COMPANY REGlThnON NUMBER.. 207173 REGISTERED CHARrrY NUMBER: 312052 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT AND CONSOLIDATED FINANCIAL sfATEMENTS 31JULY 2020
FRENSHAM HEIGHTS EDUCATIONAL TRusf UMITED YEAR ENDED 31 JULY Z020 Cortents Page Governors, Officers and Advisers Report of the Board of Governors 3-11 Report of the Auditors 12-14 Consolidated Statement of Financial Activities 15 Consolidated Balance Sheet 16 Frensham Heights Educational Trust Balance Sheet 17 Consolidated Statement of Cash Flows 18 Notes to the Consolidated Cash Flow Statement 19 Notes to the Consolidated Financial Statements 20-37
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED GOVERNORS. OFFICERS AND ADVISERS YEAR ENDED 31 JULY 2020 DIREcfoRS AND GOVERNORS Margaret Coltman (Chair,. tired 8 December 20191 Gerard Holden (Vice Chairl William Bird (Treasurer to 8 December 2019.. appointed Chair 8 December 20191 Angus carlill13ppointed Treasurer 8 December 20191 Claire Fuller Martin Lupton Sally Marriott (appointed 15 January 20201 William Marriott lappointed 15 January 20201 Katherine Poulsom Jackie Sullivan Philip Ward Richard Fry Peter Molyneux F1Tr14NCE AND HUMAN RESOUR COMMrrrEE Angus Carlill (Chairl William Bird Richard Fry Katherine Poulsom Jackie Sullivan Claire Fuller EDUG4TION COMMIThEE Philip Ward (Chairl William Bird Richard Fry Gerard Holden HEAD Rick Clarke BuRA AND COMPANY SECREfARY Edwina Dean-Lewi5 (retired 8 December 20191 James 8ell (appointed i January as Interim 8ursarl lappointed 4 March 2020 a5 Company Secret3ry1 Note: Officers li.e. Chair, Vice Chair and Treasurer) are ex-officio members of all Board committees.
FRENSHAM HEIGirrs EDUCATIONAL TRUST UMITED GOVERNORS. OFFICERS AND ADVISERS YEAR ENDED 31 JULY 2020 REGISTERED OFFI Frensham Heights Rowledge Farnham Surrev GU104EA COMPANY NUMBER REGISTERED CHARITY 207173 312052 BANKERS HSBC Bank plc The Borough Farnham Surrey GU9 7NJ SOUtJTOK GBH Law (trading as Goodyear Blackie Herrington Solicitors) 7-8 Innovation Place Douglas DrNe Godalming Surrey GU7 IJX AUDITORS Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW INSURAN BROKERS Marsh Insurance Brokers Lim-rted Rockwood House 9-17 Perrymount Road Haywards Heath West Sussex RH16 3DU
FRENSHAM HEIGTrtrs EDUCATIONAL TRU UMrrED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2020 The Governors of Frensham Heights Educational Trust Limited, who are also the Dirertors and Charity Trustee5, ore pleased to present their annual direttorf report together with the consolidated financial statements of the charity and its subsidiary for the year ended 31 July 2020 which are a150 prepared to meet the requirements for a directors, report and accounts for Companies Att purposes. The financial statements complywith the Charities Act 2011, the Companie5 Art 2{6, the Memorandum and Articles of Association, and Accounting and Reportin8 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 IFRS 1021. DIREcfoRY REPORT CONsfiTUTION AND OBJECts Frensham Height5 Educational Trust Limited was founded under Memorandum and Articles of Association dated 10 july 1925 as amended on 4 April 1950, 22 lune 1996 and 11 January 2006. It is constituted as a cornpany limited by Shares, registered in England, No. 207173, and is registered with the Charity Commission under Charity No. 312052. The Charitys principal Objects. as set out in the Memorandurn of Association, are the advancement of education, including the provision of a School for boys and girls at Fren5ham, the holding of exhibitions. classes or conferences, whether general, professional or technical. and support to other charitable bodie5. There has been no change to the Objects during the year. In furtherance of these Objects and for the public benefit. the School has establtshed and administered during the year bursary awards and other benefactions. and acts as the trustee and Manager of property and gifts given or established in pvrsuance of these Objetts. 5rRuuRE, GOVERNANCE AND MANAGEMENT Contsrt Inforniatl The Governors, Head, Company Secretary and principal address of the Charity are as listed on Page l. Particulars of the Charivs professional 3dvisers a listed on Page 2. Group Structure and Relatlonshlps The Charity has a wholly owned non-charitable subsidiary. Frensham Heights Enterprises Limited, (Compony number 28668641 which wa5 incorF)orated in 1993. Its principal artivity is managing the hiring and letting of facilities at the School. Board of Gcwemors Governors serve for approximate seven years. with one seventh lor nearest number) normally retiring at the Annual General Meeting IAGMI each year. Governor5, Wtth the exception of the Officer5, mav not be re-appointed until the AGM following the AGM at which they retired. One Governor retired and two Governors were appointed during the year. A new Chair and Treasurer were appointed during the vear. All Governors are encouraged to identify potential new Governors and propose them in accordance with the needs identified using the specialist skills matrix which is reviewed annually by the Board. Potential Governors undergo a series of interviews and briefing5 before attending the Board a5 observers,. after which they may be appointed. New Governors undergo induttion sessions with the Head and Company Secretary to brief them on.. their legal obligations under charity and tompany law, the Charity Cornmis5ion guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-makin8 processes. the
FREN5HAM HEIGfrrrs EDUCATIONAL TRUST UMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2020 Development Strategy and recent finanaal performance of the charrty. New Govemors are given a tour of the School to meet key emp5oyees and they are encouraged to attend appropriate extemal training events to facilitate the undertaking of their role. All Governors have received training or attended external briefings by professional advisors throughout the period. Details of relevant courses and seminars are regularly circulated to all Governors. Governance Code The trustees are aware of the Charity Governance Code published in 2017 which sets out the principles and recommended practice for good governance within the sector. During the year the Chartty began a review of current govemance arrangements against the principles within the code and prepared an 3Ction plan to address areas identy.fied for best-prattice improvements. This will be implemented durin8 the year ended July 2021 Related partles and clPeratIon wtth other Lyganisatl None of the Governors has recVed remuneration or other benefit from their work wtth the school in the year. Any connection between a trustee or senior manager of the school with a production ompany. contracted attor, performer or exhibitor must be disdosed to the full Board of Governors in the same way as any other contractual relationship with a related party. Or8arusational Managefftnt The Governor5, who are also the Charity Trustees, are legally responsible for the general policy of the School and for the overall management and control OF the School. The Governors meet as a Board at least three times a ye3r. The work of overseeing the implementation of policie5 is carried out by committees. Ouring the year. two committees were combined to form the Finance and Human Resources Committee, which sits at least three times a year prior to each full Board meeting. All other committees sit a minimum of twice a year. Specific govemor working group5 were established, reporting to the committees, induding a steering group of govemors, the Head and Bursar. The steering group met regulady through the pandemic period from March to July. with major decisions being referred to the board for approval. The committees and their membership are listed on Page i. The Governors also hold an annual strategy meeting to examine and agree key issues impacting the School. At least one Governor sits on each of.. the sc1's Health and Safety Committee,. the Parents, Committee,. and the Staff Common Room Committee. The day-to-day management of the School is delegated to the Senior LeadershipTeam Ikey management personnel), which is comprised of the Head, Bursar. Deputy Head Academic, Deputy Head Pastoral and Head of Junior School. The Head and the 8ursar are invited ex-ofticio to all Board and committee meetings. The pay and remuneration of the Head and the Bursar are set by the whole Board at their Spring or Summer Board meetings having considered independent benchmark reports across the independent school edUtIOn sector. During the year the consultancy SeiceS of an interim Bursar were secured.
