GU1 3SR
Banker NatWest Group
62/63 Threadneedle Street
London
EC2R 8LA
Investment Advisers Schroder & Co Limited Sanlam Private Wealth South Limited
100 Wood Street Exchange Building
London St John’s Street
EC2V 7ER Chichester
PO19 1UP
Insurance Broker Marsh Brokers Ltd
Education Practice
Capital House
1-5 Perrymount Road
Haywards Heath
West Sussex
RH16 3SY

17

Bridewell Royal Hospital

Report of the Court (Continued)

Statement of the Court’s Responsibilities

Charity law requires the Court to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and the Group and of its financial activities for that year. In preparing those financial statements the Court is required to:

The Court is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and the Group to enable it to ensure that the financial statements comply with the Charities Act 2011 and with Orders from the Charity Commissioners for England and Wales. It is also responsible for safeguarding the assets of the Charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.

In so far as the Court is aware:

Approved by the Court on 25 November 2020 and signed on its behalf by:

J S Voisin

Mrs J S Voisin (Treasurer and Chair of Governors)

18

Bridewell Royal Hospital

Independent Auditor’s Report to the Members of the Court of Bridewell Royal Hospital For Year Ended 31 July 2020

Opinion

We have audited the financial statements of Bridewell Royal Hospital (the 'parent Charity') and its subsidiary (the 'Group') for the year ended 31 July 2020 set out on pages 22 to 41. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statements of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis of opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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.

19

Bridewell Royal Hospital

Independent Auditor’s Report to the Members of the Court of Bridewell Royal Hospital For Year Ended 31 July 2020 (Continued)

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:

Other information

The Members of the Court are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the information and 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

20

Bridewell Royal Hospital

Independent Auditor’s Report to the Members of the Court of Bridewell Royal Hospital For Year Ended 31 July 2020 (Continued)

Responsibilities of Governors

As explained more fully in the Statement of the Court’s responsibilities, the Members of the Court are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the Members of the Court 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 Members of the Court are responsible for assessing the Group's and the parent Charity'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 Members of the Court either intend to liquidate the Group or parent Charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. The description forms part of our Auditor's report.

Use of our report

This report is made solely to the Members of the Court, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Members of the Court those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Members of the Court, as a body, for our audit work, for this report, or for the opinions we have formed.

Menzies LLP

Menzies LLP

Chartered Accountants Statutory Auditor Centrum House 36 Station Road Egham Surrey TW20 9LR Date: 25[th] November 2020

Menzies LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

21

Bridewell Royal Hospital

Consolidated Statement of Financial Activities for the Year Ended 31 July 2020

Notes
Income and endowments from:
Charitable activities
School fees
1
Ancillary trading income
Other trading activities
Non-ancillary trading
income
2
Investments
Investment income
Bank and other interest
Voluntary sources
Grants and donations
3
Total incoming resources
Expenditure on:
Raising funds
Non-ancillary trading
Financing costs
Investment management
Fundraising & development
Charitable activities
Education and grant
making
Total expenditure
4&5
Net (outgoing) / incoming funds
from operations before transfers
and investment returns
(Losses)/Gains on investments
Transfers
12-14
Net (expenditure)/income
Fund balances brought forward
Fund balances carried forward		 Unrestricted
Funds
£000s
10,496
286
284
95
37
282
11,480
85
28
5
110
228
12,220
12,448
(968)
(100)
550
(518)
15,360
14,842		 Restricted
Funds
£000s
-
-
-
81
-
129
210
-
-
8
-
8
288
296
(86)
(91)
-
(177)
3,806
3,629		 Endowed
Funds
£000s
-
-
-
574
-
-
574
-
-
24
-
24
-
24
550
(611)
(550)
(611)
16,040
15,429		 2020
Total
£000s
10,496
286
284
750
37
411
12,264
85
28
37
110
260
12,508
12,768
(504)
(802)
-
(1,306)
35,206
33,900		 2019
Total
£000s
12,008
281
445
740
53
360
13,887
111
4
33
157
305
13,375
13,680
207
331
-
538
34,668
35,206

