ORLEY FARM SCHOOL TRUST IA Registered Charity and a Company Limited by Guarantee) Registered Company No: 628541 Registered Charity No.. 312637 ANNUAL REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
ORLEY FARM SCHOOL TRUST CONTENTS Page Charity Information Annual Report of the Governors 4-14 Independent Auditor's Report 15-17 Statement of Financtal Activities 18 Balance She&t 19 Cash Flow Statement 20 Accounting Pollclès 21-23 Notes to the Financial Ststements 24-30
ORLEY FARM SCHOOL TRUST CHARITY INFORMATION Governors The Governors are members of the Governing Body, are the Charity Trustees and are the Directors ol the Company lor Companies Act purposes. The Governors who have served during the year and since the year end are Indicated below. Alongside each Governor are details of the subcommillees on which they setve. Dr M Short MrCJHa field Mr M Andrews Mrs C Cliffe Mrs S Kolhari Ms S Labrum Mr A Land Mrs T Lashkari Mrs L Malde Mr R Railhalha Mr A Smith Mr A Sofal Chaii, Est Est Eslc FC Est oinled 11 Ih Ma 2022 Est Est FB FB Est IFBCI Chair of Full Board (FBI Member of Full Board IECI Chair of Education Committee IE) Member ol Education Committee IFC) Chair of Finan Committee IF) Member of Finance Committee IEstCI Chaii of Estates Committee (Esll Member of Estates Committee IRI Member ol Remuneration Committee
ORLEY FARM SCHOOL TRUST CHARITY INFORFIIATION Officer8 Headmaster MrTG Calvey Seorelary Mrs T K Vaid Director of Finance Director of Operations and Clerk Mrs T K Vaid Mr J Shakespeare Principal Address and Registered Office South Hill Avenue Harrow-on-Ihe-Hill Middlesex HA1 3NU Advisors Bankers Nalwesl 1-9 St Ann's Road Harrow Middlesex HA1 1 EB Solicitors Harrison Clark Riekerbys Limited Ellenborough House Wellinglon Street Cheltenham GL50 1YD Auditor PKF Litllejohn LLP Slatulory Auditors 15 Westferry Circus Canary Wharf London E14 4HD Insuranco Brokers Marsh Education Practice Capital House 1.5 Perrymounl Road Haywards Heath Wesl Sussex RH18 3SY
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 The Governors present their AnnLial Report lor the year ended 3fj August 2022 together with the audited Financial Statements for the year, and confirm that these comply with the requirements of the Coinpanies Act 2006, the Governing Instruments ol the Charity and the Statement of Recommended Practice, Accounting and Reporting by Charities I'FRS 102 SORP"). Reference and Administrative Information Orley Farm School Trust Ilhe Trust) is a company limited by guarantee registered as company number 628541. The Trust is also registered with the Charity Commission under charity number 312637. The Governors, executive officers and principal address of the Charity are listed, along with particulars of ils piolessional advisors, on pages 2 and 3. structure, Governance and Management Governing Instruments The Charity is governed by ils Memorandum and Articles of Association, which dale from 1959 and were subslanlially revised in 2004. In June 2007 the Charity Commission permilled an extension to the objects. In the furtheran of these objects the Directors, as the Trustees of the Charity. have complied with the duly in s.17151 of the Charities Act 2011 to have due regard to the Charity Commission's published general and relevant sub-seclor guidance concerning the inlerprelation of the Public Benefit requirement under that Act. Governing Body The Board, detailed on page 2, is a self-appoinling body with one exception being the Headmaster of Harrow School who is a member by virtue of this position. Service on the Board is for a term ol three years which may be renewed no more than twice on reliremenl. The Chair is elected to serve for five years which may be renewed once only. The new Chair as elected by the board commenced their tenure from 1 sl September 2022. Trustee Recruitment and Training The Charity's elected Governors are appointed at Board meetings on the basis of nominations received from members ol the Boaid and others, based on specifications conrnIng sympathy with the Charity s objects, eligibility, peisonal competencies, specialist skills and local availability. New Governors receive induction in respect of Board Policies and Procedures. in addition lo familiaiisalion with current Strategic and Financial Planning. Following their appointment Governors are made aware of specialist training opportunities by the Clerk as appropriate and they are encouraged lo allend relevant training courses especially those organised by AGBIS and ISBA for which the School are members. Governors receive ongoing training, such as safeguarding and many under lake their own continuous professional development in their specialist areas. Organisational Management Orley Farm School Trust Governors, as the Trustees ol the Charity, are legally responsible for the overall governance and conliol of the School. To discharge this duly they meet as a fu11 Board at least thiee limes each year. The work of implementing most of their policies is cariied out by three committees which have agreed, and annually revised, Terms ol Referen lo assist their fLJnclionality. These commillees are as follows.. Education Committee, Estates Committee and Finance Committee. Further subcommittees may be consliluled as required. The operational management of the School is delegated to the Headmaster, who together with the Director of Finance and Directoi of Operations is supported by a Senior Leadership Team and a Senior Management Team. The Headmaster allends meetings of all of the above commillees. The Director of Finance allends the Finance Committee. Remuneration Committee and the Board Meetings. The Director of Opeiations allends the Eslales Committee, Health & Safety Committee and the Board Meetings. The Deputy Heads allend Education Committee and Board Meetings.
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Organisational Management {continued) The School, through ils officers, is represented In a number of organisations including the Association of Governing Bodies of Independent Schools, the Independent Associakn'on of Preparatory Schools and the Independent Schools Bursars, Association. Group Structure and Relationships The Charity has two wholly-owned non-charilable subsldiary companies, whose activities are explained below. South Hill Estates, Harrow Limited (Registered in England as Company Number 1099741 South Hill Eslales HaoW Ltd was incorporated in 1910 and ig limited by shares. The Trust is the benelicial owner of the whole of the share capital of the Company which owns roads on the South Hill Eslale, and the benefit of certain covenants relating lo privately-owned residential and other properties on this Eslal&. The Direclows include two members of the Trust's Full Board committee, the Diredor of Operations and two residents of South Hill Estates. The Company's assets and transactions in the year are not considered material, therefore the Governors nsider it is not appropriate to prepare consolidated accounts of the Twsl and its subsidiary. Copie5 of the subsidiaFy s accounts are made available lo the Governors of the Trust. Orley Farm School Enterprises Limited IRegislered in England as Company Number 5345071} The Company was made dormant on 1 $1 September 2007 and will remain domianl until such a time as the level of trading activity within the Trust necessilales ils management by a subsidiary company or when the Trustees elect that this be so. Risk Management The Board of Goverllors is responsible for identifying the key risks faced by the School and for ensuring these risks are managed. Each year the Senior Leadership Team and the FinanGe and General Purpose Committee identify and assess risks and implement controls lo mitigate against these. In addition, each year a formal review of the risk management process is undertaken. The major risks have beeii identified as that of the impact of the current international and national crisis on securing energy for UK consumers along with the soaring inflation on day lo day business expenditure, the on-yoing impact of Coronavirus Pandemic on the provision of edCation services and possible spike in rates over winter months, the impact of Bre1 on pricing and availability of goods and services r4uired to maintain the School's provision, monitoring the financial impact of any future increase to employer contributions from the participation in the Teachers, Pension Scheme, a decline in the demand for places resulting from a general economic downturn which has been exaceTbaled by increased inflationary pressures on household incomes, the risk that senior schools will increasingly lake boys al age 11 rather than 13 years old, and Ihal the costs of the School's development plan escalate out of control. The key controls implemented by the School are as follows: Forrnal agendas for all Board and Committee activities.. Comprehensive strategic planning, budgeting and management accounting., Established organisational slrltclure and understood lines of reporting.. Formal written policies., Clear, aulhoritalive and agreed approval levels., The appointment of suitably qualified professional advi5ers,' and Ability lo switch our educalional delivery into remote lea¥ning the event of any futuie lockdown measures. Through the established systems for managing risk. the Governors are satisfied that lor the major risks identified steps have been taken lo manage these risks. 11 is, of course, recognised by the Governors that systems can provide reasonable bul not absolute assurance that major risks have been adequalely managed.
