KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
(A Charitable Company Limited by Guarantee) REPORT AND CONSOLIDATED ACCOUNTS YEAR ENDED 31 AUGUST 2021
Company Registered Address: 68 Kings Road, Richmond, Surrey, TW10 6ES Company Registered No: 590559 Charity Registered No: 312669
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
The Governors are delighted to present their annual report incorporating the strategic report for the year ended 31 August 2021 under the Charities Act 2011, together with the audited accounts for the year, which are prepared to meet the requirements of a directors’ report and accounts for Companies Act purposes, the Trust Deed and the Charities SORP (FRS102).
The Governors of the School and the Directors of the trading subsidiary freely give their time and expertise to support the charity. None of the Governors receive remuneration or other benefit from their work with the charity. Any contractual relationship must be disclosed and notes of interest are retained in written form.
The School is fortunate to be supported by parents through the Friends of King’s House School and during the year the Friends held a number of events, which are always well attended. The Governors are grateful for their commitment and contribution to the School, which this year totaled £11,500 and was used to purchase indoor and outdoor furniture, music instruments, microscopes and speed gates.
REFERENCE AND ADMINISTRATIVE INFORMATION
The School is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 17 September 1957 (company number: 590559) and registered as a charity on 31 July 1964 (charity number: 312669).
King’s House School Enterprises Ltd was constituted as a body corporate limited by guarantee on 21 May 2010 (company number: 07261424).
The Directors of the charitable company are the Trustees for the purposes of charity law and are Governors of the School. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per Director of the charitable company.
The address of its registered office is 68 Kings Road, Richmond upon Thames, Surrey, TW10 6ES
The information included on pages 1 to 5 forms part of this report.
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
Governors, Officers and Advisers
The King’s House School Governors are the charity trustees of the King’s House School charity. They have all served in office throughout the year, except where indicated. Together with past Governors (who served in the year as indicated), they are:
| they are: | ||
|---|---|---|
| Occupation | Date of appointment | |
| David Barbour | Investment Manager | 19 November 2015 |
| Nicholas Collins | Lawyer | 23 June2015 (retired23 June2021) |
| Julian Davison | Private Equity | 2 August 2017 |
| Adrian Edwards | Management Consultant | 8 January2020 |
| Richard Gale | CompanyDirector | 11September 2021 |
| Jenny George | HRConsultant | 4 December 2018 |
| DrStephen Harrison | Head of PastoralCare,HarrowSchool | 27June2013 (retired23 June2021) |
| DrSarah Ann Hendry | DeputyHead,HamptonSchool | 27June2018 |
| ChristineLaverty (Chair) | CharteredAccountant | 19November 2015 |
| James Owen | Chartered Surveyor/FundManager(retired) | 6 July2017 |
| LisaPeacock | Barrister | 9 January2020 |
| Chris Pollitt | Houser Master,Harrow School | 23 June 2021 |
| Catherine Urch | Medical Practitioner | 23 June 2015 |
| Nick Watkins | Deputy Head, St Paul’s School | 29 October 2020 (retired 23 June 2021) |
| Richard Ward(Vice Chair) | CompanyDirector | 4 December 2018 |
| Paul Williams | Second Master,Epsom College | 21 March 2019 |
Whilst responsibility for the daily management of the School rests with the Head, Governors retain overall responsibility for all aspects of the School’s overreaching strategic direction and conduct. To assist in discharging this responsibility, the Governors have created sub-committees to deal with finance, development, staffing and educational and pastoral matters, as well as ad hoc groups when required.
Memberships of committees during the year ended 31 August 2021 and up to 2 December 2021 were:
Finance & Development Committee (FDC) Julian Davison (Chair) Nicholas Collins* Adrian Edwards Richard Gale Christine Laverty Richard Ward
Human Resources Committee
Jenny George (Chair) Sarah Ann Hendry Christine Laverty Paul Williams
Safeguarding Committee Nick Watkins (Chair)* Jenny George Lisa Peacock
Educational & Pastoral Committee (EPC)
Sarah Ann Hendry (Chair) Jenny George Dr Stephen Harrison* Katie Urch Chris Pollitt
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
GOVERNORS AND CHARITY TRUSTEES (continued)
Governors, Officers and Advisers (continued)
Health & Safety Committee
Nominations Committee
Nicholas Collins* Christine Laverty James Owen Richard Ward
Bursaries and Public Benefit Committee
Lisa Peacock (Chair) Katie Urch Paul Williams
- Retired
King’s House School Enterprises Ltd (KHSE) is a wholly owned subsidiary of King’s House School, incorporated to manage the School’s trading operations (principally lettings). The Directors of the Company are:
David Barbour Appointed 19/11/2015 Louis Mather Appointed 10/7/2018 Mark Silver (Chair: From 11/11/2019) Cindy Yendell Appointed: 11/06/2019
The Board of Governors is a self-appointed body, with a policy for selecting and recruiting new members, who are elected to the Board by existing Governors. Service on the Board is a maximum of two terms of four years. The same arrangement applies to KHSE.
KEY MANAGEMENT PERSONNEL
Head Mark Turner Deputy Head Martin Shore Head of Pastoral Care Alex Churcher Head of Junior Department Simon Gower Head of Nursery Jane O’Brien Bursar, Company Secretary and Clerk to John Loveland the Governors
The Head manages the day to day operation of the School through the Senior Management Team (SMT), which comprises the key management personnel listed above. The Bursar manages the day to day operation of the Enterprise Company through the Enterprise Manager.
Principal address of Charity Principal address of King’s House School Enterprises Ltd 68 Kings Road 68 Kings Road Richmond Upon Thames Richmond Upon Thames Surrey Surrey TW10 6ES TW10 6ES
Website: www.kingshouseschool.org
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
GOVERNORS AND CHARITY TRUSTEES (continued)
Governors, Officers and Advisers (continued)
| OUR ADVISERS | ||
|---|---|---|
| Auditors | Haysmacintyre LLP | 10 Queen Street Place, London EC4R 1AG |
| Bankers | Lloyds TSB Bank plc | 1st Floor, 39 Threadneedle Street, London, EC2R 8AU |
| Solicitors | Barlow Robbins Solicitors | The Oriel, Sydenham Road, Guildford, Surrey, GUI 3SR |
| Insurance Brokers | Hettle Andrews | 2 Brunswick Square, Birmingham, B1 2LP |
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
OBJECTS AND ACTIVITIES:
The Charitable Objects of the School are set out in its Trust Deed and the main activities undertaken to further the charity’s purposes for the public benefit are to carry on and develop King’s House School in Richmond, Surrey and any other school. This includes the provision of boarding and/or day schooling for children of either sex anywhere in the world. Ancillary to its main charitable purpose, the charity also makes its facilities, and particularly its playing fields, available to local residents, charitable organisations and schools.
Aims
Within these Objects, the School’s strategic aims as an educational charity for children are:
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To provide an environment where the pupils feel supported and safe, and where their welfare and safeguarding are paramount.
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To offer an education in which the pupils experience a high quality, broad and balanced curriculum, which engages and challenges them whilst developing their knowledge, understanding and skills across the areas of learning (linguistic, mathematical, scientific, technological, human and social, physical and aesthetic and creative education).
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To attract and retain pupils who will benefit from and contribute to the education that is on offer at King’s House. 4. To attract, support, retain and develop teaching and support staff of the highest calibre, who will enhance the provision to the pupils here.
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To build and maintain facilities which enhance the education and care offered by the School.
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To ensure that the School continues to be in a strong position financially, is efficiently run and is able to deliver on its aims whilst keeping the fees on an affordable footing.
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To enhance the reputation of King’s House School and to build stronger links with the wider community, including parents and alumni.
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To meet and, where appropriate exceed, all required standards for a high quality independent school.
The School uses Common Entrance results and senior school entry to monitor its success and the performance of the pupils remains a source of great satisfaction, particularly as the School is non-selective in the early years, taking pupils of all abilities into the Nursery and Reception years.
The School considers other measures of success, such as individual and team sporting achievements and achievements in performing arts, music, design technology and art. The extent to which parents are involved in school life is also monitored, as the Governors consider parental involvement as key to the continued success of the School.
Activities
The objectives reflect the educational aims and the ethos of the School and the importance of maintaining and enhancing its academic success. This objective is, however, set in the context of the broader goals set for the School and its pupils, and a wide range of extra-curricular activities is provided throughout the School.
In setting the objectives and planning activities, the Board and Senior Management Team have given careful consideration to the Charity Commission’s general guidance on public benefit and, in particular, to its supplementary public benefit guidance on charging for services.
To underline the value placed on continuity for families, a discount is offered to parents for third and subsequent siblings.