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2020 MS, OBJEcnvES AND AcllwTIES Public Benefrt Aims and Activities In meeting its Objerts. the School's public benefit aim is to provide a world clas5 progressive education that emphasises progressive values and f(Kuse5 on students a5 individua15 so a5 to brin8 Out their strenBths, with creative and performing arts given equal status alongside more traditional academic subjects and sport. In line with its ethos, the School welcomes students from all backgrounds where it 15 believed that the prospective student can benefit from the education provided at the School. During the year, the Head cornmenced work on reviewing and updating the School's vision, objettives and values. In support of thi5 aim the School awards bursaries, which are outlined in the grant making section of the Strategic Report. Importantly the School provides education in the widest sense coverinB a rar)ge of subjects. as well as extra-curricular actNities. and community spOnSibl11ty. With due regard to the Charity Comrni55ion'5 published guidance on the public benefit reouirement under the Charities Art 2011. the School also co-operates closeW with local schools. charities and organisations to widen public access to education. The school created a new post of Assistant Head (Student Development), with particular responsibility for outreach and community links. The School continue5 to work particularly closely with Rowledge Primary School supporting the FO5t School programme. offering access to science laboratories and a member of staff is also a Governor there. Other local, maintained sector schools, Youth 8roup5, scouts and cub5 rnade use of the School'5 music, art and sports facilities and minibuses. The School hès also forged very strong charitable links with All Saints School and Amao Orphanage in Malawi. The school has now begun work at a second schoc)I Imikvyul in Malawi. Over the last ten years, in addition to working visits by staff and students, prattical assistance and charitable funds raised by the School community have had significant impart for people living in those Malawi communities. During the Covid 19 pandemic. the School proactive set up a hub forthe creation of PPE for hospitals, are hornes and other community beneficiaries, including the creation of 3D printed visors, donated gloves and created masks and medical scrubs. Oblertfves ft)rtheYear The school's principal objertives for the year were to: Maximi5e student achievement Maximise student personal development through effective tutoring and involvement in opportunities outside the classroom Inspire and further develop the teaching staff through profe55i0nal developrnent opportunities Further enhance teaching and learning Maintain a roll of around $20 students for the year Redefine and revamp the Scholarship and Enrichment programme offered throughout the School 50 that it Is more in keeping with the School'5 ethos Deliver the school's charitable objects and demonstrable public benefit Maintain financial stability
FRENSHAM HEIGHTS EDUCATIONAL TRusf UMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2020 srRATEGIC REpoKr Strategles The School's strategic direction is articulated in its Strategic and Business Plan 2021>23. The annual Management Plan 2019-20 and capit31 expenditure plan out to 2024 sUPPOrted the delNery of the yearfs objectwes. The School regulady reviews its options in temis of long-term development and investment. Prtncipal Actmty of the Year The principal attivity continues to be the provision of day and boarding education for boys and g'rls aged from 3 to 18 years. This year the School averaged 52512019- 5191 students of whom 43412019.. 4301 were day students and 9112019.. 891 were boarders. Grant-makin8 During the year the School set aside funds to 5UPPOrt bursaries, which were offered to parents of students who could not otherwise afford to send their children tothe School. based on a comprehensNe means-tested assessment of financial need. The process requires parents or guardians to complete a detailed financial form covering intome. expenditure and assets which is reviewed by the Bursar and Head, and a representative of the Board of Governors in diff icult cases, before any award is made. Bursary awards a re-assessed annually. The school also offered support to familie5 in the case of financial hardship arising from the pandemic. The School's policy 15 to ensure funds are allocated for bursaries, and also develop further its programme of Scholarship and Enrichment activities which is open to scholar5, 35 well as the wider School community. In addition, the School recognises the importance of famity continuity and offers a IO% fee distount for third and subsequent children attending the School. In sUPPOrt of all these awards the School committed £614k12019- £606kl this year. of which E553k 12019: £552kl was awarded in bursaries to 45 students12019: 541 through its General Fund, of which 1112019.. 111 were 100%. In addition, £12k in hardship bursaries was awarded through funds don3ted by parents and Old Frenshamians. The availability of all such awards for fee-assistance is advertised on the School's website at www.frensham.o Volunteers Old Frenshamians. Friends of Ffensham. parents and members of the local community assisted and supported the School's educational and cultural activities throughout the year and the Board would like to record its appreclation of this invaluable and continuing supporL REWEW OF ACIIIEVEMETrtrs AND PERFORMAN Operational Perfonnano of the School Educational value has been added to student achievement across all age groups- this has been monitored using nationally recognised prediction information systems. Through the Scholarship and Enrlchment Prograrnme,. students gain a wealth of experiences which not only enhance their curriculum learnirE but also develop e55ential life skills. all of which add value to their time at Fren5harn. Trips and educational visits provide access to sotial. cultural, moral and spiritual experiences as students are challenged and trkgve the opportunity for experiential learning. Due to Covid-19, the academic year for providing enrichment was cut short. However, through a remote learning platform, students continued to recehie access to the curriculum delivered via a full timetable of live teaching. Opportunities for enrichffent were creatively identified as the communty was brought together in a number of ways
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMThED REpoKf OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2020 from students being involved in PPE support for the NHS. care homes and charities, virtual camp outs. virtual sports days, charity initiatives and thallenges. Exam results continue to be strong and increase, in line with the trajectory. This year the exam season was cancelled and Centre Assessed Grades were used. Frensharn ensured that a robust process was followed to ensure that all grades allocated were fair and well deseNed. GCSES: students achieved 43% 7. 65% 94: 97% 9-4 grades. A Levels.. studentsachieved 42%A'IA, 72%A'_B. IOO%A'_E. In addition, some students undertookthe Extended Project Qualification lequivalent to half an A Level): the pass rate was 71% A'_A. The School continue5 to attract students in the South East and London through the unique nature of our education and pastoral care and has maintained strong student numbers. The School also remains actNe in the intemational market place and appeals to oversea5 Student5, mainty from Europe. FUNDRASING The School is aware that its alumni and current parents have already committed significant funds to the School by the families, payment of school fees and has historically taken a low-key approach to additional fundraising,. it doe5 not employ professional or commercial fundraisers. The approach to fundraising was reviewed during the year and plan5 are emerging for a fundraising strategy. Fund5 raised are placed in a restricted fund intended for the future provision of bvrsaries. The School is aware of the need to protect vulnerable people from unreasonable and persistent fundraising pressure,. it has not received any complaints about fundraising durin8 the year. FINANCIAL REVIEW AND RESULT5 FOR THE YEAR Resufts The School aims to generate sufficient surplus lor reinvestment that advances the educational experience of all students and finances improvements to the School's facilities, so that it can continue to offer high quality education and student development. The majority of the School's income derives from fee5 and is closely related to student numbers for the year- enterprise trading activity also creates income. In the current yearthe group's net intomirlg resourtes amounted to £393k12019'. £496kl- This includes income from the trading subsidiary of £76k12019- E216kl. The School was impacted by Covid-19 with remote learning in place forthe summerterm and additional investment in IT resources, phical infrastructure and other resource5 to ensure the School could ieopen safely for all pupils and staff in September. The School also received funding through the Coronavirus Job Retention Scheme and through active management of its expenditure was able to make some costs savings. Some of these savings were passed on to parents and guardians with a partial refund on the summer term's fees with refunds totalling £352k. Trddingcompary The wholly owned subsidiary and trading company, Frensham Heights Enterprises Ltd, continues to mana8e successfully the letting and hiring facilities at Frensham Heights. For the year ended 30 June 2020 the tradin8 company has made a gift aid payment of £76k to the School. This was lower than in previous years due to disruption to weddings and residential lets during the coronavirus pandemic.