22

Bridewell Royal Hospital

Consolidated and Charity Balance Sheet as at 31 July 2020

Notes
FIXED ASSETS
Tangible assets
6
Investments
7
CURRENT ASSETS
Stock
Debtors
8
Cash and deposits
CURRENT LIABILITIES
Creditors payable within one year
9
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
LONG-TERM LIABILITIES
Creditors payable after one year
9
NET ASSETS
10
ENDOWED FUNDS
12
RESTRICTED FUNDS
13
UNRESTRICTED FUNDS
14		 Group
2020
£000s
2019
£000s
10,711
10,798
20,737
21,458
31,448
32,256
67
76
650
572
4,819
5,847
5,536
6,495
(2,226)
(2,761)
3,310
3,734
34,758
35,990
(858)
(784)
33,900
35,206
15,429
16,040
3,629
3,806
14,842
15,360
33,900
35,206		 Charity Charity
2020
£000s
10,711
20,737
31,448
67
650
4,819
5,536
(2,226)
3,310
34,758
(858)
33,900
15,429
3,629
14,842
33,900		 2020
£000s
10,711
20,737
31,448
67
755
4,698
5,520
(2,210)
3,310
34,758
(858)
33,900
15,429
3,629
14,842
33,900		 2019
£000s
10,798
21,458
32,256
76
486
5,751
6,313
(2,579)
3,734
35,990
(784)
35,206
16,040
3,806
15,360
35,206

These financial statements were approved by the Governing Body on 25[th] November 2020 and were signed on its behalf by:

Mr D J D Allen Timothy Hailes

23

Bridewell Royal Hospital

The notes on pages 26 to 41 form part of these financial statements.

24

Bridewell Royal Hospital

Consolidated Cash Flow Statement

Note
Cash Outflow from Operating Activities
A
Returns on Investments and Servicing of
Finance
Dividends and Bank Interest
Cash (Outflow)/Inflow
Capital Expenditure and Financial Investment
Payments for Tangible Fixed Assets
Payments to investment fund
Cash Outflow
(Decrease)/Increase in Cash in Period
Net Funds as at 1 August 2019
Net Funds as at 31 July 2020
B		 For the year ended
31 July 2020
£000s
£000s
(1,380)
787
(593)
(354)
(81)
(435)
(1,028)
5,847
4,819		 For the year ended
31 July 2019		 For the year ended
31 July 2019
£000s £000s £000s
(354)
(81)		 (377)
(87)		 (120)
793
673
(464)
209
5,638
5,847

25

Bridewell Royal Hospital

Notes to the Consolidated Cash Flow Statement

Note A Reconciliation of Net (Outgoing)/Incoming Resources to
Operating Cash Flow
Net (Outgoing)/Incoming Resources
Investment Income
Bank and other Interest
Depreciation
Decrease/(Increase) in Stocks
(Increase)/Decrease in Debtors
Decrease in Creditors
Cash Outflow from Operating Activities		 2020
£000s
(504)

(750)
(37)
441
9
(78)
(461)
(1,380)		 2019
£000s
207
(740)
(53)
467
(22)
171
(150)
(120)
**Note B ** Analysis of Net Funds
31 July Cash 31 July Cash 31 July
**2020 ** **Flow ** **2019 ** **Flow ** 2018
**£000s ** **£000s ** **£000s ** **£000s ** £000s
Cash 4,819 (1,028) 5,847 209 5,638

26

Bridewell Royal Hospital

Statement of Accounting Policies for the Year Ended 31 July 2020

Basis of preparation of the financial statements

Bridewell Royal Hospital is a registered charity established by Royal Charter of Letters Patent dated 26 June 1553. The address of the registered office is disclosed on the administration and advisors page.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value except for investments which are recognised at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and Charities Act 2011.

Bridewell Royal Hospital constitutes a public benefit entity as defined by FRS 102.

The Statement of Financial Activities and Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking KES Enterprise Limited. The results of the subsidiary are consolidated on a line by line basis.

The functional currency of the Group is deemed to be pounds sterling. This is because that is the primary currency of the economic environment in which the Group operates.

Fees and Similar Income

Fees receivable, grants and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions allowed by the Schools, but include contributions received for bursaries from restricted and endowed funds and from the School Bursary Fund.

Bridewell Bursaries

Bursaries provided by Bridewell Royal Hospital are recognised within the financial period in which they are utilised to fund the payment of School fees.

Investment Income

Income from investments is included in the Statement of Financial Activities on a receivable basis, with dividends being recognised in the accounting period in which they are declared.

Grant Income

Government grants are recognised in the statement of financial activities over the periods in which the Charity recognises expenses for the related costs for which the grants are intended to compensate.

