Registered number: 0709159 Charity number: 312648 ST. MARTIN'S (NORTHWOOD) PREPARATORY SCHOOL TRUST LIMITED {A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 ST. MARTIN'S {NORTHWOODI PREPARATORY SCHOOL TRUST LIDAITED IA company limited by guarantee) CONTENTS Page Roferencg and administrative details of tho Cornpany> its trustges and advisers Trustees. report Independent auditor's report on the financial statgments Statement of flnanclal actlvltles 9-12 13 Balance shogt 14 statement of cash f5ov 15 Notes to the financial statements 16-24 ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021 Trustees Mr A Harris, Chairman Mrs A Baldwin Mr S Everson Mr J Fowler Mr V Hales Mr N A Hinds Mr K Kothari Mrs C Marks rs P Mastin Mr J Richards Dr B Williams (Appointeé 1 September 20201 School offlcers Mr S Dunn (Head leacherl Mrs A Curran IBursar} Company reglstered number 0709159 Charity registered number 312648 Registered office 40 Mcx)r Park Road Northwood Middlesex HA62DJ Auditor Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Bankers National Westminster Bank PIC 159 High Street Rickmansworth Hertfordshire WD31AR ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED {A cornpany lirnited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The members of St Martin's (Northwoodl Preparatory School Trust Limited present their annual report for the year ended 31st August 2021 under the Charities Act 2011 and the Companies Act 2006, this including the Director's Report and Strategic Report under the 2006 Act, together with the audited fi'nancial statements for the year. DIRECTOR'S REPORT Constitutions and Objects St Martin's INorthwoodl Charitable Trust Limited is a eharitable company limited by guarantee. Its registration number is 312648 and the company registration is 0709159. The cornpany is govemed by its Memorandum and Articles of Association dating from 28 November 1961 which state that its object is the advancement of education. In furtherance thereof, the company operates St Martin's School, a preparatory school. Govemance and Management Governing boity The directors serve as trustees of the Charity and under the terms of the above articles are also members of the Company. They are elected by the Board of direelors on the basis of nominations received from serving directors, the headmaster and others. GovernorslDirectors are selected on the basis of their skills and suitability. New Governors are inducted into the workings of the Charity including Board policy and procedures. by attending Governors, meetings. reviewing the Governors, handbook, receiving support from experienced governors and being directed lo relevant guidelines and courses. The tenure of office for a member of the Governing body is for an initial period of 4 years, with a Governor being eligible for re-election for further terms of office every 3 years IheTeafteT. Current and former parents and former pupils may serve as Governors. Stsff are not permitted to serve as Governors. Dr Bhanu Willlams was appointed to the Goveming body and as a trustee with effect from 1$1 September 2020. Organlsatlonal Management The Governors are legally responsible for the overall management and oversight of the SGhool. They usually meet as a board three or more times per year, once each term, to determine policy and lo monitor the operation5 of the company. Their role is a55iSted by the work of the sub-committees who meet each term in advance of the Board Tneeling. The sub Gommittee5 are". Governance, Finance & Operations, Teaching & Learning, Estates, Renumeralion, Marketing and Corporate Social Responsibility. There are also two schoo committees which nominated governors attend being Information & Communications Technology and Health & Safety. The Finance & Operations Committee, as assisted by the School's Bursar and accounlanls, Is responsible for implementing financial strategy and policies of the Board including the preparation of budgets and forecasts. This committee also has oversight of any operational matters not covered by any of the olhef committees, significantly Human Resources IHRI. This Committee meets every term and more often if necessary. Audit and risk management related to the School's Financial and Human Resources risks are dealt with by the Finance & Operations Committee. The day lo day running of the School is delegated to the Headmaster, who with the Bursar attends all meetings of the Governing Body and subsidiary committees. They in turn are supported by the other members of the School leadership team. ST. MARTIN'S INORTHWOOD) PREPARATORY SCHOOL TRUST LIMITED IA company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 STRATEGIC REPORT Aims, Objectives and Activities St Marbn's aims to provide boys, aged 3- 13, wilh the breadth of education and experience for them to ￿alise their full potential at school in a safe and friendly environment, and lo be well prepared for future life. To achieve this, the School applies eight key principles as follows". 1. The school to have a happy. friendly atmosphere as well as a lair. secuie, disciplined framework for learning. 