**COMPANY NUMBER: 00057854** **REGISTERED CHARITY NUMBER: 312590** King Alfred School Society A company having no share capital and limited by guarantee ## ANNUAL REPORT AND FINANCIAL STATEMENTS Year ended 31st July 2021 The King Alfred School, North End Road, London NW11 7HY page 1 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## **King Alfred School Society** A company having no share capital and limited by guarantee ## **CONTENTS** |**CONTENTS**|| |---|---| |REFERENCE AND ADMINISTRATIVE DETAILS|p. 2| |INTRODUCTION BY THE CHAIR OF COUNCIL|p. 4| |TRUSTEES’ REPORT BY COUNCIL|p. 6| |1. OBJECTIVES, ETHOS, STRATEGIES AND ACTIVITIES|p. 6| |1.1 Aims and objectives of the King Alfred School Society|| |1.2 Ethos|| |1.3 Strategies for Achieving Objectives|| |1.4 Public Beneft|| |2. REVIEW OF ACHIEVEMENTS AND PERFORMANCE|p. 8| |2.1 Overview|| |2.2 The King Alfred School|| |2.3 Educational Research and Dissemination|| |2.4 Broadening Impact|| |3. FINANCIAL REVIEW AND RESULTS|p. 11| |3.1 Income and Expenditure|| |3.2 The Trading Company|| |3.3 The Balance Sheet|| |3.4 Reserves|| |3.5 Investment Policy|| |3.6 Going Concern including COVID-19|| |4. PLANS FOR FUTURE PERIODS|p. 13| |4.1 Challenging the Educational Paradigms|| |4.2 Further Strengthening the School and the Community|| |4.3 Continuing to Broaden our Impact|| |4.4 Maintaining our Financial Results and Investing in the Future|| |5. STRUCTURE, GOVERNANCE AND MANAGEMENT|p. 15| |5.1 Governance and Organisation|| |5.2 Confict of Interest|| |5.3 Development and Fundraising|| |5.4 Appointment, Induction and Review of Performance of Members of Council|| |5.5 Remuneration of Key Management|| |5.6 Risk Management|| |STATEMENT OF TRUSTEES’ RESPONSIBILITIES|p. 18| |INDEPENDENT AUDITOR’S REPORT|p. 19| |CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES|p. 22| |CONSOLIDATED AND COMPANY BALANCE SHEETS|p. 23| |CONSOLIDATED CASH FLOW STATEMENT|p. 24| |NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS|p. 25| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 1 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## **REFERENCE AND ADMINISTRATIVE DETAILS** PRESIDENT Kara Conti CHAIR TREASURER Annabel Cody Nick Friedlos HEAD Robert Lobatto BA Hons (Oxon), PGCE, NPQH (London) DIRECTOR: FINANCE & OPERATIONS Victoria Heeley BSc Hons, FCA ## OTHER COUNCIL MEMBERS Amy Chapman (appointed 9 February 2021), Shay David, Sandra Denicke-Polcher, Robert Dye, Grace Edghill, David Gossen (appointed 9 February 2021), Fiona Hackett (re-appointed 9 February 2021), Sheila Jaswon (resigned 9 February 2021), Sam Jukes-Adams, Ian Laming (resigned 9 February 2021), Liam Michaels, John Nevin (resigned 9 February 2021), Sarah Phillips, Sophie Ricard, Christian Schmidt, Sophie Silocchi, Sam Walsh (appointed 9 February 2021) Philip Whale, Harry Wingate (resigned 19 April 2021) ## REGISTERED ADDRESS Manor Wood, 149 North End Road, London NW11 7HY ## AUDITORS Haysmacintyre LLP, Chartered Accountants 10 Queen Street Place, London EC4R 1AG ## BANKERS Barclays Bank Plc, PO Box 12820, London N20 0WE SOLICITORS Harrison Clarke Rickerbys, Ellenborough House, Wellington Street, Cheltenham, Gloucestershire GL50 1YD Farrer & Co LLP, 66 Lincoln’s Inn Fields, London WC2A 3LH THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 2 I.'C)MPANYNLTMBLR.. UIIV?711?4 REGIsT￿RED C.'H.4RITh' NUIqBLR..412.59U THE KING ALFRLD S(:HOC)L50C.'ILn-.4NNL".4L RLPORT.4ND FIN_4NC:IALSTATEMLNTS I)U2111'21 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## INTRODUCTION BY THE CHAIR OF COUNCIL The King Alfred School Society (the Society) was established in 1897 to provide a new model of education and to influence the educational landscape. Reacting to the selective and exam-focused Victorian school system, the founders established, one year later, the King Alfred School (the School) whose purpose was to educate the whole child. Learning would take place in a non-selective coeducational setting in which staff would work collaboratively with pupils using teaching based on the latest scientific methods in an environment free from unnecessary pressures. The work of its forward-thinking founders is as relevant today as it was when the Society was formed and the School first opened. The School aims to provide a rounded education which enables its pupils to function well in society because they are confident, selfdisciplined and inquisitive with a wide range of knowledge and awareness of social issues. It is Council’s role, as school governors, to oversee the financial, educational and strategic direction of the School, in line with the Society’s aims. The year 2020-21, whilst one of ongoing challenge in terms of the pandemic, has been one of positive growth and development for KAS. Overall, the financial year has ended well. Our approach over the past year has been one of careful financial management balanced by an acknowledgement of the ongoing difficulties presented by the pandemic. Whilst fee levels for 2020/21 were held at the prior year level, recognising the potential financial stress that might be caused by the pandemic to our families, pupil numbers remained strong, and with a very cautious approach to expenditure we are pleased to report ending the year with a significant surplus. We have also maintained our programme of financial support for those members of the community whose finances have been severely affected by COVID. School’s strategic development, bringing our facilities for senior pupils in line with other leading London schools. Educationally, the pandemic has not curtailed our ambitions. The 6-8 curriculum was launched in September 2021 in the refurbished temporary building on the field. Combining deep interdisciplinary learning with subject-specific lessons, the specially devised curriculum seeks to broaden pupils’ personal and intellectual growth in the pre-exam years. The introduction of the 6-8 curriculum is very much in line with the School’s founding aims of generating innovation in education (to be a ‘model’ school) whilst keeping the personal and academic development of the pupils as its core. The appointment of Alistair McConville as Deputy Head this year also added significant weight to our educational ambitions as a school. Alistair was former Deputy Head Academic and Director of Learning and Innovation of Bedales and is one of the founders of the Rethinking Assessment Group, a coalition of state and independent school educators committed to challenging the current orthodoxy in terms of our national approach to exams. As part of his remit, Alistair will be looking at our current provision in Years 9 to 11. The pandemic is by no means over and may continue to impact the school’s future for months, perhaps years to come. Council is mindful of this in terms of its long-term planning as it continues to invest in the school for present and future generations. In terms of our site, a major development this year was the completion and opening of our Sixth Form Centre. The new building, designed by architects Walters and Cohen, provides a dedicated space for our sixth formers to work and socialise in. As well as providing a much-needed resource for current pupils, the building is a significant addition to our campus in terms of the In terms of governance, Council has continued to work closely with Robert and the Senior Leadership team to oversee the operation of the school in terms of its day-to-day running and with a view to its longer-term strategic development. A key development this year was Council’s decision, in the summer term, to commission a masterplan. Work is already underway and, once completed, in early 2022, the masterplan will enable informed decision-making about future development of the site in accordance with our educational aims. Other significant strands of work for Council this year included THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 4 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## INTRODUCTION BY THE CHAIR OF COUNCIL our continuing commitment to building partnerships, in line with our strategic commitment to sharing our practice beyond the KAS community. Work in the area of diversity and inclusion is a priority and is also underway, with a view to making meaningful change in this area in the coming months. Council as a whole has repeated its process of self-review, based on best practices in the UK charity sector, leading to opportunities for improvements in the performance of individuals and Council as a whole. As a result of this work, we have updated our Council Strategy with highlighted objectives across a broad spectrum of areas. Full Council meetings are always attended by staff representatives and this year Council has continued its commitment to working with School Six, the elected Student representatives for the Upper School. This is in keeping with the School’s ethos of valuing pupil voice and we intend their contribution to play an active role in future discussions around the governance of the School. We were pleased to welcome three new elected members at the last AGM. The cycle of renewal is crucial to effective governance and accordingly we have maintained our recruitment and succession planning in order to ensure that, as a body, we are operating as effectively as possible. As we approach our next round of elections, I would like to thank our retiring Council members this year for their commitment and contribution to the School during their tenure. Council works very closely with the Director of Finance and Operations (“DFO”). Julie Saunders stepped back from the role in July after 4 years in order to take up the position of Bursar at Pembroke College in Oxford. On behalf of Council, I would like to thank Julie for her work at KAS. I would also like to welcome Victoria Heeley, our new DFO and to wish her every success in the role. Looking to the future, KAS will celebrate its 125th anniversary in 2023. This will provide an opportunity to acknowledge the School’s history as well as to look to its future development. A steering group has been formed, under the guidance of our Development Office, and a number of events are being planned which will bring together the community past, present and future to celebrate this remarkable milestone. Last year we could not have achieved so much without the continued support of our members and the School’s staff and parents. Council offers its heartfelt thanks to every one of you for being a vital part of the Society and enabling it to continue its work. Finally, I would like to take this opportunity to thank Robert, the Senior Leadership Team and all staff for their outstanding contribution and commitment. ## **ANNABEL CODY,** Chair of King Alfred School Society Council THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 5 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT BY COUNCIL for the year ended 31st July 2021 The King Alfred School Society is a company and registered charity. The principal activity of the Society is the operation of the King Alfred School in North London. However, the Society has a wider remit than simply the operation of the school. It also aims to promote the wider advancement of education through research and to disseminate the results of that research. Additionally, the Society seeks to broaden its impact by making its education and educational philosophy available to a wider range of students. The Members of the Society, of whom the majority are the King Alfred School parents, elect Council members to act as charity trustees, company directors and governors of the King Alfred School. Council members are all volunteers and come from a wide range of professions and occupations. As school governors of the King Alfred School, Council members work alongside the school’s senior leadership team which is responsible for execution of policy and management of the day to day operation of the School. At its heart, the Society promotes the belief that a good education provides the opportunity for each young person to achieve their potential and to contribute to society in whatever way best suits their talents. In the report below, Council, as trustees of the Society, sets out the aims of the Society, its charitable objects, and how the Society has delivered public benefit. ## **1. OBJECTIVES, ETHOS, STRATEGIES & ACTIVITIES** ## **1.1. Aims and Objectives of the King Alfred School Society** The objects of the Society are set out in our Articles of Association. These include: - To promote the advancement of Educational Science in all or any of its branches by the diffusion of knowledge relating thereto. - To establish and carry on Schools which take account of the work of educational reformers, to initiate or co-operate in educational research, and encourage the fullest development of whatever talents their members possess without resort to pressures which might upset the proper balance of the physical, the emotional and the intellectual aspects of the individual. ## **1.2. Ethos** The King Alfred School Society was established in 1897 by a group of parents with a specific vision that education should be based on rational, scientific principles focused on what is best for the individual development of the child as a whole person. The founders were influenced by reformers such as Pestalozzi, Herbart and Froebel and they set out principles of the Society by which schools were to be operated. The principles of education promoted by the Society have been developed but not materially changed in the years since and include: - Being co-educational with a mixed ability intake - Encouraging parental involvement - Creating a trusting collaborative relationship between teachers and pupils - Developing each individual’s talents fully without the pressure of competitive testing - Valuing learning for its own sake rather than the attainment of awards - Encouraging a spirit of enquiry and developing habits of work and self-reliance - Being free from any religious or political organisation - Maintaining the value of play and a minimum of rules. - “The King Alfred School Society Framework”, first published in 2012, illuminates this approach and how it is put into practice.. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 6 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT for the year ended 31st July 2021, continued ## **1.3. Strategies for Achieving Objectives** ## **1.3.1. Educational Research and Dissemination** The Society aims to serve as a role model, inspiring and influencing others to create a better kind of education. It ran seminars and conferences and held a third TEDx in September 2021 to share ideas and to provide a forum for debate. The Society also promotes projects that model our approach, generating evidence of best practice. The Society supports research both externally and from individual staff members who can be offered financial assistance with their projects. Visitors are welcomed to the School and come from far and wide. ## **1.3.2. The School** Today, the King Alfred School educates over 670 children aged 4 to 18. The School provides a warm and nurturing environment in which children are treated as individuals, and appreciated for who they are. Within the School, relationships between pupils and staff are informal and trusting. We minimise unnecessary pressure, and our approach to learning, testing and exams is based on the best available research evidence. We foster the intrinsic motivation of a child over extrinsic approval and teach every individual the importance of valuing their achievement on their own terms, rather than in relation to others’ expectations. Having small classes with excellent teaching means that the needs of every child are planned for. Council and the Senior Leadership Team are implementing the five-year strategic plan as we approach our 125th Anniversary in 2023. This follows significant work on articulating our vision, and has been richly informed by input from students, staff and parents. The three areas of the strategic plan are: - Developing a holistic “4 to 18” curriculum, which is comprised of five horizontal age blocks and three vertical themes that thread through the entire age range. - Increasing our impact on the world, both through empowering our students to be change-makers, and by disseminating our ideas throughout the broader education system. - Investing in our campus. - Significant work has taken place over the last 12 months in each of these areas. The strategic plan marks an exciting chapter in the development of the School and will enable us to more fully express our vision, and achieve our ambitious goals. ## **1.3.3. Broadening our Reach** The Trustees believe that it is important that access to the King Alfred School education is not restricted to those who can afford our fees. Each year, means-tested bursaries are awarded to children entering Year 7 which, subject to financial review, remain in place throughout the school career of the child concerned. Means-tested bursaries are also awarded for children joining the Sixth Form. In addition, temporary hardship relief is provided on a means tested basis for children whose circumstances have changed. Partnerships at home and abroad continue to play an important role for both the Society and the School. In the UK, the School has links with local state schools, such as the Archer Academy, and outreach activities, particularly to share access to our forge and counselling services. Internationally, the School has active partnerships with schools in Namibia and Sri Lanka. ## **1.4. Public Benefit** The Trustees confirm that they have complied with their duty in section 17 of the Charities Act 2011 to have due regard to the guidance on public benefit published by the Charity Commission, including the guidance “Public Benefit: running a charity” (PB2). THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 7 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT for the year ended 31st July 2021, continued ## **2. REVIEW OF ACHIEVEMENTS AND PERFORMANCE** ## **2.1 Overview** In a year still impacted by COVID-19, the Society made significant progress against its planned activities. |**2.1 Overview**
In a year still impacted by COVID-19, the Society made signifcant progress against its planned activities.|**2.1 Overview**
In a year still impacted by COVID-19, the Society made signifcant progress against its planned activities.| |---|---| ||| |**1. The King Alfred School**|| |1.1 Developing the curriculum|Signifcant work is taking place in the Lower school on the development of skills and attributes through
the methodology of enquiry.| ||The Years 6 to 8 curriculum was launched in September 2021.| ||Work has begun on the future shape of Year 9 to 11, and we have introduced our frst non-GCSE course
into this part of the school.| ||The Sixth form curriculum continues to develop, with a greater emphasis on independent work through
the EPQ, and new subjects such as Sociology A level.| |1.2 Continuing to work with
staff and students to embed
THRIVE into the everyday
experience of School life.|In the Lower School, teachers have embedded THRIVE attributes into the day-to-day experience of the
children. In the Upper School, planning was completed for a Year 9 Graduation ceremony built around
the THRIVE attributes; implementation was postponed due to Covid.| |1.3 Investment in the campus|The new Sixth Form building was completed during the year and offcially opened in September 2021.| |1.4 Implementation of the
School masterplan as well as
the preventative maintenance
programme.|The planned preventative maintenance programme continued albeit at a signifcantly reduced level whilst
the school managed the impact of the pandemic. The School’s masterplan update was commissioned and
will be completed in 2021/22.| |1.5 Continue to review our
business model so that we are
able to deliver our charitable
objectives.|The year continued to be dominated by the impact of Covid. During periods of lockdown, bubbles and
social distancing measures, the School was able to continue to deliver an engaging and effective
educational curriculum both online and in school, and keep students and the community connected. At
the end of the year, the surplus was £818,692 following a year of mimised expenditure in anticipation of
future Covid recovery costs.| |**2. Educational Research and Dissemination**|| |2.1 A third
TEDxKingAlfredSchool|The third TEDxKingAlfredSchool was planned during the year and, though postponed, took place in
September 2021 to great acclaim.| |2.2 Further work on the
Village Project and Funding
of research projects.|Documentation of the Village project continues and “A Day in the Life” magazine was recently published.| ||A research paper on the current English school landscape of alternative courses for GCSE was produced
and shared within the School and more widely.| ||Research has begun on the impact of the 6-8 Curriculum, supported by Bill Lucas from Winchester
University.| |2.3 Increased engagement of
Old Alfredians as we
approach our 125th
anniversary.|The number of alumni actively engaging with the school has continued to increase with a series of events,
continued virtually during lockdown and in person from Autumn 2021, as well as regular newsletters and
e-news bulletin. The 125 Voices project is providing an oral history of the School.| |**3. Broadening Impact**|| |3.1 International partnerships|Visits to Sri Lanka and Namibia remained postponed but we stayed in touch with our partners, and will
resume the connection as soon as circumstances allow.| |3.2 Sharing with like-minded
schools and educational
institutions|The School has become a founder member of the “Rethinking Assessment” group which is exploring
alternatives to GCSE, recently appointing the co-founder of the movement as Deputy Head from
September 2021. We hosted the frst face-to-face meeting of the group at KAS and are actively involved in
writing for and contributing to the movement. A series of events entitled “Education on the Move” is
planned with a flm night in Autumn 2021 and a major conference to be held at the School in Spring
2022.| |3.3 Programme of bursaries
and hardships|33 bursaries were awarded with additional fee remissions offered in cases of Covid hardship.| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 8 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 TRUSTEES’ REPORT for the year ended 31st July 2021, continued ## **2.2 The King Alfred School** In 2020/2021, 656 students (2019/2020, 662) were educated within the King Alfred School, of which 93 (2019/20, 57) received education at subsidised rates or free of charge. The School has a holistic vision of educational performance and is committed to the notion of a ‘broad definition of success.’ This means that exam results are an outcome of a good education, and not the driver of a good education. The Society therefore considers its School’s exam performance using a nationally recognised value-added method which evaluates whether or not the School has supported pupils to achieve outcomes above their predicted grades in public examinations. The academic year ended July 2021 was the seventh year that the School value added has been independently evaluated. In all seven years, on this measure, the School was ranked amongst the top 25% of schools nationally overall. In 2020/21 A level results showed that the school was performing in the top 1% of schools nationally (ALIS data). The summer examination season 2021 was again cancelled by the government in response to the disruption to teaching and learning caused by the Covid pandemic. Schools were asked to submit Teacher Assessed Grades (TAGs) on behalf of students, which were evidenced based grades based on a range of assessments completed during the GCSE or A level course. The process was thorough and rigorous in all subjects, with portfolios of assessments for each student in each subject graded using grade descriptors issued by exam boards. Nationally and at KAS, the results in 2021 were significantly higher than those in 2019 when traditional exams took place. It is important to note that a key reason for this is not because teachers were more generous than exam markers in interpreting the grade descriptors, but because the artificial ‘cap’ on grades (called ‘comparative outcomes’) was lifted in 2020 and 2021. In addition, the different style of assessment (smaller chunks over time as opposed to everything on one day) enabled many more students nationally and at KAS to demonstrate more effectively the level they were working at. In terms of these TAG results, the School once again achieved well for mixed ability cohorts: KAS GCSE raw scores were significantly better than the National schools average. 74% of grades were 7/8/9 * compared to 29% as the National figure. 99.5% of GCSE grades were 4 grade or above, compared to a national average of 77%. ## **The School’s GCSE Results for the Last Three Years** |**Grades**|**The School**
**2021**|**National %**
**2021**|**The School**
**2020**|**National %**
**2020**|**The School**
**2019**|**National %**
**2019**| |---|---|---|---|---|---|---| |A*-A|73.5|28.5|74.6|25.9|47.9|20.7| |**A* -C**|99.5|76.9|100|75.9|95.3|67.1| A Level raw results also show the School achieving higher than National averages and independent school averages. For example, 73% of grades were A/A* compared to 44% nationally. We were also pleased that again our highest achieving academic students achieved at the very highest level, with 3 A* A Level grades and entering the most competitive Universities. In terms of progression routes, 100% of A level pupils went onto their first choice higher education institution, and all students who wished to go on to University achieved a place. This compares very well to other institutions in the independent sector. The second cohort successfully completed the UAL Diploma in Performing Arts this summer. This course is equivalent to three A levels. Two thirds of students achieved distinctions, which are equivalent to three A*s at A level and one third achieved a merit. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 9 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT for the year ended 31st July 2021, continued ## **The School’s A Level Results for the Last Three Years** ||**A*/A %**|**A*-B %**|**A*-C %**|**A*-E %**| |---|---|---|---|---| |**The School 2021**|72.5|87.3|97.2|100| |**National 2021**|44.3|69.8|88.2|99.5| |**Independent 2021**|70.1|88.3|96.4|99.7| |**The School 2020**|62.0|87.7|96.9|100| |**National 2020**|35.7|63.4|86.7|99.6| |**The School 2019**|34.5|65|90|99| |**National 2019**|25.2|51.1|75.5|97.5| |**The School Averages 2019 – 2021**|56|80|95|99| |**National Average 2019-2021**|35|61|83|99| In response to the Covid pandemic, the School continued its learning programme online through KAS Connected during the January and February 2021 lockdown, ensuring that all children continued to access the curriculum from home. When government guidelines permitted a return to school, the vast majority of pupils returned with good attendance. The United Nations Sustainable Development Goals are explicitly and systematically built into the Lower School curriculum with students engaged in a range of activities such as a Climate Change Awareness programme. The School further improved its environmental credentials with student eco clubs in both the Lower and Upper Schools. Students continued to have a significant voice. The King Alfred School Peer Listener’s Programme is now embedded in the timetable. Representatives from “School Six”, the elected student representatives for the Upper School, take the lead in coordinating a Pupil’s Council, which comprises representatives from each Upper School year group. And, in the Lower School, student councillors represent each class in Years 2-6 and student Council meetings take place on a regular basis. In January 2018, ISI (Independent Schools’ Inspectorate) carried out a “compliance” inspection of the School to judge whether it met the regulatory requirements for running a school; the School passed in all areas. The next ISI inspection is likely to be a “Quality” inspection which will look at the quality of education the School provides. This was expected in early 2021 but has been delayed due to Covid. The Development Office has continued to provide a much-needed hub for School alumni (Old Alfredians). Their stories and connections with the School provide a wonderful tapestry of experience and are sowing the seeds for a valuable network connecting past, present and future generations of Alfredians. During the year, the @OldAlfredians social media account continued to grow, and the very successful Connections series continued to link Old Alfredians with Sixth Formers to provide careers advice and insights. In addition, the Development Office oversaw the second year of the Annual Fund, enabling investment in the Main Hall and a new astroturf surface for the Lower Court. The new Sixth Form building was completed in the year and officially opened by an Old Alfredian in September 2021. The fit out of the 6 to 8 building was carried out in the year, ready for the innovative learning experience to commence in September 2021. ## **2.3 Educational Research and Dissemination** The 6 to 8 curriculum has been launched, and is currently being evaluated through a combination of external and internal input. Professor Bill Lucas, Professor of Learning and Director of the Centre for Real-World Learning at the University of Winchester, has worked with the School to set up the evaluative framework, which school staff are then implementing. Work on the 6 to 8 building was completed to ensure that the innovative and flexible space was ready for the new curriculum experience in September 2021. During the year, Society members, staff and students planned for the third TEDxKingAlfredSchool to share their talks on what excites, terrifies or motivates them. The 14 speakers prepared and rehearsed their personal and moving stories and THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 10 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT for the year ended 31st July 2021, continued were initially disappointed that the event was postponed to September 2021, but delighted when it did go ahead with a live audience and an impressive online reception, with many currently having several thousand views. The Village Project went ahead as usual in June 2021, with Year 8 students establishing a self-sufficient community in the School grounds, governing their society, building their own shelters and preparing their own food. Work continued on the book about the Village Project, commissioned by the Society and written by Stephen de Brett. The publication will cover the ‘what, why and how’ of the Village, describing the history and inherent philosophy behind it, whilst also providing a handbook for other schools so that they can replicate this extraordinary outdoor experiment. In addition, a shorter publication was produced called ‘A day in the village’ to give visitors an insight into the experience. Looking forward to our 125th anniversary in 2023, the Society aims to bring the community together to celebrate the founders’ aims, the history of the School and the Society, and the role they have to play in shaping the education conversation in the future. The development office will play a key role in increasing our engagement with Old Alfredians. ## **2.4. Broadening Impact** In 2020/21, 33 (2019/20: 35) bursaries were in operation with a value of £460,258 (2019/20: £396,406). In addition, fee remissions and hardship awards totalled £495,508 (2019/20 £404,251). Unfortunately, due to Covid, visits to our partner schools in Namibia and Sri Lanka had to be cancelled again. In the UK, the partnership with Archer Academy to provide counselling support continued. Meanwhile, the School works in partnership with Tudor Park Education Trust (TPET) where the Headteacher is on the Board of Directors. The School also participates in the SCAMP project (Study of Cognition, Adolescents and Mobile Phones) and a mobile forge has been designed and has begun to offer the valuable forge experience to other schools. ## **3. FINANCIAL REVIEW AND RESULTS** ## **3.1. Income and Expenditure** Both income and expenditure were impacted by the COVID-19 pandemic and the move to remote learning during lockdown. As in previous years, by far the largest single income generating activity of the Society was the School, with 97% of the Society’s income representing educational activities for the School. The remaining 3% of income arose from school meals, activities of the trading company and donations. On the income side, the School held 2020/21 fees at the 2019/20 pre-Covid level. At the same time, additional financial support continued to be provided to families whose incomes had been severely impacted by Covid. Total income of the Society amounted to £12,715,340 for the year compared to £12,440,044 for 2019/2020, representing a rise of 2.2% following the temporary fee reduction in the Summer Term 2020. The income included £221,486 (2019/20 £180,759 ) in donations and gifts. Some donations were given for specific purposes by the donor and appear as “restricted” funds. Others were donated unrestricted and were designated by the trustees for particular purposes, and appear as “designated” funds. Donations which are neither restricted nor designated are unrestricted. On the expenditure side, whilst we continued to minimise small capital works and some maintenance, the return to in-school learning as far as possible increased the running costs of the organisation. Expenses of the Society therefore increased from £11,549,796 in 2019/20 before adjustment for the pension provision to £11,989,862 in 2020/21. Expenses, as in previous years, were mostly directly or indirectly costs of running the School (95%). The remaining 5% represented costs of the Society’s research and trading activities. Of the costs associated with running the School, 68% were teaching costs, and 11% represented the cost of operating the School site, including investing in the infrastructure, insurance, maintenance and repairs. Support costs including the Bursary, the registrar, catering and information technology added a further 21%. Overall, the Society finished the year with a financial surplus of £818,692 (£949,705 in 2019/20). THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 11 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT for the year ended 31st July 2021, continued ## **3.2. The Trading Company** The King Alfred Trading Company Limited manages after-school, weekend and holiday lettings of the grounds and buildings as well as the coffee kiosk. It is a wholly owned subsidiary of the Society and its profits are gift aided to the School. The results of its trading activities are set out in Note 5 and are consolidated into the financial results. The total operating loss of £4,409 for the year will be carried forward to the next financial year and the Society has agreed to provide ongoing financial support to the Company as necessary to ensure that it is able to meet its liabilities. The donation payable of £28,239 for the year was the operating profit from the previous year. The trading loss in 2020/21 was due to lower income from lettings and increased costs as a result of Covid. It expects to return to profitability in 2021/22 with an increase in lettings and the re-opening of the coffee kiosk. ## **3.3. The Balance Sheet** At 31 July 2021, net assets of the Society totaled £32,517,577 (2020: £31,698,885). The most significant asset of the Society is the land and buildings of the School which had a net book value of £35,250,190 at the end of the year (2020: £33,997,545) which includes the costs incurred as at 31 July 2021 in relation to the new Sixth Form Centre. Other fixed assets totaled £923,423 (2020: £1,444,146) of which £121,111 relates to the 6 to 8 building fit out and is included in Assets under Construction. Unrestricted funds of the Society total £32,258,786 with £826,036 of these funds designated for specific purposes including £649,610 for a Covid Support Fund. Restricted funds total £258,791 including a bursary fund of £106,046. Net current assets on 31 July 2021 were £2,377,957 (2020: £1,601,998). Debtors of £410,544 (2020: £344,408) are primarily outstanding school fees at year-end which will be collected as part of the normal termly cycle. Cash, the other current asset, was £4,178,660 at year-end (2020: £3,501,203), sufficient to meet the ongoing cash needs of the Society without having to draw on the overdraft facility, despite significant swings caused by termly income covering regular monthly costs. Current liabilities, at £2,211,247 (2020: £2,243,613), include deposits, tax and national insurance payments, normal trade creditors and holiday accrued during the year but not yet taken. Long-term creditors, at £5,132,664 (2020: £4,350,261), mostly comprise fee deposits and advance fee payments of students in the early years of their studies. The long-term provision of £901,329 represents the potential deficit on the Independent Schools’ Pension Scheme. ## **3.4. Reserves** On 31 July 2021, the Society’s cash balances were £4,178,660 (2020: £3,501,203). Free reserves, defined as unrestricted funds plus long-term creditors minus fixed assets, were £2,119,166 compared to £1,403,206 on 31 July 2020. The Society aims to have an operating surplus of unrestricted income each year. It does not aim to build up its free reserves but to invest its operating surplus in capital projects and infrastructure to keep the School at the forefront of the independent school sector. The Society also aims to remain in a cash positive position throughout the year, with access at all times to £1,000,000 of further cash, if needed. Council monitors the level of cash reserves on a termly basis and reviews the reserve policy on an annual basis. To ensure that the Society has adequate access to the cash, it has an arranged bank overdraft facility that allows up to £1,000,000 to be drawn. The bank overdraft facility was not used during 2020/21. In addition, to allow flexibility and provide a further cash cushion if required, the Society arranged a five-year term loan of £1,000,000. Council considers the level of free and cash reserves currently held to be adequate. ## **3.5. Investment Policy** The School holds the cash it needs to meet its day-to-day requirements in its current account. Excess cash is invested in interest-bearing deposits. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 12 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT for the year ended 31st July 2021, continued ## **3.6. Going Concern including COVID-19** In 2018/19, the School successfully absorbed the increase in the employer’s contribution to the Teachers’ Pension Scheme from 16.48% to 23.6% from 1 September 2019 agreeing financial measures to ensure that the increase does not affect the future sustainability of the School. This was followed in a relatively short space of time by the impact of Covid 19 during the 2020 financial year. During 2020/21, Council worked hard to ensure the financial sustainability of the Society as the impact of the Covid pandemic continued. School fees were frozen for the academic year to avoid increasing the financial burden for families at a difficult time, and the hardship fund set up in the previous year continued to support those families most impacted by the pandemic. The teaching and learning was delivered successfully both online and in school as national circumstances required, and all but essential expenditures continued to be frozen. As a result, School numbers remained steady and the Society recorded a surplus in 2020/21, with £758,693 of the total of £818,692 representing unrestricted and designated funds. Council set aside funds of £835,412 in the prior year to allow the School to cover operational losses in future years when the economic impact of Covid is expected to be more significant. In 2020/21 a transfer of £185,802 was made from this fund to unrestricted funds in respect of Covid-19 hardship awards. The balance of the amounts set aside in 2019/20 are anticipated to be required over the next year or so to facilitate essential expenditure deferred during the pandemic. To provide further liquidity and resilience, the Society has renewed its £1m overdraft facility and maintains the term loan of £1m. Overall, Council is confident that the Society has adequate resources to continue its activities for the foreseeable future. School numbers have remained at 650 and above, the Society has cash reserves and banking facilities in place to provide liquidity and Council expects that the School will report a surplus for the 2021/22 financial year, supported by utilisation of the Covid designated fund. In light of the above, no material uncertainties have been identified which compromise the Society’s operations. Accordingly, the financial statements have been prepared on a going concern basis. ## **4. PLANS FOR FUTURE PERIODS** Notwithstanding Covid and all that it entails, the Society and the School are at an exciting moment in their development. Our strategic plan is well underway and we are making progress with the ambitious projects that we are confident will benefit our entire community and be sustainable for the future. During 2021/22, Council and the Senior Leadership Team will take forward the strategic plan by: - Challenging the current educational paradigms through research, documentation and influence. - Further strengthening the School and Community through a new education strategy, delivering the Year 6-8 curriculum, refining the vision for the sixth form, beginning the process to examine the GCSE years, and refreshing the vision for early years’ education. - Continuing to broaden our impact via partnerships and outreach. - Managing our finances so that we can invest in our buildings and education. ## **4.1 Challenging the Educational Paradigms** The cancellation of exams in 2019/20 and 2020/21 has led many to question the validity of the UK assessment system and in particular the value of GCSEs leading to perhaps the best opportunity in a generation to shift the system as a whole. The Society is excited to be engaged in the dialogue. In 2021/22 we plan to: - At Year 9 to 11, play a leading role within the ‘Re-thinking’ Assessment group to contribute to the conversation on GCSEs in the future and the alternative pathways that could be taken. - As a member of the international network called the Common Ground Collective (CGC) which brings together innovative schools around the world, collaborate on fresh approaches to curriculum design and teaching and learning. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 13 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT for the year ended 31st July 2021, continued - With the launch of the Year 6-8 curriculum, set up a research project together with an academic institution, which will enable us to document the innovative aspects of our work and collect evidence of impact. - Take part in and present to the international WISE summit in Qatar, which brings together educational innovators from around the World. - Mount a series of events entitled “Education on the Move” with a film night in Autumn 2021 and a major conference in Spring 2022 at which educators at the forefront of innovative thinking will address an audience of the community and other schools. ## **4.2 Further Strengthening the School and the Community** Whilst there remains some uncertainty in the educational environment, Council is determined that we do not let the attention on Covid prevent us from continuing to develop the quality of our educational provision with work on a new strategy with an ambitious vision for each of the five stages of the stage of the educational journey; early years (Reception to Year 2), Years 3-5, Years 6-8, Years 9-11 and Sixth Form. Other plans include: - In September 2021, the first students started their Year 6 to 8 journey with a new curriculum, a repurposed space, and with dedicated Year 6-8 teachers - In the Sixth Form, we have moved into the new building, enhanced our curriculum and redefined our vision. - In the Lower School, significant work will take place to develop our phonics programme and our approaches to enquiry and pupil agency. - We will further promote diversity and inclusion supported by Council and three staff working groups – curriculum, culture and institutional practices. - Finally, we will continue to look at innovative new ways of engaging alumni and connecting them with the current generation of students. ## **4.3 Continuing to Broaden our Impact** Council is committed to increasing the Society and School’s impact and, during 2020/21, will work together with the Senior Leadership Team to develop and define a new strategy and approach. Meanwhile, the School’s programme of bursaries will continue with hardship provision to remain available to support families severely impacted by Covid. Although it may not be possible to travel internationally, we will continue to support our partners, Okongue Primary School in Namibia and the King Alfred School Kiniya in Sri Lanka. Closer to home, we will continue to share with like-minded schools and educational institutions via exchanges and virtual mini conferences exploring different focus areas. In addition, we will share more widely our expertise in well-being and pastoral care, through conferences, publications and our partnership with the Archer Academy where we will continue to provide counselling support to the Academy’s pupils. ## **4.4 Maintaining our Financial Results and Investing in the Future** We had forecast a budget deficit for 2020/21 for the first time in many years, however due to careful management of costs, including all but the essential maintenance items postponed, we were able to report a surplus. As we look forward to 2021/22, we have once again forecast a small budget deficit due to the expected continued impact of Covid on both income and expenditure. Whilst a modest fee increase was implemented for September 2021, the pay increases for staff processed in 2020/21, in accordance with our pay policy to match salary increases in the public sector, were higher such that there is a relative shortfall in our budget. Other operational costs increases are associated with implementing Covid recovery measures. The Society will also continue to provide financial hardship awards to support members of the community most impacted by Covid. The Society will use the surplus generated in 2020/21 to finance this operational deficit. At the same time, Council will continue to carefully monitor the School’s cash flow and develop scenarios for the future. We expect student numbers to remain strong. During the year, the recently commissioned masterplan will be finalised such that Council can determine the next phase of investment in the School’s campus enabling our buildings to support our educational aims. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 14 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT for the year ended 31st July 2021, continued The Grounds & Buildings Committee of Council will continue to oversee the implementation of the School’s planned preventative maintenance programme, ensuring that reduced maintenance expenditure in 2019/20 and 2020/21 does not have a long-term impact on the state of the School’s buildings. ## **5. STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **5.1 Governance and Organisation** The King Alfred School Society is a company limited by guarantee governed by its Articles of Association which were last updated on 8 December 2015. The King Alfred School Society is registered as a charity with the Charity Commission. Council members, as Directors and Trustees, have the ultimate responsibility for good governance of the Society and all of its activities and is the highest decision-making body. Council members oversee the work of the senior leadership team of the School who are responsible for execution of policy and management of the day to day operation of the School. On 31 July 2021, there were 18 Council members ## **5.2. Conflict of Interest** Council takes the management of potential conflicts of interest very seriously and the Articles of Association, adopted in December 2015, brought the provision in this area up to current best practice. Each year, Council members receive a briefing note describing their responsibilities and giving guidance on managing conflicts. In addition, the Chair of Council and the Chair of the Governance Committee are available to help Council members to identify conflicts and to deal with them appropriately, which may include making a declaration to Council or withdrawing from discussions and/or decisions. ## **5.3. Development and Fundraising** The Society has registered with the Fundraising Regulator and complies with the Fundraising Code of Practice. It has received no complaints about its fundraising activities. The Society has developed rigorous procedures to support its fundraising activities including a supported charter, gift form and gift aid declarations. It does not use third party participator firms to support fundraising activities. Fundraising practices, including GDPR compliance, are overseen directly by the Governance Committee. ## **5.4. Appointment, Induction and Review of Performance of Members of Council** Council can be between 7 and 21 members. Council members are elected by the Society members, most in a general election, for a term of up to four years. Council reserves three places for co-opted members. The Treasurer and President are elected annually by members at the Annual General Meeting. Council elects its own Chair annually following the Annual General Meeting. In 2020/21, the Council Committee structure continued to go from strength to strength. The Education, Governance, Finance, and Grounds & Buildings Committees provide Council with specific and broader skills in their area of focus. The Society Committee oversees the programme of conferences, outreach and research whilst a Bursaries Committee reviews all applications for financial support. The Community Committee, established at the end of 2019/20, was fully operational, bringing together communications, fundraising and parent staff. Council repeated its process of self-review, benchmarking Council’s performance against the Charity Governance Code and updating its strategy, action plan and objectives. This will continue to be reviewed each year. All new members of Council undergo induction training and meet with the Director of Finance & Operations and Chair shortly after appointment. Ongoing training is provided to all Council members through training days and other appropriate external courses. Council is also fortunate that Sarah Phillips, Council member and former Treasurer, sits on the board of AGBIS, the umbrella organisation for governors of independent schools. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 15 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## TRUSTEES’ REPORT for the year ended 31st July 2021, continued ## **5.5. Remuneration of Key Management** Key management personnel comprise the Head, the Head of Lower School, the Deputy Headteacher in the Upper School and the Director of Finance & Operations. Their remuneration is reviewed by the members of the Finance Committee of Council, together with the Head, where appropriate. The review takes account of school survey data, published information from comparable schools, the maintained school leadership scale and general commercial knowledge. ## **5.6. Risk Management** Council is satisfied that the major risks to which the Society and School are exposed have been reviewed and that there are systems and procedures in place to manage those risks. The Governance Committee oversees the Society’s risk management process with individual risks delegated to relevant Council committees. Council has identified a number of critical risk areas and defined for each of these risk areas a risk control process which sets out the level of risk, what the controls are, who is responsible, how frequently the risk should be monitored, and any further actions required. Risks are grouped into seven areas shown in the table overleaf. Each risk is reviewed in depth at least once a year by one of the Council Committees. Given the specific challenges posed by Covid, Council, in 2019/20, separately monitored the most significant risks related to the pandemic. These are shown below: |**Risk**|**Risk Mitigation Strategies**| |---|---| |COVID-19
- including risk to the community
and to the School’s sustainability|• Council takes note of government guidance and implements appropriate Covid prevention
strategies.
• Risk assessments are carried out and shared with Council, staff and parents.
• The Governance Committee reviews the risk assessment and receives regular updates on Covid
measures, Covid incidence and issues as they arise.
• Immediate transition to online learning during lockdown with continual improvement in the
quality of learning.
• Cash fow scenarios modelled and updated on a regular basis and discussed by the Finance
Committee.
• A medium-term bank loan has been secured and the overdraft facility renewed to provide fur-
ther fnancial resilience.
• Covid hardship fund established to support the community and help student retention.| The table overleaf shows the risk register and the risk mitigation strategies for the other six risk areas. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 16 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 TRUSTEES’ REPORT for the year ended 31st July 2021, continued ## **The King Alfred School Risk Register 2020/21** |**Risk Area**|**Risk Mitigation Strategies**| |---|---| |1. Strategic Risks|• Council approves the Strategy and Strategic Plan and the Head reports to Council
• Council monitors the external environment and the School’s fnancial position
• Council oversees educational standards and approach| |2. Operational Risks, includ-
ing:
- reduction in pupil numbers;
- major incident|• The Finance Committee and Council carefully monitor school numbers and factors which affect
admissions
• The Designated Safeguarding Lead works closely with the Head and Council to ensure safeguard-
ing is embedded into the School and Society’s practices culture
• The Critical Incident Management Plan is regularly reviewed and updated
• The Grounds & Buildings Committee receives regular reports on the planned preventative mainte-
nance programme and on business continuity plans| |3. Financial Risks|• The Finance Committee reviews and approves the annual budget, and monitors spend against
budget and debtors
• Long term and short-term cash fow forecasts are maintained and reviewed
• Financial controls are reviewed on a rolling basis by the external auditors and Finance Committee| |4. Compliance Risks|• Governance Committee reviews an annual compliance report
• External audits in a wide range of areas| |5. Human Resources Risks,
including:
- recruitment & retention risk
- key person risk|• The Governance Committee reviews HR strategies and policies on a rolling basis.