The School continues to develop its outreach initiatives, including bursary awards, and to maximise the use of its estates and sporting facilities by other school and community groups for the benefit of children of both sexes, as well as promoting sport in the community. The Bursaries and Public Benefit Committee review outreach initiatives annually, including bursary awards. A list of other schools and community clubs is maintained and details are logged on the Schools Together website.
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
OBJECTS AND ACTIVITIES (continued)
The School is an equal opportunities employer, committed to a working environment that is free from discrimination and will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.
The School is committed to safeguarding and promoting the welfare of the pupils and expects all staff and volunteers to share this commitment. Parents are given regular information about their children’s social and academic progress through parents evenings, in addition to the traditional end of term and year reports. Regular contact with parents is maintained throughout the year through informal contact and through the biweekly newsletter, website and social media platforms. All pupils have a Form Tutor who is responsible for their pastoral care and academic development. In addition, external speakers attended school to speak to the pupils about personal and internet safety.
The Bursary Policy, coupled with the continuing links with the Royal National Children’s Springboard Foundation, The School and Family Works and a group of schools in Rwanda (via RwandaAid), contribute to an extended reach of the School to provide both widened access to the education on offer and funds to support local, national and international educational initiatives. The School has developed links with a number of local state and independent schools, and community groups which benefit from the use of the School’s sporting facilities
Bursary Policy
It is important to the School that access to the education offered is not restricted to those who can afford the fees. It is the School’s belief that pupils benefit from learning within a diverse community and this is reflected in the provision of bursaries.
The Governors view bursary awards as important in helping to ensure children from families who would otherwise not be able to afford the fees, can access the education the School offers. Bursary Awards are available to all parents/guardians of children entering any year group from Year 3 up to Year 6 and are made at the discretion of the Governing Body on the basis of parental means or to relieve hardship where a pupil’s education and future prospects would otherwise be at risk (for example in the case of redundancy).
The School have appointed an independent company, Bursary Administration Limited, to assess applications, who then make recommendations for or against an award. The final decision on awards remains with the School.
Information about fee assistance through bursaries is available to all who apply to the School and is published on the website.
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
STRATEGIC REPORT
As in previous years, key objectives included:
To maintain the present low teacher: pupil ratio, which the School believes gives pupils the necessary time to develop academic, sporting, artistic and social skills.
Measurement is easy to assess from pupil and staff numbers.
Pupil achievements in academic, sporting, music, drama, and other activities support our belief in the benefits of maintaining the ratio.
The ratio remains low at just over 1:9.
To maintain the current high standards of academic achievement at Common Entrance and scholarship level. To identify and support appropriately the academic needs of the pupils.
The Common Entrance and scholarship results in Year 8 are a measure of success. The Year 8 cohort in 2021 achieved a total of 7 awards and scholarships over a good range of disciplines e.g. academic, sports and music and all gained places at their chosen senior schools.
Performance is measured through educational assessment tools which track individual pupil progress. Ongoing external subject reviews assess the quality of teaching.
To develop social and cultural awareness in our pupils through a programme of events to encourage greater social awareness and participation.
Pupils and their families are engaged in raising funds to continue the School’s support for the linked school and local children in Rwanda.
Other measures include assemblies, PSHE, external speakers and outreach activities through the pupils’ Charity Committee . The School also supported the NHS Charities Together, London’s Air Ambulance, as well as Jeans for Genes, Royal British Legion (Poppy Appeal), Red Cross (COVID crisis in India) and Skylarks.
Donations were also made to Anti-Slavery; Holocaust Educational Trust and the Alzheimer’s Society.
To encourage community access to the school’s facilities and greater involvement and support by the pupils and teachers in community activities.
In addition to the main School activity, the School continues to foster relationships with the community by hosting a number of local resident clubs and charity events in the school buildings and particularly at the sports ground, including the Riana Community Summer Activities.
It was our intention to continue hosting Maths Masterclasses, to which Year 6 pupils from neighbouring schools are invited. Members of the Royal Institute of Maths are invited and attend to provide the most valuable experiences for the pupils. Unfortunately, for this year the programme was cancelled due to Covid19 restrictions.
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
STRATEGIC REPORT (continued)
To look at ways of promoting sustainability.
The School was unable to host an Eco Day due to Covid-19 related restrictions, however, we continue to investigate ways to improve sustainability and reduce waste through the use of biodegradable food containers in the dining rooms and green bins for recycling food waste. The waste management/recycling partner used can process much of the waste – for example they have plastic, metal and glass recycling, anaerobic digesters, composting, gas to energy plants and refuse-derived fuel.
The catering contract was awarded to a third party as they were able to demonstrate reduced food waste in the schools they service with initiatives such as ‘no-waste day’ where dishes are made using waste ingredients, use of more seasonal fruit and vegetables and a new chiller cabinet which ensures that uneaten prepared fruit and yogurts can be saved for the next day.
To contribute to the wider community by enabling participation in a range of sporting, recreational and educational activities.
| ctivities. | |
|---|---|
| As well as the internal awards and external grants, the School has focused on increasing its public benefit and community outreach work at the sports grounds, as that is where the biggest impact on the community can be achieved. A number of local state schools and community clubs have regular access to the facilities, either at a substantially discounted rate or without any charge at all. Community groups and charities have also held meetings and fundraising events without charge. |
During 2020 – 2021: |
| INTERNAL AWARDS 7 pupils received means-testedbursary/hardship awards: £20,245 |
|
| 7 pupils receivedSibling & Staff discounts: £17,484 |
|
| EXTERNAL GRANTS Agrantwas made toRNCSF(see below) to support disadvantaged children in assisted boarding places: £20,000 |
|
| Agrantwas made toThe School & Family Works | |
| social enterprise (see below) to fund one multi-family | |
| therapy group to support local children with | |
| complex needs to promote their success at school: £20,000 |
|
Continuance of charitable support.
The School continues to support the Royal National Children’s Springboard Foundation (RNCSF), through parent voluntary contributions of £5,570 and a direct donation of £14,430, in its mission ‘to improve and transform the lives of young, disadvantaged children by supporting their educational opportunities in both state and independent boarding schools. By doing this, we seek to improve their educational attainment, employability and aspirations’.
The School also supports The School and Family Works charity in their aim to ‘offer flexible, therapeutic, community based services that enable schools and families to work together to help vulnerable children achieve educational success’ via their “transforming lives initiative”.
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
STRATEGIC REPORT (continued)
Achievements and Performance
Pupil numbers
Educational activities for boys from the ages of 4 to 13 are carried out in the Junior Department and Senior Department buildings. In addition, the Nursery premises provide pre-school facilities for boys and girls aged 3 and 4. The Junior and Senior Departments averaged 389 (2020: 393) pupils. Numbers in the Nursery averaged 50 (2020: 59). Although Reception 2021 pupil numbers are lower than usual, we are confident that Reception 2022 intake will be in line with previous years.
Academic
We resolve to keep up the academic, sporting and artistic standards for which the School has become known, and continue the development of our premises to meet the needs of our pupils moving forward.
----- Start of picture text -----
The chart (left) shows the
Destination of pupils: day schools mix of senior day schools in
2020 and 2021. At the end
12
of 2021, 5 pupils moved on
10 to Hampton and 5 to St
8 Paul’s.
6 Of the Year 8 cohort, 16
moved on to day senior
4
schools in Autumn 2021,
2 and 17 selected boarding
0 schools.
A total of 7 awards were
achieved:
Sport: 4
Academic: 2
Music: 1
2020 2021
----- End of picture text -----
Figure 1: Comparison of senior schools (DAY) 2020:2021
Boarding choices also vary year by year. In 2021, 17 pupils boarded including 6 to Epsom, 3 to Charterhouse, 3 to Harrow and 1 to Eton.
As a non-selective school, we are proud that all our Year 8 boys gained places at their chosen school, reflecting the School’s commitment to a broad curriculum which allows each pupil to achieve their potential.
----- Start of picture text -----
Destination of pupils: boarding
10
8
6
4
2
0
2020 2021
----- End of picture text -----
Figure 2: Comparison of senior schools (BOARDING) 2020:2021
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
STRATEGIC REPORT (continued)
Financial Review
The main source of income for the School is through fee income charged for the provision of education.
In the 2020 – 2021 school year, the fees charged ranged from £2,460 for 5 mornings in Nursery, £4,510 for Reception and £5,850 in the Senior Department.
The main expenditure of the School is that of staff salaries. Staff are key to the ongoing success of the School and the School, therefore, continues to invest in the highest standard of teaching and administrative staff. The School is also committed to ensuring continued professional development for all staff.
