| Reports | |
|---|---|
| Referenceandadministrativeinformation | 1 |
| Trustees'report | 3 |
| Independentauditor'sreport | 23 |
| Financialstatements | |
|---|---|
| Consolidatedstatementoffinancial | |
| activities | 28 |
| Balancesheets | 29 |
| Consolidatedstatementofcashflows | 30 |
| Principalaccountingpolicies | 31 |
| Notestothefinancialstatements | 37 |
| Auditor | BuzzacottLLP |
|---|---|
| 130WoodStreet | |
| London | |
| EC2V6DL | |
| Bankers | NationalWestminsterBankplc |
| P.O.Box3038 | |
| 57VictoriaStreet | |
| London | |
| SW1H0HN | |
| Solicitors | WinckworthSherwood |
| MinervaHouse | |
| 5MontagueClose | |
| London | |
| SE19BB |
| DirectorofEducation | MrsRozCordner |
|---|---|
| AssistantDirectorofEducation | MrMarcusCooper |
| 9EducationalAdvisers(5.4FTE) | MrMarcusCooper |
| MrShaunBurns | |
| Miss FionaForeman(0.6FTE) | |
| DrRachaelNorman | |
| RianaGouws(0.6FTE) | |
| JosephineCopeland(0.4FTE) | |
| SaraSanbrook-Davies(0.4FTE) | |
| VictoriaMatthews(0.2FTE) | |
| HilaryGrainger(0.2FTE) | |
| ChaplaincyDevelopmentOfficer | Miss FionaForemanInterim(0.4FTE) |
| BuildingsandCapitalProgrammes | MrPaulForrest |
| Manager | MrsSallyChapman(0.6FTE) |
| HumanResourcesAdviser | MrsJulieRichardson(0.8FTE) |
| Governance,Admissionsand | MrLeoMorrell |
| DevelopmentAdviser | |
| FinancialController | MrDavidCoyle |
| OfficeManager | MissElisabethSparkes(fromNovember2020— |
| August2021) | |
| MrsClareRusbridge(fromAugust2021-Dec2021) | |
| 2Administrators | MissElisabethSparkes |
| MrsAnitaMarijetic | |
| Caretaker | MrGyorgySzabo(0.2FTE) |
| LowRiskPortfolio | +5.94%(2020:+3.86%) |
|---|---|
| Comparativebenchmark | +4.06%(2020:+1.37%) |
| LowtoMediumRiskPortfolio | +7.89%(2020:+9.42%) |
| Comparativebenchmark | +8.08%(2020:-0.16%) |
| MediumtoHighRiskPortfolio | +15.59%(2020:+14.65%) |
| Comparativebenchmark | +13.62%(2020:+0.16%) |
Trustees’ Report Year to 31 December 2021
To fund the discharge of its day to day outgoings in the delivery of The Diocesan Measure (as distinct from its work connected with building works at the schools), the charity depends on the grant received from the Diocese of Southwark, which amounted to a total grant of £333,460 (2020 – £333,460) for the year, comprising £333,460 (2020 – £333,460) core grant.
The charity’s operational activities are represented by its unrestricted general fund. The operational expenditure of the charity exceeded its operational income, resulting in a deficit of £231,501 (2020 – Surplus of £107,488) before taking into account net gains on listed investments of £278,434 (2020 – net gains of £217,871) and transfers. Transfers in and out of the unrestricted general fund included a transfer in of £60,000 from the external periodic maintenance restricted fund representing the costs of administering the fund (2020 – £60,000), a transfer to the property fund representing additions to investment properties and tangible fixed assets of £nil (2020 – £28,823) and net other transfers out of the fund totalling £299,593 (2020 – net transfers out of the fund of £8,554). This gives, read together with realised and unrealised gains on the value of investments of £278,434 (2020 – gains of £271,871), a net decrease in the unrestricted (operational) funds of the charity for the year of £192,660 (2020 – net increase of £347,982).
Overall, there was a net decrease in total funds of £ 9,712,133 (2020 – net increase of £11,054,741), after also accounting for an decrease in restricted funds of £ 2,669,095 (2020 – increase of £1,941,812), an decrease in the property fund of £ 6,857,378 (2020 – increase of £8,800,379) and a increase of £7,000 in the value of endowment funds (2020 – increase of £35,432).
Southwark Diocesan Education Services Limited
The charity operates a wholly owned subsidiary company, Southwark Diocesan Education Services Limited. This company carries out a number of the charity’s activities including the provision of services for schools in the Diocese of Southwark and the provision of administrative services for the charity. Its turnover for the year was £608,660 (2020 – £580,552) and the company made an operating profit of £nil (2020 – £nil) after making a donation of £399,199 by Gift Aid to the parent charity (2020 – £367,953) in accordance with its articles of association.
Reserves policy
The General Synod of the Church of England, at its meeting in November 1999, affirmed two principal roles for the Diocesan Boards of Education in their support of Church of England schools in their Diocese:
-
to provide an advisory service to schools; and
-
to maintain and improve school buildings.
The reserves policy of the Trustees has been determined in the light of these objectives. The reserves policy is monitored and reviewed annually.
