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2022-08-31-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 2022

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 - 15
Statement of Trustees' Responsibilities 16
Independent Auditors' Report on the Financial Statements 17 - 20
Statement of Financial Activities 21
Balance Sheet 22
Statement of Cash Flows 23
Notes to the Financial Statements 24 - 47

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS OF THE SCHOOL, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022

Trustees Sir Roger Jackling (resigned 31 August 2022)
Sophia Coles, Safeguarding Governor
Dr Diana Salazar (appointed 1 October 2022)2
Dr Bernard Trafford, Chair of Full Governing Body1,2,3,4
Professor Colin Lawson (resigned 31 August 2022)
William McDonnell, Chair of Finance and General Purposes Committee1,3,4
Dr Rebecca Mooney, Safeguarding Governor2
Ian Odgers (resigned 21 January 2022)1,3
Professor Timothy Jones2,4
Joanna Van Heyningen, Chair of Buildings Committee1,2,3,4
Kirsty Von Malaisé, Chair of Music and Education Committee2
Michele Burton (resigned 8 June 2022)
Jeffrey Hewitt1,4
1
Finance and General Purposes Committee
2
Music and Education Committee
3
Nominations Committee
4
Buildings 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 2022

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 Paul Hoskins - Director of Music Tom Burns - Vice-Principal Kate Cayley - Director of Boarding Ziggi Szafranski - Head of Sixth Form and Designated Safeguarding Lead Michael Long - Director of Teaching and Learning Emma Bantock - Director of Operations

Page 2

THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The Members of the Purcell School Governing Body present their Annual Report for the year ended 31 August 2022 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 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), BSA (Boarding Schools’ Association) and the Charity Commission. Governors are advised of and encouraged to attend appropriate external training workshops and presentations.

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

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. During the visit the Governor checks the school’s SCR (Single Central Record). Dr Rebecca Mooney serves as Safeguarding Governor in a joint capacity with Sophia Coles 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, Director of Music, Director of Teaching and Learning, Safeguarding Lead, Director of Boarding, and Director of Operations. The Principal and Bursar attend all Governing Body (excluding the Nominations Committee) meetings 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.

Group structure

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

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

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. The numbers in brackets represent the number of scholarships awarded:

2022 LEAVERS

MUSIC COLLEGES & CONSERVATOIRES

Royal College of Music, London: 10 (4)

Royal Academy of Music, London: 8 (5)

Guildhall School of Music and Drama, London: 6 (4)

Trinity College, London: 2 (1)

Royal Birmingham Conservatoire: 5 (1)

Royal Northern College of Music: 2 (2)

The Royal Welsh College of Music and Drama: 2

Royal Conservatoire of Scotland, Glasgow: 4 (2)

Berlin Conservatoire: 1

New England Conservatory, Boston: 1

UNIVERSITIES & COLLEGES

University of Oxford: 2

Birmingham City University: 1 Falmouth University: 1 Warwick University: 1

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

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

Trustees’ Indemnities

Trustees benefit from indemnity insurance to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the School. The cost of this insurance in the year has been included within total insurance costs.

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Primary objectives

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

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 141 boarders (some of whom are weekly boarders) and 44 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.

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

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

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 for the majority of families supported by the MDS are currently 12% 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.

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

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:

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Fundraising performance

The bursary fund received £411,408 during the year (KPI set at £500,000).

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 £650,000 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.

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.

This is the first year after the national pandemic where students sat the actual exams. The two previous years marks were graded by teachers. This years results have all improved in comparison to results before the pandemic.

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Year 13 A LEVEL & pre-U 2022

Pre-U D1
(a*+)		 D1
(a*+)		 D2
(a*)		 D2
(a*)		 D3
(a)		 D3
(a)		 M1
(a/b)		 M1
(a/b)
M2
(b)		 M3
(c)		 M3
(c)		 P1
(c/d)		 P1
(c/d)		 P2
(d)		 P3/U
(e/U)
Music(49 entries) 5 9 12 11 8 1 2 0 1
A level subjects entries A* A B C D E/U
Art 7 0 0 5 0 1 1
Biology 3 0 1 0 0 0 2
Chemistry 2 0 0 2 0 0 0
Drama 4 0 0 1 1 0 2
English Literature 10 1 5 0 0 4 0
French 5 1 3 1 0 0 0
German 3 2 1 0 0 0 0
History 10 0 2 3 1 3 1
Mathematics 6 1 2 1 2 0 0
Mathematics- Further 1 1 0 0 0 0 0
Music Technology 16 3 4 4 3 2 0
Philosophy 1 0 1 0 0 0 0
Photography 4 0 1 2 0 1 0
Physics 1 0 1 0 0 0 0
Religious Studies 8 1 3 1 2 1 0
A Level statistics
including
pre-U equivalents in 2018		 2022 2021 2020 2019 2018 2017 2016
Percentage A* + A 50% 66% 63% 49% 50% 29% 26%
Percentage A* - B 76% 88% 79% 63% 71% 60% 59%
Percentage A* - E 98% 100% 100% 95% 100% 99% 98%