• The Head and other members of the senior leadership team are appraised every 2 years including
360 feedback
• Council carries out a self-review annually| |6. Asset Risks, including
Buildings and IT|• The Grounds and Buildings Commitee reviews the planned preventative maintenance programme,
oversees security arrangements and maintains the master plan
• The Finance Committee receives regular update from the IT team on IT security| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 17 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 STATEMENT OF TRUSTEES’ RESPONSIBILITIES for the year ended 31st July 2021 The Council Members who are Charity Trustees (and directors of King Alfred School Society for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires Council Members to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Council Members are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Council Members are responsible for keeping proper accounting records that disclose with reasonable 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. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Council Members are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions. In so far as the Council Members are aware: - there is no relevant audit information of which the charitable company’s auditor is unaware; and - the Council Members have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The Trustees’ Report is approved by the Council Members of King Alfred School Society. The strategic report, which forms part of the Annual Report, is approved by Council in their capacity as Directors in company law of the King Alfred School Society. ## N Friedlos Registered office and official address: ## **BY ORDER OF THE COUNCIL** The King Alfred School Society Limited Manor Wood North End Road London NW11 7HY Treasurer: Nick Friedlos Date: 7 December 2021 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 18 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE KING ALFRED SCHOOL SOCIETY ## **Opinion** We have audited the financial statements of The King Alfred School Society for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities including the Summary Income and Expenditure Account, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement 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: - give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 July 2021 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting 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 events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern 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 information** The trustees are responsible for the other information. The other information comprises the information included in the Introduction by the Chair of Council and the Trustees’ Annual Report. 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. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 19 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE KING ALFRED SCHOOL SOCIETY, continued ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees’ Annual Report (which includes the strategic report and the directors’ 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’ Annual Report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and 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: - adequate accounting records have not been kept by the parent charitable company; or - the parent charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees for the financial statements** As explained more fully in the trustees’ responsibilities statement set out on page 18, 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 group’s and the parent 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 group or the parent 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 20 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE KING ALFRED SCHOOL SOCIETY, continued Based on our understanding of the group and parent charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to safeguarding regulations, health and safety law, GDPR and employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the independent school regulations, Companies Act 2006, the Charities Act 2011, and payroll taxes. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included: - Inspecting correspondence with regulators and tax authorities; - Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Evaluating management’s controls designed to prevent and detect irregularities; - Identifiying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and - Challenging assumptions and judgements made by management in their critical accounting estimates. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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. Lee Stokes (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP (Statutory Auditors) 10 Queen Street Place London EC4R 1AG Date: 21 January 2022 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 21 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) ## CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES including the income and expenditure account for the year ended 31st July 2021 |**Unrestricted**
**Notes**
**Funds**
**2021**|**Unrestricted**
**Notes**
**Funds**
**2021**|**Designated**
**Funds**
**2021**|**Restricted**
**Funds**
**2021**|**Total**
**2021**||| |---|---|---|---|---|---|---| |||||||**Total**| |||||||**2020**| |**INCOME FROM:**|£|£|£|£||£| |**Charitable activities**
1||||||| |School fees|12,324,445|-|-|12,324,445||11,969,361| |KASS membership|-|11,550|-|11,550||14,255| |**Trading activities**||||||| |Tradingincome|1,863|-|-|1,863||30,995| |**Investments**
1||||||| |Investment income|2,982|-|-|2,982||19,568| |Rents and lettings|5,629|-|-|5,629||36,344| |**Donations and Legacies**
1
Grants and donations
**Total Income**
**EXPENDITURE ON:**
**Charitable activities**
2
Education
**Raising funds**
2
Lettings expenses
Trading expenses
**Total Expenditure**
**Net income**
Transfer between funds
11
Net Movement in Funds
Fund balances brought forward
at 1 August2020
Fund balances carried forward
at 31 July 2021
11,12|172,821
**12,507,740**
11,799,720
6,603
2,454
**11,808,777**
**698,963**
185,802
884,765
30,547,985
**31,432,750**|104,652
**116,202**
56,472
-
-
**56,472**
**59,730**
(185,802)
(126,072)
952,108
**826,036**|91,398
**91,398**
31,399
-
-
**31,399**
**59,999**
-
59,999
198,792
**258,791**|368,871||369,521
**12,440,044**
11,457,261
6,445
26,633
**11,490,339**
**949,705**
-
949,705
30,749,180
**31,698,885**| |||||**12,715,340**||| |||||11,887,591
6,603
2,454||| |||||**11,896,648**||| |||||||| |||||**818,692**||| |||||-
818,692
31,698,885||| |||||**32,517,577**||| **Continuining operations** None of the Group’s activities were acquired or discontinued during the above two financial periods. **Total recognised gains and losses** The Group has no recognised gains or losses other than those shown in the above two financial periods. The notes on pages 25 to 45 form part of these financial statements. Details of comparative figures by fund are given in Note 16. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 22 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) CONSOLIDATED AND COMPANY BALANCE SHEETS as at 31st July 2021 |**Note**|**The Group**
**2021**
**2020**|**The Group**
**2021**
**2020**|**The Company**
**2021**
**2020**|**The Company**
**2021**
**2020**| |---|---|---|---|---| |TANGIBLE FIXED ASSETS|£|£|£|£| |School land, buildings and equipment
4|36,173,613|35,441,691|36,173,613|35,441,691| |Investments
5|-|-|2|2| ||**36,173,613**|**35,441,691**|**36,173,615**|**35,441,693**| |||||| |**CURRENT ASSETS**||||| |Debtors
6|410,544|344,408|434,511|391,342| |Cash
10|4,178,660|3,501,203|4,152,600|3,423,718| ||4,589,204|3,845,611|4,587,111|3,815,060| |**CREDITORS: Due within one year**
7
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**CREDITORS: due after more than one year**
8
**PROVISIONS: for liabilities and charges**
9
**NET ASSETS**
**FUNDS**
Unrestricted–General
11 & 12
Unrestricted–Revaluation Reserve
11 & 12
Unrestricted – Designated
11 & 12
Restricted
11 & 12|(2,211,247)
2,377,957
**38,551,570**
(5,132,664)
(901,329)
**32,517,577**
8,633,650
22,799,100
826,036
258,791
**32,517,577**|(2,243,613)
1,601,998
**37,043,689**
(4,350,261)
(994,543)
**31,698,885**
7,748,885
22,799,100
952,108
198,792
**31,698,885**|(2,204,747)
2,382,364
**38,555,979**
(5,132,664)
(901,329)
**32,521,986**
8,638,059
22,799,100
826,036
258,791
**32,521,986**|(2,241,303)
1,573,757
**37,015,450**
(4,350,261)
(994,543)
**31,670,646**
7,720,646
22,799,100
952,108
198,792
**31,670,646**| The Company’s net movement in funds for the year was £860,736 (2019/20: £963,979). Approved and authorised for issue by Council on 7 December 2021 and signed on their behalf by: ## annabel cody ## N Friedlos Chair: Annabel Cody Treasurer: Nick Friedlos Company Registration No: 00057854 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 23 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) ## CONSOLIDATED CASH FLOW STATEMENT for the year ended 31st July 2021 |**Notes**
**2021**|**Notes**
**2021**|**2020**| |---|---|---| |**£**||**£**| |**NET CASH INFLOW FROM OPERATING ACTIVITIES**
10
**1,380,766**||**1,610,416**| |||| |**CASH FLOWS FROM INVESTING ACTIVITIES:**||| |Bank interest received
2,982||19,568| |Interestpayable
(24,471)||(14,368)| |Payments to acquire fxed assets
(1,279,347)||(1,114,385)| |N**ET CASH OUTFLOW FROM INVESTING ACTIVITIES**
**(1,300,836)**||**(1,109,185)**| |||| |**CASH FLOWS FROM FINANCING ACTIVITIES**:||| |Net receipts from new deposits and deposit increases less deposits refunded|66,919|354| |Net receipts from new advance fees less advances utilised|(469,392)|23,184| |Receipt from longterm loan|1,000,000|**-**| |**NET CASH INFLOW FROM FINANCING ACTIVITIES**|**597,527**|**23,538**| |||| |**INCREASE IN CASH**|**677,457**|**524,769**| |||| |**CASH AND CASH EQUIVALENTS AT BEGINNING OF REPORTING PERIOD**|3,501,203|2,976,434| |**CASH AND CASH EQUIVALENTS AT THE END OF REPORTING PERIOD**|**4,178,660**|**3,501,203**| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 24 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021 ## **ACCOUNTING POLICIES** ## **Company information** King Alfred School Society is a limited company domiciled and incorporated in England and Wales. The registered office is 149 North End Road, London NW11 7HY. ## **Accounting convention** These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Statement of Recommended Practice (SORP 2015) (Second Edition, effective 1 January 2019) “Accounting and Reporting by charities: Statement of Recommended Practise” and the requirements of the Companies Act 2006. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound. The financial statements have been prepared on the historical cost convention, modified by the recognition of certain investments, investment properties, and financial assets and liabilities measured at fair value. The principal accounting policies adopted are set out below. ## **Going concern** These financial statements are prepared on the going concern basis. Council has a reasonable expectation that the charitable company will continue in operational existence for the foreseeable future. They are not aware of any material uncertainties which may cause doubt on the charitable company’s ability to continue as a going concern. ## **Group financial statements** These financial statements consolidate the results of the King Alfred School Society (the Company) and its wholly owned subsidiary King Alfred School Trading Company Ltd on a line by line basis. Transactions and balances between the Company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the consolidated balance sheet. A separate statement of financial activities, or income and expenditure account for the Company itself is not presented because the Company has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006 and in acordance with the FRS 102 SORP. ## **Fees and similar 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 deducting allowances granted by the Company but include contributions from Restricted Funds for bursaries. Fees received for education to be provided in future years are carried forward as deferred income. ## **Donations** Donations receivable for the general purposes of the Company are credited to Unrestricted Funds. Donations restricted by the wishes of the donor are taken to Restricted Funds where these wishes are legally binding on the Council Members. ## **Expenditure** Expenditure is accounted for on an accruals basis and recognised when there is a constructive or legal obligation to pay for expenditure. Certain expenditure is apportioned to cost categories based on the estimated amount attributable to that activity in the year. These estimates are based on staff time or on floor area as appropriate. ## **Fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 25 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) ## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued Items costing less than £2,000 are written off as an expense as acquired unless part of a larger project. Depreciation is provided on the original cost of all tangible fixed assets, except freehold land, at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as: Freehold buildings 2% on cost or valuation Furniture and Equipment 20% on cost Motor vehicles 25% on cost Assets under construction are not depreciated until completed. No depreciation is charged on freehold land. ## **Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **Financial instruments** The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charitable company’s balance sheet when the charitable company becomes party to the contractual provisions of the instrument. ## **Basic financial assets** Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. ## **Other financial assets** Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest is recognised by applying the effective interest rate, except for short-term debtors when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition. ## **Impairment of financial assets** Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in expenditure. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 26 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) ## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **Basic financial liabilities** Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## **Taxes** Under Section 505 of the Income and Corporation Taxes Act 1988 the Company is exempt from certain taxes. Full account is taken of tax credits attaching to covenants and dividends. ## **Fund Accounting** - Unrestricted General Funds: These are funds available for use at the discretion of Council in furtherance of the general objectives of the Society. - Designated Funds: These are funds earmarked by Council out of unrestricted general funds for particular purposes. - Restricted Funds: These are funds held for specific purposes as specified by the donor or through the terms of an appeal. ## **Operating Leases** Rentals payable under operating leases are charged on a straight line basis over the lease term. ## **Pensions** The Company contributes to the Teachers’ Pension Scheme operated by the Teachers’ Pension Agency and the Independent Schools Pension Scheme for non-teaching staff, a defined benefit scheme administered by The Pensions Trust. Under the provisions of FRS 102 as applied to multi-employer defined benefits schemes, both schemes are treated as defined contribution schemes and costs are charged as incurred. ## **Judgements and key sources of estimation uncertainty** In the application of the charitable company’s accounting policies, Council are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 27 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) ## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **Critical judgements** The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. The charitable company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 6 for the net carrying amount of the debtors and associated impairment provision. The annual depreciation charge for property, plant, and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 4 for the carrying amount of the property, plant, and equipment and refer to the accounting policies for the useful economic lives for each class of asset. The charitable company makes an estimate of the likely timing of repayment of deposits to establish which are due for repayment within one year. The timing of deposits being repaid is not certain as only a proportion of pupils continue from year 11 to sixth form each year. The charitable company makes an estimate of the value of work carried out by teachers in August that relate to the forthcoming financial year and deducts this from the holiday pay accrual otherwise provided as part of accruals within short term creditors as disclosed in note 7 in relation to the cost of holiday taken in August which is earnt during the current financial year. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 28 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **1. INCOME** ## **1.1 Fee Income** The Group’s activities are carried out within the UK. Income comprised: |**School Fees**
Gross fees
Less: Total bursaries, grants and allowances
**Other educational income**
School trips and camps
Textbooks and other extras
Fee deposits released
Other educational income
**Other**
Other ancilliary income
**.2 Investment Income**
Interest receivable
Rents and lettings
**.3 Grants and Donations**
**Unrestricted**
**2021**
**£**
**2020**
**£**
Job retention scheme
143,351
188,762
Other Government grants
4,034
-
Donations and gifts
25,436
8,226
**Total**
**172,821**
**196,988**||||**2021**||**2020**|| |---|---|---|---|---|---|---|---| ||**School Fees**||||||| ||Gross fees|||12,552,347||12,087,983|| ||Less: Total bursaries, grants and allowances|||(955,766)
**11,596,581**||(800,657)
**11,287,326**|| ||||||||| ||**Other educational income**||||||| ||School trips and camps|||78,574||121,461|| ||Textbooks and other extras|||91,123||106,090|| ||Fee deposits released|||183,324||99,279|| ||Other educational income|||155,510
**508,531**||135,673
**462,503**|| ||||||||| ||**Other**||||||| ||Other ancilliary income|**Designated**
**2021**
**£**
**2020**
**£**
-
-
-
-
104,652
92,556
**104,652**
**92,556**||219,333
219,532
**12,324,445**
**11,969,361**
**2021**
**2020**
**£**
**£**
2,982
19,568
5,629
36,344
**8,611**
**55,912**
**Restricted**
**Total**
**2021**
**£**
**2020**
**£**
**2021**
**£**
-
-
143,351
-
-
4,034
91,398
79,977
221,486
**91,398**
**79,977**
**368,871**|||**2020**
**£**
188,762
-
180,759
**369,521**| ||||||||| ||||||||| ||||||||| ## **1.2 Investment Income** ## **1.3 Grants and Donations** THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 29 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **2. EXPENDITURE** |**2. EXPENDITURE**||||||| |---|---|---|---|---|---|---| |**Year ended 31st July 2021**||**Staff costs**|**Other**
**Depreciation**|||**Total**| |||**£**|**£**||**£**|**£**| |**Charitable activities**||||||| |Teaching||7,245,720|494,568||209,855|7,950,143| |Catering||190,131|232,077||4,911|427,119| |Premises||344,883
1,498,677
**9,279,411**|869,652
557,050
**2,153,347**||313,698
18,961
**547,425**|1,528,233
2,074,688
**11,980,183**| |Support costs of schooling||||||| |||||||| |KASS Expenses||-|622||-|622| |Pension provision movement (note 15)||(93,214)|-||-|(93,214)| |||||||| |**Total Education**||**9,186,197**|**2,153,969**||**547,425**|**11,887,591**| |||||||| |**Raising funds**||||||| |Letting expenses||1,262|5,341||-|6,603| |Trading expenses||-|2,454||-|2,454| |**Total Raising Funds**||**1,262**|**7,795**||**-**|**9,057**| |||||||| |**Total Expenditures**||**9,187,459**|**2,161,764**||**547,425**|**11,896,648**| Governance costs of £22,271 (2020: £21,470) include auditors remuneration of £21,240 for audit services (2020: £20,580) and are included within support costs of schooling. |**Year ended 31st July 2020**||**Staff costs**|**Other**
**Depreciation**|**Other**
**Depreciation**|**Other**
**Depreciation**|**Total**| |---|---|---|---|---|---|---| |||**£**|**£**||**£**|**£**| |**Charitable activities**||||||| |Teaching||7,091,104|546,706||189,250|7,827,060| |Catering||185,440|136,946||4,429|326,815| |Premises||351,731
1,258,255
**8,886,530**|852,925
586,799
**2,123,376**||282,898
17,099
**493,676**|1,487,554
1,862,153
**11,503,582**| |Support costs of schooling||||||| |||||||| |KASS Expenses||-|13,136||-|13,136| |Pensionprovision movement (note 15)||(59,457)|-||-|(59,457)| |||||||| |**Total Education**||**8,827,073**|**2,136,512**||**493,676**|**11,457,261**| |||||||| |**Raising funds**||||||| |Letting expenses||1,911|4,534||-|6,445| |Trading expenses||11,991|14,642||-|26,633| |**Total Raising Funds**||**13,902**|**19,176**||**-**|**33,078**| |||||||| |**Total Expenditures**||**8,840,975**|**2,155,688**||**493,676**|**11,490,339**| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 30 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## ~~**3. STAFF COSTS**~~ |Salaries and Wages

Redundancy and settlement costs
Social security contributions

Pensions

Pension provision movement
|**2021**
**2020**
**£**
**£**
7,229,048
6,867,418
6,456
10,000
728,312
712,224
1,316,857
1,310,790
(93,214)
(59,457)| |---|---| ||9,187,459
8,840,975| The Company has paid a termination payment during the year of £6,456 (2020: £10,000). ## **(a) The average number of employees of the group during the year was:** |Teaching staff

Non-teaching staff

**Total**
**(b) The remuneration of the highest paid employees fell within the following bands:**
£60,000 - £70,000

£70,000 - £80,000

£90,000 - £100,000
£100,000 - £110,000
£140,000 - £150,000
£150,000 - £160,000|**2021**
**2020**
100
103
82
88| |---|---| ||**182**
**191**| ||**2021**
**2020**
21
15
2
1
1
1
1
1
-
1
1
-| ||26
19| ## (c) **Council Remuneration** No members of Council were paid any remuneration or reimbursed expenses during the current or preceding year. Trustees Indemnity Insurance is held by the school on behalf of the Council members. ## ( **d) Key Management Personnel** Key management personnel during the year comprised the Head, Director of Curriculum, Head of Lower School and the Director of Finance and Operations. The total remuneration for these individuals was £560,397 (2020: £544,755). THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 31 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **4. TANGIBLE FIXED ASSETS – GROUP AND COMPANY** |**COST**
1st August 2020
Transfer
Additions
Disposals
**31st July 2021**
**DEPRECIATION**
1st August 2020
Charge for year
Disposals
**31st July 2021**
**NET BOOK VALUE**
**31st July 2021**
31st July 2020|**Freehold**
**School Assets under Furniture &**
**Motor**
**Land**
**Buildings Construction**
**Equipment**
**Vehicles**
**TOTA**L
£
£
£
£
£
£
25,000,000
13,404,285
1,065,215
1,127,952
65,500
40,662,952
-
590,120
(910,391)
320,271
-
-
-
961,646
293,994
23,707
-
1,279,347
-
-
-
(230,410)
-
(230,410)| |---|---| ||**25,000,000**
**14,956,051**
**448,818**
**1,241,520**
**65,500**
**41,711,889**| ||**-**
4,406,740
-
749,021
65,500
5,221,261
- 299,121
-
248,304
-
547,425
-
-
-
(230,410)
-
(230,410)| ||**-**
**4,705,861**
**-**
**766,915**
**65,500**
**5,538,276**| ||**25,000,000**
**10,250,190**
**448,818**
**474,605**
**-**
**36,173,613**| ||**25,000,000**
**8,997,545**
**1,065,215**
**378,931**
**-**
**35,441,691**| ||| 1. The opening cost of assets under construction are transferred to the relevant asset heading on completion. 2. On adoption of FRS 102 and the new SORP the freehold land was revalued to deemed cost at the transition date (1st August 2014) by Council on the advice of a Governor who is also a partner in a real estate investment management firm. 3. The carrying amount of freehold land that would have been recognised under the historic cost model is £2,200,900. 4. The assets disposed of during the year represent assets fully written off and no longer in use. 5. The bank overdraft is secured over the freehold property and is the amount currently drawn down on a standing facility of £1million repayable on demand. A five year term loan was agreed during the year for £1million, with capital repayments starting after 12 months and repaying over 15 years. This loan is also secured over the freehold property and was taken out to allow flexibility and liquidity in times of economic uncertainty. It is not required for day to day operations but will be used for investing in capital developments. The £1million was drawn down on 26 March 2021 and the interest rate is 3.15 per cent per annum. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 32 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **5. INVESTMENT IN SUBSIDIARY** The Company holds two shares of £1 each, the whole of the issued ordinary share capital of King Alfred School Trading Company Limited (No.7863431). The subsidiary was incorporated on 28th November 2011 and registered in England. The subsidiary operates a coffee bar and manages the lettings of the school facilities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the Society. A summary of the results of the subsidiary is shown below. |Turnover
Cost of Sales
Gross (Loss)/Profit
Administrative Expenses
Operating (Loss)/Proft

Donation payable to parent undertaking
**(Loss)/proft on ordinary activities before taxation**

Retained in subsidiary
**The aggregate of the assets, liabilities and funds was:**
Assets
Liabilities
**Funds**
Representing share capital (2 ordinary shares at £1 each)
Profit and loss account|**2021**
**2020**
**£**
**£**
7,602
67,537
(9,457)
(35,377)
(1,855)
32,160
(2,554)
(3,921)| |---|---| ||(4,409)
28,239| ||(28,239)
(43,204)| ||(32,648)
(14,965)| ||(32,648)
(14,965)
**2021**
**2020**
**£**
**£**
26,190
77,485
(30,597)
(49,244)| ||**(4,407)**
**28,241**| ||2
2
(4,409)
28,239| ||**(4,407)**
