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Annual Report and Financial Statements 2020

Company Number: 678565 Charity Number: 312069

MICKLEFIELD SCHOOL (REIGATE) LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2020

INDEX

Review of the Year …………………………………………………......…….……………..………….…… 2 - 5 Governors’ Report …………………………………………………………..…………….………………….. 6 - 12 Independent Auditor’s Report ………………………………….……..…….………….…..………… 13 - 15 Statement of Financial Activities …………………………………………..………..………………… 16 Balance Sheet …………………………………………………………………………..………………………. 17 Statement of Cash Flows ……………………………………………………………….…………………. 18 Notes to the Financial Statements ………………………………………………..………………….. 19 - 30

Annual Report and Financial Statements 2020

Page 1

MICKLEFIELD SCHOOL (REIGATE) LIMITED REVIEW OF THE YEAR FOR THE YEAR ENDED 31[ST] AUGUST 2020

Welcome by the Chair of the Council of Governors

What a year it has been! The past year was an eventful one for Micklefield School. There were so many highlights, even though the School was physically closed over part of the year as a result of the COVID-19 pandemic which no one could have foreseen. School routines became different, but education continued, and fundamentally Micklefield School’s ethos and atmosphere have not changed.

The School welcomed Mr Ardé as its new Headmaster at the start of the Autumn Term. Mr Ardé is the School’s first Headmaster since its foundation in 1910 and instantaneously became part of the School’s close-knit community.

The Year 6 pupils successfully prepared for a range of entrance exams for highly-regarded local selective senior schools. This year, Micklefield School’s Year 6 children were offered a total of 19 academic, sport, music or art scholarships between them.

Despite the physical closure of the School over part of the Spring and Summer Terms in compliance with the UK Government’s decision of 19[th] March 2020, Micklefield School delivered a thorough, diverse, and interactive educational programme and continued to provide pastoral support for its pupils using its safe and secure online platform and the School’s iPads. The School managed to welcome all its pupils back safely for a few weeks before the end of the academic year, which was greatly appreciated by all the children, parents and School staff.

As the Governors look to the future, we are conscious of the current economic and political uncertainties affecting the UK and the wider world. The Governors continually assess the possible impact of these uncertainties, together with specific pressures relating to the independent schools’ sector, on the School. The Governors remain committed to ensuring that Micklefield School continues to be sufficiently financially resilient to enable it to provide its pupils with a stimulating, caring, and challenging educational environment.

Mrs J M Hamilton

Annual Report and Financial Statements 2020

Page 2

MICKLEFIELD SCHOOL (REIGATE) LIMITED REVIEW OF THE YEAR (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

___________

Headmaster’s Review of the Year

Micklefield School is a happy and flourishing two-form entry school, where its pupils can enjoy all aspects of learning. It fosters the pursuit of high standards in all aspects of education, including behaviour, and encourages success in learning and confidence in every pupil to take his or her place in society. It is my aim that children leave Micklefield School with the integrity and knowledge which they need to engage academically and socially in their subsequent lives, with the potential to be effective contributors and leaders within the community. My motto is: “ Achievement through hard work, strength through kindness. ”

The School creates a family atmosphere. Each child is encouraged to develop his or her potential - whether academic, sporting, musical or creative - whilst becoming confident, responsible, and independent members of the School. We pride ourselves on knowing each of the children individually, creating an environment where trust and security encourage children to thrive. All teachers and staff work with the School’s parents to instil respect, tolerance, perseverance and self-discipline in the children.

Activities and achievements

I am very proud of the extensive and successful work the Micklefield teachers and staff have undertaken over the latter half of the academic year to ensure that the School continued to provide an all-round education remotely to all its pupils in a safe and secure manner, despite the physical closure of the School building.

Our pupils were not only taught the core academic subjects, but all the subjects that form part of the normal curriculum offered at Micklefield. The School, supported by the ICT coordinator, designed a School-specific remote learning platform and we ensured that all our families had the use of a School iPad where possible. The teachers continued to set, mark, and differentiate work for all pupils. Assemblies, music concerts, art competitions and sports challenges continued “virtually”, and all teachers kept in touch with their classes to ensure that our pupils’ pastoral needs were being met.

From 1[st] June 2020, we gradually and safely reopened the School so that all pupils could return to school to enjoy full school days for the last few weeks of the Summer Term. It was wonderful to see everyone in person before the Summer holidays and to hear the school building full of laughter again. Welcoming everyone back also meant that we could give our Year 6 pupils, who sadly missed out on the traditional highlights of their last half Term at Micklefield such as the Year 5 & 6 play and the trip to France, a proper send off to mark in a formal way the important milestone of finishing primary education.

At the start of the year, the School implemented a new Breakfast Club which offers children a healthy breakfast and various activities for all ages before the school day begins. At the same time, the School extended its After School Club to 6 p.m. From 1[st] January 2020, the School joined the Early Years Funding scheme, which allows for 15 hours free childcare for children aged 3 and 4 years.

During the holidays, many external clubs, such as Playball, use the School’s facilities. These holiday clubs are open to both Micklefield and non-Micklefield pupils.

Academic

“ The excellent level of achievement is the successful fulfilment of the School’s aims to foster the pursuit of high standards and the encouragement to become successful learners .” - Latest ISI Inspection

At Micklefield School, we provide a stimulating, caring and challenging environment appropriate for the relevant age groups that fosters the pursuit of high standards throughout all areas of the curriculum. Pupils are encouraged to become independent learners and grow into individuals who will confidently take up selective senior school offers. Our pupils are given opportunities which will enable them to become effective contributors and responsible citizens from an early age. Kindness and honesty are important values throughout the School.