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Objects, Aims, Objectives and Activities Charitable Objects To advance the education of boys and girls by the provision of a school known as Orley Farm School Trust in Harrow-on-Ihe-Hill. and any other boarding school or day school for the education of boys and girls and by ancillary or incidental educational activities and other associated activities for the benefit ol the community. Aims and Intended Impact Within these objects. the School aims lo be a leading co-educational PTeparalory school for children aged between 4 and 13 years old, by building on the strategies as slated in the 'Whole School Aims, which ale summarised below, the full lexl being published in the School's prospectus and other media. Whole School Aims The School aims to provide a challenging environment lo slimulale. maintain and develop a lively and enquiring mind.. to encourage all pupils lo reach their true potential and eventually become independent learners who value leaining with and from others, as a life-long process. We aim lo appoint, develop and relain a staff of the highest quality and lo develop a school community of responsible citizens, which affords equal value to all of ils members, is seen to be just and encourages mutual respect, truthfulness and concern for others. While carrying out our charitable purpose- the provision of education- we aim lo deliver substantial benefit lo all stakeholders, including our local communities, through the provision of an excellent and broad edLJcalion and through access lo our services, facilities and expertise. Impact and Responsiveness In accordance with our Governing Instruments, we continue to provide education for children aged 4 to 13 years such provision relieving the stale ol relevant costs. In addition, the School continues lo provide bursary support for current and new pupils. The School continues to build on the links with a wide section of the local community. Key Elements ofthe School's Strategy The School faces new and evolving educational, legislative, economic, enviionmenlal, demographic and social challenges. To respond lo them positively and to enable Orley Farm School lo head lowaids its 2001h anniversary with confidence there must be eqLJally careful planning. These Strategic Priorities and the School Development Plan are designed lo sel the destination and the broad outline of the journey. The Board of Governors and Senior Leadership Team intend that Orley Farm School.. Continues to be one of the leading co-educational day schools in London.. Will provide quality education and pastoral care for boys and girls in the 4-13 years age range,. Will remain a preparatory school with a strong record of success in pieparing pupils for entry lo their senior independent schools., Continue to be blessed with a magnificent sile and maintain an excellent range of facilities., and Build on ils long and distinguished history.
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Key Elements of the School's Strategy (continLted) The Board of Governors continues lo oversee the pursuit of the School's strategic priorities and the maintenance of its agreed profile. These are reviewed regularly through the work of the Board and ils Committees. The Governors intend that the School will.. Remain a preparatory school providing qualty education and pastoral care for boys and girls,. Continue lo recruit on the basis of academic polenlial alone and the School will continue lo develop ils bursary funds lo give true effect lo this aim- Continue lo prepare boys and girls for entry to independent senior schools - with the that tK)ys, and increasingly girls, will Iiansfer al 13+. currently most girls transfer at 11 +- Continue lo plan with the aid of professional advisors, the further development of the eslale in order to provide excellent buildings and facilities that support an outstanding educational provision., Develop and ena¢l an ICT Strategy, a Communications Strategy and an Outdoor Education Siralegy,. and Colllinue to develop a Leadership and Development Programme for staff. The Governors measure the success of this stTalegythrough 2 COTnprehensive review ofthe annu81 strategic school development and management action plans, and through the teimly reporting of key perforn)8nce measures produced by senlor management for the Board to discuss. Ad hoc subcommillees are eslablished lo focus crOss-governan1rnanagemenI effort on areas of inlerest. opportunity and concern. trate icRe ort: Review of Ob'ectives for the ear Achievements and Performance b'eclive 1.- Maintain the excell of the educational rovisiorE throu houl the School. The excellence of the education gt the School was rewarded by the granting of a lolal of 37 scholarships lo senior schools, of which a total of 23 were taken up by our pupils. Highlights include 11 Academic Scholarships and 11 awards across a breath of Sport Scholarships, Drama, Music. and Design and Engineering awards. Ob eclive 2.. To continue lo develo relations with ran e School in Harrow. Partnerships with the Grange School in Harrow continue to evolve and develop. The School has supported the Grange School in the followng ways.. making donation towards Christmas gits for the Gyange school pupils of the School.. lending the School minibuses., running a termly lunch lime sports club, and inviting Grange School children to watch our Christmas and Summer matinee Pfoductions. Ob'eclive 3- To continue the revi four rocedures and olicies lo ensure total re ulalo com liance. School Policies continue lo be reviewed to ensure regulatory compliance with the frequently changing regulation5. These policies are reviewed by staff and presented at the relevant committee meetings for Governors lo revtew and approved. Ob'eclive 4.. Continue lo im r()ve the Former Pu ils, Associa Orlumni With the support of a former parent. the School has rebranded and lunched the Orlunmi. The objeelive of the Orlumlli is to bring together former Orleyans and parents to enrich OUF current community through school hosted events. During the year the school successfully hosted three events including an outdoor launch event, a soft ball and picnic event and a university starter reconnection events.
