2020-08-31-accounts

QUEEN’S COLLEGE, LONDON

COUNCIL’S REPORT AND ACCOUNTS YEAR ENDED 31 AUGUST 2020

Charity Registration No. 312726

QUEEN’S COLLEGE, LONDON

CONTENTS

Contents	Pages
Legal and administrative information	1
The Council’s report	2 – 11
Statement of the Council’s responsibilities	12
Auditor’s report	13 – 14
Statement of financial activities	15
Balance sheet	16
Statement of Cash flows	17
Notes to the accounts	18 - 29

QUEEN’S COLLEGE, LONDON

LEGAL AND ADMINISTRATIVE INFORMATION

YEAR ENDED 31 AUGUST 2020

Patron	Her Majesty The Queen
Council (current serving members)	Seth Bolderow
	Jenny Blaiklock (from 24 March 2020)
	Catherine Brahams-Melinek
	Richard Ford
	Alexandra Gregory
	Matthew Hanslip Ward (Vice Chair)
	David Imrie
	John Jacob
	Jane MacFarlane (from 3 December 2019)
	Amanda McShane (from 3 December 2019)
	Natasha Nolan (until 3 December 2019)
	Rae Perry
	Holly Porter
	Paul Reeve
	Danielle Salem (until 3 December 2019)
	Sue Summers
	Sarah-Jane Watson (from 3 December 2019)
	Linda Wei (from 3 December 2019)
	Alison While (Chair)
	Patricia Wilks (from 3 December 2019)
	Richard Yeates (to 18 May 2020)
The Principal	Richard Tillett
The Head of the Preparatory School	Emma Webb (to 31 August 2020)
	Laura Hall (from 1 September 2020)
Bursar	Crispin Morton
Registered Charity number	312726
Principal address	43-49 Harley Street
	London
	W1G 8BT
Auditor	Haysmacintyre LLP
	10 Queen Street Place
	London
	EC4R 1AG
Bankers	National Westminster Bank plc
	PO Box No 4NU
	1 Cavendish Square
	London
	W1A 4NU
Solicitors	Bircham Dyson Bell LLP
	50 Broadway
	London
	SW1H 0BL
Investment Advisors	J M Finn & Co
	4 Coleman Street
	London
	EC2R 5TA

1

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT

YEAR ENDED 31 AUGUST 2020

THE COUNCIL’S REPORT

The Council of Queen’s College, London (“the Council”) presents its report, together with the audited financial statements, for the academic and financial year ended 31 August 2020, and confirms that the latter comply with the requirements of the Charities Act 2011 and the Statement of Recommended for Charities (SORP) 2015 (Second Edition, effective 1 January 2019).

REFERENCE AND ADMINISTRATIVE INFORMATION

Queen’s College, London was founded by Deed of Constitution dated 1 September 1852 and Royal Charter dated 2 November 1854, supplemented by Charter dated 29 May 1970, and as amended 26 October 1988. It has charitable status under reference number 312726.

THE COUNCIL OF QUEEN’S COLLEGE, LONDON

The members of the Council are also the Charity Trustees. Listed below are the present members and also any ex-members who served during the year as indicated:

Seth Bolderow
Jenny Blaiklock	(Elected 24 March 2020)
Catherine Brahams-Melinek
Richard Ford
Alexandra Gregory
Matthew Hanslip Ward
David Imrie
John Jacob
Jane MacFarlane	(Elected 3 December 2019)
Amanda McShane	(Elected 3 December 2019; Resigned 17 September 2020)
Natasha Nolan	(Resigned 3 December 2019)
Rae Perry
Holly Porter
Paul Reeve
Danielle Salem	(Resigned 3 December 2019)
Sue Summers
Sarah-Jane Watson	(Elected 3 December 2019)
Linda Wei	(Elected 3 December 2019)
Alison While
Patricia Wilks	(Elected 3 December 2019)
Richard Yeates	(Resigned 18 May 2020)

Alison While is the Chair of the Council. Matthew Hanslip Ward is Vice Chair.

FINANCE COMMITTEE

The members of the Finance Committee were: Richard Ford (Chairman), Jenny Blaiklock (from 24 March 2020), Alexandra Gregory, John Jacob, Natasha Nolan (until 3 December 2019), Rae Perry, and Paul Reeve.

2

QUEEN’S COLLEGE, LONDON THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Queen’s College, London is governed by Royal Charter, the bye-laws of which were last amended on 26 October 1988. Application has been made to the Privy Council to make amendments to the bye-laws and this process is ongoing.

Governing Body

Queen’s College, London (“Queen’s”; “the School”) comprises both Queen’s College (“the College”, situated in Harley Street) and Queen’s College Preparatory School (“QCPS”, situated in Portland Place); the Council is thus the governing body of both constituent schools of Queen’s. Members of the Council serve and are constituted as detailed by the governing document. Members are elected at a full meeting of the Council, taking into consideration their eligibility, personal competence, specialist skills, and local availability. Members serve for a term of three years and are then eligible for reelection; they may serve on the Council for up to three terms (thus a maximum of nine years). Four members of the Council are related to pupils currently at the College or QCPS.

The Finance Committee, the Education and Pastoral Committee, the Estates Committee, and the Governance and Nominations Committee all report to the full Council following each of their meetings. The Development and Fundraising sub-Committee reports to the Council via the Finance Committee, of which it is a sub-Committee.

Trustee Training

Each new member of the Council is inducted into the workings of the School. Training is recommended, dependent upon the member’s personal skills and experience. The Council is a member of the Association of Governing Bodies of Independent Schools (AGBIS), which conducts training courses for members.

Organisational Management

Queen’s College, London is constituted by Royal Charter in a body politic and corporate.

The Council is the governing body, and meets at least four times a year to oversee the policy of the School, and to review the processes by which the School is managed and controlled. During this year, all Council, Committee and sub-Committee meetings from 24 March 2020 onwards were held via video conferencing, because of the Covid-19 emergency. The Council held four Extraordinary meetings to deal with aspects of the Covid-19 situation, as follows: on 8 April to agree policy concerning fees during remote schooling during lockdown; on 28 May to approve partial re-opening of QCPS in light of changed Government advice; on 16 June to approve partial re-opening of the College; and on 18 August to approve full reopening of the School for the Michaelmas term.

The financial operation of the School is reviewed by the Finance Committee (FC), which was chaired by Richard Ford during the financial year. The FC reports to each of the Council meetings, and it has particular responsibility for reviewing financial objectives, performance, budgets, accounts, risk management and personnel matters; the Development and Fundraising sub-Committee of the FC, chaired by Rae Perry, has specific oversight of marketing, development and fundraising. The Education and Pastoral Committee was chaired by Alison While, and is responsible for child protection and safeguarding, alongside reviewing the educational provision. The Estates Committee was chaired by Matthew Hanslip Ward, and the Governance and Nominations Committee was chaired by John Jacob.

In accordance with the Royal Charter, the Principal and Headmistress are responsible to the Council for the internal organisation, management and operation of the College and QCPS respectively.