FRENSHAM HEIGHTS EDUCATIONAL TRusf UMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2020 BorroAlng and IreStrf( The School has had no bomwing requirement during the year and holds no investments. Resen Lthel WKI Policy and Financial ybilIty The School's reseNes policy 15 to maintain sufficient nStricted income reserve5 to enable it to meet its short-term financial obligations in the event of an unexpetted revenue shortfall taking into account annual and longer term capital expenditsjre plans in conjunction with access to external financing. The level of free reserves will therefore fluctuate within the cycle of the capital programme. The Group's total reserves of £I7.2k at the year-end included £549k unspent restricted income and £16,651k unrestricted income. £12,469k of this represented the net book value of fixed assets less associated internal funding arrangements and £516k designated for Scholarship fundin& made a8ainst future vears, fees leaving free reserves of £3,666k12019= £2,880kl at the year-end. This compares with a policy level of £1,534k which would provide cover for up to tsvo months, operating costs. The Trustees. policy is not to maintain free reserves in its Whol owned subsidiary. which therefore ha5 no impact on the School's reseNes. The governors are reviewing the reserves level in light of risk management strategies and will be updating this in the following financial year. GOING coNRN The School produce5 regular financial information including budgets, forecasts and a longer term strategic business plan, which are Close monrtored by the Governors. These budgets, cash flows and forecasts have been reviewed and revised in light of the Covid-19 pandemic, to tske into consideration the current economic climate and its potential impact. A number of scenarios were produced which considered the wider potential impatt from Covid-19 on the School's key operation5, Cash position, sources of income and planned expenditure. Revised forecasts have been prepared together with cash- flows, based on the most likely expected outcome from these scenarios, with sensitivrty analysis on the key assumptions. The cash flow modelling with sensitivity analysis indicates that the cash reserves of the School are adequate to meet the charity's obligations as they fall due. Therefore, the Governors have a reasonable expectation that the charity has adequate resour5 to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School's financial viability. Accordingly. they continue to adopt the going eoncem basls in preparing the financial statements as outlined in the Statement of Governor5. Responsibilities. FIXED ASSErs Acquisitions and disposal of fixed assets durin8 theyearare shown in Note 9 tothe Financial Statements. Freehold buildings are currently included in the Balance Sheet at C05t le55 depreciation. The Govemors are satisfied that their current market value is in excess of their historic cost. but do not wish to Spend charitable funds on obtaining a formal valuation for accounts purpose RISK MANAGEMETr The Board of Governors is responsible for the identification and management of rlsk and continues to keep the School's artivities under critical review at every Board meeting. Detailed consideration of specific risks is also condutted by relevant Governor Commtttees and their recommendations reported to the Board of Governors. The key controls used by the charfty Include- Formal agend3s for all Committee and Board activity,. Comprehenssve strategic pL8nnin& budgeting and management accountlng: Established organisatlonal structure and lines of reportin&
FRENSHAM NEIGs EDUCATIONAL TRUS[ UMtrED REPORT OF THE BOARD OF GOVERNOR5 YEAR ENDED 31 JULY 2020 Comprehensive Risk Register Formal written policies- Clear authorisation and approvals: and Vetting procedures as required by law for the protettion of the vulnerable. The highest priority risks identrfied by the Boafd of Governors at the end of the year which could lead to financial and operational challenge5 are.. l. The possible effect of the economic climate. including the impact of the pandemic. on student numbers. 2. The possible impatt of changing government policy {including increases for employer tontributions to the Teachers. Pension Schemel andlor the social environment reducing demand for independent school education. 3. Adverse impact upon students,. staff and others, physical and mental health 4. Unpredictable adverse publicity affetting the School's reputation. The Management Plan and strategies to manage these risks are to continue to enhance and market Frensham Heights, ethos; develop fresh marketing strategies to maintain student numbers,. and to exercise tight financial control over spending and debtor Health and Safety is also a significant area of non-financial risk and it is closely managed. The risks range from fire and infrastructure damage to personal risks. The risks associated with all activities afe minimised by preventative plannin8 and risk assessment. The Board of Govemors 15 satisfied that for all rnajor risks identrfied, appropriate controls have been put in place and are maintained to mitigate the risks. It is recognised that systems can provide reasonable but not absolute assurance that major risks have been effertively mitigated. The pandemic has had an impart on many aspetts of education and school life, including a term of remote learning for many students and a range of adjustments for the partial reopening to certain year groups. Risks to potential student numbers. the boarding operation. and to physical and mental health have all been reviewed and regularly monitored by management and governor5. Governor5 have considered the risks and ongoing uncertainties of the situation, including the impact on fee receipts and have identified a range of actions implemented in the year and under review for the future period. These include odju5tments to fee5, SUPPOrt for cases of unexpected financial hardship, and investing in facilities to support a safe learning and working environment. FufuRE PL4NS The School's Strategic and Business Plan 2020-23. charitable objects and ethos provide the strategic direction for future plans,. these are captured and articulated in the School'5 Management Plan 202 2021. This document sets out the specific and detailed plans for next year. The key objettive5 Wlthin the current plan are.. Student Achievement. Maximise student achievement through enhancements to Approaches to Learning and the role of tutor5. Student Personal Development. Maximise student development by improving organisational skills. Further refine the PSHE (Personal, Social and Health Education) programme. Marketing. Maintain numbers around 525 and focus Marketing effort on retention frorn Year 11 and retnjitment into the Sixth Fom) and in the Early Years. Develop Fnsham,5 position as a thought leader for progressive education. Parent Communic3tion/Reputation. Build on the success of the new Parents, Information Evenings. Review effectiveness of parental communication5.