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Ob eclive 5.. To ensure the needs of the school. rovision of IT within the School continues lo meet the academic and business The IT network continues lo be upgraded lo ensure IT support throughout the School for both pupils and aolminislralive staff is up lo dale and is moving in line with current trends. During the year the School obtained ils Cyber Essentials Certification. The piocess lo obtain this cerlilicalion included a self - assessment questionnaire and an external vulnerability scan that verifies the School's security slalus as well as an internal vulnerability scan of the School's network, Pcs and mobile devices. The School has invested in virtual reality headsets and has successfully integrated the use of this throughout the school within ICT lessons. The School continues to review IT platforms lo ensuie they remain update lo dale and deliver an intuitive and easy user expeiience. As a resu510l the Pandemic, the School has inlegraled the use of its remote learning platform of its educational provision more widely acioss the School. Ob eclive 6.. Continue lo mana e the relationshi communil lo best effect. s with the School's nei hbours tenants and the wider The continues lo develop a new working partnership with South Hill Eslales (Harrow) Ltd and the residents ol the eslale via the South Hill Eslales board comprising two School Iruslees, two residents and the Director of Operations. Ob ective 7.. Continue lo mana e the School's education rovision eslale mana emenl and res onsibilit to ils slafl and the wider school communil lo best effect whilst mana in the risk of the Coronavirus Pandemic. The School has identified two short teim building projects that it is puisuing, one which will enhance the educational provision of its youngest pupils through Improved play facilities, and the other consisting of a large landscaping project for the benefit of the entire School to enhance creative play and create outdoor teaching space. The School is also building a'maslerplan, lo swpe and service the future needs of the School for the wming decade. The aim Is to join up the short, mid and long term aim5 Wlth a cohesive overview lo ensure that all fuluie developments are embedded in the educational philosophy and aims of the School. Ob'eclive 8.. To conduct due dili ence on the creation of an outdoor curriculum offerin al the School. The Head of Pre Prep has successfully conducted due diligence into the creation of an outdoor curriculum offering al the School and will be piloting the offering next academic year within the Pre Prep on a phased year group basis.
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Pupil destinations and Scholarship Award8 in 2022 Pupils often apply for, and are awarded, scholarships for more than one school, On these occasions, only the scholaf5hip for their future school is accepted. Boys= Destination School Number of Pupils Scholar8hips Awarded City of London Hampton School Haberdashers, John Lyon King Heights Academy, Canada Merchant Taylors St Alban's st Margaret's School St Paul's Weslminsler TOTAL 26 15
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Girls-. Destination School Number of Pupils Scholarships Awarded Bentley Wood High Belmont School Dr Challoners High Francis Holland School Godolphin & Lalymer Haberdashers, Aske's Haileybury Hatch End High School Henrietta Barnel School King Fahad Academy North London Collegiate Nower Hill High School Nolling Hill & Ealing Northwood College Pinner High Scliool Rickmansworth School Royal Masonic St Marylebono CE School Soltlh Hampslead High St Helen's St Margaiel's St Paul's Girls, Queen's College London TOTAL 35 22 10
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Financial Review and Results for the Year It has been another year Ihal has presented a host of challenges and much uncertainly for the Orley Farm Community, as has been the case for many organisations, as they navigate the impact ol the pandem combined with th8 inflationary pressures fell by all nationally. This academic year, the School has resumed ils onsite provision of education in full including the miich awaited Residential Expeditions Week enjoyed by all pupils. Despite the School's provision returning lo pre pandemics days, the Governing Body were well aware of the ongoing uncertainly facing many ofour parents as the impact of the pandemic and economic landscapes unfolds and continued to offer the Hardship Support Scheme. This Scheme, in conjunction with the Fee Support Scheme, provided financial support lo 11 pupils. Further details are available below under the heading Fee Support. During the Summer break. the School continued cautiously with the second phase of ils Pre Prep refurbishment project - refurbishment of 3 Pre Prep classrooms, Pre Prep Atrium and 51aff room. As voted for by Orley parents, works for a 'Wellbeing Hub,, with the aim of creating a flexible Spa where parents can reeonne¢l with each other and have informal conversations with teachers, as well as a space for outdoor school events, have continued lo be developed over the academic year. The operating costs for the year were £7,231,524 {2021 £6,751,064). This expenditure has been closely monitored and balanced against the School's existing banking facilities as it carefully navigates its way back lo Pre Pandemic operations. The School's cautious approach to spending as a result of the Pandemic has allowed the School lo generate surpluses that can be reinvested into the School's key. essential infrastructure projects. which are no longer able lo remain on hold, whilst meeting its financial obligation8. The School generated nel fee income of £7.966,75012021- £7,667,088), which was the primary source of revenue. Whilst the School does generate additional income in the form of lettings income and rents, Ihe overr¢ding primary Sour of income is deiived from pupil fees. The focus for the School is lo prlor1118e key and essential infraslruclure projects around the school site_ The surplus of £1,076,60512021.' Surplus of £1,177,135) generated within the year will place the School in a strong p0511ion to embark on the delayed key and essential infrastructure projects which are now seen as a priority for the Schoo1 which include the development of the play areas in and around the school sile, relurbishment of the School's Astro field, and refurbishment of the school's properties and ils outdoor provisions. The Boaid of Governors are confident that the School's financial situation is in a sound position which will enable the School lo manage the current economic uncertainty, inciuding the lasting impact of the Pandemic and Brexit along with the inflationary pressures specifically surrounding energy costs, whilst balancing the inleresls of all key stakeholders. There has been no outsourced fundraising via professional fundraisers or other third parties. As a resLIIt. The charity is not registered with the fundraising regulator and received no fundraising complaints in the year. Freehold Properties In addition to the School buildings, the School owns four residential properties al New Julians IHeadmasler's HoL4sel, Oakmead House and Oiley Farm Cotlage Ifor staff occupation only), and Weslbourne House Inine flats, part staff and part non-staff occupancy). Income generated from property, including school lettings, this year was £177.229 {2021 - £147,233).