Premises costs are the second major expense of the School and, this year, further renovation work was undertaken both at the sports ground and the teaching sites in Richmond.
The financial statements show that the School is maintaining a sound financial base. The table below summarises the financial data:
| Accounts Summary | Year ending | Year ending | |
|---|---|---|---|
| August 2021 | August 2020 | ||
| Fee Income | £6,799,704 | £6,355,964 | The parents have the peace |
| Other Income | £368,032 | £392,237 | of mind of knowing that the |
| Total income | £7,167,736 | £6,748,201 | Board is continuing its |
| Staff costs Other costs Total Expenditure Net incoming/(outgoing) resources on School activities |
£4,212,259 £2,657,363 £6,869,622 £298,114 |
4,254,905 2,602,363 £6,857,268 (109,067) |
strategy of deploying all net incoming resources to investing in the educational purposes and fabric of all the school sites, in line with |
| Trading Subsidiary | the School’s Objects. | ||
| Income generated through lettings | £579,886 | £578,483 | |
| Expenditure | £(339,916) | (424,085) | |
| Enterprise Company’s operating profit | £239,970 | 154,398 | |
| Combined Surplus for the year | £538,084 | £45,331 |
As an educational charity, the School enjoys tax exemption on its educational activities and on its investment income and gains, provided these are applied for charitable aims. The School is entitled to an 80% reduction in business rates on the property occupied for charitable purposes. The financial benefits received from these tax exemptions are all applied for educational purposes and indirectly help maintain the bursary policies and public benefit activities.
However, as an educational charity, the School is unable to reclaim input VAT on costs, as it is exempt for VAT purposes. The School also pays tax as an employer through National Insurance contributions.
In the last year with Covid-19, KHS has seen a short-term impact on its financial performance with an £81,060 fee income reduction relating to the Spring Term school closure period. The School worked hard to mitigate these revenue losses with tactical cost savings and making use of Government provided financial support arrangements, resulting in a small overall surplus for this financial year.
Future Plans
Due to Covid-19 restrictions, the Board and SMT Governors delayed their annual vision day from March to September 2021, held at the sports ground to review the present position of the School in relation to the Strategic Development Plan (SDP) and assess potential threats, weaknesses, opportunities and strengths. The Board has ratified the intention to continue the current strategies of maintaining the School’s position in a competitive market by investing to provide a high quality education for the pupils. Achieving a high standard of academic results is a constant aim, whilst maintaining the breadth and depth of the education provided.
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
STRATEGIC REPORT (continued)
Future Plans (continued)
The major development project for the Senior Department remains a key priority for the Board and we continue to look at options to provide a solution that delivers a modern educational environment for the foreseeable future. Following a refusal of the original planning application in June 2020, an extensive re-evaluation and consultation process was undertaken this year and a revised scheme was submitted in May 2021. The application seeks to replace several poor quality school buildings with a state of the art music, arts and teaching block, supported by a creative landscaping plan and some refurbishment works to the existing buildings.
We see the key benefits of this scheme as follows:
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Better quality learning and teaching environments for pupils and staff and for those community groups who benefit from being able to use the School.
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Greatly enhanced landscape around the buildings, providing additional native wildflower, shrub and tree planting, as well as flexible play space and outdoor learning environments.
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Rationalised and improved accommodation, easier to navigate, more accessible and inclusive for a wider range of users.
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Buildings constructed to rigorous sustainability criteria and standards, resulting in highly efficient and sustainable buildings on site and contributing to reducing carbon use.
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Heritage benefits, through the removal of unsightly buildings that have been added in a piecemeal way since the main Victorian buildings were constructed.
An extension to the lease of the sports grounds was completed in March 2020 to bring it back up to a 50-year lease. The profile of the sports ground is to be increased through a programme of refurbishment and re-branding, in particular to raise the recognition of the link with the School, through the change of name to ‘King’s House School Sports Ground’. New signage and advertising across the site have been installed, as well as the re-launch of the website. The School has also built a “Gen2 ATP” multi-use surface primarily for Hockey, Netball and Tennis, new cricket nets and re-surfaced the extended car park. These new facilities will be for School and community use.
The School has also taken into account the requests from parents for extended ‘wrap around’ care and currently provides a Breakfast Club starting at 7.30am and after-school care until between 5.15pm and 6.00pm.
Maintaining and, where necessary, developing the fabric and facilities of the School are central to its strategy. There is a programme of planned maintenance and investment in the ICT network. Chromebooks were introduced to Year 7 in October 2019 and, with the success seen during the period of lockdown/remote learning, over the summer the School invested in additional Chromebook devices for Year 6 and Year 8.
We have also taken the opportunity to refurbish the Design Technology classrooms in the Senior Department and one of our larger classrooms in the Junior Department, into a modern and practical workspace.
The School has decided to increase tuition fees for the Academic year 2021-2022 following a year where fees were held flat and credits were issued for actual costs saved during the period when school was closed to most pupils. This is reflective of the increased costs to operate in a Covid secure manner and removal of Government support. Fortunately, pupil numbers, overall, remain good, but the risk of further disruption both to the pupils’ education or operation of the sports ground, has made the School carefully consider any discretionary projects.
However, with strong cash reserves and minimal debt, the Governors are confident that the School will have sufficient cash resources to continue to operate successfully in the current environment.
Risk Management
The Governors have a risk management strategy which comprises:
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An annual review of the principal risks and uncertainties that the School faces;
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The establishment of policies, systems and procedures to mitigate those risks identified in the annual review;
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The implementation of procedures designed to minimise or manage any potential impact on the School should
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
those risks materialise.
STRATEGIC REPORT (continued)
Principal Risks
The Governors have considered the principal risks and uncertainties facing the School. The Risk Register is reviewed by Governors in full once a year, and is considered at each Governor meeting. An example of key risks identified during the year is as follows:
| Risk | Description / update |
| COVID-19 | Pandemic resulting in School or year group closure and transition to remote learning. All teaching staff have been issued with a School device to enable remote teaching and significant investment undertaken to increase the amount of pupil devices. Increased pressure on staff and cost base to operate in a Covid-secure way. Requests from parents for additional finance assistance via the Bursary Fund hardship provision and limited fee increases. Economic recession driving affordability issues for parents. |
| Political and Tax Risks |
BREXIT uncertainty impacting on pupil numbers – the latest ISC census results highlight a downward trend in pupils from European countries and within the London region Risk of losing Charitable status, impact of VAT being introduced on school fees and removal of Business rates charitable relief (80%). Increasing costs, primarily driven by the increases in Teachers Pension provision putting additional pressure on fee increases and long term affordability. |
| Development works |
Sports Ground new multi-use facilities, car park extension and clubhouse maintenance. Affordability of the Senior Department Development project. |
| Technology | Increasing cyber-attacks across the Sector. Ransomware Infection from external hacks. Supporting Remote School following COVID-19 forced closure. |
The main funding of the School is through fee income, and therefore, uncertainties over future pupil numbers are always a factor for consideration. In order to minimise this risk, the School has invested significantly in the marketing “building blocks” required to improve pupil numbers and develop the brand, through the website, social media platforms and targeted advertising campaigns. The traditional method of magazine advertising and mail drops are not considered to be productive and have been discontinued, except for one or two carefully chosen publications. A full time Marketing and Communications specialist is now taking this initial work forward.
The changing political and economic landscape is closely followed throughout the year, particularly in relation to a suggested imposition of VAT on school fees and the growing hostility towards independent schools by some political parties. Members of the Senior Management Team and Governors attend seminars and briefings throughout the year to keep abreast of industry issues.
We have also undertaken a strategic review of the impact of the opening of a local private girls’ nursery on the number of girls registering and continuing at our Nursery. We remain committed to providing a co-ed Nursery and are in the process of establishing links with other local schools for the girls to move on to.
The School participates in a number of industry surveys to assist with setting fees and salaries. In addition, the School surveys parents and staff regularly, and pupil feedback is obtained through a variety of Pupil Voice groups. These surveys are reviewed by the Finance and Staffing Committees to inform the Strategic Development Plan and assist in budget setting.
The Governors have ensured that full insurance is in place to mitigate financial risk. The increasing risk of cyber-attack has been assessed and additional insurance has been put into effect to mitigate the potential impact of such attacks. Training
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KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
has been provided to all staff to raise awareness of the potential cyber risks both at school and at home.
STRATEGIC REPORT (continued)
The School works hard to ensure that debtors are well managed and the Finance Committee reviews outstanding debts on a termly basis. The School offers the option for parents to pay fees in advance to support the cash flow.