FRENSHAM HEIGltrs EDUCATIONAL TRUST UMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2020 Finance and SitelFacilities Development. Implement improvements to Finance and HR systems. Produce Site developrnent plan. Continue initiattves to increase energy efficiencv and work to sustain the woodland Public Benefit. Maintain strong link5 With local schools, the local community (following success of the PPE provision for the NHS over lockdownl and partner schools in Malawi. BOARD OF GOVERNORS The Governors are all Directors of the School and their non-beneficial interests in the ordinary Share capital in the year are as shown in the following table- 31 July 2020 io io 31 ju 2019 20 William Bird Angus Cadill Margaret Coltman Iretiredl Claire Fuller Gerard Holden Martin Lupton Sally Marriott William Marriott Katherine Poulsom Jackie Sullivan Philip Ward Richard Fry Peter Molyneux 20 io io 20 io io io io io STATEMEKfoF GOVERNORS, RESPONSIBILMES The members of the Board of Governor5 Iwho are also the directors of Frensham Heights Educational Trust for the purposes of company lawl are responsible for preparing the Annual Report and the financial statements in accordance with applicable13w and FRS 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland. Company law require5 the rnernber5 of the Board of Governors to prepare finaftcial statements for e3ch financial year. Under company law they must not approve the financial statements unless they are satisfied that they give a tnje and fair view of the state of affairs of the charitable company and the sroup, including the income land its application) and expenditure of the group for that year. In preparing these financial statements. the members of the Board of Governors are required to: selert the most suttable accountin8 policies and then apply them ConsiStent- observe the methi)ds and principles in the Charities SORP 2019 IFRS 1021,. make judgments and estimates that are reasonable and prudent,. state whether applicable UK accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unles5 it Is inappropriate to presume that the charitable company will continue in business. 10
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31JULY Z020 The member5 of the Board of Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company'5 transactions, disclose with reasonable accuracy at any time the financial posltion of the charitable company and enable them to ellsure that the financial statements Comp with the Companies Act 20 and the provisions of the charivs constitution. They are a150 responsible for safeguarding the assets of the charity and the group and for taking reasonable steps for the prevention and detection of fraud and other irregularities. In50far a5 each of the Direttors, as members of the Board of Governor5, at the date of approval of this report is aware there is no relevant audit information linfomiation needed by the Companrfs auditor in connection with preparing the audit report) of which the Company's auditor is unaware. Each member of the Board of Governors has tsken all the steps that he or she should have taken as a member of the Board of Governors in order to make himself or herself aware of the relevant audit information and to establish that the Compan$ auditor is aware of that information. AUDITORS Crowe U.K. LLP have expressed their willingness to continue in office as auditors. This Annual Report. includin8 the Strategic Report. prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Governors of Frensham Heights Educational Trust Limited on 5 December 2020 and is si8ned as authorised on its behalf by: William Bird: Direttor and Chair of Governors 11
Independent Auditorfs Rewt to the Members of Frensharn Heights Educatlonal Trust Opinlon We have audited the financial statements of Frensham Heights Educational Tru5tfer the year ended 31 July 2020 which comprise the Group Statement of Financial Activities. the GfOUP and Company Balance Sheets, the Group Statement of Cash Flows and Notesto the Financial Statements, including a summary of signrficant 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 Iunited Kin8dom Generalty Accepted Accounting Practice). In our opinion the financial 5tatements- give a true and fair view of the state of the 8roup'5 and the charitable company's affairs as at 31 July 2020 and of the 8roup's income and expenditure for the year then ended.. have been Proper prepared in accordance with United Kingdom Generally Accepted Accounting Prattice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnl We condutted our audit in accordance with International Standard5 on Auditing {UKI IISAS IUKII and applicable law. Our responsibil¢ties under those standards are further described in the Auditorfs responsibilities for the audit of the financi31 statements settion of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRCS 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 suff icient and appropriate to provide a basi5 for our opinion. Conduslons relat1 to galr concem We have nothin8 to report in respett of the following matters in relation to which the ISAS IUKI require us to report to you. where: the tru5tee5' 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 uncertaintiesthat may cast significant doubt about the charitable companrfs ability to continue to adopt the going concern basis of accounting for a period of at least tWee months from the date when the financial statements are authorised for issue. Other information The trustees are responsible for the other infomiation. The other infomiation cornprises the inforrnation included in the annual report. other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise explicitly stated in our report. we do not express anyform of assurance conclusion thereon. 12
In connertion with our audtt of the financial statements, our re5pon51bility is to read the other information and. in doing so. considerwhether the other information 15 materially inconsistent with the financial statements or our knowledge obtained in the audit or otheThvise appears to be materially misstated. If we identify such material inconsistencies or app3rent material rnisstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other infomation. If. based on the work we have performed, we conclude that ihere is a material mi55tatement of this other inforrnation, we are required to report that fact. We have nothing to report in this regard. Opinion on other matter prescrfbed Cornpanles kt 2( In our opinion based on the work undertaken in the course of our audit the infom)ation given in the Strategic Report and the Trustees, Annual Report forthe f inancial yearforwhich the financial statements are prepared 15 con51Stent with thefinancial statement5,' and the Tru5tees' Annual Report and Strategic Report have been prepared in accordance with applicable legal requirements. Matter5 on which we a required to pOrt * eKeption In light of the knowledge and understsnding of the company and its environment obtained in the course of the audit, we have not identified material mis5tatement5 in the Strategic report or the trustees, annual report. We have nothing to report in respect of the following matters in relation to which the Companies Art 2CK)6 requires us to report to you if, in our opinion.. the parent charitable company has not kept adequate accounting records.- or the parent charitable company 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 infomiation and explanations we require for our audit. Re5pon5ibilttses of trustees As explained more fully in the trustees. responsibilities statement set out on Page 10. the trustees 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. 13
In preparing the financial Statements. the trustees are responsible for assessing the charitable companls aEility to continue as a going concern, disclo%ng, as applicable, matters related to going concerrb and using the going concern basis of accounting unless the trustees ather intend to liquidate the charitalAe company or to cease operations, or have no realistic altemative but to do so. Auditorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from materi31 misstatement, whether due to fraud or error, and to Issue an auditorfs report that indudes our op¢nion. ReasOnae assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI wll always detett a material misstatement when it exis Mi55tatements can arise from fraud Ir 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 respongbllities for the audi( of the financial statements is located on the Financial Reporting Council's website at: www.frc.o auditorsres onsibilitie5. This description form5 Part of our auditorfs reporL Use of our report This report is made solely to the charttable companws members. as a body. in accordance with Chapter 3 of Part 16 of the Cornpanie5 Act 2(X)6. Our audit work ha5 been undertaken so that we might state to the charitable companrfs members those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permttted by law. we do not accept or assume responsibility to anyone other than the charitsble company and the company's members as a body, for our audit work, for this report. or for the opinions we have formed. Andrew Thomas Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London Date: 19 March 2021 14