2. The boys to receive an all-round education lo develop the whole person. by the provision of academic. sporting, artistic and musical opportunities. 3. The leaching lo be of the highest quality. including the best of traditional and contemporary approaches, lo enable the boys lo fvlfil their potential. 4. Communication between parents, headmaster, 51aff and boys to be of paramount importance at all stages of school life. 5. While preserving the fundamental Christlan ethos of the school in ils present multi-cultural mix, lo cultivate respect and understanding of other faiths and cultures. 6. The buildings, facilitles and resources lo be of a high standard, safe and suitable for today's needs. 7. Good relations with the local community to be fostered and, where appropriate, joint projects lo be developed and school facilities lo be made available. 8. The pastoral care lo underpin the moral eth05 of the school by promoting the values of honesty, integrity, respect and humility. These aims are achieved in a number of ways. They underpin the operational ethos of the school and are referenced in strategic and school development planning. In the process of self-evalualion for inspection, these are used as markers for this process. In terms of governance. each of the principles is directly related to the work of a sub-committee of the Full Board. Achievements and pgrformance The school prides Itself on not only the quality of the education provided, bul also ils record in examinations lo senior schools. The school is well placed lo prepare boys for a wide range of schools, but in practice these tend lo be local to the a￿a. Traditionally, the focus was always on 13+ transfer with only a small number sitting al 11+ and principally for the maintained grammar schools. This has changed significantly over the last 2 years with the vast majority of boys undertaking these assessments in the January of Year Six. The has meant that a parallel approach for 11 + and 13+ is now required. The following sets out the 11+ and 13+ offers and scholarships.. ST. MARTIN'S INORTHWOOD) PREPARATORY SCHOOL TRUST LIMITED (A company limlted by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 AWARDS AT YEAR EIGHTl13+) 2021 Merchant Taylors, School 19 places offered 4 Academic Scholarships I DT Scholarship AWARDS AT YEAR SIX{Il+) 2021 Merchant Taylors, School113+ 2023) 23 places offered l Major Academic Scholarships 2 Minor Scholarships The Haberdashers, Aske's Boy5, School 8 places offered 3 Academic Scholarships The Haberdashers, Aske's School Boys, School 8 places offered l Academic Scholarship John Lyon School 18 places offered 8 Academic Scholarships John Lyon School 3 places offered Aldenham School 4 places offered 3 Academic Scholarships I Sport Scholarship Aldenham School 3 places offered 5t. Alban's School 2 places offered St. Alban's School 5 places offered 3 Academic Scholarships Berkhamsted School 3 places offered Harrow School I Place offered Magdalen College School I Place offered l Academic Scholarship ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED (A company Ilmlted by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 In Autumn 2020. following the retirement of the deputy headmaster, a new Leadership team was formed comprising the Headmaster, the Bursar, and 4 Assistant Heads with responsibilities for Pre-Prep. Pastoral, Academic and Organisation & Compliance respectively. The school, under the guidance of the newly formed Leadership team, continued to successfully navigate through the pandemic and responded lo further lockdowns. The use of technology, both for remote teaching and in sharing data and information. continued lo excel and despite the potentially negative impact on the boys, social and well being, the curriculum continued to be well covered and progress maintained. The provision of additional bursaries continued and fee discounts were provided for the lockdown. The change in pupil numbers was negligible and pupil numbers continue to be at or c105e lo budgeted levels Investment in the sile continued with the Year 4 classrooms and one of the English classrooms being fully refurbished and new technology pul in throughout the English department. The kitchen servery was upgraded. the sports hall boilers were replaced and the nurserylPre-Prep outside play area had new AstroTurf laid. The School also purchased a 213 bed house located in Mezen Close for staff accommodation use, that opportunely came on the market. More sets of ipads were purchased for various se¢liop.¢ of the school in line with the IT strategy. Site development planning remains a consideration and a new Mulli Use Games Area is being planned lo coincide with the school's centenary. Significant investment has been made in a marketing strategy and a re-branding exercise that will launch in tandem with the new school website in the Summer of 2021 Despite ongoing challenges, the school remains in a healthy slate and is well placed both financially and academically for the challenges ahead. Parental satisfaction remains very high and has been strengthened by the way the schoo5 has continued lo handle the pandemic. The benefits of Increased technological capability will be key in moving forward and we will be seeking to capitalise on the decreased ￿lianCe on physical media and increased independence of the boys in their own learning. Community, Social and Charitable In considering the provision of Public Benefit, the Governors have given due consideration to the Charity Commission's published guidance on the Public Benefit requirement under the Charities Act 2011. During the year £185,651 12020.. 