Through the Health and Safety Committee, risks to staff, pupils and visitors are considered. The Health and Safety committee reviews all incident reports and considers the reports from independent specialists engaged to undertake health and safety, fire and security audits of the School premises. This year a health and safety audit was commissioned by the School through an independent consultancy; findings and actions are were addressed during this academic year.
The Safeguarding Governors undertake termly reviews to ensure that staff are familiar with all safeguarding practices and procedures and have been adequately trained, and review the termly Complaints Report.
Compliance issues are considered by each sub-committee according to its terms of reference.
POLICIES
Investment Policy
The Governors believe that investment in development of the School’s facilities is a key priority and, accordingly, make limited external investments. The School continues to monitor the market value of its properties in relation to their book value. The School’s bankers hold a charge in the form of a first legal mortgage over certain of the School’s land and buildings.
Policies & Procedures
The School is grateful for Governors’ support in areas of Child Protection and Safeguarding. Appropriate Safer Recruiting training has been undertaken by members of the Governing Body, in order to help in areas of recruitment and to meet current regulatory and inspection guidelines. All Governors have received training in Safeguarding Children.
The School’s Compliance Officer ensures that all regulatory policies are kept up to date, and these and other Policies are reviewed internally and externally during the year as appropriate.
Reserves
The Board regularly reviews the General Fund and the designated funds to ensure that they are at appropriate levels. Two designated funds are set aside and built up each year. The Property Fund has decreased to £5,782,406. The Bursary Fund has increased in 2021 to £75,404 after a transfer to it of £60,000 and awards made of £57,835. The General Fund stood at £3,996,589 at year end.
Transfers are made to the Property Fund when there are surplus funds available to reflect the reinvestment of the School’s surpluses. In common with other independent schools, the Board has invested substantial sums into new School buildings in recent years and has a continuing programme of refurbishment, redevelopment and investment to maintain excellent teaching facilities for our pupils.
The purpose of the Bursary Fund is to offer assistance to boys who may benefit from independent education and to help existing parents who may suffer sudden financial difficulties. Additionally, the charity plans to continue developing our outreach initiatives, and to draw from the Bursary fund to support charities that are focused on improving the lives of young disadvantaged children.
The Board is comfortable that the current level of free reserves of £2,548,635 is sufficient to meet the operating requirements of the School and is equivalent to approximately four months’ expenditure. However, given the increasingly uncertain times, the Board have initiated a project to determine both a minimum and target level of free reserves for the School.
The Board considers that, given the strength of the charity’s balance sheet, the stable cash flow from full student rolls, the bank facility that can be called upon if the need arises and its continuing popularity, the School has sufficient reserves to continue as a going concern in the future.
14
KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
STRATEGIC REPORT (continued)
Fundraising
The School is not registered with the Fundraising Regulator and has not engaged in professional fundraising during the year. Any fundraising activities in aid of charities supported by the School and the Pupil’s Charity Committee, are notified to parents during the year through the biweekly newsletter, which is emailed to parents. There were no complaints received during the year and the School has robust policies in place regarding vulnerable people and treating donors fairly.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
The School is governed by the charitable Trust Deed dating from 1957 and last amended in 2009. The Articles of Association were amended and updated in December 2018 and registered at both Companies House and the Charity Commission.
Recruitment and Training of Governors
The Governors are elected at a full Governing Body meeting. Governors are appointed by the Board for two terms of 4 years.
Procedures are in place to identify and recruit suitable individuals to provide strength and balance to the Board. Key areas of expertise considered are education, finance, child welfare, legal, property and human resources.
On appointment, Governors are inducted into the workings of the Charity, and briefed on their legal obligations under charity and company law. They are provided with a copy of the charity’s Memorandum and Articles of Association, the Board Structure, committees and decision making process.
New Governors receive the current strategic development plan and are briefed on recent financial and academic performance of the School and Trading Subsidiary. Governors are encouraged to attend, and do attend, events at the School, in-School training sessions and external Seminars held by the Association of Governing Bodies of Independent Schools (AGBIS), the Independent School’s Bursars Association (ISBA) and other professional bodies, including haysmacintyre and accredited Child Protection training. They have access to a variety of publications relating to Governance and developments on education, which are circulated to all members of the Governing Body.
Organisational Management
As trustees of the Charity, Governors determine the Policy of the School, and are legally responsible for the overall management and control of King’s House School. Day to day management is delegated to the Senior Management Team.
The Governors meet at least once each term, and will meet more frequently if necessary. The Sub-Committee structure enables Governors to ensure that the School is being effectively managed, and that approved policies are being followed.
15
KING’S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST 2021
STRATEGIC REPORT (continued)
| Sub Committee | What it does | |
|---|---|---|
| Bursaries and Public Benefit Committee | Meets twice a year to review the School’s bursary and public benefit provision | |
| and make recommendations for the following year. | ||
| Education & Pastoral Committee (EPC) | Meets each term to review the School’s academic achievements and pastoral | |
| care. | ||
| Finance & Development Committee (FDC) | Meets each term to review the financial performance of the School. | |
| Approves the annual budget. | ||
| Reviews the audited accounts and annual report for approval by the Board. | ||
| Reviews development projects and makes recommendations to the Board | ||
| based on the School’s Strategic Development Plan. | ||
| Reviews the Risk Register annually, and assesses risks termly. | ||
| Human Resources Committee (HRC) | Meets each term to review terms and conditions of employment (including | |
| remuneration) of all staff including key personnel. | ||
| Provides an alternative forum for personnel issues outside the usual | ||
| management procedures. | ||
| Health & Safety Committee (HSC) | Meets each term to review issues relating to health, safety and welfare of | |
| pupils, staff and visitors. | ||
| Reviews policies and ensures procedures are effective. | ||
| Nominations Committee (NC) | Meets annually to assess the Governors’ self-evaluation questionnaires. | |
| Assesses performance against the Code of Governance Register. | ||
| Reviews Governors’ skills matrix and plans recruitment of Governors. | ||
| Safeguarding Committee | Meets each term to review all safeguarding issues and policies and Single | |
| Central Register. Ensures that all staff are recruited in accordance with the Safer | ||
| Recruitment Policy. | ||
| Ensures that Safeguarding matters are effectively dealt with. | ||
| Conducts audits to ensure all staff are aware of Safeguarding procedures. |
Related parties
None of the Governors receive remuneration or other benefit from their work with the School. Any contractual relationship must be disclosed and notes of interest are retained in written form.
Many of the Governors are parents of children who attended the School, however, it is a Board Policy that no current parents are recruited to join the Board. The School employed two individuals who are related to the Chair of Governors, however the Chair has no influence over the recruitment or remuneration of the members of staff.
As a Company limited by guarantee, the School has set up a Register of Persons with Significant Control. The company knows or has reasonable cause to believe that there is no registrable person or registrable relevant legal entity in relation to the company.
The School incorporated King’s House School Enterprises Ltd, a wholly owned subsidiary company, to manage the lettings of the various School properties, most significantly the King’s House Sports Ground, the leasehold of which was acquired in 2010 and was extended in 2020. The Enterprise Board comprises a minimum of one Governors of King’s House School and at least two independent Directors. The Board meets termly to review the Enterprise operation and financial performance, and makes recommendations to the School Board through the FDC for development of the facilities. The Head and the Bursar attend all meetings of the Enterprise Board. This subsidiary’s mission is to maximise income for the School to mitigate the costs of running the grounds, and the Enterprise Company accounts are consolidated into the School’s Annual Accounts.
King’s House School Enterprises Limited has recorded the School as a Person with Significant Control.
Pay policy for senior staff
The School operates banded salary ranges for all teaching staff, including senior staff. The banded ranges are benchmarked against other independent schools which are registered with ISC. Non-teaching senior staff salary levels are compared to other appropriate benchmarks. This allows the School to remain an attractive employer in the independent school sector.
The bands are reviewed annually and generally an inflationary increase is applied. This is dependent upon the financial success of the charity and also increases being offered in similar schools.