Its main features are:
Southwark Diocesan Board for Education Incorporated 19
Independent auditor’s report 31 December 2021
Independent auditor’s report to the members of Southwark Diocesan Board of Education Incorporated
Opinion
We have audited the financial statements of Southwark Diocesan Board of Education Incorporated (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise the group statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows, and the notes to the financial statements, including the principal accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
-
♦ give a true and fair view of the state of the group’s and the charitable parent company’s affairs as at 31 December 2021 and the group’s income and expenditure for the year then ended;
-
♦ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
♦ have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or the charitable parent 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.
Southwark Diocesan Board for Education Incorporated 23
Independent auditor’s report 31 December 2021
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
♦ the information given in the Trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
♦ the Trustees’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
♦ adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us;
-
♦ the financial statements are not in agreement with the accounting records or returns;
-
♦ certain disclosures of trustees’ remuneration specified by law are not made; or
-
♦ we have not received all the information and explanations we require for our audit.
-
♦ the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
Southwark Diocesan Board for Education Incorporated 24
Independent auditor’s report 31 December 2021
Responsibilities of Trustees
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent 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 group or the charitable parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
-
♦ the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
♦ we obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the charitable parent company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011) and those that relate to data protection (General Data Protection Regulation); and
-
♦ identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
Southwark Diocesan Board for Education Incorporated 25
Independent auditor’s report 31 December 2021
Auditor’s responsibilities for the audit of the financial statements (continued)
We assessed the susceptibility of the group’s and the charitable parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
♦ making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and
-
♦ considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-
♦ performed analytical procedures to identify any unusual or unexpected relationships;
-
♦ tested journal entries to identify unusual transactions;
-
♦ assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
-
♦ tested authorization controls on expenditure items, including staff expense claims, to check that all expenditure was approved in line with the group’s and the parent charitable company’s financial procedures;
-
♦ tested expenditure passing through the off-balance sheet conduit fund to check that it had been incurred in line with the funding agreement and had been appropriately authorized; and
-
♦ considered the controls and processes in place relating to the conduit fund, in particular those relating to the receipt and use of the new Voluntary-Aided Schools Capital Allocation funding stream.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
♦ agreeing financial statement disclosures to underlying supporting documentation;
-
♦ reading the minutes of meetings of those charged with governance; and
-
♦ enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Southwark Diocesan Board for Education Incorporated 26
Independent auditor’s report 31 December 2021
Auditor’s responsibilities for the audit of the financial statements (continued)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
________ Katharine Patel (Senior Statutory Auditor) 16 September 2022 For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL
Southwark Diocesan Board for Education Incorporated 27
| Unrestrictedfunds | Unrestrictedfunds | ||||||
|---|---|---|---|---|---|---|---|
| General | Designated | Restricted | Endowment | Total | Total | ||
| funds | funds | funds | funds | 2021 | 2020 | ||
| Notes | £ | £ | £ | £ | £ | £ | |
| Incomeandendowments | |||||||
| from: | |||||||
| Grantsanddonations | 1 | 351,800 | 1,600,000 | 5,304,622 | - | 7,256,422 | 15,158,835 |
| Charitableactivities | 2 | 71,395 | - | 534,076 | - | 605,471 | 620,651 |
| Othertradingactivities | 3 | 554,786 | - | - | - | 554,786 | 547,401 |
| Investments | 4 | 736,467 | 59,499 | 13,023 | 8,103 | 817,092 | 951,637 |
| Totalincome | 1,714,448 | 1,659,499 | 5,851,721 | 8,103 | 9,233,771 | 17,278,524 | |
| Expenditureon: | |||||||
| Raisingfunds | 5 | 511,353 | 511,353 | 345,940 | |||
| Charitableactivities | 6 | 1,434,596 | 191,877 | 8,760,512 | 1,000 | 10,387,985 | 6,095,714 |
| Totalexpenditure | 7 | 1,945,949 | 191,877 | 8,760,512 | 1,000 | 10,899,338 | 6,441,654 |
| Netincome(expenditure) | |||||||
| beforeinvestmentgains | |||||||
| andlosses | (231,501) | 1,467,622 | (2,908,791) | 7,103 | (1,665,567) | 10,836,870 | |
| Unrealisedlosseson | |||||||
| investmentproperties | 11b | — | (8,325,000) | - | - | (8,325,000) | — |
| Netgainsonlisted | |||||||
| investments | 11a | 278,434 | - | - | - | 278,434 | 217,871 |
| Netincome(expenditure) | |||||||
| beforetransfers | 46,933 | (6,857,378) | (2,908,791) | 7,103 | (9,712,133) | 11,054,741 | |
| Transfersbetweenfunds | 15 | (239,593) | 239,696 | (103) | |||
