COMPANY REGlSfK4TION NUMBER: 207173 REGISTERED CHARrrY NUMBER: 312052 FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31JULY2021
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED YEAR ENDED 31JULY 2021 Contsnts Page Governors, Officers and Advisers Report of the Board of Governors 3-12 Report of the Auditors 13-15 Consolidated Statement of FinaTrcial Activities 16 Consolidated Balance Sheet 17 Frensham Heights Educational Trust Balance Sheet 18 Consolidated Statement of Cash Flows 19 Notes to the Con501idated Cash Flow Statement 20 Notes to the Consolidated Financial Statements 21-38
FRENSHAM HÉIGHTS EDUCATIONAL TRUST LIMITED GOVERNORS, OFFICERS AND ADVISERS YEAR ENDED 31 JULY 2021 DIREcfoRS AND GOVERNORS Willi8m Bird Ichairl Gerard Holden (Vice CFiairl Angus Carlill (Treasurer) Claire Fuller (resigned 5 December 20201 Martin Lupton Salw Marriott William Marriott Katherine Poulsom Jackie Sullivan Philip Ward Richard Fry Peter Molyneux Catherine Love lappointed 5 December 20201 FINANCE AND HUMAN RESOUR5 COMMITfEE Angus Carlill Ichairl William Bird Richard Fry Katherine Poulsom Jackie Sullivan GROUP 5 William Bird Ichairl Angus Carlill (Treasurer) Gerard Holden Ivice Chairl Rlck Clarke IHe3dl Ann Marie Dalton-Pillay ICOOI Ileft the school as at 31 October 20211 a3ire FLAller EDUG4TION COMMIThEE Philip Ward ICh3irl William Bird Richard Fry Gerard Holden HEAD Rlck Clarke CHIEF OPEFIATING oFFIR & COMPANY SECRFfARY Ann Marie Dalton-Pillay IAppointed as Corn¥ Secretary on 5 December 2020 and as Chief Operating Officer with effect from 11 January 2021, left the sd)ool as at 310ctober 20211 BURS4R & COMPANY SECREfARY James Bell Ire5igned 25 November 20201 Note: Officers li.e. Chair, Vice Chair and Treasurer) are ex-officio members of all Board committees.
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED GOVERNORS, OFFICERS AND ADVISERS YEAR ENDED 31JULY2021 REGISTERED OFFI Frensham Heights Rowledge Farnham Surrey GU104EA COMPANY NUMBER REGisfERED CHARITY 207173 312052 BANKERS HSBC Bank plc The Borough Farnham Surrey GU9 7NJ SOUCITORS GBH Law Itrading as Goodyear Blackie Herrington Solicitors) 7~8 Innovation Place Douglas Drive Godalming Surrev GU7 IJX AUDITORS Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW INSURANCE BROKERS Marsh Insurance Brokers Limited Rockwood House 9-17 Perrymount Road Haywards Heath West Sussex RH16 3DU
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2021 The Governors of Frensham Heights Educational Trust Limited. who are also the Directors and Charity Trustees, are pleased to present their annual directors, report together with the consolidated financial statements of the charity and its subsidiary for the year ended 31 2021 which are also prepared to meet the requirements for a directors, report and accounts for Companies Act puiposes. The financial statements comply with the ch3ritie5 Act 2011, the Companies Act 2006, the Memorandum and Articles of Associatlon, 2nd Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. DIREoR5, REPORT CONSTITLMON AND OBJECTS Frensham Heights Educational Trust Limited was founded under Memorandum 2nd Articles of Association dated 10 July 1925 as amended on 4 April 1950, 22 June 1996. 11 January 21J)6 and 5 December 2020. It is constituted as a company limited by shares, registered in England, No. 207173, nd Is registered with the Charlty Commission under Charity No. 312052. The Chaiivs principal Objects, as set out in the Memorandum of Association, are the advancement of education, including the provision of a school for boy5 and girls at Frensham, the holding of exhibitions, classes 01 conferences, whether general, professional or technical, and support to other ch3ritable bodies. There has been no change to the Objects during the year. In furtherance of these Objects arld for the public benefit, the School has established 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 pursuance of these Objects. srRUCTURE, GOVERNANCE AND MANAGEMENT Contact Informatlon The Governors, Head, Company Secretary. and principal address of the Charity are as listed on Page l. Details of the Charity's professional advisers are also listed on Page 2. Group Strucbjre and Relatlonshlps The Charity has a wholly owned non-charitable subsidiary, Frensham Heights Enterprises Limited, (Company number 28668641 which was incorporated in 1993. Its principal activity is managing the hiring and lettlng of facilities at the School. Board of Governors One third of 811 directors retire by rotation each year (including any director who is an officerl. Any retiring director will be available for immediate re.election and the expectation Is that dlrectors will serve either two or three terms of three years each. One new Governor was appointed during the year. A re8lSter of skills is maintained for the appointed members of the Board and this information informs the decisions of the Board both in determining the skill sets and experiernce sought through advErtising of forthcomlng vacancies, and in the recommendations for 5uccesslon planning and Board appointments. Member5 of the Governing Body are appointed against the skills register which is considered and approved by the Governing Body on an annual basis. Potential Governors undergo a series of interviews and briefings before attending the Board as observers,. after whlch they may be appointed. New Governors under80 induction sessions
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2021 with the Chair, the Head and Company Setretary to brief them on.. their legal obligations under charity and company law, the charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the Strategy and recent financial performance of the charity. New Govemors are given a tour of the School to meet key employees and they are encouraged to attend appropriate external training events to facilitate the undertaking of their rose. 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 a11 Governors. Governance Code The trustees are aware of the Charity Governance Code published in 2017, and updated in March 2021, which sets out the principle5 and recommended practice for good Eovernance within the sector. During 2020 the Charity began a revlew of current governance arrangements against the principles within the code and prepared an action plan to addre55 areas identified for best-pr3Ctice improvements. That review of governance arrangement Is kept under constant review and modifications and improvemeAts are continuously implemented. Related parties and ctroperatlon with other organlsatlons None of the Governors has received remuneration or other benefit from their work with the school In the year. Any eonnectiors between a trustee or senior manager of the school must be disclosed to the full Board of Governors in the same way a5 any other contractual relationship with a related party. Organlsatlonal Management The Governors, who are also the Charity Trustees, are legally responsible for the general pollcy of the School and for the overall management and control of the School. The Governors meet as a Board at least three times a year. The work of overseeing the implementation of policies is carried out by committees. During the year, two committees were combined to form th Finance 3nd Human Resource5 Committee, which sits at least three times a year priorto each full Board meeting. All other committees sit a minimum of three times per year. During the year and in dirert response to the COVIO-19 pandemic the Board extended the remit of its Group 5 IG51, a steering Eroup of Governors, the Head and Chief Operating Officer. The G5 met regularly through the pandemic period, with major decisions being referred to the board for approval. The committees and their membership are listed on Page l. 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 School's Health and Safety Committee,. the Parents, Committee,. and the Staff Common Room Comrnittee. The day~to-day management of the School is delegated to the Senior Leadership Team ISLTI, which 45 comprised of the Head, Chief Operating Officer, Deputy Head, Deputy Head Academic and Head of Junior School. The Head and the Chief Operating Officer are invited ex-officio to a11 Board and committee meetin8s. The pay and remuneration of the Head and the Chief Operating Officer are Set by the whole Board at their Spring or Summer Board meetings having considered independent benchmark reports across the independent school education sector. In January 2021 a new Chief Operating Officer was appointed to replace the Interim Bursar. The Chief Operating Officer left the school in October 2021 and was replaced by a consultant Interim Bursar in November 2021.
