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2021-08-31-accounts

The Cavendish School Charitable Trust Limited

Annual Report and Financial Statements

31 August 2021

Company Limited by Guarantee Registration Number 987480 (England and Wales) Charity Registration Number 312727

CONTENTS

Reports
Legal and administrative information 1
Governors’ report (incorporating a
strategic report) 3
Independent auditor’s report 15
Financial Statements
Statement of financial activities 20
Balance sheet 21
Statement of cash flows 22
Principal accounting policies 23
Notes to the financial statements 26

The Cavendish School Charitable Trust Limited

LEGAL AND ADMINISTRATIVE INFORMATION

Governors
Head
Secretary
Bursar and Clerk to the Governors
Registered Principal office
Telephone
Website
Company registration number
Charity registration number
Auditors		 S Bettison
B Crystal
G Fontaine (appointed 21 September 2020)
A M Gotto (Co-Chair of Governors)
K Hake
D Matthews (Chair of Finance and General Purposes
Committee, resigned 9 December 2020)
E Molnar (appointed 21 September 2020)
J Owen (resigned 18 January 2021)
A Pangonis
D Phillips (Chair of Finance and General Purposes
Committee, appointed 9 December 2020)
A Poole (resigned 9 December 2020)
N Rushton (Co-Chair of Governors)
A Tsoi (appointed 6 April 2021)
M Webster
J Rogers (resigned 4 January 2021)
I Boyt (interim Co-Head, Spring term 2021)
R Pritchett (interim Co-Head, Spring term 2021)
T Lombard (appointed 15 April 2021)
S Chen Cooper
S Chen Cooper
The Cavendish School
31 Inverness Street
London
NW1 7HB
020 7485 1958
www.cavendishschool.co.uk
987480 (England and Wales)
312727
Moore Kingston Smith LLP
Devonshire House
60 Goswell Road
London
EC1M 7AD

1

LEGAL AND ADMINISTRATIVE INFORMATION

Bankers Lloyds TSB Bank plc 140 Camden High Street London NW1 0NG Solicitors Harrison Clark Rickerbys Ltd Ellenborough House Wellington Street Cheltenham GL50 1YD

Bankers

2

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

The Governors (who are also directors of The Cavendish School Charitable Trust for the purposes of company law and trustees for the purposes of charity law) present their statutory report together with the financial statements of The Cavendish School Charitable Trust Limited (company registration number 987480 (England and Wales)) (the “charitable company”) for the year ended 31 August 2021.

The report has been prepared in accordance with Part 8 of the Charities Act 2011.

The financial statements have been prepared in accordance with the accounting policies set out on pages 20 to 34 of the attached financial statements and comply with the charitable company’s memorandum and articles of association, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Legal status

The charitable company is constituted as a company limited by guarantee and not having a share capital. The members, who are also Governors, are liable to contribute an amount not exceeding £1 each on the event of winding up.

The charitable company was incorporated on 20 August 1970 by Memorandum of Association.

Principal aims and objects

The principal aims and objects of the charitable company are the advancement and promotion of education and, in particular, the running of The Cavendish School in Camden Town, London (the “school”).

Mission

We aim to provide:

3

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

Through:

We see ourselves as a caring, inclusive, non-selective community of individuals who enjoy working together to support and appreciate each other’s personal development and love of learning. We are committed to providing equality of opportunity.

Public benefit

The Charities Act 2006 made changes which affect the school, principally removing the presumption in law that education is for public benefit. The effect of this is a requirement that educational charities demonstrate the public benefit they provide. The Charity Commission has provided guidelines on the changes together with an analysis of the law affecting charities. These documents have been considered by the Governors, who are confident that the charitable company is operating in the interest of the public. Furthermore, the object of the charitable company is the advancement and promotion of education, specifically the running of the Cavendish School for, but not exclusively for, children of the Roman Catholic faith, which is a charitable purpose within the meaning of the Charities Act 2011.

This report is designed to meet the Charity Commission’s requirement to describe the public benefit provided by the charitable company. The paragraphs below describe the various ways in which the Governors believe that the charitable company provides public benefit.

4

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

Public benefit (continued)

We estimate that the value of these actions is approximately £60,000, equivalent to around 2% of the total revenues of the school.

5

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

STRATEGIC REPORT

Governance, structure and management

♦ Governance

The Board of Governors is responsible for setting aims and agreeing on a strategy for the school, recruiting and assessing senior management and for ensuring frameworks exist to meet legal, financial and regulatory obligations. Management of the school is the responsibility of the Head and the management team.

The school has a rolling programme for reviewing procedures and policies. All are reviewed at least once every three years or more frequently should changes in legislation or circumstance require.

The Governors would like to express their thanks to the Head, Senior Management Team and the entire staff for their hard work during the year, for the progress that has been made in the school during the period and for their considerable efforts during the period of national lockdown. The Governors also thank the parents and carers who contribute so willingly and generously to the life of the school and to all the officers of the Friends of the Cavendish (see later).

