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2021-08-31-accounts

Company Registration Number: 00759327 Charity Registration Number: 312855

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the School, its Trustees and Advisers 1 - 2
Trustees' Report 3 - 13
Statement of Trustees' Responsibilities 14
Independent Auditors' Report on the Financial Statements 15 - 18
Statement of Financial Activities 19
Balance Sheet 20
Statement of Cash Flows 21
Notes to the Financial Statements 22 - 45

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE SCHOOL, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

Trustees Charles Beer (resigned 31 August 2021)1,3
Jonathan Eley (resigned 31 August 2021)3
James Fowler, Chair of Music and Education Committee (resigned 31 August
2021)2
Janice Graham (resigned 31 August 2021)2,3
Sir Roger Jackling, Chair of Full Governing Body (to 31 August 2021)
Professor Colin Lawson2,3
William McDonnell, Chair of Finance and General Purposes Committee (from 1
September 2020)1
Dr Rebecca Mooney, Safeguarding Governor2
Ian Odgers1,3
Joanna Van Heyningen1,2
Kirsty Von Malaisé2
Michele Burton1
Jeffrey Hewitt1
Timothy Jones
Bernard Trafford, Chair of Full Governing Body (from 5 February 2021) (appointed
5 February 2021)
Sofia Coles (appointed 1 September 2021)
1
Finance and General Purposes Committee
2
Music and Education Committee
3
Nominations Committee
Company registered
number
00759327
Charity registered
number
312855
Registered office
Aldenham Road
Bushey
Watford
Hertfordshire
WD23 2TS
Company secretary
Adam Wroblewski
Independent auditors
MHA MacIntyre Hudson
Statutory Auditor
6th Floor
2 London Wall Place
London, United Kingdom
EC2Y 5AU
Bankers
Coutts and Co.
London
WC2R 0QS

Page 1

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE SCHOOL, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Solicitors Harrison Clark Rickerbys Ltd Ellenborough House Wellington Street Cheltenham GL50 1YD Farrer and Co. 66 Lincoln Inn Fields London WC2A 3LH Senior Leadership Paul Bambrough - Principal Team Adam Wroblewski - Bursar Christine Rayfield - Deputy Principal (resigned 31 July 2021) Paul Hoskins - Director of Music Jane Malan - Head of Boarding (resigned 31 August 2021) Tom Burns - Interim Deputy Principal Kate Cayley - Director of Boarding (appointed 1 September 2021) Ziggi Szafranski - Designated Safeguarding Lead

Page 2

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The Members of the Purcell School Governing Body present their Annual Report for the year ended 31 August 2021 under the Charities Act 2011, including the Directors’ and Strategic Reports, under the Companies Act 2006, together with the audited financial statements for the year.

REFERENCE AND ADMINISTRATIVE INFORMATION

The Purcell School (“the School”) was incorporated on 30 April 1963, changing its name to the present name on 6 June 1984. It was incorporated as a Company limited by guarantee not having a share capital, with the registration number 759327. It is also a registered Charity under the Charities Act 2011 with the charity number 312855. In 1980, the Purcell School was designated by the Secretary of State for Education as one of five specialist schools in Britain under what is now the Music and Dance Scheme (MDS). Currently, the Purcell School is one of the 8 schools in the UK supported by the MDS.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

The Purcell School is governed by its Memorandum of Association last updated in 1999.

Governing Body

The Governing Body is self-appointing, with one-third of its Members required to retire by rotation at each AGM. The first appointed, or longest serving since last reappointment, are the first to retire. Members retiring by rotation can be re-elected.

It is the policy to recruit Trustees from a wide variety of professions to enhance the Governing Body’s strategic judgement. New Trustees are elected by current Members of the Governing Body. The professional backgrounds of current Trustees encompass music (including performance, teaching and the conservatoires), secondary and tertiary education, the wider world of the arts, architecture, banking, business, law, accountancy, medicine and government service. The Governing Body aims to provide a balance between those who know the School and the local area very well, and those who, whilst committed to its aims, come from further away and are able to provide special insights, experience, political sensitivity and objectivity. It is the policy of the Trustees to include a former student and at least one current parent on the Governing Body provided that they have the requisite skills and experience.

The recruitment process is managed by the Nominations Committee. The chief requirement of all Trustees is to accumulate sufficient understanding of the School, its aims and its modus operandi, to enable them to use their knowledge and their professional background in agreeing the strategic direction of the School.

Recruitment and training of Trustees

New Trustees are inducted into the workings of the School through briefing sessions with the Chairman, Principal and Members of the Senior Leadership Team. In addition they are provided with guidance from AGBIS (Association of Governing Bodies of Independent Schools), ISC (Independent Schools Council) and the Charity Commission. Governors are advised of and encouraged to attend appropriate external training workshops and presentations.

Page 3

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

All Trustees have access to the papers for all Trustees’ Committees to allow them to stay informed of current issues within the School. Staff make regular presentations to the Governing Body or its Committees on a wide range of topics. A programme of gubernatorial visits is arranged to allow Trustees to gain first-hand experience of the School at work; their observations are shared with the Principal and reported on at a full Governors’ meeting. Dr Rebecca Mooney serves as Safeguarding Governor with particular responsibility for Child Protection.