The Royal Charter requires the Principal to present an annual report to The Right Reverend and Right Honourable Lord Bishop of London, who is the College’s Visitor. This report is available from the Clerk to the Council.

Salaries for key management personnel are set by the Chair of the Council, in consultation with the Vice Chair of the Council and the Chair of the FC. They take note of both individual performance and benchmarking surveys. They are also mindful that, to attract the best key personnel, it might be necessary to factor the cost of accommodation in London into reward packages.

3

THE COUNCIL’S REPORT (Continued)

QUEEN’S COLLEGE, LONDON

YEAR ENDED 31 AUGUST 2020

Risk Management

The Council has assessed all identified major risks to which Queen’s is exposed. The principal risks are considered to be:

• a. The economic and social impacts of Covid-19 leading to a significant number of parents being forced to withdraw their daughters from the School, perhaps with minimal notice, thus threatening budgets and financial sustainability even after the immediate health crisis has abated;

• b. Ineffectual leadership leading to loss of pupils, creating financial instability;

• c. Ever-increasing costs outside the School’s control (such as high London rents and employers’ contributions to the Teachers’ Pension Scheme), enforcing fee increases, thereby reducing accessibility to the education provided by the School; and

• d. Political reform, or the need to generate funds for the public purse after the Covid-19 crisis has passed, increasing operational costs beyond economic sustainability (for instance by removing charitable status or by imposing VAT on school fees).

The risks are mitigated by extensive operational changes implemented to provide as good an education as practicable under Government-mandated restrictions, up to and including full lockdown; by the Council being rigorous in appointing key personnel; by appointing specialists to negotiate leasehold arrangements; and by trusting educational organisations such as ISC, GSA, AGBIS and ISBA to counter political scepticism about the strength of independent education and its contribution to society.

The Council is satisfied that control systems are in place to reduce exposure to identified major risks; in particular, the many specific risks to health, operations, wellbeing and finances presented by the Covid-19 emergency are examined by the FC and Council in detail in a discrete section of the risk register. The Council ensures that, where possible, exposure to major risk is mitigated by suitable insurance.

OBJECTIVES, AIMS AND PRINCIPAL ACTIVITIES

Objectives and Principles of Queen’s College, London

The objects for which the School is established and incorporated are “to promote the advancement of education, and in connection therewith to acquire, establish, conduct and carry on residential and non-residential schools for girls and young women, and in particular to continue and conduct the undertaking, business and affairs of the College known as Queen’s College, London, at present carried on at Numbers 43, 45, 47 and 49 Harley Street, and at 59 and 61 Portland Place”.

The School operates under the following Principles of Education:

• We value academic excellence for its own sake, rather than the sterile pursuit of marks;

• We measure our success by the development of each individual;

• We value personal integrity and the discernment to deal responsibly with the wider world;

• We value teaching:

• i. That inspires pupils and stimulates intellectual curiosity;

• ii. That encourages intellectual rigour and the ability to make informed judgements;

• iii. That helps pupils to know how to think, rather than what to think.

• We value in pupils:

• i. Self-reliance and independence of mind;

• ii. Self-discipline and the determination to outstrip expectations;

• iii. Imagination and the courage to take risks.

4

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2020

Powers of the Council

The Council is empowered by the Royal Charter and Bye-Laws to:

• a. “Establish and maintain or aid in the establishment and maintenance of scholarships, bursaries and grants for the assistance or advancement of pupils at any school carried on by the school or otherwise;

• b. Make grants or allowances or other payments for the education of pupils;

• c. Purchase, take on lease, hire, or otherwise acquire any real or personal property which may be deemed necessary or convenient for the purposes of the school;

• d. Accumulate, sell, improve, manage, develop, exchange, lease, mortgage or otherwise dispose of, or deal with, or turn to account all property or rights of the College; provided that the College shall take or hold any property subject to the jurisdiction of the Charity Commissioners or the Secretary of State for Education. The College shall not mortgage, charge, sell, lease or otherwise dispose of the same without such authority, approval or consent as may be required by law;

• e. Borrow or raise money with or without security for any of the purposes of the College;

• f. Receive or accept donations, endowments and gifts of money, lands, hereditaments, stocks, funds, shares, securities and any other asset whatsoever and whether subject or not subject to any special trusts or conditions;

• g. Invest any moneys of the College not immediately required for any of its objects in such manner as may be authorised;

• h. Enter into such arrangements as may be thought fit for placing the College in connection or relation with any other institution or body established for educational purposes;

• i. Apply for any additional powers which may be deemed expedient for any of the purposes of the College, by means of Supplemental Charter or Act of Parliament;

• j. Grant, continue and pay salaries, pensions, gratuities or other sums in recognition of services;

• k. Do all such acts and things (not being inconsistent with or contravening any provision of the Charter) as may be authorised by the Bye-Laws; and

• l. Do all such other acts and things as are or may be deemed incidental or conducive to the attainment of any of the purposes of the College or the exercise of any of its powers.”

Annual Objective

Queen’s College, London’s annual objective in accordance with its Royal Charter is to “promote the advancement of education and to conduct schools for girls and young women” at a level in keeping with the School’s Principles of Education.

Principal Activity

The principal activity of the School is to provide for the education of approximately 600 pupils between the ages of 4 and 18.

Financial & Operational Response to Covid-19

At the Extraordinary meeting of the Council on 8 April 2020, the Council and senior managers of the School agreed that the overall aim for navigating safely through the evolving pandemic was to keep our pupils, staff and families safe, and as far as possible for Queen’s to emerge from the crisis as recognisably the same school & community as when it entered. A comprehensive programme of remote teaching was implemented for the final two weeks of the Lent term and throughout the Summer term, supplemented by a system of pastoral care whereby every pupil and member of staff received a one-toone telephone call as a minimum once every week, on top of the routine interaction of online working.

5

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2020

The overall aim of supporting the whole Queen’s community also included financial support. At the same Extraordinary meeting the Council decided to discount fees for the Summer term 2020 by 20% for the Pre-Preparatory section of QCPS (Reception and Years 1 and 2) and by 15% for all other pupils at both QCPS and the College. This equates to a reduction in annual fee revenue of £607k (£389k in College fees and £218k in QCPS fees), or 5.3%. The Council also committed in April to freezing fees at the 2019-2020 level for the whole of the academic year 2020-2021. See the Fee Remissions section below for details of the bridging bursarial support provided to Queen’s families whose finances had been worst affected by the pandemic.

The budget was revised in early April to suspend all non-routine building work on the buildings scheduled for Summer 2020; thereafter all discretionary spending was focused onto items that would enhance the School’s ability to operate safely during the pandemic – particularly spending on reinforcing IT infrastructure and equipment to support remote learning, and on physical measures to protect pupils and staff in preparation for re-opening. These include items such as Perspex screens in music rooms and staff offices where 2m distancing is not feasible, equipment to allow pupils to see demonstrations such as science experiments without compromising social distancing, PPE, sanitisation and comprehensive signage. The Council would like formally to record their gratitude to the many Queen’s parents who provided practical support, such as the supply of hundreds of litres of hand sanitiser to the School at cost price at a time when supplies were proving hard to find on the open market.