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OFTHE BOARD OF GOVERNORS YEAR ENDED 31 JULY2021 AIMS, OBJEcfivES AND AcfiviTIES Publlc Benefit Alms and Attlvitles In meeting its Objects, the School's public benefit aim is to provide a world class progressive education that e¥nphasises progressive values and focuses on students as individuals to bring out their strengths, with creative and performing arts given equal status alongside more traditional academic subjects and sport. In line with its eth05, the School welcomes students from all backgrounds where It is believed that the prospective student can benefit from the edCatIOn provided at the School. In support of its public benefit 8im the School also award5 annu81 bursaries, which are outlined in the grant making section of the Strategic Report, Thè Board has been 2nd remains committed to growing the number of bursaries awarded in order to wlden participation at the school recognising the significant opportunities such bursaries provide to the recipients and their families. In addition to providing education supported by an extensive range of extra-curricular activities the schoo1 has due regard for Its obligations under the Charity Commission's published guidance on the public benefit requirement Icharities Act 20111, therefore the School also works in partnership with local Schools, charities and organi5ation5 to widen public access to educatlon. In 2020 the school created 3 new post of Assistant Head Istudent Development), with responsibility for outreach and community links, in 2021 the School further supported our community benefit by providing additiorial human resource support to deliver our ambitions in this area. The School continues to work closely with Rowledge Primary School supporting the Forest School programme, offering access to science laboratories and a member of staff is also a Governor there. Other local, maintained sector schools, youth group5, scouts ènd cubs made use of the School's music, art and sports facilities and minibuses. The School has also forged very strong charitable links with All Saints School and Amao OrphanaEe in Malawi. The school has now begun work at a second school Imikuyul in Malawi. Over the last ten years, in addition to working visits by staff and students, practical assistance and charitable funds raised by the School community have had significant impact for people living in those M31awi communities. During the COVID-19 pandemic, the School proactively set up a hub for the creation of PPE for hospital5, care homes and other community beneficiaries, including the creation of 3D prlnted visors, donated gloves and created masks and medical scrubs. Objectlves forthe Year The School'5 principal objectives for the year were to.. l. Maximise student achievement 2. Maximi5e student personal development through effertive tutoring and involvement in opportunities outside the cla55room 3. Inspire and further develop the teaching staff through professlonal development opportunities 4. Further enhance teaching and learning 5. Maintain a roll of approxirnately 520 students for the year 6. Redefine and revamp the Scholarship and Enrichment programme offered throughout the School so that it Is more in keeping with the School's ethos 7. Deliver the School's charitable objects and demonstrable public benePIt 8. M2lntain financial stability 9. Ensure compliance with all COVID-19 regulatory advice and protocols
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2021 STRATEGIC REPORT The Strategic Dlrectlon of the School During the year, the Head completed work on reviewing and updating the school's vision, mission, and values. At its meeting held on 22 May 2021 and following an all-school consultation proce55 the Board warmly welcomed and endorsed new vision and mission ststements, they are as follows.. OUR VISION Empowering tomorrow's change-makers to find their inspiration today through a transformative education OUR MISSION We continue to pioneer a better education, one which celebrates the individual as part of a nurturing and supportive community. amplifies the voices of our community, encouraging 5elf-expression and sharing of ideas. brims with inspiration from strong relationships with outstanding educators in a stimulating environment. The Board is confident that the re-3rticulation of the aims and mission place5 the School firmly in a position to continue to deliver its unique educational offering as a leadinE progressive school for the years to come. OUR VALUES The Board was pleased to endorse the adoption of new school values alongside the vision and mission and to champion the delivery of a values-based culture for the school,. we are extremely proud to support our new value5 which are.. Orlgln(711ty of thought Spirltof tO9etherness Respettof Indivlduallty Courage to ty To support the new vision, mission and values the Board looks forward to receiving a revised Strategic Plan and an underpinning Management plan in autumn 2021 articulating and detailing the delivery of those aims, complete with targets, milestones, and measures of success for the school. Prlnclpal Actlvlty of the Year The princlpal activity continues to be the provision of day and boarding education for boys and Birls aged from 3 to 18 ye2rs. This year the School averaged 52912020= 5251 students of whom 45912020.. 4341 were day students and 7012020.. 911 were boarders. In March 2020 the School sought and was successfully granted the ability to grow its student numbers. Grant-maklng During the year the School set aside funds to support bursaries, which were offered to parents of studentswho could not otherwise afford to send their children to the School, based on 3 comprehensive means-tested assessment of financial need. The proces5 requires parents or Euardians to complete a detailed financial form covering income, expenditure and assets which is reviewed by the Chief Operating Officer and Head, and a representative of the Board of Governors in difficult cases before any award is made. Bursary awards are re-assessed annually. The School's policy is to ensure funds are allocated for bursaries, and also develop fLJrther its programme of Scholarship and Enrichment activities which is open to scholars, as well as the wider School community.
FRENSHAM HEIGHTS EDUCATIONAL TRusf LIMITED REPORT OF THÉ BOARD OF GOVERNORS YEAR ENDED 31 JULY 2021 In support of all these awards the School committed £530k12020'. £614kl this year, of which £471k 12020.. £553kl was awarded in bursaries to 44 students12020.. 451 through its General Fltnd, of which 9 12020.. 111 were 100%. In addition, £3k in hardship bursaries was awarded through funds donated by parents. The availability of all such awards for fee-assistance is advertised on the School's website at www.frensham.or Volunteers Old Frenshamian5, Friends of Frensham, 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 appreciation of this invaluable and continuing support. R84IEW OF ACHIEVEMENTS AND PERFORMANCE Operatlonal Perfomance ofthe School Educational value has been added to student achievement across all 38e 8roups- this has been monitored using nationally recognised prediction Information systems. Through the Scholarship and Enrichment Programme, students gain a we31th of experiences which not only enhance their curriculum learning but also develop essenti31 life skills, 311 of which add value to their time at Frensham. Trips and educational visits provide access to social, cultural, moral, and Spiritual experiences as students are challenged and have the opportunity for experiential learning. Due to COVID~1g, the academic year for providing enrichment was cut short. However, through a remote learning p13tform, students continued to receive access to the curriculum delivered vl3 a full timetable of live teaching. Opportunities for enrichment were creatively identified as the community was brought togethei in a number of ways from students being involved in PPE support for the NHS, care homes and charities, virtual camp OLJts, virtual sports days, charity initiatives and challenges. Exam results continue to be strong and incre35e, in line with the trajectory. This year the exam season was cancelled and Teacher Assessed Grades were used. Frensham ensured that a robust process was followed to ensure that all gracles allocated were fair and well deserved. GCSES.. students achieved 61% 9-7,. 76% 9-6,. 99% 9-4 grade5. A Levels.. students achieved 62% A'/A, 85% A'_B, IOOY¢ A*_E. In addition, some students undertook the Extended Projert Qualific8tiorE (equivalent to half an A Level),. the p3ss rète was l(K)% A'_A. The School continues to attract students in the South East and London through the unique nature of our education and pastoral care and has maintained strong student number5. The School a150 remains active in the international market place and appeals to overseas students, mainly from Europe. FUNDRAISING The School recognises that its alumni and current parents have already cornmitted signrficant funds to the School by the families, payment of school fees and has historically taken a low-key approach to additional fundraising. The approach to fundraising was recently reviewed and plans are in operation to increase our fundraising activity by appointing in the latter part of 20213 Director of Development to develop and deliver a long-term fundraising strategy for the School. Funds raised are placed In a restricted fund intended for the future provision of bursaries. 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 during the year.