Organisational management

The Members of the Governing Body, as the Charity Trustees, are legally responsible for the overall management and control of the School. They meet three times a year.

The work of implementing their policies is carried out by three Committees:

The day-to-day running of the school is delegated to the Principal and Bursar. The Senior Leadership Team comprises of the Principal, Bursar, Vice-Principal, Safeguarding Lead, Director of Boarding and Director of Music. The Principal and Bursar attend all Governing Body (excluding the Nominations Committee) meetings and the Deputy Principals and Director of Music attend the Music and Education Committee meetings.

Remuneration is set by the Board, with the policy objective of providing appropriate incentives and of rewarding fairly and responsibly individual contributions to the School’s success. For teaching staff, the School aims, where possible, to mirror state school salaries and pay reviews. Employees’ remuneration is reviewed annually and benchmarked against the school’s sector pay level as a whole. The School subscribes to external HR benchmarking tool to analyse competitiveness against other organisations, and at the same time ensuring a fair level of pay in accordance to role responsibilities. It is also the intention of the school Trustees to apply a percentage increase to all staff when financially possible.

Charity Governance Code

The Trustees are aware of the Charity Governance Code and have received the ‘new’ AGBIS guidance which explains in detail the Governors’ Code of Practice and good governance. The Charity will be reviewing its current governance arrangements against its updated 2020 code and will address any issues raised where required in 2022.

Page 4

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Group structure

The School wholly owns Purcell School (Trading) Limited, which did not trade in the year.

Employment policy

The School is an equal opportunities employer. Full and fair consideration is given to all job applications.

Employees are made aware of the financial and economic performance of the School, at least on an annual basis.

Communication with employees takes place through normal management channels and includes staff briefings, departmental meetings and a variety of electronic communication.

Relationships between the School and related parties

The Trustees consider that the Board of Trustees and the Senior Leadership Team comprise the Key Management Personnel of the School. All Trustees give their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in notes to the accounts.

The Purcell School maintains close partnerships with other Music and Dance Schools (MDS) and together shape the specialist musical education in the UK. The School also maintains links with music colleges, and London venues where it regularly performs. There is also a strong relationship with UK Conservatoires as it is often a direction where most of our students go:

2021 LEAVERS DESTINATIONS

MUSIC COLLEGES & CONSERVATOIRES

UNIVERSITIES & COLLEGES

Page 5

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable objects

The School’s Objects, as set out in the Memorandum and Articles of Association, is to establish and conduct a school for the purpose of providing general and specialist music education. The School offers a rounded education, with music at its heart, and provides young musicians of exceptional talent and promise with the best possible teaching and environment in which to fulfil their potential, regardless of their background. The Governing Body is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. In this connection the Governing Body has monitored closely the guidance on public benefit produced by the Charity Commission together with its supplemental guidance on fee-charging.

Mission statement

The mission of The Purcell School is to provide young musicians who demonstrate the potential to become exceptional (irrespective of background) with outstanding teaching within a supportive school environment and to equip them with the self-confidence, adaptability, maturity and perspective to sustain their professional development and personal fulfilment throughout their lives.

Aims

The School’s aims for public benefit are:

Key financial performance indicators

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Primary objectives

The primary objectives of the School to fulfil these aims are to:

Page 6

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Strategies to Achieve the Primary Objectives.

The key strategies are as follows:

Principal activity

The principal objective of the Charity as set out in its Memorandum and Articles of Association is to establish and conduct a school for the purpose of providing general and specialist music education.

The School is predominantly a boarding school with 138 boarders (many of whom are weekly boarders) and 39 day students. A special quality of the School is its warmth and friendliness and its strong sense of community and purpose, which has developed from a common love of music.

In 2003 the School was awarded the Mozart Gold Medal by UNESCO in recognition of its outstanding contribution to arts education.

Public benefit

The Purcell School remains committed to the aim of providing public benefit in line with Section 17 of the Charities Act 2011.

The School offers bursaries through the Department for Education Music and Dance Scheme. For students who do not qualify for the Music and Dance Scheme, support is offered by the School from the School’s own bursary fund. As a result, every student accepted by the School is entitled to means tested financial assistance and the key criterion for admission to the School is musical excellence and not ability to pay. Parental contributions are currently less than 20% of gross fees, and any non-Music and Dance Scheme bursaries are funded from the school’s reserves.

The financial support available to students is promoted through the website, on Open Days and in all of the School’s marketing materials. All parents have an opportunity on Open Days and audition days to discuss financial concerns.

Page 7

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

In addition to bursaries, the School engages in many other activities that provide benefit to the public within the School’s objectives. These include:

The Outreach Programme, which enriches the lives of many outside the School and brings students into contact with the wider world beyond the School. It takes many forms, from student-led activities to taster events and partnership programmes.

Equal opportunities

The Purcell School is an equal opportunities organisation and is committed to a working and educational environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, gender, sexual orientation or disability.

Safeguarding

The School is committed to safeguarding and promoting the welfare of students and expects all stakeholders to share this commitment.

Governors monitor that safeguarding arrangements are effective by:

Fundraising performance

The bursary fund received £288,701 during the year.

It is a long term aim of Trustees to raise sufficient monies to fund all non-Music and Dance Scheme remissions. This amounts to just over £600,000 per year and there is a significant variance between money needed and raised.