16
KING'S HOUSE SCHOOL TRUST (RICHMOND) LTD ANNUAL REPORT AND ACCOUNTS (continued) YEAR ENDED 31 AUGUST2021 GOVERNORS. RESPONsIBILlEs IN RELATION TO THE FIP4ANCIAL STATEMENTS The Governors (who are also directors of the charitable company for the purposes of company lawl are responsible for preparing the Governors, Report and the financial statements in accordance with applicable lèw and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Accounting Practice). including the Charities SORP and Financial Reporting Standard 102. Company13w requires the diiectors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resDurce5 and application of resource5, including the income and expenditure of the Charity and Group for that period. In preparing these financial staternents. the trustees are required to.. Selett Suitable accountin8 policies and apply them consistently.- Ob5erye the methods and principles in the Chaiitres SORP IFRS 1021," Makejudgements and estimates that are reasonable and prudent,. State whether applicable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements- and Prepare the accounts on the going concem basis, unless it is inappropriate to assume that the company will continue in operation. The trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy at any tirne, the financial position of the Charity and Group and enable them to ensure thèt the financial statements comply with the Companies Act 2(X)6. They are 3150 responsible for safeguarding the assets of the Charity and hence for taking reasonable Steps forthe preventTon and detection of fraud and other irregularities. As directors, we also confirm that there is no relevant audit information of which the companws auditors are unaware and we have made all necessary enqutrie5 and taken such steps that we ought to. to ensure that we become aware of any relevant audit information and we confirm that the Chariws auditors have been made aware of such information. This Annual Report, which incorporates the Strategic Report. was approved by the Board of Governors of Kings HoLtse School on 2 0ecÈmber 2021 and signed on its behalf by= C Laverty Chair of Governors 17
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND GOVERNORS OF
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
Opinion
We have audited the financial statements of King’s House School Trust (Richmond) Limited for the year ended 31 August 2021 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheet, the Group Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
-
give a true and fair view of the state of the group and parent charitable company’s affairs as at 31 August 2021 and of the group and parent charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
- In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Trustees’ Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.
18
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND GOVERNORS OF
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the group and parent charitable company; or
-
the group and parent charitable company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees for the financial statements
As explained more fully in the trustees’ responsibilities statement set out on pages 17, the trustees (who are also the directors of the group and parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Based on our understanding of the group and parent charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to employment law, safeguarding regulations and Charity and Company law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Charities Act 2011 and Charities SORP.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:
-
Inspecting minutes of Trustees’ meetings;
-
Reviewing the latest Independent Schools Inspectorate (ISI) reports;
-
Inspecting correspondence with regulators and tax authorities;
-
Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
-
Evaluating management’s controls designed to prevent and detect irregularities;
-
Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
-
Challenging assumptions and judgements made by management in their critical accounting estimates. These related to depreciation and bad debt provisions.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report
19
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND GOVERNORS OF
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
…………………………….. Kathryn Burton (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors Date: 14 December 2021
10 Queen Street Place London EC4R 1AG
20
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account)
FOR THE YEAR ENDED 31 AUGUST 2021
| Unrestricted funds | Unrestricted funds | 2021 | 2020 | ||
|---|---|---|---|---|---|
| General | Designated | Total | Total | ||
| Notes | £ | £ | £ | £ | |
| INCOME FROM | |||||
| Charitable activities | |||||
| School fees receivable | 2 | 6,819,949 | (20,245) | 6,799,704 | 6,355,964 |
| Other income | 3 | 322,252 | - | 322,252 | 346,596 |
| Trading activities | 4 | 611,915 | - | 611,915 | 597,667 |
| Investment income | 5 | 2,101 | - | 2,101 | 21,033 |
| Donations | 6 | 11,650 | - | 11,650 | 5,424 |
| --------------------- | ---------------- | --------------------- | --------------------- | ||
| Total income | 7,767,867 | (20,245) | 7,747,622 | 7,326,684 | |
| --------------------- | ----------------- | ---------------------- | ---------------------- | ||
| EXPENDITURE ON | |||||
| Raising funds | 7 | 247,812 | - | 247,812 | 258,821 |
| Charitable activities | |||||
| Education and grant making | 7 | 6,924,136 | 37,590 | 6,961,726 | 7,022,532 |
| ---------------------- | --------------------- | ---------------------- | ---------------------- | ||
| Total expenditure | 7,171,948 | 37,590 | 7,209,538 | 7,281,353 | |
| ---------------------- | -------------------- | ---------------------- | ---------------------- | ||
| Net income before transfer | 595,919 | (57,835) | 538,084 | 45,331 | |
| Transfers | 17 | (14,687) | 14,687 | - | - |
| ----------------------- | ------------------------ | ----------------------- | ----------------------- | ||
| Net income | 581,232 | (43,148) | 538,084 | 45,331 | |
| Balance brought forward | 3,415,357 | 5,900,958 | 9,316,315 | 9,270,984 | |
| ------------------------ | ------------------------ | ------------------------ | ------------------------ | ||
| Balance carried forward | 17 | 3,996,589 | 5,857,810 | 9,854,399 | 9,316,315 |
| ============ | ============ | ============ | ============ |
All activities are continuing.
There were no recognised gains or losses other than those shown in the above Statement of Financial Activities.
The Statement of Financial Activities for the comparative period is presented in note 22.
21
KING'S HOUSE SCHOOL TRUST IRICHMONDI LIMrrED CONSOLIDATED AND CHARrtY BALANCE SHEET Re8i5tered Company 140. 590559 ASAT31AUGUST2021 2021 2020 Group School Group School Notes INVESTMENTS li 1,000 TANGIBLE FIXEO ASSETS io 7,230,360 7.215,290 6.630,041 6.612.160 CURRENT ASSErs Stocks Debtors Cash at bank and in hand 12,369 339,194 4,664,165 12 13 329.233 5.059.085 282.374 4,807,475 276,336 4.510,318 5.388,318 5.089.849 5.015.728 4,786.654 CREDITORS.- amounts due wlthin one year 14 11,612,604) 11,589,3861 11.105,1771 11.058,8761 NET CURRENT ASSETS 3,775.714 3,5.463 3,910,551 3,727,778 TOTAL ASSETS LESS CURRENT LIABILITIES 11.IK)6.074 10.716.753 10.540.592 10,340,938 CREDITORS: amounts due after one year 15 11.151,6751 11.151.675) 11.224,2771 11.224,2771 NET ASSETS 9,854,399 9,565.078 9,316.315 9,116,661 REPRESEPITED BY: Unrestricted Funds Gener31 Non charitable trading funds 3,707,268 289.321 3,707,268 3,215,703 199,654 3,215,703 li 17 17 3.996.589 5.857,810 3,707.268 5.857,810 3,415.357 5.9LM).958 3,215.703 S.9,958 DesiEnated 9,854.399 9,565.078 9,316.315 9,116.661 Kin¥s House School Trust (Richmond) Limited has tsken the exemption from presenting its unconsolidated statement of financial activities under section 408 of the Companies Att 2W6. The net movement in fund5 of the Charity was a deficit of £448,41712020.' surplus £84.661. The financial statements were approved and authorised for issue by the Board on 2 December 2021 and signed on its behalf by.. C Lavertv The accompanying notes on pages 24- 36 form part of these financial statements.
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED 31 AUGUST 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Cash flows from operating activities | |||
| Net income | 538,084 | 45,331 | |
| Interest received | (2,101) | (21,033) | |
| Interest payable | 4,110 | 6,568 | |
| Depreciation charge | 285,915 | 299,481 | |
| Loss on disposal of fixed assets | 34,914 | 326,408 | |
| Decrease in debtors | 9,961 | 53,442 | |
| Decrease/(increase) in stocks | 12,369 | (1,538) | |
| Increase/(decrease) in creditors | 537,922 | (110,461) | |
| ---------------------- | ---------------------- | ||
| Net cash provided by operating activities | 1,421,174 | 598,198 | |
| Cash flows from investing activities | |||
| Purchase of tangible fixed assets | (921,148) | (330,192) | |
| Investment income | 2,101 | 21,033 | |
| ---------------------- | ---------------------- | ||
| Net cash used in investing activities | (919,047) | (309,159) | |
| Cash flows from financing activities | |||
| Repayment of loan | (103,097) | (101,227) | |
| Interest paid | (4,110) | (6,568) | |
| ---------------------- | ---------------------- | ||
| Net cash used in by financing activities | (107,207) | (107,795) | |
| Net movement in cash and cash equivalents | 394,920 | 181,244 | |
| Cash and cash equivalents at the beginning of the year | 4,664,165 | 4,482,921 | |
| ----------------------- | ------------------------ | ||
| Cash and cash equivalents at the end of the period | 13 | 5,059,085 | 4,664,165 |
| ============ | ============ | ||
| Analysis of cash and cash equivalents | At 31 August | At 31 August | |
| 2021 | 2020 | ||
| £ | £ | ||
| Cash at bank | 13 | 5,059,085 | 4,664,165 |
| ------------------------ | ------------------------ | ||
| 5,059,085 | 4,664,165 | ||
| ============ | ============ | ||
| Analysis of changes in net debt | |||
| At start of year | Cash flows | At end of year | |
| £ | £ | £ | |
| Cash at bank | 4,664,165 | 394,920 | 5,059,085 |
| Loans | (259,898) | 103,097 | (156,801) |
| ------------------------ | ------------------------ | ------------------------ | |
| Net debt | 4,404,267 | 498,017 | 4,902,284 |
| ============ | ============ | ============ |
The accompanying notes on pages 24 - 36 form part of these financial statements.