FRENSHAM HEIGHTS EDUCATIONAL TrUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2021 FINANaAL REVIEW AND RESULTS FOR THE YEAR Resu5 The School aims to generate sufficient surplus for 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 Board had identified the following strategic priorities for the future.. l. Investment in our people 2. Investment in our estate 3. Inve5tmÈnt in our IT systems 4. An ongoing commitment to enhance our bursary provision thus widening acces5 to the School The Tnajority of the School's income derives from fees and is closely related to Student numbers for the year,. enterprise trading activity also creates income. However, during the pandemic there has been a very significant impact on our ability to generate thè usual contributlon from our enterprise trading activity, we anticipate the recovery of that income stream post pandemic and as public confidence returns. The Board has also supported the rebranding of our enterprise trading arm to enable and support its recoveryto pre-pandemic levels of contribution. In the currentyear the group's net incoming resources amounted to £220k12020.. £393kl. This includes a loss from the trading subsidiary of1£56kl 12020.. £76kl. COVID-19 had a significant imp3Ct on the whole education sector and on our school with remote learning In place throughout the year with the associateLI additional investment required in IT resources, physical infrastructure and other re50urces to ensure the School could reopen and operate safely for all pupils and staff once government enabled schools to do so. Despite the pandemic we continued to operate and to successfully deliver education to our Students. The School also received funding through the Coronavirus lob 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 rebate. Tradlng Companv The wholly owned subsidiary and trading company. Frensham Heights Enterprises Ltd, continues to manage successfully the letting anoj hiring facilities at Frensham Heights. For the year ended 30 June 2021 the trading company did not make any gift aid payments to the School due to COVID-19 and the resultant disruption to weddings and residential lets affecting the trading results. However, plan5 are in place to return to ? position where gift aid payments can be made to the School and recent activities have included è launch event to forge strong relationships wlth local wedding-related suppliers, a marketln8 campaign to focus on raising the social media profile of "Frensham Hall" and a re-brandin8 exercise for the wedding business, with a new website and printed marketing materials. Borrowlng and Investment The School has had no borrowing requirement during the year and holds no investment5. Re5erve5 Level and Pollcy and Flnanclal Mablllty The School's reserves policy is to maintain sufFicient unrestricted income reserves to enable it to meet its short-term financial obligations in the event of an unexpected revenue shortfall taking into 2ccount annual and longer term capital expenditure plans in conjunction with access to external financing. The level of free reseNes will therefore fluctuate within the cycle of the capital pro8ramme. The Group's
FREN5HAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31JULY2021 total reserves of £17,420k at the ye2r-Ènd included £S48k unspent restrlcted Income and £16,872k unrestricted income. £12,186k of this represented the net book value of fixed assets less associated internal funding arrangements and £503k designated for Scholarship funding, made ag3inst future years, fees leaving free reserves of £4,183k12020.. £3,666kl atthe year-end. This compares with a policy level of £2,300k12020.' £1,534kl which would provide cover for up to three months, operating costs 12020- two months). The Trustees, policy is not to maintain free reseNes ir) its wholly owned subsidiary, which therefore has no impart on the School's reserves. The Governors regulaily review the levels of resetves. GOING CONCERN The School produces regular financial information including budgets, forecasts and a longer term strategic business plan, which are closely monitored by the Governors. Through this strategic planning and monitoring of financial information, the Governors are conf ident of moving towards a surplus Position in the medium term, from this year's expected deficit. These budgets, cash flows and forecasts have been reviewed and revised due to the COVID-19 pandemic, to take into consideration the current economic climate and its potential impact. A number of scenarios were produced which considered the wider potentl81 impact from COVIO-19 on the School's key operations, 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 sensitivity analysis on the key assurnptions. The cash flow modelling with sensitivity analys15 indicates that the cash reservès of the School are adequate to meet the charitls obligations as they fall due. Therefore, the Governors have a reasonable expectation that tFie charlty has adequate resources 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 concern b3sis in preparing the financial statement5 as outlinÈd IN the Statement of Governors, Responsibilities. FIXED ASSEtS Acquisitions and disposal of fixed assets during the year are shown in Note 9 to the Financial Statements. Freehold bulldings are currently included in the Balance Sheet at cost less depreciation. The Governors are satisfied that their current market value exceeds their historic cost, but do not wish to spend charitable funds on obt3ining a formal valuation for accounts purposes. RISK MANAGEMENT The Board of Governors is responsible for the identification and management of risk and continue5 to keep the School's activities under critical review at every Board meeting. Detailed consideration of specific risks is also conducted by relevant Governor Committees 2nd their recommendations reported to the Board of Governors. The key controls used by the charity include.. Formal agendas for all Committee and Board activity Comprehensive strategic planning, budgetin& and management accounting Established organisational structure and lines of reporting Comprehensive Risk Register Formal written policies Clear authorisation and approvals,. and Vetting procedures as required by law for the protection of the vulnerable.