Annual Report and Financial Statements 2020

Page 3

MICKLEFIELD SCHOOL (REIGATE) LIMITED REVIEW OF THE YEAR (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

___________

The children’s studies are not restricted to the classroom and throughout the School they enjoy many trips to museums, galleries, theatres, and field trips to enrich their learning. Guest speakers, specialists and visiting drama groups are also invited to share their knowledge and expertise in School.

Micklefield School is proud of its teachers and teaching assistants, all of whom are dedicated to the success of the school and adhere to its values. Classes are limited to 20 pupils at Reception and above, and each class is taught by a dedicated class teacher assisted by a Teaching Assistant. Specialist teachers teach Art and Design Technology, ICT, French, Music, Science, Speech and Drama, and Sport. It is evident throughout the School that staff help and support each other and everyone one is very much part of a team. Smaller classes enable us to focus on every individual pupil. Where extra support is required, pupils have the support from a full-time Special Educational Needs Coordinator.

Pupils are equipped for entry into a range of senior schools in the maintained and independent sectors at the age of eleven. They are prepared for all entrance exams, including Common Entrance and scholarships exams. Every year, Micklefield School’s pupils gain places at highly-regarded local selective senior schools, including Reigate Grammar School, Caterham School, Dunottar School, City of London Freemans School, Lingfield College and St John’s School in Leatherhead, and a significant proportion of our pupils have the honour of being awarded academic, sport, music or art scholarships. As mentioned by the Chair of Governors, our Year 6 children who left in July this year were offered 19 scholarships from senior schools between them.

Curriculum enrichment

“ The pupils’ personal development is excellent and is fostered by the School’s positive and supportive ethos, reflecting the School’s values. Extremely good attention is paid to safeguarding pupils and to health and safety .” - Latest ISI Inspection

Annual Report and Financial Statements 2020

Page 4

MICKLEFIELD SCHOOL (REIGATE) LIMITED REVIEW OF THE YEAR (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

Mr R M Ardé

Annual Report and Financial Statements 2020

Page 5

MICKLEFIELD SCHOOL (REIGATE) LIMITED GOVERNORS’ REPORT FOR THE YEAR ENDED 31[ST] AUGUST 2020

___________

Governors’ Report

The purpose of this report

We, the Council of Governors, present our annual report for the year ended 31[st] August 2020 under the Companies Act 2006 and the Charities Act 2011, together with the audited Financial Statements for the year, and confirm that the latter complies with the requirements of the Companies Act 2006, the School’s Articles of Association and the 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. The School is a charitable company and therefore this report is also the Trustees’ Report and the Directors’ Report. Since the charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 has been omitted.

Reference and administrative information

Established in 1910, Micklefield School (Reigate) Limited (the School) was incorporated on 21[st] December 1960, company number 678565. In 1966 the School became a Charitable Trust, registered number 312069, controlled by a voluntary Council. The School does not have a share capital and the liability of the members is limited by guarantee.

Directors and Governors

The directors of the company, who are also Governors of the School and Charity Trustees, who served during the year were:

Registered office and principal address

Micklefield School 10 Somers Road Reigate Surrey RH2 9DU

Annual Report and Financial Statements 2020

Page 6

MICKLEFIELD SCHOOL (REIGATE) LIMITED GOVERNORS’ REPORT (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

___________

Key executives and professional advisers

Headmaster: Mr R M Ardé BA, NPQH

Bursar/Secretary: Mr P Flowerday FFA, FIPA

Bankers: Barclays Bank PLC, 90/92 High Street, Crawley, West Sussex, RH10 1BP Auditors: Kreston Reeves LLP, Springfield House, Springfield Road, Horsham, West Sussex, RH12 2RG Solicitors: Moore Barlow LLP, The Oriel, Sydenham Road, Guildford, Surrey, GU1 3SR Veale Wasbrough Vizards LLP, Narrow Quay House, Narrow Quay, Bristol BS1 4QA

Objects and principal activities

The main object of the School, in accordance with its Memorandum of Association, is to carry on and develop Micklefield School and to advance the education of its pupils. The principal activity continues to be the operation as an independent day school at the premises in Somers Road, Reigate, for boys and girls from the age of 2 years and 9 months up to 11 years.

The School meets its main object by ensuring that its pupils are educated to a first-class standard, based on a wide curriculum taking into account current educational requirements and the importance of the development of the whole child. The School is non-selective and pupils are not required to undertake an entrance test. Through the School’s skills unit, pupils receive appropriate support where needed. Pupils with various physical disabilities have attended - and continue to attend – the School. An entrance interview is undertaken with the Headmaster to ensure that the child will benefit from the education being provided. Pupils are encouraged to make the School a happy and fulfilling place by showing courtesy and consideration towards each other. Increasing responsibility is given to the older pupils to help them gain in confidence and poise and thus better equip them for the senior school of their own and their parents’ choice.

Objectives for the year

In setting the objectives and planning activities, the Governors have carefully considered the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education.

The key objectives for the year were:

Public benefit

The Governors have carefully considered the Charity Commission’s guidance on public benefit and the School will continue to fulfil its charitable objects.

Annual Report and Financial Statements 2020

Page 7

MICKLEFIELD SCHOOL (REIGATE) LIMITED GOVERNORS’ REPORT (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

The Governors keep the School’s bursary policy under constant review with a view to widening access to the education the School provides, whilst being mindful of the need to maintain a balance between fee-paying parents, many of whom make considerable personal sacrifices to fund their child’s education, and those benefiting from the awards.