The School has a fundraising policy in place which reflects the standards laid down by the Fundraising Regulatory Board established following the 2016 Charities Act to promote ethical practice in fundraising and gain public trust and confidence. The policy also includes a complaints procedure and there were no complaints received in the year.

To protect vulnerable people and other members of the public, the School only contacts people who have a legitimate interest in music, and opted in to receive information. Trustees have a commitment to the highest standards of good practice and to ensuring that all fundraising activities are open, legal, and fair.

Page 8

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

KEY ACADEMIC STATISTICS

Students at The Purcell School are characteristically motivated both musically and academically, and exam results are consistently strong. Depending on a student’s age and instrumental commitments, approximately a third of curricular time at The Purcell School is spent on musical activities. For this reason students may take fewer academic subjects than in other schools, and many will take Music exams one year early. For these reasons, numbers and grade distributions may fluctuate from year to year. However, excellent teaching, dedicated facilities, and small class sizes help to ensure that our students attain good grades to continue in their studies.

Page 9

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Musical Achievements

2020-21 was an extremely challenging year because of ongoing restrictions both in education and the arts world. In the autumn term we functioned very successfully as an entirely closed community: we were unable to have visitors or audiences on site, and unable to take students out to perform or attend concerts.

We made the best of it by putting on many concerts for students to attend with staff performers as well as students. We are fortunate to have a teaching body that includes some of the country's finest musicians, and the year began with exceptional recitals given by Richard Jenkinson, Charles Sewart, Joy Farrall, Simon Allen, Oli Hayhurst, Seb de Krom, Debbie Shah, Graham Hobbs and Steve Williams.

Students soon took up the baton, and performed over 200 pieces in lunchtime concerts and evening recitals. One notable highlight was "Roots", a student-curated evening concert of music by black composers.

Limits on room capacity meant that we were unable to rehearse groups of more than about 12-14, and so the orchestra was divided into many smaller ensembles. In the first term these groups filmed performances that were commissioned by the Hatfield House Chamber Music Festival, and the film was made available with accompanying resources to all primary schools in Hertfordshire and viewed by thousands of young people.

The new arrangements for orchestral playing meant that we learnt some benefits of working in smaller groups: each student took more responsibility individually, and many groups were self-directed. Repertoire was also more diverse and varied.

Page 10

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

6th form students presented a magnificent concerto festival, replacing the competition that had been postponed the previous year.

The spring term was almost all online from home, and we held several online masterclasses and Q and A classes with artists from all over the world.

The summer term at last brought some easing of restrictions, and in June 2021 we curated 15 concerts in school, as well as a series of 7 external concerts called "The Purcell School returns to London". Outstanding performances were given and filmed in St John's Smith Square, The Royal Overseas League, Conway Hall, The Wilde Theatre, Bracknell and Cadogan Hall, the Bushey Festival and the Deal Festival. The excitement of hearing young performers unleashed again was extremely moving, and these performances are still remembered as some of the best we have ever done.

Purcell Online, our Youtube channel, continued to host films of classes and performances, enabling families all over the world to see their children perform.

To the credit of the students and staff, despite all the limitations on social gathering and public performances, all individual lessons continued in person when at school and online when at home. Students were extremely glad to return to school whenever they could, but excellent work continued throughout the year.

FINANCIAL REVIEW

Results for the year

The School’s total incoming resources for the year amounted to £6,340,442 (2020 - £6,133,536). The net deficit for the year was £157,231 (2020 - deficit of £81,530) as shown in the Statement of Financial Activities. The deficit for the year arose as a result of ensuring adequate level of staffing resources to ensure safe, happy and healthy environment for students, as detailed in Note 15.

Reserves level and policy and financial viability

The School’s total reserves were £13,341,657 (2020 - £13,498,888) at the year end, of which £509,195 (2020 - £532,934) are restricted funds, £11,946,995 (2020 - £12,016,371) are designated funds and £885,467 (2020 – £949,583) are general funds. Whilst the funds of £509,195 are categorised as restricted under Charity trust law, these funds came from fundraising for the school bursaries. The school is able to use these funds on the educational activities at the school, which forms the vast majority of the school business, and which would otherwise be funded from unrestricted funds. Therefore, in considering the School’s operational reserves position they have been included within the total operational free reserves held as per the reserves policy.

Unrestricted funds in total stood at over £10 million at the year end, wholly deployed as part of the financing of the School’s premises and equipment. There are limited free reserves because free reserves as defined by the Charity Commission are unrestricted funds less those funds represented by fixed assets. This amounted to £885,467 (2020 - £949,583).

Governors considered the balance between retaining sufficient reserves to guard against risks and tying up excessive resources which may be detrimental to fundraising. The Governors agreed that a reserve of three months of the school’s normal annual operational cost is appropriate to meet the Charity’s objectives without compromising the continuity of educational and musical provision. Three months reserve would amount to approximately £1.5m. The school’s finances should be managed so that under normal circumstances this is the minimum level of reserves held through the annual cycle, in the absence of one or more of the circumstances in paragraph 1 arising. The target level of reserves may be varied if the risk profile changes materially.

Page 11

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The Board of Trustees ensures that resources are managed responsibly in the best interests of the school. The Board approves and monitors the implementation of this policy.

The Finance and General Purposes Committee (F&GP) monitors and supervises the current and future financial situation and associated risks. F&GP also reviews and develops this policy and makes recommendations to the Board.