The following officers served throughout the year, except where shown:

Governors Appointed/Resigned
S Bettison
B Crystal
D Phillips
G Fontaine Appointed 21 September 2020
A M Gotto
K Hake
D Matthews Resigned 9 December 2020
E Molnar Appointed 21 September 2020
J Owen Resigned 18 January 2021
A Pangonis
A Poole Resigned 9 December 2020
N Rushton
A Tsoi Appointed 6 April 2021
M Webster
Secretary
S Chen Cooper

6

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

STRATEGIC REPORT (continued)

Governance, structure and management (continued)

None of the Governors received any remuneration in respect of their services as governors during the year (2020 - £nil).

Out of pocket expenses of £485 were reimbursed to three Governors during the year (2020 - £nil).

Five (2020 - five) Governors who are also parents had children attending the school during the financial year. Fees paid by the Governors are the same as fees paid by others. At the year end the School was owed £nil (2020: £357) by any Governor.

The school has purchased insurance to protect the school from loss arising from the neglect or defaults of its Governors. The insurance premium payable by the school during the year totalled £1,195 (2020 - £1,038) and provides cover of up to a maximum of £2 million.

♦ Appointment of Governors and training procedures

New Governors are elected by a consensus of existing Governors and may serve for a period of three years before being required to stand for re-election.

The Governors have put in place a system whereby individual Governors have nominated links with individual teachers and curriculum areas to enhance the links between Governors and the teaching staff and with the responsibility for Early Years Foundation Stage (E.Y.F.S.), safeguarding, health and safety and compliance.

The Governors are members of the Association of Governing Bodies of Independent Schools. The Governors are offered the opportunity to attend seminars and conferences and regular training to maintain their expertise in governance issues.

The Governors consider that they, together with Head and the Senior Management Team, comprise the key management of the charity in charge of directing and controlling, running and operating the school on a day-to-day basis.

The remuneration of key management personnel is set by the Finance and General Purposes Committee and is confirmed by the Governing Body. Note is taken of market conditions, national and local pay scales and levels of performance.

The Head and the Bursar have annual reviews where their targets are agreed/reviewed with Governors. The rest of the Senior Management Team have biennial performance reviews where their targets are agreed/reviewed with the Head.

7

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

STRATEGIC REPORT (continued)

Governance, structure and management (continued)

The Senior Management Team consists of:

R Pritchett Assistant Head & Head of Expressive Arts I Boyt Deputy Head (Pastoral) H Edwards Director of Studies J Hodgson Director of Studies C Roche Director of Sections S Chen Cooper Bursar & Clerk to the Governors

♦ Committees

The general school governance continued with regular Board and sub-committee meetings.

The composition of the sub-committees for this year was as follows:

Education Finance & General Purposes S Bettison B Crystal G Fontaine (Appointed 21 September D Matthews (Resigned 9 December 2020) 2020) E Molnar (Appointed 21 September 2020) A Gotto D Phillips (Chair) K Hake A Poole (Resigned 9 December 2020) J Owen (Resigned 18 January 2021) A Tsoi (Appointed 6 April 2021) M Webster (Chair)

The two Co-Chairs of Governors are ex-officio members of both committees.

♦ Statement of Governors’ responsibilities

The Governors (who are also directors of The Cavendish School Charitable Trust for the purposes of company law and trustees for the purposes of charity law) are responsible for preparing the Governors’ report, the strategic report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. Under company law, the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

8

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

STRATEGIC REPORT (continued)

Governance, structure and management (continued)

In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Governors confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Governors are responsible for the maintenance and integrity of the financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

9

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

STRATEGIC REPORT (continued)

Governance, structure and management (continued)

♦ Working with other organisations

Friends of the Cavendish

The Governors reiterate their gratitude to the Friends of the Cavendish for their support during the year. Fundraising on behalf of the school this year has been suspended owing to the pandemic but was resumed in September 2021.

♦ Risk management

In line with the requirement for Governors to undertake a risk assessment exercise and report on the same in their annual report, the Governors have looked at the risks the school currently faces and have reviewed the measures already in place, or needing to be put in place, to deal with them. The Governors have identified four main areas where risks may occur:

Strategic considers the long term health of the school. It is concerned with areas such as pupil numbers, staff recruitment and retention, quality of management, financial management and identification of changes to the school environment.

Operational looks at the risks inherent in the school’s activities including the operation of its school – reputational, communication with parents, training, the suitability of teaching resources and buildings, maintenance, health and safety, safeguarding of children, disaster planning, etc.

Along with all other organisations which work with children, the Governors recognise the absolute necessity of ensuring the protection and safety of all those the school serves. This means that all staff, including peripatetic staff, have to undergo a check with the Disclosure and Barring Service (previously the Criminal Records Bureau) and other extensive pre-recruitment checks. In addition to this, all staff receive child protection training which is updated a minimum of once per year. Additionally, there is a designated Governor assigned to safeguarding children.

The safeguarding policy aims to outline the role that The Cavendish School has, the procedure that staff should follow and the guidance issued on pupil protection generally. All staff must ensure that the needs and safety of the pupils are at the forefront of their practice. In their day-to-day contact with individual pupils, teachers and other staff are particularly well placed to observe outward signs of abuse, changes in behaviour or failure to thrive.

Financial risks include those relating to budgetary control, fraud and money laundering, spending, accounting, borrowing policies, etc. and the need to ensure adequate cash flow coverage and reserves to meet future needs.