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Extra-curricular Activities Our extra-curricular programme continues lo be built around our weekly progTamme of lunchtime and after school clubs, subject to government guidelines. The much awaited traditional Expeditions Week resumed this academic year and continues lo thrive. Public benefit As required by the Charities Act 2011, the Governois have referred lo the general guidance on public benefit and have due regard lo the Charity Commission's guidance on public benefit, including the guidance 'Public Benefit.. Running a Charity {P821', As part ol our public benefit, we co-operate with a range of local charities in our ongoing endeavour8 10 widen public access lo the schooling we provide., lo oplimise the educational use of oiir cultural and sporting facilities and lo awaken in our pupils an awareness of the wider social context of the education they receive al the School. We are proud of the community links we have developed and continue to develop as listed below arsd we always look lo strengthen these in line with the Charity Commission's guide to public benefit. Partnership with Grange School. The School continues 10 Support the Grange School, Harrow. This support has included providing transport and invitations lo sporting tournaments and drama productions. in addilion, provided access to the use of our School minibuses, and donating lo their Christmas Box Project appeal, providing a Chrislmas present to all pupils al Grange school Partnership with Weldon Park. The School hosts a number of science workshops for pupil of Weldon Park across the academic year. Partnershlp wlth Alexander School. The School runs a music club at the Alexander School each Friday lunch through our Edge Programme. Use of Sporting facilities. Sl Dominic's College, make use of our sports fields which include cricket pitches, Astrolurf and soccer pitches. Work Experience. The School continues lo offer work experience placements to sludents from various colleges whereby some students gain sports coaching experience. Harrow Cricket Club. By continuing lo subsidise the overheads of Harrow Cricket Club. over two hundied youth cricketers and a number of adult te8ms from the wider communily have access lo the sport. The junior colt's teams also make use of the sports ha51 during winter months in support of their expanding junior cricket programme. Charitable Giving. The school has raised £S,606 for Wsnslon's Wish and £2,641 for Henry van Slraubenzee Memorial Fund. Fee Support This year we supported a lolal of 11 pupils al a cosl of £155,521 12021-. 27 Pupils £144.240) through our own Fee Support Scheme and our Hardship Support Scheme. Whilst the Support Scheme 3UPPOrted fewer pupils this academic year, the values of the awards were higher. 12
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Plans for Future Period8 These plaris remain.. To enact the School's Estates Slralegy., To enact our financial plans in support of this Eslales Strategy,. and To enact the School's other development plans and priorities as articulated in the 5 Year strategy agreed by the Governors for which a designated fund has been created. Objectives for 202212023 Maintain the excellence of the educational provision throughout the School., Carry on relations with the Grange School in Harrow and other Schools., Continue the review of our procedures and policies to ensure total regulalory compliance. Continue to develop the Orlumni., Ensure the provision of IT within the School continues to meet the academic and business needs of the school., Continue lo manage the relationships with the School's neighbours. tellanls and the wider community lo best effect., Continue lo manage the School's education provision, estate management, and responsibility lo pupils. staff and the wider school community lo best effect. Enact the Estates Strategy lo improve the School's lfIaStruCtUre, particularly focusing on key and essential infrastructure projects including continuing refurbishing and updating the outdoor play spaces.. Continue lo develop the School's Master Plan with a Governor led strategy commillee., and 10. Conlir¢ue to Gonducl due diligence on the creation and phased implementation of an outdoor curriculum offering at the School. 11. Governors will focus on managing the impact of any financial implications which may arise from political and economic factors outside the School's control to ensure that the School will continue to thrive in the future, Reserves Policy The total reserves for the School were £15,750,492 of whieh £1,552,731 related to dèsignated funds and a furthei 13,172,092 represented by fixed assets, leaving £1,025,669 of free reserves. The Reserves Policy of the School takes into aGGoufil of a number of parameters such as'.- Risks included in the School's risk register The School's objectives., and Thè current and fuluie obligations of the School, including any commi(menls that it has already entered into. Based on their assessment, the Covernors wnsider that the minimum largeled level Df reserves desiied is working Gapilal at th& level of three month's expenditure which equates to £1.8m. The Gove¥nors will continue lo strive lo generate funds in line with minimum largeled levels. The Governors will review th& reserves policy on an annual basis. 13
ORLEY FARM SCHOOL TRUST ANNUAL REPORT OF THE GOVERNORS Year ended 31 August 2022 Remiineration Policy The Remuneration Committee are tasked with reviewing remuneration, including Key Management Personnel, on an annual basis. Consideration is given to the current market conditions, performance and objectives sel al the beginning of each academic year. Responsibilities of the Governors The Governors (who are also directors of Orley Faim School Trust fo¥ the purposes of company lawl are responsible for preparing the Report ol the Goveinors (including the Strategic Report} and the financial slatemenls In accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally A¢PIed AccoLJnling Praclicel. Company law requires the Governors to prepare financial slatements lor each litkancial year, which give a true and fair view of the slate of affaiis of the charitable company and of the illGoming resources and application of resources, inGluding the income and expenditure. of the charitable company for that period. In preparing these financial slalemenls, the Governors are required lo.. select suitable accounting policies and then apply them ¢onsi8tenlly'. observe the methods and piinciples in the Charities SORP IFRS 102)., make judgements and eslimales that are reasonable and prudent., stale whether appIlble UK Accounting Standards have been followed, subject to any maleiial departures disclosed and explained in the financial slatemenls,, prepare the financial statements on the going concern basis unless il is inappropriate lo presume that the charitable company will Continue in operation. The Governors are responsible lor keeping adequate accounting records thal disclose with reasonable accuracy al any lime the financial position of the charitable company and enable them to ensure Ihal the financial statements comply with the Companie5 Acl 2006. They are also responsible for safeguarding the as5els of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Governors are aw8re: there is no relevant audil information of which the chari18ble company's auditor 15 unaware: and the Governors have taken all steps that they ought to have taken to make themselves awaie of any relevant audit information and lo establish that the auditor is aware of that information. Audltors During the year the Trust undertook an audit lender exercise, resolving thal Crowe U.K. LLP would be appointed for the year ending 31 August 2023. A resolution proposing their appointment will be submitted at the Annual General Meeling. Approved by the Board ol Governors of Orley Farm School Trust on behalf by.. 022 and signed on ils DrMEShort Chair 14