FRENSHAM HEIGHTS EDUCATIONAL TRusf UMITED CONSOUDATED STATEMENT OF FINANaAL AcnvmES Ilncorporating an Income and Expendtture account) FOR THE YEAR ENDED 31 JULY 2020 Totsl Totol unrestri Restrirted ErKl¢Med Funds Fund5 Funds Funds Funds 2020 2019 £txKJ e(MJ) el £000 IoMe and endowments from: Charttable ActNltles School fees receivable Other educational income Other ancillary trading income Othertrddir* aCtNeS Trading turnover Other Income Profit / ILossl on disposal Investments Investment income Voluntary Income Grants and Donations 8.751 187 188 8,751 187 9,006 210 321 247 34 247 34 435 17 13) 26 29 42 225 16 241 Totsl Income 9,658 19 9.677 10,932 ExpendItU on: Ralsln8 funds Fundraisin8 Tradin8 166 166 214 CharitsbleAthltles EdUtIon and grant making 9.107 li 9,118 9,322 Totsl experKliture 9,273 li 9,284 9.536 Net Income 385 393 496 Transfer5 beleen funds Net M¢ernert of funds 16 141 141 389 393 496 Funds brought forward l Au8USt 2019 16,262 271 274 16,807 16,311 Fund5 carried forvftrd 31 Juiy 2020 17 16.651 279 270 17,21XI 16,807 All amounts relate to continuing operations. There are no recognised gains or losse5 Other than the results for the year set out above. The Notes on Pages 20 to 37 form part ofthese financial ststements 15
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMrtED (Company Number: 207173} CONSOLIDATED BALANCE SHEEr AS AT 31 JULY 2020 2020 2019 eooo FIXED ASS5 Tangible fixed assets 9a) 12,740 13,076 13.076 12,740 CURREpifASSErs Stocks Debtors.. amounts falling due within one year Cash at bank and in hand li 274 5.554 316 4,870 5.189 cREDORS. amounts falling due within one year 12 1.456 NCURRENT ASSErs 4A62 3,733 TOTALASSEfs LESS cURRETr LL4BILmES 17,202 16,809 cREDORS. amounts falling due after more than oneyear 13 17,2(Xi 16,807 CAPThAL AND RESERVES Called up share capital THE FUNDS OF THE CHARrrY UNRESfIuED FUNDS Scholarship fund Tangible fixed asset fund General fund Is 16 516 12.470 3,665 12,802 2,880 16,262 16.651 RESTRicfED FUNDS Endowments Bursaryand award funds 270 279 274 271 549 545 TOTAL FUNDS 17 17.2CKJ 16,807 The profit forthe finanaal year dealt with in the financval statements of the parent Company was £315k 12019.. £280kl. Approved and authorised for issue by the Board of Governors on 5 December 2020 William Bird Governors and Directors Angvs Carllll The Notes on Pages 20 to 37 form part of these finanoal statements 16
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED (Company Number: 207173) BALANCE SHE ASAT31JULY2020 2020 2019 FIXED ASSEtS Tangible fixed assets Investments 9bl io 12.736 io 13,071 io 13,081 12.746 CURRENT ASSErs Stocks Debtors: amounts falling due within one year Cash at bank and in hand li 273 5.383 5,657 309 4.951 CREDrroRS: amounts falling due within one year 12 1,210 1,231 NETCURRENT ASSErs 4.447 3.720 TOTAL ASSEFS LESS CURRETrrr LFABIUTIES 17,193 16.801 CREDrroRS: amounts falllr8 due after more than oneyear 13 NEfASSErs 17,193 16,801 CAprrALAND RESERVES Called up share capital THE FUNDS OFTHE CHARTr UNRESTRICTED FUNDS Scholarship fund Tangible fixed asset fund General fund 15 516 12,470 3.658 580 12,802 2,874 16,256 16.644 RESTRicfED FUNDS Endowments 8ursary and award funds 270 279 274 271 545 549 TOTAL FUNDS 17 17,193 16.801 Approved and authorised for issue by the Board of Governors on 5 December 2020. William Bird Governors and Directors L. Lts(L'ii Angus Carlill he Notes on Pages 20 to 37 forrn part of these financial statements 17
FRENSHAM HEIGTrTfs EDUCATIONAL TRUSf LIMrrED CONSOUDATEO sfATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2020 2020 2019 E'L0 Cash fkA¥s from operatlr¥ aLtMtle5 Net cash provided by operating activities 921 1,058 Cash flNs from investire actfvities: Payrnents for tangible fixed assets Non-cash payments for tangible fixed assets Proceeds on Sale of tangible fixed assets Investment income and bank interest received {267) (306} li 42 Net cash {used Inl / pro41ded ty Investin8 activities 1237) (249) Cash flo4¥5 from financir8 actrrfrt*s: Finance Costs Paid Net cash prrNlded finarNd atte$ Change in cash and cash equivalents in the reportirÉ period 809 Cash and cash equivalents at the beginning of period 4.870 4,061 Cash and cash equivalents at the end of the reporting period 4.870 The Notes on Pages 20 to 37 fom) part of these financial ststements 18
FRENSHAM HEIGHTS EDUCATIONAL TRU UMtrED NOTES TO THE CONSOUDATED CASH FLOW sfATEMENT FOR ThE YEAR ENDED 31 JULY 2020 lil Reconcillatlon of net income to net 5h from operating aCtNit5 2020 2019 Net irncoming resources Elimination of non-operating cash flows- 393 496 Investment income Depreciation Charge Non Cash-Flow Item Profit on sale of assets Ilncreasel I decrease in debtors Ilncreasel / decrease in stocks Increase / Idecreasel in creditors Increase / Idecreasel in fees in advance scheme creditors Increase / Idecreasel in parents. deposits 142) 578 603 {ii 42 (4) 60 {2241 219 {58J (54) {84} 76 528 562 Net cash provided operating activities 921 1,058 lill AnaSiS of cash and cash ewprdlents 2020 2019 Cash held on current account C35h held on deposit Petty cash held 1032 3519 1,3( 3.562 5.554 4,870 19
FREN5HAM HEIGiffs EDUCATIONAL TRusf UMITED NOTES TO THE CONSOUDATED FINANaAL ATEmENTs FOR THE YEAR ENDED 31 JULY 2020 COMPANY INFORMATI(. The School is a Public Benefit Entity registered as a charity in England and Wales and a compary limited by guarantee. It was incorporated on 10 July 1925 Icompany number.. 2071731 and registered as a charity on 15 August 1966 Icharity number.. 3120521. ACCOUTrThNG pouaES 8as of pparat[On The financial statements have been prepared under the h15torical cost convention in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021. the Companies Act 2(XJ6 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance wtth the Finandal Reportlng Standard applicable in the UK and RepU1t of Ireland IFRS 1021 GOI Concern: As detailed in the Report ofthe Governors. the Govemors have reviewed and revised the School's finanoal forecastr.ng in light of the Covid-19 pandemic, to take into consideration the current economic dimate and its potential impact. A number of scenarios were produced which considered the wider potential impart from Covid-19 on the School's key operations. cash position, sources of income and Flanned expenditure. Revised forecasts have been prepared together with cash-f5ows, based on the most likely expected outcome from these scenarios. with sengtmty analygs on the key assumptions. The cash flow moddling with sensitivity analysis indicates that the cash reserves of the School are adequate to rneet the charity's obli8ations as they fall due. Having regard to the above, the current cash position. and the expected cash flow over the next 12-24 months the Governors have a reasonable expettation that the charity has adequate resources to continue its attivitie5 for the foreseeable future and consider that there were no material uncertainties overthe School's financial viability- Accordingly, they continue to adopt the going concem basis in preparing the financial statements as oudined in the Statement of Governors, Responsibilitie& The funrtional currency of the School is conydered to be GBP because that Is the currenLV of the primary economic environment in which the School operate& The charty has taken advantage of the exemption available to a qualifylng Èntity in FRS 102 from the requirement to present a charity only Cash Aow Statement and certain disclosures about the chariWs finanoal instruments. The consolidated account5 include Fren5ham Heights Enterprises Limited. made up to 30 lune 2020. In accordance with the exemption allowed under Section 408 of the Companies Act 2CQ6. the charivs Statement of Financial Activities is not separately presented. Crftlcal accountIwJernents arKI kw SLwrces If estlmatSon uncertalnty In the application of the accounting policies. Trustees are required to make judgement, estimates. and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and otherfattors that are considered to be relevant. Actual results may differ from these estimates. 20