10

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

STRATEGIC REPORT (continued)

Governance, structure and management (continued)

Long-term forecasting of pupil numbers continues to be difficult and Governors are mindful of the continuing need to raise the profile of the school, to maintain and further enhance good working practices and to continue to achieve an Excellent grading in inspections. The Senior Management Team, overseen by Governors, works with an Admissions and Marketing Officer to oversee marketing strategies and ensure that they are aligned with the key strategic aims:

  1. To develop the business model.

  2. To improve the quality of provision.

  3. To develop structures to support the plan.

Regulatory looks at the effects of government policies, the consequences of new laws and regulations, etc.

Activities, specific objectives and relevant policies

The principal activity of the charitable company in the year under review was the running of The Cavendish School, which was originally established to provide a Catholic education for girls aged between three and eleven with sibling boys to age seven.

The Governors would like to thank all the parents for their much-valued contribution to the school community. Parents have participated in activities such as fundraising for local and international charities, tuck shop, library, uniform sales and educational visits as well as sharing the benefits of their professional expertise.

Financial review

Results for the year

Income for the year was £3,373,554 (2020– £3,635,451), including £3,285,235 (2020 – £3,444,822) in respect of gross school fees and £50,786 (2020 – £46,958) in respect of total bursaries. Expenditure was £3,283,845 (2020 – £3,485,856). Expenditure includes £2,439,434 (2020 – £2,653,658) in respect of staff costs; £25,717 (2020 – £28,528) for interest on the bank loans and £178,011 (2020 – £186,391) in respect of depreciation charges.

The net income for the year was £89,709 (2020 – £149,595).

11

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

STRATEGIC REPORT (continued)

Financial review (continued)

Reserves policy

The Governors have examined the requirement for free reserves (also referred to as the general fund), i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The Governors consider that, given the nature of the school’s work, the level of free reserves should be equivalent to the termly expenditure at any one time. Based on current expenditure levels this should be in the region of £1,000,000. The Governors are of the opinion that this level of reserves would provide sufficient flexibility to respond to unforeseen emergencies whilst specific action plans are implemented. In addition, the school retains a healthy cash reserve that is capable of meeting anticipated future liabilities.

Financial position

The balance sheet shows total funds of £4,912,490.

The tangible fixed assets fund of £3,728,946 which represents the net book value of the school’s tangible fixed assets less the related borrowings.

General funds of the school at 31 August 2021 are £1,034,796 and the Head’s Discretionary fund was £6,064.

The designated Hardship Fund set up in response to the COVID-19 pandemic continued to support pupils and their families in the Autumn and Spring terms. The year-end balance of the Hardship fund was £83,959.

Overall, the Governors consider the affairs of the school to be satisfactory but they are aware of the need to monitor its resources closely; the potential financial issues facing independent schools; and the need to constantly monitor budgets and forecasts.

Fixed assets

The main asset of the school is the freehold building.

Acquisitions and disposals of fixed assets during the year are recorded in the notes to the financial statements.

Summary

2020-2021 has been one of the most challenging financial years in the recent history of the School. The marginal negative effect of Brexit was fully compounded by the impact of Covid-19 as families reassessed both their financial commitments and the location of their school. Nonetheless, the School’s financial health has remained strong, generating a £90k surplus for the year. This leaves the school with a general reserve of £1.035m, representing more than one term’s expenditure as required by our reserves policy, and a cash balance of £2.3m.

12

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

STRATEGIC REPORT (continued)

Financial review (continued)

Income fell by 7% year-on-year, largely driven by a fall in pupil numbers from 239 to 215. Acknowledging the economic uncertainty, the school elected to keep fees unchanged for the year but chose not to offer a discount during the Spring lock-down period given the comprehensive remote teaching offering.

At the same time, the school was able to adjust its costs down 6% year-on-year by electing not to replace some departing staff and reducing expenditure on materials, equipment, food and energy. While the School used the Government scheme to furlough some staff, this was kept to a minimum as the school remained open for children of key workers – approximately 25% of pupils.

Looking forward, challenges remain. Pupil numbers fell again slightly during the summer break, mirroring the situation across the market, although there are indications this is stabilising. Additionally, the proposed removal of business rate relief, due to occur in April 2023, represents a significant future headwind at an estimated additional cost of £160k a year.

Nevertheless, the Board remains committed to maintaining a disciplined and prudent approach to financial management. Fees for 2021-2022 were increased by 4.9%, configured to deliver a surplus on a conservative pupil forecast while remaining at the competitive end of market pricing. During the Summer term the Finance Committee also closely reviewed outstanding debt and finance costs, determining they remain very manageable while offering flexibility.

Acknowledgement

The Governors would like to express their thanks to those Cavendish leavers who generously donated their deposits to the school’s Bursary Fund.

Future plans

Notwithstanding the return to in-person teaching and the relaxation of Covid restrictions, the Governors remain very aware of the potential and actual challenges facing the school over the next twelve months. These include the possibility of future Government-imposed lockdowns and a return to remote learning.

However, much was learned during the first lockdown, resulting in very successful remote provision during the lockdown in early 2021, and the Governors are confident that, should this happen again, teaching can be moved online seamlessly and with very little disruption to the curriculum.

The new Head has been in post since April 2021 and has proved a great success so far. There is a palpable sense of energy and excitement in the school and the Governors are very much enjoying working with her.