27

Bridewell Royal Hospital

Statement of Accounting Policies for the year ended 31 July 2020

Going Concern

As reported in the Report of the Court on page 13, following the national lockdown due to the Coronavirus pandemic, the Schools discounted the summer term fees to reflect no boarding provision, the change to remote learning and to assist parents at this difficult time. To provide certainty to parents the 2020/21 school fees were frozen at 2019/20 levels. The impact of the summer term discount was a £1.4m reduction in income. To mitigate this loss, and to protect jobs at both Schools, the Group participated in the UK Government’s Coronavirus job retention scheme, receiving £264k of grant income. Other savings were made in catering, transport and utilities amounting to circa. £400k. Whilst uncertain, the Court does not believe that the impact of the COVD-19 virus will have a long-term material adverse effect on its financial condition or liquidity. The Court has reviewed the level of funding available to the Group together with the expected demand for school places and future cash flow projections. The Court expect that the Group will have adequate resources to continue its activities for a period in excess of 12 months from the date these accounts were signed. The Court is not aware of any material uncertainties over the Group’s continuing viability.

Accounting judgements and key sources of estimation uncertainty

The Members of the Court are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities within the Group. These are based on historical experience and other factors that are deemed to be relevant. These estimates and assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised and if applicable in future periods. At 31 July 2020, the Court deemed that the main area of judgement for the Group concerns the depreciation and capitalisation policies adopted with regards fixed assets, but do not deem that changes to these policies result in a material misstatement to the figures.

Resources Expended

Expenditure is accounted for on an accruals basis. Overhead and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount 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 to which it relates.

Governance costs comprise the costs of running the Charity, including strategic planning for its future development, internal and external audit, any legal advice relating to the Charity, and all the costs of complying with constitutional and statutory requirements, such as the costs of Committee meetings and of preparing statutory accounts and satisfying public accountability.

Pension Schemes

King Edward’s and Barrow Hills contribute to the Teachers' Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised by the Scheme Administrator. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the Charity. In accordance with FRS102 the scheme is accounted for as a defined contribution scheme. The Schools also contributed to individual personal pension schemes for non-teaching staff at varying rates. Contributions to schemes are charged as they become payable in accordance with the rules of the schemes.

28

Bridewell Royal Hospital

Statement of Accounting Policies for the year ended 31 July 2020

Transfers of Funds

Transfers of funds from endowed and restricted funds to unrestricted funds are subject to the approval of the Governors and must comply with the Charity Commission requirements, with any such transfers being disclosed in the notes to the accounts.

School Buildings and Equipment

Capitalisation

Although King Edward’s was established on its present site in 1867, the cost of the freehold land and buildings is based on costs incurred since 1948. It does not include the 100 acres of freehold land and other buildings that have been in use since 1867. Barrow Hills was established in 1950. Its freehold land and buildings were transferred to King Edward’s School Witley at net book value on 1 September 2015.

Items costing less than £10,000 are written off as an expense as acquired.

Depreciation

The Governors believe that the freehold buildings will, with regular maintenance, continue to meet the needs of the Schools for the foreseeable future.

Depreciation is provided, on a straight line basis, to write off the excess of cost over estimated residual value utilising the estimated useful lives of the assets, which are as follows:

Main School Building - not depreciated Freehold Buildings - 50 years Equipment and Fittings - 3 to 15 years Motor Vehicles - 5 years

Investments

Fixed asset investments in quoted shares, traded bonds and similar investments are measured initially at cost and subsequently at fair value (their market value) at the reporting date. Realised and unrealised gains and losses are credited to the Statement of Financial Activities.

Total Return Accounting

The Charity Commission made an Order on 14 August 2007 permitting Bridewell Royal Hospital to adopt the use of a Total Return approach in relation to its Endowed Funds. This power permits the Governors to invest the Endowed Funds with a view to maximising the total return and to make available an appropriate portion of the total return to fund expenditure each year.

The value of the ‘Original Gift’ was determined as £3,838,768, this being the value of the invested assets at 31 March 1979 plus the amount then outstanding under a Recoupment Order together with subsequent donations. £63,106 was transferred into the Endowed Fund upon the merger with The Royal Asylum of St Ann’s Society.

Cash

Cash deposits which are intended to be held as part of the investment portfolio for more than one year from the reporting date are classified as Fixed Asset Investments. Cash and cash deposits which are held to manage the working capital requirements of the Group are recognised in the asset class which best reflects their intended use.

29

Bridewell Royal Hospital

Statement of Accounting Policies for the year ended 31 July 2020

Stock

Stock is stated at the lower of cost and net realisable value.

Taxation

Bridewell Royal Hospital is a registered charity and pays no tax on surpluses generated from its charitable activities. Income tax recoverable on investment income, covenants and income received under the Gift Aid Scheme is included in the revenue account of the accounting period in which the income is receivable.