Through the attendance of 234 children from approximately 180 families and the employment directly and indirectly of over 70 people, the School makes a significant contribution to the national and local economies and to the local community.

The School plays an active part in the local community sharing its facilities for LAMDA and Royal College of Music examinations. Local groups use the School’s sports facilities and gym for various functions including the local Residents’ Meetings. During the holidays, many external clubs use the School’s facilities. The clubs are open to both Micklefield and non-Micklefield pupils.

Funds are raised for a number of national, international and local charities. The local charities are chosen by the children’s School Council every half term. During the 2019/20 academic year, the School mainly supported Surrey Young Carers. The School also supports a small school in Kibera, Nairobi, Kenya.

The School has strong links with two local homes for the elderly. Micklefield School’s pupils visit the homes at various points throughout the year and the residents visit us to enjoy concerts, plays and recitals. The link with the United Reformed Church in Reigate remains strong and the School works with the Church on local community projects when we are able. Each summer the School offers work experience to students from local senior schools; although this year, this was not possible owing to the COVID-19 pandemic.

Future plans

The Council intends to continue develop the School and nursery and maintain its sound financial position in a competitive environment and challenging economic climate. The Governors remain committed to curriculum enrichment, broadening the availability of resources used for teaching, in particular, the continued development of the use of technology and iPads as educational tools; as well as pastoral care and mental wellbeing.

The Headmaster and Senior Leadership Team will continue to review the delivery of the curriculum taking into account legislation, professional advice and developments in education within the independent schools’ sector.

Financial review

The net deficit for the year was £97,040 (2019: £69,210 surplus).

The primary cause of this deficit was the additional cost of £66,150 borne by the School following the UK Government’s decision to increase schools’ contributions to the Teachers’ Pension Scheme ( TPS ) by 44% from 1[st ] September 2019, from 16.48% to 23.68% of member teachers’ salaries. During 2019, the Governors carefully reviewed possible options to mitigate this cost. On 25[th] February 2020, the Governors took the formal and final decision for Micklefield School to leave the TPS and instead to offer Micklefield School’s teaching staff an alternative pension scheme specifically developed by Aviva for independent schools – the APTIS pension scheme – with effect from 1[st] September 2020. This formal decision followed a thorough, open and transparent consultation process and the Governors have very much appreciated the various consultation meetings with the School’s elected staff representatives. This change will result in the total cost to the School of providing teachers’ pensions from 1[st] September 2020 to revert to the levels that applied prior to 1[st] September 2019.

The COVID-19 pandemic also affected the School’s financial results. During the physical closure of the School as a result of the pandemic, the School continued to support and pay the majority of its staff as they carried on working from home in order to pursue its educational programme without interruption. The School made use of the Government’s “ Coronavirus Job Retention Scheme ” and a number of staff were furloughed.

Annual Report and Financial Statements 2020

Page 8

MICKLEFIELD SCHOOL (REIGATE) LIMITED GOVERNORS’ REPORT (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

___________

Given that staff’s salaries account for most of the School’s expenditure and virtually all the School’s costs are fixed, the School adjusted its fees for the Summer Term so that no fees were charged for Nursery and a reduction of 15% was applied for Reception to Year 6. The loss of school fee income amounting to £130,500 was offset by the Government grant received totalling £40,968 and the savings in catering and operational costs of £59,000. The Governors carefully review the financials of the School on a regular basis and do not consider that COVID-19 has affected the ability of the School to operate as a going concern. The School’s reserves policy and future commitments therefore remain unchanged.

Reserves

The Council regularly reviews the School’s finances, budgets, and expenditure against budget together with a monthly cash flow analysis, as part of the effective stewardship of the School.

In common with other independent schools, the School has invested substantial sums in its buildings in recent years and has a continuing programme of refurbishment, development and investment to maintain excellent teaching facilities for our pupils, including enhancing the mobility of the teaching technology.

The total funds held by the charity as at 31[st] August 2020 were £3,416,896. This includes £7,300 of restricted funds held as at 31[st] August 2020.

Although the free reserves (general reserves less tangible assets) remain negative, this illustrates the extent of the investment in the School, which is a common practice by independent schools which have to finance their own capital investment plans. The book value of our tangible assets, that is the buildings and equipment, was £3,943,568 as at 31[st] August 2020.

The Council considers that, given the strength of the School’s balance sheet, the stable cash flow, the ongoing popularity of the School, and the available banking facility that can be called upon if need arises, there is no current need to build up a free reserve.

The Council recognises that the level of reserves fluctuates during periods of investment in the School estate and the arrangements with our bank are in place to provide adequate temporary funds should these be required.

Bursaries

Within the School’s Reserves, the Governors have set aside a designated fund with the aim of helping parents with fees where they are experiencing temporary financial difficulties. The Governors regularly review the size and purpose of the Fund. The Governors’ aim is to give bursaries and grants up to a maximum of 2% of gross fee income.

In addition, in Spring 2020, Micklefield School set up a hardship fund to support those pupils and families who were experiencing financial difficulties, particularly as a result of the COVID-19 outbreak, e.g. due to immediate job losses or business closure. The School endeavours to help its families where it can. Any assistance is considered on a caseby-case basis and tailored to the families concerned.

Investment policy and objectives

There are no restrictions on the School’s powers of investment. Currently, short term surplus funds are placed in an interest-bearing bank deposit account, where they are immediately available to meet planned capital expenditure and working capital requirements.