PRINCIPAL RISKS AND UNCERTAINTIES

The Governing Body is responsible for the management of the risks faced by the School. Detailed considerations of risk are delegated to the Finance and General Purposes Committee, which is assisted by senior School staff. Risks are identified, assessed and controls established throughout the year. A formal review of the School’s risk management processes is undertaken on an annual basis. The key controls used by the School include:

Through the risk management processes established for the School, the Trustees are satisfied that the major risks identified have been managed as necessary. The Trustees have identified that the key areas of risk that the School faces lie in the effectiveness of its governance and management, the efficiency of its operations, the effectiveness of its safeguarding procedures and in ensuring its financial health and stability. These include, in particular, a significant fall in student numbers and withdrawal or changes to the Department for Education funding. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been managed.

The management of risk is a routine part of the day to day operation of the School. Policies and procedures are in place to assess and manage risks. During the year Governors reviewed child protection, health and safety, risk management, whistleblowing, professional standards, staff recruitment, bursary and equality policies.

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

FUTURE PLANS

The School is planning to launch a comprehensive new strategic plan which will deliver significant improvement to every aspect of its work over the coming 5 – 10 years. In so doing, it will secure and expand recruitment of pupils; widen participation and social impact; improves its physical and virtual resources and strengthen its financial position. The key principal strategic aims are:

Principal Strategic Aim 1 To maintain and develop an exceptional student experience
underpinned by outstanding artistic ambition
Principal Strategic Aim 2 To attract, retain and add value to the finest national and
international talent.
Principal Strategic Aim 3 To facilitate transformational engagement with partners,
communities and the wider world.
Principal Strategic Aim 4 To develop world-class resources and facilities
Principal Strategic Aim 5 To ensure financial sustainability through effective financial
planning and management, diversification of income and
significant and sustained fundraising

Integral to the Strategic Plan is the School’s core mission of ensuring that places are secured (as far as is practically possible) on the basis of talent, not on the ability to pay and to enable each and every student to experience a safe, happy and healthy environment in which to grow and develop musically, academically and personally.

The COVID pandemic has significantly affected the School operation, especially following the introduction of another national lockdown. The School has responded promptly and implemented the similar measures as it did during the first lockdown, but in addition used the opportunity of an empty building to start refurbishment projects. Furthermore, it helped every student in all ways possible, such as providing necessary technology, pastoral support and fully timetabled live lessons. The recent parent survey on the school provision during this time was overwhelmingly positive with the responses of “Extremely Satisfied or Satisfied” in excess of 90% of the total.

In approving the Trustees' Annual Report, we also approve the Strategic Report included therein, in our capacity as company Directors.

On behalf of the Board

………………………….. …………………………… William McDonnell Bernard Trafford Trustee Chair of Trustees Date: 28/03/2022

Page 13

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees (who are also the Directors of the School for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees 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 School and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the School's transactions and disclose with reasonable accuracy at any time the financial position of the School 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 School and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

Approved by order of the Members of the Board of Trustees and signed on its behalf by:

................................................

Bernard Trafford Chair of Full Governing Body Date: 28/03/2022

Page 14

THE PURCELL SCHOOL (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURCELL SCHOOL

Opinion

We have audited the financial statements of The Purcell School (the 'School') for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.

Page 15

THE PURCELL SCHOOL (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURCELL SCHOOL (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion 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 our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.

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

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

Page 16

THE PURCELL SCHOOL (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURCELL SCHOOL (CONTINUED)

Auditors' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 17

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PURCELL SCHOOL (CONTINUED)

Use of our report

This report is made solely to the charitable company's Members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's Members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its Members, as a body, for our audit work, for this report, or for the opinions we have formed.

Sudhir Singh FCA (Senior Statutory Auditor)

for and on behalf of

MHA MacIntyre Hudson Statutory Auditor London, United Kingdom

Date: 20 April 2022

Page 18

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income from:
Donations and grants
4
Charitable activities
5,6
Other trading activities
9
Investments
10
Total income
Expenditure on:
Raising funds
11
Charitable activities
12,13
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
35,117
5,881,220
135,404
-
6,051,741
89,883
6,095,350
6,185,233
(133,492)
12,965,954
(133,492)
12,832,462		 Restricted
funds
2021
£
288,413
-
-
288
288,701
-
312,440
312,440
(23,739)
532,934
(23,739)
509,195		 Total
funds
2021
£
323,530
5,881,220
135,404
288
6,340,442
89,883
6,407,790
6,497,673
(157,231)
13,498,888
(157,231)
13,341,657		 Total
funds
2020
£
274,560
5,794,129
58,084
6,763
6,133,536
91,856
6,123,210
6,215,066
(81,530)
13,580,418
(81,530)
13,498,888

All income and expenditure derives from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The Notes on pages 22 to 45 form part of these financial statements.