Though all teaching and learning operations were conducted remotely from late-March until June, when QCPS partially reopened, at no stage were the School buildings closed entirely; the College remained open for a small number of children of key workers (including some QCPS pupils), and since the core Premises team were able to get to the school safely even during lockdown, building maintenance continued throughout. In particular, this allowed the School to maintain continuity of health and safety checks and routine maintenance (e.g. Legionella sampling and electrical testing) to ensure that Queen’s was confident of being able to re-open safely as soon as Government guidance allowed.

The School used the Government’s Coronavirus Job Retention Scheme (CJRS – the so-called “furlough” scheme) to protect the jobs and livelihoods of 19 staff, mostly non-teaching staff whose roles did not lend themselves to remote working. The majority were recalled at various times during the Summer holidays as the School prepared for full re-opening; all were back in full-time work by 31 August. In total this saved £37,906 in payroll costs. The School continued to pay the 20% of salaries not covered by CJRS, so that individuals continued to receive their normal salary.

Catering and Cleaning

The School’s commitment to supporting its staff included those people who provide catering and cleaning, thus making vital and valued contributions to the School, but who are contractors and thus not on the Queen’s payroll.

Queen’s worked closely with its catering contractors, Chartwells, to support their staff who deliver service to the School, including Queen’s topping up the Government’s 80% CJRS payments to 100% of salary, as for the School’s own staff. At the same time the catering contract was modified for the duration of the closed period, with the aim of conserving both finances and stock while being in a position to return quickly when the situation permitted. The total net saving in catering across both schools, including salaries, during the period was £220,607 (2018-2019: £452,075; 2019-2020 £231,468). Note that at QCPS the cost of lunch is included in the fees, whereas at the College it is an additional charge since not all pupils eat lunch in the School.

During the period when the School was operating remotely, Queen’s took a similar approach for its contract cleaners as for the catering staff; the School topped up the CJRS 80% of salary to preserve full pay during lockdown. As the School prepared for partial re-opening from June onwards, the need for cleaning returned much earlier than catering, including enhanced cleaning and sanitisation to meet Government requirements. The School’s contractors, Purgo, were one of the first school cleaning companies in the country to obtain “Safer Space” certification, under which their staff were fully trained and independently assessed in delivering the same accredited sanitisation process used in the NHS. Ensuring that pupils and staff remain safe as Queen’s reopened entailed adding more hours to the cleaning contract and investing in additional equipment, so even with the closed period between April & June, annual cleaning costs rose by 9.8% (2018-2019 £213,839; 2019-2020 £234,987).

6

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2020

Public Benefit

Queen’s College, London has always pioneered girls’ and women’s education. When opened on 1 May 1848, it was the first institution in the UK to provide academic qualifications for women, and the Royal Charter granted to the College in 1854 was the first Charter to be granted by a sovereign for the furtherance of the education of women.

In furtherance of the School’s principal activity, the Council also gives careful consideration to the Charity Commission’s guidance on public benefit. The provision of women’s education continues to be the prime public benefit provided by the School. All educational provision is reviewed at least annually to assess its 'added value', with academic endeavour occurring within a supportive environment which ensures the pupils' wellbeing. Queen’s prepares its pupils to be active and socially responsible citizens.

Fee Remissions – Bursaries and Scholarships

Queen’s supported 89 pupils with financial awards through bursaries or scholarships throughout the year. 18 pupils received bursary awards covering 100% of fees. A total of £606,314 was awarded for reason of financial hardship or academic scholarship; of this, £443,688 was allocated to means-tested bursary provision.

As the Covid-19 pandemic impacted the UK during the Lent term, it quickly became apparent that a significant number of Queen’s parents were facing short-term financial difficulties sufficiently severe that, unless they received financial relief, they would be forced to remove their daughters from the school – in many cases their income suddenly dropped to nothing, with the duration unknown. To support those families through the pandemic, from April 2020 onwards Queen’s introduced a system of means-tested Covid-19 Bridging Bursaries.

In the period covered by these accounts a total of 31 pupils were given awards covering from 20% to 100% of fees; these awards are re-assessed for renewal each term, as the impact of the virus on the economy and the Queen’s community evolves. 21 of these 31 pupils received bridging bursary awards covering 100% of the fees.

Since this cost covers the Summer term only, it represented a temporary 67% rise in bursary support during the Covid-19 outbreak. The total cost of this support in the Summer term was £99,942, in addition to the £443,688 annual cost of bursaries outlined above. A further 14 families were supported by allowing staged payment of fees through the Summer term to assist their cash flow; this assistance had no net cost to the school, since fees were paid in full before the end of the term to which they applied.

Of those fee remissions via bursaries or scholarships that are unrelated to Covid-19, approximately 17% are funded by income from investment activity; the remainder is paid for out of operating surplus. The School moved to remote learning for the final 2 weeks of the Lent term; at an Extraordinary meeting of the Council on 8 April it was decided to discount the fees for the Summer term by 20% in the Pre-Preparatory section of QCPS (Reception and Years 1 and 2) and by 15% for all other Queen’s pupils. In response to an appeal by the School, many parents donated their discount to help fund Covid19 Bridging Bursaries; this generated £50,655, made up of £39,276 from College parents, £8,378 from QCPS parents and a further £3,000 from the Parents Association. Once again, the Council would like to place on record their thanks to parents for their generosity in supporting the School and its associated community.

Public Benefit Activities

The activities set out in this section took place only in the period of the year before the UK went into lockdown in lateMarch; thereafter and for the rest of the period, Government regulations limited the School’s activities to its own pupils only.

The inner city location of both schools limits College facilities for activities in the open air; there are no sports fields or recreational areas outside. All internal facilities are available for use – and until March were regularly used – by external agencies, particularly those involved in the promotion of education. A dance academy operated from both schools after the school day and during each pre-lockdown half term and holiday period; this was open to children from all backgrounds. Every term time weekend between September and mid-March the College was used by Pro Corda, an organisation which uses training in chamber music to equip young people with the necessary skills to work together with others, unleashing wider social benefits in terms of participation, access and learning.

7

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2020

Queen’s continued its membership of the Southwark Schools’ Learning Partnership (SSLP), which it joined in 2018. The SSLP brings together 17 independent and maintained schools (“Partners” from Southwark, “Associates” such as Queen’s from neighbouring Boroughs) who share a desire to provide academic and vocational opportunities for both pupils and teachers, where each can learn from and with their peers. Events can be: athletic or educational; include teachers, pupils or both; and competitive or collaborative. The College’s partnership contributions during the period included leading Art talks and a project on Beethoven, open to pupils from SSLP schools.