Annual Report and Financial Statements 2020

Page 9

MICKLEFIELD SCHOOL (REIGATE) LIMITED GOVERNORS’ REPORT (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

Structure, Governance and Management

Governing body

The Council of Governors requires breadth and depth of experience to carry out its duties effectively and efficiently. When recruiting new Governors, an important attribute is a passion for the work of the School and most of the Council members are parents of former pupils with an understanding of the School’s ethos and its aims. The Council maintains a balance between male and female members and possesses within it a range of skills and experience: our current membership comprises Governors with educational, financial, legal, construction and business backgrounds. The Governors are elected by the Council, one third of whom offer themselves for re-election at each Annual General meeting, being those longest in office since their last election.

Governor training

Individual Governors attend seminars run by the Association of Governing Bodies of Independent Schools ( AGBIS ). All Governors have copies of AGBIS’ manual of good practice; the Charity Commission’s publication “ The Essential Trustee: What you need to know ”; and the most recent version of the UK Government’s publication “ Keeping children safe in education ”. Online training is also regularly undertaken through the Educare programme on topics such as safeguarding, child protection and online safety.

Organisational management

Meetings of the Council are held at least four times a year to determine the general policy of the School and review its overall management and control for which the Governors are legally responsible. There are three subcommittees which meet at least termly: (i) Finance and General Purposes; (ii) Education and Staffing; and (iii) Estates and Health & Safety, all of which are attended ex officio by the Headmaster and Bursar. In addition, there are an Awards Committee and Remuneration Committee.

Key management personnel

The key management involved in the day-to-day running of the School are the members of the Senior Leadership Team comprising the Headmaster, Bursar, Deputy Head, Head of Lower School and the Director of Studies. Salaries for the Headmaster, Bursar and Deputy Head are set by the Remuneration Committee, whereas the salary for the Heads of Lower School and Director of Studies are set by the Finance & General Purposes Committee. Both Committee decisions are subsequently ratified by the Council.

Group structure and relationships

Micklefield School is an active member of the Independent Schools’ Bursars Association ( ISBA ) and the Association of Governing Bodies in Schools ( AGBIS ). Through the Headmaster, the School has a membership of the Independent Association of Preparatory Schools ( IAPS ).

Through the “Friends of Micklefield” ( FOM ), the parents and families of pupils have continued to provide support to the School, organising social events and fundraising activities. The FOM made donations towards specific items of expenditure in the year such as new cricket nets, an outdoor learning programme and new branded sports tops. Together with the Headmaster, the Governors wish to express our appreciation for their continuing and valuable support for the School. The School works with the local community, optimising the use of the buildings and the sports ground.

Annual Report and Financial Statements 2020

Page 10

MICKLEFIELD SCHOOL (REIGATE) LIMITED GOVERNORS’ REPORT (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

___________

Information on fundraising practices

Fundraising activity has historically been carried out by FOM which operates independently from the school. FOM raises money for the school through events and activities which are voluntary and advertised in a non-intrusive manner. The school does not utilise the services of any external commercial fundraisers. Given that the majority of donations are from parents of current pupils, either direct or through FOM, and only limited fundraising activity takes place, the school does not consider it necessary at this time to subscribe to a fundraising regulator.

Risk management

The Council is responsible for overseeing potential risks faced by the School. The principal risks relate to regulatory and external factors; governance; finance; and staffing issues.

Risks are identified and assessed throughout the year and appropriate controls to deal with those risks in a timely and adequate manner, have been established. The School’s risk management policy is reviewed regularly. However, it is recognised that policies and processes can only provide reasonable, rather than absolute, assurance that major risks have been adequately managed.

The School is strongly committed to safeguarding and promoting the welfare of pupils. The regulatory compliance inspection by the Independent Schools’ Inspectorate ( ISI ) in May 2018 confirmed that effective child protection measures are in place, while the most recent full ISI inspection report from 2014 described the School’s pastoral care provided to pupils as outstanding. The School meets all regulatory requirements for the welfare, health and safety of pupils.

Statement of Governors’ responsibilities

The Governors, who are also the directors of Micklefield School (Reigate) Limited for the purposes of company law, are responsible for preparing the Governors’ Report and the Financial Statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Under company law the Governors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure for that period.

In preparing these Financial Statements, the Governors are required to:

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the School and enable us to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the School and ensuring their proper application under charity law and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Annual Report and Financial Statements 2020

Page 11

MICKLEFIELD SCHOOL IREIGATE) LIMITED GOVERNORS, REPORT {Contlnued) FOR THE YEAR ENDED 31ST AUGUST 2020 Dis¢losure of Informatlon to the Audltor So far as each Council member at the date of approval is aware- There is no relevant audit Informatlon of whlch the Charltable Compan￿5 auditor 15 unaware. and The Council ha5 taken all step5 that they ought to have taken to make themselves aware of any relevant audlt information and to establish that the auditor is aware of that information. Audltors Kreston Reeves LLP have expressed theiy willingne5S to continue as audltors for the next flnanclal year. The Annual Report was approved by the Council of Governors at Its meetlng on I" December 2020 and Signed on Its behalf by air of Governors Annual Report and Financial Statements 2020 Page 12

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MICKLEFIELD SCHOOL (REIGATE) LIMITED FOR THE YEAR ENDED 31[ST] AUGUST 2020

Opinion

We have audited the Financial Statements of Micklefield School (Reigate) Limited (the ‘charitable company’) for the year ended 31[st] August 2020 which comprise the Statement of financial activities including a summary income and expenditure account, the Balance Sheet, the Statement of cash flows and notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the Financial Statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the Financial Statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you were:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the Financial Statements and our auditor’s report thereon. Our opinion on the Financial Statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the Financial Statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Annual Report and Financial Statements 2020

Page 13

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MICKLEFIELD SCHOOL (REIGATE) LIMITED (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ 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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the Financial Statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error.