| Netmovementinfunds | 8 | (192,660) | (6,857,378) | (2,669,095) | 7,000 | (9,712,133) | 11,054,741 |
| Reconciliationoffunds: | |||||||
| Fundsbroughtforwardat1 | |||||||
| January2021 | 3,605,403 | 23,694,942 | 3,984,037 | 233,416 | 31,517,798 | 20,463,057 | |
| Fundscarriedforwardat31 | |||||||
| December2021 | 15 | 3,412,743 | 16,837,564 | 1,314,942 | 240,416 | 21,805,665 | 31,517,798 |
| Group | Charity | Group | Charity | ||
|---|---|---|---|---|---|
| 2021 | 2021 | 2020 | 2020 | ||
| Notes | £ |
£ |
|||
| Fixedassets | |||||
| Tangibleassets | 10 | 1,428,383 | 1,428,077 | 1,620,885 | 1,619,955 |
| Investments | 11 | 22,202,852 | 22,202,852 | 28,709,537 | 28,709,538 |
| 23,631,235 | 23,630,929 | 30,330,422 | 30,329,493 | ||
| Currentassets | |||||
| Debtors | 13 | 147,619 | 69,108 | 194,257 | 143,300 |
| Cashatbankandinhand | 1,381,555 | 1,333,344 | 6,311,226 | 6,264,119 | |
| 1,529,174 | 1,402,452 | 6,505,483 | 6,407,419 | ||
| Creditors:amountsfallingduewithin | |||||
| oneyear | 14 | (2,402,744) | (2,287,469) | (4,358,107) | (4,270,867) |
| Netcurrentassets | (873,570) | (885,017) | 2,147,376 | 2,136,552 | |
| Debtors:amountsreceivableafter | |||||
| morethanoneyear | 13 | 150,000 | 150,000 | 150,000 | 150,000 |
| Creditors:amountsfallingdueafter | |||||
| morethanoneyear | 14 | (1,102,000) | (1,102,000) | (1,110,000) | (1,110,000) |
| Netassets | 21,805,665 | 21,793,912 | 31,517,798 | 31,506,045 | |
| Thefundsofthecharity | 15 | ||||
| Unrestrictedfunds | |||||
| .Generalfunds | 3,412,743 | 3,400,991 | 3,605,403 | 3,593,650 | |
| .Designatedfunds | 16,837,564 | 16,837,564 | 23,694,942 | 23,694,942 | |
| Restrictedfunds | 1,314,942 | 1,314,942 | 3,984,037 | 3,984,037 | |
| Endowmentfunds | 240,416 | 240,416 | 233,416 | 233,416 | |
| 21,805,665 | 21,793,913 | 31,517,798 | 31,506,045 |
Consolidated statement of cash flows Year to 31 December 2021
| Notes | 2021 £ |
2020 £ |
|---|---|---|
| Cash flows from operating activities: Net cash (used) provided in operating activities A Cash flows from investing activities: Dividends, interest and rents from investments Purchase of tangible fixed assets Proceeds from the disposal of listed investments Purchase of listed investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 January 2021 B Cash and cash equivalents at 31 December 2021 B |
(5,806,880) | 5,098,363 |
| 817,092 — 751,049 (686,239) |
951,637 (28,823) 840,022 (874,674) |
|
| 881,902 | 888,162 | |
| (4,924,978) 8,264,033 |
5,986,525 2,277,508 |
|
3,339,055 |
8,264,033 |
Notes to the cash flow statement for the year to 31 December 2021:
A Reconciliation of net movement in funds to net cash flows from operating activities
| 2021 £ |
2020 £ 11,054,741 192,501 (8,825,000) (217,871) — (951,637) (8,000) 3,932,056 (78,427) 5,098,363 |
|
|---|---|---|
| Net movement in funds (as per the statement of financial activities) Adjustments for: Depreciation charge Donated assets Gains on listed investments Losses on investment properties Dividends, interest and rents from investments Amortisation of lease premium (Decrease) increase in creditors Decrease (increase) in debtors Net cash(used) provided in operatingactivities |
(9,712,133) 192,502 (1,600,000) (278,432) 8,325,000 (817,092) (8,000) (1,955,363) 46,638 |
|
| (5,806,880) |
B Analysis of changes in net debt
| Analysis of changes in net debt | |||
|---|---|---|---|
| At 1 January 2021 £ |
Cash flows £ |
At 31 December 2021 £ |
|
| Cash at bank and in hand Cash held by investment managers |
6,311,226 1,952,807 |
(4,929,671) 4,693 |
1,381,555 1,957,500 |
| 8,264,033 | (4,924,978) | 3,339,055 |
Southwark Diocesan Board for Education Incorporated 30
Notes to the financial statements Year to 31 December 2021
1 Grants and donations
| Grants and donations | |||||
|---|---|---|---|---|---|
| Unrestricted funds | Restricted funds £ |
Endowment funds £ |
2021 £ |
||
| General funds £ |
Designated funds £ |
||||
| Diocesan grant Donated assets – Croydon St Andrews (note 11b) VASCA Grants Capital funds - Croydon St Andrews Other grants 2021 Total funds |
333,460 — — — 18,340 |
— 1,600,000 — — — |
— — 5,304,622 — — |
— — — — — |
333,460 1,600,000 5,304,622 — 18,340 |
| 351,800 | 1,600,000 | 5,304,622 | — | 7,256,422 |
| Unrestricted funds | Unrestricted funds | Restricted funds £ |
Endowment funds £ |
2020 £ |
|
|---|---|---|---|---|---|
| General funds £ |
Designated funds £ |
||||
| Diocesan grant Donated assets – Croydon St Andrews (note 11b) VASCA Grants Capital funds - Croydon St Andrews Other grants 2020 Total funds |
333,460 — — — 17,340 |
— 8,825,000 — — — |
— — 5,919,905 63,130 — |
— — — — — |
333,460 8,825,000 5,919,905 63,130 17,340 |
| 350,800 | 8,825,000 | 5,983,035 | — | 15,158,835 |
The Charity assists voluntary aided schools with school building projects. It historically acted as the agent of school governors in helping to arrange funding through the DfE and Local Authorities and in paying professional fees and building costs on behalf of school governors. The VASCA (Voluntary-Aided Schools Condition Allocation) system was introduced in April 2020 and superseded the LCVAP (Locally Coordinated Voluntary-Aided Programme). The change in funding gives the charity ultimate control over the application of the VASCA grants to specific schools. Historically, the LCVAP was not reflected in the Statement of Financial Activities as the Charity had no control over the funds. The transactions were those of the schools and controlled and approved by the governors rather than the Charity, which acted as agent. Since the use of the VASCA grant funding is at the discretion of the Board it is now included in the SOFA along with the related expenditure. The unspent balance at the end of the year is committed to projects or returned to the DfE if not committed within two years of the grant date.