FRENSHAM HEIGHTS EDUCATIONAL TRUST IIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2021 The highest priority risks identified by the Board of Governors at the end of the year which could lead to financial and operational challenges are- l. The ongoing cost of the Teachers, Pension Scheme to the School a5 an empliryer 2. An increasing cost base 3. Reduction In boarding student numbers 4. Retention into the sixth form 5. The impact of changing government policy including potential further increases for employerg contributions to the Teachers, Pension scheme increases in National Insurance the loss of business rates relief 6. Any reduction in the demand for independent schoDI education 7. The ongoing imp3Ct of the pandemic 8. The ongoing impact of Brexit 9. Any adverse impact upon the wellbeing of our students and staff 10. Any adverse publicity affecting the School's reputation. Multiple strategies are being employed to manage these risks including enhancing our marketing efforts for our unique Frensham Heights, proposition,. in addition, we will continue to grow and maintain our student numbers; and to exercise tight financial control over spending and debtors. Health and Safety is recognised as 3 significant area of non-financi31 risk and it is closely managed. The risks range From fire 2nd infrastructure damage to personal risks. The risks assoclèted with all 8Ctivities are minimised by prever)tatlve planning and risk assessment. The Board of Governors is satisfied that for all major risks identified, appropriate controls have been put in place and are maintained to mit18ate the risks. It Is recognised that systems can provide reasonable but not absolute assurance that major risks have been effectively mitigated. TEACHER5, PENSION SCHEME In common with much of the sector, the Schools, largest cost Is that of staff costs in particular the need to fund pension benefits for our staff. This has proved increasingly challengin8 in respect of the Teachers, pension scheme due to the increasir)g employers, contributions now required into that scheme. The Governors recognisin8 their duty to act prudently In connection with the longevity of the School and have considered.. the ongoing impact of the increased tontrlbution on the School's finances. They consider that the impact is a very significant one wlth implications for the future viability of the School. whether the School should continue with membership of TPS and to try to mitigate the extra costs by, for example, increasing fees, absorbing the increased costs by having lower surpluses, andlor making cost reductions by having fewer staff as a result of having increased classroom sizes and/or a reduced number of extra-curricular activities. c. The need to ensure the School ha5 adequate financial resilience to invest in our people, in our estate. in our IT systems and in our important strategic priority,. our commitment to widening access through a larger number of bursaries. d. the effect that leaving membership of TPS could have on the School and what alternative pension scheme could be offered in place of membership of TPS. 10
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENOED 31JULY 2021 Therefore, on 20 March 2021 the Governors approved the commencement of a formal consultation on the Schools, membership of the TPS which is scheduled to conclude at the end of November 2021. FLrruRE PLANS The School's Strategic and Business Plan, charitable objects and ethos provide the strategic direction for future planning,. these are captured and articulated in the School's Management Plan 2020-2021. This document sets out the specific ar)d detailed plans for next year. The key objectives within the current plan are.. 1. Student Achievement. Maximise student achievement through enhancements to Approaches to Learning and the role of tutors. 2. Student Personal Development. Maximise student development by improving oanIS8t1onal ski115. Further refine the PSHE IPersonal, Social and Health Education) programme. 3. Marketing. Maintoin r*umbers around 525 and focus marketing effort on retention from Year 11 and recruitment into the Sixth Form and in the Early Years. Develop Frensham's posltion as a thought leader for progressive education. 4. Parent CommunicationlReputation. Build on the success of the new Parents, Information Evenings. Review effectiveness of p2rental communlcations. 5. Finance and Site/Facilities Development. Implement improvements to Finance and HR systems. Produce an Estates Masterplan and a supporting space utilisation plan to enable and inform long-term capital planning for the estate. Continue initiatives to increase energy efficiency and work to sustain the woodlands. 6. Public Benefit. Malntain strong links with local schools, the local community Ifgllowing success of the PPE provision for the NHS over lockdown) arnd partner schools in Malawi. BOARD OF GOVERNORS The Governors are all Oirectors 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 2021 io io 31 July 2020 io io io io William Bird Angus Carlill Claire Fvller Gerard Holden Martin Lupton Sally Marriott William Marriott Katherine Poulsom J8ckie Sullivan Philip Ward Richard Fry Peter Molyneux Catherine Love io io io io io io io io io io
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED REPORT OF THE BOARD OF GOVERNORS YEAR ENDED 31 JULY 2021 sTATEmErOF GOVERNORg RESPONSIBILITIES The members of the Board of Governor5 (who are also the directors of Frensharn Heights Educational Trust for the purposes of company lawl are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and FR5 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. Company law requires the rnembers of the Board of Governors to prepare fin2ncial statements for each financial year. Under company law they must rnot approve the financial statements unless they are satisfied that they give a true and fair view of the charitable company and the group, 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.. select the most suitable accounting policies and then apply them consistentlyi observe the methods and principles in the Charities SORP 2019 IFRS 1021; make judgments and estimates that are reasonable and prudent,. st3te whether applicable UK accounting stzndard5 have been followed, subject to any material departures disclosed and explained in the financial statements,. and 5. prepare the financial statements on the going concern basis unless it is inappropriate to presL¢me that the charitable company will continue in business. The members of the B03rd of Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions. disclose with reason3ble accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity's constitution. They are also 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. Insofar as each of the Directors, as members of the Board of Governors, at the date of approval of this report is aware there is no relevant audit information (information needed by the Company's auditor in connection with preparing the audit report) of which the Company's audltor is unaware. Each member of the Board of Governors has taken all the steps that he or she should have taken as a member of the 803rd of Governors to make himself or herself aware of the relevant audit information and to establish that the Comp3n¢s auditor is aware of that inform3tion. AUDITORS Crowe U.K. LLP have expressed their willingness to continue in office as auditors. Thi5 Annual ReF)Ort. including the Strategic Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Governors of Frensham Hei8hts Educational Trust Limited on 11 December 2021 and is signed as authorised on its behalf by: William Blrd: Dlrector& Chalr of Governors 12