ORLEY FARM SCHOOL TRUST INDEPENDENT AUDITOR'S REPORT Independent auditor's report lo tho members of Orley Farm School Trust Opinion We have audited the financial slatemenls of Orley Farm School Trust Ithe'charilable company'l for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes lo the financial slatemenls, including a summary ol significant accounting policies. rhe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including FRS 102 The Fin8ncial Reportiiig standarcl applicable irp Ihe UK and Republic of Ireland Iulliled Kingdom Generally Accepted Accounting Practice}. In our opinion, the fi'nancial slatemenls.. give a true and fair view of the slate of the charitable company's affairs as al 31 August 2022 and of ils incoming resources and application of resources, including ils income and expenditure, foi 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 accordan with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalemenls section of our report. We are independent of the charitable company in accordan wlh 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 stalemenls, 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 woik we have perforrned, we have not identified any material ullcertainlies relating lo events or conditions that, individually or collectively, may c8St significant doubl on the charitable company's ability lo continue as a going conTrrn for a period of al least Iwelve months from when the financial slalemenls ale aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Other information The other information comprises the inft)rmalion included in th8 Annual Report of the Governors, other than the financial slalemenls and our auditor's report thereon. The Trustees are responsible for the olher information contained within the Annual Report of the Governors. Our opinion on the financial statements does nol cover the other information and. except lo the extent othenmise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether the other infoimalion is materially incon8lStenl with the linancial slalement8 or our knovAedge obtained in the Course of the audit. 01 othetwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise lo a material misslatemenl in the financial statements themselves. 11. based on the work we have peTformed, we conclude that there is a material misslalement of this other information, we are required lo report Ihal fact. We have nothing lo report in this regard. 15
ORLEY FARM SCHOOL TRUST INDEPENDENT AUDITOR'S REPORT Opinions on other matters prescribed by the Companie5 Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Annu81 Report of the Governors, which includes the Strategic Report and Direclois, Report prepared for the purposes of company law, for the financial year for wliich th8 financial slalemenls are prepared is consislenl with the financial stalemenls., and the Directors. Report included within the Annual Report of the Governors have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light ol the knowledge and understanding of the Charitable company and ils environment obtained in the ¢oiirse of the audit, we have not identified material misstalemenls in the Slfategic Report and the Directors, Report included within the Annual Report of the Governors. We have nothing to report in respect of the following mallers in relation lo which the Companies Act 2006 requires us lo ieport to you if, in our opinion.. adequate accounling records have not been kept, or returns adequate for our audit have not been received from branches not visiled by us., or the financial statements are not agreement with the accounting records and relums., or certain disclosures of Trustees, remuneration specified by law aFe not made,. or we have nol received all the information and explanations we require for our audit. Responsibtlities of Trustees As explained moTe fully in the Trustees, Tesponsibililies slalement, the Trustees Iwho are also the directors of the charitable company for the purposes of company lawl are fesponsible for the preparation of the financial statements and for being satisfied Ihal they give a true and fai¥ view, and for such internal control as the Trustees determine is necessary lo enable the preparation of financial slalemenls that are free from maleiial misslatemenl, whether due lo fraud or eOr. In preparing the financial statements. the Trustees are responsible for assessing the charitable company's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going Concern basis of accounting unless the Trustees either intend lo liquidate Ihe charitable company OF lo cease operations, or have no realistic alternative but lo do so. Auditor's responsibilities for the audit of thÈ flnancial ststsments Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from mateiial misslalemenl, whether due to fraud 01 error, and lo issue an auditor's report that includes our opinion. Reasonable assuran 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 misslatemenl when il exists. Mi581atements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions ol users taken on the basis of these linancial slalements. Irregularities. including fraud, are instances of non-compliance with laws and regulations. We design prOdureS in line with our responsibilities, ovtlined above, lo detect Materal misslatemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularilies. including fraud is detailed below.. We obtained an understanding of the Gharilable company and the sector in which it operates to identify laws and regulations that could reasonably be expected lo have a direct effect on the financial slatemenls. We obtained our Ljnderslanding in this regard through discussions with management, sectur research and application of cumulative audit knowledge and experience. 16
ORLEY FARM SCHOOL TRUST INDEPENDENT AUDITOR'S REPORT We determined the principal laws and regulations relevant to the charitable company in this regard to be those afising from the Companies Act 2006, Charities Act 2011. Charities (Accounts and Reports) Regulations 2008, Financial Reporting Standard 102 and the Charities SORP. We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the charity with those laws and regulations. These procedures included, bijl were not limited lo enquiries of management, review of minutes and review of legal and regulatory correspondence. We also identified the risks of mateiial misslalement of the financial statements due lo fraud. We considered, in addition lo the non-rebutlable presumption of a risk of fraud arising from mana9emenl override of controls, that there was a potential for management bias in the allocation of support costs against charitable activity categories. We addressed this through reviewing the method used for reasonableness and re-performing the calculation to ensure il had been performed accurately in line with the slated method. As in all of our audits. we addressed the risk of fraud arising from management override of controls by performing audit procedures which included bul were not limited lo." the lesling of journals.. reviewing accounting estimates for evidence of bias,. and evaluating the business rationale of any significant transactions that ale unusual 01 outside the normal course of business. Because of the inherent limitations of an audit, there is a risk thatwe will not detect all irregularities. including those leading lo a material misslalemenl in the financial slalemenls or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial slatemenls, as we will be less likely to become aware of instances of non- compliance. The risk is also greater regarding irregulaiilies occurring due to fraud rather than error, as fraud involves intentional ConalMent, forgery, collusion. omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council'g website at.. www.frc.or auditor's report. klaudilorsre onsibililies. This description fortns part of our Use of our report This report is made solely lo the charitable company's members, as a body, in accordan with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate lo the charitable company's members those mallers we are required lo stale to them in an auditor's report 2nd for no other purpose. To the fullest extent peimitled by law, we do not accept or assume responsibility lo 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 foimed. Alastair Duke Isenior Statutory Auditor) For and on behalf of PKF Littlelohn LLP Statutory Auditor 15 Weslferry Circus Canary Wharf London E14 4HD Dale.. 9 March 2023 17