2 Charitable activities
| Charitable activities | |||||
|---|---|---|---|---|---|
| Unrestricted funds | Restricted funds £ |
Endowment funds £ |
2021 £ |
||
| General funds £ |
Designated funds £ |
||||
| Maintenance subscriptions Other educational income . Advisory and consultancy fees . Bishop’s certificate in church school governance . Other sundry income 2021 Total funds |
— 61,867 2,400 7,128 |
— — — — |
534,076 — — — |
— — — — |
534,076 61,867 2,400 7,128 |
| 71,395 | — | 534,076 | — | 605,471 |
Southwark Diocesan Board for Education Incorporated 37
| Charitableactivities(continu | ed) | ed) | |||
|---|---|---|---|---|---|
| Unrestrictedfunds | |||||
| General | Designated | Restricted | Endowment | ||
| funds | funds | funds | funds | 2020 | |
| £ | £ | £ | £ | ||
| Maintenancesubscriptions | 554,470 | 554,470 | |||
| Othereducationalincome | |||||
| .Advisoryandconsultancyfees | 53,331 | 53,331 | |||
| .Bishop'scertificatein | |||||
| churchschoolgovernance | 3,840 | 3,840 | |||
| .Othersundryincome | 9,010 | 9,010 | |||
| 2020Totalfunds | 66,181 | 554,470 | 620,651 |
| Othertradingactivities | |||||
|---|---|---|---|---|---|
| Unrestrictedfunds | |||||
| GeneralDesignated | Restricted | Endowment | |||
| funds | funds | funds | funds | 2021 | |
| £ | £ | £ | £ | ||
| ServiceAgreementSubscriptions | 482,206 | - | - | - | 482,206 |
| Managementfees | — | — | — | — | — |
| .Capitalprojects | 4,817 | - | - | - | 4,817 |
| .Maintenanceprojects | 15,286 | - | - | - | 15,286 |
| Trainingevents | — | — | — | — | — |
| Additionaladvisorsupport | 21,650 | - | - | - | 21,650 |
| Sundrytradingincome | 30,827 | - | - | - | 30,827 |
| 2021Totalfunds | 554,786 | 554,786 |
| Unrestrictedfunds | Unrestrictedfunds | ||||
|---|---|---|---|---|---|
| General | Designated | Restricted | Endowment | ||
| funds | funds | funds | funds | 2020 | |
| £ | £ | £ | £ | ||
| ServiceAgreementSubscriptions | 475,586 | - | 475,586 | ||
| Managementfees | |||||
| .Capitalprojects | — | — | |||
| .Maintenanceprojects | 18,325 | 18,325 | |||
| Trainingevents | 3,768 | 3,768 | |||
| Additionaladvisorsupport | 13,150 | 13,150 | |||
| Sundrytradingincome | 36,572 | 36,572 | |||
| 2020Totalfunds | 547,401 | 547,401 |
| Incomefrominvestments | |||||
|---|---|---|---|---|---|
| Unrestrictedfunds | |||||
| General | Designated | Restricted | Endowment | ||
| funds | funds | funds | funds | 2021 | |
| E | E | E | E | £ | |
| Listedandunlistedinvestments | 60,390 | 13,023 | 8,103 | 81,516 | |
| Rentalandlettingsincome | 676,077 | 59,499 | 735,576 | ||
| 2021Totalfunds | 736,467 | 59,499 | 13,023 | 8,103 | 817,092 |
| Unrestrictedfunds | Unrestrictedfunds | ||||
|---|---|---|---|---|---|
| General | Designated | Restricted | Endowment | ||
| funds | funds | funds | funds | 2020 | |
£ |
£ |
||||
| Listedandunlistedinvestments | 60,578 | 4,168 | 8,872 | 73,618 | |
| Rentalandlettingsincome | 668,019 | 210,000 | 878,019 | ||
| 2020Totalfunds | 728,597 | 210,000 | 4,168 | 8,872 | 951,637 |
| Unrestrictedfunds | Unrestrictedfunds | ||||
|---|---|---|---|---|---|
| General | Designated | Restricted | Endowment | ||
| funds | funds | funds | funds | 2021 | |
| E | E | £ |
£ |
£ | |
| Lettingsexpenses | 483,486 | 483,486 | |||
| Investmentmanagementfees | 24,475 | 24,475 | |||
| Bankcharges | 3,392 | 3,392 | |||
| 2021Totalfunds | 511,353 | - | - | 511,353 | |
| Unrestrictedfunds | |||||
| General | Designated | Restricted | Endowment | ||
| funds | funds | funds | funds | 2020 | |
| Lettingsexpenses | 186,058 | 70,943 | 63,130 | 320,131 | |
| Investmentmanagementfees | 22,327 | 22,327 | |||
| Bankcharges | 3,482 | 3,482 | |||
| 2020Totalfunds | 211,867 | 70,943 | 63,130 | 345,940 |
| Unrestrictedfunds | Unrestrictedfunds | ||||
|---|---|---|---|---|---|
| General | Designated | Restricted | Endowment | ||
| funds | funds | funds | funds | 2021 | |
| E | £ | £ | £ | ||
| Schoolmaintenanceexpenditure | 951,592 | 951,592 | |||