Independent AudEtorfs Rewt to the Members of Frensham Heiqhts Educatlonal Trust Umlted Qplnlon We have audited the financial statements of Frensham Heights Educational Trust Limited I'the charitable company'l and its subsidiaries I'the group'l for the year ended 31 july 2021 which comprise the Group Stètement of Financial Artivities, the Group and Company Balance Sheets, the Group Statement of Cash Flows and notes to thefinancial statements, including significant accounting policie5. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). Ill our opinion the financial statements.. give a true and fair view of the state of the group's and the charitable company'5 affairs as at 31 July 2021 and of the Eroup's income and expenditure, for the year then ended- have been properly prepared in accordance with United Kin8dom General Accepted Accountlng Practlce,. and have been prepared in accordance with the requirement5 of the Companies Act 2006. Basls for oplnl We conducted our audit in accordance with International Standards on Auditing ILJKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditols responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethic?I requirements that are relevant to our audit of the Pinancial staterllents in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audlt evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlrygto 8olng corKem In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accoLJntin8 In the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to eventi Dr conditions that, individually or colleclively, may cast significant doubt on the charitable company's or the group's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Informatlon The trustees are responsible for the other inlormation contained within the annual report. The other information comprises the information included in the annual report, other than the financial staterllents and our auditorfs report thereon. Our opinion on the financial statements does not cover the other information 2nd, except to the extent otherwise explicitly stated in our report, we do not express any Form of assurance conclusion thereon. 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 misstaternents, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a matÈrial misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 13
Oplnlons on other matters prescrlbed by the Cornpanles Act 2DJ6 In our opinion based on the work undertaken in the course of our audit the information given in the trustees, report, which includes the directors, report and the strateglc report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements- and the strategic report and the directors, report included within the trustees, report have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In light of the knowledge and underst2ndlng of the group and ch2rltable company and their environment obtained in the course of the audit, we h3ve not identified material misst3temeats in the strategic report or the directors, report included within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us,. or the financial statements are not ir) agreement with the accounting records and returns,. or certain disclosures of trustees, reMneratIOn specified by law are not made; or we have not received all the information and explanations we require for our audit. RespryffjlbllTtles of trustees As explained more fully in the trustees, responsibilities statement, thÈ trustees (who are èlso the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financi315tatements and for being satisfied that they give a true and fair vlew, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable companls abillty to continue as a going concern, disclosing, as applicable, matters related to going concern and usinE the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistlc 31ternative but to do so. Audltorfs responslbllltlesforthe audlt of the f]nancl31 statements Our objective5 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 a55ur3nce, but is not a guarantee that an audit conducted in 3ccordance with ISAS IUKI will always detect a material misst3tement 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 decislons of users taken on the basis of these financial statements. Details of the extent to which the audit was considered capable of deterting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statement5 is located on the Financial Reporting Council's website at.. www.frc.or auditorsres onsibilities. This description forms part of our auditorfs report. Extent to whlch the audSt was consldered capable of detertlng IrreBularftles, Includln8 fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We Identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence SL¢fficient and 14
appropriate to provide 3 basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group oper3tes, focusing on those laws and regulations that have a dirett effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation. together with the Charities SORP IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financi85 statements but compliance with which might be fundamental to the charitable company's and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education IlndependÈnt School Stand2rdsl Regulations 2014. AditIng standards limlt the required audit procedures to identify non-compliance with these12ws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We Identified the greatest risk of material impact on the financial statements from irregularities, including frzud. to be within the iecognition and classification of school fees and other income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularitie5, sample testing on the posting of journals, reviewing accounting estimates for biases, performing analytical reviews ar5d testing income for completeness, reviewing regulatory correspondence with the Charity Cornmission, Independent Schools Inspectorate, Ofsted and reading tninutes of meeting5 of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even thouEh we have properly planned and performed our audit in accordance with auditirkg standards. For example, the further removed non-compliance with laws and regulations lirregularitiesl is from the events and transactions refletted in the financial statements, the less likely the inherently limited procedures required by auditinE Standards would identify it. In addition, as with any audit, there remained a higher risk of non- detection tsf irregularities, as these may involve collusion, forgery. intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all13ws and regulations. Use of our report This report is made solely to the ch3ritable company's members, 35 a body, in accordance wlth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable companls Membe 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 charitable company and the charitable company's member5 as a body, for our audit work, for this report, or for the opinion5 we have formed. Andrew Thomas Senior Statutory Auditor For and on behalf of Crowe U.L LLP Statutory Auditor London Date.. 17 January 2022 15
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Intome and Expendlture account) FOR THE YEAR ENDED al JULY 2021 Total Unrestrkted Restrlcted Endowed Funds Funds Funds Funds 2021 £'oco £.0 £'LYio £,003 Total Funds 2020 eooo Income and endowments from: Charftsble Attlvltles School fees receivable Other educational income Other ancillary trading income Othertradln8 attfvltles Trading turnover Other Income Profit I ILossl on disposal Investments Investment income Voluntary Income Grants and Donations 9,076 127 54 9,076 127 54 8,751 187 188 34 16 34 16 247 34 29 122 128 241 Total Income 9,434 9,441 9,677 Expendlture on: Ralslng funds Fundraising Trading 84 84 156 CharRable Activitles Education and grant making 9,134 9,137 9,118 Total expendlture 9,218 9,221 9.284 Net Income 216 220 393 Transfers between funds Net movement of funds 16 151 151 221 220 393 Funds broUghtfOard l August 2020 16,651 279 270 17,200 16.807 Funds carrled forward 31 July 2021 17 16,872 283 265 17,420 17.200 All arrounts relate to continuing operations. There are no recognised gains or losses Other than the results for the year set out above. The Notes on Paees 21 to 38 form part of these financial statements 16
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED (Company Number: 207173) CONSOLIDATED BALANCE SHEET ASAT31 JULY 2021 Notss 2021 2020 £'ooo FIXED AssErs Tangible flxed assets 9a) 12,451 12,740 12.740 12.451 CURRENf ASSETS Stocks Debtors.. amounts falling due within one year Cash at bank and in hand li 398 5,839 274 5,554 5,829 CREDITOPS: amounts falling due within one year 12 1,266 1,367 NEfcuRRENT ASSErs 4,972 4.462 TOTALASSEfs LESS CURRENT LIABILITIES 17,423 17,202 CREDITORS: amounts falling duo after more than one year 13 NEfA55ETS 17,420 17,200 CAPITALAND RESERVES Called up share capital THE FUNDS OF THE CHARITY UNRESTRicfED FUNDS Scholarship fund Tangible fixed asset fund General fund 15 16 516 12,470 3,665 16,651 12,186 4,183 16,872 RESfRIED FUNDS Endowments Bursary and award funds 265 283 270 279 549 548 TOTAL FUNDS 17 17,420 17,200 The profit for the financial year dealt with in the financial statements of the parent Cornpany was £277k 12020.. £315kl. Approved an authorised for issue by the Board of Governor5 on 11 December 2021 William Bird Governo and Directors Angus Carlill The Ndte on Pages 21 to 38 form part of these financial Statements 17