As a result of both Brexit and the pandemic, a considerable number of families have left the school over the past eighteen months and the financial challenges resulting from these lower pupil numbers, which are affecting schools throughout the independent education sector, are a particular focus for the new Head and the Governors. There is a strong emphasis on developing marketing initiatives, in particular increasing the School’s social media presence in the most effective way in order to reach as wide a range of potential applicants as possible. This includes emphasising the strength of the School community and its non-selective ethos, both of which it is believed will appeal to families as the country emerges from the pandemic.

13

GOVERNOR’S REPORT (including a Strategic Report) For the year ended 31 August 2021

The School will continue to offer its broad and balanced curriculum and provide its numerous enrichment opportunities for the pupils, including exciting changes such as a greater use of Regent’s Park for outdoor activities introduced by the new Head.

Developing strong relationships with the heads of a broad range of secondary schools is another area of focus for the new Head, and the school’s commitment to matching Year 6 girls to the secondary school most suitable to them will continue.

Governor’s report (including the strategic report) approved by the Governors and signed on their behalf by:

A Gotto and N Rushton

Governors of The Cavendish School Charitable Trust Company registration number 987480 (England and Wales)

Approved by the Governors on:

14

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED For the year ended 31 August 2021

Opinion

We have audited the financial statements of The Cavendish School Charitable Trust Limited (‘the company’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 charitable company 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 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.

15

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED For the year ended 31 August 2021

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the 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.

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 course of 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 themselves. 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the governors’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

16

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED For the year ended 31 August 2021

Responsibilities of trustees

As explained more fully in the governors’ responsibilities statement set out on pages 8 & 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

17

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED

For the year ended 31 August 2021

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities,

including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material

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INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE CAVENDISH SCHOOL CHARITABLE TRUST LIMITED

For the year ended 31 August 2021

misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shivani Kothari (Senior Statutory Auditor)

16 December 2021

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road

London

EC1M 7AD

19

The Cavendish School Charitable Trust Limited

STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure statement) for the year ended 31 August 2021

Notes
INCOME FROM:
Charitable Activities
School fees
3
Other educational income
4
Other income
5
Other trading income
Other activities
Investments
6
Investment Income
Voluntary sources
7
Grants and donations
Total income and endowments
EXPENDITURE ON:
Costs of raising funds
8
Interest and other costs
Charitable activities
8
Education
Total expenditure
8
Net operating income/(expenditure)
Net income/(expenditure)
Transfer between funds
Net movement in funds
Fund balances brought forward
Fund balances carried forward
18, 19		 Unrestricted /
Designated
funds
£
3,232,333
35,487
19,508
1,498
401
6,394		 Restricted
funds
£
2,116
-
-
-
-
75,817		 Total
2021
£
3,234,449
35,487
19,508
1,498
401
82,211		 Total
2020
£
3,397,864
112,092
14,516
3,843
3,408
103,728
3,295,621 77,933 3,373,554 3,635,451
25,717
3,208,229		 -
49,899		 25,717
3,258,128		 28,528
3,457,328
3,233,946 49,899 3,283,845 3,485,856
61,675 28,034 89,709 149,595
61,675
13,405		 28,034
(13,405)		 89,709
-		 149,595
-
75,080
4,778,685		 14,629
44,096		 89,709
4,822,781		 149,595
4,673,186
4,853,765 58,725 4,912,490 4,822,781

The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The accompanying notes form part of these financial statements.

Page 20

The Cavendish School Charitable Trust Limited

BALANCE SHEET as at 31 August 2021

NCE SHEET
31 August 2021
Notes
FIXED ASSETS
Tangible assets
13
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS:Amounts falling due after more than one year
16
NET ASSETS
FUNDS
Restricted Funds
19
Unrestricted Funds – General
19
Head's Discretionary Fund
18
Hardship Fund
18
Tangible Fixed Asset Fund
18		 2021
£
4,290,332		 2020
£
4,448,155
4,290,332
54,459
2,300,218		 4,448,155
77,595
1,943,072
2,354,677
(866,180)		 2,020,667
(680,245)
1,488,497 1,340,422
5,778,829
(866,339)		 5,788,577
(965,796)
4,912,490 4,822,781
58,725
1,034,796
6,064
83,959
3,728,946		 44,096
873,266
4,921
83,959
3,816,539
4,912,490 4,822,781

Approved and authorised for issue by the Board of Governors on ........................................... and signed on their behalf by:

A Gotto and N Rushton

Governors of The Cavendish School Charitable Trust Company registration number 987480 (England and Wales)

The accompanying notes form part of these financial statements.

Page 21

The Cavendish School Charitable Trust Limited

CASHFLOW STATEMENT

for the year ended 31 August 2021

HFLOW STATEMENT
e year ended 31 August 2021
CASH FLOW STATEMENT
Notes
Net cash inflow from operating activities
23
Cash flows from investing activities:
Bank interest received
Payments to acquire fixed assets
Net cash outflow from investing activities
Financing:
Loans repaid
Interest repaid
Net cash outflow from financing activities
Increase/(decrease) in cash
beginning of the reporting period
end of the reporting period
Cash and cash equivalents at the
Cash and cash equivalents at the		 2021
£
472,292
401
(20,189)		 2020
£
194,339
3,408
(44,561)
(19,788) (41,153)
(69,641)
(25,717)		 (66,985)
(28,528)
(95,358) (95,513)
357,146
1,943,072		 57,673
1,885,399
2,300,218 1,943,072

Page 22

The Cavendish School Charitable Trust Limited

ACCOUNTING POLICIES

for the year ended 31 August 2021

The Cavendish School Charitable Trust Limited is a company limited by guarantee with registered number 987480, incorporated and domiciled in England and Wales. Its registered office is The Cavendish School, 31 Inverness Street, London, NW1 7HB.