Page 19

THE PURCELL SCHOOL (A Company Limited by Guarantee) REGISTERED NUMBER: 00759327

BALANCE SHEET AS AT 31 AUGUST 2021

Note
Fixed assets
Tangible assets
17
Investments
18
Current assets
Debtors
19
Cash at bank and in hand
24
Creditors: amounts falling due within one
year
20
Net current assets
Total net assets
School funds
Restricted funds
21
Unrestricted funds
21
Total funds		 2021
£
412,225
2,093,251
2,505,476
(1,110,914)		 2021
£
11,946,995
100
11,947,095
1,394,562
13,341,657
509,195
12,832,462
13,341,657		 2020
£
345,318
2,108,561
2,453,879
(971,462)		 2020
£
12,016,371
100
12,016,471
1,482,417
13,498,888
532,934
12,965,954
13,498,888

The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

----- Start of picture text -----
................................................
----- End of picture text -----

................................................ ................................................ Bernard Trafford William McDonnell Trustee

Chair of Full Governing Body Date: 28/03/2022

The notes on pages 22 to 45 form part of these financial statements.

Page 20

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Note
Cash flows from operating activities
Net cash used in operating activities
23
Cash flows from investing activities
Investment income
10
Purchase of tangible fixed assets
17
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
24		 2021
£
303,395
288
(318,993)
(318,705)
(15,310)
2,108,561
2,093,251		 2020
£
319,248
6,763
(150,998)
(144,235)
175,013
1,933,548
2,108,561

The notes on pages 22 to 45 form part of these financial statements.

Page 21

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. General information

The Purcell School is a charitable company limited by guarantee and is registered with the Charity Commission (Charity Registered Number: 312855) and Registrar of Companies (Company Registration Number: 00759327) in England and Wales.

The registered office and principal place of operation is detailed on page 1. The nature of the School's operations are detailed in the Trustees' Report.

The liability of the 16 Members at the year-end is limited to £1 each.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Purcell School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in sterling, which is the functional currency of the School, and rounded to the nearest pound.

2.2 Going concern

Having reviewed the funding facilities available to the School together with the expected ongoing demand for places, funding arrangements under the Department for Education Music and Dance Scheme and the School’s future projected cash flows, the Trustees have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the School’s financial viability. In reaching this conclusion consideration has also been given to the likely financial impact of COVID-19 on the School’s operations and cash-flow and the School’s response to this.

The School examines its medium term position by preparing 3 year budgets, viability analyses and cash-flow forecasts, and therefore the Trustees have considered beyond the minimum period of 12 months required to be considered as the foreseeable future.

The Trustees also maintain a comprehensive risk management plan, updated termly which examines significant trends and their impact on the school in mid to long term basis around brexit, covid, financial and non-financial going concern matters.

Accordingly, it continues to be appropriate to adopt the going concern basis in preparing the financial statements.

Page 22

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the School has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Fees receivable are accounted for in the year to which they relate and comprise tuition fees and charges to students, net of bursary fee remissions, but gross of awards made from the School’s Bursary Fund.

Donations and gifts received for the general purposes of the School are credited to the School’s funds. Donations and gifts subject to specific wishes of the donors are carried to the relevant restricted fund. Voluntary income is accounted for when the School’s entitlement to it is considered to be legally enforceable and there is reasonable certainty of receipt.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Government grants

The Charity receives government grants in respect of furthering its charitable objectives. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

2.5 Expenditure

Expenditure is accounted for on an accruals basis. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

Expenditure on raising funds includes all expenditure incurred by the School to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the School's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

Page 23

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.6 Taxation

The School is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the School is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £5,000 (£1,000 for computer equipment) or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Freehold buildings - 2% on cost
Temporary classrooms - 20% on written down value
Motor vehicles - 25% on written down value
Furniture, fixtures and fittings - 15% on written down value
Computer equipment - 20% on cost
Musical instruments - 10% on written down value

Freehold land is not depreciated.

2.8 Investments

Investment in the trading subsidiary is valued at cost less provision for impairment.

2.9 Debtors

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

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 24

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the School anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.12 Concessionary loans

Concessionary loans include those receivable and payable to a third party which are interest free or below market interest rates and are made to advance charitable purposes. Where the loan is repayable on demand within one year, the loan is measured at cost, less impairment. Where the loan is repayable more than one year, the loan is initially measured at fair value and subsequently measured at amortised cost using the effective interest rate method, less impairment.

2.13 Financial instruments

The School only holds basic financial instruments. The financial assets and financial liabilities of the School are as follows:

Financial assets - trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 19. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at face value.

Financial liabilities - trade creditors, accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Note 20. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

2.14 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Page 25

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.15 Pensions

The School contributes to the Teachers’ Pension Scheme at rates set by the Scheme Actuary and advised to the Governors by the Scheme Administrator. The scheme is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS102 the scheme is accounted for as a defined contribution scheme. The School also uses a defined contribution scheme for its non-teaching staff. The contributions are charged in the Statement of Financial Activities when made.

2.16 Termination payments

Termination benefits, including redundancy costs, are recognised when the School has the obligation to pay the benefits and they can be reliably measured.

2.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the School and which have not been designated for other purposes.

Designated funds are funds set aside out of general funds and designated for specific purposes by the Trustees.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the School for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The School makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

In the view of the Trustees, 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.