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED Icompany Number: 207173 BALANCE SHEET ASAT 31 JULY 2021 2021 2020 FIXED AE[S Tangible fixed assets Investments 9bl io 12,449 12,736 io 12,746 12,459 CuRRETr AssErs Stocks Debtors.. amounts fzlling due within one year Cash at bank and in hand li 391 5,687 6,078 273 5,383 5,657 CREDITORS: amounts falling due within one year 12 1,210 NCuRRE A55Ers 5,011 4,447 TOTALASSEfs LESS CURRENT LIABILITIES 17A70 17,193 CREDITORS: amounts falling after more than one year 13 NET ASSETS 17,470 17.193 cAPALAND RESERVES Called up share capital THE FUNDSOFThE CHARITY UNRESTRICTED FUNDS Scholarship fund Tangible fixed asset fund Gener31 fund Is 503 12,186 4,233 516 12,470 3,658 16,644 16,922 RESTRICTED FUNDS Endowment5 Bursary and award funds 265 283 270 279 548 549 TOTALFUNDS 17 17,470 17,193 Approved and authorised for issue by the Board of Governors on 11 December 2021. William Bird Governors and Directors AnEUS Carlill The Note on Pages 21 to 38 form part of these financial statements 18
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED CONSOUDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31JULY 2021 2021 2020 £000 eooo Cash flows fr{ operatln8 acthitles Net cash provided by operating activities 620 921 Cash flows from Investlng artlvltles: Payments for tangible fixed assets Non-cash payments for tangible fixed assets Proceeds on sale of tangible fixed assets Investment income and bank interest received 13421 (267) 29 Net cash (used In) / provlded by InvestlnB actlvltles 1335) (237) Cash flows from ftnanclry atttI Finance Costs Paid Net cash provtded by flnanclnB actlvltle5 Change in cash and c3sh equivalent5 in the reporting period 285 Cash and cash equivalents at the beginning of period 5,554 4,870 Cash and cash equivalents at the end of the reporting period 5,839 5,554 The Notes on Pages 21 to 38 form part of these financial Statements 19
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2021 lil Reconclllatlon of net Income to net cash flow from operatlng actlvltles 2021 2020 rock) £'o(po Net incoming resources Elimination of non~oper3ting cash flows.. 220 393 Investment income Deprèciation Charge Non Cash-Flow Item Profit on sale of assets Ilncreasel I decrease in debtors Ilncreasel / decre35e in stocks Increase / Idecreasel In creditors Increase / Idecreasel in fees in advance scheme creditors Increase / Idecreasel in parent5, deposits (29) 603 631 {ii 11241 (i) 42 151 12021 (224) 219 149) (84J 400 528 Net cash provlded by operatlng attivlties 620 921 lill AnaEysls of cash and cash equivalents 2021 2029 Eooo Cash held on current account Cash held on deposit Petty cash held 2,329 2,032 3,519 s39 5,554 20
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY2021 COMPANY INFORMATION: The School is a Public Benefit Entity registered zs a charity in England and Wales and a company limited by guarantee. It was incorporated on IQ JLtly 1925 (company number: 2071731 and registered a5 a charity on IS August 1966 Icharity number.. 3120521. ACCOUNTENG POLICIES Basls of preparation The financial statements have been prepared under the historical cost convention in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFR51021, the Companies Act 2006 and the 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 Golng Conorn: As detailed in the Report of the Governors, the Governors have reviewed and revised the School's f inancial forecasting in IiEht of the COVID-19 pandemic, to take Into consideration the cUrnt economic climate and its potential imp3Ct. A number of scenarios were produced which considered the wider potential impact from COVID-19 Dn the School's key operations, cash position, sources of income and planned expenditure. Revised forecasts have been prepared togEther with cash-flow5, based on the most likely expected outcome from these scenarios, Wlth sensitivity 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. Having regard to the above, the current cash position, and the expetted cash flow over the next 12-24 months the Governors have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School's financial viability. Accordingly, thev continue to adopt the going concern basis in preparing the financial statement5 a5 outlined in the Statement of Governors, Responsibilities. The functional currency of the School is considered to be GBP because that is the currency of the primary economic environrnent in which the School operates. The charity has taken advantsge of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement and certain disclosures about the charivs financial instruments. The consolidated accounts include Frensham Heights Enterprises Limited, made up to 30 June 2021. In accordance wlth the exemption allowed under Section 408 of the Companies Act 2006, the charity's Statement of Financial Acttvities is not separately presented. Crftlcal accourtln8Jud8ements and key sources If e5tlmatlon 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 other factors that are considered to be relevant. Actual results may differ from these estimates. 21
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 ACCOUNnNG POLICIES (Continued) The estimates and undertying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or irs the period of the revision and future periods if the revision affected current and future periods. In the view of the trustees, no assumptions concerning the future or estimation uncertainty affectinE 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 Fees and slmllar Income Fees receivable 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 dedurting allowances, scho12rships and other remissions granted by the School. Investment Income Investment income from dividends, bank balances and fixed interest securities are accounted for on an accruals basis. d) Voluntsry Income Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reasonablyquantified and the economic benefit tothe School is considered probable. Donations receivable for the general purpose of the School are credited to 'unrestricted funds,. Donations for purposeg restricted by the wishes of the donor are taken to 'restricted funds, where these wishes are legally binding on the Governors. Donations required to be retained as capital in accordance with the donorfs wishes are accounted for as 'endowments'_ permanent or expendable according to the nature of the restriction. Government Erants are recognised on the perforrllance model, when the Company has complied with any conditions attaching to the grant and the grant will be received. The grant in connection to the job retention scheme has been recognised in the period to which the underlying furloughed staff costs relate to. Taxatlon The School is a reElStered charity. As such it is 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. Tan8lble assets and depreclatlon All items with a value greater than El,000 have been capitalised. Depreciation is provided annually at the following rates.. Freehold buildings Timber buildings Modular buildings Motor vehicle5 Furniture and other equipment Solar Panels Computer equipment 2% of cost 5% to 6.7% of Cost 4Y¢ of cost 25% of cost 10%- 20% of cost 5% of cost 20% to 33.3% ofcost 22
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2021 ACCOUNTING POLICIES Icontlnuedl g) Expendlture Expenditure is accrued as soon as a liability is considered probable, discounted to present value For longer-term liabilitie5. Certain expenditure is apportioned to cost categories based on the estimated amount attributable to the activity in the year. The irrecoverable element of VAT is included with the item of expense to which it relates. Raising funds comprise those costs directly attributable to the trading subsidiary (Note 31. SLtpport costs comprise a proportion of staff costs together with a proportion of overheads of the School. Governance costs are those incurred in connection with the governance of the School and compliance with constitutional and statutory requirements. Operatlng lea5e5 Rentals under operating le2ses are charged on a straight-line basis over the lease term, ever¢ if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. h) Stock Stock represents goods for resale and is stated at the lower of cost and net reali5able value. J) Penslon 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 is not possible to identify the assets and li2bilities 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-teaching staff are members of other def ined contribution schemes. All non- teaching staff are entitled to join a group personal pension scheme, which complies Wlth the requirements for a Stakeholder Pension Scheme. Flnanclal Instrumerts kl Basic financial instruments are initially recognised at transaction value and subsequent measured and amortised with the exception of investments 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 working capltal. Financial liabilities held at amortised cost comprise trade creditors, other creditors, accruals and deposlts. 23