1.1 BASIS OF PREPARATION

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

These financial statements are prepared on the going concern basis, under the historical cost convention as modified by the revaluation of investments and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been applied consistently throughout the year, are set out below.

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The school is dependent on pupils applying to it and on parents to pay their fees. Long term forecasting of pupil numbers is difficult but work continues to raise the profile of the school and to maintain and enhance the relationships with parents, feeder schools and nurseries and destination schools. The impact of the COVID-19 pandemic creates uncertainty over pupil numbers and its impact on the parents' ability to continuing paying school fees for the foreseeable future. However, the school has produced forecasts for at least 12 months from the date of approval of these financial statements which show that the school will have sufficient funds to continue operating as a going concern.

As such the School can expect to be able to meet its liabilities as they fall due in the period of at least 12 months from the date of approval of these accounts. However, there can be no certainty in relation to these matters.

On this basis the Governors have concluded that the School is a going concern. The financial statements do not include any adjustments that would result from the School not being able to meet its liabilities as they fall due.

1.3 COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee, the guarantors at the present time being the Governors, to the extent of £1 each.

1.4 FEES RECEIVABLE AND SIMILAR INCOME

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the school.

1.5 DONATIONS AND FUND ACCOUNTING

Donations received for the general purposes of the school are included as unrestricted funds. Donations restricted by the wishes of the donor or the terms of an appeal are taken to restricted funds. Donations required to be retained as capital in accordance with the donor’s wishes are accounted for as endowments – permanent or expendable according to the nature of the restriction.

1.6 EXPENDITURE

Expenditure is allocated to expense headings, which aggregate all costs relating to the category either on a direct cost basis, or apportioned according to time spent.

Liabilities are recognised as soon as there is a legal or constructive obligation committing the school to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and includes any attributable VAT which cannot be recovered. All expenses are allocated or apportioned to the applicable expenditure headings. Expenditure on charitable activities comprises expenditure on the provision of education.

Governance costs comprise the costs of running the Trust, including strategic planning for its future development, external audit, and all other costs of complying with constitutional and statutory requirements.

Page 23

The Cavendish School Charitable Trust Limited ACCOUNTING POLICIES

for the year ended 31 August 2021

1.7 TEACHING COSTS

The cost of teaching and support staff salaries, including pension and national insurance costs, books, other tuition expenses and IT support.

1.8 FIXED ASSETS AND DEPRECIATION

All fixed assets are used in direct furtherance of the school’s objectives. Fixed assets are included in these financial statements at their original cost less depreciation and accumulated impairment losses provided to date.

Assets that are expected to have a useful economic life of less than one year and cost less than £2,000 are not capitalised and are written off in the year of purchase.

Freehold property is depreciated at a rate of 2% per annum on a straight-line basis in order to write the buildings off over their estimated useful economic lives to the school. Certain improvements to property are depreciated on a straight-line basis in order to write off the costs over a period of fifteen years.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the costs less estimated residual value of each asset, by equal annual instalments, over their expected useful lives which are considered to be:

Furniture and general office equipment -10 years 10% - 20% per annum based on cost Computer and IT -3 years 33.3% per annum based on cost Piano -30 years 3.33% per annum based on cost

The cost of freehold property represents the historical value recorded in the books of £5,849,407. The council are of the opinion that the current value of the school's land and building is substantially in excess of the figure shown in the financial statements. The buildings have an insured value of £16,638,052 (2020: £16,039,737).

1.9 PENSIONS

Full-time and part-time teaching staff employed under a contract of service are eligible to contribute to the Teachers’ Pension Scheme (TPS). The TPS, a statutory, contributory, final salary scheme is administered by Capita Teachers’ Pensions on behalf of the Department for Education and Skills.

Costs include normal and supplementary contributions. The regular cost is the normal contribution, expressed as a percentage of salary of a teacher newly entering service, which would defray the cost of benefits payable in respect of that service. Variations from the regular pension cost are met by a supplementary contribution. This occurs if, as a result of the actuarial investigation, it is found that the accumulated liabilities for benefits to past and present teachers are not fully covered by normal contributions to be paid in the future and by the fund built up from past contributions. The normal and supplementary contributions are charged to the income and expenditure account in the year.

The School participated in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff, however from 1 September, after a period of consultation the school took the decision to leave the TPS and put in place an alternative defined contribution scheme with AVIVA for the teaching staff.

The school also pays contributions into a Group Personal Pension Scheme for Support staff. The Scheme is a defined contribution pension scheme. The assets of the Scheme are held separately from those of the School in an independently administered fund. The Pension Scheme charge represents contributions payable by the school in accordance with the rules of the Scheme.