Donations

Donations receivable are credited to the General unrestricted fund unless the donor directs otherwise.

Legacies are accounted for when there has been grant of probate, executors have established that there are sufficient net assets in the estate to pay the legacy and any conditions attached to the legacy are either within the control of the Charity or have been met.

Assets from other charities

In accordance with current practice in the Not For Profit sector, where assets are transferred from another charity they are accounted for at fair value through the Statement of Financial Activities.

30

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020

1.
Fees Receivable
Gross Fees
Awards, Discounts and Introduction Fees		 2020
£000s
11,340
(844)
10,496		 2019
£000s
12,942
(934)
12,008

Means-tested Support :

Included in the above gross fees is bursarial funding, significant grants and support from:

No. of
Pupils
Endowed Funds
Restricted Funds
School Bursary Fund
City of London Bursaries
Charitable Organisations
Total
52
2.
Non-ancillary trading income - Unrestricted
Lettings
Staff accommodation
Other
3. Grants and donations
Unrestricted
Grant Income
Miscellaneous
Restricted
The Annual Giving Fund
The Bridewell Fellowship Fund
Old Witleians’ Scholarship Fund
Miscellaneous
Total		 2020
£000s
No. of
Pupils


74
2020
£000s
264
18
282
52
71
2
4
129
411		 2019
£000s
-
287
-		 428
188
-
287
425
418		 616
432
686
1,130 1,734
2020
£000s		 2019
£000s
109
157
18		 268
156
21
284 445
2019
£000s
-
82
82
76
173
1
28
278
360

31

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

Grant Income

Funds were received during the year under the Government’s Coronavirus job retention scheme. There were no unfulfilled conditions or other contingencies attaching to the grant. No other form of government assistance was received during the year.

4. Expenditure
Auditor's Remuneration
Audit
Other Services
Operating lease expenditure
Staff Emoluments
Gross Emoluments
Benefits in Kind
Employer's National Insurance Contribution
Pension Costs
- defined benefit scheme
- defined contribution schemes
Redundancy and termination payments		 2020
£000s
22
15
57
6,675
32
657
815
138
152
8,469		 2019
£000s
22
13
59
6,690
23
633
730
123
32
8,231

The numbers of employees whose emoluments exceeded £60,000 in the year were:

£60,001 - £70,000
£70,001 - £80,000
£120,001 - £130,000
£130,001 - £140,000		 2020
No.
3
3
2
0		 2019
No.
4
0
1
1

The remuneration and other benefits provided to key management personnel in the year were:

Gross Emoluments
Benefits in Kind
Employer's National Insurance Contributions
Pension Costs
Total		 2020
£000s
241
1
32
40
314		 2019
£000s
257
3
33
32
325

32

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

The average number of employees at King Edward’s and Barrow Hills in the period was 253 (2019: 263) of which 81 (2019: 87) were full time equivalent teaching staff. Neither the Members of the Court nor persons connected with them received any remuneration or other benefits in the year (2019: nil), the aggregate amount of travel expenses claimed, by 1 Member of the Court, was £40 (2019: £132).

Teachers’ Pension Scheme

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). 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.

The Teachers’ Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go’ basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

Valuation of The Teachers' Pension Scheme

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 the TPS employers contribution rate increased to 23.68% from September 2019 (this includes the administration levy of 0.8%). The timing of the implementation was to align its introduction with employers’ budget planning cycles.

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.

33

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

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.

The charge to the Statement of Financial Activities for the year in respect of Teachers’ pension contributions was £987k (2019: £730k).

5.
Analysis of Total Resources Expended
Staff
Costs
£000s
Expenditure on raising funds
Fund Raising Costs
91
Other
45
136
Teaching Costs
6,026
Welfare
360
Catering
-
School
Administration
1,057
Premises
880
Governance Costs
10
Bursaries
-
8,333
Total 2020
8,469
Total 2019
8,231
Other
£000s
19
105
124
122
105
908
499
1,813
-
287
3,734
3,858
4,982		 Depreciation
£000s
-
-
-
130
-
9
1
301
-
-
441
441
467		 Total
2020
£000s
110
150
260
6,278
465
917
1,557
2,994
10
287
12,508
12,768
13,680		 Total
2019
£000s
157
148
305