138.3161, representing 3.09 Yo12020.'2.03010l of fee income. was given as bursaries in support of 1612020.. 121 boys who would not olhetwise have been able to afford the benefits of St Martin's Education An additional £92,804 was given as emergency bursaries due lo the impact of lockdown on the Current Sl Martin's parents supporting 8 further 1412020.. 20) boys. The School's designated charity Continued lo be T11 North al University College Hospital, London. It is a children's cancer ward which also provides support lo the families of the children in the ward's care. Despite the ongoing reslriclions of the pandemic we still managed to raise just over £9,000 for them. St Martin's will resume the support of Ioc81 stale primary schools through the use of our sporting facilities and a member of staff will resume the liaison and development of working partnerships with other schools. FINANCIAL REVIEW Results for the year The full year surplus of £412,741 {2020'. £77,030) was better than the conservative budget of £78,338. Vve were able to recover from the pandemic in an efficient manner. despite experiencing a small decline in our pupil numbers. Whilst offering a discount for the Spring term lockdown. our overheads were tightly controlled and the extension of the furlough scheme gave us some further support resulting in a good surplus. The surplus ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED IA company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 represented a 6.87¥¢12020.' 1.28Yol return on gross fee income. We continue to make improvements in financial control and management of cash and are now deploying technology more effectively enabling us to reduce stationery, photocopying and other such materials. The School remained close to full capacity during the period and principal fee income prior to discounts was £33,555 less than the previous year. Costs were £368.263 less than the previous year. The net value of fixed assets was £9,642.61612020'. £9.400,1541, an increase of £242.462. The increase mainly related to the purchase of a house in Mezen Close. The company's cash position continues lo improve and stood at £3,917.011 12020.. £3.887,5331 at year end. The balance on all borrowings at the end of the period was £636,84412020'. £791,055), a reduction £154,211. The Sehool paid off the bank loan in September 2021 following agreement with the Governors. Reserves poll¢y Unrestricted funds at yeai end lolalled £11,972,747 {2020.' £11,560,006} of which fixed assets less bank loans tolalled £g,005,77212020.' £8.609,0991 leaving free reserves of £2,966,975 {2020.' £2.950,9071 Reserves adequately cover future Spending plans which are highlighted Ljnder future plans below. The Governors are determined that resetves are continually re-invested in the School for the benefit of the boys whilst ensuring that the School remains in a strong financial position. Going concem The School produces regular financial information including budgets, forecasts and a longer term strategic busines5 plan. which are closely monitored by the Governor5. These budgets. cash flows and forecasts have been reviewed and revised in light of the ongoing impact post the Covid-19 pandemic. lo take into consideialion the current economic climate and ils potential impaet. A nurnber of scenarios were produced which considered the wider potential impact from Covid-19 on the School's key operations, ca5ty position, sources of income and planned expenditure. Revised forecasts have been prepared together with cash-flows, based on the most likely expected outcome from these scenarios, with sen51tivity analysis on the key assumpts'ons. The cash flow modelling with sensitivity analysis indicates that the cash reserves of the School are adequate lo meet the charity's obligations as they fall due. Therefore the Governors have a reasonable expectation that the charity has adequate resources lo continue its activities for the foreseeable future and consider that there were no material uncertainties over the School's financial viability. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Governors, Responsibilities. FUTURE PLANS The Governors and Leadership team are in the process of formulating a new Strategic Plan. A number of sub sections of the plan are being developed within the school in preparation for an Overall School Strategic plan to be developed with the Governing body. A strategy day scheduled for March 2020 took place in October 2021 and the Strategic plan will be further developed alongside the marketing and branding work. Over the next 1-5 years our potential plans include Ongoing implemenlalion of the IT strategy lo include upgrade of classroom display equipment and provide dedicated devices lipadsl for year S-8 and additional sets of classroom devices for the younger age groups Enhancement of the outside environment and entrance for Kindergarten and Pre-Prep 'ndow replacement in the Pre-Prep building and improving connectivity be￿een the Pre-Prep building and the Main School ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED (A company limited by guaranteel TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 Development of nursery inside facilities Enhancement of junior school section lyears 3 & 4} Provision of an additional sel of boys, toilets Creation of more outdoor learning spaces Upgrade of sports facilities- new cricket nels, new MUGA, climbing wall and gymnasium equipment Risk managemenl The Board of Governors is responsible for the oversight of the risks faced by the School. Detailed consideration of risks is delegated to the specifie committees relevant to the particular identified risk. managed by the Senior Leadership Team. Risks are identified, assessed and controls established throughout the year. The Board monitors the effectiveness of the system of internal controls and other means, including insurance cover. by which those identified risks can bè miligaled. The key controls Ljsed by the Charity include-. formal agendas for all Committee and Board aelivity., detailed terms of reference for all Committees,. comprehensive strategic planning. budgeting and management accounting., formal written policies., clear aulhorisation and approval levels.. and vetting procedures as required by law for the protection of the vulnerable. Through the risk management processe$ e$tablished for the School, the Governors are satisfied that the major risks identified have been adequatèly mitigated where necessary. 11 is reeognised that the systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. The risks that continue lo receive particular allenlion relate lo.. External or internal factors leading to low morale risk resulting in poor educational standards, high stress levels and absencelsick leave. This has particular relevance to the pandemic and the stresses that are consequent to that. These have been mitigated by the appointment of key pastoral staff, a strengthening of the school's HR function with improved links lo occupational health services Macro-economie risk of the impact an uncontrollable national event will have on the school - such as Pandemic. This is mitigated by robust measures in place to keep the school running remotely if needed. Strong reseNes are retained lo ensure stability financially if income drastically reduces. Both of these risk5 currenuy score above 15 lout of a maximum of 251 on the scale which classifies them as high risk. Trustees. responsibilities statement The members of the Board of Governors (who are also the directors of Sl Martin's (Northwoodl Preparatory School Trust Limited for the purFx)ses of company lawl are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. Company law requires the members of the Board of Governors to prepare financial statements for each financial year. Under company law they musl not approve the financi81 statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitsble company and the group, including the income land ils applicalion) and expenditure of the group for that year. In preparing these financial statements. the members of the Board of Governors are required lo.. ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LINIITED (A company Ilmited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 select the most suitsble accounting policies and then apply them consistently., obseNe the methods and principles in the Charities SORP 2019 {FRS 1021". make judgments and estimates that are reasonable and prudent". slate whether applicable UK accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial slalements.. and prepare the financial statements on the going concern basis unless it Is inappropriate to presiirne that the charitable company will conb'nue in business. The members of the Board of Governors are responsible for keeping adequate accounting records that are sufficient lo show and explain the charitable company's transactions, disclose with reasonable accuracy at any lime the financial position of the charitable eompany and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITORS Each of the persons who is 8 trustee at the date of approval of thi$ report confirms that.. so far as they are aware. there is no relevant audit information of which the charity's auditor is unaware., and they have taken all steps that they ought to have taken a5 a trustee lo make themselve5 aware of any relevant audit information and to establish that the charity's auditor is aware of that information. A resolution proposing the re-appointment of Crowe U.K. LLP as auditor5 to the company will be put to the Annual General Meeting. The Trustees, annual report and the strategic report were approved on 24 March 2022 and signed