FRENSHAM HEIGHTS EDUCATIONAL TRusf UMITED NOTES TO THE CONSOUDATED FINANaAL STATEMENTS (coKnNUED) FOR TrIE YEAR ENDED 31 JULY 2020 AccounN6 pouaE5 {Continued) The estimates and underlying assumption5 are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects On that period, or in the period of the revision and future periods if the rev15ion afferted current and future periods. In the view of the trustees, no assumptions conceming the futu or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. bl Fee5 and similar income Fees receivable and charges for 5ervice5 and use of premises are accounted for in the period in which the service 15 provided. Fee5 receivable are stated after deducting allowances, scholarships and other remissions granted by the School. Investment Income Investment income from dividends, bank balances and fixed interest securities a accounted for on an accruals basis. dl Voluntsry Inc¢Jme Voluntary incoming resources are accounted for as ènd when entitlement arises. the amount can be reasonablyquantified and the economic benefit to the School is considered probable. Donation5 receivable for the general purp05e of the School are credited to 'unre5trirted funds,. Donations lor purposes restricted by the wishes of the donor are taken to 'restricted fund5, where these wishes are legally binding on the Governors. Oonations required to be retained as capital in accordance with the donorfs wishe5 are accounted for as 'endowments'_ permanent Of expendable according to the nature of the restriction. Taxatlon The School is a registered charity- As such it 15 exempt under present legislation from assessment to corporation tax on its net income and is able to reclaim tax deducted from covenants and interest received. Talble fwed assets and depreclatlon All items with a value greater than £l.C((J have been capitalised. Depreciation is provided annually at the following rates- Freehold buildings Timber buildings Modular buildings Motor vehicles Furniture and other equipment Solar Panels Computerequipment 2% of cost 5% to 6.7% of cost 4% of cost 25% of cost I(YA- 20% of cost 5% of cost 20% to 33.3% ofcost 21
FRENSHAM HEIGHTS EDUCATIONAL TRU UMtfED NOTES TO THE CONSOUDATED ANANaAL sfATEMENTS ICONTINUEO) FOR THE YEAR ENDED 31 JULY 2020 ACCOUNTING pouaES {Contlnued) Bl Expenditure Expendttufe is accrued as soon as a liability is considered probable. discounted to present value for longer-term liabilities. Certain expenditijre is apportioned to cost categories based on the estimated amount attributable to the actNity in the year. The irrecoverable element of VAT is included with the item of expense to which it relates. Raising funds comprise those costs dirertly attributable to the tradin8 subsidiary (Note 31. Support costs comprlse a proportion of staff costs togetherwith a proportion of overhead5 of the School. Governance costs are those inturred in connection with the govemance of the School and compliance with constitutional and statutory requirements. Operatir8 leases Rentals under operating leases are charged on a straight-line basis over the lease term. even rf the payments are not made on such a basis. Benefits received and receivable as an InntNe to sign an operating lease are Similar spread on a straight-line basis over the lease tem. h) Stock Stock represents goods for resale and is 5tsted at the lower of cost and net realisable value. Per6lon schemes The School contributes to the Teachers, Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multi-employer pension scheme and it 15 not Possible to identify the assets and liabilitie5 of the scheme which are attributable to the School. In accordance with FRS102 therefore, the scheme is accounted for as a defined contribution scheme. Certain non-teachift8 Staff are members of other defined contribution schemes. All non- teaching staff are entrcled to join a group personal pension scheme, which complies with the requirements for a Stakeholder Pension Scheme. Flrnancial instruments k) Basic financial instruments are inttially recognised at tfansattion value and subsequently measured and amortised with the exception of investrnents which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as workin8 capital. Financial liabilities held at arnortised cost comprise trade creditors. other credÉtors, accwals and deposit&
FRENSHAM HEIGHTS EDUCATIONAL TRusf LIMITED NOTES TO THE CONSOUDATED FINANaAL STATEMENTS (COPMNUED) FOR THE YEAR ENDED 31 JULY 2020 CHARThABLE AcfivmES. FEES RECEIVPBLE 2020 2019 £'ooo Fee5 receivable consist ofr. School Fees Les5'. Total bursaries, grants and allowances Less- Covid-19 Fee refund 9,886 (783) (352) 9.823 f817J 8,751 9,006 INCOME Net income is stated after charging: Depreciation of tangible fixed assets Auditor5. remuneration - Audit - Other Services 578 19 22 Staff costs (Note 81 Operating lease costs 6.836 6,534 46 23
FRENSHAM HEIGtrrrs EDUCATIONAL TRUST UMtTED NOTES TO THE CONSOUDATED FINANaAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 JULY 2020 TR4DING INCOME Frensham Heights EducationalTrust Ltd owns the entlre issued share capital of Frensham Hei8hts Enterprises Ltd. Company Nurnber 2866864. registered address Frensham Heights, Rowledge, Farnham. Surrey GUIO 4EA. The principal attivity of this company is that of managing letting and hiring facilities available at Frensham Heights. 30 June 2020 30June 2019 Tumover Cost of sales 247 11161 435 (171J Gross profit Administration expenses 131 1561 264 f49J Operating proftt Interest recewable 75 215 Profit on ordinary activrties befo taxation Taxatkjn Profit on ordinary artivleS after taxation 76 216 76 216 Retained earnings at the start of period Profit for the year 76 216 GrFt aid to Fren5ham Heights Educational Trust Limited 1761 (216J Retained earnings at the end of period Trading costs detailed above are disclosed in the consolidated Statement of Financial Activities as follows Cost of sales Administrative expenses Audit and professional fees included in govemance costs 116 56 (61 171 49 16) Fundraising trading as on Statement of Financial AttNities 166 214 The School's and cornpan¢s year-end are non ctrtemiinus and it is not considered necessary to have identical year ends as it is not experted that any transattions will occur in the trading compar)y in the intervenin8 pefiod which will have a material impact on the consolidated accounts. Administration expenses of the subsidiary include auditors, remuneration for audit services of £4k12019 - £4kl and for other services £lk12019 - £lkl. These have been included in governance costs in the consolidated statement of financial attivities. 24
FREN5HAM HEIGHTS EDUCATIONAL TRU UMITED NOTES TO THE CONSOUDATEO ANANaAL STATEMErns (corinNUED) FOR THE YEAR ENDED 31 JULY Z(llO INVEThETrff INCOME Totsl 2020 Totol 2019 Bank deposit account interest 42 INCOME FROM CHARABLE AawTllES 2020 2019 Other educational tharftsble actmtles Entrance and re8lStration fee5 Courses and sub-lettings 104 83 113 97 187 210 Other ancillary actwitres Insurance commissions School Trips, Meals and Other Income 321 188 321 ANALYSIS OF EXPENDITURE Staff Totsl 2020 Costs t)epreclatlon Trading expenditure 97 97 68 68 166 166 Charitsble actfvitle5 Education and welfare Housekeeping Catering Transport Maintenance and estate Support costs and 8overnance 4,778 363 249 539 232 277 602 5,919 595 526 18 722 1,338 287 435 2TI 6,738 1,778 602 9,118 Totsl expenditure 6.835 9,284 25
FRENSHAM HEIGHTS EDUCATIONAL TRusf UMrrED NOTES TO THE CONSOUDATED HNANCIAL ATEmENTS (COPITINUED) FOR THE YEAR ENDED 31 JULY 2020 ANPLYSIS OF EXPENDITURE Icontinwl) SUPPORT Costs AJ4D GOVERNAN 2019 Salaries Staff recruitment and travel Marketing and professional fees Telephone. p(Ktage, printin& stationery Miscellaneous admin costs Governance costs (Note 71 1,062 82 120 27 24 23 919 55 169 37 39 25 1.338 1,244 Governance costs include auditor5. remuneration for audit services of E17k12019.. £15kl and for other services £4k 12019.. £7kl and the reimbursement of two Governors, travelling and subsistence expenses of £756 12019 three Governor5: £1.8271. a5 well a5 £768 for Governor miscellaneous and training costs. srAFF cosrs 2020 2019 Wages and salaries Social security Costs other pension costs 4,845 479 723 496 982 6.438 6,047 Staff not dirertty employed by the School 397 487 635 6.534 N(k No. The average monthly stsff headcount Wa5.. Teaching Administration Other ICL) 30 27 26 155 157 Included in the above, one permanent member of staff is employed in the trading subsidiary 12019.. One). In addition, ad hoc staff are called upon throu8hoJt the year to provide support for funttion5 In the trading subsidiary.