6,568
526
1,191
1,522
2,943
9
616
13,375
13,680

34

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

6.
Tangible Fixed Assets
Consolidated & Charity
Cost
1 August 2019
Additions
Transfers
Disposals
31 July 2020
Depreciation
1 August 2019
Charge for the Year
Transfers
Disposals
31 July 2020
Net Book Values
31 July 2020
31 July 2019		 Freehold Land
& Buildings
£000s
10,215
-
85
-
10,300
952
148
25
-
1,125
9,175
9,263		 Equipment,
Fittings &
Motor Vehicles
£000s
3,068
354
(85)
(229)
3,108
1,533
293
(25)
(229)
1,572
1,536
1,535		 Total
£000s
13,283
354
-
(229)
13,408
2,485
441
-
(229)
2,697
10,711
10,798

All the fixed assets are held for charitable use. In the view of the Governors, the current market value of the freehold land and buildings is substantially greater than the cost stated. The Governors consider it is not appropriate to value regularly the freehold land and buildings.

The transfers represent building components that are being depreciated over a shorter economic useful life than the main buildings.

35

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

7. Investments

a) Consolidated and Charity
Investments
Balance with investment managers as at 1 August 2019
New money invested
(Loss)/Gain on investments
Balance as at 31 July 2020		 2020
£000s
21,458
81
(802)
20,737		 2019
£000s
21,040
87
331
21,458

Included within the above investments are the following holdings, which represent more than 5% of the total investments held.

Schroder Charity Multi Asset Fund
Analysis of Investments
Cash and cash equivalents
Listed Investments
Total		 2020
68.3%
2020
£000s
132
20,605
20,737		 2019
69.2%
2019
£000s
396
21,062
21,458

KES Enterprise Limited

KES Enterprise Limited is a Company limited by shares registered in England and Wales with Company number 05031707. The registered office of the company is the same as that of its parent included on page 17. Bridewell Royal Hospital owns 100% of the share capital of KES Enterprise Limited. The principal activity of KES Enterprise Limited is the provision of special educational needs and other services and facilities to the Schools and other educational bodies that occupy the School’s premises on a temporary basis. It will pay to Bridewell Royal Hospital under the Gift Aid Scheme a sum of £7k in respect of the Year Ended 31 July 2020 (2019: £132k).

Income
Expenditure
Surplus
Net Assets		 2020
£000s
149
(142)
7
7		 2019
£000s
290
(158)
132
132

36

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

b) Total Return

From 1 August 2007, the Governors have managed all their investments on a total return basis, adopting an investment policy of "preserving the real value of the endowment held in investments, whilst maximising the amount available to meet the needs of each generation of beneficiaries".

The details of the permanent endowed fund investments and the movements in the unapplied total return are set out below.

At 1 August 2019
Opening balance adjustment
Investment losses
Investment income
Investment manager's fee
Total Income
Unapplied total return allocated to
income in the year
Total Applied
At 31 July 2020		 Original
Gift
£000s
3,776
63
3,839
3,839

3,839		 Unapplied
Total Return
£000s
12,264
-
12,264
(611)
574
(24)
550
12,203
(550)
(550)
11,653		 Total
£000s		 Total
£000s
574
(24)
(550)		 574
(24)
(550)		 16,040
63
16,103
(611)
550
16,042
(550)
15,492

The opening balance adjustment relates to the value of the transfer from The Royal Asylum of St. Ann’s Society on 31[st] July 2017.

37

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

8.
Debtors
Fees and Other Pupil Expenses
Provision for Doubtful Debts
Accrued Interest and Dividends
Tax Recoverable
Prepayments and Accrued Income
Other Debtors
Amounts due from Subsidiary
Undertaking
9.
Creditors
Fees Received in Advance
Taxation and Social Security Costs
Accruals
Other Creditors
Creditors due after more than one year
Final term deposits		 Consolidated
2020
£000s
2019
£000s
273
149
(100)
(115)
173
34
186
166
9
8
271
340
11
24
-
-
650
572
Consolidated
2020
£000s
2019
£000s
499
610
154
168
274
604
1,299
1,379
2,226
2,761
Consolidated
2020
£000s
2019
£000s
858
784		 Charity Charity
2020
£000s
2019
£000s
273
149
(100)
(115)
173
34
186
166
9
8
271
196
11
24
105
58
755
486
Charity		 2019
£000s
149
(115)
34
166
8
196
24
58
486
2020
£000s
2019
£000s

486
436
154
168
271
596
1,299
1,379
2,210
2,579
Charity		 2019
£000s
436
168
596
1,379
2,579
2020
£000s
858		 2020
£000s
858		 2019
£000s
784