on behalf of the Board of Trustee$ by= Mr A Harris (Chairman) Trustee Date.. 14 LOW ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST. MARTIN'S (NORTHWOODI PREPARATORY SCHOOL TRUST LIMITED Opinion We have audited the financial statements of St. Martin's (Northwoodl Preparatory School Trust Limited (the 'charitable company'l for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance sheet. the Statement of cash flows and the related notes, 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, ILJnited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. gwe a true and fair view of the slate of the charitable ¢ompany'5 affairs as al 31 August 2021 and of ils income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Piactice., and have been prepared in accordance with the requirements of the Companie5 Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalements section of our report. Vve are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethieal Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have tsblained Is sufficient and appropriate to provide a basis for our opinion. Conclu85ons relatlng to going concern In auditing the financial statements. we have concluded that the trustee's use of the going concem 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 charitable company's ability to continue as a going concern for a period of al least ￿e1ve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report Other information The trustees are responsible for the other information contained within the annual report. The other informalK)n comprises the information included in the annual report, other than the financial statements and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other information and, except lo the extent othe￿iSe explicitly slated in our report, we do not express any form ol assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other information 15 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 lo determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED IA company limited by guarantee) INDEPENDENT AUD￿OR's REPORT TO THE MEMBERS OF ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED misstatement of this other informatKin. we are required to report that f8et. We have nothing lo report in this regard. Opinion on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit." the information given in the Trustees, Report which includes the Directors, Report and the Strategic Report prepared for the purposes of company law, for the financi81 year for which the financial statements are prepared is consistent with the financial slalements., and the Strategic Report and Directors, Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In light of the knowledge and understanding of the eharilable company and their environment obtained in the course of the audit, we have not identified material mi5slatemenls in the strategic report or the directors, report included within the trustees. report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us lo report lo you if, in our opinion.. adequate and proper accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees. remuneration specified by law are not made., tsr we have not received all the information and explanations we require for our aLJdil'. or the trustees were not enlilled lo prepare the fi'nancial statements in accordance with the small eompanies regime and lake advantage of the small companies, exemptions in preparing the trustees, directors, report and from the fftquirement to prepare a strategic report. Responslbilities of Trustees As explained more fully in the Iruslees, responsibilities statement set out on page 7, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial slalemenls 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 misslatemenl, whether due lo fraud or error. In preparing the financial slatemenls. the trustees are responsible for assessing the charitable company's ability to 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 to liquidate the charitable company or lo cease operations. or have no realistic alternative bul to do so. Auditoes responsibilities for the audit of the financlal Statements Our objectives are to obtain reasonable assurance about whether the financial stalemenls as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's reFX)rt that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an aLJdit conducted in accordance with ISAS IUKI will always deleel a material misslatemenl when it exists. Misstalemenls 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. ST. MARTIN'S INORTHWOOD) PREPARATORY SCHOOL TRUST LIMITED IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST. MARTIN'S INORTHWOOD) PREPARATORY SCHOOL TRUST LIMITED Details of the extent to which the audit was considered capable of detecting irregularities. including fraud and non-compliance with laws and WLJlalions are set out below. A further description of OUT responsibilities for the audit of the financial statements is locatod on the Financial Reporting Council's website at.. www.frc.or .uklaudilorsres onsibililies. This description forms part of our auditor'5 report. Extent to which the audit was consldered capable of detecting irregularities, including fraud Irregularities, including fraud, are InStan￿S of non-compliance with laws and regu121ions. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due lo fraud or error, and discussed these be￿een our audit team tnembers. We then designed and performed audit procedures responsive lo those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, f￿Using on those laws and regulations that have a direct effect on the delerminalion of material amounts and disclosure5 in the financial stalemenls. The laws and regulations we considered in this context were the Companies Act 2006 and taxation legislation together with the Charities SORP {FRS 1021. We assessed the reqLtired compliance with these law5 and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the rinancial statements but compliance with which might be fundarnental to the charitable company's ability lo operate or lo avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education {Independent School Slandardsl Regulations 2014 and General Data Prole¢lion Regulation IGDPRI. Audrting standards limit the required audit procedures to identify non-compliance with these laws an regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence. if any. We identified the greatest risk of material impact on the financial statements from irregularities. including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance and Operations Committee about their own identification and assessment of the risks of irregularities, sample lesling on the posting of journals, reviewing accounting estimates for biases, reviewing any regulatory correspondence with the Charity Commission. Independent Schools Inspectorate, Ofsled and reading minutes of meetings of those charged with governance. Owing lo the inherent limitations of an audit. there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregulariliesl is from the events and transactions reflected in the financial slatemenls, the less likely the inherently limited procedLJres required by auditing stsndards would identify it. In addition, as with any audit, there remained a higher risk of non-deleclion of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected lo detect non-compliance with all laws and regulations. Use of our report This report is made solely lo the charitable company's members. as a body. in accordance with Chapter 3 of ST. MARTIN'S {NORTHWOODI PREPARATORY SCHOOL TRUST LIMITED IA company Ilmlted by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale lo the Charitab￿ company's members those matters we are required to slate 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. Andrew Thomas Senior Ststutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London Istatutory Auditor) Dale.. 12 April 2022 ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED IA ¢ornpany lirnited by guarantee STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 AUGUST 2021 Unrestricted funds 2021 Unr8slricted funds 2020 Note Income from: Donations and legacies Charitable activities Investments Totsl income 12,099 5,726,293 5,197 36,478 5.713,253 26.410 5 776 141 Expenditure on: Charitable aclivitses Totsl expenditure 5.330,848 5,699,111 5 330 848 5699 111 Net movement in funds 412 741 Total funds brought forward 11,560,006 11,482.976 Total funds carried forward 11972 747 11560006 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 16 to 24 form part of these financial statements. 13 ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED {A company limited by guarantee) REGISTERED NUMBER: 0709159 BALANCE SHEET AS AT 31 AUGUST 2021 2021 2020 Note Fixed assets Tangible assets 10 9,642,616 9,400, 154 9,642,616 9,400, 154 Current assets Debtors Cash at bank and in hand 1,522.373 3,917.011 1, 553,309 3.887,533 5,439,384 5,440, 842 CreditOTS.' amounts falling due within one year 12 {3.109.2531 (2,643.640) Net current assets 2,330,131 2. 797,202 Total assets less current liabilities Creditors.. amounts falling due after more than one year 11,972.747 12,f97,356 {637,350J Total net assets Charity funds Unrestricted funds 11,972.747 11,560,006 Total funds The Trustees acknowledge their ￿SponSibl11t1eS for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements were approved and authorised for issue by the Trustees on 24 March 2022 and signed on their behalf by.. Mr A Harri$ Trustee Dale.. 24 KfveLFI lolL The notes on pages 16 to 24 form part of these financial statements. ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED (A company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021 Note 2021 2020 Cash flows from operating actlvltles Net cash used in operating acb'vities 15 744,286 399.966 Cash flows from investing actlvltles Divi¢Jends, interests and rents from investments Pur¢hase of tsngible fixed assets 5,197 1565,7941 (187.338) Net cash used in invegtlng actlvities 1560,5971 1160,9281 Cash flows from financing activities Repayments of borrowing 1154,2111 (IT9,964) Net cash used in financing activities 1154,211} 1179,9641 Change in cash and cash equivalent$ in the year Cash and cash equivalents at the beginning of the year 29,478 3,887,533 59.074 3.828.459 Cash and Cash equivalents at the end of the year 16 The notes on pages 16 to 24 fomi part of these financial statements ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 General information The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 40, Moor Park Road, Northwood, Middlesex, HA6 2DJ. Accounting policies 2.1 Basis of preparation of financlal statements The financial statements have been prepared in accordance with the Charities SORP {FRS 1021 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to ¢harities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 and the Companies Act 2006. Sl. Martin's (Northwoodl Preparatory School Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise staled in the relevant accounting policy. No provision has been made for corporatson tax or deferred lax as the charty is a registered charity and therefore exempl. 2.2 Critical accountlng Judg¢m¢nts and sources of key estlmatlon uncertalnty In the application of the accounting policies, Trustee5 are required lo make judgement, eslimales, and assumptions about the carrying value of assets and liabilitie5 that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these eslimales. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period. or in the period of the revision and future periods if the revision affected current and future periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities al the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. The following accounting policies have been applied consistently in dealing wf(h items which are considered material in relation to the School's financial stalemenls. 2.3 Going concern As detailed in the Report of the Governors, the Governors have reviewed and ￿vISed the School's financial forecasting in highl of the Covid-19 pandemic, to lake into consideration the current economic climate and ils polenb.al impact. A number of scenarios were produced which considered the wider potential impact from Covid-19 on the School's key operations, cash position, sources of income and planned expenditure. Revised forecasts have been prepared together with cash-flows, based on the most likely expected outcome from these scenarios, with sensitivity ana5ysis on the key assumpb'ons. The cash flow modelling with sensitivity analysis indicates that the cash reseNes of the School are adequate to meet the charity's obligations as they fall due. Having regard lo the above, the current cash position, and the expected cash flow over the next 12- 24 months the Governors have a reasonable expectation that the School has adequate resources to continue ils activities for the foreseeable future and conside¥ that there were no material uncertainties over the School's financial viability. Accordingly, they continue to adopt the going concern basi5 in preparing the financial slalemenls as outlined in the Slalemenl of Governors, Responsibilities. ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 2A Income All school income is included in the statement of financial a¢tivitie5 when entitlement has passed to it, il is probable that the economic benefits associated with the transaction will flow lo the school anSocial security costs
Pension costs
Other employee benefits|**2021**
**£**
**3,185,633**
**319,556**
**630,631**
**10,978**|_2020_
_£_

_3,426,156_

_344,977_

_677,651_

_9,049_| |---|---|---| ||**4,146,798**|
_4,457,833_| Key management personnel comprised the senior leadership team. Aggregate employee benefits paid to key management personnel in the year totalled £699,075 (2020: £556,037). Total payments to the school’s defined contribution scheme for non-teaching staff in the year was £158,220 (2020: £161,458). Amounts payable at year end totalled £470 (2020: £22,875). The average number of persons employed by the Company during the year was as follows: |Teaching (including unqualified teaching and assistants
Administration
Domestic (Catering)
Estates (includes Cleaning)|**2021**
**No.**
**69**
**10**
**10**
**6**|_2020_
_No._

_71_

_11_

_10_

_5_| |---|---|---| ||**95**|
_97_| Page | 20 ST. MARTIN'S INORTHWOODI PREPARATORY SCHOOL TRUST LIMSTED IA company lirnited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2021 No. 2020 In the band £60,000- £69,999 In the band £70,000 - £79,999 In the band £80,000 - £89,999 In the band £110,000- £119,999 In the band £120,000- £129,999 10. Tanglble fixed assets Freehold buildings Motor Flxtures and Computer Plant vehicles flttlngs equipment Total Cost or valuation 11,584,395 317.395 34,742 797,865 194,440 12,928.837 Al 1 September 2020 Additions Disposa15 466,862 42.000 11,351 45,581 565,794 Al 31 Augu$t 2021 12.051,257 359,395 34,742 809,216 240.021 13,494.631 Depreciation Al 1 September 2020 Charge for the year On disposals Transfers between classes 2,706,717 179.485 178,037 28,919 34,742 500.846 82,023 108,341 3,528.683 32,905 323.332 At 31 August 2021 2,886.202 206,956 34,742 582,869 141,246 3,852,015 Net book value Al 31 August 2021 At 31 August 2020 11. Debtors 2021 2020 Trade debtors Prepayments and accrued income 1,423,086 99,287 1,495.603 57,706 ST. MARTIN'S INORTHWOOD) PREPARATORY SCHOOL TRUST LIMITED (A Company limited by guarantee) NOTES TO THE FINANCIAL STATEPdlENTS FOR THE YEAR ENDED 31 AUGUST 2021 12. Creditors: Amounts falllng due within one year 2021 2020 Bank loans 636,844 153. 