ORLEY FARM SCHOOL TRUST STATEMENT OF FINANCIAL ACTIVITIES Ilncorporating an Income and Exp8nditure Account) Year ended 31 August 2022 2022 2021 Note Income from: Charitsble Activities School fees receivable Registration lees Ancillary income Olhei income Grant income 7,966,750 7,667,088 19,550 11,000 68,078 50,773 245,633 182,206 5,069 16,604 2a Investments 3,049 528 Total Income 8,308,129 7,928,199 Expenditure on.. Raising funds Financing costs 79,512 75,490 Charitable Activities Ancillary costs Piimary educational costs 2b 35,345 51,983 7.116,667 6,623,591 Total Expenditure 7,231,524 6.751,064 Net Income and Movements In Funds forthe Year 1.076,605 1,177,135 Balance at beginning of year 14,673,887 13,496,752 Balance at End ofyear 15.750,492 14,673,887 All ol the activities of the School are continuing. The School has no recognised gains or losses other than as slated above. All income and expenditure was unreslricled in both years. The Accounting Policies and Notes on pages 21 to 30 form part of these Financial Slalements. 18
ORLEY FARM SCHOOL TRUST Company Number: 628541 BALANCE SHEET At 31 August 2022 Fixed Assels Note 2022 2021 Tangible lixed assets Investments 13,172,092 20,950 13,161,203 20,950 13,193,042 13,182,153 Current A558ts Debtors Cash al bank and In hand 10 242.207 5,629,957 172,372 4,881,084 5,872,164 5,053,456 Creditor8.' due within one year 11.265,2071 11.184,5051 Net Current Assets 4,606,957 3,868,951 Credltors.. due in Inore than one year 12 12,049,507) 12,377,218) NotAssets 15,750.492 14,673,887 Unrestricted Funds 14 General fund Designated FLJnds'. Building Refurbishment fund 14,197,761 12,673,887 1,552.731 2,000,oao 15,750.492 14.673.887 Approved and aulhorised for issues by the Board of Governors on ZQ I I |.z.L. 2022 and signed on ils behalf by.. DrMEShort Mrs S Kothari Chair Chair of Finance Committee The Accounting Policies and Notes on pages 2110 30 form part of Ihese Financial Slatemenls. 19
ORLEY FARM SCHOOL TRUST STATEMENT OF CASH FLOWS Year ended 31 August 2022 2022 2021 Note Net Cash Inflow from Operating Activities 15 1,591,248 1.803,146 Cash flows from Investin Payments lo ac Iiileresl receive Interest paid AGtivities 1450,9821 3,049 1332,6511 528 75 490 Net Cash Outflow from Investing Activities (527,4451 1407,6131 Cash flow from Financing Activities Loan Repayment 1314,931} 1134,5481 Increase in cash in the year 15 748,872 1,260.984 Reconciliation of Net Cashflow to Movement in Net Funds Increase in cash in the year Nèl decrease in bank loan 748,872 314 931 1,260,984 134 548 Change in funds resulting from cash flows and 15 Movement in nel funds in the year 1,063.803 1,395,532 Net funds al beginning of the year Net Funds at End of the Year 2217 373 15 3281 176 2217373 The Accounting Policies and Notes on pages 21 to 30 foim part of these Financial Slatemenl5. 20
ORLEY FARM SCHOOL TRUST ACCOUNTING POLICIES Basis of Accounting Orley Farm School Trust is a charitable company in the United Kingdom. In the event of the charity being wound up, the liabilily respect of the guarantee is limited lo £1 per tnember of the charity. The address of the registered office is given in the charity information on page 3 of these financial stalemenls. The nature of the charity's operations and principal activities is the operation of Orley Farm Sch(x)l. The charity conslilule9 a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities-. Statement of Recommended Practice applicable to charities preparing their accounts accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Financial Reporting Standard applicable in thè United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011, the Companies Act 2006 and UK Geneially Accepted Practice as it applies from 1 January 2019. The financial statements are prepared on a going concern basis under the historical cost convention, modified lo include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity. The Governors have assessed whether the use of the going concern basis is appropriate and have considered possible events or condiltons that might cast significant doubl on the ability of the School lo continue as a going conceTn. The Gove¥nors have made this ass8ssment for a period of al least one year from the date of approval of the financial slatemenls. In particular the Governors have considered the School's forecasts and projections and have taken account of pressures on fe6 income, particularly in light of the impact of the current economic uncertainly including the inflationary cost pressures and the exposure 10 $1gnificanl increases in utility costs, before these financial slalements were approved and is explained in more detail in the Risk Management section of the Governors Report in these financial slalements. After making enquiries the Governors have concluded that there is a reasonable expectation that the School has adequate resources to continue in operational existence for the foreseeable future. As such the School can expect to be abl8 lo meet ils liabilities as they fall due in the peiiod of al least 12 months from the date of approval of thes8 accounts. However, there can be no certainly in relation lo these mallers. On this basis the Governors have concluded that the School is a going concern. The financial slalements do not include any adjustments that would result from the School not being able to meet ils liabilities as they fall due. The significant accounting policies applied in the preparation of these financial statements are sel out below. These policies have been consistently applied lo all y8ars presented unless olhetwise slated. The Trust is the beneficial owner of the whole of the share Capital of South Hill Estates Ltd. The Company's assets and transactions in the year are not considered malerial, therefore the Governors consider it is not appropriate lo prepare consolidated accounts of the Trust and its subsidiary. Cash and Cash equivalents Cash and cash equivalents include cash at bank and in hand. Judgements and key souicos of estimation and uncertainty The preparation of the financial statements requires management lo make judgements, eslimales and assumptions that affect the amounts reported for assets and liabilities as at the balan sheet dalv and the mounts reported for revenues and expenses during the year. However, the nallire of estimation means Ihal actual outcomes could differ from those estimates The judgements (apart from those involving eslimalesl that have had the most significant effect on amounts recognised in the financial slalemenls related lo the useful economic lives of tangible fixed assets. and judgements in relation lo the iecovorabilily of debtor balances. 21
ORLEY FARM SCHOOL TRUST ACCOUNTING POLICIES Income All incorning resources are included in Ilie Slalemenl of Financial Activities ISOFAI when the School is legally enlilled lo the income, after any performan conditions have been mel, when the amount Can be measured reliably and when il is probable that the income will be received. Fees receivable and chargos for seThfjces and use of premises are 3¢counled foi in the period in which the service is provided. Fees received prior to the end of the year in respect of the folloyring terms are shown on the balance sheet as deferred Income, Investment income is earned through holding assets for investment purposes such as property. 11 includes interest and rent., Interest income is rpGogntrsed when receivable and rent is recognised when the chalily's right lo receive payment is established. Expenditure All expenditure is accounted lor on an acciuals basis. Expenditure is recognised where there is a legal or consti'uclive obligation to make payments to third parties, il is probable that the settlement will be required and the amount ol the obligation can be measured reliably. Charitable activities costs includé all expenditLJre directly relating lo the objeGls of the School. Governance costs comprise the costs of iunning the charity including strategic planning for future development, audito¥s' remuneration. certain legal c051s, Governors, expenses atld the costs of complying with conslitulional and slatulory requirements. These costs are conlained within 'Support and Management Costs-other, (see note 41. All costs, including support costs. are allocated belweeii expenditure calegories and departments on a basis designed to reflect the use of the resource. Costs relating lo a particular aGlivily are allocated directly. Unrestricted Funds Unreslricled funds consi51 of general reserves which are available for the Gov8rnois to apply to the general purposes ol the School_ Designated funds consist of certain unrestiicted fijnds which the Govemors have earmarked for particulai purposes. 22