Year 12 AS LEVEL 2022

AS level subjects entries A* A B C D U
Maths 1 0 0 0 1 0 0
Physics 5 0 1 0 1 2 1

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

YEAR 11 students’ GCSE 2022 & IGCSE Music RESULTS 2021

* Taken in Year 10(2021)
†IGCSE		 Taken in Year 10(2021)
†IGCSE
numbergrades entries 9(*) 8(*/a) 7(a) 6(b) 5(b/c) 4(c) 3(d) _2(e)1 _
letter grades entries A* A B C D E
Music*† 29 25 0 4 0 0 0 0 0
English (1st Language)† 23 6 0 5 9 0 2 1 0
English Literature† 12 2 0 5 4 0 0 1 0
English (2ndLang.)*† 7 0 0 1 3 0 3 0 0
Art 14 0 6 3 2 1 2 0 0
Biology-Single 3 2 1 0 0 0 0 0 0
Chemistry-Single 3 3 0 0 0 0 0 0 0
Chinese† 1 0 0 1 0 0 0 0 0
Drama 11 0 1 1 3 2 0 3 1
French 8 4 2 1 1 0 0 0 0
German 8 4 1 1 0 2 0 0 0
History † 18 1 0 4 4 5 2 2 0
Mathematics 29 5 4 2 5 8 5 0 0
Further Mathematics 2 0 1 1 0 0 0 0 0
Physics-Single 3 2 1 0 0 0 0 0 0
Physics† 3 0 0 0 0 0 2 0 1
Science (Combined) 23 4 1 6 5 4 3 0 0
Year 10
Classical Civilisation 1 1 0 0 0 0 0 0 0
GCSE / IGCSE stats. 2022 2021 2020 2019 2018 2017 2016
Percentage A* - A/ 9 - 7 56% 77% 85% 52% 62% 47% 56%
Percentage A* - B/ 9 - 5 86% 97% 96% 82% 87% 73% 80%
Percentage A* - C/ 9 - 4 95% 100% 99% 93% 98% 88% 92%

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Musical Achievements

2021-22

This year saw the easing of most Covid restrictions, enabling us to return at last to rehearsals and performances with larger groups and orchestras, and the year was so full that this report can only mention some of the highlights.

We followed local health authority advice at all times, and on the whole we enjoyed the beginnings of a more normal school year, after what felt like a very long disruption. Large-scale choral singing was still discouraged, and all events remained at risk of last-minute cancellations due to sudden outbreaks, but we restarted the Chamber Choir with great success, performing sophisticated repertoire including a full advent Carol Service, and concerts of Bernstein’s Chichester Psalms and Britten’s Rejoice in the Lamb and new work. Students also enjoyed the choral conducting course, and all elective modules in the 6th form academic music programme were fully subscribed.

Other ensembles were revived or newly created, with an emphasis on exploring a wide range of repertoire. Middle School Orchestra met weekly, and performed Beethoven’s 1st Symphony without a conductor, and a concert of Studio Ghibli scores arranged and conducted by one of our resident graduate musicians. Symphonic Wind Orchestra was new, and performed Bernstein’s Symphonic Dances from West Side Story at Cadogan Hall in the Summer. Our Chamber music programme took students to give performances in London, around Hertfordshire, and to Leicester and Leeds, and at a special War Graves Commission event at Brookwood cemetery. The Impulse outreach tour to Norfolk took place again for the first time in three years.

We welcomed some of the alumni who had left in the summer 2021 to perform at Wigmore Hall in October, alongside current students, a small compensation for how few opportunities their cohort had had in covid. The long-awaited concert had a real celebratory feel.