The well-established and strong relationship with St Vincent’s Catholic Primary School continued to flourish. A member of the College senior leadership team is a Governor, and Queen’s provided St Vincent’s pupils in Years 5 & 6 with workshops, taught by Queen’s staff, in wildlife drawing, science, history and geography. Fifteen members of the 6[th] Form supported the school by helping at weekly lunchtime play sessions, and a Queen’s teacher volunteered to lead a Politics Assembly at St Vincent’s.

Other schools were invited to attend lectures and workshops held at the College, and many made use of this opportunity; notable examples during the year include a Stock Market Challenge, this year held with the Charter School, North Dulwich, and anti-bullying training days led by the College’s Deputy Head (Pastoral). QCPS provided opportunities for local primary schools to bring groups of pupils to learning events, sharing specialist teaching in mathematics and art in particular.

Queen’s staff also provided Oxbridge interview practice sessions to Elmgreen School, hosted a conference for Year 11 GCSE students on RS at A Level, led CPD meetings for teachers of economics and the London branch of the Association of Science Education, mentored teaching staff at other schools (such as the Head of Geography at Copthall School), and contributed to projects with the University of Exeter (SCiArt CREATIONS project) and Canterbury Christchurch University (Epistemic Insight Project).

In addition to volunteering at St Vincent’s, pupils attended and assisted at a weekly meeting with the All Soul’s Clubhouse, where they assist with serving lunches, washing up and cleaning, and by chatting to and being sociable with older people; others have volunteered at the Holborn Community Association, the Marylebone branches of Cancer Research and Barnardo’s, and Vauxhall City Farm and Riding School.

The School’s art exhibitions, drama performances and Christmas fairs were open to the local community until lockdown intervened; donations received at these events are subsequently donated to registered charities. Pupils at the School are active charity fundraisers and many volunteer and assist with local charities. In the Michaelmas term of 2019 Queen’s pupils raised £13,897 for a variety of charities including Leukaemia UK, Cosmic (Caring for Babies & Children in Intensive Care) and the Poppy Appeal. Even with the constraints of lockdown, virtual “Come & Sing” events raised £2,531 for the Cardinal Hume Centre and Imperial Health Charity.

Choirs from both schools annually perform at the opening of the local community Marylebone Christmas Festival.

College students also volunteer to assist with QCPS lessons, thus gaining valuable experience, helping the staff, and acting as both rôle models and mentors for the younger children.

Both schools continue to support actively the development of teachers and teaching assistants. QCPS supported a Newly Qualified Teacher through their induction year and enabled a teaching assistant to gain their Higher Level Teaching Assistant qualification; and the College hosted a PGCE student in science, training them to work in either the independent or maintained sector, and mentored two teachers through the Courageous Leaders’ Programme. Members of staff play an active role in support of education in the community; 2 of them are Governors at local maintained schools.

The College ensures the conservation and preservation of a number of important Listed properties for the benefit of the community at large.

Full details of the public benefit activities of the College and QCPS can be found in each school’s Public Benefit report, available from the Bursar.

8

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2020

ACHIEVEMENTS AND PERFORMANCE

Operational Performance

During the year 83 pre-preparatory girls, 137 preparatory girls and 378 secondary girls were educated in keeping with the College’s educational policies.

A Levels. There was a 100% pass rate and 93.8% of entries were graded A*, A or B.

GCSEs. At GCSE and IGCSE the proportion of 7-9 or A*-A grades was 87%.

As elsewhere in the country, grades were awarded on the basis of Centre-Assessed Grades (CAGs) due to the cancellation of public examinations.

11+. The Preparatory School 11+ examination pupils achieved excellent results, allowing girls to attend senior schools of their parents’ choice.

Full details of educational results and activities, and other matters regarding the activities of the College, are contained in the Principal’s Annual Report (as presented to the Visitor – available from the Bursar), or appear on the websites of the College (www.qcl.org.uk) and Preparatory School (www.qcps.org.uk) as applicable.

An ISI Regulatory Inspection in November 2017 confirmed that the two Queen’s schools were fully compliant with the requirements expected of independent schools.

Extra-Curricular Activities and Sport

Academic attainment is achieved alongside participation in a host of extra-curricular activities, including drama, dance, music and those associated with a wide variety of clubs. In addition, the College, despite having no sports facilities of its own, has a structured and busy PE timetable for all pupils. Girls compete against maintained and independent schools in a number of sports, with considerable success, in local leagues. The curriculum is also enriched through educational visits which maximise the benefits of the School’s location in central London, with easy access to transport links.

FINANCIAL REVIEW

The School’s net movement in funds, an increase of £379,430, should be viewed in the context of a year that saw very significant operational and financial challenges because of the pandemic, which could not have been foreseen at the time when budgets for this financial year were set. The pandemic led to reduced income because of the need to discount fees for the Summer term and an additional £99k of bursarial support, combined with a situation where the ongoing cost pressures (particularly of leasehold costs and payroll pressure from pensions costs) have not abated. To deliver a surplus, albeit lower than the original budget, in such circumstances is a positive outcome.

Full details of financial activities are contained in the attached accounts.

Investment Policy

Investment powers are governed by the Royal Charter. The investment portfolio is managed by the School’s investment advisors (J.M. Finn & Co), and their performance is regularly reviewed by the Finance Committee. The investment advisors also present an annual review of performance to the Finance Committee.

The Council adopts a conservative investment strategy, with the aim of optimising the School’s total investment return consistent with mitigating risk, and while preserving the real value of endowed investments.

Investment Performance

During the year £98,319 (2019: £104,873) investment income was received into the business account. Market performance, however, led to a net loss of £82,744 in the unrealised value of the funds, thus decreasing the net trading surplus by the same amount.

9

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2020

Reserves Policy

Total funds of the School at 31 August 2020 were £8,196,487 (2019: £7,817,057), comprising restricted funds of £1,286,908 (2019: £1,155,840), designated funds of £5,480,501 (2019: £5,790,481), and general funds of £1,429,078 (2019: £870,736).

The School’s primary objective remains to continue increasing reserve resources following a number of years of capital expenditure, though the uncertainties caused by the pandemic (particularly the length and depth of the resultant recession and the potential impact on pupil recruitment) might reduce the rate of increase for the immediate future. In the long run, the School’s objective is to increase its reserve resources to the point where it has £3,000,000 in addition to the funds required to sustain normal operations. For context, the lowest cash position at the bank during 2019-2020 was £2.25M, so the position has already improved markedly since the £3.6M capital expenditure on the 6[th] Form Centre in 2017.

As outlined in the Public Benefit section, less than 25% of the funds remitted from fee revenue via scholarships and bursaries is funded from investment income; the remainder, therefore, is covered from operating surplus. The 175[th] Anniversary Bursary appeal, opened in 2018 and scheduled to run until at least 2023, continues in its aim of reducing or eradicating this dependency on operating surplus in remitting fees. Until this goal is attained, the need to pay for fee remissions will continued to be reflected in reserves holdings.