ORLEY FARM SCHOOL TRUST ACCOUNTING POLICIES Tangible Fixed Assets Expenditure on land and buildin9s which, in the opinion of the Govemors, has not enhand their long-term value 18 charged to the SOFA. Expenditure on improvements to land and buildings which. in the opinion of the Governors, has enhanced their long-lerm value is capilalised. Expenditure on plant, equipment (including IT equipment) and furniture which is in excess of £1,000 per item. or group of items. is capilalised. Assets in the course of construction are capitalised and deprectated when brought into use. Depreciation is provided on all other tangible fixed assets. including freehold property, to write off their cost less residual value over their estimated useful lives when brought into use. at the following rales.- Freehold buildings 8uildings of non-permanent construction All weather pitch Furniture, fixtures and equipment Computers Motor vehicles Telephone System 2% on cost 4°k on cost 10410 on cost 15010 reducing value 25QlTr on reducing value 25Q/o on reducing value 20Qkn on reduc4ng value The residual walue for all classes of assets, including iecenl additions lo the school buildings, is deemed lo be zero. The exception to this rule being the original freehold buildings, for which the Tesidual value is deemed to be 50,10 of the Original cost to reflect Fond values. Investmtrnts Listed investments are slated al market value. Realised gains and losses arising on sales of investments and unrealised gains and losses arisirig on the revaluation of the investments at the year-end are laken lo unrestricted funds on the SOFA. Investments in subsidiary undertakings are recorded at cost less any provision for impairment. Operating Lease$ Rentals paid under operating leases are charged lo the SOFA. Taxation Th8 School, as a registered charity, is generally exempt from Corporatlon Tax bul not fiom Value Added Tax IVAT). Irrecoverable VAT is included in the cost ol those items lo which it relates. The School's subsidiary trading companies ar8 liable for Corporation Tax on taxable profit5 not paid lo the School as qualifying dor¢alions under the Taxes Acts. Pension Schemes The School contributes lo the Teachers, Pension Scheme. which is a defined benefit scheme, al fates sel by the Government Actuary and advised lo the Governors. The Scheme is a mulli-employer pension scheme and il is not PO88ible lo identify the assets and liabilities of the Scheme which are atlribulable lo the School. In accordance with Financial Reporting Standard (FRS 1021- Retirement Benefits, Ihe Scheme is therefore accounted for as a defined contribution schetne. Contributions to the Scheme are charged lo the SOFA as they become payable in accordance with the Yules of the Scheme. The School also conlribules lo individual personal pension schemes foT non-teaching staff. 23
ORLEY FARM SCHOOL TRUST NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2022 1. School Fees Receivable 2022 2021 Fees receivable consist ol.. Gross fees Less.. lolal buisaries, grants and allowances 8,203.940 7,913,916 1237.fj 901 1246,8281 7.966,750 7,667,088 2a. Ancillary Income 2022 2021 Coaches Aller School Clubs Disbuisemenls Pupil Insurance 2.065 9,420 29,116 27,477 1,365 8,219 16.004 25,185 68,078 50,773 2b. Ancillary Costs 2022 2021 Coaches After School Clubs Disbursements Pupil Insurance 224 27 10,341 24,753 30 29,266 22,687 35,345 51,983 3. Other Income 2022 2021 Property Holiday Club Miscellaneous 177,229 27,221 41,183 147,233 21,593 13,381 245,633 182,206 4. Grant income During the year the School received Coronavirus Stalulory Sick Pay Scheme of £2,216 and Gift Aid Claim of £2,853 12021.. the School reTrived a grant of £16,604 in relation lo Ihe Coronavirus Job Retention scheme). 24
ORLEY FARM SCHOOL TRUST NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2022 5. Analysis of Charltsble Exp&nditure Salaries Other Depreciation Totsl 2021 Teaching Welfare P¥emises Support and management costs 3,994,997 486,792 230,597 194,629 398.698 549,816 556,115 264,930 4,481,789 4,209,834 425,226 344.377 1,388,607 1,301,525 821.045 767,856 440,093 6,180,407 1,496,167 440.093 7,11S,667 6,623,591 6. Employees and Key Management 2022 2021 Staff costs Salaries and wages Social security costs Pension costs 4,063,719 3.82S,039 424,597 387,057 692.091 675,841 5,180,407 4,887,937 Neither the Governors nor persons connected to them received any remuneration or benefits or reimbursements of expenses fiom the School with the exception of the items reported in note 16 of the statutory accounts. The number of higher paid employees whose remuneration for the year fell within the following bands was.. 2022 2021 £60,001- £70,000 £70,001- £80,000 £80,001- £90,000 £130,001 £140,000 £160,001- £170,000 Pension contributions of £77,68312021 £74.0221 were made on behalf of these employees. Of these employee's pension contributions in respect of the School defined eonlribution scheme were £5.311 {2021- £5,233). Staff Numbers No. No. The average number of full lime 6quivalent staff employed by the school within each calegoiy was- Teaching staff Other staff 50 50 so 47 100 97 The key management personnel of the school includes the Governors. the Headmaster, the Director ol Finance and the Director of Operalior¢s. The aggregate employee benefits of key management personllel of the School were £362,16712021- £324,987). 25
ORLEY FARM SCHOOL TRUST NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2022 7. Net Movement in Funds 2022 2021 This is slated after chargingllcredilingl.. Auditors, remuneration CL4rrent year audit 13,050 12,430 Oeprecialion 440,093 416,154 8. Tangible Fixed Assets Furniture. Freehold land equipment and buildings and vehicles Assets in the course of conytruction Cost Total Al 1 September 2021 Additions Transfers Disposals 16.013,405 236.739 2.087,578 214,243 33,426 18,134,409 450,982 At 31 August 2022 16,250,144 2,301,821 33,426 18.585.391 Depreciation Al 1 September 2021 Charge for the year Disposals 3,159,051 367,934 1,814,155 72.159 4,973,206 440,093 At 31 August 2022 3,526,985 1,886,314 5,413,299 Net Book Value Al 31 August 2022 12,723.159 415,507 33,426 13,172,092 Al 31 August 2021 12,854,354 273,423 33.426 13,161,203 9. Fixed Assets Investments 2022 2021 il Investment in subsidiaries - shares at cost South Hill Estates, Harrow Limited Orley Farm School Enterprises Limited 20,950 20,950 20,950 20,950 The Trust owns 1000A of the share capital in the following two subsidiary companies,. South Hill Estates (Harrow) Limited, which owns and manages land and roads in the Harrow area, and Orley Faim School Enterprises Limited. 80th companies are regisleied in England and Wales. 26