1.10 LEASES AND HIRE PURCHASE CONTRACTS

Where assets are financed by finance leases and hire purchase agreements the assets are included in the Balance Sheet at cost less depreciation in accordance with the school’s normal accounting policy. The present value of future rentals is shown as a liability. The interest element of rental obligations is charged to the Statement of Financial Activities over the period of the lease in proportion to the balance of capital payments outstanding.

Rentals paid under operating leases are charged to the Statement of Financial Activities evenly over the period of the lease.

1.11 CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.12 FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 14, 15 and 16 for the debtor and creditor notes.

Page 24

The Cavendish School Charitable Trust Limited

ACCOUNTING POLICIES

for the year ended 31 August 2021

1.13 TAXATION

The company is a registered charity and is exempt from taxation as afforded by Section 505 ICTA 1988.

1.14 EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense.

In the application of the company's accounting policies, the Council is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going 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 affects both current and future periods.

In the opinion of the Council of Management, the estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements

Useful economic lives

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment and note 1.8 for the useful economic lives for each class of asset.

Recoverable value of fee debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the debtors and associated impairment provision.

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements.

Page 25

The Cavendish School Charitable Trust Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

3 FEE INCOME
The School’s activities are carried out within the UK.
The school's fee income comprised:
Gross fees
Less: C-19 discount
Less: Bursaries paid for from restricted funds
Less: Unrestricted bursaries		 2021
£
3,285,235
-
(2,116)
(48,670)		 2020
£
3,619,561
(174,739)
(20,392)
(26,566)
3,234,449 3,397,864

Included within the above is an amount of £2,116 (2020: £4,351) which is supported by restricted income.

4 OTHER EDUCATIONAL INCOME

4 OTHER EDUCATIONAL INCOME
Extras and disbursements
Registration fees
Fees in lieu of notice
Other income
5 OTHER TRADING INCOME
Rent and lettings
Other income
6 INVESTMENT INCOME
Interest received
7 DONATIONS AND GRANTS
Donations and gifts
Furlough grant
Other grants		 2021
£
23,647
8,100
-
3,740		 2020
£
81,860
8,600
-
3,752
35,487 94,212
2021
£
19,508
1,498		 2020
£
14,516
3,843
21,006 18,359
2021
£
401		 2020
£
3,408
401 3,408
2021
£
30,488
3,488
48,235		 2020
£
25,291
48,322
47,995
82,211 121,608

Included within the above is an amount of £77,933 (2020: £52,673) which relates to restricted income.

Page 26

The Cavendish School Charitable Trust Limited

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

8 EXPENDITURE

(a)
Charitable expenditure
Teaching
Welfare
Premises and Estates
Administration
Finance Costs
Governance
Total Charitable Expenditure		 £
1,952,051
8,474
-
478,909
-
-
Staff costs
(note 9)		 Other
£
98,254
177,798
245,386
104,455
25,717
14,790		 Depreciation
£
49,879
-
128,132
-
-
-		 Total
2021
£
2,100,184
186,272
373,518
583,364
25,717
14,790
2,439,434 666,400 178,011 3,283,845

Included within £3,283,253 is an amount of £49,899 (2020: £42,311) relating to restricted expenditure.

Charitable expenditure
Teaching
Welfare
Premises and Estates
Administration
Finance
Governance
Total Charitable Expenditure
(b)
Other Governance Costs include:
Auditors' remuneration
- Audit Fees
- Other Auditors remuneration
(c)
Administration & Finance Costs
Salaries
National Insurance
Pension Costs
Other Staff Costs
Subscriptions
Staff travel
Operating Leases
IT support
Postage and stationery
Telephones
Marketing and advertising
Depreciation
Legal and Professional Fees
Other Administration Costs
Bank charges and interest		 £
2,192,551
8,697
-
452,410
-
-
Staff costs
(note 9)		 Other
£
112,788
147,688
236,200
101,982
28,528
18,621		 Depreciation
£
55,007
-
131,384
-
-
-		 Total
2020
£
2,360,346
156,385
367,584
554,392
28,528
18,621
2,653,658 645,807 186,391 3,485,856
2021
£
13,500
1,290		 2020
£
13,150
5,471
2021
£
391,773
43,136
33,329
10,671
24,457
7
14,466
3,711
1,743
5,776
3,945
-
20,888
29,426
25,753		 2020
£
374,319
40,958
32,653
4,480
16,855
324
2,155
2,400
630
5,576
840
-
50,231
22,862
28,637
609,081 582,920

Page 27

The Cavendish School Charitable Trust Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2021

TES TO THE FINANCIAL STATEMENTS
he year ended 31 August 2021
9 STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
Other staff costs		 2021
£
1,931,160
205,589
250,294
52,391		 2020
£
2,047,220
215,828
353,294
37,316
2,439,434 2,653,658

The number of employees who received remuneration under redundancy and settlement costs were 1 (2020: 0) which totalled £4,859 (2020: £nil).

The average monthly number of employees during the year was as follows:

Teaching
Support
£60,000 in the year was as follows:
£60,000 - £70,000
£80,001 - £90,000
£90,001 - £100,000
£110,001 - £120,000
£120,001 - £130,000
£130,001 - £140,000
The number of employees whose emoluments		 2021
No.
43
9		 2020
No.
50
9
52 59
2021
No.
1
1
-
1
-		 2020
No.
2
-
1
-
1
3 4

Pension contributions for the year amounted to £86,813 (2020: £61,003) for the above employees.