PLANS FOR THE FUTURE

The objective of the School is, and will remain, the provision of education for girls and young women, as directed by the School’s Charter and Principles of Education.

Development

The School will continue to consolidate its position in order to concentrate on bringing the remainder of its infrastructure to a standard equivalent to the modern 6[th] Form centre opened in 2017. The 2020-2021 budget deliberately focuses resources on IT, where a long history of relative under-investment has left a legacy of ageing equipment. Progress in this regard since 2018 meant that the School was able to cope with the considerable reliance on IT to deliver remote teaching during 2020, but there remains much to do to improve resilience, redundancy and equipment standardisation.

2020-2021 will see refurbishment of the buildings confined to work that can be done by the in-house team, because of the financial constraints imposed by the ongoing pandemic; this approach successfully refurbished an entire floor of classrooms at the College in the Summer of 2020, so it does not mean that the premises are to be neglected. The School will also use the period of enforced absence of major work to plan and prepare for 2021-2022, when it is hoped that the pandemic will have eased sufficiently to allow a less conservative use of funds; this planning and preparation involves time-consuming and vital aspects such as obtaining the requisite Planning and Listed Building Consent from Westminster Council and Permission to Alter from the School’s landlords, but without consuming significant funds.

Queen’s College Preparatory School

The impact of the Spring/Summer lockdown resulted in a reduction of approximately 10% of pupils on roll, as families chose to leave London for less-populated locations in the UK. However, the forecast for the Reception 2021 intake is healthy and the Council now plans to recruit more heavily than ever into Form III for 2021, with the intention of creating a new class and up to 16 more fee-paying pupils. Despite the financial impact of the pandemic, staff and pupil morale is high, and educational attainment remains outstanding at 11+. The new Headmistress’ strategic development plan for the school has been received favourably by staff and parents and the Council is subsequently looking forward to further raising the academic reputation of the school in the coming years. The Council continues to be focused upon assuring the delivery of a first class education and welfare for its pupils, including further investment in facilities as the impact of the pandemic eases.

10

QUEEN’S COLLEGE, LONDON

THE COUNCIL’S REPORT (Continued)

YEAR ENDED 31 AUGUST 2020

Queen’s College

The College continues to grow steadily, with an aim to reach 400 pupils within five years, without compromising academic standards. The Council aims to continue the upward trajectory of academic results whilst maintaining a broad and balanced extra-curricular offering. Closer collaboration with state schools such as Sarah Bonnell School in Stratford and members of the Southwark Schools Learning Partnership will lead to a greater socio-economic diversity among the pupil body, funded by the continuing 175th anniversary bursary appeal, while the College will continue to increase its work alongside QCPS for the benefit of staff and pupils across both parts of the organisation.

Bursary Support and Public Benefit

The Council is aware that charitable giving in the form of fee remissions must reflect the School’s overall financial situation as well as its need as a charity to provide public benefit. Including the Bridging Bursaries to cover Covid-19, 6.4% of fee revenue was dedicated to providing financial support, of which 5% (£543,630) was in the form of Bursaries to provide the chance of a Queen’s education to families who might otherwise not be able to afford it. Without the Covid-19 bursaries, 5.5% of fee revenue was dedicated to financial support, of which 4% (£443,688) was in the form of bursaries.

18 pupils received 100% support before Covid-19; an additional 21 pupils received 100% bridging awards for the duration of need caused by the pandemic. Though some of the cost of this is met by income from investments established for the purpose, the majority of the cost comes from operating revenue, which dictates a balanced and prudent approach on the Council’s part.

Disclosure of information to auditors

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditors are unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Auditor

A resolution to re-appoint Haysmacintyre LLP as the College’s auditors was passed at the Annual General Meeting on xx December 2020.

Signed on behalf of the Council

Alison While (Chairman)

Date: 8 December 2020

11

QUEEN’S COLLEGE, LONDON

STATEMENT OF THE COUNCIL’S RESPONSIBILITIES

YEAR ENDED 31 AUGUST 2020

The Council is responsible for preparing the Council’s Report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Council to prepare accounts for each financial year which give a true and fair view of the state of affairs of the College, and of the incoming resources and application of resources of the College in that year.

In preparing these accounts, the Council are required to:

• Select suitable accounting policies and then apply them consistently;

• Observe the methods and principles in the Charities SORP;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and

• Prepare the accounts on the going concern basis, unless it is inappropriate to presume that the College will continue in operation.

The Council is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the College, and enable it to ensure that the accounts comply with the Charities Act 2011, the College (Accounts and Reports) Regulations 2008 and the provisions of the Royal Charter. It is also responsible for safeguarding the assets of the College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

12

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF QUEEN’S COLLEGE, LONDON

Opinion

We have audited the financial statements of Queen’s College, London for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the College’s affairs as at 31 August 2020 and of the College’s net movement in funds 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 Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 College 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.

Responsibilities of Council for the financial statements

As explained more fully in the Council’s responsibilities statement set out on page 12, the Council is 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 Council 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 Council is responsible for assessing the College’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 Council either intend to liquidate the College 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.

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.

Conclusions relating to going concern

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

• the Council’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Council have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the College’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The Council are responsible for the other information. The other information comprises the information included in the Report of the Council. 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.

13

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF QUEEN’S COLLEGE, LONDON (CONTINUED)

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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the College; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Use of our report

This report is made solely to the College’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the College's trustees 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 College’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP Chartered Accountants Statutory Auditor

10 Queen Street Place London EC4R 1AG

Date: 8 December 2020

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

14

QUEEN’S COLLEGE, LONDON

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2020

		Unrestricted	Restricted	Total	Total
		Funds	Funds	2020	2019
	Notes	£	£	£	£
INCOME FROM:
Donations and grants receivable	2	79,556	161,542	241,098	409
Investments	3	44,426	53,893	98,319	104,873
		--------------------	--------------------	--------------------	--------------------
		123,982	215,435	339,417	105,282
Charitable activity
Education	4	10,524,145	-	10,524,145	10,771,393
		--------------------	--------------------	--------------------	--------------------
Total income		10,648,127	215,435	10,863,562	10,876,675
		--------------------	--------------------	--------------------	--------------------
EXPENDITURE ON:
Raising funds		38,549	-	38,549	36,116
Charitable activity
Education		10,362,839	-	10,362,839	9,718,831
		---------------------	--------------------	---------------------	---------------------
Total expenditure	5	10,401,388	-	10,401,388	9,754,947
		---------------------	--------------------	---------------------	---------------------
Net income before net losses on
investments		246,739	215,435	462,174	1,121,728
Net losses on investments		(31,714)	(51,030)	(82,744)	(51,661)
		---------------------	--------------------	---------------------	---------------------
Net income		215,025	164,405	379,430	1,070,067
Transfers between funds	13/14	33,337	(33,337)	-	-
		---------------------	--------------------	---------------------	---------------------
Net movement in funds		248,362	131,068	379,430	1,070,067
Fund balances at 1 September 2019		6,661,217	1,155,840	7,817,057	6,746,990
		--------------------	--------------------	---------------------	---------------------
Fund balances at 31 August 2020		6,909,579	1,286,908	8,196,487	7,817,057
		==========	==========	==========	==========

All income and gains for the period are recognised above. All of the College’s activities are classified as continuing.