23
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 AUGUST 2021
1. ACCOUNTING POLICIES
Accounting convention
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK (FRS102), the Companies Act 2006 and the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019). Figures are presented in sterling and rounded to the nearest pound. The Charity is a Public Benefit Entity as defined by FRS102.
The accounts are drawn up on the historical cost basis of accounting, as modified by the revaluation of investments.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the accounting policies, Governors are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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 Governors, the only assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are depreciation and bad debt provisions.
1.1 Consolidation
The accounts consolidate the results of the Trust and King’s House School Enterprises Limited, a separately registered and incorporated company, for the year ended 31 August 2021. King’s House School Trust (Richmond) Limited has taken the exemption from presenting its unconsolidated statement of financial activities under section 408 of the Companies Act 2006.
1.2 Going Concern
The Governors consider that there are no material uncertainties regarding the charity’s ability to continue as a going concern. The Governors have reviewed budgets and associated cash flow forecasts in light of the global pandemic and consider there to be no material uncertainties about the charity’s ability to continue as a going concern.
1.3 School fees
Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances and other remissions granted by the School, but include contributions received from Designated Funds for bursaries and other grants. Fees received in advance of education to be provided in future years under an Advance Fee Payments Scheme contract are held as interest-bearing liabilities until either taken to income in the term when used or else refunded.
1.4 Investment income
Investment income includes interest on bank balances, which are accounted for on an accruals basis.
1.5 Donations income
Donations are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable. Donations for purposes restricted by the wishes of the donor are taken to “restricted funds” where these wishes are legally binding on the Trustees.
24
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
1. ACCOUNTING POLICIES (continued)
1.6 Expenditure
Expenditure is accounted for on an accruals basis.
Trading costs comprise expenditure incurred by King’s House School Enterprises Limited in the normal course of business.
Finance costs comprise interest payable on the School’s borrowings and associated charges incurred.
Charitable activities costs represent costs directly associated with the provision of education and related support costs, including governance costs.
Governance costs comprise the costs of running the Charity, including strategic planning for its future development, external audit, any legal advice for the School’s Governors, and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.
1.7 Fixed assets
Depreciation is provided on freehold buildings over fifty years after allowing for the residual value of the property.
Long leasehold property is depreciated over the remaining period of the leases and after carrying out appropriate impairment reviews.
Depreciation is provided on other fixed assets to write off their cost over their estimated useful lives at the following rates:
Furniture, fittings and equipment - 10% on cost Microcomputers and equipment - 33 1/3% on cost Motor vehicles - 25% on cost
1.8 Investments
Investments, comprising wholly owned subsidiary, is valued at cost less provision for impairment.
1.9 Stock
Stocks are valued at the lower of cost and net realisable value, after taking due consideration of slow moving and obsolete items.
1.10 Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.11 Creditors and provision
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
1.12 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value. Cash is measured at fair value through the statement of financial activities.
25
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
1. ACCOUNTING POLICIES (continued)
1.13 Fund accounting
Property Fund
Where General Funds are surplus to requirements, transfers are made to the Designated Funds to build up a Property Fund. The purpose of this policy is to reflect the fact that the General Fund has been used to finance property used for School purposes.
Bursary Fund
Amounts are set aside for any awards made to children from families who would otherwise not be able to afford the fees to access the education we offer, and for parents facing temporary financial hardship. This fund is also used to support Charities that improve the lives of young disadvantaged children.
1.14 Pensions
The School contributes to the Teachers’ Pension Defined Benefits Scheme at rates set by the Scheme actuary and advised to the Board by the Scheme Administrator. The scheme is a multi-employer pension scheme and the School does not have any commitment to contribute to any deficit or receive any surplus arising on the Scheme. In accordance with FRS102, therefore, the Scheme is accounted for as a defined contribution scheme. The School also operates a money purchase scheme for non-teaching staff. Contributions are charged to the Statement of Financial Activities as incurred.
1.15 Operating leases
Rentals payable are charged on a time basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
1.16 Foreign currency translation
The charities functional and presentation currency is pound sterling. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recognised in the SOFA.
1.17 Employee termination payments
Termination payments are accounted for when the decision is made and communicated to the employee.
26
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
| 2. | CHARITABLE ACTIVITIES – FEES RECEIVABLE | 2021 | 2020 |
|---|---|---|---|
| £ | £ | ||
| Fees receivable consist of: | |||
| School fees | 6,918,493 | 6,971,157 | |
| Less: Total grants and allowances | (17,484) | (19,104) | |
| Total bursaries | (20,245) | (82,351) | |
| Covid discounts | (81,060) | (513,738) | |
| ------------------------ | ------------------------ | ||
| 6,799,704 | 6,355,964 | ||
| ============ | ============ | ||
| 3. | CHARITABLE ACTIVITIES – OTHER INCOME | 2021 | 2020 |
| £ | £ | ||
| Extras | 47,384 | 41,499 | |
| Disbursements recovered | 206,952 | 153,270 | |
| Registration fees | 13,200 | 11,500 | |
| Deposits written off | 32,548 | 13,800 | |
| Furloughing grants | 22,168 | 126,527 | |
| -------------------- | -------------------- | ||
| 322,252 | 346,596 | ||
| ========== | ========== | ||
| 4. | OTHER TRADING ACTIVITIES | 2021 | 2020 |
| £ | £ | ||
| Trading income | |||
| Facilities hire (Note 11) | 569,712 | 578,483 | |
| Furloughing grants (Note 11) | 10,174 | - | |
| Rental income | 32,029 | 19,184 | |
| -------------------- | -------------------- | ||
| 611,915 | 597,667 | ||
| ========== | ========== | ||
| 5. | INVESTMENT INCOME | 2021 | 2020 |
| £ | £ | ||
| Investment income | |||
| Bank interest | 1,611 | 20,629 | |
| Fees interest | 490 | 404 | |
| ------------------- | ------------------- | ||
| 2,101 | 21,033 | ||
| ========== | ========= | ||
| 6. | GRANTS AND DONATIONS | 2021 | 2020 |
| £ | £ | ||
| Donations to the Trust | |||
| Friends of King’s House School | 11,550 | 1,824 | |
| Other donations | 100 | 3,600 | |
| ------------------- | ------------------- | ||
| 11,650 | 5,424 | ||
| ========= | ========= |
27
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
7. ANALYSIS OF TOTAL RESOURCES EXPENDED
| Staff | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Costs | Depreciation | Support | Total | Total | |
| £ | £ | £ | £ | £ | |
| Raising funds | |||||
| Trading costs | 114,952 | 4,173 | 120,791 | 239,916 | 249,085 |
| Finance costs | - | - | 7,896 | 7,896 | 9,736 |
| ----------------------- | ------------------- | --------------------- | ---------------------- | ---------------------- | |
| 114,952 | 4,173 | 128,687 | 247,812 | 258,821 | |
| Charitable activities | |||||
| Education and grant making | |||||
| Teaching | 3,279,628 | - | 362,868 | 3,642,496 | 3,525,568 |
| Catering | - | - | 286,038 | 286,038 | 292,677 |
| Premises, repair and maintenance | 236,158 | 281,742 | 1,438,059 | 1,955,959 | 2,026,681 |
| Support costs and governance | 696,473 | - | 343,170 | 1,039,643 | 1,136,060 |
| Grants (see below) | - | - | 37,590 | 37,590 | 41,546 |
| ----------------------- | ------------------- | ---------------------- | ---------------------- | ---------------------- | |
| 4,212,259 | 281,742 | 2,467,725 | 6,961,726 | 7,022,532 | |
| ------------------------ | -------------------- | ----------------------- | ------------------------ | ------------------------ | |
| Total expenditure | 4,327,211 | 285,915 | 2,596,412 | 7,209,538 | 7,281,353 |
| ============ | ========== | ============ | ============ | ============ |
Grants to support disadvantaged children at other Schools include: £14,390 to the Royal National Children’s Springboard Foundation, £20,000 to The School & Family Works organisation and £1,600 to Rania Development for summer activities and £1,600 to Civil Service FC for girls’ football coaching.
See note 23 for the comparative analysis of resources expended.
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Governance expenditure comprises: | ||
| Auditors remuneration - audit services | 11,950 | 11,300 |
| - other services | 3,150 | 10,500 |
| ========= | ======== |
No remuneration may be or has been paid to any Governor or connected person during the year either directly or indirectly. No Governors were reimbursed expenses (2020: None). The Governors maintain indemnity insurance of up to £5m.