Page 26

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

4. Income from donations and grants

Bursary income
Friends income
Merchandise sales
Other grants
Total 2021
Bursary income
Outreach income
Chamber Academy fund income
Friends income
Merchandise sales
Gifts and donations
Other grants
Total 2020		 Unrestricted
funds
2021
£
-
-
-
35,117
35,117
Unrestricted
funds
2020
£
-
-
-
-
-
-
3,040
3,040		 Restricted
funds
2021
£
283,832
4,468
113
-
288,413
Restricted
funds
2020
£
250,597
3,770
12,500
3,998
155
500
-
271,520		 Total
funds
2021
£
283,832
4,468
113
35,117
323,530
Total
funds
2020
£
250,597
3,770
12,500
3,998
155
500
3,040
274,560

Page 27

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

5. Income from charitable activities - by fund

Educational operations
Educational operations
Analysis of income from charitable activities by type of income
School fees
7
Other educational income
8
Exceptional government funding		 Unrestricted
funds
2021
£
5,881,220
Unrestricted
funds
2020
£
5,794,129
2021
£
5,833,183
-
48,037
5,881,220		 Total
funds
2021
£
5,881,220
Total
funds
2020
£
5,794,129
2020
£
5,498,763
109,000
186,366
5,794,129

6. Analysis of income from charitable activities by type of income

The School has been eligible to claim additional funding in year from government support schemes in response to the coronavirus outbreak. The funding received is shown above under 'Exceptional government funding'.

The School furloughed some of its staff under the government's Coronavirus Job Retention Scheme. The funding received of £48,037 (2020 - £186,366) relates to staff costs in respect of 37 (2020 - 32) staff.

Page 28

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

7. School fees

Gross school fees
Less: Total bursaries
Add: Bursaries paid from restricted funds		 2021
£
6,232,946
(699,763)
300,000
5,833,183		 2020
£
5,758,782
(560,019)
300,000
5,498,763

Net fees received included £1,433,844 (2020 - £1,456,581) by parents and £4,099,339 (2020 - £3,742,182) paid by the Department for Education Music and Dance Scheme.

8. Other educational income

DfE / ESFA Teachers' Pension Grant
SEN funding		 2021
£
-
-
-		 2020
£
104,000
5,000
109,000

Page 29

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9. Income from other trading activities

Application and audition fees
Insurance claims
House fund income
Concert income
Lettings income
Sundry income
Gain on disposal of fixed assets
Total 2021
Application and audition fees
Insurance claims
House fund income
Concert income
Lettings income
Coffee shop income
Sundry income
Gain on disposal of fixed assets
Total 2020		 Unrestricted
funds
2021
£
6,334
8,248
18,065
3,277
88,225
5,746
5,509
135,404
Unrestricted
funds
2020
£
8,672
4,213
2,760
12,815
16,751
11,767
906
200
58,084		 Total
funds
2021
£
6,334
8,248
18,065
3,277
88,225
5,746
5,509
135,404
Total
funds
2020
£
8,672
4,213
2,760
12,815
16,751
11,767
906
200
58,084

Page 30

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10. Income from investments

Bank interest receivable
Bank interest receivable
11.
Expenditure on raising funds		 Restricted
funds
2021
£
288
Restricted
funds
2020
£
6,763		 Total
funds
2021
£
288
Total
funds
2020
£
6,763
Direct costs - Staff costs
Direct costs - Fundraising and development costs
Support costs - Financing costs
Total 2021
Direct costs - Staff costs
Direct costs - Fundraising and development costs
Support costs - Financing costs
Total 2020		 Unrestricted
funds
2021
£
78,682
3,300
7,901
89,883
Unrestricted
funds
2020
£
79,031
4,924
7,901
91,856		 Total
funds
2021
£
78,682
3,300
7,901
89,883
Total
funds
2020
£
79,031
4,924
7,901
91,856

Page 31

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

12. Analysis of expenditure on charitable activities - by fund

Educational operations
Educational operations
Analysis of expenditure on charitable activities - by type
Educational operations
Educational operations		 Unrestricted
funds
2021
£
6,095,350
Unrestricted
funds
2020
£
5,795,771
Activities
undertaken
directly
2021
£
5,237,283
Activities
undertaken
directly
2020
£
4,944,611		 Restricted
funds
2021
£
312,440
Restricted
funds
2020
£
327,439
Support
costs
2021
£
1,170,507
Support
costs
2020
£
1,178,599		 Total
funds
2021
£
6,407,790
Total
funds
2020
£
6,123,210
Total
funds
2021
£
6,407,790
Total
funds
2020
£
6,123,210

13. Analysis of expenditure on charitable activities - by type

Page 32

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

13. Analysis of expenditure on charitable activities - by type (continued)

Analysis of direct costs

Staff costs
Premises costs
Teaching costs
Welfare and catering costs
School operating costs		 Total
funds
2021
£
3,864,735
395,753
188,791
479,004
309,000
5,237,283		 Total
funds
2020
£
3,604,263
488,645
223,975
309,728
318,000
4,944,611

Analysis of support costs

Staff costs
Depreciation
Other staff costs
Premises costs
Technology costs
Insurance costs
Transportation costs
Hospitality costs
Bank charges
Governance costs
Legal costs
Coffee shop costs
Other support costs
Publicity costs		 Total
funds
2021
£
377,542
388,369
20,201
30,150
118,648
53,647
3,292
1,013
5,427
87,819
16,274
-
57,763
10,362
1,170,507		 Total
funds
2020
£
354,703
438,247
13,381
5,099
75,742
56,997
7,671
5,711
7,088
58,499
68,775
13,532
61,704
11,450
1,178,599