Details of comparative figures by fund are shown in note 19.

15

QUEEN’S COLLEGE, LONDON

BALANCE SHEET

31 AUGUST 2020

			2020		2019
	Notes	£	£	£	£
FIXED ASSETS
Tangible assets	8		4,870,778		5,127,153
Investments	9		2,266,923		2,314,403
			-------------------		-------------------
			7,137,701		7,441,556
CURRENT ASSETS
Debtors	10	2,988,579		3,171,749
Cash at bank and in hand		3,373,600		2,841,862
		---------------------		---------------------
		6,362,179		6,013,611
Creditors: amounts falling due within
one year	11	(5,303,393)		(5,638,110)
		---------------------		---------------------
Net current assets			1,058,786		375,501
			--------------------		--------------------
Total assets less current liabilities			8,196,487		7,817,057
			==========		==========
Income funds
Restricted funds	13		1,286,908		1,155,840
Unrestricted funds:
Designated funds	14		5,480,501		5,790,481
General funds			1,429,078		870,736
			----------------------		----------------------
			6,909,579		6,661,217
			----------------------		----------------------
			8,196,487		7,817,057
			===========		===========

The accounts were approved by the Council on 8 December 2020.

Alison While Richard Ford Chairman Chair of Finance

16

QUEEN’S COLLEGE, LONDON

STATEMENT OF CASH FLOWS

YEAR ENDED 31 AUGUST 2020

	2020	2019
	£	£
Cash flows from operating activities:
Net cash provided by operating activities	680,588	1,334,954
Cash flows from investing activities:
Investment income	98,319	104,873
Payments to acquire tangible fixed assets	(211,904)	(300,136)
Payments to acquire investments	(361,272)	(67,773)
Proceeds from disposal of investments	332,740	-
Other receipts and movements from investment portfolio	(6,733)	27,175
	-------------------	-------------------
Net cash used in investing activities	(148,850)	(235,861)
	-------------------	-------------------
Change in cash and cash equivalents in the reporting period	531,738	1,099,093
Cash and cash equivalents at the beginning of the reporting period	2,841,862	1,742,769
	--------------------	--------------------
Cash and cash equivalents at the end of the reporting period	3,373,600	2,841,862
	==========	==========
Reconciliation of net income to net cash flow from operating activities
	2020	2019
	£	£
Net income for the reporting period
(as per the statement of financial activities)	379,430	1,070,067
Adjustments for:
Net loss on investments	82,744	51,661
Depreciation charges	468,279	412,875
Investment income	(98,319)	(104,873)
Decrease / (increase) in debtors	183,171	(441,280)
(Decrease) / increase in creditors	(334,717)	346,504
	-----------------	-------------------
Net cash provided by operating activities	680,588	1,334,954
	=========	=========
Analysis of cash and cash equivalents	2020	2019
	£	£
Cash in hand	3,373,600	2,841,862
	-------------------	-------------------
Total cash and cash equivalents	3,373,600	2,841,862
	=========	=========

17

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS

YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - effective 1 January 2015.

The functional currency of the College is considered to be GBP because that is the currency of the primary economic environment in which the College operates.

The College is a Public Benefit Entity registered as a charity in England and Wales (Charity Registration No. 312726).

1.1 Going Concern:

Having reviewed the funding facilities available to the College together with the expected ongoing demand for places and the College’s future projected cash flows, Members of the Council have an expectation that the College has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the College’s financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 12.

1.2 Critical accounting judgements and key sources of estimation uncertainty:

In the application of the accounting policies, Members of the Council 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.

Judgements made by Members of the Council, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the depreciation rates of tangible fixed assets and are discussed below.

In the view of the Members of the Council, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

1.3 Fees and similar income:

Fees receivable for education are accounted for in the period in which the service is provided. Fees received for education to be provided in future years are carried forward as deferred income.

Donations are accounted for when they are receivable. Donations for purposes restricted by the wishes of the donor are taken to “restricted reserves” where these wishes are legally binding on the Council.

Grant income is derived from the amounts receivable under the Coronavirus Job Retention Scheme.

Investment income is accounted for when it is received.

18

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

1.4 Expenditure:

Expenditure is accounted for on an accruals basis, with the irrecoverable element of VAT included with the item of expense to which it relates.

Expenditure is summarised under functional headings on a direct cost basis.

Governance costs are those incurred in connection with the administration of the College and compliance with constitutional and statutory requirements.

The cost of furniture and equipment is written off in the year of acquisition.

1.5 Tangible fixed assets and depreciation:

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold Property Over 25 years, other than Somerville Hall which has been fully depreciated and improvements to the dining hall and boiler room which are being depreciated over 10 years. Plant & Machinery Straight line over 10 years Furniture & Fittings Straight line over 4 years IT Straight line over 3 years

Items costing less than £1,000 are written off on acquisition.

1.6 Leasing and hire purchase commitments:

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

1.7 Investment:

Fixed asset investments are stated at market value.

Realised and unrealised gains and losses are dealt with in the Statement of Financial Activities.

1.8 Pensions:

The Teachers’ Pension Scheme - This scheme is a multi-employer pension scheme. It is not possible to identify the College’s share of the underlying assets and liabilities of the Teachers’ Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, accounts for the scheme as if it were a defined contribution scheme. The College’s contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable.

The College also contributes to personal pension schemes for non-teaching staff.

1.9 Accumulated funds:

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in note 13 to the accounts.

Designated funds comprise funds which have been set aside at the discretion of the Council for specific purposes. The purposes and uses of the designated funds are set out in note 14 to the accounts.

Unrestricted funds are funds which can be used in the accordance with the charitable objects at the discretion of the Council.

1.10 Taxation:

No provision for taxation is included in the accounts as the College is entitled to the exemption for tax afforded by Part 10 of the Income Tax Act 2007 and Section 256 of the Chargeable Gains Act 1992.

19

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

1.11 Financial instruments:

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

1.12 Debtors:

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.13 Cash at bank and in hand:

Cash at bank and cash in hand includes cash and short term highly liquid investments.