38

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

10. Allocation of the Group Net Assets



Endowed Funds
Restricted Funds
Unrestricted Funds
Total 2019
Endowed Funds
Restricted Funds
Unrestricted Funds
Total 2020		 Fixed
Assets
£000s
-
-
10,798
10,798
-
-
10,711
10,711		 Investments
£000s
16,091
2,635
2,732
21,458
15,555
2,558
2,624
20,737		 Net
Current
Assets
£000s
(51)
1,171
2,614
3,734
(126)
1,071
2,365
3,310		 Long Term
Liabilities
£000s
-
-
(784)
(784)
-
-
(858)
(858)		 Total
£000s
16,040
3,806
15,360
35,206
15,429
3,629
14,842
33,900
Operating Leases
The total outstanding commitments in respect of operating lease rentals are:
In respect of leases expiring:
Within one year
Between two and five years		 2020
£000s
52
46
98		 2019
£000s
58
54
112

11. Operating Leases

39

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

12. Endowed Funds

Consolidated
King Edward’s
School Witley
The Royal
Asylum of St
Ann’s Society
Total funds for
pupils' support
2019
King Edward’s
School Witley
The Royal
Asylum of St
Ann’s Society
Total funds for
pupils' support
2020		 1 August
£000s
15,641
57
15,698
15,979
61
16,040		 Total
Incoming
Resources
£000s
549
3
552
571
3
574		 Total
Expenditure
£000s
(33)
-
(33)
(23)
(1)
(24)		 Transfers
£000s
(15)
5
(10)
(548)
(2)
(550)		 Bursaries
£000s		 Investment
Gains/
(Losses)
£000s
262
(1)
261
(607)
(4)
(611)		 31 July
£000s
(425)
(3)
(428)
-
-
-		 15,979
61
16,040
15,372
57
15,429

40

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

13. Restricted Funds

Charity
The Enabling
Account
Bridewell
Foundation
Bursary Fund
Mrs Thomson
Bursary Fund
The Royal Asylum
of St Ann’s Society
Other
Funds for pupils'
support 2019
The Enabling
Account
Bridewell
Foundation
Bursary Fund
Mrs Thomson
Bursary Fund
The Royal Asylum
of St Ann’s Society
Other
Funds for pupils'
support 2020		 1 August
£000s
2,531
586
250
132
103
3,602
2,604
717
236
130
119
3,806		 Total
Incoming
Resources
£000s
78
249
-
5
29
361
75
123
-
6
6
210		 Total
Expenditure
£000s
(59)
(123)
-
(6)
(22)
(210)
(63)
(217)
-
(6)
(10)
(296)		 Transfers
£000s
-
5
(14)
-
9
-
-
-
-
-
-
-		 Investment
Gains /
(Losses)
£000s
54
-
-
(1)
-
53
(86)
-
-
(5)
-
(91)		 31 July
£000s
2,604
717
236
130
119
3,806
2,530
623
236
125
115
3,629

Of the £296k funds expended for pupil support, £287k related to bursaries.

41

Bridewell Royal Hospital

Notes to the Accounts for the Year Ended 31 July 2020 (Continued)

All the above funds, with the exception of the enabling account, are represented by current assets.

14. Unrestricted Funds

School Bursary Fund
General Fund
Funds for pupils'
support 2019
School Bursary Fund
General Fund
Funds for pupils'
support 2020		 1 August
£000s
3,291
12,077
15,368
3,494
11,866
15,360		 Total
Incoming
Resources
£000s
186
12,788
12,974
95
11,121
11,216		 Total
Expenditure
£000s
(-)
(13,009)
(13,009)
(5)
(12,179)
(12,184)		 Transfers
£000s
-
10
10
-
550
550
Investment
Gains/
(Losses)
£000s
17
-
17
(100)
-
(100)
31 July
£000s
3,494
11,866
15,360
3,484
11,358
14,842

In line with the Governors’ direction, the Schools’ current year’s unrestricted deficit has been transferred to the General Fund.

The principal aim of the School Bursary Fund, a designated fund, is to provide bursaries but it may also be used to support other costs of the School.

The transfer of £550k reflects the amount of unapplied total return allocated to income in the year.

In accordance with the Reserves and Liquidity Policy set out in the Report of the Court on page 12, the General Fund represents fixed assets of £10,711k and net current assets of £1,505k, less final term deposits due after more than one year of £858k.

16. Related party transactions

During the year donations totalling £3,500 (2019: £26,121) were received from Governors.

42