| VASCAgrantexpenditure | 7,672,182 | 7,672,182 | |||
| Adviceandguidance | 861,825 | 115,269 | 977,094 | ||
| Traininganddevelopment | 288,888 | 38,639 | 136,738 | 1,000 | 465,265 |
| Projectmanagement | 283,883 | 37,969 | 321,852 | ||
| 2021Totalfunds | 1,434,596 | 191,877 | 8,760,512 | 1,000 | 10,387,985 |
Notes to the financial statements Year to 31 December 2021
6 Expenditure on charitable activities (continued)
| Unrestricted funds | Unrestricted funds | Restricted funds £ |
Endowment funds £ |
2020 £ |
|
|---|---|---|---|---|---|
| General funds £ |
Designated funds £ |
||||
| School maintenance expenditure VASCA grant expenditure Advice and guidance Training and development Project management 2020 Total funds |
— — 895,314 307,833 170,477 |
— — 125,471 43,140 23,890 |
413,257 4,100,409 — 4,093 — |
— — — 11,830 — |
413,257 4,100,409 1,020,785 366,896 194,367 |
| 1,373,624 | 192,501 | 4,517,759 | 11,830 | 6,095,714 |
7 Analysis of total expenditure
| Analysis of total expenditure | ||||
|---|---|---|---|---|
| Direct costs £ |
Other directly allocated costs £ |
Support costs £ |
2021 £ |
|
| Raising funds (note 5) Charitable activities (note 6) . School maintenance expenditure . Advice and guidance . Training and development . Project management |
511,106 951,592 418,691 152,935 51,763 |
247 — 418,772 277,113 7,810,124 |
— — 139,631 35,216 132,147 |
511,353 951,592 977,094 465,265 7,994,034 |
| 2,086,087 | 8,506,256 | 306,994 | 10,899,338 | |
| Direct costs £ |
Other directly allocated costs £ |
Support costs £ |
2020 £ |
|
| Raising funds (note 5) Charitable activities (note 6) . School maintenance expenditure . Advice and guidance . Training and development . Project management |
345,675 413,257 514,326 193,210 50,006 |
265 — 361,634 128,433 4,169,267 |
— — 144,825 45,253 75,503 |
345,940 413,257 1,020,785 366,896 4,294,776 |
| 1,516,474 | 4,659,599 | 265,581 | 6,441,654 |
Support costs are analysed as follows:
| Support costs are analysed as follows: | ||||
|---|---|---|---|---|
| Expenditure on charitable activities | Total 2021 £ |
|||
| Advice and guidance £ |
Training and development £ |
Project management £ |
||
| Finance and HR Administration Governance 2021 Total funds |
72,011 34,409 33,211 |
3,695 20,388 11,133 |
48,045 73,162 10,940 |
123,751 127,959 55,284 |
| 139,631 | 35,216 |
132,147 |
306,994 |
Southwark Diocesan Board for Education Incorporated 40
| Expenditure | oncharitable | activities | ||
|---|---|---|---|---|
| Adviceand | Trainingand | Project |
Total | |
| guidance | development | management |
2020 | |
| £ | £ | £ |
£ | |
| FinanceandHR | 67,749 | 3,588 | 46,640 |
117,977 |
| Administration | 46,786 | 31,251 | 23,096 |
101,133 |
| Governance | 30,290 | 10,414 | 5,767 |
46,471 |
| 2020Totalfunds | 144,825 | 45,253 | 75,503 |
265,581 |
| Netmovementinfunds Netmovementinfundsisstatedaftercharging: |
||
|---|---|---|
| 2021 | 2020 | |
£ |
£ |
|
| Staffcosts(note9) | 1,132,803 | 1,085,576 |
| Depreciation(note10) | 192,501 | 192,501 |
| Auditor'sremuneration(includingVAT) | ||
| .Auditwork | 25,790 | 22,220 |
| .Otherservices | 6,860 | 3,860 |
| .Prioryear | 1,110 | 2,760 |
| Bankchargesandinterestonbankloansandoverdrafts | 3,392 | 3,482 |
| Staffcosts | ||
|---|---|---|
| 2021 | 2020 | |
£ |
£ |
|
| Wagesandsalaries | 669,437 | 739,141 |
| Socialsecuritycosts | 74,045 | 83,783 |
| Pensioncosts | 186,830 | 192,489 |
| 930,312 | 1,015,413 | |
| Consultancycosts | 202,491 | 70,163 |
| 1,132,803 | 1,085,576 |
| 2021 | 2020 | |
|---|---|---|
| number | number | |
| £60,000-£70,000 | 1 | 0 |
| £70,001-£80,000 | 2 | 1 |
| £80,001-£90,000 | 0 | 2 |
| £90,001-£100,000 | 1 | 0 |
| £100,001-£110,000 | 0 | 1 |
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Remuneration,includingemployer'sNationalInsurancecontributions | 400,507 | 445,497 |
| Pensioncontributions | 101,878 | 107,380 |
| 502,385 | 552,877 |