1.14 Creditors and provisions:

Creditors and provisions are recognised where the College 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. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2. Donations and grants receivable

	Unrestricted	Restricted	Total	Total
	Funds	Funds	2020	2019
	£	£	£	£
Donations	4,070	161,542	165,612	409
Grants receivable	75,486	-	75,486	-
	----------------	----------------	-----------------	-----------------
	79,556	161,542	241,098	409
	========	========	========	========
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2019	2018
	£	£	£	£
Donations	409	-	409	16,616
	----------------	----------------	-----------------	-----------------
	409	-	409	16,616
	========	========	========	========

20

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2020

3. Investment income

	Unrestricted	Restricted	Total	Total
	Funds	Funds	2020	2019
	£	£	£	£
Income from listed investments	37,755	53,893	91,648	100,586
Interest receivable	6,671	-	6,671	4,287
	----------------	----------------	-----------------	-----------------
	44,426	53,893	98,319	104,873
	========	========	========	========
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2019	2018
	£	£	£	£
Income from listed investments	46,540	54,046	100,586	100,585
Interest receivable	4,287	-	4,287	-
	----------------	----------------	-----------------	-----------------
	50,827	54,046	104,873	100,585
	========	========	========	========

4. Income from Charitable Activities – Education

	2020	2019
	£	£
Gross fees receivable	11,230,401	11,424,285
Less bursaries, scholarships and
awards	(706,256)	(652,892)
	-----------------------	-----------------------
	10,524,145	10,771,393
	==========	==========

21

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2020

5.	Total expenditure - 2020	Staff		Other	Total	Total
		Costs	Depreciation	Costs	2020	2019
		£	£	£	£	£
	Costs of raising funds
	Investment management
	costs	-	-	10,985	10,985	10,857
	Fundraising	-	-	27,564	27,564	25,259
		--------------	--------------------	------------------	----------------------	----------------------
	Total costs of raising funds	-	-	38,549	38,549	36,116
		=======	=========	=========	==========	==========
	Charitable activities
	Teaching	5,274,052	-	167,850	5,441,902	4,782,919
	Housekeeping, cleaning and catering	-	-	728,752	728,752	840,580
	Premises costs	115,261	468,279	1,424,473	2,008,013	2,041,597
	Support costs	1,181,201	-	1,002,971	2,184,172	2,053,735
		-------------------	--------------------	------------------	----------------------	----------------------
	Total charitable activities	6,570,514	468,279	3,324,046	10,362,839	9,718,831
		==========	==========	=========	==========	==========
	Total expenditure	6,570,514	468,279	3,362,595	10,401,388	9,754,947
		==========	==========	=========	==========	==========

Included within support costs above are governance costs of £13,100 (2019: £11,700) in respect of payments made to the auditors for audit services; and other services of £nil (2019: £nil).

Included within premises costs is £1,006,000 (2019: £914,342) in relation to operating lease payments.

Total expenditure - 2019	Staff		Other	Total	Total
	Costs	Depreciation	Costs	2019	2018
	£	£	£	£	£
Costs of raising funds
Investment management
costs	-	-	10,857	10,857	11,375
Fundraising	25,259	-	-	25,259	56,506
	--------------	--------------------	------------------	----------------------	----------------------
Total costs of raising funds	25,259	-	10,857	36,116	67,881
	=======	=========	=========	==========	==========
Charitable activities
Teaching	4,659,864	-	123,055	4,782,919	4,899,862
Housekeeping, cleaning and catering	-	-	840,580	840,580	588,688
Premises costs	82,089	412,875	1,546,633	2,041,597	2,097,808
Support costs	1,046,474	-	1,007,261	2,053,735	1,850,750
	-------------------	--------------------	------------------	----------------------	----------------------
Total charitable activities	5,788,427	412,875	3,517,529	9,718,831	9,437,108
	==========	==========	=========	==========	==========
Total expenditure	5,813,686	412,875	3,528,386	9,754,947	9,504,989
	==========	==========	=========	==========	==========

Included within support costs above are governance costs of £11,700 (2018: £11,325) in respect of payments made to the auditors for audit services; and other services of £nil (2018: £750).

Included within premises costs is £914,342 (2018: £941,833) in relation to operating lease payments.

22

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2020

5. Expenditure (continued)

Other Support costs can be analysed as follows:

Other Support costs can be analysed as follows:
	2020	2019
	£	£
Insurance	128,816	118,758
Printing, Postage and Stationery	136,228	194,518
Telephone and IT	206,573	140,168
Advertising	64,375	26,498
Catering, hospitality	36,123	47,746
Open days, certs, presentations, church services, founders day, flowers	15,755	27,200
PE court hire, transport	99,369	119,219
Recruitment, retention, training, welfare	111,568	91,696
Other	204,164	179,110
	--------------------	--------------------
	1,002,971	944,913
	==========	==========

6. Council

None of the Council (or any persons connected with them) received any remuneration or benefits from the College during the year (2019: none).

Employees	2020	2019
	Number	Number
Number of employees
The average monthly number of employees during the year was:
Teaching staff	80	78
Administration staff	39	33
	------------------	------------------
	119	111
	========	========
Employment costs	2020	2019
	£	£
Wages and salaries	4,907,924	4,587,372
Social security costs	522,796	493,396
Pension contributions	904,632	629,653
Termination and redundancy payments	60,141	-
	--------------------	--------------------
	6,395,493	5,710,421
	==========	==========
	2020	2019
	Number	Number
The number of employees whose remuneration was £60,000 or more were:
£60,000 - £70,000	7	3
£70,000 - £80,000	3	2
£80,000 - £90,000	4	2
£100,000 +	2	2
	=======	=======

7. Employees

The total remuneration of key management personnel in the year was £x (2019: £903,704).

23

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2020

8.	Tangible fixed assets					Leasehold
						Improvements
						£
	Cost
	At 1 September 2019					8,338,050
	Additions					211,904
						--------------------
	At 31 August 2020					8,549,954
						-------------------
	Depreciation
	At 1 September 2019					3,210,897
	Charge for the year					468,279
						--------------------
	At 31 August 2020					3,679,176
						--------------------
	Net book value
	At 31 August 2020					4,870,778
						==========
	At 31 August 2019					5,127,153
						==========
9.	Fixed asset investments	General	Designated	Restricted	Total	Total
		Funds	Funds	Funds	2020	2019
		£	£	£	£	£
	Market value at 1 September 2019	695,235	463,328	1,155,840	2,314,403	2,325,466
	Acquisitions at cost	112,759	50,218	198,295	361,272	67,773
	Disposals at opening book value	(112,561)	(55,433)	(164,746)	(332,740)	(65,431)
	Change in value in the year
	(including investment cash
	movements)	36,401	(48,390)	(64,023)	(76,012)	(13,405)
		--------------------	----------------	-------------------	--------------------	--------------------
	Market value at 31 August 2020	731,834	409,723	1,125,366	2,266,923	2,314,403
		==========	========	=========	==========	==========
10.	Debtors				Total	Total
					2020	2019
					£	£
	Fee debtors				2,650,892	2,660,774
	Other debtors				47,447	17,560
	Prepayments and accrued income				290,240	493,415
					---------------------	---------------------
					2,988,579	3,171,749
					==========	==========

24

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2020

11. Creditors: amounts falling due within one year

Creditors: amounts falling due within one year	Total	Total
	2020	2019
	£	£
Trade creditors	361,370	470,851
Taxes and social security costs	136,003	124,161
Fees receivable in advance & pupil deposits	4,435,436	4,741,633
Other creditors	264,615	244,048
Accruals	105,969	57,417
	-------------------	-------------------
	5,303,393	5,638,110
	=========	=========

Fees in advance represents fees invoiced due for the Michaelmas 2020 term.