705 Trade creditors Other laxalion and social seeurity Other creditors Fee deposits Advanced fees Accruals 135,298 80,422 65.239 284,250 1,860.048 47,152 118,215 87,144 85, Q64 272,0(X) 1, 809,571 117,947 13. Crgditors: Amounts falling due after more than one year 2021 2020 Bank loans A decision was reached by the Governors in the summer of 2021 that the Company should pay off the bank loan in full in September 2021. at the rollover dale, so the enlire bank loan is shown as due within one year of £636,84412020. £153.7051 and amounts due within 2-5 years is £Nil12020'. £637,350}. The bank loan is secured by a fixed charge over some of the company's freehold properties. 14. Flnan¢ial instruments 2021 2020 Flnanclal assets Financial assets measured at amortised cost (al 44 Flnanclal Ilabllltles Financial liabilities measured at amortised cost Ib} lal Financial assets include cash. trade and fee debtors. other debtors and accrued income. Ibl Financial liabilities include deposits, fees in advance, trade creditors and other creditors. ST. MARTIN'S {NORTHWOODI PREPARATORY SCHOOL TRUST LIMITED IA ¢ompany limited by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 15. Rgconciliation of net movement In fund$ to net cash flow from operatlng activities 2021 2020 Net income for the period {as per Statement of Financial Activities) Adjustments for: Depreciation charges Dividends. interests and rents from investments Loss on the disposal of fixed assets Decrease in debtois Increase in creditors Accrued (incomellexpen5es 323,332 {5.1971 329, 649 (26.410) 22.691 (50.380) 47,386 30.936 {17.526) Net cash provlded by operating activities 16. Analysls of cash and cash equivalents 2021 2020 Cash in hand 17. Analysis of changes in net debt At 1 Sgptgmber 2020 Cash flows At 31 August 2021 Cash al bank and in hand Debt due within 1 year Debt due after 1 year 3,887,533 29,478 1153,7051 1483,139) (637,3SOI 637,350 3.917.011 {636,844} 18. Related parties During the year famiSy members of key management were employed by the school on arm's length basis and received remuneration totalling £23.975.12020., £4,732) ST. MARTIN'S {NORTHWOODI PREPARATORY SCHOOL TRUST LIMITED IA Company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGIJST 2021 19. Pension commitments The School participates in the Teachers. Pension Scheme I'the TPS'I for ils teaching staff. The pension Charge for the year includes contributions payable to the TPS of £472,411 12020.. £516, 193} and at the year*nd £55,97012020- £62, 1881 was accrued in respect of contributions to this scheme. The TPS is an unfunded mulli*mployer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 las amended) and The Teachers, Pension Scheme Regulations 2014 las amended). Members eonlribute 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 rale is gel by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was preoared 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 16.4Vo lo 23.6.￿ from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.080/0 giving a lolal employer conlribulion rate of 23.680A. 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 sel by the Department for Education prior lo the ruling in the 'McCloudlSargeant case,. This case has required the ¢ourts to consider cases regarding the implemenlatson of the 2015 reforms lo Public Se￿1￿ 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 Iransilional provision5 introduced lo the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court's decision and has said il will engage fully with the Employment Tribunal a5 well as employer and member representatives lo agree how the discriminations will be remedied. The government announced on 4 February 2021 that il inleniis lo proceed with a deferred choice underpin under which members will be able lo choose either legacy or reforffled scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payab￿. The TPS is subject to a ¢ost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme ¢osts. 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 lo the ci)st cap mechanism following the Court of Appeal's ruling in the Mccloudlsargeanl case and until there is certainty about the value of pensions lo employees from April 2015 onwards. The pause was lifted in July 2020, and a consLJltats'on was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following the public consultation, the Government have accepted three key proposals fecommended by the Government Actuary, and are aiming lo implement these changes in lime for the 2020 valuations. 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 eap mechanism revision is completed il is not possible to conclude on any financial impact or future changes to the contribubon rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.