Notes to the financial statements Year to 31 December 2021
10 Tangible fixed assets
| Tangible fixed assets | |||||
|---|---|---|---|---|---|
| Freehold land and buildings £ |
Property improve- ments £ |
Charity total £ |
Group office and computer equipment £ |
Group total £ |
|
| Cost At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charge for the year At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 |
2,864,050 — |
95,834 — |
2,959,884 — |
22,481 — |
2,982,365 — |
| 2,864,050 | 95,834 | 2,959,884 | 22,481 | 2,982,365 | |
| 1,336,558 191,301 |
3,372 576 |
1,339,930 191,877 |
21,551 624 |
1,361,481 192,501 |
|
| 1,527,859 | 3,948 | 1,531,807 | 22,175 | 1,553,982 | |
| 1,336,191 | 91,886 | 1,428,077 | 306 | 1,428,383 | |
| 1,527,492 | 92,462 | 1,619,954 | 930 | 1,620,884 |
11 Investments
| Investments | ||
|---|---|---|
| Group and charity | 2021 £ |
2020 £ 5,774,537 22,935,000 28,709,537 |
| Listed investments (a) Investment properties (b) |
5,992,852 16,210,000 |
|
| 22,202,852 |
In addition to the above investments, the charity also holds a £1 investment in the called-up share capital of its wholly-owned trading subsidiary, Southwark Diocesan Education Services Limited (note 12). The large fall in value of the investment properties is attributable to a revaluation of the site at Croydon St Andrews. Other properties carrying values were not affected by the valuation
(a) Listed investments
| a) Listed investments | ||
|---|---|---|
| Group and charity | 2021 £ 3,821,730 686,239 (715,808) — 243,191 4,035,352 1,957,500 5,992,852 4,981,208 |
2020 £ |
| Market value at 1 January 2021 Additions Disposals (proceeds: £751,049 , realised gains: £35,241) Movement in cash Unrealised gains on revaluation Market value at 31 December 2021 Cash held by investment managers Cost of listed investments at 31 December 2021 |
3,569,207 874,674 (822,166) — 200,015 |
|
| 3,821,730 1,952,807 |
||
| 5,774,537 | ||
| 4,943,505 |
All listed investments were dealt in on a recognised stock exchange and comprised UK equities and UK managed funds.
Southwark Diocesan Board for Education Incorporated 43
| b)Investmentproperties | ||
|---|---|---|
| Charityand | Groupfreehold | |
| Groupandcharity | properties | |
| 2021 | 2020 |
|
| £ | £ | |
| Valuationat1January2021 | 22,935,000 | 14,110,000 |
| Additions | 1,600,000 | 8,825,000 |
| Revaluationintheyear | (8,325,000) | - |
| Valuationat31December2021 | 16,210,000 | 22,935,000 |
| Historiccostat31December2021 | 4,298,161 | 4,298,161 |
| Debtors Amountsfallingduewithinoneyear: |
||||
|---|---|---|---|---|
| Group | Charity | Group | Charity | |
| 2021 | 2021 | 2020 | 2020 | |
| £ | £ | £ | £ | |
| Otherdebtors | 91,286 | 51,559 | 148,068 | 132,947 |
| Prepaymentsandaccruedincome | 56,333 | 17,549 | 46,189 | 10,353 |
| 147,619 | 69,108 | 194,257 | 143,300 | |
| Amountsfallingdueinmorethanoneyear: | ||||
| Groupand | Groupand | |||
| Charity | Charity | |||
| 2021 | 2020 | |||
| £ | £ | |||
| AmountsduefromSDBEMulti-AcademyTrust | 150,000 | 150,000 |
| Amountsfallingduewithinoneyear: | ||||
|---|---|---|---|---|
| Group | Charity | Group | Charity | |
| 2021 | 2021 | 2020 | 2020 | |
| £ | £ | £ | £ | |
| Tradecreditors | 1,279,551 | 1,290,492 | 2,950,619 | 2,934,820 |
| Othercreditors | 372,554 | 363,717 | 282,783 | 281,252 |
| Conduitcreditor | — | — | 25,000 | 25,000 |
| Accrualsanddeferredincome | 742,639 | 614,459 | 1,091,705 | 965,287 |
| Amountsduetogroupundertakings | - | 10,801 | - | 56,508 |
| Deferredleasepremium(seebelow) | 8,000 | 8,000 | 8,000 | 8,000 |
| 2,402,744 | 2,287,469 | 4,358,107 | 4,270,867 |
| Amountsfallingdueinmorethanoneyear: | ||
|---|---|---|
| Groupand | Groupand | |
| Charity | Charity | |
| 2021 | 2020 | |
| £ | £ | |
| AmountspayabletoSouthwarkDiocesanBoardofFinance | 150,000 | 150,000 |
| DeferredHighshoreleasepremium | 952,000 | 960,000 |
| 1,102,000 | 1,110,000 |
| Themovementsondeferredincomeareanalysed | asfollows: | |