Key management personnel include the Governors and the senior executives which are made up 5 members of the Senior Leadership Team including the head and the bursar. The total pay and benefits received by management personnel were £419,275 (2020 £460,781).

Page 28

The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

10 PENSIONS

The School participated in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff, however from 1 September, after a period of consultation the school took the decision to leave the TPS and put in place an alternative defined contribution scheme with AVIVA for the teaching staff. The pension charge for the year includes contributions payable to the TPS and AVIVA scheme of £216,965 (2020: £320,642) and at the year-end £22,435 (2020: £36,760 was accrued in respect of contributions to the TPS) was accrued in respect of contributions to the AVIVA 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.

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 the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

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 consultation and the cost cap mechanism review are 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 runs a scheme for its non-teaching staff, which is a defined contributions scheme. The cost for the year represents the School's contributions to the scheme of £33,329 (2020: £32,653) and at the year end £5,280 (2020: £6,118) was accrued in respect of contributions to this scheme.

11 GOVERNORS REMUNERATION AND BENEFITS

There were no Governors' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

Travel and other reimbursements of £485 (2020: £nil) for the governors were paid by the charity during the year.

12 NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2021 2020
£ £
Net income is stated after charging:
Depreciation of tangible fixed assets 178,012 186,391
Operating lease rentals – other 14,466 2,155
Auditor’s remuneration
Audit services for the school- current year 13,500 13,150
Non-audit services 1,415 1,250

Page 29

The Cavendish School Charitable Trust Limited

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

13 TANGIBLE FIXED ASSETS

3
TANGIBLE FIXED ASSETS
Cost:
At 1 September 2020
Additions
At 31 August 2021
Depreciation:
At 1 September 2020
Charge for year
At 31 August 2021
Net book value:
At 31 August 2021
At 1 September 2020
14 DEBTORS
Fees and extras
Less provision for doubtful debts
Prepayments and accrued income
15 CREDITORS
Amounts falling due within one year:
Loans
Trade creditors
Taxation and social security costs
Fee Deposits
Fees in advance
Other creditors
Accruals
Deferred income:
Brought forwards
Released in year
Received in year
Carried forwards		 Freehold
Property
£
5,617,571
1,411		 Plant
&
Equipment
£
17,718
-		 Fixtures
&
Fittings
£
303,812
18,778		 Total
£
5,939,101
20,189
5,618,982 17,718 322,590 5,959,290
1,308,090
128,133		 2,880
590		 179,976
49,289		 1,490,946
178,012
1,436,223 3,470 229,265 1,668,958
4,182,759 14,248 93,325 4,290,332
4,309,481 14,838 123,836 4,448,155
2021
£
7,503
-
46,956		 2020
£
57,267
(36,189)
56,517
54,459 77,595
2021
£
72,637
51,026
49,313
83,000
563,757
27,715
18,732		 2020
£
69,821
6,328
56,787
44,600
439,424
42,878
20,407
866,180 680,245
2021
£
439,424
(439,424)
563,757		 2020
£
605,357
(605,357)
439,424
563,757 439,424

Deferred income relates to schools fees received in advance for the following term.

Page 30

The Cavendish School Charitable Trust Limited

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

16 CREDITORS DUE AFTER ONE YEAR

Amounts falling due after more than one year:
Bank loan
School fee deposits
Movement on loans
In one year or less
Between one and two years
Between two and five years
After five years
Movement on deposits:
In one year or less
Between one and two years
Between two and five years
After five years		 2021
£
489,339
377,000		 2020
£
561,796
404,000
866,339 965,796
2021
£
72,637
75,590
208,641
205,108		 2020
£
69,821
72,636
236,218
252,941
561,976 631,616
2021
£
83,000
54,000
176,000
147,000		 2020
£
44,600
66,000
156,000
182,000
460,000 448,600

The bank loans are secured by first and second fixed charges over the freehold property situated at 31 Inverness Street, NW1 7HB (previously referred to as 179 Arlington Road, London NW1 7EY) and fixed plant and machinery. The balance of £489,339 includes two fixed interest elements of £150,168 and £339,171, repayable by instalments, on which interest is charged at 3.69% and 4.5% respectively.

17 FINANCIAL INSTRUMENTS

2021 2020
£ £
Carrying amount of financial assets
Measured at amortised cost 591,376
 26,561
Carrying amount of financial liabilities
Measured at amortised cost 253,110
 184,034

Page 31

The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

18 STATEMENT OF FUNDS

Income
£
£
Unrestricted & Designated Funds:
General reserve
873,265
3,293,048
Tangible Fixed Asset Funds
3,816,539
-
Head's Discretionary Funds
4,922
2,573
Hardship Funds
83,959
-
Total Unrestricted & Designated Funds:
4,778,685
3,295,621
Restricted funds:
Various Restricted Funds
44,096
77,933
Total funds
4,822,781
3,373,554
Income
£
£
Unrestricted & Designated Funds:
General reserve
747,102
3,579,718
Tangible Fixed Asset Funds
3,891,647
-
Head's Discretionary Funds
5,107
3,060
Hardship Funds
-
-
Total Unrestricted & Designated Funds:
4,643,856
3,582,778
Restricted funds:
Various Restricted Funds
29,330
52,673
Total funds
4,673,186
3,635,451
At 1
September
2019
Prior year comparative below
At 1
September
2020		 £
873,265
3,816,539
4,922
83,959
At 1
September
2020		 Income
£
3,293,048
-
2,573
-