**28,241**| ||| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 33 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **6. DEBTORS** ||**The**
**2021**|**Group**
**2020**||**The Company**| |---|---|---|---|---| |||||**2021**
**2020**| ||**£**|**£**||**£**
**£**| |Fees and extras|198,289|77,835||198,159
77,835| |Other debtors|23,461|72,994||23,461
72,994| |Prepayments and accrued income|188,794|193,579||188,794
193,579| |Amount due from group undertaking|-
**410,544**|-||24,097
46,934
**434,511**
**391,342**| |||**344,408**||| ## **7. CREDITORS:** AMOUNTS FALLING DUE WITHIN ONE YEAR ||**The Group**
**2021**|**2020**||**The Company**| |---|---|---|---|---| |||||**2021**
**2020**| ||**£**|**£**||**£**
**£**| |Bank loans and overdrafts|22,224|-||22,224
-| |Advance fees|289,214|486,684||289,214
486,684| |Trade creditors|298,656|186,869||298,656
185,009| |Taxation and social security costs|193,627|183,422||193,627
183,422| |Deferred income|21,715|20,225||15,215
20,225| |Other creditors|188,872|197,683||188,872
197,233| |Accruals|532,650|494,812||532,650
494,812| |Fee deposits|664,289
**2,211,247**|673,918||664,289
673,918
**2,204,747**
**2,241,303**| |||**2,243,613**||| Deferred income (including advance fees): |
|**The**
**2021**|**Group**
**2020**||**The Company**| |---|---|---|---|---| |||||**2021**
**2020**| ||**£**|**£**||**£**
**£**| |Deferred income brought forward|506,909|331,207||506,909
331,207| |Received in year
Released in year
Deferred income carried forward|310,929
(506,909)
**310,929**|506,909
(331,207)||304,429
506,909
(506,909)
(331,207)
**304,429**
**506,909**| |||**506,909**||| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 34 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **8. CREDITORS:** AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR ||**The Group**
2021
2020|**The Group**
2021
2020||**The Company**| |---|---|---|---|---| |||||2021
2020| ||£|£||£
£| |Bank loans and overdrafts|977,776|-||977,776
-| |Advance fees|567,278|839,199||567,278
839,199| |Fee deposits|3,587,610
**5,132,664**|3,511,062||3,587,610
3,511,062
**5,132,664**
**4,350,261**| |||**4,350,261**||| ## **8.1 Bank Loans** |
Due within one year|**The Group**
2021
2020
£
£
22,224
-|**The Group**
2021
2020
£
£
22,224
-|**The Company**
2021
2020
£
£
22,224
-| |---|---|---|---| |Due within one and two years
|66,667|-|66,667
-| |Due within two to fve years
|200,000|-|200,000
-| |Due after fve years|711,110
**1,000,000**|-
**-**|711,110
-
**1,000,000**
**-**| ## **8.2 Advance Fees** ||**The Group**
2021
2020|**The Group**
2021
2020||**The Company**| |---|---|---|---|---| |||||2021
2020| ||£|£||£
£| |Due within one year|289,214|486,684||289,214
486,684| |Due within one and two years
|218,390|278,520||218,890
278,520| |Due within two to fve years
|316,976|483,394||316,976
483,394| |Due after fve years
**8.3 Fee deposits**
|31,911
77,285
**856,491**
**1,325,883**
**The Group**
2021
2020|77,285|

|31,911
77,285
**856,491**
**1,325,883**
**The Company**| |||**1,325,883**||| |||||2021
2020| ||£|£||£
£| |Due within one year|664,289|673,918||664,289
673,918| |Due within one and twoyears
|287,998|294,184||287,998
294,184| |Due within two to fve years
|818,983|782,262||818,983
782,262| |Due after fve years|2,480,629
**4,251,899**|2,434,616|
|2,480,629
2,434,616
**4,251,899**
**4,184,980**| |||**4,184,980**||| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 35 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **9. PROVISIONS FOR LIABILITIES AND CHARGES** ## **Pension provision** |**Pension provision**||||| |---|---|---|---|---| ||**The**
2021|**Group**
2020||**The Company**| |||||2021
2020| ||£|£||£
£| |Brought forward|994,543|1,054,000||994,543
1,054,000| |Incurred/(utilised) in the year
**Carried forward**|(93,214)
**901,329**|(59,457)||(93,214)
(59,457)
**901,329**
**994,543**| |||**994,543**||| The pension provision reflects the movement in the Pension Trust Pension provision disclosed in note 15. ## **10. NOTES TO THE CASH FLOW STATEMENT** Reconciliation of operating result to net cash inflow from operating activities |Net movement in funds
Depreciation
Bank interest received
Interest payable
(Increase)/Decrease in debtors
Increase/(Decrease)in creditors and provisions||**2021**
**£**|**2020**
**£**| |---|---|---|---| ||||| |||818,692|949,705| |||547,425|493,676| |||(2,982)|(19,568)| |||24,471
(66,136)
59,296
**1,380,766**|14,368
40,292
131,943
**1,610,416**| ## **Analysis of Changes in Net Debt** |Cash at bank and in hand
**Borrowings**
Due within one year
Due after one year|**At 1 August 2020**
**£**|**At 1 August 2020**
**£**||**Cash Flows**
**At 31 July 2021**
**£**
**£**| |---|---|---|---|---| |||||| |||3,501,203
**-**
**-**
**-**||677,457
4,178,660
(22,224)
(22,224)
(977,776)
(977,776)
**(1,000,000)**
**(1,000,000)**| |||**3,501,203**||**(322,543)**
**3,178,660**| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 36 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **11. RECONCILIATION OF FUNDS** ## **Year ending 31st July 2021 - The Group** |**Balance**
**1 August 2020**
**£**|**Balance**
**1 August 2020**
**£**|**Income**
**Expenditure**|||**Balance**|**Balance**| |---|---|---|---|---|---|---| ||||||**Transfers**
**31July 2021**|| |||**£**
**£**|||**£**|**£**| |**UNRESTRICTED GENERAL FUNDS**||||||| |General reserve
Revaluation reserve
**UNRESTRICTED DESIGNATED FUNDS**|7,748,885
22,799,100
**30,547,985**|12,507,740
(11,808,777)
-
-
**12,507,740**
**(11,808,777)**|||185,802
-
**185,802**|8,633,650
22,799,100| |||||||**31,432,750**| |Parent Staff|-|17,227||(17,227)|-|-| |History& Archives Fund|401|-||-|-|401| |Lower School CampFund|3,787|-||-|-|3,787| |KASS Subscriptions|15,885|11,550||(622)|-|26,813| |Treehouse Fund
2019/20 VoluntaryContributions Fund
2020/21 VoluntaryContributions Fund
COVID-19 Support Fund
**RESTRICTED FUNDS**
BursaryFund
Music Fund
Upper School BuildingFund
Sophie Coleman Music Fund
Phoenix Theatre Fund
Development Fund
COVID-19 General Fund
**TOTAL FUNDS**|4,067
92,556
-
835,412
**952,108**
106,046
7,146
81,030
4,545
25
-
-
**198,792**
**31,698,885**|-
(1,422)
6,525
(37,201)
80,900
-
-
-
**116,202**
**(56,472)**
-
-
-
-
-
-
-
-
50,000
-
36,474
(26,475)
4,924
(4,924)
**91,398**
**(31,399)**
**12,715,340**
**(11,896,648)**|||-
-
-
(185,802)
**(185,802)**
-
-
-
-
-
-
-
**-**
**-**|2,645
61,880
80,900
649,610| |||||||**826,036**
106,046
7,146
81,030
4,545
50,025
9,999
-| |||||||**258,791**| |||||||**32,517,577**| ## **Designated funds for the Year Ending 31 July 2021** - Parent Staff raise funds which are designated to various teaching requests made by teachers during the year. Over the two years ended 31 July 2020 and 31 July 2021, Parent Staff have contributed £20,000 towards the Lower Court. - The History & Archives Fund is for the maintenance of the School’s archives. - The Lower School Camp Fund is for the replacement of tents and camping equipment. - KASS subscriptions are used for the purpose of promoting the advancement of educational science by the diffusion of knowledge relating thereto and is typically spent within 12 months of receipt. - The Treehouse Fund has come from voluntary contributions received during 2017/18 and 2018/19. The fund is being used to replace the old treehouse that has reached the end of its life. The first stage was completed in 2021. - 2019/20 and 2020/21 Voluntary Contributions Fund comprises voluntary contributions donated during these years. The 2019/20 expenditure covered the remaining costs of the Lower Court. - The COVID-19 Support Fund was established by transferring funds from unrestricted reserves to designated reserves and is for covering the additional costs anticipated from COVID-19 over the next few years. This year, the fund has covered the cost of the COVID-19 hardships given during 2020/21. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 37 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **• 11. RECONCILIATION OF FUNDS** - continued ## **Year ending 31st July 2021 - The Company** |**Year ending 31st July 2021 - The Company**|**Year ending 31st July 2021 - The Company**|||||| |---|---|---|---|---|---|---| |**Balance**
**1 August 2020**
**£**||**Income**
**Expenditure**||**Balance**
**Transfers**
**31July 2021**|**Balance**|| |||**£**
**£**||**£**||**£**| |**UNRESTRICTED GENERAL FUNDS**||||||| |General reserve
Revaluation reserve
**UNRESTRICTED DESIGNATED FUNDS**|7,720,646
22,799,100
**30,519,746**|12,500,138
(11,768,527)
-
-
**12,500,138**
**(11,768,527)**||185,802
-
**185,802**||8,638,059
22,799,100| |||||||**31,437,159**| |Parent Staff|-|17,227|(17,227)|-||-| |History& Archives Fund|401|-|-|-||401| |Lower School CampFund|3,787|-|-|-||3,787| |KASS Subscriptions
Treehouse Fund
2019/20 VoluntaryContributions Fund
2020/21 VoluntaryContributions Fund
COVID-19 Support Fund
**RESTRICTED FUNDS**
BursaryFund
Music Fund
Upper School BuildingFund
Sophie Coleman Music Fund
Phoenix Theatre Fund
Development Fund
COVID-19 General HardshipFund
**TOTAL FUNDS**|15,885
4,067
92,556
-
835,412
**952,108**
106,046
7,146
81,030
4,545
25
-
-
**198,792**
**31,670,646**|11,550
(622)
-
(1,422)
6,525
(37,201)
80,900
-
-
-
**116,202**
**(56,472)**
-
-
-
-
-
-
-
-
50,000
-
36,474
(26,475)
4,924
(4,924)
**91,398**
**(31,399)**
**12,707,738**
**(11,856,398)**||-
-
-
-
(185,802)
**(185,802)**
-
-
-
-
-
-
-
**-**
**-**||26,813
2,645
61,880
80,900
649,610| |||||||**826,036**
106,046
7,146
81,030
4,545
50,025
9,999
-| |||||||**258,791**| |||||||**32,521,986**| ## **Restricted funds for the Year Ending 31 July 2021** - The Bursary Fund is to provide financial support to pupils who would not otherwise be able to afford to attend the School. - The Music Fund, originally to purchase equipment and to fund a music technology teacher, is now being used for music bursaries. Assets acquired are being depreciated over 50 years for the construction and five years for equipment. - The Upper School Building Fund will be applied to future building in the Upper School. - The Sophie Coleman Music Bursary was set up from donations in memory of a former pupil to fund violin lessons. - The Phoenix Theatre Fund comprised donations to build a theatre foyer to provide an entrance, including a bar and social space as well as extra classroom space for performing arts. The first stage was completed on 9 November 2018 - The Development Fund raises funds from the parent staff and the community; in 2020/21 the funds were used towards the Lower Court. - The COVID-19 General Hardship Fund was set up to provide support to parents experiencing financial difficulties as a result of COVID-19. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 38 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **11. RECONCILIATION OF FUNDS** - continued ## **Year ending 31st July 2020 - The Group** |**Year ending 31st July 2020 - The Group**|**Year ending 31st July 2020 - The Group**|||||| |---|---|---|---|---|---|---| |**Balance**
**1 August 2019**
**£**||**Income**
**Expenditure**|||**Balance**|| ||||||**Transfers**
**31July 2020**|| |||**£**||**£**|**£**|**£**| |**UNRESTRICTED GENERAL FUNDS**||||||| |General reserve
Revaluation reserve
**UNRESTRICTED DESIGNATED FUNDS**|7,681,202
22,799,100
**30,480,302**|12,253,256
-
**12,253,256**||(11,350,161)
-
**(11,350,161)**|(835,412)
-
**(835,412)**|7,748,885
22,799,100| |||||||**30,547,985**| |History& Archives Fund|401|-||-|-|401| |Lower School CampFund|3,787|-||-|-|3,787| |KASS Subscriptions|14,766|14,255||(13,136)|-|15,885| |Treehouse Fund
2019/20 VoluntaryContributions Fund
COVID-19 Support Fund
**RESTRICTED FUNDS**
BursaryFund
Music Fund
Upper School BuildingFund
Sophie Coleman Music Fund
Phoenix Theatre Fund
Studio Bikes
Development Fund
COVID-19 General Fund
COVID-19 Lower School Fund
**TOTAL FUNDS**|56,617
-
-
**75,571**
103,546
3,946
81,030
4,785
-
-
-
-
-
**193,307**
**30,749,180**|-
(52,550)
92,556
-
-
-
**106,811**
**(65,686)**
2,500
-
3,200
-
-
-
-
(240)
25
-
3,691
(3,691)
18,025
(18,025)
39,410
(39,410)
13,125
(13,125)
**79,976**
**(74,491)**
**12,440,043**
**(11,490,338)**|||-
-
835,412
**835,412**
-
-
-
-
-
-
-
-
-
**-**
**-**|4,067
92,556
835,412| |||||||**952,108**
106,046
7,146
81,030
4,545
25
-
-
-
-| |||||||**198,792**| |||||||**31,698,885**| ## **Designated funds for the year ending 31st July 2020** - The History & Archives Fund is for the maintenance of the School’s archives. - The Lower School Camp Fund is for the replacement of tents and camping equipment. - KASS subscriptions are used for the purpose of promoting the advancement of educational science by the diffusion of knowledge relating thereto and is typically spent within 12 months of receipt. - The Treehouse Fund has come from voluntary contributions received during 2017/18 and 2018/19. The fund is being used to replace the old treehouse that has reached the end of its life. It is a community project that partly relies on volunteers and community involvement. The first stage was completed in 2020. - 2019/20 Voluntary Contributions Fund comprises voluntary contributions donated during the year. - A COVID-19 Support Fund has been established by transferring funds from unrestricted reserves to designated reserves and is for covering the additional costs anticipated from COVID-19 over the next few years. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 39 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **11. RECONCILIATION OF FUNDS** - continued ## **Year ending 31st July 2020 - The Company** |**Balance**