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Broughtforwardasat1January2021 | 1,087,417 | 1,123,334 |
| Releasedintheyear | (127,417) | (155,334) |
| Newdeferralsintheyear | 128,179 | 119,417 |
| Carriedforwardasat31December2021 | 1,088,179 | 1,087,417 |
Notes to the financial statements Year to 31 December 2021
14 Creditors (continued)
The deferred income balance represents:
-
Service income relating to periods after 31 December 2021 of £128,179 (2020 –£119,417); and
-
Deferred lease premium income relating to the Highshore lease, split between £8,000 included in creditors falling due within less than one year (2020 – £8,000) and £952,000 included in creditors falling due in more than one year (2020 – £960,000).
At the previous year end, the remaining £30,000 of deferred income related to a receipt from the London Borough of Lewisham to assist the development of a new free school. This amount (less £1,620 agreed administration costs incurred) has been returned to the Department for Work and Pensions, as the project never went ahead.
15 Analysis of group funds
Analysis of group net assets between funds
| General funds £ |
Designated property fund £ |
Restricted funds £ |
Endowment funds £ |
2021 Total funds £ |
|
|---|---|---|---|---|---|
| Tangible fixed assets Listed investments Investment properties Net current (liabilities) assets Non-current assets Non-current liabilities |
— 4,751,893 — (1,339,150) — — |
1,428,383 — 15,210,000 199,181 — — |
— 1,063,748 — 251,194 150,000 (150,000) |
— 177,211 1,000,000 15,205 — (952,000) |
1,428,383 5,992,852 16,210,000 (873,570) 150,000 (1,102,000) |
| 3,412,743 | 16,837,564 | 1,314,942 | 240,416 | 21,805,665 | |
| General funds £ |
Designated property fund £ |
Restricted funds £ |
Endowment funds £ |
2020 Total funds £ |
|
| Tangible fixed assets Listed investments Investment properties Net current (liabilities) assets Non-current assets Non-current liabilities |
— 4,531,344 — (925,941) — — |
1,620,885 — 21,935,000 139,057 — — |
— 1,041,777 — 2,942,260 150,000 (150,000) |
— 201,416 1,000,000 (8,000) — (960,000) |
1,620,885 5,774,537 22,935,000 2,147,376 150,000 (1,110,000) |
| 3,605,403 | 23,694,942 | 3,984,037 | 233,416 | 31,517,798 |
Southwark Diocesan Board for Education Incorporated 46
Notes to the financial statements Year to 31 December 2021
15 Analysis of group funds (continued)
Reconciliation of funds
| Reconciliation of funds | ||||||
|---|---|---|---|---|---|---|
| Balance at 1 January 2021 £ |
Income £ |
Expenditure £ |
Gains/ (losses) £ |
Transfers £ |
Balance at 31 December 2021 £ |
|
| Endowment funds Restricted funds External maintenance scheme VASCA capital funds Other restricted funds Designated funds Property fund Croydon St Andrews Fund General funds (including trading funds of £11,755) Total unrestricted funds |
233,416 | 8,103 | (1,000) |
— | (103) |
240,416 |
177,819 1,819,496 1,986,722 |
534,077 5,304,620 13,024 |
(951,592) (7,672,182) (136,738) |
— — — |
239,696 — — |
— (548,066) 1,863,008 |
|
| 3,984,037 23,555,885 139,057 |
5,851,721 1,600,000 59,499 |
(8,760,512) — (191,877) |
— (8,325,000) — |
239,696 — — |
1,314,942 15,830,885 6,679 |
|
| 23,694,942 3,605,403 |
1,659,499 1,714,448 |
(191,877) (1,945,949) |
(8,325,000) 278,434 |
— (239,593) |
16,837,564 3,412,743 |
|
| 27,300,345 | 3,373,947 | **(2,137,826) ** | (8,046,566) | **(239,593) ** | 20,250,307 | |
| 31,517,798 | 9,233,771 | **(10,899,338) ** | (8,046,566) | — | 21,805,665 | |
| Balance at 1 January 2020 £ |
Income £ |
Expenditure £ |
Gains/ (losses) £ |
Transfers £ |
Balance at 31 December 2020 £ |
|
| Endowment funds Restricted funds External maintenance scheme Diocesan grants Croydon St Andrews Capital Funds VASCA capital funds Other restricted funds Designated funds Property fund Croydon St Andrews Fund General funds (including trading funds of £11,755) Total unrestricted funds |
268,848 | 8,872 |
(11,830) |
— | (32,474) |
233,416 |