8. STAFF COSTS
| STAFF COSTS | 2021 | 2020 |
|---|---|---|
| £ | £ | |
| Wages and salaries | 3,435,681 | 3,502,780 |
| Social security costs | 339,003 | 343,926 |
| Pension contributions (note 21) | 552,527 | 555,230 |
| ------------------------ | ------------------------ | |
| 4,327,211 | 4,401,936 | |
| ============ | ============ |
28
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
| 8. | STAFF COSTS (continued) | 2021 | 2020 |
|---|---|---|---|
| No. | No. | ||
| The average number of employees during the year was: | |||
| Teaching | 41 | 42 | |
| Other | 70 | 72 | |
| -------------- | -------------- | ||
| 111 | 114 | ||
| ======= | ======= | ||
| The number of employees who had emoluments exceeding £60,000 were: | |||
| £60,001 - £70,000 | 1 | - | |
| £70,001 - £80,000 | 2 | 2 | |
| £90,000- £100,000 | 1 | - | |
| £100,001 - £110,000 | - | 1 | |
| £110,000 - £120,000 | 1 | - | |
| £120,001 - £130,000 | - | 1 | |
| ======= | ======= |
Aggregate remuneration and employee benefits paid to key management personnel during the year were £619,858 (2020: £658,472). There were no redundancy or termination payments during the year.
9. TAXATION
The School is a registered charity and no taxation is payable on its charitable income.
10. TANGIBLE FIXED ASSETS: GROUP
The movement of tangible fixed assets were as follows:
| Furniture | |||||||
|---|---|---|---|---|---|---|---|
| Freehold | Long | fittings | Computers | ||||
| land and | leasehold | and | and | Motor | KHSG | ||
| buildings | property | equipment | equipment | vehicle | Borehole | Total | |
| £ | £ | £ | £ | £ | £ | £ | |
| COST | |||||||
| At 1 September 2020 | 7,981,496 | 98,950 | 1,943,362 | 304,549 | 93,920 | 92,914 | 10,515,191 |
| Additions | 111,117 | - | 771,006 | 17,375 | 2,350 | 19,300 | 921,148 |
| Disposals | (32,590) | - | (40,674) | - | (7,080) | - | (80,344) |
| ---------------------- | ------------------- | ---------------------- | ------------------ | ----------------- | ----------------- | ------------------------ | |
| At 31 August 2021 | 8,060,023 | 98,950 | 2,673,694 | 321,924 | 89,190 | 112,214 | 11,355,995 |
| ----------------------- | ------------------- | ---------------------- | ------------------ | ---------------- | ---------------- | ------------------------ | |
| DEPRECIATION | |||||||
| At 1 September 2020 | 2,205,729 | 47,000 | 1,288,449 | 228,443 | 93,850 | 21,679 | 3,885,150 |
| Charge for the year | 123,038 | 800 | 105,979 | 45,159 | 538 | 10,401 | 285,915 |
| Eliminated on disposal | - | - | (38,350) | - | (7,080) | - | (45,430) |
| ---------------------- | ----------------- | ------------------- | ------------------ | --------------- | --------------- | ----------------------- | |
| At 31 August 2021 | 2,328,767 | 47,800 | 1,356,078 | 273,602 | 87,308 | 32,080 | 4,125,635 |
| --------------------- | ------------------ | ------------------- | ------------------ | --------------- | --------------- | ----------------------- | |
| NET BOOK VALUE | |||||||
| At 31 August 2021 | 5,731,256 | 51,150 | 1,317,616 | 48,322 | 1,882 | 80,134 | 7,230,360 |
| ============ | ========= | ========== | ========= | ========= | ========= | ============= | |
| At 31 August 2020 | 5,775,767 | 51,950 | 654,913 | 76,106 | 70 | 71,235 | 6,630,041 |
| ============ | ========= | =========== | ========== | ========= | ========= | ============= |
The School’s bankers are holding a first legal mortgage over part of the School’s freehold land and buildings as security for a loan and overdraft facility.
A small amount of fixtures and fittings are held within King’s House School Enterprises Limited. The total cost of these assets is £32,158 (2020: £39,503) including additions of £1,812 (2020: £7,926). Accumulated depreciation for the year of £17,088 (2020: £21,622), including a charge of £4,173 (2020: £4,466). The net book value of these assets was therefore £15,070 (2020: £17,881).
29
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
11. FIXED ASSET INVESTMENTS
The School owns 100% of King’s House School Enterprises Limited, registered company number 07261424, which provides sporting, leisure and other facilities and services. The company is registered in the United Kingdom. During the year, the company donated £150,303 (2020: £193,728) donated in relation to 2020) of its taxable profits to the school. The School charged £100,000 (2020: £175,000) for a license to use the premises which the school leases. The balance owing from the School to the company at 31 August 2021 was £7,650 (2020: owed to company £2,887). Its trading results extracted from its audited accounts for the year ended 31 August 2021 were:
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| Turnover | 569,712 | 578,483 | |||
| Expenditure | (339,916) | (424,085) | |||
| Other operating income | 10,174 | - | |||
| Donation to King’s House School | (150,303) | (193,728) | |||
| ------------------ | ------------------ | ||||
| (Loss)/profit for the year | 89,667 | (39,330) | |||
| ========= | ========= | ||||
| Interest in King’s House School Enterprises Limited | 1,000 | 1,000 | |||
| Reserves | 289,321 | 199,654 | |||
| ------------------ | ------------------ | ||||
| Aggregate capital and reserves | 290,321 | 200,654 | |||
| ========= | ========= | ||||
| Balance sheet | 2021 | 2020 | |||
| £ | £ | ||||
| Fixed asset | 15,070 | 17,881 | |||
| Current Assets | 306,119 | 231,961 | |||
| Current liabilities | (30,868) | (49,188) | |||
| ------------------ | ------------------ | ||||
| Net assets | 290,321 | 200,654 | |||
| ========= | ========= | ||||
| Net assets include share capital of £1,000. | |||||
| 12. | DEBTORS | Group | School | Group | School |
| 2021 | 2021 | 2020 | 2020 | ||
| £ | £ | £ | £ | ||
| Fee debtors | 58,406 | 58,406 | 15,242 | 15,242 | |
| Prepayments and accrued income | 268,719 | 221,860 | 311,849 | 248,991 | |
| Other debtors | 2,108 | 2,108 | 12,103 | 12,103 | |
| -------------------- | -------------------- | -------------------- | -------------------- | ||
| 329,233 | 282,374 | 339,194 | 276,336 | ||
| ========== | ========== | ========== | ========== | ||
| 13. | CASH AND CASH EQUIVALENTS | Group | School | Group | School |
| 2021 | 2021 | 2020 | 2020 | ||
| £ | £ | £ | £ | ||
| Cash at bank | 5,059,085 | 4,807,475 | 4,664,165 | 4,510,318 | |
| ============ | ============ | ============ | ============ |
30
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
| 14. | CREDITORS: amounts due within one year | Group | School | Group | School |
|---|---|---|---|---|---|
| 2021 | 2021 | 2020 | 2020 | ||
| £ | £ | £ | £ | ||
| Bank loan | 104,365 | 104,365 | 102,812 | 102,812 | |
| Other taxes and social security | 98,096 | 88,477 | 90,149 | 86,271 | |
| Accruals | 780,416 | 768,262 | 206,061 | 177,609 | |
| Trade creditors | 226,676 | 218,331 | 309,911 | 293,803 | |
| Other creditors | 24,671 | 23,921 | 24,939 | 24,189 | |
| Deposits | 101,450 | 101,450 | 88,000 | 88,000 | |
| Deferred income-fees in advance | 276,930 | 276,930 | 283,305 | 283,305 | |
| Amounts due to group companies | - | 7,650 | - | 2,887 | |
| ----------------------- | -------------------- | ----------------------- | -------------------- | ||
| 1,612,604 | 1,589,386 | 1,105,177 | 1,058,876 | ||
| ============ | ========== | ============ | ========== | ||
| 15. | CREDITORS: amounts due after one year | Group | & School | ||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Deposits | 1,099,239 | 1,067,191 | |||
| Bank loan | 52,436 | 157,086 | |||
| ------------------------ | ------------------------ | ||||
| 1,151,675 | 1,224,277 | ||||
| ============ | ============ | ||||
| 16. | BANK LOANS | Group | & School | ||
| 2021 | 2020 | ||||
| £ | £ | ||||
| MATURITY OF DEBT | |||||
| Within one year | 104,365 | 102,812 | |||
| Two to five years | 52,436 | 157,086 | |||
| --------------------- | --------------------- | ||||
| 156,801 | 259,898 | ||||
| =========== | =========== |
The bank loan and overdraft facility are secured by a charge over commercial freehold property owned by the School. The bank loan bears interest at a rate of 1% over Bank of England base rate, which decreased to 0.1% during the year.