Page 33

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14. Governance costs

Auditor's remuneration - Audit of the financial statements
Auditor's remuneration - Other services
Auditor's remuneration - Under-accrual of prior year fees
Legal and professional fees		 2021
£
11,350
5,995
6,335
64,139
87,819		 2020
£
11,000
5,850
1,915
39,734
58,499

15. Staff costs

Wages and salaries
Social security costs
Pension costs		 2021
£
3,459,286
292,634
569,039
4,320,959		 2020
£
3,236,737
279,609
521,651
4,037,997

Wages and salaries include termination benefits and redundancy payments, including both contractual and non-contractual payments, and totalled £49,201 (2020 - £22,055) . Included within non-contractual payments for 2021 are compensation payments of £26,260 made under the authority of the Trustees as being in the best interests of the School. There were no associated liabilities at the year end.

Wages and salaries also includes agency staff costs of £38,125 (2020 - £63,706) .

The average number of persons employed by the School during the year was as follows:

Teaching
Boarding, Pastoral and Housekeeping
Administration, Property and Fundraising		 2021
No.
108
31
20
159		 2020
No.
102
29
20
151

Page 34

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2021 2020
No. No.
In the band £60,001 - £70,000 2 2
In the band £70,001 - £80,000 2 2
In the band £80,001 - £90,000 1 -
In the band £100,001 - £110,000 1 1

The Key Management Personnel of the School comprise the Trustees and the Senior Leadership Team as listed on pages 1 and 2. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by Key Management Personnel for their services to the School was £582,989 (2020 - £584,358) .

16. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 August 2021, no Trustee expenses have been incurred (2020 - £NIL) .

Page 35

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17. Tangible fixed assets

Cost or valuation
At 1 September
2020
Additions
At 31 August 2021
Depreciation
At 1 September
2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold
land and
buildings
£
15,288,517
184,200
15,472,717
3,991,517
290,140
4,281,657
11,191,060
11,297,000		 Motor
vehicles
£
28,200
-
28,200
12,338
3,966
16,304
11,896
15,862		 Furniture,
fixtures and
fittings
£
1,627,288
31,455
1,658,743
1,292,305
34,205
1,326,510
332,233
334,983		 Computer
equipment
£
656,414
61,508
717,922
592,066
26,432
618,498
99,424
64,348		 Musical
instruments
£
1,001,259
41,830
1,043,089
697,081
33,626
730,707
312,382
304,178		 Total
£
18,601,678
318,993
18,920,671
6,585,307
388,369
6,973,676
11,946,995
12,016,371

Page 36

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

18. Fixed asset investments

Cost or valuation
At 1 September 2020
At 31 August 2021		 Investment
in
subsidiary
company
£
100
100

Principal subsidiaries

The wholly owned trading subsidiary, Purcell School (Trading) Limited, is incorporated in England and Wales (Company Registration Number: 02914875). The registered office address is Aldenham Road, Bushey, Watford, Hertfordshire, WD23 2TS.

During the current and previous financial years Purcell School (Trading) Limited was dormant.

19. Debtors

Due within one year
Fees and extras owed by parents
Other debtors
Prepayments
Music and Dance Scheme grant		 2021
£
63,115
64,431
23,861
260,818
412,225		 2020
£
81,129
57,347
36,283
170,559
345,318

Page 37

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

20. Creditors: Amounts falling due within one year

Other loans
Parental deposits
Other taxation and social security
Other creditors
Accruals		 2021
£
395,105
287,266
169,461
119,941
139,141
1,110,914		 2020
£
395,105
231,834
166,305
84,924
93,294
971,462

Page 38

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

21. Statement of funds

Statement of funds - current year


Unrestricted funds
Designated funds
Fixed asset fund
General funds
General Fund
Total Unrestricted funds
Restricted funds
Capital Development Fund
Bursary Fund
Instrument Fund
Composition and Outreach
Fund
Chamber Music Academy
Total of funds		 Balance at 1
September
2020
£
12,016,371
949,583
12,965,954
37,251
463,878
11,501
7,130
13,174
532,934
13,498,888		 Income
£
-
6,051,741
6,051,741
-
288,701
-
-
-
288,701
6,340,442		 Expenditure
£
(388,369)
(5,796,864)
(6,185,233)
-
(309,000)
-
-
(3,440)
(312,440)
(6,497,673)		 Transfers
in/out
£
318,993
(318,993)
-
-
-
-
-
-
-
-		 Balance at
31 August
2021
£
11,946,995
885,467
12,832,462
37,251
443,579
11,501
7,130
9,734
509,195
13,341,657

Page 39

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Fixed asset fund
General funds
General Fund
LPC fund
Total Unrestricted funds
Expendable endowment
funds
Buildings Fund
Capital Development Fund
Restricted funds
Capital Development Fund
Bursary Fund
Instrument Fund
Composition and Outreach
Fund
Chamber Music Academy
Total of funds		 Balance at
1 September
2019
£
-
10,003,661
9,700
10,013,361
10,013,361
928,000
2,066,667
2,994,667
37,251
519,865
1,801
5,629
7,844
572,390
13,580,418		 Income
£
-
5,855,253
-
5,855,253
5,855,253
-
-
-
-
262,013
-
3,770
12,500
278,283
6,133,536		 Expenditure
£
(438,247)
(5,449,380)
-
(5,449,380)
(5,887,627)
-
-
-
-
(318,000)
-
(2,269)
(7,170)
(327,439)
(6,215,066)		 Transfers
in/out
£
12,454,618
(9,459,951)
(9,700)
(9,469,651)
2,984,967
(928,000)
(2,066,667)
(2,994,667)
-
-
9,700
-
-
9,700
-		 Balance at
31 August
2020
£
12,016,371
949,583
-
949,583
12,965,954
-
-
-
37,251
463,878
11,501
7,130
13,174
532,934
13,498,888

Page 40

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

21. Statement of funds (continued)

Restricted Funds

The Capital Development Fund represents donations made to fund major projects. Capital development funds going forward will be used for the next major building project.