FRENSHAM HEIGHTS EDUCAT1014AL TRuFf UMITED NOTES TO THE CONSOLIDATED FINANaAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 srAFF co (Continued) 2020 2019 The total employee benefits (including employer5. pension and national insurance contributions) of key management personnel were". 998 805 The following number of staff received remuneration in exces5 of £60.000 in the year= 2020 No. 2019 No. £60,001 to £70,txx) £70,001 to £80.C#)O £IIO,001 to £120.LXX) Neither the governors nor persons connected with them received any remuneration or anv other benefits from any employment with the charity or related entity within the year12019.. £4,434). Included in thetotal staff costriguS above are temiination paymentsto employees authorised during the year totalling £66k12019 - E26kl. All authorised payments were fully paid to employees durin8 the year. 27
FRENSHAM HEIGHTS EDUCATIONAL TRusf UMITED NOTE5 TO THE CONSOUDATED FINANaAL STATEMENTS (copillNUED) FOR THE YEAR ENDED 31 JULY 2020 TANGIBLE FIXED ASS5 a)The Grp Freehold Land. Buildings and Improvements plant. Fumiture and Equipment £'ooo Motor Vehides £'o Total Cost At l August 2019 Additions Disposals At 31 Juty2020 16,453 70 1,769 185 1131 1.941 151 12 141 159 18,373 267 1171 18.623 16.523 Depreciation At l August 2019 Charge for the year Disposals At 31 Jufy 2020 4.247 396 919 193 1131 131 14 141 141 5,297 603 1171 4.643 Net b>)kYalue At 31jU2020 At31 July 2019 li 12.740 13,076 12.2Q6 850 20 bl The SchcA)I Freehold Land. Buildings and Improvernents £'oco Plant. Furniture and Equipment Motor Vehides Total £'ooo Cost At l AugLJSt 2019 Additions Disposals At 31Jufy 2020 16.440 70 1.759 185 1131 1?31 151 12 141 159 18,350 267 1171 18.600 16.510 Depreciation At l August 2019 Charge for the year Disposals At 31 Juty 2020 4.240 395 131 14 141 141 5,279 602 1171 s64 193 1131 4,635 Net book value At 31 ju 2020 At 31 July 2019 I175 12,2L 12.736 13.071 851 20 Freehold Land, Building5 and Improvements include5 assets in the course of construttion at C05t of £7Ck12019: £ Nil) not yet being depreciated. plant, Furniture and Equipment indudes work in progress at a cost of £22k12019-. £Nill notyet being depreoated. 28
FRENSHAM HEIGHTS EDUCATIONAL Tftu UMrrED NOTES TO THE CONSOUDATED RNANCIAL STATEMENTS ICONTJNUED) FOR THE YEAR ENDED 31 JULY 2020 io. INVE5fME5 Frensham Helghts Enterprfses Ltd 2020 2019 £1 Ordinary shares at par in Frensham Heights Enterprises Ltd io io io io Company The company holds £IO.C(() ordinary shares, the entire issued share capital. of Frensham Heights Enterprises mIted. The principal activity of the inve5tee is the letting of facilities available at Frensham Heights School. At 30 June 2020 Frensham Hei8hts Enterprise5 Ltd had capital and reserves which totalled £17k 12019.. £17kl. The tumover for the year was £247k12019: £435kl- Frensham Heights Enterprises Ltd is a company registered in England and Wales, registered nurnber 2866864. 11. DEBTOR5: amounts falllr8 due wlthin one yEar Group School 2020 2019 2020 2019 £'ooo Amounts due from group undertakin8 Fee5 debtors Sundry debtors and prepayments 92 83 30 132 148 132 274 316 273 310 29
FRENSHAM HEIGkrrs EDUCATIONAL TRUST UMrrED NOTES TO THE CONSOLIDATED FINANa stATEMENT5 ICONTINUED) FOR THE YEAR ENDED 31 JULY 2020 11 CREDrroRS: amourrts falli due wlthin one year Gr(yJp School 2019 2020 2019 £,0 Amounts owed to group undertakin8S Fees deposits Trade creditors Other creditors and accnjals Fees receNed in advance Deferred income 520 171 128 341 127 520 170 120 341 59 604 270 90 122 145 272 107 122 346 1,456 1.231 The total amount held in relation to fee5 deposits of £52 is included above. In the normal course of business. the experted repayment of these amounts will be £178k within one year and £342k after more than one year. The School holds pupil fee dep)srts. Althou8h under normal circumstances these will be repaid over future years when the pupils cornpte their education at the school, pupils can leave at earlier dates. The school does mt therefore have an unconditional right to retain the individual deposits for at least 12 months after balance sheet date and, in line with the requirements in FRS 102, the balance of the deposrts held at 31 July 2020 have been included within current liabilities. The prior year pupil fee deposits balance has been similar represented. Defeffed Incorne Recordllatlon £'o(J) 346 125 {3441 Balance brou8ht forward at l August 2019 Additions in current year Release of deferred income Balance carried forward at 31 ju 2020 127 The deferred income balance relates mostty to future year school trips income,. and on the tradin8 subsidiary, future year residential lets and weddings.