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31JULY 2021 a4ARITABLE AcllviTIES- FEES RECEIVABLE 2021 2020 £'ooo Fees recelvable conslst of: School Fees Less-. Total bursaries, grants and allowances Less: COVID-19 Fee refund 10,198 16441 {4781 9,886 (783) {352J 9,076 8,751 NEf INCOME Net income is stated after charging: Oepreciation of tangible fixed assets Auditors, remuneratlon - Audlt Other service5 631 22 603 22 Staff costs (Note 81 Operating lease costs 6,914 62 6,836 50 24
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIOATED FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 TRADING INCOME Fren5ham Heights Education31 TrLtst Ltd owns the entire issued share capital of Frensham Heights Enterprises Ltd, Company Number 2866864, registered address Frensham Heights, Rowledge, Farnham, Surrey GUIO 4EA. The principal activity of this company is that of managing letting and hiring facilities available at Frensham Heights. 30 June 2021 eocii 30 June 2020 eooo Turnover Cost of sales 34 (331 247 (116) Gross profit Adrninistration expenses 131 {56) 1571 Operating profit Interest receivable 1561 75 Profit on ordinary activities before taxation Taxation Profit on ordin3ry artivities after taxation 1561 76 1561 76 Retained earnings at the start of period Profit for the year 1561 76 Gift aid to Frensham Heights Educational Trust Limited 10} f76) Retained earnings at the end of period 1501 Trading costs detsiled above are disclosed in the con501idated Statement of Financial Activities as follows Cost of sales Administrative expenses Audit and professional fees included in govemance costs 33 57 (6) 116 56 (6J Fundraising trading as on Statement of Financi31 Activities 166 The School's and compan¢s year-end are non co-terminus and it is not considered necessary to have identical year ends as it is not expected that any transactions will occur in the trading company in the intervening period which will have a material impact on the consolid3ted accounts. Administration expenses of the subsidiary include auditors, remuneratlDn for audit services of £4k12020 - £4kl and for other servlces £2k12020 - £lkl. These have been included in governance costs in the consolidated statement of financial activitie5. 25
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31JULY 2021 INVESfMETrif INCOME Totsl 2021 Tottsl 2020 £'ooo Bank deposit account interest 29 INCOME FROM CHARITABLE ACIVITIES 2021 2020 £'o(10 Other educatlonal chanknble actNltles Entrance and registration fees Courses and sub~lettings 104 83 127 187 Otheranclllary attlvitles Insurance commissions School Trips, Meals and Other Income 188 188 ANALYSIS OF EXPENDrruRE Staff Costs roco Other Totsl 2021 Depreclatlon Trading expenditure 45 45 38 38 Charitable actlvltles Education and welfare Housekeeping Catering Transport Maintenance and estate Support costs and governance 4,832 355 298 630 5,866 601 555 23 246 257 23 391 317 301 L083 1,4 6.869 1,638 630 9,137 Total expendlture 6,914 1,676 631 9.221 26
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 ANALYSIS OF EXPENDITURE Icontlnued) SUPPORTCOStSAND GOVERNANCE 2021 £'ooo 2020 Salaries Staff recruitment and travel Marketing and profession31 fees Telephone, postage, printing, stationery Miscellaneous admin costs Governance costs (Note 71 1,084 28 200 23 46 20 1,062 82 120 27 24 1,401 1.338 Governance costs include auditors, remuneration for audit services of £17k12020-. £17kl and for other services £2k 12020.. £4kl and the reimbursement of two Governors, travelling and subsistence expenses of £439 12020 two Governors: £7561, as well as £84 for Governor miscellaneous and training costs. STAFF Cosrs 2021 eooo 5.023 494 994 2020 rooo 4.960 496 982 Wages and salaries Social security costs Other pension costs 6,511 6,438 stsff not directly employed by the School 403 397 6,914 6.835 Na No. The average monthly staff headcount was.. Teaching Administration Other loo 32 28 99 30 26 160 155 Included in the above, one permanent member of staff is employed in the trading subsidiary 12020.. One). In addition, ad hoc staff are called upon throughout the year to provide support for functions in the trading subsidiary. 27
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 STAFF COSTS (Contlnuedl 2021 2020 £'ooo The total employee benefits lincluding employers, pension and national insurance contributions) of key management personnel were.. 957 998 The following number of staff received remuneration in excess of £60,000 in the year: 2021 2020 £60,001 to £70,000 £70,001 to £80,000 EIIO,001 to E120,000 Neither the governors nor persons connected with them reteived any remuneration or any other benefits from any employmernt with the charity or related entity within the year12020- £01. Included in the tot31 staff cost flgures above are termlnation payments to employee5 authorised during the year totalling £43k12020 - £66kl. All authorised payments were fully paid to employees during the year. 28
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED NOTES TO THE CONSOLIDATED FINANaAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 TANGIBLE FIXED A55Ers a)The Group Freehold Land, Buildings and Improvements E'DOO Plant, Furniture and Equipment £'i)00 Motor Vehicles £'ooo Total Cost At l August 2020 Additions Disposals At 31 Juiy 2021 16,523 181 1,941 161 1351 2x67 159 18,623 342 1351 18,930 16,704 159 Depreciation At I ALJgust 2020 Charge for the year Disposals At 31 July 2021 4,643 405 1,099 212 1351 L276 141 14 5.883 631 1351 6,479 155 Net book value At 31ju2021 At31 July 2020 11,656 11,880 791 12,451 12,740 842 18 bl The School Freehold Land, Buildingsand Improvements £'o Plant, Furniture and Equipment £'ooo Motor Vehicles £'ooo Total £'ooo Cost At I Au8USt 2020 Additions Disposals At 31 July 2021 16,510 181 1,931 162 1311 2,062 159 18,600 343 1311 18,912 16,691 159 Depreciation At l August 2020 Charge for the year Disposals At31July2021 4,635 404 1,088 212 1311 1.269 141 14 5,864 630 1311 6,463 5,039 155 Net bookvalue At 31 July 2021 At31 July 2020 11,652 11,875 793 12,449 12,736 843 18 There are no Freehold Land, Buildings and Improvements in the course of construction this year12020.. £70kl. There is no Plant, Furniture and Equipment work in proEress this year12020.' £22kl. 29
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE Aft ENDED 31 JULY 2021 10. INVESTMENTS FrerhaM Hel8hts Enterprlses Ltd 2021 2920 E'ooo £1 Ordinary shares at par in Frensham Heights Enterprises Ltd io io io io Company The company holds £10,000 ordinary Shares, the entire issued share capital, of Frensham" Heights Enterprise5 Limited. The principal activity of the investee is the letting of facilities available at Frensham Heights School. At 30 lune 2021 Frensham Heights Enterprises Ltd had capital and reserves which totalled1£40kl 12020.. £17kl. The turnover for the year was £34k12020.. £247kl. Frensham Heights Enterprises Ltd is a company registered in England 3nd Wales, registered number 2866864. 11. DEBTORS: amountsfalllng due wlthln oneyear Group School 2021 2020 £'ooo 2021 eoc(J 2020 Amounts due from group undert3king Fees debtors Sundry debtors and prepayments 117 97 177 92 83 98 97 301 83 191 398 274 391 273
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANaAL STATEMEpifs (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 12. CREDITORS: amounts falllrB due wlthln one sear Group School 2021 2020 £'ooo 2021 £'oco 2020 £'ooo Amounts owed to group undertaklngs Fees deposits Trade creditors Other creditors and accruals Fees received in advance Deferred income 117 471 80 520 171 128 341 127 471 282 94 139 81 520 170 120 341 59 103 139 152 1.266 1,367 1,067 1,210 The total amount held in relation to fees deposits of E471k is included above. In the normal course of busines5, the expected repayment of these amounts will be £73k within one year and £397k after more than one year. The School hold5 pupil fee deposits. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The school does not therefore have an unconditional right to retain the individual deposits lor at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposlts held at 31 July 2021 have been included within current liabilities. The prior year pupil fee deposits balance has been similarly represented. Deferred Income Reconclllatlon £'ooo 127 103 1791 Balance brought forward at l August 2020 Additions in currer)t year Release of deferred income Balance carried forward at 31 July 2021 151 The deferred income balance relates mostly to future year school trips income,. and on the trading subsidiary, future year residential let5 and weddin85. 31