31
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
| 17. | FUND MOVEMENTS | At | At | |||
|---|---|---|---|---|---|---|
| 1 September | Income | Expenditure | 31 August | |||
| 2020 | Transfers | 2021 | ||||
| £ | £ | £ | £ | £ | ||
| Unrestricted Funds | ||||||
| General Fund | 3,415,357 | 7,767,867 | (7,171,948) | (14,687) | 3,996,589 | |
| Designated Funds | ||||||
| Property fund | 5,827,719 | - | - | (45,313) | 5,782,406 | |
| Bursary fund | 73,239 | (20,245) | (37,590) | 60,000 | 75,404 | |
| ------------------------ | -------------------------- | -------------------------- | ---------------- | ------------------------ | ||
| 9,316,315 | 7,747,622 | (7,209,538) | - | 9,854,399 | ||
| ============ | ============ | ============= | ======== | ============ | ||
| As at 31 August 2020 | ||||||
| At | At | |||||
| 1 September | Income | Expenditure | 31 August | |||
| 2019 | Transfers | 2020 | ||||
| £ | £ | £ | £ | £ | ||
| Unrestricted Funds | ||||||
| General Fund | 3,117,636 | 7,409,035 | (7,239,807) | 128,493 | 3,415,357 | |
| Designated Funds | ||||||
| Property fund | 6,016,212 | - | - | (188,493) | 5,827,719 | |
| Bursary fund | 137,136 | (82,351) | (41,546) | 60,000 | 73,239 | |
| ------------------------ | ------------------------ | -------------------------- | ---------------- | ------------------------ | ||
| 9,270,984 | 7,326,684 | (7,281,353) | - | 9,316,315 | ||
| ============= | ============ | ============= | ======== | ============ |
Property Fund
Where General Funds are surplus to requirements, transfers are made to the Property Fund to build up a Property Fund. The purpose of this policy is to reflect the fact that the General Fund has been used to finance property used for School purposes.
Bursary Fund
Amounts are set aside for any awards made to children from families who would otherwise not be able to afford the fees to access the education we offer, and for parents facing temporary financial hardship.
| 18. | NET ASSETS BY FUND GROUP | Tangible | Net current | Long term | |
|---|---|---|---|---|---|
| fixed assets | assets | Liabilities | Total | ||
| £ | £ | £ | £ | ||
| General Fund | 1,447,954 | 3,700,310 | (1,151,675) | 3,996,589 | |
| Designated | |||||
| Property fund | 5,782,406 | - | - | 5,782,406 | |
| Bursary fund | - | 75,404 | - | 75,404 | |
| ------------------------ | ------------------------ | ------------------------- | ------------------------ | ||
| 7,230,360 | 3,775,714 | (1,151,675) | 9,854,399 | ||
| ============ | ============ | ============= | ============ | ||
| As at 31 August 2020 | |||||
| General Fund | 802,322 | 3,837,312 | (1,224,277) | 3,415,357 | |
| Designated | |||||
| Property fund | 5,827,719 | - | - | 5,827,719 | |
| Bursary fund | - | 73,239 | - | 73,239 | |
| ------------------------ | ------------------------ | ------------------------- | ------------------------ | ||
| 6,630,041 | 3,910,551 | (1,224,277) | 9,316,315 | ||
| ============ | ============ | ============= | ============ |
32
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
19. OPERATING LEASE COMMITMENTS
At 31 August 2021, the School’s and group’s future minimum operating lease payments are as follows:
| Group and | School | |
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Operating leases which expire: | ||
| Within one year | 133,948 | 129,813 |
| In two to five years | 503,477 | 484,791 |
| Greater than five years | 5,220,000 | 5,340,000 |
| ------------------------ | ------------------------ | |
| 5,857,425 | 5,954,604 | |
| ============ | ============ |
Total costs incurred during the year in respect of rental costs for assets held under operating leases were £129,813 (2020: £126,495).
20. PENSION SCHEME
The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £426,253 (2020: £420,130) and at the year-end £Nil (2020 - £Nil) was accrued in respect of contributions to this scheme.
The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.
The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.
On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.
33
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
20. PENSION SCHEME (continued)
The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. The consultation closed to response on 19 August 2021 and the Government is currently analysing the responses.
In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.
Until the cost cap mechanism review is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.
The School also operates a Group pension scheme for non-teaching staff which is a defined contribution scheme with employees contributing 5% and the School 10% (2020: 5% and 10% respectively). The total contributions payable by the School in the year were £121,217 (2020: £130,138). As at 31 August 2021 amounts totalling £13,681 (2020: £14,552) were due to the Scheme and are included within other creditors.
21. RELATED PARTY TRANSACTIONS
King’s House Enterprises Limited is a wholly owned subsidiary of King’s House School Trust (Richmond) Limited. At the year-end there was an amount due to King’s House School Trust (Richmond) Limited of £Nil (2020: £Nil) in respect of profits gift aided to the School by the subsidiary company.
The daughter of one trustee was employed on a temporary contract during the year as a nursery assistant and from the beginning of September 2021 become a permanent employee at the school. In addition, the son of the same trustee worked on a temporary contract during the year but has since left. The trustee was not involved in the decision to employ them or set their remuneration.
No Governors had any other related party transactions with the group during the year (2020: Nil).
34
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
22. COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted funds | Unrestricted funds | 2020 | |
|---|---|---|---|
| General | Designated | Total | |
| £ | £ | £ | |
| INCOME FROM | |||
| Charitable activities | |||
| School fees receivable | 6,438,315 | (82,351) | 6,355,964 |
| Other income | 346,596 | - | 346,596 |
| Trading activities | 597,667 | - | 597,667 |
| Investment income | 21,033 | - | 21,033 |
| Donations | 5,424 | - | 5,424 |
| --------------------- | ---------------- | --------------------- | |
| Total income | 7,409,035 | (82,351) | 7,326,684 |
| --------------------- | ----------------- | ---------------------- | |
| EXPENDITURE ON | |||
| Raising funds | 258,821 | - | 258,821 |
| Charitable activities | |||
| Education and grant making | 6,980,986 | 41,546 | 7,022,532 |
| ---------------------- | --------------------- | ---------------------- | |
| Total expenditure | 7,239,807 | 41,546 | 7,281,353 |
| ---------------------- | -------------------- | ---------------------- | |
| Net income before transfer | 169,228 | (123,897) | 45,331 |
| Transfers | 128,493 | (128,493) | - |
| ----------------------- | ------------------------ | ----------------------- | |
| Net income | 297,721 | (252,390) | 45,331 |
| Balance brought forward | 3,117,636 | 6,153,348 | 9,270,984 |
| ------------------------ | ------------------------ | ------------------------ | |
| Balance carried forward | 3,415,357 | 5,900,958 | 9,316,315 |
| ============ | ============ | ============ |
35
KING’S HOUSE SCHOOL TRUST (RICHMOND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
YEAR ENDED 31 AUGUST 2021
23. COMPARATIVE ANALYSIS OF TOTAL RESOURCES EXPENDED
| Staff | 2020 | |||
|---|---|---|---|---|
| Costs | Depreciation | Support | Total | |
| £ | £ | £ | £ | |
| Raising funds | ||||
| Trading costs | 147,031 | 4,466 | 97,588 | 249,085 |
| Finance costs | - | - | 9,736 | 9,736 |
| ----------------------- | ------------------- | --------------------- | ---------------------- | |
| 147,031 | 4,466 | 107,324 | 258,821 | |
| Charitable activities | ||||
| Education and grant making | ||||
| Teaching | 3,193,943 | - | 331,625 | 3,525,568 |
| Catering | 143,001 | - | 149,676 | 292,677 |
| Premises, repair and maintenance | 243,774 | 295,015 | 1,487,892 | 2,026,681 |
| Support costs and governance | 674,187 | - | 461,873 | 1,136,060 |
| Grants (see below) | - | - | 41,546 | 41,546 |
| ----------------------- | ------------------- | ---------------------- | ---------------------- | |
| 4,254,905 | 295,015 | 2,472,612 | 7,022,532 | |
| ------------------------ | -------------------- | ----------------------- | ------------------------ | |
| Total expenditure | 4,401,936 | 299,481 | 2,579,936 | 7,281,353 |
| ============ | ========== | ============ | ============ |
36