Local primary schools had been deprived of our visits and concerts throughout the pandemic, and so it was wonderful to start the academic year with two big schools concerts: at St Etheldreda’s Church Hatfield, we gave two performances with artist James Mayhew of The Planets to capacity audiences of local year 5 and 6 classes; and at the Watford Colosseum we invited 350 children from 12 Hertfordshire schools to “Be Our Guest” , a concert of Disney tunes arranged for symphony orchestra, big band and solo singers. Our students loved returning to this range of contrasting music. Both concerts were filmed, and resources provided online for all Herts schools. The symphony orchestra returned to St John’s Smith Square in December to give an impressive performance of Brahms’ First Symphony , and two Cadogan Hall concerts followed in March and June, with outstanding Concerto performances by students (Copland Clarinet and Prokofiev Violin no 1), and a range of orchestral repertoire (Lili Boulanger, new work by students, Sibelius, Dvorak).

We were able to welcome visitors on a small scale again, and even take students out to see concerts on occasion, though international travel and exchange remained very limited. Masterclasses were given by artists of international stature nevertheless, and we started to reconnect in person with leading pedagogues from leading conservatoires. To name just a few masterclasses, Andrew Marriner (clarinet), Judith Weir and Emily Howard (composers), Stefan Popov (cello), Gary Ryan (guitar), Barabara Szczepanska and Noriko Ogawa (piano) and Kuljit Bhamra (tabla) all made an impression. We also continued to offer specialist performance psychology classes with Lee Holland and Jessica Mogridge.

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

Our maths department inspired an outstanding cross-departmental project, Maths is Music, Music is Maths in which Marcus du Sautoy led a workshop day on advanced mathematical concepts, inspiring 14 new works that were performed in a remarkable final concert. Our Senior Concerto Competition attracted 37 applicants, all preparing full concertos. The end of the summer term saw numerous concerts as ever, with a notable collaboration with the London Community Gospel Choir at the Watford Palace Theatre, a new Steve Reich ensemble performing Runner, the launch of our new Pop and Commercial Music course for Sept 2022, and a concert with Leeds Piano competition winner and alumnus Alim Beisembayev at the Deal Festival. These and many other concerts can be found online.

FINANCIAL REVIEW

Results for the year

The School’s total incoming resources for the year amounted to £6,655,875 (2021 - £6,340,442). The net deficit for the year was £580,722 (2021 - deficit of £157,231) 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 16.

Reserves level and policy and financial viability

The School’s total reserves were £12,760,935 (2021 - £13,341,657) at the year end, of which £338,860 (2021 - £509,195) are restricted funds, £11,527,354 (2021 - £11,946,995) are designated funds and £844.721 (2021 – £885,467) are general funds. Whilst the funds of £388,860 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 £12 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 £844,721 (2021 – £885,467).

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 was deemed appropriate predominantly due to the following risk considerations:

Three months reserve would amount to approximately £1.6m of operational expenditure. The current level of unrestricted reserves is £605,607 plus £638,860 restricted to educational activities. This brings it to a total of £1.2m which is below the policy level. The school’s finances are managed so that under normal circumstances £1.6m of reserves held through the annual cycle. However, as the school currently operates in extraordinary economic times, it is directly reflected in diminishing reserves.

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THE PURCELL SCHOOL (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The target level of reserves may also be varied if the risk profile changes materially, and with the current financial outlook, it is likely to be revised up next year. Subsequently, there has been a number of actions as per the strategic plan on page 15 and risk management documents to bring the reserves to a more sustainable level.

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, which has been intensified by the current cost of living and the highest inflation in decades. It is recognised that systems can only provide reasonable but not absolute assurance that major risks are being 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 2022

FUTURE STRATEGIC 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 Trustee Date: 15-03-2023

Bernard Trafford Chair of Trustees

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THE PURCELL SCHOOL

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2022

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: 15-03-2023

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(A Company Limited by Guarantee)

THE PURCELL SCHOOL

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 2022 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 17

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 18

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 19

(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: 24 April 2023

Page 20

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Note
Income from:
Donations and grants
4
Charitable activities
5
Other trading activities
8
Investments
9
Total income
Expenditure on:
Raising funds
10
Charitable activities
11,12
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
256,623
5,950,665
160,764
-
6,368,052
56,862
6,771,577
6,828,439
(460,387)
12,832,462
(460,387)
12,372,075		 Restricted
funds
2022
£
287,221
-
-
602
287,823
-
408,158
408,158
(120,335)
509,195
(120,335)
388,860		 Total
funds
2022
£
543,844
5,950,665
160,764
602
6,655,875
56,862
7,179,735
7,236,597
(580,722)
13,341,657
(580,722)
12,760,935		 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

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 24 to 47 form part of these financial statements.