**1 August 2019**
**£**|**Balance**
**1 August 2019**
**£**|**Income**
**Expenditure**|**Income**
**Expenditure**|**Balance**
**Transfers**
**31July 2020**|**Balance**|**Balance**| |---|---|---|---|---|---|---| |||**£**
**£**||**£**||**£**| |General reserve
Revaluation reserve
**UNRESTRICTED DESIGNATED FUNDS**|7,638,689
22,799,100
**30,437,789**|12,185,719
(11,268,350)
-
-
**12,185,719**
**(11,268,350)**||(835,412)
-
**(835,412)**||7,720,646
22,799,100| |||||||**30,519,746**| |History& Archives Fund|401|-|-|-||401| |Lower School CampFund|3,787|-|-|-||3,787| |KASS Subscriptions|14,766|14,255|(13,136)|-||15,885| |Treehouse Fund
2019/20 VoluntaryContributions Fund
COVID-19 Support Fund
**RESTRICTED FUNDS**
BursaryFund
Music Fund
Upper School BuildingFund
Sophie Coleman Music Fund
Phoenix Theatre Fund
Studio Bikes
Development Fund
COVID-19 General HardshipFund
COVID-19 Lower School HardshipFund
**TOTAL FUNDS**|56,617
-
-
**75,571**
103,546
3,946
81,030
4,785
-
-
-
-
-
**193,307**
**30,706,667**|-
(52,550)
92,556
-
-
-
**106,811**
**(65,686)**
2,500
-
3,200
-
-
-
-
(240)
25
-
3,691
(3,691)
18,025
(18,025)
39,410
(39,410)
13,125
(13,125)
**79,976**
**(74,491)**
**12,372,506**
**(11,408,527)**||-
-
835,412
**835,412**
-
-
-
-
-
-
-
-
-
**-**
**-**||4,067
92,556
835,412| |||||||**952,108**
106,046
7,146
81,030
4,545
25
-
-
-
-| |||||||**198,792**| |||||||**31,670,646**| ## **Restricted funds for the year ending 31st July 2020** - The Bursary Fund is to provide financial support to pupils who would not otherwise be able to afford to attend the School. - The Music Fund, originally to purchase equipment and to fund a music technology teacher, is now being using for music bursaries. Assets acquired are being depreciated over 50 years for the construction and five years for equipment. - The Upper School Building Fund will be applied to future building in the Upper School. - The Sophie Coleman Music Bursary was set up from donations in memory of a former pupil to fund violin lessons. - The Phoenix Theatre Fund comprised donations to build a theatre foyer to provide an entrance, including a bar and social space as well as extra classroom space for performing arts. The project was completed on 9 November 2018 - The Studio Bikes were donated by a parent and installed in the exercise studio. - The Development Fund raises funds from the parent staff and the community; in 2019/20 it financed a new Lower Court. - The COVID-19 General and Lower School Hardship Funds were set up to provide support to parents experiencing financial difficulties as a result of COVID-19. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 40 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **12. ANALYSIS OF NET ASSETS BETWEEN FUNDS** ## **As at 31st July 2021** ||**Unrestricted Funds**
**Designated Funds**
**Restricted Funds**
**£**
**£**
**£**|**Unrestricted Funds**
**Designated Funds**
**Restricted Funds**
**£**
**£**
**£**|**Unrestricted Funds**
**Designated Funds**
**Restricted Funds**
**£**
**£**
**£**|**Unrestricted Funds**
**Designated Funds**
**Restricted Funds**
**£**
**£**
**£**|**Total Funds**
**£**
**Group**
**Charity**
36,173,613 36,173,615
4,589,204
4,587,111
(2,211,247) (2,204,747)
(5,132,664) (5,132,664)
(901,329)
(901,329)
**32,517,577**
**32,521,986**|**Total Funds**
**£**
**Group**
**Charity**
36,173,613 36,173,615
4,589,204
4,587,111
(2,211,247) (2,204,747)
(5,132,664) (5,132,664)
(901,329)
(901,329)
**32,517,577**
**32,521,986**| |---|---|---|---|---|---|---| ||**Group**|**Charity**
**Group**||**Charity**
**Group**
**Charity**|**Group**|**Charity**| |Tangible fxed assets|36,173,613
3,504,377|36,173,615
3,502,284|-
-
-
-
826,036
826,036
258,791
258,791|-
-
-
-||| |Current assets||||||| |Current liabilities|(2,211,247)|(2,204,747)|-
-
-
-|||| |Longterm liabilities|(5,132,664)|(5,132,664)|-
-
-
-|||| |Provisions
**Total Net Assets**|(901,329)
**31,432,750**|(901,329)|-
-
-
-
**826,036**
**826,036**
**258,791**
**258,791**|||| |||**31,437,159**||||| ## **As at 31st July 2020** |**As at 31st July 2020**||||||| |---|---|---|---|---|---|---| ||**Unrestricted Funds**
**Designated Funds**
**Restricted Funds**
**£**
**£**
**£**||||**Total Funds**
**£**
**Group**
**Charity**
35,441,691 35,441,693
3,845,611
3,815,060
(2,243,613) (2,241,303)
(4,350,261) (4,350,261)
(994,543)
(994,543)
**31,698,885**
**31,670,646**|| ||**Group**|**Charity**
**Group**||**Charity**
**Group**
**Charity**|**Group**|**Charity**| |Tangible fxed assets|35,441,691
2,694,711|35,441,693
2,664,160|-
-
-
952,108
952,108
198,792
198,792|-
-
-||| |Current assets||||||| |Current liabilities|(2,243,613)|(2,241,303)|-
-
-
-|||| |Longterm liabilities|(4,350,261)|(4,350,261)|-
-
-
-|||| |Provisions
**Total Net Assets**|(994,543)
**30,547,986**|(994,543)|-
-
-
-
**952,108**
**952,108**
**198,792**
**198,792**|||| |||**30,519,746**
||||| ## **13. RELATED PARTY TRANSACTIONS** The Society has taken the exemption under FRS 102 not to disclose any related party transactions with its subsidiary on the basis full consolidated accounts are prepared. Total donations made by Council members to the Society during the year amounted to £22,036 (2020: £1,504). ## **14. CAPITAL COMMITMENTS** Total capital commitments for the year ended 31 July 2021 are £163,812 (2020: £1,119,013.). THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 41 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **15. PENSION SCHEMES** ## **Teachers’ Pension Scheme** The company participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,123,697 (2020: £1,033,249) and at the year-end £168,015 (2020: £130,275) 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 Regulations 2010 (as amended) and the Teachers’ Pension Scheme Regulations 2014 (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 Parliament. 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 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 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 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 at 5 March 2019. However, the assumptions were considered and set by the Department of Education prior to the ruling in the “McCloud/Sargeant case”. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions. On 27 June 2019 the Supreme Court 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 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. The government announced on 4 February 2021 that it intends to proceed 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 1 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 place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. The consultation closed to response on 19 August 2021 and the Government is currently analysing the responses. In view of the above rulings and decisions, the assumptions used in 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 financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements. ## **TPT Retirement Solutions – Independent Schools’ Pension Scheme** The company participates in the scheme, a multi-employer scheme which provides benefits to some 66 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 42 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 20, continued ## **15. PENSION SCHEMES** - CONTINUED The scheme is classified as a ‘last-man standing arrangement’. Therefore, the company is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2017. This actuarial valuation was certified on 27 December 2018 and showed assets of £149.4m, liabilities of £187.6m and a deficit of £38.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows: _From 1st September 2019 to 30 April 2030: £2,387,357 per annum payable monthly and increasing by 3% on each 1st September_ Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £110.0m, liabilities of £147.4m and a deficit of £37.4m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows: _From 1st September 2016 to 31 August 2029: £2,341,000 per annum payable monthly and increasing by 3% on each 1st September_ The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities. Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. ## **Present value of provision** |Present value of provision
**Reconciliation of opening and closing provisions**
Provision at start of period
Unwinding of the discount factor (interest expense)
Defcit contribution paid
Re-measurements – impact of any change in assumptions
Re-measurements – amendments to the contribution schedule
**Provision at end of period**
**Income and expenditure impact**
Interest expense
Re-measurements – impact of any change in assumptions
Re-measurements – amendments to the contribution schedule
Contributions paid in respect of future service*
Costs recognised in income and expenditure account|**31st July 2021**
**31st July 2020**
**31st July 2019**
**£000s**
**£000s**
**£000s**
901
994
1,054
**Period Ended**
**Period Ended**
**31st July 2021**
**31st July 2020**
**£000s**
**£000s**
994
1,054
8
12
(93)
(91)
(8)
19
-
-| |---|---| ||**901**
**994**| ||**Period Ended**
**Period Ended**
**31st July 2021**
**31st July 2020**
**£000s**
**£000s**
8
12
(8)
19
-
-
*
*
*
*| *includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 43 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 ## KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **15. PENSION SCHEMES** - CONTINUED **Assumptions** |**Assumptions**|||| |---|---|---|---| ||**31st July 2021**|**31st July 2020**|**31st July 2019**| ||**% per annum**|**% per annum**|**% per annum**| ||||| |Rate of discount|1.04|0.84|1.24| The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions. The following schedule details the deficit contributions agreed between the Company and the scheme at each year end period: ## **Deficit contributions schedule** |**Year ending**|**31st July 2021**|**31st July 2020**|**31st July 2019**|**31st July 2018**| |---|---|---|---|---| ||**(£000s)**|**(£000s)**|**(£000s)**|**(£000s)**| |Year 1|96|93|91|98| |Year 2|99|96|93|101| |Year 3|102|99|96|104| |Year 4|105|102|99|108| |Year 5|108|105|102|111| |Year 6|111|108|105|114| |Year 7|115|111|108|118| |Year 8|118|115|111|121| |Year 9|91|118|115|125| |Year 10|-|91|118|128| |Year 11|-|-|91|132| |Year 12|-|-|-|11| |Year 13|-|-|-|-| |Year 14|-|-|-|-| |Year 15|-|-|-|-| |Year 16|-|-|-|-| |Year 17|-|-|-|-| |Year 18|-|-|-|-| |Year 19|-|-|-|-| |Year 20|-|-|-|-| The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises. It is these contributions that have been used to derive the company’s balance sheet liability. THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 44 COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 KING ALFRED SCHOOL SOCIETY (A company having no share capital and limited by guarantee) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31st July 2021, continued ## **16. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES** ||**Unrestricted**
**Funds**
**2020**|**Unrestricted**
**Funds**
**2020**|**Designated**
**Funds**
**2020**|**Designated**
**Funds**
**2020**|**Restricted**
**Funds**
**2020**|**Restricted**
**Funds**
**2020**|**Total**
**2020**|**Total**
**2020**| |---|---|---|---|---|---|---|---|---| |**INCOME FROM:**||**£**||**£**||**£**|**£**|| |**Charitable activities**||||||||| |School fees||11,969,361||-||-|11,969,361|| |KASS membership||-||14,255||-||14,255| |**Trading activities**||||||||| |Tradingincome||30,995||-||-||30,995| |**Investments**||||||||| |Investment income||19,568||-||-||19,568| |Rents and lettings||36,344||-||-||36,344| |**Donations and Legacies**
Grants and donations
**Total Income**
**EXPENDITURE ON:**
**Charitable activities**
Education
**Raising funds**
Lettings expenses
Trading expenses
**Total Expenditure**
**Net income/(expenditure)**
Transfer between funds
Net Movement in Funds
Fund balances brought forward at 1 August2019
Fund balances carried forward at 31 July 2020||196,988
**12,253,256**
11,317,083
6,445
26,633
**11,350,161**
**903,095**
(835,412)
67,683
30,480,302
**30,547,985**||92,556
**106,811**
65,686
-
-
**65,686**
**41,125**
835,412
876,537
75,571
**952,108**||79,977
**79,977**
74,492
-
-
**74,492**
**5,485**
-
5,485
193,307
**198,792**|369,521
**12,440,044**
11,457,261
6,445
26,633
**11,490,339**
**949,705**
-
949,705
30,749,180
**31,698,885**|| |||||||||| THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 45 IJ oy EX CORDE VITA. COMPANY NUMBER: 00057854 REGISTERED CHARITY NUMBER: 312590 King Alfred School Society A company having no share capital and limited by guarantee THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/20 THE KING ALFRED SCHOOL SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS 2020/21 page 48