In preparing the Financial Statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Annual Report and Financial Statements 2020

Page 14

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MICKLEFIELD SCHOOL (REIGATE) LIMITED (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

Auditor’s responsibilities for the audit of the Financial Statements (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Ediss BSc FCA (Senior Statutory Auditor)

For and on behalf of Kreston Reeves LLP Chartered Accountants and Statutory Auditor Springfield House Springfield Road Horsham West Sussex RH12 2RG

Dated: 4 December 2020

Annual Report and Financial Statements 2020

Page 15

MICKLEFIELD SCHOOL (REIGATE) LIMITED STATEMENT OF FINANCIAL ACTIVITIES (including summary Income and Expenditure) FOR THE YEAR ENDED 31[ST] AUGUST 2020

Unrestricted
Funds
Notes
£
INCOME FROM:
Donations and legacies
Charitable activities:
3
40,968
School fees receivable
4
2,374,606
Registration fees
2,580
Ancillary activities
10,137
Other trading activities:
Rents and lettings
2,895
Investments:
Bank and other interest
1,897
_
Total income
2,433,083
_
EXPENDITURE ON:
Raising funds:
School financing costs
Charitable activities:
9
9,863
School operating costs 10
2,522,060
_
Total expenditure10
2,531,923
_
NET INCOME
(98,840)
Reconciliation of funds:
Fund balances at 1stSeptember 2019
3,508,436
_
FUND BALANCES at 31st August 2020
3,409,596
_		 Restricted
Funds
£
7,064
(3,457)
-
-
-
-
_
3,607
_
-
1,807
_
1,807
_
1,800
5,500
_
7,300
_		 Total
Funds
£
48,032
2,371,149
2,580
10,137
2,895
1,897
_
2,436,690
_
9,863
2,523,867
_
2,533,730
_
(97,040)
3,513,936
_
3,416,896
_		 2019
£
9,875
2,497,509
2,340
50,830
3,620
3,078
_
2,567,252
_
13,666
2,484,376
_
2,498,042
_
69,210
3,444,726
_
3,513,936
_

There are no other recognised gains and losses other than the net income for the year. All operations and activities are continuing.

The notes on pages 19 to 30 form part of these Financial Statements.

Annual Report and Financial Statements 2020

Page 16

MICKLEFIELD SCHOOL (REIGATEI UMITED BALANCE SHEET Company Number.. 678565 ST AS AT 31 AUGUST 2020 Notes 2020 2019 FIXED ASSETS Tanglble assets li 3,943,568 4,127,955 CURRENT ASSErs Debtors Cash at bank and In hand 12 43.735 187.320 47,310 176,761 231,055 224,071 CREDITORS.. dLse wlthin one year: 13 468,450 447,120 Net current Ilab115tles 1237,3951 1223,0491 Total assets less current Ilabllities 3,706,173 3,904,906 CREDITORS.. due after more than one year: Bank loan 14 1224,0771 1316,7901 Deposits 165,2001 174.1801 TOTAL NET ASSETS 3,416.896 3,513,936 FUNDS Unrestricted designated & 8eneral reserves Restricted funds 17 3,409,596 7,30CI 3,508,436 5,500 TOTAL CHARITY FUNDS 3,416,896 3.513,936 Sl8ned on behalf of the Councll of Governors Mr J Hamilton Chalr of GoveTnor5 Approved by the Council of Governors on I" December 2020. The notes on pages 19 to 30 form part of these Financial Statements. Annual Report and Financial Statements 2020 Page 17

MICKLEFIELD SCHOOL (REIGATE) LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31[ST] AUGUST 2020

Reconciliation of net income for the year
to net cash flow from operating activities
Net income for the year
Adjustments for:
Depreciation
Bank interest receivable
Bank interest paid
(Increase)/decrease in debtors
(Decrease)/Increase in creditors
Net cash flow from operating activities
Cash flow from investing activities
Interest income received
Purchase of fixed assets
Net cash flow from investing activities
Cash flow from financing activities
Repayment of loans
Interest paid
Net cash flow from financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at 1stSeptember
Cash and cash equivalents at 31st August		 £
184,387
(1,897)
9,862
3,575
(5,308)
1,897
-
(75,056)
(9,862)		 2020
£
(97,039)
190,619
93,580
1,897
(84,918)
10,559
176,761
187,320		 2019
£
£
205,377
(3,078)
13,666
(1,988)
(155,519)
3,078
(27,468)
(189,314)
(13,666)
69,210
58,458
127,668
(24,390)
(202,980)
(99,702)
276,463
176,761		 2019
£
£
205,377
(3,078)
13,666
(1,988)
(155,519)
3,078
(27,468)
(189,314)
(13,666)
69,210
58,458
127,668
(24,390)
(202,980)
(99,702)
276,463
176,761
127,668
(24,390)
(202,980)
(99,702)
276,463
176,761

Annual Report and Financial Statements 2020

Page 18

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2020

1. ACCOUNTING POLICIES

a) General information and basis of preparation

Micklefield School (Reigate) Limited is a charitable company, limited by guarantee, registered in England and Wales. The address of the registered office is given in the charity information on page 1 of these Financial Statements. The nature of the charity’s operations and principal activities are detailed in the Governors’ Report.