Page 21

THE PURCELL SCHOOL

(A Company Limited by Guarantee) REGISTERED NUMBER: 00759327

BALANCE SHEET AS AT 31 AUGUST 2022

Note
Fixed assets
Tangible assets
16
Investments
17
Current assets
Debtors
18
Cash at bank and in hand
23
Creditors: amounts falling due within one
year
19
Net current assets
Total net assets
School funds
Restricted funds
20
Unrestricted funds
20
Total funds		 2022
£
325,760
2,207,807
2,533,567
(1,300,086)		 2022
£
11,527,354
100
11,527,454
1,233,481
12,760,935
388,860
12,372,075
12,760,935		 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

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:

Bernard Trafford Chair of Full Governing Body Date: 15-03-2023

William McDonnell Trustee

The notes on pages 24 to 47 form part of these financial statements.

Page 22

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Note
Cash flows from operating activities
Net cash used in operating activities
22
Cash flows from investing activities
Investment income
9
Purchase of tangible fixed assets
16
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
23
The notes on pages24 to 47form part of these financial statements.		 2022
£
198,178
602
(84,224)
(83,622)
114,556
2,093,251
2,207,807		 2021
£
303,395
288
(318,993)
(318,705)
(15,310)
2,108,561
2,093,251

Page 23

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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 current economic situation and the highest inflation in decades 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 plans/scenarios, 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 24

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the School has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the School, can be reliably measured.

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 Charity considers support costs to involve administration and the costs associated with the performance of these tasks.

Page 25

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.5 Expenditure (continued)

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.

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.

Page 26

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

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.

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 18. 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 19. 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.

Page 27

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

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.

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 28

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

4. Income from donations, legacies and grants

Unrestricted
funds
2022
£
Bursary income
-
Friends income
-
Merchandise sales
-
Other grants
6,623
Instrument and Composition income
-
Legacy income
250,000
Total 2022
256,623
Unrestricted
funds
2021
£
Bursary income
-
Friends income
-
Merchandise sales
-
Other grants
35,117
Total 2021
35,117		 Restricted
funds
2022
£
280,878
3,333
450
-
2,560
-
287,221
Restricted
funds
2021
£
283,832
4,468
113
-
288,413		 Total
funds
2022
£
280,878
3,333
450
6,623
2,560
250,000
543,844
Total
funds
2021
£
283,832
4,468
113
35,117
323,530

Page 29

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

5. Income from charitable activities - by fund

Unrestricted
funds
2022
£
Educational operations
5,950,665
Unrestricted
funds
2021
£
Educational operations
5,881,220
6.
Analysis of income from charitable activities by type of income		 Total
funds
2022
£
5,950,665
Total
funds
2021
£
5,881,220
School fees
7
Exceptional government funding		 2022
£
5,950,665
-
5,950,665		 2021
£
5,833,183
48,037
5,881,220

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

In the prior year, the School also furloughed some of its staff under the government's Coronavirus Job Retention Scheme. The funding received of £48,037 related to staff costs in respect of 37 staff.

Page 30

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7.
School fees
Gross school fees
Less: Total bursaries
Add: Bursaries paid from restricted funds		 2022
£
5,967,705
(411,408)
403,368
5,959,665		 2021
£
6,232,946
(699,763)
300,000
5,833,183

Net fees received included £1,615,560 (2021 - £1,433,844) by parents and £3,940,737 (2021 - £4,099,339) paid by the Department for Education Music and Dance Scheme.

Page 31

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

8. Income from other trading activities

Unrestricted
funds
2022
£
Application and audition fees
6,885
Insurance claims
8,080
House fund income
12,290
Concert income
8,150
Lettings income
123,204
Coffee shop income
1,236
Sundry income
847
Gain on disposal of fixed assets
72
Total 2022
160,764
Unrestricted
funds
2021
£
Application and audition fees
6,334
Insurance claims
8,248
House fund income
18,065
Concert income
3,277
Lettings income
88,225
Sundry income
5,746
Gain on disposal of fixed assets
5,509
Total 2021
135,404		 Total
funds
2022
£
6,885
8,080
12,290
8,150
123,204
1,236
847
72
160,764
Total
funds
2021
£
6,334
8,248
18,065
3,277
88,225
5,746
5,509
135,404