 Expenditure
£
(3,232,515)
-
(1,431)		 Transfer
Between
Funds
£
100,998
(87,593)
-		 £
1,034,796
3,728,946
6,064
83,959
At 31
August 2021
4,778,685
44,096		 3,295,621
77,933		 (3,233,946)
(49,899)		 13,405
(13,405)		 4,853,765
58,725
4,822,781 3,373,554 (3,283,845) - 4,912,490
Expenditure
£
(3,424,259)
-
(3,245)
(16,041)		 Transfer
Between
Funds
£
(29,296)
(75,108)
-
100,000		 £
873,265
3,816,539
4,922
83,959
At 31
August 2020
4,643,856
29,330		 3,582,778
52,673		 (3,443,545)
(42,311)		 (4,404)
4,404		 4,778,685
44,096
4,673,186 3,635,451 (3,485,856) - 4,822,781

Restricted funds

The restricted funds of the school include income comprising donations, grants and other income received on trust to be used for bursaries, Early Years support and dedicated classroom assistant support.

Unrestricted funds

The tangible fixed assets fund represents the net book value of the school's tangible fixed assets less the related loans. A decision was made to separate this fund from the general fund of the school in recognition of the fact that the tangible fixed assets are essential to the day to day work of the school and as a such their value should not be regarded as funds that would be realisable with ease in order to meet future contingencies.

A transfer occurs each year from the tangible fixed assets fund to the unrestricted funds for the deprecation element of the fixed assets.

There has been a transfer from the restricted funds for monies which have been spent in the unrestricted funds.

Designated Fund

The Head's Discretionary Fund is funded by donations from parents and used at the discretion of the Head in order to assist the development and welfare of individual pupils.

In 2020, the governors transferred £100,000 from general reserves to set up a designated Hardship Fund in response to the COVID-19 pandemic to support pupils and their families during the summer term and beyond if necessary.

Page 32

The Cavendish School Charitable Trust Limited

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

19 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Total net assets		 Unrestricted
funds
£
-
2,289,888
(793,543)
(377,000)		 Tangible Fixed
Asset Fund
£
4,290,332
-
(72,637)
(489,339)		 Head's
Discretionary
Fund
£
-
6,064
-
-		 Restricted
fund
£
-
58,725
-
-		 2021
Total
£
4,290,332
2,354,677
(866,180)
(866,339)
1,119,345 3,728,356 6,064 58,725 4,912,490
Unrestricted
funds
£
-
1,971,649
(610,424)
(404,001)		 Tangible Fixed
Asset Fund
£
4,448,155
-
(69,821)
(561,795)		 Head's
Discretionary
Fund
£
-
4,922
-
-		 Restricted
fund
£
-
44,096
-
-		 2020
Total
£
4,448,155
2,020,667
(680,245)
(965,796)
957,224 3,816,539 4,922 44,096 4,822,781

20 COMMITMENTS UNDER OPERATING LEASES

At 31 August 2021, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Due within one year
Due between two and five years		 2021
Office
equipment
8,957
26,872		 2020
Office
equipment
8,957
35,829
35,829 44,786

21 RELATED PARTIES

Five (2020: five Governors who are also parents had children attending the school during the financial year. Fees paid by the Governors are the same as fees paid by others. At the year end the School was owed £nil (2020: £357) by a Governor in relation to nursery sessions for their child.

The school has purchased insurance to protect the school from loss arising from the neglect or defaults of its Governors. The insurance premium payable by the school during the year totalled £1,174 (2020: £1,039) and provides cover of up to a maximum of £2 million.

During the year no governors were awarded gifts (2020: £15) for their assistance over the Summer Term. During the year the governor also donated £nil (2020: £650) to the School's Bursary Fund.

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The Cavendish School Charitable Trust Limited NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

22 CAPITAL COMMITMENTS

The company had capital commitments contracted for but not provided for in these financial statements of £23,505 (2020: £nil).

23 NOTES TO THE CASHFLOW STATEMENT

Reconciliation of operating result to net cash inflow from
operating activities
Net movement in funds
Depreciation
Bank interest received
Interest payable
Increase/(Decrease) in creditors
(Increase)/Decrease in debtors
Analysis of changes in net debt
Cash and cash equivalents
Cash
Overdrafts
Cash Equivalents
Borrowings
Debt due within one year
Debt due after one year
Total		 At 1
September
2020
1,943,072
0
0		 Cash flows
357,146
0
0		 2021
£
89,709
178,012
(401)
25,717
156,119
23,136		 2020
£
149,595
186,655
(3,408)
28,528
(181,520)
14,489
472,292 194,339
Other non-
cash
changes
0
0
0		 At 30
August
2021
2,300,218
0
0
1,943,072
-69,821
-561,795		 357,146
69,640
0		 0
-72,637
72,637		 2,300,218
-72,818
-489,158
-631,616 69,640 0 -561,976
1,311,456 426,786 0 1,738,242

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