The Bursary Fund comprises grants and donations made to the School for the purpose of funding needy students. Tuition fees in the Statement of Financial Activities include fees funded by scholarships of £300,000. In the year, a total of £699,763 of bursaries were made to students of which £309,000 was paid from the Bursary Fund.

The Instrument Fund comprises grants and donations made to the School for the purchase of specific musical instruments.

The Composition and Outreach Fund represents grants and donations made to the School for the commissioning and performance of new music and for undertaking community based activities.

The Chamber Music Academy comprises funds received specifically to fund a chamber music initiative involving students from the Purcell School led by Charles Sewart.

Unrestricted Fund

The general fund comprises accumulated revenue surpluses and, once any restrictions have been met, receipts from restricted and unrestricted capital funds. The transfer out of £318,993 represent capital purchases made using these funds.

The School has a designated fixed asset fund for the net book value of fixed assets held. As capital purchases are made using other funds, transfers are made into this fund.

Page 41

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

22. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
11,946,995
Fixed asset investments
100
Current assets
1,996,281
Creditors due within one year
(1,110,914)
Total
12,832,462		 Restricted
funds
2021
£
-
-
509,195
-
509,195		 Total
funds
2021
£
11,946,995
100
2,505,476
(1,110,914)
13,341,657

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
12,016,371
100
1,920,945
(971,462)
12,965,954		 Restricted
funds
2020
£
-
-
532,934
-
532,934		 Total
funds
2020
£
12,016,371
100
2,453,879
(971,462)
13,498,888

Page 42

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

23. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
17
Investment income
10
Increase in debtors
19
Increase in creditors
20
Net cash provided by operating activities
24.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
25.
Analysis of changes in net debt
At 1
September
2020
£
Cash at bank and in hand
2,108,561
Debt due within 1 year
(395,105)
1,713,456		 2021
2020
£
£
(157,231)
(81,530)
388,369
438,247
(288)
(6,763)
(66,907)
(38,576)
139,452
7,870
303,395
319,248
2021
2020
£
£
2,093,251
2,108,561
2,093,251
2,108,561
Cash flows
At 31
August 2021
£
£
(15,310)
2,093,251
-
(395,105)
(15,310)
1,698,146

Page 43

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

26. Pension commitments

The School participates in the Teachers' Pension Scheme ('TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £481,731 (2020 - £424,504) . At the year end, there were contributions of £68,736 (2020 - £64,865) payable in respect of the scheme.

Introduction

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers' Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

The Teachers' Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a 'pay as you go 'basis - contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

Valuation of the Teachers' Pension Scheme

The latest valuation of the Teachers' Pension Scheme has now taken place, in line with directions issued by HM Treasury and using membership data as at 31 March 2016. As a result of this valuation TPS employers will pay an increased contribution rate of 23.68% from September 2019 (this includes the administration levy of 0.8%). The timing of the implementation is to align its introduction with employers' budget planning cycles. Until then, employers will pay the current rate of 16.48%.

Scheme Changes

The arrangements for a reformed Teachers' Pension Scheme, in line with the recommendations made by Lord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, were implemented from 1 April 2015.

In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, have rejected the Government's application for permission to appeal the Court of Appeal's ruling. The case will now be referred to an Employment Tribunal for a decision regarding the remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination.

Page 44

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

26. Pension commitments (continued)

HM Treasury are clear that the ruling has implications for the other public service schemes, including the Teachers' Pension Scheme. Those implications are currently being considered and any impact on scheme costs is expected to be looked at within the next scheme valuation, which is currently scheduled to be based on April 2020 data and implemented in April 2023.

The School operates a defined contribution pension scheme for non-teaching staff. Contributions paid during the year were £187,799 (2020 - £97,147) . At the year end, there were contributions of £9,126 (2020 - £9,801) payable in respect of the schemes.

27. Operating lease commitments

At 31 August 2021 the School had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2021 2020
£ £
Not later than 1 year - 10,445

The following lease payments have been recognised as an expense in the Statement of Financial Activities:

2021 2020
£ £
Operating lease rentals 10,445 10,445

28. Related party transactions

Jonathan Eley, a Trustee of the School is a partner at Farrer & Co LLP, a firm that has been used for legal advice for their expertise with Independent Schools and in particular with the IICSA. Total costs of £4,545 (2020 - £54,917) for legal services to Farrer & Co. LLP had been incurred in the year. Jonathan Eley is not involved in providing any of this advice to the School.

The Trustees confirm that all transactions have been carried out at an arm's length basis and none of the Trustees have received any benefit due to their position as a Trustee.

Page 45