Deposits are due on the pupil leaving the College after giving one term’s notice.

12. Pension Costs

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 £825,345 (2019: £554,091) and at the year-end £112,816 (2019: £56,770) 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. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

25

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2020

13. Restricted Funds

The income funds of the College include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

		Movement in Funds	Movement in Funds
				Net
	Balance at			investment	Balance at
	1 September			gains and	31 August
	2019	Income	Expenditure	transfers	2020
	£	£	£	£	£
Dedicated Scholarship Fund	553,865	29,482	-	(79,622)	503,725
Old Queens Bursary Trust Fund	601,975	24,411	-	(4,745)	621,641
Bursary donations	-	161,542	-	-	161,542
	--------------------	----------------	-------------------	--------------------	--------------------
	1,155,840	215,435	-	(84,367)	1,286,908
	==========	========	=========	==========	==========
		Movement in Funds
				Net
	Balance at			investment	Balance at
	1 September			gains and	31 August
	2018	Income	Expenditure	transfers	2019
	£	£	£	£	£
Dedicated Scholarship Fund	570,187	27,057	-	(43,379)	553,865
Old Queens Bursary Trust Fund	599,056	26,989	-	(24,070)	601,975
Piano fund	15,375	-	-	(15,375)	-
	--------------------	----------------	-------------------	--------------------	--------------------
	1,184,618	54,046	-	(82,824)	1,155,840
	==========	========	=========	==========	==========

The Dedicated Scholarship Fund represents income received from third parties with specific conditions as to who can qualify for the scholarships.

The Old Queen’s Bursary Trust Fund represents funds set up by Alumnae of the College which allows Pupils to apply for Bursaries to assist them to further their Education.

The piano fund represents income received for the purchase of a piano for the Prep School.

26

NOTES TO THE ACCOUNTS (continued)

QUEEN’S COLLEGE, LONDON

YEAR ENDED 31 AUGUST 2020

14. Designated funds

The income funds of the College include the following designated funds which have been set aside out of unrestricted funds by the Council of Queen’s College for specific purposes:

	Balance at					Balance at
	1 September					31 August
	2019	Income		Expenditure	Transfers	2020
	£	£		£	£	£
General Scholarship Fund	463,328		-	-	(53,605)	409,723
Repairs and Maintenance	200,000		-	-	-	200,000
Fund
Fixed Asset Fund	5,127,153		-	(468,279)	211,904	4,870,778
	--------------------	--------------------		--------------------	--------------------	--------------------
	5,790,481		-	(468,279)	158,299	5,480,501
	==========	==========		==========	=========	==========
	Balance at					Balance at
	1 September					31 August
	2018	Income		Expenditure	Transfers	2019
	£	£		£	£	£
General Scholarship Fund	472,882		-	-	(9,554)	463,328
Repairs and Maintenance	161,295		-	-	38,705	200,000
Fund
Fixed Asset Fund	-		-	-	5,127,153	5,127,153
	--------------------	--------------------		--------------------	--------------------	--------------------
	634,177		-	-	5,156,304	5,790,481
	==========	==========		==========	=========	==========

The General Scholarship Fund represents income received from investments and is to provide scholarships to pupils on a discretionary basis.

The Repairs and Maintenance Fund represents monies set aside for the future upkeep and maintenance of the College site.

The Fixed Asset Fund represents the net book value of tangible fixed assets which are held for the long term operation of the School and are therefore separate from the School’s free reserves.

15. Analysis of net assets between funds

	Unrestricted	Designated	Restricted
	Funds	Funds	Funds	Total
	£	£	£	£
Fund balances at 31 August 2020 are
Represented by:
Tangible fixed assets	-	4,870,778	-	4,870,778
Investments	731,834	409,723	1,125,366	2,266,924
Current assets	6,000,637	200,000	161,542	6,362,179
Creditors: amounts falling due
within one year	(5,303,393)	-	-	(5,303,393)
	-------------------	-------------------	--------------------	--------------------
	1,429,078	5,480,501	1,286,908	8,196,487
	=========	=========	==========	==========

27

NOTES TO THE ACCOUNTS (continued)

QUEEN’S COLLEGE, LONDON

YEAR ENDED 31 AUGUST 2020

15. Analysis of net assets between funds (continued)

		Unrestricted	Designated	Restricted
		Funds	Funds	Funds	Total
		£	£	£	£
	Fund balances at 31 August 2019 are
	Represented by:
	Tangible fixed assets	-	5,127,153	-	5,127,153
	Investments	695,235	463,328	1,155,840	2,314,403
	Current assets	5,813,611	200,000	-	6,013,611
	Creditors: amounts falling due
	within one year	(5,638,110)	-	-	(5,638,110)
		-------------------	-------------------	--------------------	--------------------
		870,736	5,790,481	1,155,840	7,817,057
		=========	=========	==========	==========
16.	Commitments under operating leases			Land and	buildings
				2020	2019
				£	£
	Amounts due in:
	Less than one year			983,600	983,600
	Between two and five years			3,934,400	3,934,400
	More than five years			45,815,200	46,798,800
				-----------------------	-----------------------
				50,733,200	51,716,800
				===========	===========

The lease for the two prep school properties runs for approximately another 20 years, and the lease on the Main School property expires in 2125.

17. Related parties

There were no related party transactions to note in the current or prior year.

18. Control

The College is controlled by the Council of Queen’s College, London.

28

QUEEN’S COLLEGE, LONDON

NOTES TO THE ACCOUNTS (continued)

YEAR ENDED 31 AUGUST 2020

19. Comparative Statement of Financial Activities

	Unrestricted	Restricted	Total
	Funds	Funds	2019
	£	£	£
INCOME FROM:
Donations and legacies	409	-	409
Investments	50,827	54,046	104,873
	--------------------	--------------------	--------------------
	51,236	54,046	105,282
Charitable activity
Education	10,771,393	-	10,771,393
	--------------------	--------------------	--------------------
Total income	10,822,629	54,046	10,876,675
	--------------------	--------------------	--------------------
EXPENDITURE ON:
Raising funds	36,116	-	36,116
Charitable activity
Education	9,718,831	-	9,718,831
	---------------------	--------------------	---------------------
Total expenditure	9,754,947	-	9,754,947
	---------------------	--------------------	---------------------
Net income before net losses on
investments	1,067,682	54,046	1,121,728
Net losses on investments	(17,053)	(34,608)	(51,661)
	---------------------	--------------------	---------------------
Net income	1,050,629	19,438	1,070,067
Transfers between funds	48,216	(48,216)	-
	---------------------	--------------------	---------------------
Net movement in funds	1,098,845	(28,778)	1,070,067
Fund balances at 1 September 2018	5,562,372	1,184,618	6,746,990
	--------------------	--------------------	---------------------
Fund balances at 31 August 2019	6,661,217	1,155,840	7,817,057
	==========	==========	==========

29