Page 32

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

9. Income from investments

Bank interest receivable
Bank interest receivable
10.
Expenditure on raising funds		 Restricted
funds
2022
£
602
Restricted
funds
2021
£
288		 Total
funds
2022
£
602
Total
funds
2021
£
288
Unrestricted
funds
2022
£
Direct costs - Staff costs
44,367
Direct costs - Fundraising and development costs
4,594
Support costs - Financing costs
7,901
Total 2022
56,862
Unrestricted
funds
2021
£
Direct costs - Staff costs
78,682
Direct costs - Fundraising and development costs
3,300
Support costs - Financing costs
7,901
Total 2021
89,883		 Total
funds
2022
£
44,367
4,594
7,901
56,862
Total
funds
2021
£
78,682
3,300
7,901
89,883

Page 33

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

11. Analysis of expenditure on charitable activities - by fund

Unrestricted
funds
2022
£
Educational operations
6,771,577
Unrestricted
funds
2021
£
Educational operations
6,095,350
Analysis of expenditure on charitable activities - by type
Activities
undertaken
directly
2022
£
Educational operations
5,705,210
Activities
undertaken
directly
2021
£
Educational operations
5,237,283		 Restricted
funds
2022
£
408,158
Restricted
funds
2021
£
312,440
Support
costs
2022
£
1,474,525
Support
costs
2021
£
1,170,507		 Total
funds
2022
£
7,179,735
Total
funds
2021
£
6,407,790
Total
funds
2022
£
7,179,735
Total
funds
2021
£
6,407,790

12. Analysis of expenditure on charitable activities - by type

Page 34

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

12. 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
2022
£
3,965,189
570,753
222,614
543,286
403,368
5,705,210		 Total
funds
2021
£
3,864,735
395,753
188,791
479,004
309,000
5,237,283

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
Other support costs
Publicity costs
Bad debts		 Total
funds
2022
£
435,714
503,865
27,224
38,100
102,468
61,877
4,696
239
5,963
150,759
47,313
73,263
7,832
15,212
1,474,525		 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

Page 35

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

13. 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		 2022
£
18,600
8,580
4,140
119,439
150,759		 2021
£
11,350
5,995
6,335
64,139
87,819

14. Staff costs

Wages and salaries
Social security costs
Pension costs		 2022
£
3,590,041
313,383
541,846
4,445,270		 2021
£
3,459,286
292,634
569,039
4,320,959

Wages and salaries include termination benefits and redundancy payments, including both contractual and non-contractual payments, and totalled £10,886 (2021 - £49,201) . Included within non-contractual payments for 2022 are compensation payments of £3,287 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 £96,934 (2021 - £38,125) .

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

Teaching
Boarding, Pastoral and Housekeeping
Administration, Property and Fundraising		 2022
No.
117
32
17
166		 2021
No.
108
31
20
159

Page 36

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14. Staff costs (continued)

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

2022 2021
No. No.
In the band £60,001 - £70,000 1 2
In the band £70,001 - £80,000 1 2
In the band £80,001 - £90,000 2 1
In the band £100,001 - £110,000 - 1
In the band £110,001 - £120,000 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 £578,631 (2021 - £582,989) .

15. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 August 2022, no Trustee expenses have been incurred (2021 - £NIL) .

Page 37

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. Tangible fixed assets

Cost or valuation
At 1 September
2021
Additions
At 31 August 2022
Depreciation
At 1 September
2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Freehold
land and
buildings
£
15,472,717
-
15,472,717
4,281,657
293,824
4,575,481
10,897,236
11,191,060		 Motor
vehicles
£
28,200
-
28,200
16,304
2,974
19,278
8,922
11,896		 Furniture,
fixtures and
fittings
£
1,658,743
-
1,658,743
1,326,510
54,335
1,380,845
277,898
332,233		 Computer
equipment
£
717,922
58,064
775,986
618,498
121,494
739,992
35,994
99,424		 Musical
instruments
£
1,043,089
26,160
1,069,249
730,707
31,238
761,945
307,304
312,382		 Total
£
18,920,671
84,224
19,004,895
6,973,676
503,865
7,477,541
11,527,354
11,946,995

Page 38

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

17. Fixed asset investments

Cost or valuation
At 1 September 2021
At 31 August 2022		 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.