| 96,606 10,000 — — 1,935,619 |
554,470 — 63,130 5,919,905 4,168 |
(413,257) — (63,130) (4,100,409) (4,093) |
— — — — — |
(60,000) (10,000) — — 51,028 |
177,819 — — 1,819,496 1,986,722 |
|
| 2,042,225 14,894,563 — |
6,541,673 8,825,000 210,000 |
(4,580,889) (192,501) (70,943) |
— — — |
(18,972) 28,823 — |
3,984,037 23,555,885 139,057 |
|
| 14,894,563 3,257,421 |
9,035,000 1,692,979 |
(263,444) (1,585,491) |
— 217,871 |
28,823 22,623 |
23,694,942 3,605,403 |
|
| 18,151,984 | 10,727,979 | (1,848,935) | 217,871 | 51,446 |
27,300,345 | |
| 20,463,057 | 17,278,524 | (6,441,654) | 217,871 | — |
31,517,798 |
Southwark Diocesan Board for Education Incorporated
47
| Conduitfunds—capitalprojects | ||
|---|---|---|
| 2021 | 2020 | |
£ |
£ |
|
| Income | 8,739,901 | 132,355 |
| Expenditure | (8,739,901) | (132,355) |
Notes to the financial statements Year to 31 December 2021
17 Pension and similar obligations (continued)
Teachers’ Pension Scheme (continued)
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary – these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The charity has accounted for its contributions to the scheme as if it were a defined contribution scheme. The charity has set out the information available on the scheme below.
Valuation of the Teachers’ Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:
-
♦ employer contribution rates set at 23.68% of pensionable pay (including a 0.08% administration levy);
-
♦ total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million, giving a notional past service deficit of £22,000 million; and
-
♦ the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.
-
♦ The next valuation result is due to be implemented from 1 April 2023.
The employer’s pension costs paid to TPS in the year amounted to £80,343 (2020 – £103,971).
A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.
Southwark Diocesan Board for Education Incorporated 50
| 21Consolidated | statementoffinancialactivities—Year | statementoffinancialactivities—Year | statementoffinancialactivities—Year | statementoffinancialactivities—Year | to31December2020 | to31December2020 | |
|---|---|---|---|---|---|---|---|
| Unrestrictedfunds | |||||||
| General | Designated | Restricted | Endowment | Total | Total | ||
| funds | funds | funds | funds | 2020 | 2019 | ||
| Notes | £ | £ | £ | £ | £ | £ | |
| Incomeandendowmentsfrom: | |||||||
| Grantsanddonations | 1 | 350,800 | 8,825,000 | 5,983,035 | - | 15,158,835 | 754,901 |
| Charitableactivities | 2 | 66,181 | - | 554,470 | 620,651 | 642,746 | |
| Othertradingactivities | 3 | 547,401 | - | - | 547,401 | 591,668 | |
| Investments | 4 | 728,597 | 210,000 | 4,168 | 8,872 | 951,637 | 785,438 |
| Totalincome | 1,692,979 | 9,035,000 | 6,541,673 | 8,872 | 17,278,524 | 2,774,753 | |
| Expenditureon: | |||||||
| Raisingfunds | 5 | 211,867 | 70,943 | 63,130 | - | 345,940 | 192,353 |
| Charitableactivities | 6 | 1,373,624 | 192,501 | 4,517,759 | 11,830 | 6,095,714 | 2,252,724 |
| Totalexpenditure | 7 | 1,585,491 | 263,444 | 4,580,889 | 11,830 | 6,441,654 | 2,445,077 |
| Netincome(expenditure)before | |||||||
| investmentgains | 107,488 | 8,771,556 | 1,960,784 | (2,958) | 10,836,870 | 329,676 | |
| Unrealisedlossesoninvestment | |||||||
| properties | 11b | (71,785) | |||||
| Netgainsonlistedinvestments | |||||||
| lla | 217,871 | 217,871 | 349,854 | ||||
| Netincome(expenditure)before | |||||||
| transfers | 325,359 | 8,771,556 | 1,960,784 | (2,958) | 11,054,741 | 607,745 | |
| Transfersbetweenfunds | 15 | 22,623 | 28,823 | (18,972) | (32,474) | ||
| Netmovementinfunds | 8 | 347,982 | 8,800,379 | 1,941,812 | (35,432) | 11,054,741 | 607,745 |
| Reconciliationoffunds: | |||||||
| Fundsbroughtforwardat1 | |||||||
| January2020 | 3,257,421 | 14,894,563 | 2,042,225 | 268,848 | 20,463,057 | 19,855,312 | |
| Fundscarriedforwardat31 | |||||||
| December2020 | 15 | 3,605,403 | 23,694,942 | 3,984,037 | 233,416 | 31,517,798 | 20,463,057 |