FRENSHAM HEIGTrtTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 13. CREDITOR5: amounts falllng due after morethan one year Group School 2021 2Q20 £'ooo 2021 ecoo 2020 £'ooo Deferred income 14. FEES IN ADVAN SCHEME The School is not currently offering a Fees in Advance Scheme due to the low interest rate environment. 15. SHARE CAPITAL 2021 2020 Authorised 100 Ordinary shares of £1 each loo 100 Allotted, issued and fully paid 100 Ordinary shares of £1 each loo loo 16. MOVEMENT ON FUNDS Balance at l August 2020 £'ooo Transfer Between Funds £'ooo Balan at 31 July 2021 Incoming Resources Resources Expended £'ooo £'o Re5trlcted Fund5 8ursary and award fund Music award fund Endowment fLsnd 272 131 273 io 265 270 549 151 Isi 131 Desl8nated Funds Scholarship fund Tangible fixed assets fund 516 12,470 1131 12841 503 ,186 General Fund 3,665 9,436 19,2201 302 4,183 17,200 9,443 19,2231 17,420 32
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOUDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 16. MOVEMENT ON FUNDS Icontlnuedl Balance at l August 2019 £'ooo Transfer etween Funds £'ooo Balance at31Ju 2020 Incoming Resources Resource5 Expended £'ooo £'ooo Restrfcted Funds Bursary and award fund Muslc award fund Endowment fund 266 17 Iiii 272 274 545 141 141 270 549 19 Iiii DeslBnated Funds Scholarship fund Tangible fixed assets fund 580 12,802 1641 13321 516 12,470 General Fund 2,880 9,657 19,2721 400 3,665 16,807 9,676 19,2831 17,200 Bursary and award Fund Consists of donations for the future award of bursarie5. This will accumulate over time until the level of income the fund generates is sufficient to provide a reasonable bursary for a student. Expendable Ermfowment funds These are funds which have been given to the SchoDI to invest in the School's buildings. Deslgnated funds These funds represent amounts set aside at the discretion of the Governors. Scholarshlpfund This scholarship fund is used to indicate scholarships and bursaries currentw awarded for speclfic stages of education, made against future years, fees. TanBlble fixed assets fund The fund represent5 the amount of general funds invested by the School in it5 tangible fixed a55ets after deducting those assets represented by the endowment funds. Trarsfers A transfer of £5k has been made between the endowment and unrestricted funds. This represents the depreciation charged on the proportion of the building represented by the endowmentfund. A transfer of1£13kl has been made to reduce the kholarship Fund. This is to cover the School's future commitments at 31 july 2021 to bursaries and scholarships for Specific pupils. A transfer of1£284kl has been made between the General fund and the Tangible Fixed Asset Fund to ensure that this, plus the Endowment Furnd, are equal to tangible fixed assets within the consolidated balarkce sheet. 33
FRENSHAM HEIGHTS EDUCATIONAL TRUST UMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31JULY2021 17. ANALYSIS OF NEfAssEfs BEfwEEN FUNDS The Group Unrestricted General Funds Restrlcted Funds Endowment Funds Totsl 2021 Tangible flxed assets Net current 35sets 12,186 4,689 265 11451 4,972 283 283 265 17,423 Creditors.. amounts falling due after one year 16,872 283 265 17N20 The Charlty Tangible fixed assets Investments Net current assets 12,184 io 4,728 265 12,449 io 5,011 283 16,922 283 265 17A70 Creditors.. amounts falling due after one year 16,922 283 265 17. 470 34
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTE5 TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31JULY 2021 17. ANALYSIS OF NEfASSEfs 8EfwEEN FUNDS Icontlnuedl The Group Unrestricted General Funds Restricted Endowment Funds Funds Total 2020 Tangible fixed a55et5 Net current assets 12,470 4,183 270 12,740 4A62 279 16,653 279 270 17.202 Creditors: amounts falling due after one year 16,651 279 270 17.2CK) The Charlty Tangible fixed assets Investments 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 18. PENSION SCHEMES The School participates in the Teachers, Pension Scheme I'the TPS'I for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £772k12020.. £758kl and at the year-end £Nil12020- £Nill was accrued in respect of contributions to thi5 scheme. The TPS is an unfunded multi-employer defined benefits per)sion scheme governed by The Teachers, Pensions Regulations 2010 las amendÈdl and The Teachers, Pension Scheme Regulations 2014 las amended). Members contribute on a "pay as you go" bas15 Wlth contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provlded by Parliament. The employer contribution rate is set by the Sectsry of state following scheme valuations undertaken by the Government Actuary's Oepartment. The most recent 2Ctuarial 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%. 35
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Icof4TINUEDI FOR THE YEAR ENDED 31 JULY 2021 The 31 March 2016 Valuation Report W35 prepared in accordance with the benèfits set out in the scheme regulation5 and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prlor to the ruling in the 'McCloud/Sargeant case, Thi5 case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions Includlng the Teachers, Pensions. On 27 June 2019 the Supreme Collrt denied the government permission to appeal the Court of Appeal's judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Courvs decision 3nd has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021" that it intends to proed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between l April 2015 and 31 March 2022 at the point they become payable. The TPS is subject to a cost cap mechanism which was put in p13ce to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the TaSUry, having in 2018 announced that there would be 3 review of this cost cap mechanism, in January 2019 nnounced a pause to the cost cap mechanism following the Court of Appeal's ruling in the Mccloudlsargeant case and until there is cert31rity 3bout the v31ue of pensions to employee5 from April 2015 onwards. The pause was lifted in July 2020, arnd a consultation was launched on 24 lur¢e on proposed changes to the cost control mechanism following a review by the Government Actuary. Following the public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations. In view of the above rulings and decisions the assumptions used irs the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation. Until the cost cap mechanism review is completed it is not Possible to conclude on any flnancial impact or future changes to the contribtjtion rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these finaAclal statements. The pension cost for the year in relation to other defined contribution schemes smounts to £222k12020.. £223kl and has been included IN the St3tement of Financial Activities. 36
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANaAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 19. LEASING COMMITMENTS The Trust is committed to making the following payments under operating leases.. Equlpment 2021 roc Equlpment 2020 £'o( Due In less than one year Due within two and five years Due in more than five years 62 219 48 42 20. CApAL COMMrrMENTS At 31 July 2021 the School had no material outstanding retention commitments and no other capital commitments. 21. RELATED PARTY TRANloN5 In 2020-21 the School charged £16k12020.. £15kl to Entefprises for utilities and associated services. The balanee owed to the School at 31 July 2021 was £117k12020'. £92kl. 37
FRENSHAM HEIGHTS EDUCATIONAL TRUST LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 22. CONSOLIDATED STATEMENTOF FINANaALAcfiviTIES- COMPARISON FIGURES BY FUND TYPE Totsl Funds 2020 £otM) Unre5trlcted Re5trlcted Endowed Funds Funds Funds £>j e(xxi eo Income and endowments from: Charltable Actlvltles School fees receivable Other educational income Other ancillary trading income Othertradlng actlvttle5 Trading turnover Other Income Profit / (Lossl on disposal Investments Investment income Voluntary Income Grants and Donations 8,751 187 188 8,751 187 188 247 34 247 34 26 29 225 16 241 Total Income 9,658 19 9,677 Expendlture on: Ralsln8 funds Fundraising Trading 166 166 Charltsble Actlvltles Education and grant making 9,107 li 9,118 Totsl expenditure 9,273 li 9,284 Net Income 385 393 Transfers bètween furnds Net movement offunds 16 141 141 389 393 Funds brought fonvard l Au8U5t 2019 16,262 271 274 16,807 Funds carrled forward 31July 2020 17 16,651 279 270 17,200 38