18. Debtors

Due within one year
Fees and extras owed by parents
Other debtors
Prepayments
Music and Dance Scheme grant		 2022
£
94,196
37,139
19,620
174,805
325,760		 2021
£
63,115
64,431
23,861
260,818
412,225

Page 39

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

19. Creditors: Amounts falling due within one year

Other loans
Parental deposits
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
395,105
134,024
114,470
176,955
109,995
369,537
1,300,086		 2021
£
395,105
120,048
58,232
160,335
70,835
306,359
1,110,914

The other loans amount included in the creditors note above relates to a £395,105 that was borrowed in the 1980s from the Samuel Gardner Memorial Trust to move the School from its previous campus in Harrow to its current location. It is considered a concessionary loan repayable on demand. No amount has been repaid at the year ended 31 August 2022.

Deferred income at 1 September 2021
Resources deferred during the year
Amounts released from previous periods		 2022
£
167,218
186,171
(167,218)
186,171		 2021
£
-
167,218
-
167,218

Deferred income relates entirely to Student fees received in advance of the new academic year.

Page 40

(A Company Limited by Guarantee)

THE PURCELL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

20. 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
2021
£
11,946,995
885,467
12,832,462
37,251
443,579
11,501
7,130
9,734
509,195
13,341,657		 Income
£
-
6,368,052
6,368,052
-
285,763
60
2,500
(500)
287,823
6,655,875		 Expenditure
£
(503,865)
(6,324,574)
(6,828,439)
-
(403,368)
(3,165)
-
(1,625)
(408,158)
(7,236,597)		 Transfers
in/out
£
84,224
(84,224)
-
-
-
-
-
-
-
-		 Balance at
31 August
2022
£
11,527,354
844,721
12,372,075
37,251
325,974
8,396
9,630
7,609
388,860
12,760,935

Page 41

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

20.
Statement of funds (continued)
Statement of funds - prior year
Balance at
1 September
2020
£
Unrestricted funds
Designated funds
Fixed asset fund
12,016,371
General funds
General Fund
949,583
Total Unrestricted funds
12,965,954
Restricted funds
Capital Development Fund
37,251
Bursary Fund
463,878
Instrument Fund
11,501
Composition and Outreach
Fund
7,130
Chamber Music Academy
13,174
532,934
Total of funds
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 42

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

20. 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 £394,368. In the year, a total of £411,408 of bursaries were made to students of which £403,368 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 £84,224 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 43

THE PURCELL SCHOOL

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21. Analysis of net assets between funds Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
11,527,354
Fixed asset investments
100
Current assets
2,144,707
Creditors due within one year
(1,300,086)
Total
12,372,075		 Restricted
funds
2022
£
-
-
388,860
-
388,860		 Total
funds
2022
£
11,527,354
100
2,533,567
(1,300,086)
12,760,935

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
11,946,995
100
1,996,281
(1,110,914)
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

Page 44

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

22. 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
16
Investment income
9
Decrease/(increase) in debtors
18
Increase in creditors
19
Net cash provided by operating activities
23.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
24.
Analysis of changes in net debt
At 1
September
2021
£
Cash at bank and in hand
2,093,251
Debt due within 1 year
(453,337)
1,639,914		 2022
2021
£
£
(580,722)
(157,231)
503,865
388,369
(602)
(288)
86,465
(66,907)
189,172
139,452
198,178
303,395
2022
2021
£
£
2,207,807
2,093,251
2,207,807
2,093,251
Cash flows
At 31
August 2022
£
£
114,556
2,207,807
-
(453,337)
114,556
1,754,470

Page 45

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

25. 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 £441,560 (2021 - £481,731) . At the year end, there were contributions of £51,762 (2021 - £68,736) 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 46

THE PURCELL SCHOOL (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

25. 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 £100,515 (2021 - £187,799) . At the year end, there were contributions of £26,871 (2021 - £9,126) payable in respect of the schemes.

26. Operating lease commitments

At 31 August 2022 the School had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2022
£
10,664
39,990
50,654		 2021
£
-
-
-

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

2022 2021
£ £
Operating lease rentals 5,332 10,445

27. Related party transactions

Jonathan Eley, a former Trustee of the School (resigned on 31 August 2021) is a partner at Farrer & Co LLP, a firm that has been used for legal advice for their expertise with Independent School and in particular with the IICSA. Total costs of £4,545 for legal services provided by Farrer & Co. LLP were incurred in the year ended 31 August 2021. Jonathan Eley is not involved in providing any of this advice to the school. There were no amounts outstanding at the year end (2021 - £NIL).

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 47