The charity constitutes a public benefit entity as defined by FRS 102.

The Financial Statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1[st] January 2019.

The Financial Statements are prepared under the historical cost convention. The Financial Statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

b) Going concern

Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and the School’s future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Financial Statements as outlined in the Statement of Governors’ responsibilities.

These considerations take into account the impact of Covid-19 and the Trustees have concluded that it is appropriate to continue to adopt the going concern basis in preparing the Financial Statements as outlined in the Statement of Trustees’ Responsibilities.

The significant accounting policies applied in the preparation of these Financial Statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

c) Income recognition

All income is included in the Statement of Financial Activities ( SOFA ) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from charitable activities includes school fees receivable, registration fees and fees from ancillary activities. School fees receivable consist of charges billed for the school year ending 31[st] August, less bursaries, discounts and other allowances. Fees received for education to be provided in future years are carried forward as deferred income. Registration fees are non-refundable fees which are recognised once parents/guardians have committed for the child to attend the school in the school year ending 31[st] August. Income from ancillary activities is generated from additional activities such as music exam fees and after school clubs being offered to pupils in the school year ending 31[st] August.

Annual Report and Financial Statements 2020

Page 19

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

1. ACCOUNTING POLICIES (CONT.)

Income from trading activities includes income earned from rents and lettings to raise funds for the charity. Income is received in exchange for renting out the pavilion and fields of the School in order to raise funds and is recognised when entitlement has occurred.

Income from investments includes interest which is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Income from grants received are recognised when there is reasonable assurance that the School will comply with the conditions attaching to the grant and the grant will be received.

d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

The irrecoverable element of VAT is included with the item of expense to which it relates.

e) Support costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include administrative and governance costs. They are incurred directly in support of expenditure on the objects of the charity.

f) Pension schemes

Until 31[st] August 2020, the School contributed to the Teachers’ Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the School by the Scheme Administrator. The Scheme is a multiemployer pension scheme and it is not possible to identify the assets and liabilities of the Scheme which are attributable to the School. In accordance with FRS 102 Section 28 the Scheme is accounted for as a defined contribution scheme and contributions are accounted for when advised as due by the Scheme Administrator.

The School also contributes to a defined contribution personal pension scheme for non-teaching staff.

g) Other employee benefits

When employees have rendered service to the school, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Settlement costs are recognised when notice has been given to the employee.

h) Operating leases

Rentals payable under operating leases are charged to the SOFA on a straight line basis over the period of the lease.

Annual Report and Financial Statements 2020

Page 20

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

i) Tangible fixed assets

Tangible assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets retained for use by the School at rates calculated to spread each asset’s cost, less its estimated residual value at prices ruling at date of acquisition, over its expected useful economic life, which for each class of asset is initially assessed as averaging:

Freehold buildings and improvements 2%/10% straight line Furniture, computers, equipment: - Furniture and equipment 10%/20% straight line - Computer equipment 33⅓% straight line Motor vehicles 20% straight line

No depreciation is provided on freehold land.

Items costing less than £3,000 are written off as an expense as acquired.

j) Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at the transaction price. Any losses arising from impairment are recognised in expenditure.

k) Cash

Cash at bank includes cash and short term highly liquid investments from the date of opening of the deposit or similar account.

l) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

m)

Funds

Unrestricted income funds are general funds that are available for use at the trustee’s discretion in furtherance of the objectives of the charity. Restricted funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. Further details of each fund are disclosed in note 17. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund are set out in the notes of the Financial Statements.

n) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Annual Report and Financial Statements 2020

Page 21

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

2. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The School makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Under component accounting the freehold buildings are divided into major components which are considered to have substantially different useful lives. Judgement is used in allocating property costs between components and in determining the useful lives of each component and this judgement may have a material impact on the depreciation charge.

Critical areas of judgement:

Deposits held by the School repayable when a pupil leaves the School are included in other creditors, a proportion of the total deposits are classified as falling due after one year as this reflects the expected timing of their repayment.

3. INCOME FROM DONATIONS AND LEGACIES

The School’s donations and legacies comprised:
Donations
Grants received		 2020
£
7,064
40,968
_
48,032
_		 2019
£
9,875
-
_
9,875
_

Included within donations and legacies is restricted income of £7,064 (2019: £9,875) which has been either donated to cover specified items of capital and operating expenditure, has been raised to be given to specific charities or been used to support a Covid-19 hardship grant. Grants received represents amounts from the HM Revenue and Customs ‘Job Retention Scheme’.

4. SCHOOL FEES RECEIVABLE

The School’s fee income comprised:
Gross fees
Less: bursaries, discounts and other allowances		 2020
£
2,632,549
(261,400)
_
2,371,149
_		 2019
£
2,613,477
(115,968)
_
2,497,509
_

£130,500 of the £261,400 discounts and bursaries given in 2020 relates to the fee discount given due to the closure of the School during the Covid-19 lockdown.

Annual Report and Financial Statements 2020

Page 22

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

5. GOVERNORS’ REMUNERATION AND EXPENSES

During the year, the Governors did not receive nor waive any remuneration from the School or other benefits in their capacity as directors and charity trustees. No expenses (2019: nil) were reimbursed to Governors for attending external meetings and seminars.