FRENSHAM HE1GTr5 EDUCATIONAL TRUST UMITED NOTES TO THE CON50UDATED FINANOAL sfATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 13. CREDITORS: amounts falling due after rn0 than ortyear Grcwp 2020 2019 2020 2019 E'OOO Oeferred income 14. FEES IN ADVANCE SCHEME The School is not Current offerin8 a Fee5 in Advance Scheme due to the low interest rate environment. 15. SHARE CAPITAL 2020 2019 Authorised l(X) Ordinary shares of £1 each loo Ic Allotted. issued and fully paid IQO Ordinary shares of £1 each 100 100 16. MOVEMENT ON FUNDS Balance at l August 2019 Transfer Between Funds £'o Balan at31Jufy 2020 Incorning Re50urces Resources Expended Restricted Funds Bursary and award fund Music award fund Endowment fund 266 17 Iii) 2n 274 545 141 141 270 549 19 Iiii Designated Fund5 Scholarship fund Tangible fixed assets fund 580 12.802 1641 13321 516 12.470 General Fund 2,880 9,6S7 {9.2721 3.665 16,807 9.676 19,2831 17.2(KJ 31
FREN5HAM HEIGHTS EDUCATIONAL TRUST UMITED NOTES TO THE CONSOUDATED FINANaAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 MOVEMEKf ON FUNDS (Contind} Balance at l August Incoming Resources 2018 Resources Expended Transfer Between Funds £'oLx) Balance at31Ju 2019 Restricted Funds Bursary and award fund Music award fund Endowment fund 265 131 266 279 151 151 274 545 Designated Funds Scholarship fund Tangible fixed assets fund 577 13,086 12841 12.802 Gererdl FuThl 2.104 10,027 {9.253} 16,311 10,033 19,5371 16,807 Bursary arKI award Fund Consists of donations for the future award of bursaries. This will accumulate over time until the level of income the fund generates is sufficient to provide a reasonable bursary for a student. Expendable Endowment fvnds These are funds which have been given to the School to invest in the School's building5. De51gnated funds These funds represent amounts set aside at the discretion of the Govemors. Scholarship fund This scholarship fund is used to indicate scholarships and bursaries currently awarded for speciPIc stages of education, made against future years, fees. Tangible flxed assets fund The fund represents the amount of general funds invested by the School in its tangible fixed a55ets after deducting those assets represented by the endowment funds. Trdr6fers A transfer of £4k has been made bets¥een the endowment and unrestricted funds. This represents the depreciation charged on the proportion of the building represented by the endowment fund. A transfer of1£64kl has been made to reduce the Scholarship FurKI. This is to cover the School's future commitments at 31 ju 2020 to bursaries and scholarships for spe¢ifi¢ pupils. A transfer of {£332kl has been made between the General fund and the Tangible Fixed Asset Fund to ensure that this, plus the Endowment Fund. a equal to tangible fixed assets wthin the consolidated balance sheet. 32
FRENSHAM HEIGHTS EDUCATIONAL TRUST UED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY ZOZO 17. ANALYSIS OF AssEfs 8EEN FUNDS The Group Unrestritted General Funds Restricted Furids Endowment Funds Totsl 2020 Tan8ible fixed assets Net current assets 12,470 4,183 270 12,740 4.462 279 16,653 279 270 17,202 Creditors: amounts falling due after oneyear 16.651 279 270 17,2txi The Charity Tangible fixed assets Investment5 Net current assets 12.466 io 4,168 270 12,736 io 4.447 279 16,644 279 270 17,193 Creditors.. amounts falling due after one year 16,644 279 270 17.193 33
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED NOTES TO THE CONSOUDATED FINANaAL STATEMENTS {CONTJNUEO) FOR THE YEAR ENDED 31 WLY 21r20 17. ATrIALYSIS OF NEfASSEfs BETWEEN FUNDS IContirwJed} The Group Unrestricted General Funds Restricted Fund5 Endowment Funds Total 2019 Tangible fixed assets Net current assets 12,801 3,461 275 13.076 3.733 272 16,262 272 275 CredFtors= amounts folling due after one year 16.260 272 275 16,807 The (hrlty Tangible fixed assets Investments Net current assets 12,796 io 275 13,071 io 3,720 272 16.254 272 275 16.Wl Creditors.. amounts falling due after one year 16,254 272 275 I6.81 PENSION SCIIEMES The School participates in the Teachers. Pension Scheme 1.the TPS") for rts teaching staff. The pension charge for the year includes contribution5 payable to the TPS of £758k12019.. £S34kl and at the year-end £Nil12019.. £Nill was accrued in respert of contributions to this scheme. The TPS is an unfunded multi-employer defined benefits pension scheme govemed by The Teachers, Pensions Regulations 2010 las amended) and The Teachers, Pension Scheme Regulations 2014 las arnendedl. Members contribute on a "pay as you go" basis with contributions from member5 and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Artuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report. which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from I September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.
FRENSHAM HEIGfrrrs EDUCATIONAL TRUST UMITED NOTES TO THE CONSOUDATED HNANaAL STATEMErirs {CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 PENSION SCHEMES Icontlnued) The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme gUlationS and under the approach specified in the Directions, a5 they applied at 5 March 2019. However. the assumptions were considered and set by the Department for Education prior to the ruling in the 'McCloudlSargeant case,. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teochers, Pensions. On 27 June 2019 the Supreme Covrt denied the 8ovemment permi55ion to appeal the Court of Appeal's judgment that transitional provisions Introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court's decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discrimination5 will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 Ortober 2020. The TPS is subject to a tost cap mechanism which was put in place to protect taxpayers against vnforeseen changes in scheme costs. The Chief Secretary to the Treasury, h3ving in 2D18 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal's nJling in the McCloudlSar8eant case and until there is certainty about the value of pen5ion5 to employee5 from April 2015 onwards. The pause was lifted in ju 2020 and the govemment is preparing to omplete the cost control element of the 2016 valuations. which is expetted to be completed in 2021. In view of the above rulings and decisions the assumptions used in the 31 March 2016 Attuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those ontained in the Actuarial Valuation. Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impart or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial statements. The pension cost for the year in relation to other defined contribution scheme5 amounts to £223k12019'. £189kl and ha5 been included in the Statement of Financial Artivities. 19, LEASING COMMtTMEpirs The Trust is committed to makin8 the followin8 payments under operating leases.. Equipment 2020 Equipment 2019 £'ooo Oue in less than one year Due within two and five years Due in more than five years 46 33 42
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED NOTES TO THE CONSOUDATED FINANaAL StATEMENTS (coKnNUED) FOR THE YEAR ENDED 31 JULY 2020 20. C4prrAL COMMThETrirs At 31 july 2020 the School had outstanding retention commitments for.. £183k in respect of the modular build project,. £3.5k in respect of the swimming pool auto-dosing equipment- £4k in respect of the re-branding and website redesign project. The Schoo5 had rK) Other Capital commitments. 21. RELATED PARTYTrlTrillONs In 201920 the School charged £15k12019= £15kl to Enterprises for utilitie5 and associated services. The balance owed to the School at 31 Juty 2020 was £92k12019.. £30kl.
FREN5HAM HEIGHT5 EDUCATIONAL TRUST UMITEO NOTES TO THE CONSOUDATED FINANaAL STATEMENTS {coffflNUED) FOR THE YEAR ENDED 31 JULY 2020 22. CONSOLIDATED ATEMEfr OF FINANCIALACTivmES-COMPARISON FIGURES BY FUND TYPE Total Fund5 2019 Funds Funds Funds Income and endtrwments from: Charltsble AttNities School fees receivable Other educational income Other ancillary tradin8 income Othertrading actNSttes Trading turnover Fundraising Income Other Income Profit on Disposal Investsments Investment income Vduntsry Sources Donations 9,006 210 321 210 321 435 435 17 131 17 131 42 Totsl Income 10.026 10,032 Expendlture on: Raising fund5 Fundraising Trading 214 214 Charitable ActNities Education and grant making 9.322 9,322 Totsl expendltu 9.536 9,536 Net Income 496 Transfers between funds 151 Net movement of funds 495 151 496 Fund balances at l Au8USt 2018 15,767 265 279 16.311 FUND BALANCES AT 31 JULY 2019 16.262 271 274 16,807 37