ORLEY FARM SCHOOL TRUST NOTES TO FINANCIAL STATEMENTS Yearended 31 August 2022 The results of the subsidiary companies as extracted from their audited Financial Slalements are as follows.. South Hlll Estates Orley Farm School Enterprises 2022 2021 2022 2021 Capital and reserves 3,142 28.425 Loss for the year 125,2841 {3,7631 A decision was made in June 2007 to subsume the acliviltes of OHey Farm School Enterprises within the School. The Company became dormant with effect from 1 SeplembeT 2007. 10. Debtors 2022 2021 Fees and extras in arrears Amount due from subsidiary company Other debtors Prepayments 57,870 54,913 10.719 118.705 57,728 19,174 10,719 84,751 242,207 172,372 11. Creditors due within one year 2022 2021 Deposits Tax and social security Accruals and deferred income Other creditors Bank loan repayable within one year 314,250 182.887 261,286 207,510 299,274 310.022 181,866 320,049 86,073 286,495 1,265,207 1,184,505 Deferred income consists of fees received in advance tolalling £222.96712021- £162,988) 12. Creditors due In more than one year 2022 2021 Amounts repayable between two and five years 2,049,507 2,377,218 2.049,507 2,377,218 The loans are unseeLJred and repayable over 120 months from 31 March 2015. The interest iales applicable lo the loans are= LIBOR loan Business loan 2.5Vo per annum over LIBOR plus mandatory cost 2.950/0 per annum over base rate 27
ORLEY FARM SCHOOL TRUST NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2022 13. Pensioii Scheme The School particip3les in the Teachers, Pension Scheme I'the TPS'I for its leaching slafl. The pension charge for the year includes contributions payable lo the TPS of £583,42912021 £574,562} and al Ihe yeai'_end £47,06412021 £48,933) was accrued in respect of contributions lo this scheme. The TPS is an unfunded mulli-employer defined benefits pension scheme goveTned by The Teachers, Pensions Regulations 2010 las amended) and The Teachers, Pension Scheme Regulations 2014 {as amendedl. Members contribute on a "pay as you go" basis wilh Gonlribulions from members and the employer being eredited lo the Exchequer. Retirement and other pension benefits are paid by publlc lunds provided by Parliament. The employer Contribution rate is sel by the Secretary of Slate following scheme valualioris undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as al 31 March 2016 and the Valuation Report. which was publiBhed in Maich 2019, confirmed that the employer contribution iale for the TPS woiild increase from 16.4010 10 23.6 % from 1 September 2019, Employers are also required lo pay a sGheme adminislralion levy of 0.080/4 giving a total employer conlribulion rale of 23.68Q/o. The 31 March 2016 Valuation Reportwas prepared in accordanco with the benefits set out in the scheme Tegulations and under the approach specified in the Directions. as they applied at 5 March 2019, However, the assumptions were considered and sel by the Department for Education prior lo the ruling in the 'McCloudlSaigeanl case.. This case has required the courts to consider uses iegaiding the implemenlalion ol the 2015 reforms lo Public Service Pensions including the Teachers, Pensions. On 27 June 2019 the Supreme Court denied the government permission lo appeal the Court of Appeal's judgtnenl that Iransilional provisions introduced lo the reformed pension schemes in 2015 gave rise lo unlawful age discrimination. The goveinment is respecting the Court's decision and has said il will engage fully with the Employmonl Tribunal as well as employer and member representatives lo agree how the discriminations will be remedied. The government announced on 4 February 2021 that Il intends lo proceed with a deferred choice underpin under which members wi15 be able lo choose either legacy or reformed scheme benefits in respect oftheir service during the period between 1 April 2015 and 31 March 2022 at the point they become payable. The TPS 15 subject lo a cost cap mechanism which was pul in place to protect laxpayers against nforeseen change5 in scheme costs. The Chief Secretary lo the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism. in January 2019 annoUnd a pause lo the cost C8p mechanism following the Court of Appeal's ruling in the Mccloudlsargeanl case and until there is certainly about Ihe value of pen5iOnS to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes lo the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Goveinmenl have accepled three key proposals recommended by the Government Actuary, and are aiming lo implement these changes in time lor the 2020 valuations. The 2016 cost contToI valuations have since been completed in January 2022, and the results indicated that there would be no changes to benelils or member contributions required. The results of the cost cap valuation are not used lo sel the employer contribution rate, and HM Treasury has confirmed that any changes lo the employer contribution rale resulting from the 2020 valuations will tske effect in April 2024. Until the 2020 valuation is completed il is not possible lo conclude on any financial impact or futu changes lo the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial slalemenls. The School also contributes lo a defirbed conlribulion scheme on behalf of its support slaff. Employer contributions payable lo this scheme was £108.66212021: £101,032) and al the year~end £9,23212021.. £8,338) was accrued in respect of these scheme. 28
ORLEY FARM SCHOOL TRUST NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2022 14. Unrestricted Funds Relurb- ishment fund General fund Total funds Al 1 September 2021 Nel income Exp&ndilurelTransfers Ito}Ifrom designated fvnds 12,673.887 2,000,000 14,673,887 1,076,605 1,076,605 447,269 1447,2691 At 31 August 2022 14.197,761 1.552,731 15.750,492 Refurb- ishment fund Gèneral fund Total funds At 1 September 2020 Nel income ExpenditurelTransfers {lol/from designated funds 12,496.752 1,000,000 13,496,752 1,177,135 1,177.135 11,000,000) 1,000,000 At 31 August 2021 12.673,887 2,000,000 14,673,887 Designated Funds The Goveinois have reconsidered the Designated Funds and have agreed in line wlh the Charity Commission giiidance lo establish the Refurbishment Fund lo enable the School Refurbishment Plan which is due lo be implemented with the next thelve lo eighlegn months. 15. Cash Flow Statement 2022 2021 Net Cash Inflow from Operating Activities Nel income Depreciation Ilncreasel I decrease in debtors Increase in creditors Interest paid Interest reiVed 1,076,605 1,177,135 440,093 416,154 169,8351 70.427 67,922 64.468 79,512 75,490 {3,049) 15281 1,591,248 1,803,146 29
ORLEY FARM SCHOOL TRUST NOTES TO FINANCIAL STATEMENTS Year ended 31 August 2022 Note 15 continued. Analysis of Net Funds Asat 1 September 2021 other Asat Cash Non-cash 31 August flow changes 2022 Nel cash balances Olhei loans 4,881,085 12,663,712) 748,872 314,931 5,629,957 12,348,781) Total 2,217,373 1,063,803 3,281,176 Asat 1 September 2020 Other Asat Cash Non-cash 31 August flow changes 2021 Nel cash balanS Other loans 3,620.101 {2,798,2601 748,872 134,548 4.881,085 {2,663,7121 Total 821,841 1,395,532 2.217,373 16. Related Party Transactions During the year amounts lotalling £13.47312021- £10.4281 were payable lo Ihts subsidiary company, South Hill Estates, Harlow Limited relating lo road lewy charges. At the year-end £54,91312021 £19,173} was due from the subsidiary company. During the year Mrs Z Kemal, a teacher of the School. provided baking setvices al a cost of £262 {2021= £nil) iii. A Governor, Mr A Land, receives a fee discount of 20Yo under the Harrow Masters Fund. This fund is no longer open to new entrants. iv. During the year the School hiTed facilities from harrow School Enterprises Ltd for various school events al a cost of £3,04012021'. £3,291). Mr A Land, a Governor al the school, is 8 director of this Gompany. vi. During the yeai 3D Motors Limited provided vehicle maintenance services lo the school at a cost ol £2,24612021'. £1,236). Mr R Railhalha, a Governor al the school, is a director of this company. vii. Mrs R Gascoigne, a teacher at the school. is an owner of G&T School of Performing Arts, an oiganis8lion Ihal hires parts of the school premises lo provide drama activities during weekend. The hire chgrge for the year was £8,45212021.' £3,946). There were no other related party transactions in either years. 17. Capital Commitments Al 31 August 2022 capital works aulhorised by the Board of Governors but not contracted for amounted 10 £1,593,32412021- £1,235.0001. 30