6. NET INCOME FOR THE YEAR

Net income is stated after charged:
Depreciation of tangible fixed assets
Operating lease rentals
7.
STAFF COSTS
Wages and salaries
Employer’s NI costs
Pension contributions

Average number of monthly employees in the year:

Teaching
Administration

Maintenance and Housekeeping
The number of employees who received total employee
benefits (excluding employer pension costs of more than
£60,000) is as follows:
£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000		 2020
£
184,387
7,200
_
2020
£
1,444,718
147,213
250,813
_
1,842,744
__
2020
Number
37
5
5
__
47
____
2020
1
1
-		 2019
£
205,377
7,200
_
2019
£
1,387,298
136,922
174,337
_
1,698,557
__
2019
Number
35
5
7
__
47
____
2019
1
-
1



__

One of the employees above is a member of the Teachers’ Pension Scheme: see note 15 on page 27.

Contributions made in the year 2020
£
17,760
_		 2019
£
13,532
_

Annual Report and Financial Statements 2020

Page 23

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

8. REMUNERATION OF KEY MANAGEMENT PERSONNEL

8. REMUNERATION OF KEY MANAGEMENT PERSONNEL
Wages and salaries
Employer’s NI costs
Pension contributions
9. INTEREST PAYABLE AND SIMILAR CHARGES
Bank loans and overdrafts		 2020
£
289,140
33,901
60,053
_
383,094
_
2020
£
9,863
__		 2019
£
287,497
33,803
43,473
__
364,773
_
2019
£
13,666
_

10. EXPENDITURE: analysis of total expenditure – Current year

Staff costs
Charitable activities
£
School operating costs:
Teaching
1,615,781
Welfare
-
Premises
40,301
Support
191,456
_
1,847,538
Raising funds
School financing costs
-
_
1,847,538
__		 Other
£
79,125
116,066
161,577
135,174
_
491,942
9,862
_
501,804
__		 Dep’n
£
53,133
7,974
118,507
4,773
_
184,387
-
_
184,387
__		 2020
Total
£
1,748,039
124,040
320,385
331,403
__
2,523,867
9,862
__
2,533,729
__

Annual Report and Financial Statements 2020

Page 24

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

EXPENDITURE: analysis of total expenditure – Prior year

Staff costs
Charitable activities
£
School operating costs:
Teaching
1,469,742
Welfare
-
Premises
37,515
Support
193,864
_
1,701,121
Raising funds
School financing costs
-
_
1,701,121
__		 Other
£
127,559
152,317
179,094
18,908
_
577,878
13,666
_
591,544
__		 Dep’n
£
70,624
9,255
122,385
3,113
_
205,377
-
_
205,377
__		 2019
Total
£
1,667,925
161,572
338,994
315,885
__
2,484,376
13,666
__
2,498,042
__

£1,807 (2019 - £4,375) of the above costs were attributable to restricted funds; £2,531,922 (2019 - £2,493,667) of the above costs were attributable to unrestricted funds.

Governance costs included within charitable activities can be analysed below:

Governance costs included within
Auditors’ remuneration
11. TANGIBLE FIXED ASSETS
Cost
At 1stSeptember 2019
Additions
At 31stAugust 2020
Depreciation
At 1stSeptember 2019
Charge for the year
At 31stAugust 2020
Net Book Value
At 31st August 2020
At 31stAugust 2019		 charitable activities can be analysed below:
Freehold
Land
Freehold
Buildings and
Improvement
s
Furniture,
computers,
equipment
£
£
£
359,500
4,823,330
558,166
-
-
-
_
_
_
359,500
4,823,330
558,166
_
_
_
-
1,193,517
437,120
-
107,923
72,480
_
_
_
-
1,301,440
509,600
_
_
_
359,500
3,521,890
48,566
_
_
_
359,500
3,629,813
121,046
_
_
_
2020
£
9,360
_
Motor
vehicles
£
19,920
-
_
19,920
_
2,324
3,984
_
6,308
_
13,612
__
17.596
_		 2019
£
8,796
__
Total
£
5,760,916
-
______
5,760,916
 2019
£
8,796


_
1,632,961
184,387
_
1,817,348

__
3,943,568

_
4,127,955
_

Tangible fixed assets with a net book value of £3,521,890 (2019 - £3,629,813) have been pledged as securities for liabilities of the charity.

Annual Report and Financial Statements 2020

Page 25

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

12. DEBTORS
Trade debtors
Prepayments and accrued income
13. CREDITORS: DUE WITHIN ONE YEAR
Trade creditors
Fees in advance (deferred income)
Deposits
Accruals
Other creditors
Bank loans


Deferred income at 1 September
Resources deferred in the year
Amounts released from previous years
Deferred income at 31 August
14. LOANS CREDITOR
Due within one year (note 13)
Due in more than one year		 2020
£
12,780
30,955
_
43,735
_
2020
£
19,172
273,672
14,000
15,046
990
145,570
_
468,450
_
2020
£
270,164
273,672
(270,164)
_
273,672
_
2020
£
145,570
224,077
_
369,647
_		 2019
£
-
47,310
__
47,310
_
2019
£
20,281
270,164
12,020
15,343
1,400
127,912
_
447,120
_
2019
£
335,720
270,164
(335,730)
_
270,164
_
2019
£
127,912
316,790
_
444,702
__

Annual Report and Financial Statements 2020

Page 26

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

Five year analysis:
Due within one year
Due within two to five years		 2020
£
145,570
224,077
__
369,647
__		 2019
£
127,912
316,790
_
444,702
_

£358,815 of the loan creditor is secured by legal charges over the freehold land and buildings by a debenture in favour of Barclays Bank PLC.

After a review in December 2019, this loan is repayable over the remaining period to October 2022 in equal monthly instalments of capital and interest which is based on a variable rate, currently 2% (2019 – 2%).

15. PENSION SCHEMES

Until 31[st] August 2020, the School participated in the Teachers' Pension Scheme (England and Wales) ( TPS ) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £223,722 (2019: £147,781) and at the year-end £nil (2019 - £nil) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers' Pension Scheme Regulations 2010 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by the Government.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31[st] 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 1[st] September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31[st] March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied as at 5[th] March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the McCloud/Sargeant case. This case has required the courts to reconsider the implementation of the UK Government’s pension reforms from 2015 to public service pension schemes, including the TPS.

On 27[th] June 2019 the Supreme Court denied the Government permission to appeal the Court of Appeal's judgment that transitional provisions introduced in 2015 to reform public service pension schemes 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 discriminations will be remedied.

As at 31[st] August 2020, the School withdrew from the TPS (England and Wales) and joined the Aviva Pension Trust for Independent Schools ( APTIS ), a defined contribution pension scheme.

The School also runs a defined contribution personal pension scheme for those members of staff not entitled to join the TPS. The cost for the year represents the School’s contributions to the scheme of £27,091 (2019: £29,497) and there were no contributions due at the year end.

Annual Report and Financial Statements 2020

Page 27

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

15. PENSION SCHEMES (CONT.)

Contributions in respect of the company's defined contribution pension scheme are charged to the income and expenditure account for the year in which they are payable to the scheme. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end.

16. FUNDS: ANALYSIS OF NET ASSETS – current year

FUNDS: ANALYSIS OF NET ASSETS – current year
Fixed Assets
£
Restricted Funds
Grants and donations
Unrestricted Funds:
-
Designated – bursaries
-
General reserves
3,943,568
__
3,943,568
__
FUNDS: ANALYSIS OF NET ASSETS – prior year
Fixed Assets
£
Restricted Funds
Grants and donations
Unrestricted Funds:
-
Designated – bursaries
-
General reserves
4,127,955
_
4,127,955
_		 Net
Current
Liabilities
Long Term
Liabilities
£
£
7,300
-
58,613
-
(303,308)
(289,277)
_
_
(237,395)
(289,277)
__
__
Net
Current
Liabilities
Long Term
Liabilities
£
£
5,500
-
55,088
-
(283,637)
(390,970)
_
_
(223,049)
(390,970)
_
_		 2020
Fund
Balances
£
7,300
58,613
3,350,983
___
3,416,896
_
2019
Fund
Balances
£
5,500
55,008
3,453,348
_
3,513,936
___

Annual Report and Financial Statements 2020

Page 28

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

17. FUNDS MOVEMENT – current year

1
Restricted Funds
Grants and donations
Unrestricted Funds:
Designated - bursaries
General reserves
FUNDS MOVEMENT – prior year		 September
2019
£
5,500
55,088
3,453,348
_
3,513,936
_		 Income
Expenditure
£
£
3,607
(1,807)
-
(55,036)
2,433,083
(2,476,887)
_
_
2,436,690
(2,533,730)
_
_		 Transfers
£
-
58,561
(58,561)
_
-
_		 31 August
2020
£
7,300
58,613
3,350,983
___
3,416,896
___
1
Restricted Funds
Grants and donations
Unrestricted Funds:
Designated - bursaries
General reserves		 September
2018
£
-
48,008
3,396,718
_
3,444,726
_		 Income
Expenditure
£
£
9,875
(4,375)
-
(42,870)
2,557,377
(2,450,797)
_
_
2,567,252
(2,498,042)
_
_		 Transfers
£
-
49,950
(49,950)
_
-
_		 31 August
2019
£
5,500
55,088
3,453,348
___
3,513,936
___

Restricted funds partly relate to grants received from the ‘Friends of Micklefield’ that are to be fully utilised in the purchase of specific resources and equipment. Also included are donations received by parents, pupils and staff for specific fundraising ventures where the equal amount received have been paid over to nominated charities. In Spring 2020 a fund was set up to support those pupils and families who were experiencing financial difficulties as a result of the Covid-19 outbreak. All monies donated were used during the year to help support affected families.

The designated fund has been set aside to use as the Governors deem appropriate with the aim of helping parents with fees outstanding where they are experiencing financial difficulties or to assist with entrance bursaries. The transfer in the year is the amount needed to cover anticipated bursaries for the next academic year.

The general reserves comprise of the accumulated resources which may be expended without restriction in furtherance of the charity’s objects.

Annual Report and Financial Statements 2020

Page 29

MICKLEFIELD SCHOOL (REIGATE) LIMITED NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31[ST] AUGUST 2020

18. OPERATING LEASE COMMITMENTS


Total future minimum lease payments under non-cancellable operating
leases are as follows:
Within one year		 Land and buildings
£
£
2020
2019
7,200
7,200
_
_

19. CONTRACTS AND COMMITMENTS

There was no un-accrued capital expenditure contracted for as at 31[st] August 2020 (2019: £nil).

20. ANALYSIS OF CHANGES IN NET DEBT

1
Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 September
2019
£
176,761
(127,812)
(316,790)
_
(267,941)
_		 Cashflow
£
10,559
(17,658)
92,713
_
85,614
_		 31 August
2020
£
187,320
(145,570)
(224,077)
___
(182,327)
___

21. RELATED PARTY TRANSACTIONS

There are no related party transactions during the period (2019: £ nil).

Annual Report and Financial Statements 2020

Page 30